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Prospectus |
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December 27, 2019 |
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Invesco Oppenheimer Developing Markets Fund |
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Class: A (ODMAX), C (ODVCX), R (ODVNX), Y (ODVYX), R5 (DVMFX), R6
(ODVIX) |
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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.
The Fund has limited public sales of
its shares to certain investors.
Beginning on January 1, 2021, as
permitted by regulations adopted by the Securities and Exchange Commission,
paper copies of the Fund’s shareholder reports will no longer be sent by mail,
unless you specifically request paper copies of the reports from the Fund or
from your financial intermediary, such as a broker-dealer or bank. Instead, the
reports will be made available on the Fund’s website, and you will be notified
by mail each time a report is posted and provided with a website link to access
the report.
If you already elected to receive
shareholder reports electronically, you will not be affected by this change and
you need not take any action. You may elect to receive shareholder reports and
other communications from the Fund electronically by contacting your financial
intermediary (such as a broker-dealer or bank) or, if you are a direct investor,
by enrolling at invesco.com/edelivery.
You may elect to receive all future
reports in paper free of charge. If you invest through a financial intermediary,
you can contact your financial intermediary to request that you continue to
receive paper copies of your shareholder reports. If you invest directly with
the Fund, you can call (800) 959-4246
to let the Fund know you wish to continue receiving paper copies of your
shareholder reports. Your election to receive reports in paper will apply to all
funds held with your financial intermediary or all funds held with the fund
complex if you invest directly with the Fund.
An investment in the Fund:
∎ |
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is not
guaranteed by a bank. |
Table of Contents
Invesco
Oppenheimer Developing Markets Fund
Fund Summary
Investment Objective(s)
The Fund’s investment objective is to
seek capital appreciation.
Fees and Expenses of the Fund
This table describes the fees and
expenses that you may pay if you buy and hold shares of the Fund.
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). Investors may pay commissions and/or other forms
of compensation to an intermediary, such as a broker, for transactions in
Class Y and Class R6 shares, which are not reflected in the table or
the Example below.
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Shareholder Fees (fees
paid directly from your investment) |
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Class:
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A
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C
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R
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Y
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R5
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R6
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Maximum Sales Charge (Load)
Imposed on Purchases (as a percentage of offering price)
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5.50 |
% |
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None |
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None |
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None |
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None |
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None |
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Maximum Deferred Sales Charge
(Load) (as a percentage of original purchase price or redemption
proceeds, whichever is less) |
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None |
1
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1.00 |
% |
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None |
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None |
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None |
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None |
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Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your
investment) |
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Class:
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A
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C
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R
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Y
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R5
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R6
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Management Fees |
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0.75 |
% |
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0.75 |
% |
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0.75 |
% |
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0.75 |
% |
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0.75 |
% |
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0.75 |
% |
Distribution and/or Service (12b-1) Fees 2
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0.24 |
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1.00 |
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0.50 |
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None |
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None |
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None |
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Other Expenses 3
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0.25 |
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0.25 |
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0.25 |
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0.25 |
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0.13 |
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0.08 |
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Total Annual Fund Operating
Expenses |
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1.24 |
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2.00 |
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1.50 |
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1.00 |
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0.88 |
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0.83 |
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1 |
A contingent
deferred sales charge may apply in some cases. See “Shareholder Account
Information-Contingent Deferred Sales Charges (CDSCs).”
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2 |
Distribution
and/or Service (12b-1) Fees reflect actual fees as of the Fund’s most
recent fiscal year end. |
3 |
With respect
to Class R5, “Other Expenses” are based on estimated amounts for the
current fiscal year. |
Example. This Example is
intended to help you compare the cost of investing in the Fund with the cost of
investing in other mutual funds.
The Example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. This Example does not include commissions
and/or other forms of compensation that investors may pay on transactions in
Class Y and Class R6 shares. The Example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same.
Although your actual costs may be
higher or lower, based on these assumptions, your costs would be:
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1 Year
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3 Years |
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5 Years |
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10 Years |
Class A |
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$ |
669 |
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$ |
922 |
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$ |
1,194
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$ |
1,967
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Class C |
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$ |
303 |
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$ |
627 |
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$ |
1,078
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$ |
2,327
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Class R |
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$ |
153 |
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$ |
474 |
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$ |
818 |
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$ |
1,791
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Class Y |
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$ |
102 |
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$ |
318 |
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$ |
552 |
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$ |
1,225
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Class R5 |
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$ |
90 |
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$ |
281 |
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$ |
488 |
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$ |
1,084
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Class R6 |
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$ |
85 |
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$ |
265 |
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$ |
460 |
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$ |
1,025
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You would pay the following expenses if
you did not redeem your shares:
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1 Year
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3 Years |
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5 Years |
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10 Years |
Class A |
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$ |
669 |
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$ |
922 |
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$ |
1,194
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$ |
1,967
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Class C |
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$ |
203 |
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$ |
627 |
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$ |
1,078
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$ |
2,327
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Class R |
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$ |
153 |
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$ |
474 |
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$ |
818 |
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$ |
1,791
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Class Y |
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$ |
102 |
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$ |
318 |
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$ |
552 |
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$ |
1,225
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Class R5 |
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$ |
90 |
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$ |
281 |
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$ |
488 |
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$ |
1,084
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Class R6 |
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$ |
85 |
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$ |
265 |
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$ |
460 |
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$ |
1,025
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Portfolio Turnover. The Fund
pays transaction costs, such as commissions, when it buys and sells securities
(or “turns over” its portfolio). A higher portfolio turnover rate may indicate
higher transaction costs and may result in higher taxes when Fund shares are
held in a taxable account. These costs, which are not reflected in annual fund
operating expenses or in the Example, affect the Fund’s performance. During the
fiscal year ended August 31, 2019, the Fund’s portfolio turnover rate was 28% of
the average value of its portfolio. During the fiscal period September 1, 2019
through October 31, 2019, the Fund’s portfolio turnover rate was 7% of
the average value of its portfolio.
Principal Investment Strategies of the Fund
The Fund mainly invests in common
stocks of issuers in developing and emerging markets throughout the world and at
times it may invest up to 100% of its total assets in foreign securities. Under
normal market conditions, the Fund will invest at least 80% of its net assets,
plus borrowings for investment purposes, in equity securities of issuers whose
principal activities are in a developing market, i.e. are in a developing market
or are economically tied to a developing market country, and in derivatives and
other instruments that have economic characteristics similar to such securities.
The Fund will invest in at least three developing markets. The Fund focuses on
companies with above-average earnings growth.
In general, countries may be considered
developing or emerging markets if they are included in any one of the Morgan
Stanley Capital International (MSCI) emerging markets indices, classified as a
developing or emerging market, or classified under a similar or corresponding
classification, by organizations such as the World Bank and the International
Monetary Fund, or have economies, industries and stock markets with similar
characteristics. For purposes of the Fund’s investments, a determination that an
issuer is economically tied to a developing market country is based on factors
including, but not limited to, geographic location of its primary trading
markets, location of its assets, its domicile or its principal offices, or
whether it receives revenues from a developing market. Such a determination can
also be based, in whole or in part, on inclusion of an issuer or its securities
in an index representative of developing or emerging markets.
The Fund may invest directly in certain
eligible China A Shares through Stock Connect (a securities trading and clearing
program designed to achieve mutual stock market access between the People’s
Republic of China (PRC) and Hong Kong), or, for operational efficiency and
regulatory considerations, through an investment in a private investment vehicle
organized under Delaware law (the “Private Fund”). The Private Fund may invest
in companies established or operating in, or with significant exposure to, the
PRC or other developing markets countries. The Private Fund’s managing member,
OppenheimerFunds, Inc., has full and exclusive discretionary authority to manage
the day-to-day operations of the Private
Fund and to invest its assets. The Fund’s investment in the Private Fund may
vary based on the portfolio manager’s use of different types of investments that
provide exposure to Chinese securities (through Stock Connect). Since the Fund
may invest a portion of its assets in the Private Fund, the Fund may be
considered to be investing indirectly in such securities through the Private
Fund.
1 Invesco
Oppenheimer Developing Markets Fund
In selecting investments for the Fund,
the portfolio manager evaluates investment opportunities on a company-by-company
basis. This approach includes fundamental analysis of a company’s
financial statements, management record, and capital structure, operations,
product development, and competitive position in its industry. The portfolio
manager also looks for newer or established businesses that are entering into a
growth cycle, have the potential for accelerating earnings growth or cash flow,
and possess reasonable valuations. The portfolio manager considers the effect of
worldwide trends on the growth of particular business sectors and looks for
companies that may benefit from those trends and seeks a diverse mix of
industries and countries to help reduce the risks of foreign investing, such as
currency fluctuations and stock market volatility. The portfolio manager may
invest in growth companies of different capitalization ranges in any developing
market country. The portfolio manager monitors individual issuers for changes in
the factors above, which may trigger a decision to sell a security.
Principal Risks of Investing in the Fund
As with any mutual fund investment,
loss of money is a risk of investing. An investment in the Fund is not a deposit
in a bank and is not insured or guaranteed by the Federal Deposit Insurance
Corporation or any other governmental agency. The risks associated with an
investment in the Fund can increase during times of significant market
volatility. The principal risks of investing in the Fund are:
Risks of Investing in Stocks.
The value of the Fund’s portfolio may be affected by changes in the stock
markets. Stock markets may experience significant short-term volatility and may
fall 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. 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.
Industry and Sector Focus. At
times the Fund may increase the relative emphasis of its investments in a
particular industry or sector. The prices of stocks of issuers in a particular
industry or sector 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. To the
extent that the Fund increases the relative emphasis of its investments in a
particular industry or sector, its share values may fluctuate in response to
events affecting that industry or sector. To some extent that risk may be
limited by the Fund’s policy of not concentrating its investments in any one
industry.
Risks of Investing in China A
Shares. Investments in Class A Shares of Chinese companies involve
certain risks and special considerations not typically associated with
investments in U.S. companies, such as greater government control over the
economy, political and legal uncertainty, currency fluctuations or blockage, the
risk that the Chinese government may decide not to continue to support economic
reform programs and the risk of nationalization or expropriation of assets.
Additionally, the Chinese securities markets are emerging markets subject to the
special risks applicable to developing and emerging market countries described
elsewhere in this prospectus.
Risks of Investing in the
Private Fund. The Private Fund is not registered under the Investment
Company Act of 1940. As an investor in the Private Fund, the Fund does not have
all of the protections offered to investors by the Investment Company Act of
1940. However, the Private Fund is controlled by the Fund and managed by
OppenheimerFunds, Inc. The Private Fund may invest substantially all of its
assets in a limited number of issuers or a single issuer. To the extent that it
does so, the Private Fund is more subject to the risks associated with
and developments affecting such issuers than a fund that invests more widely.
Risks of Investing through Stock
Connect. The Fund may invest directly in China A shares through Stock
Connect, and will be subject to the following risks: sudden changes in quota
limitations, application of trading suspensions, differences in trading days
between the PRC and Stock Connect, operational risk, clearing and settlement
risk and regulatory and taxation risk.
Risks of Foreign Investing.
Foreign securities are subject to special risks. Securities traded in
foreign markets may be less liquid and more volatile than those traded in U.S.
markets. Foreign issuers are usually not subject to the same accounting and
disclosure requirements that U.S. companies are subject to, which may
make it difficult for the Fund to evaluate a foreign company’s operations or
financial condition. A change in the value of a foreign currency against the
U.S. dollar will result in a change in the U.S. dollar value of investments
denominated in that foreign currency and in the value of any income or
distributions the Fund may receive on those investments. The value of foreign
investments may be affected by exchange control regulations, foreign taxes,
higher transaction and other costs, delays in the settlement of transactions,
changes in economic or monetary policy in the United States or abroad,
expropriation or nationalization of a company’s assets, or other political and
economic factors. In addition, due to the inter-relationship of global economies
and financial markets, 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. Foreign securities may trade on weekends or other days when the
Fund does not price its shares. As a result, the value of the Fund’s net assets
may change on days when you will not be able to purchase or redeem the Fund’s
shares. 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. Foreign securities and foreign currencies held in
foreign banks and securities depositories may be subject to only limited or no
regulatory oversight.
Risks of Developing and Emerging
Markets. Investments in developing and emerging markets are subject to all
the risks associated with foreign investing, however, these risks may be
magnified in developing and emerging markets. Developing or emerging market
countries may have less well-developed securities markets and exchanges that may
be substantially less liquid than those of more developed markets. Settlement
procedures in developing or emerging markets may differ from those of more
established securities markets, and settlement delays may result in the
inability to invest assets or to dispose of portfolio securities in a timely
manner. Securities prices in developing or emerging markets may be significantly
more volatile than is the case in more developed nations of the world, and
governments of developing or emerging market countries may also be more unstable
than the governments of more developed countries. Such countries’ economies may
be more dependent on relatively few industries or investors that may be highly
vulnerable to local and global changes. Developing or emerging market countries
also may be subject to social, political or economic instability. The value of
developing or emerging market countries’ currencies may fluctuate more than the
currencies of countries with more mature markets. Investments in developing or
emerging market countries may be subject to greater risks of government
restrictions, including confiscatory taxation, expropriation or nationalization
of a company’s assets, restrictions on foreign ownership of local companies,
restrictions on withdrawing assets from the country, protectionist
2 Invesco
Oppenheimer Developing Markets Fund
measures, and practices such as share
blocking. In addition, the ability of foreign entities to participate in
privatization programs of certain developing or emerging market countries may be
limited by local law. Investments in securities of issuers in developing or
emerging market countries may be considered speculative.
Eurozone Investment Risks.
Certain of the regions in which the Fund may invest, including the European
Union (EU), currently experience significant financial difficulties. Following
the global economic crisis that began in 2008, some of these countries have
depended on, and may continue to be dependent on, the assistance from others
such as the European Central Bank (ECB) or other governments or institutions,
and failure to implement reforms as a condition of assistance could have a
significant adverse effect on the value of investments in those and other
European countries. In addition, countries that have adopted the euro are
subject to fiscal and monetary controls that could limit the ability to
implement their own economic policies, and could voluntarily abandon, or be
forced out of, the euro. Such events could impact the market values of Eurozone
and various other securities and currencies, cause redenomination of certain
securities into less valuable local currencies, and create more volatile and
illiquid markets. Additionally, the United Kingdom’s intended departure from the
EU, commonly known as “Brexit,” may have significant political and financial
consequences for Eurozone markets, including greater market volatility and
illiquidity, currency fluctuations, deterioration in economic activity, a
decrease in business confidence and an increased likelihood of a recession in
the United Kingdom.
Risks of Small- and Mid-Cap Companies. Small-cap companies may be either established
or newer companies, including “unseasoned” companies that have typically been in
operation for less than three years. Mid-cap
companies are generally companies that have completed their initial start-up cycle, and in many cases have
established markets and developed seasoned market teams. While smaller companies
might offer greater opportunities for gain than larger companies, they also may
involve greater risk of loss. They may be more sensitive to changes in a
company’s earnings expectations and may experience more abrupt and erratic price
movements. Small- and mid-cap
companies’ securities may trade in lower volumes and it might be harder
for the Fund to dispose of its holdings at an acceptable price when it wants to
sell them. Small- and mid-cap companies
may not have established markets for their products or services and may have
fewer customers and product lines. They may have more limited access to
financial resources and may not have the financial strength to sustain them
through business downturns or adverse market conditions. Since small- and mid-cap companies typically reinvest a high
proportion of their earnings in their business, they may not pay dividends for
some time, particularly if they are newer companies. Small- and mid-cap companies may have unseasoned
management or less depth in management skill than larger, more established
companies. They may be more reliant on the efforts of particular members of
their management team and management changes may pose a greater risk to the
success of the business. It may take a substantial period of time before the
Fund realizes a gain on an investment in a small- or mid-cap company, if it realizes any gain at
all.
Risks of Growth Investing. If a
growth company’s earnings or stock price fails to increase as anticipated, or if
its business plans do not produce the expected results, the value of its
securities may decline sharply. Growth companies may be newer or smaller
companies that may experience greater stock price fluctuations and risks of loss
than larger, more established companies. Newer growth companies tend to retain a
large part of their earnings for research, development or investments in capital
assets. Therefore, they may not pay any dividends for some time. Growth
investing has gone in and out of favor during past market cycles and is likely
to continue to do so. During periods when growth investing is out of favor or
when markets are unstable, it may be more difficult to sell growth company
securities at an acceptable price. Growth stocks may also be more volatile than
other securities because of investor speculation.
Management Risk. The Fund is
actively managed and depends heavily on the Adviser’s judgment about markets,
interest rates or the attractiveness, relative values, liquidity, or potential
appreciation of particular investments made for the Fund’s portfolio. The Fund
could experience losses if these judgments prove to be incorrect. Additionally,
legislative, regulatory, or tax developments may adversely affect management of
the Fund and, therefore, the ability of the Fund to achieve its investment
objective.
Performance Information
The bar chart and performance table
provide an indication of the risks of investing in the Fund. The Fund has
adopted the performance of the Oppenheimer Developing Markets Fund (the
predecessor fund) as the result of a reorganization of the predecessor fund into
the Fund, which was consummated after the close of business on May 24, 2019 (the
“Reorganization”). Prior to the Reorganization, the Fund had not yet commenced
operations. The bar chart shows changes in the performance of the predecessor
fund from year to year as of December 31. The performance table compares the
predecessor fund’s performance to that of a broad-based securities market
benchmark. For more information on the benchmark used see the “Benchmark
Descriptions” section of the prospectus. The Fund’s (and the predecessor fund’s)
past performance (before and after taxes) is not necessarily an indication of
how the Fund will perform in the future.
The returns shown for periods ending on
or prior to May 24, 2019 are those of the Class A, Class C, Class R and Class Y
shares of the predecessor fund. Class R6 shares’ returns shown for periods
ending on or prior to May 24, 2019 are those of the Class I shares of the
predecessor fund. Class A, Class C, Class R and Class Y shares of the
predecessor fund were reorganized into Class A, Class C, Class R and Class Y
shares, respectively, of the Fund after the close of business on May 24, 2019.
Class I shares of the predecessor fund were reorganized into Class R6 shares of
the Fund after the close of business on May 24, 2019. Class A, Class C, Class R,
Class Y and Class R6 shares’ returns of the Fund will be different from the
returns of the predecessor fund as they have different expenses. Class R5 shares
of the Fund have less than a calendar year of performance; therefore, the
returns shown are those of the Fund’s and the predecessor fund’s Class A shares.
Although the Class R5 shares are invested in the same portfolio of securities,
Class R5 shares’ returns of the Fund will be different from Class A returns of
the Fund and the predecessor fund as they have different expenses. Performance
for Class A shares has been restated to reflect the Fund’s applicable sales
charge.
Updated performance information is
available on the Fund’s website at www.invesco.com/us.
Annual Total Returns
The bar chart does not reflect sales
loads. If it did, the annual total returns shown would be lower.
Class A shares year-to-date (ended
September 30, 2019): 10.95%
Best Quarter (ended June 30, 2009):
38.26%
Worst Quarter (ended September 30,
2011): -20.06%
3 Invesco
Oppenheimer Developing Markets Fund
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Average Annual Total Returns
(for the periods ended December 31, 2018) |
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1 Year
|
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5 Years
|
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10
Years |
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Since
Inception |
Class A shares: Inception
(11/18/1996) |
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Return Before Taxes
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-16.98 |
%
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|
|
-0.43 |
%
|
|
|
|
9.25 |
%
|
|
|
|
— |
|
Return After Taxes on
Distributions |
|
|
|
-17.07 |
|
|
|
|
-0.63 |
|
|
|
|
9.02 |
|
|
|
|
— |
|
Return After Taxes on
Distributions and Sale of Fund Shares |
|
|
|
-10.05
|
|
|
|
|
-0.39
|
|
|
|
|
7.53 |
|
|
|
|
— |
|
Class C shares: Inception
(11/18/1996) |
|
|
|
-13.71
|
|
|
|
|
-0.06
|
|
|
|
|
9.07 |
|
|
|
|
— |
|
Class R shares: Inception
(3/1/2001) |
|
|
|
-12.39
|
|
|
|
|
0.45 |
|
|
|
|
9.53 |
|
|
|
|
— |
|
Class Y shares: Inception
(9/7/2005) |
|
|
|
-11.95
|
|
|
|
|
0.95 |
|
|
|
|
10.17
|
|
|
|
|
— |
|
Class R5 shares 1
: Inception (5/24/2019) |
|
|
|
-12.14
|
|
|
|
|
0.70 |
|
|
|
|
9.87 |
|
|
|
|
— |
|
Class R6 shares: Inception
(12/29/2011) |
|
|
|
-11.79
|
|
|
|
|
1.13 |
|
|
|
|
— |
|
|
|
|
4.94 |
% |
MSCI Emerging Markets Index (Net)
(reflects reinvested dividends net of withholding taxes, but reflects no
deductions for fees, expenses or other taxes) |
|
|
|
-14.58
|
|
|
|
|
1.65 |
|
|
|
|
8.02 |
|
|
|
|
— |
|
1 |
Class R5
shares’ performance shown prior to the inception date (after the close of
business on May 24, 2019) is that of the predecessor fund’s Class A shares
at net asset value (NAV) and includes the 12b-1 fees applicable to Class A
shares. Class A shares’ performance reflects any applicable fee waivers
and/or expense reimbursements. |
After-tax returns are calculated using
the historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on
an investor’s tax situation and may differ from those shown, and after-tax
returns shown are not relevant to investors who hold their Fund shares through
tax-advantaged arrangements, such as 401(k) plans, 529 college savings plans or
individual retirement accounts. After-tax returns are shown for Class A shares
only and after-tax returns for other classes will vary.
Management of the Fund
Investment Adviser: Invesco Advisers,
Inc.
|
|
|
|
|
Portfolio Manager
|
|
Title
|
|
Length of Service on the Fund
|
Justin Leverenz, CFA
|
|
Portfolio
Manager |
|
2019 (predecessor fund 2007)
|
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 R6 shares, may also be purchased, redeemed or exchanged
on any business day through our website at www.invesco.com/us or by mail to
Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.
There are no minimum investments for
Class R shares for fund accounts. The minimum investments for Class A,
C and Y shares for fund accounts are as follows:
|
|
|
|
|
|
|
|
|
|
|
Type of Account |
|
Initial Investment Per Fund |
|
Additional Investments Per Fund |
Asset or fee-based accounts managed by your
financial adviser |
|
|
|
None |
|
|
|
|
None |
|
Employer Sponsored Retirement and
Benefit Plans and Employer Sponsored IRAs |
|
|
|
None |
|
|
|
|
None |
|
IRAs and Coverdell ESAs if the
new investor is purchasing shares through a systematic purchase plan
|
|
|
|
$25 |
|
|
|
|
$25 |
|
All other types of accounts if
the investor is purchasing shares through a systematic purchase plan
|
|
|
|
50 |
|
|
|
|
50 |
|
IRAs and Coverdell ESAs
|
|
|
|
250 |
|
|
|
|
25 |
|
All other accounts |
|
|
|
1,000
|
|
|
|
|
50 |
|
With respect to Class R5 and Class R6
shares, there is no minimum initial investment for Employer Sponsored Retirement
and Benefit Plans investing through a retirement platform that administers at
least $2.5 billion in retirement plan assets. All other Employer Sponsored
Retirement and Benefit Plans must meet a minimum initial investment of at least
$1 million in each Fund in which it invests.
For all other institutional investors
purchasing Class R5 or Class R6 shares, the minimum initial investment in each
share class is $1 million, unless such investment is made by (i) an investment
company, as defined under the Investment Company Act of 1940, as amended (1940
Act), that is part of a family of investment companies which own in the
aggregate at least $100 million in securities, or (ii) an account established
with a 529 college savings plan managed by Invesco, in which case there is no
minimum initial investment.
There are no minimum investment amounts
for Class R6 shares held through retail omnibus accounts maintained by an
intermediary, such as a broker, that (i) generally charges an asset-based fee or
commission in addition to those described in this prospectus, and (ii) maintains
Class R6 shares and makes them available to retail investors.
Tax Information
The Fund’s distributions generally are
taxable to you as ordinary income, capital gains, or some combination of both,
unless you are investing through a tax-advantaged arrangement, such as a 401(k)
plan, 529 college savings plan or individual retirement account. Any
distributions from a 401(k) plan or individual retirement account may be taxed
as ordinary income when withdrawn from such plan or account.
Payments to Broker-Dealers and Other Financial
Intermediaries
If you purchase the Fund through a
broker-dealer or other financial intermediary (such as a bank), the Fund, the
Fund’s distributor or its related companies may pay the intermediary for the
sale of Fund shares and related services. These payments may create a conflict
of interest by influencing the broker-dealer or other intermediary and your
salesperson or financial adviser to recommend the Fund over another investment.
Ask your salesperson or financial adviser or visit your financial intermediary’s
website for more information.
Investment Objective(s), Strategies, Risks and
Portfolio Holdings
Objective(s), Principal Investment Strategies and Risks
The Fund’s investment objective is to
seek capital appreciation. The Fund’s investment objective is fundamental and
may not be changed without shareholder approval.
The following strategies and types of
investments are the ones that the Fund considers to be the most important in
seeking to achieve its investment objective and the following risks are those
the Fund expects its portfolio to be subject to as a whole.
Common Stock. 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 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. 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
4 Invesco
Oppenheimer Developing Markets Fund
the company, general unfavorable
performance of the company’s sector or industry, or changes in government
regulations affecting the company or its industry. To the extent that securities
of a particular type are emphasized, (for example foreign stocks, stocks of
small- or mid-sized companies, growth
or value stocks, or stocks of companies in a particular industry), their share
values may fluctuate more in response to events affecting the market for those
types of securities.
Growth Investing. Growth
companies are companies whose earnings and stock prices are expected to grow at
a faster rate than the overall market. Growth companies can be new companies or
established companies that may be entering a growth cycle in their business.
Their anticipated growth may come from developing new products or services or
from expanding into new or growing markets. Growth companies may be applying new
technologies, new or improved distribution methods or new business models that
could enable them to capture an important or dominant market position. They may
have a special area of expertise or the ability to take advantage of changes in
demographic or other factors in a more profitable way. Newer growth companies
generally tend to invest a large part of their earnings into research,
development or capital assets. Although newer growth companies may not pay any
dividends for some time, their stocks may be valued because of their potential
for price increases.
Risks of Growth Investing. If a
growth company’s earnings or stock price fails to increase as anticipated, or if
its business plans do not produce the expected results, the value of its
securities may decline sharply. Growth companies may be newer or smaller
companies that may experience greater stock price fluctuations and risks of loss
than larger, more established companies. Newer growth companies tend to retain a
large part of their earnings for research, development or investments in capital
assets. Therefore, they may not pay any dividends for some time. Growth
investing has gone in and out of favor during past market cycles and is likely
to continue to do so. During periods when growth investing is out of favor or
when markets are unstable, it may be more difficult to sell growth company
securities at an acceptable price. Growth stocks may also be more volatile than
other securities because of investor speculation.
Investing in China A Shares. The
portfolio manager may pursue the Fund’s investment objective by investing a
portion of the Fund’s assets in China A shares (China A Shares), which are
shares of companies incorporated in the People’s Republic of China (PRC) and
listed on the Shanghai Stock Exchange (SSE) or the Shenzhen Stock Exchange
(SZSE). The China A Shares market is an active Chinese market that includes a
large number of Chinese equities as well as smaller or emerging Chinese
companies that may not list shares elsewhere. The China Securities Regulatory
Commission (CSRC) and the Securities and Futures Commission of Hong Kong have
approved programs which establish mutual stock market access between the PRC and
Hong Kong, via the Shanghai-Hong Kong Stock Connect and the Shenzhen-Hong Kong Stock Connect (Stock
Connect). Stock Connect is a securities trading and clearing program developed
by Hong Kong Exchanges and Clearing Limited, the SSE, the SZSE and China
Securities Depository and Clearing Corporation Limited (ChinaClear) designed to
achieve mutual stock market access between the PRC and Hong Kong.
The Fund may invest directly in certain
eligible China A Shares through Stock Connect or, for operational efficiency and
regulatory considerations, through an investment in a private investment vehicle
organized under Delaware law (the Private Fund). The Private Fund may invest in
companies established or operating in, or with significant exposure to, the PRC
or other developing markets countries. The Private Fund’s managing member,
OppenheimerFunds, Inc., has full and exclusive discretionary authority to manage
the day-to-day operations of the Private
Fund and to invest its assets. The Fund’s investment in the Private Fund may
vary based on the portfolio manager’s use of different types of investments that
provide exposure to Chinese securities, e.g., through Stock Connect. Since the
Fund may invest a portion of its assets in the Private Fund, the Fund may
be considered to be investing
indirectly in such securities through the Private Fund.
Risks of Investing through the
Private Fund. Investments in Class A shares of Chinese companies
involve certain risks and special considerations not typically associated with
investments in U.S. companies, such as greater government control over the
economy, political and legal uncertainty, currency fluctuations or blockage, the
risk that the Chinese government may decide not to continue to support economic
reform programs and the risk of nationalization or expropriation of assets.
Additionally, the Chinese securities markets are emerging markets and may be
characterized by relatively low trading volume, which may result in
substantially less liquidity and greater price volatility than more developed
markets. Some of these risks may be more pronounced for the China A Shares
market than for Chinese securities markets generally because the A-share market is subject to greater
government restrictions and control. The Private Fund’s China A Shares
investment quota may be reduced or revoked by the Chinese government at any
time, including if redemptions reduce the amount invested in China A Shares by
the Private Fund below the current quota amount. Further, the Private Fund may
invest substantially all of its assets in a limited number of issuers or a
single issuer. To the extent that it does so, the Private Fund is more subject
to the risks associated with and developments affecting such issuers than a fund
that invests more widely. In addition, although it is not currently expected to
do so, the Private Fund may invest a portion of its assets in certain
exchange-traded and over-the-counter financial instruments
from countries other than China.
The Fund will deem its investment in
the Private Fund to be illiquid and subject to the Fund’s policy regarding
investments in illiquid investments. The Fund will comply with Rule 22e-4 in managing its illiquid investments.
The Fund currently will invest no more than 10% of its net assets in the Private
Fund. Interests in the Private Fund may be redeemed, and net redemption proceeds
may be repatriated only once each day. In addition, the Private Fund is subject
to a monthly accumulated repatriation limit equal to 20% of the Private Fund’s
total investment in China A Shares and other QFII permitted securities as of the
end of the previous year. The Fund’s redemption of interests from the Private
Fund may be limited accordingly.
The Private Fund is not registered
under the Investment Company Act of 1940, as amended, and the rules and
regulations promulgated thereunder by the SEC. To the extent the Fund invests in
the Private Fund, it will not have all of the protections offered to investors
by the Investment Company Act of 1940.
Risks of Investing through Stock
Connect. Trading on Stock Connect is subject to an aggregated daily quota on
purchases that can change without notice, restricting the Fund’s ability to
invest in China A Shares on a timely basis. The Stock Exchange of Hong Kong
Limited (SEHK), SSE and SZSE may suspend trading of individual securities or
more broadly in response to market events, which may adversely affect the Fund’s
ability to access the PRC market. Stock Connect only operates on days when both
markets are open for trading and banks in both markets are also open on
corresponding settlement days, thus the Fund may not be able to trade China A
Shares on days when Stock Connect is not trading but normal trading for the PRC
market otherwise occurs. Prices may fluctuate on China A Shares on days when
Stock Connect is not trading. The Fund’s ability to enter and exit trades via
Stock Connect on a timely basis is also restricted by a prohibition on
turnaround (day) trading on the China A Share market (i.e., investors cannot
purchase and sell the same securities via Stock Connect in the same trading
day). Stock Connect relies on the maintenance by relevant market participants of
certain information technology, risk management and other requirements. There is
no assurance that relevant exchange trading systems and market participants will
function properly or continue to adapt to changes. If relevant systems fail to
function properly, trading disruptions can occur that adversely affect the
Fund’s ability to access the China A Share market. The Fund is also subject to
risks related
5 Invesco
Oppenheimer Developing Markets Fund
to the clearing and settlement of
securities, including for example where a default occurs in connection with the
settlement of cross border trades that could cause potential delays in the
Fund’s recovery process or its ability to fully recover losses. It is expected
that the list of eligible securities on Stock Connect will be subject to review
and may change periodically. Hong Kong and overseas investors are subject to a
restriction on single foreign investors’ holding no more than 10% of the total
issue shares, as well as a restriction that, in the aggregate, foreign
investors’ hold no more than 30% of the total issue shares. Therefore, foreign
investors could be required to unwind their positions if excessive shareholding
restrictions are exceeded.
Regulations and implementation rules
applicable to Stock Connect are novel and untested, and it is uncertain as to
how they will be applied. There is also general uncertainty regarding changes in
government policies, taxation, currency repatriation restrictions, permitted
foreign ownership levels and other laws or regulations that impact Stock
Connect. Under current PRC and CSRC tax guidance, capital gains realized by a
Fund from trading of eligible China A Shares on the SSE under Stock Connect may
currently enjoy a temporary exemption from PRC income and business tax. It is
not known when such exemption will expire and whether other taxes will be
applicable to trading securities under Stock Connect in the future. There is no
guarantee that relevant tax regulations and guidance, including the temporary
tax exemption with respect to Stock Connect, will continue to apply or will not
be repealed and re-imposed
retrospectively, or that no new tax regulations and practices relating to
Stock Connect will be promulgated in the future, possibly with retroactive
effect. Such changes could have a significant adverse effect on the Fund,
including reducing returns, reducing the value of the Fund’s investments, and
possibly impairing capital invested by the Fund.
Foreign Investing. The Fund may
buy stocks and other equity securities of companies that are organized under the
laws of a foreign country or that have a substantial portion of their operations
or assets in a foreign country or countries, or that derive a substantial
portion of their revenue or profits from businesses, investments or sales
outside of the United States.
The Fund may also buy debt securities
issued by foreign companies and foreign governments or their agencies.
The Fund may purchase American
Depositary Shares (ADS) as part of American Depositary Receipt (ADR) issuances,
which are negotiable certificates issued by a U.S. bank representing a specified
number of shares in a foreign stock traded on a U.S. exchange. ADS and ADRs are
subject to some of the special considerations and risks that apply to foreign
securities traded and held abroad.
Risks of Foreign Investing.
Securities traded in foreign markets often involve special risks not present
in U.S. investments that can increase the chances the Fund will lose money.
Additional information regarding certain of the risks associated with foreign
investing is provided below.
|
∎
|
|
Foreign
Market Risk. If there are fewer investors in a particular foreign
market, securities traded in that market may be less liquid and more
volatile than U.S. securities and more difficult to price. Foreign markets
may also be subject to delays in the settlement of transactions and
difficulties in pricing securities. If the Fund is delayed in settling a
purchase or sale transaction, it may not receive any return on the
invested assets or it may lose money if the value of the security
declines. It may also be more expensive for the Fund to buy or sell
securities in certain foreign markets than in the United States, which may
increase the Fund’s expense ratio. |
|
∎
|
|
Foreign
Economy Risk. Foreign economies may be more vulnerable to political or
economic changes than the U.S. economy. They may be more concentrated in
particular industries or may rely on particular resources or trading
partners to a greater extent. Certain foreign economies may be adversely
affected by shortages of investment capital or by high rates of inflation.
Changes in economic or monetary policy in the U.S. or abroad may also have
a greater impact on the economies of certain foreign countries.
|
|
∎
|
|
Foreign
Governmental and Regulatory Risks. Foreign companies may not be
subject to the same accounting and disclosure requirements as U.S.
|
|
|
companies. As a result
there may be less accurate information available regarding a foreign
company’s operations and financial condition. Foreign companies may be
subject to capital controls, nationalization, or confiscatory taxes. There
may be less government regulation of foreign issuers, exchanges and
brokers than in the United States. Some countries also have restrictions
that limit foreign ownership and may impose penalties for increases in the
value of the Fund’s investment. The value of the Fund’s foreign
investments may be affected if it experiences difficulties in enforcing
legal judgments in foreign courts. |
|
∎
|
|
Foreign
Currency Risk. A change in the value of a foreign currency against the
U.S. dollar will result in a change in the U.S. dollar value of securities
denominated in that foreign currency. If the U.S. dollar rises in value
against a foreign currency, a security denominated in that currency will
be worth less in U.S. dollars and if the U.S. dollar decreases in value
against a foreign currency, a security denominated in that currency will
be worth more in U.S. dollars. The dollar value of foreign investments may
also be affected by exchange controls. Foreign currency exchange
transactions may impose additional costs on the Fund. The Fund can also
invest in derivative instruments linked to foreign currencies. The change
in value of a foreign currency against the U.S. dollar will result in a
change in the U.S. dollar value of derivatives linked to that foreign
currency. The investment adviser’s selection of foreign
currency-denominated investments may not perform as expected. Currency
derivative investments may be particularly volatile and subject to greater
risks than other types of foreign currency-denominated investments.
|
|
∎
|
|
Foreign
Custody Risk. There may be very limited regulatory oversight of
certain foreign banks or securities depositories that hold foreign
securities and foreign currency and the laws of certain countries may
limit the ability to recover such assets if a foreign bank or depository
or their agents goes bankrupt. There may also be an increased risk of loss
of portfolio securities. |
|
∎
|
|
Time Zone
Arbitrage. If the Fund invests a significant amount of its assets in
foreign securities, it may be exposed to “time-zone arbitrage” attempts by
investors seeking to take advantage of differences in the values of
foreign securities that might result from events that occur after the
close of the foreign securities market on which a security is traded and
before the close of the New York Stock Exchange that day, when the Fund’s
net asset value is calculated. If such time zone arbitrage were
successful, it might dilute the interests of other shareholders. However,
the Fund’s use of “fair value pricing” under certain circumstances, to
adjust the closing market prices of foreign securities to reflect what the
investment adviser and the Board believe to be their fair value, may help
deter those activities. |
|
∎
|
|
Globalization Risks. The growing inter-relationship of
global economies and financial markets has increased the effect of
conditions in one country or region on issuers of securities in a
different country or region. In particular, the adoption or prolongation
of protectionist trade policies by one or more countries, changes in
economic or monetary policy in the United States or abroad, or a slowdown
in the U.S. economy, could lead to a decrease in demand for products and
reduced flows of capital and income to companies in other countries.
|
|
∎
|
|
Regional
Focus. At times, the Fund might increase the relative emphasis of its
investments in a particular region of the world. Securities of issuers in
a region might be affected by changes in economic conditions or by changes
in government regulations, availability of basic resources or supplies, or
other events that affect that region more than others. If the Fund has a
greater emphasis on investments in a particular region, it may be subject
to greater risks from adverse events that occur in that region than a fund
that invests in a different region or that is more geographically
diversified. Political, social or economic disruptions in the region may
adversely affect the values of the Fund’s holdings.
|
6 Invesco
Oppenheimer Developing Markets Fund
Risks of Developing and Emerging
Markets. Investments in developing and emerging market countries are subject
to all the risks associated with foreign investing, however, these risks may be
magnified in developing and emerging markets. Investments in securities of
issuers in developing or emerging market countries may be considered
speculative. Additional information regarding certain of the risks associated
with investing in developing and emerging markets is provided below.
|
∎
|
|
Less
Developed Securities Markets. Developing or emerging market countries
may have less well-developed securities markets and exchanges.
Consequently they have lower trading volume than the securities markets of
more developed countries and may be substantially less liquid than those
of more developed countries. |
|
∎
|
|
Transaction Settlement. Settlement procedures in developing
or emerging markets may differ from those of more established securities
markets, and settlement delays may result in the inability to invest
assets or to dispose of portfolio securities in a timely manner. As a
result there could be subsequent declines in the value of the portfolio
security, a decrease in the level of liquidity of the portfolio or, if
there is a contract to sell the security, a possible liability to the
purchaser. |
|
∎
|
|
Price
Volatility. Securities prices in developing or emerging markets may be
significantly more volatile than is the case in more developed nations of
the world, which may lead to greater difficulties in pricing securities.
|
|
∎
|
|
Less
Developed Governments and Economies. The governments of developing or
emerging market countries may be more unstable than the governments of
more developed countries. In addition, the economies of developing or
emerging market countries may be more dependent on relatively few
industries or investors that may be highly vulnerable to local and global
changes. Developing or emerging market countries may be subject to social,
political, or economic instability. Further, the value of the currency of
a developing or emerging market country may fluctuate more than the
currencies of countries with more mature markets.
|
|
∎
|
|
Government
Restrictions. In certain developing or emerging market countries,
government approval may be required for the repatriation of investment
income, capital or the proceeds of sales of securities by foreign
investors. Other government restrictions may include confiscatory
taxation, expropriation or nationalization of company assets, restrictions
on foreign ownership of local companies, protectionist measures, and
practices such as share blocking. |
|
∎
|
|
Privatization Programs. The governments in some developing
or emerging market countries have been engaged in programs to sell all or
part of their interests in government-owned or controlled enterprises.
However, in certain developing or emerging market countries, the ability
of foreign entities to participate in privatization programs may be
limited by local law. There can be no assurance that privatization
programs will be successful. |
Eurozone Investment Risks. The
European Union (EU) is an economic and political union of most western European
countries and a growing number of eastern European countries, collectively known
as “member states.” One of the key mandates of the EU is the establishment and
administration of a common single market, consisting of, among other things, a
single currency and a common trade policy. In order to pursue this goal, member
states established the Economic and Monetary Union (EMU), which sets out
different stages and commitments that member states need to follow to achieve
greater economic and monetary policy coordination, including the adoption of a
single currency, the euro. Many member states have adopted the euro as their
currency and, as a result, are subject to the monetary policies of the European
Central Bank (ECB).
The global economic crisis that began
in 2008 has caused severe financial difficulties for many EU member states,
pushing some to the brink of insolvency and causing others to experience
recession, large public debt, restructuring of government debt, credit rating
downgrades and an overall weakening of banking and financial sectors. Some of
those countries have depended on, and may continue to be dependent on, the
assistance from
others such as the ECB, the
International Monetary Fund (IMF), or other governments and institutions to
address those issues. Failure by one or more EU member states to implement
reforms or attain a certain performance level imposed as a condition of
assistance, or an insufficient level of assistance, could deepen or prolong the
economic downturn which could have a significant adverse effect on the value of
investments in those and other European countries. By adopting the euro as its
currency, members of the EMU are subject to fiscal and monetary controls that
could limit to some degree the ability to implement their own economic policies.
Additionally, EMU member states could voluntarily abandon the euro or
involuntarily be forced out of the euro, including by way of a partial or
complete dissolution of the EMU. The effects of such outcomes on the rest of the
Eurozone and global markets as a whole are unpredictable, but are likely to be
negative, including adversely impacted market values of Eurozone and various
other securities and currencies, redenomination of certain securities into less
valuable local currencies, and more volatile and illiquid markets. Under such
circumstances, investments denominated in euros or replacement currencies may be
difficult to value, the ability to operate an investment strategy in connection
with euro-denominated securities may be significantly impaired and the value of
euro-denominated investments may decline significantly and unpredictably.
Additionally, the United Kingdom’s (UK) intended departure from the EU, known as
“Brexit,” may have significant political and financial consequences for Eurozone
markets, including greater market volatility and illiquidity, currency
fluctuations, deterioration in economic activity, a decrease in business
confidence and an increased likelihood of a recession in the UK. Uncertainty
relating to the withdrawal procedures and timeline may have adverse effects on
asset valuations and the renegotiation of current trade agreements, as well as
an increase in financial regulation of UK banks. While the full impact of Brexit
is unknown, market disruption in the EU and globally may have a negative effect
on the value of the Fund’s investments. Additionally, the risks related to
Brexit could be more pronounced if one or more additional EU member states seek
to leave the EU.
Small- and Mid-Cap Companies. Small-cap companies may be either established
or newer companies, including “unseasoned” companies that typically have been in
operation for less than three years. Mid-cap
companies are generally companies that have completed their initial start-up cycle, and in many cases have
established markets and developed seasoned market teams. While smaller companies
might offer greater opportunities for gain than larger companies, they also may
involve greater risk of loss. They may be more sensitive to changes in a
company’s earnings expectations and may experience more abrupt and erratic price
movements. 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.
Small- and mid-cap companies may not
have established markets for their products or services and may have fewer
customers and product lines. They may have more limited access to financial
resources and may not have the financial strength to sustain them through
business downturns or adverse market conditions. Since small- and mid-cap companies typically reinvest a high
proportion of their earnings in their business, they may not pay dividends for
some time, particularly if they are newer companies. Smaller companies may have
unseasoned management or less depth in management skill than larger, more
established companies. They may be more reliant on the efforts of particular
members of their management team and management changes may pose a greater risk
to the success of the business. Securities of small, unseasoned companies may be
particularly volatile, especially in the short term, and may have very limited
liquidity in a declining market. It may take a substantial period of time to
realize a gain on an investment in a small- or mid-cap company, if any gain is realized at
all.
7 Invesco
Oppenheimer Developing Markets Fund
The Fund measures the market
capitalization of an issuer at the time of investment. Because the relative
sizes of companies change over time as the securities market changes, the Fund’s
definition of what is a “small-cap,”
“mid-cap” or “large-cap” company may change over time as
well. After the Fund buys the security of an individual company, that company
may expand or contract and no longer fall within the designated capitalization
range. Although the Fund is not required to sell the securities of companies
whose market capitalizations have grown or decreased beyond the Fund’s
capitalization-range definition, it might sell some of those holdings to try to
adjust the dollar-weighted median capitalization of its portfolio. That might
cause the Fund to realize capital gains on an investment and could increase
taxable distributions to shareholders.
When the Fund invests in smaller
company securities that might trade infrequently, investors might seek to trade
Fund shares based on their knowledge or understanding of the value of those
securities (this is sometimes referred to as “price arbitrage”). If such price
arbitrage were successful, it might interfere with the efficient management of
the Fund’s portfolio and the Fund may be required to sell securities at
disadvantageous times or prices to satisfy the liquidity requirements created by
that activity. Successful price arbitrage might also dilute the value of fund
shares held by other shareholders.
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.
Additional Investment Information.
In anticipation of or in response to market, economic, political, or other
conditions, the Fund’s portfolio manager may temporarily use a different
investment strategy for defensive purposes. If the Fund’s portfolio manager does
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.
Other Investment Strategies and Risks
The Fund can also use the investment
techniques and strategies described below. The Fund might not use all of these
techniques or strategies or might only use them from time to time.
Diversification and Concentration.
The Fund is a diversified fund. It attempts to reduce its exposure to the
risks of individual securities by diversifying its investments across a broad
number of different issuers. The Fund will not concentrate its investments in
issuers in any one industry. At times, however, the Fund may emphasize
investments in some industries or sectors more than others. The prices of
securities of issuers in a particular industry or sector 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. To the extent that the Fund increases the relative
emphasis of its investments in a particular industry or sector, its share values
may fluctuate in response to events affecting that industry or sector. The
Securities and Exchange Commission has taken the position that investment of
more than 25% of a fund’s total assets in issuers in the same industry
constitutes concentration in that industry. That limit does not
apply to securities issued or
guaranteed by the U.S. government or its agencies and instrumentalities. For
purposes of compliance with its concentration policy, the Fund will consider
portfolio investments held by underlying investment companies in which the Fund
invests, to the extent that the Fund has sufficient information about such
portfolio investments. The Fund will make reasonable efforts to obtain such
information.
Other Equity Securities. In
addition to common stocks, the Fund can invest in other equity or “equity
equivalents” securities such as preferred stocks, convertible securities, rights
or warrants.
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Preferred
stock has a set dividend rate and ranks ahead of common stocks and behind
debt securities in claims for dividends and for assets of the issuer in a
liquidation or bankruptcy. The dividends on preferred stock may be
cumulative (they remain a liability of the company until paid) or non-cumulative. The fixed dividend rate
of preferred stocks may cause their prices to behave more like those of
debt securities. If prevailing interest rates rise, the fixed dividend on
preferred stock may be less attractive, which may cause the price of
preferred stock to decline. |
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Warrants are
options to purchase equity securities at specific prices that are valid
for a specific period of time. Their prices do not necessarily move
parallel to the prices of the underlying securities, and can be more
volatile than the price of the underlying securities. If the market price
of the underlying security does not exceed the exercise price during the
life of the warrant, the warrant will expire worthless and any amount paid
for the warrant will be lost. The market for warrants may be very limited
and it may be difficult to sell a warrant promptly at an acceptable price.
Rights are similar to warrants, but normally have a short duration and are
distributed directly by the issuer to its shareholders. Rights and
warrants have no voting rights, receive no dividends and have no rights
with respect to the assets of the issuer. |
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A convertible
security 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. Convertible securities may offer the Fund
the ability to participate in stock market movements while also seeking
some current income. Convertible securities may provide more income than
common stock but they generally provide less income than comparable non-convertible debt securities.
Convertible securities are subject to credit and interest rate risk,
however credit ratings of convertible securities generally have less
impact on the value of the securities than they do for non-convertible debt securities.
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Investing in Domestic Securities.
The Fund can invest in common and preferred stocks and debt securities of
U.S. companies. It can also hold U.S. corporate and government debt securities
for defensive and liquidity purposes. Under normal market conditions, the Fund
does not expect to invest a significant amount of its assets in securities of
U.S. issuers.
Debt Securities. Debt securities
can include debt securities of foreign companies and governments, including
those in developing countries. However, the Fund does not invest for income and
does not expect to invest significant amounts in debt securities, unless they
are convertible securities considered to be “equity equivalents,” or debt
securities purchased for temporary defensive or liquidity purposes.
Debt securities may be subject to the
following risks:
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Interest
Rate Risk. Interest rate risk is the risk that rising interest rates,
or an expectation of rising interest rates in the near future, will cause
the values of the Fund’s investments in debt securities to decline. The
values of debt securities usually change when prevailing interest rates
change. When interest rates rise, the values of outstanding debt
securities generally fall, and those securities may sell at
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8 Invesco
Oppenheimer Developing Markets Fund
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a discount from their
face amount. Additionally, when interest rates rise, the decrease in
values of outstanding debt securities may not be offset by higher income
from new investments. When interest rates fall, the values of
already-issued debt securities generally rise and the Fund’s investments
in new securities may be at lower yields and may reduce the Fund’s income.
The values of longer-term debt securities usually change more than the
values of shorter-term debt securities when interest rates change; thus,
interest rate risk is usually greater for securities with longer
maturities or durations. “Zero-coupon” or “stripped” securities may be
particularly sensitive to interest rate changes. Risks associated with
rising interest rates are heightened given that interest rates in the U.S.
are near historic lows. Interest rate changes may have different effects
on the values of mortgage-related securities because of prepayment and
extension risks. |
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Duration
Risk. Duration is a measure of the price sensitivity of a debt
security or portfolio to interest rate changes. Duration risk is the risk
that longer-duration debt securities are more volatile and thus more
likely to decline in price, and to a greater extent, than shorter-duration
debt securities, in a rising interest-rate environment. “Effective
duration” attempts to measure the expected percentage change in the value
of a bond or portfolio resulting from a change in prevailing interest
rates. The change in the value of a bond or portfolio can be approximated
by multiplying its duration by a change in interest rates. For example, if
a bond has an effective duration of three years, a 1% increase in general
interest rates would be expected to cause the bond’s value to decline
about 3% while a 1% decrease in general interest rates would be expected
to cause the bond’s value to increase 3%. The duration of a debt security
may be equal to or shorter than the full maturity of a debt security.
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Credit
Risk. Credit risk is the risk that the issuer of a security might not
make interest and principal payments on the security as they become due.
U.S. government securities generally have lower credit risks than
securities issued by private issuers or certain foreign governments. If an
issuer fails to pay interest, the Fund’s income might be reduced, and if
an issuer fails to repay principal, the value of the security might fall
and the Fund could lose the amount of its investment in the security. The
extent of this risk varies based on the terms of the particular security
and the financial condition of the issuer. A downgrade in an issuer’s
credit rating or other adverse news about an issuer, for any reason, can
reduce the market value of that issuer’s securities.
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Credit
Spread Risk. Credit spread risk is the risk that credit spreads (i.e.,
the difference in yield between securities that is due to differences in
their credit quality) may increase when the market expects lower-grade
bonds to default more frequently. Widening credit spreads may quickly
reduce the market values of the Fund’s lower-rated and unrated securities.
Some unrated securities may not have an active trading market or may trade
less actively than rated securities, which means that the Fund might have
difficulty selling them promptly at an acceptable price.
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Extension
Risk. Extension risk is the risk that, if interest rates rise rapidly,
prepayments on certain debt securities may occur at a slower rate than
expected, and the expected maturity of those securities could lengthen as
a result. Securities that are subject to extension risk generally have a
greater potential for loss when prevailing interest rates rise, which
could cause their values to fall sharply. Extension risk is particularly
prevalent for a callable security where an increase in interest rates
could result in the issuer of that security choosing not to redeem the
security as anticipated on the security’s call date. Such a decision by
the issuer could have the effect of lengthening the debt security’s
expected maturity, making it more vulnerable to interest rate risk and
reducing its market value. |
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Reinvestment Risk. Reinvestment risk is the risk that when
interest rates fall, the Fund may be required to reinvest the proceeds
from a |
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security’s sale or
redemption at a lower interest rate. Callable bonds are generally subject
to greater reinvestment risk than non-callable bonds.
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Prepayment
Risk. Certain fixed-income securities (in particular mortgage-related
securities) are subject to the risk of unanticipated prepayment.
Prepayment risk is the risk that, when interest rates fall, the issuer
will redeem the security prior to the security’s expected maturity, or
that borrowers will repay the loans that underlie these fixed-income
securities more quickly than expected, thereby causing the issuer of the
security to repay the principal prior to expected maturity. The Fund may
need to reinvest the proceeds at a lower interest rate, reducing its
income. Securities subject to prepayment risk generally offer less
potential for gains when prevailing interest rates fall. If the Fund buys
those securities at a premium, accelerated prepayments on those securities
could cause the Fund to lose a portion of its principal investment. The
impact of prepayments on the price of a security may be difficult to
predict and may increase the security’s price volatility. Interest-only
and principal-only securities are especially sensitive to interest rate
changes, which can affect not only their prices but can also change the
income flows and repayment assumptions about those investments.
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Event
Risk. If an issuer of debt securities is the subject of a buyout, debt
restructuring, merger or recapitalization that increases its debt load, it
could interfere with its ability to make timely payments of interest and
principal and cause the value of its debt securities to fall.
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Fixed-Income Market Risks. The
fixed-income securities market can be susceptible to unusual volatility and
illiquidity. Volatility and illiquidity may be more pronounced in the case of
lower-rated and unrated securities. Liquidity can decline unpredictably in
response to overall economic conditions or credit tightening. Increases in
volatility and decreases in liquidity may be caused by a rise in interest rates
(or the expectation of a rise in interest rates), which are near historic lows
in the U.S. and in other countries. During times of reduced market liquidity,
the Fund may not be able to readily sell bonds at the prices at which they are
carried on the Fund’s books. If the Fund needed to sell large blocks of bonds to
meet shareholder redemption requests or to raise cash, those sales could further
reduce the bonds’ prices. An unexpected increase in Fund redemption requests
(including requests from shareholders who may own a significant percentage of
the Fund’s shares) which may be triggered by market turmoil or an increase in
interest rates, as well as other adverse market and economic developments, could
cause the Fund to sell its holdings at a loss or at undesirable prices and
adversely affect the Fund’s share price and increase the Fund’s liquidity risk,
Fund expenses and/or taxable distributions, if applicable. Similarly, the prices
of the Fund’s holdings could be adversely affected if an investment account
managed similarly to the Fund was to experience significant redemptions and that
account was required to sell its holdings at an inopportune time. The liquidity
of an issuer’s securities may decrease as a result of a decline in an issuer’s
credit rating, the occurrence of an event that causes counterparties to avoid
transacting with the issuer, or an increase in the issuer’s cash outflows, as
well as other adverse market and economic developments. A lack of liquidity or
other adverse credit market conditions may hamper the Fund’s ability to sell the
debt securities in which it invests or to find and purchase suitable debt
instruments.
Economic and other market developments
can adversely affect fixed-income securities markets in the United States,
Europe and elsewhere. At times, participants in debt securities markets may
develop concerns about the ability of certain issuers of debt securities to make
timely principal and interest payments, or they may develop concerns about the
ability of financial institutions that make markets in certain debt securities
to facilitate an orderly market. Those concerns may impact the market price or
value of those debt securities and may cause increased volatility in those debt
securities or debt securities markets, reducing the willingness of some lenders
to extend credit, and making it more difficult for borrowers to
9 Invesco
Oppenheimer Developing Markets Fund
obtain financing on attractive terms
(or at all). Under some circumstances, as was the case during the latter half of
2008 and early 2009, those concerns could cause reduced liquidity in certain
debt securities markets.
Following the financial crisis, the
Federal Reserve sought to stabilize the economy by keeping the federal funds
rate near zero percent. The Federal Reserve has also purchased large quantities
of securities issued or guaranteed by the U.S. government, its agencies or
instrumentalities, pursuant to its monetary stimulus program known as
“quantitative easing.” As the Federal Reserve has completed the tapering of its
securities purchases pursuant to quantitative easing, it has recently raised
interest rates on multiple occasions, and continues to consider future raises to
the federal funds rate, there is a risk that interest rates may rise and cause
fixed-income investors to move out of fixed-income securities, which may also
increase redemptions in fixed-income mutual funds.
In addition, although the fixed-income
securities markets have grown significantly in the last few decades, regulations
and business practices have led some financial intermediaries to curtail their
capacity to engage in trading (i.e., “market making”) activities for certain
debt securities. As a result, dealer inventories of fixed-income securities,
which provide an indication of the ability of financial intermediaries to make
markets in fixed-income securities, are near historic lows relative to market
size. Because market makers help stabilize the market through their financial
intermediary services, further reductions in dealer inventories could have the
potential to decrease liquidity and increase volatility in the fixed-income
securities markets.
Investing in Special Situations.
At times, the Fund may seek to benefit from what are considered to be
“special situations,” such as mergers, reorganizations, restructurings or other
unusual events, that are expected to affect a particular issuer. There is a risk
that the anticipated change or event might not occur, which could cause the
price of the security to fall, perhaps sharply. In that case, the investment
might not produce the expected gains or might cause a loss. This is an
aggressive investment technique that may be considered speculative.
Derivative Investments. The Fund
can invest in “derivative” instruments. A derivative is an instrument whose
value depends on (or is derived from) the value of an underlying security,
asset, interest rate, index or currency. Derivatives may allow the Fund to
increase or decrease its exposure to certain markets or risks.
The Fund may use derivatives to seek to
increase its investment return or for hedging purposes. The Fund is not required
to use derivatives in seeking its investment objective or for hedging and might
not do so.
Options, futures and forward contracts
are some of the types of derivatives that the Fund can use. The Fund may also
use other types of derivatives that are consistent with its investment
strategies or for hedging purposes.
Hedging. Hedging transactions
are intended to reduce the risks of securities in the Fund’s portfolio. At
times, however, a hedging instrument’s value might not be correlated with the
investment it is intended to hedge, and the hedge might be unsuccessful. If the
Fund uses a hedging instrument at the wrong time or judges market conditions
incorrectly, the strategy could reduce its return or create a loss.
Risks of Derivative Investments.
Derivatives may be volatile and may involve significant risks. The
underlying security, obligor or other instrument on which a derivative is based,
or the derivative itself, may not perform as expected. For some derivatives, it
is possible to lose more than the amount invested in the derivative investment.
In addition, some derivatives have the potential for unlimited loss, regardless
of the size of the Fund’s initial investment. Certain derivative investments
held by the Fund may be illiquid, making it difficult to close out an
unfavorable position. Derivative transactions may require the payment of
premiums and may increase portfolio turnover. Derivatives are subject to credit
risk, since the Fund may lose money on a derivative investment if the issuer or
counterparty fails to pay the amount due. 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. As a result of these risks, the Fund could realize little
or no income or lose money from the investment, or the use of a derivative for
hedging might be unsuccessful.
In addition, pursuant to rules
implemented under financial reform legislation, certain over-the-counter
derivatives, including certain interest rate swaps and certain
credit default swaps, are required to be executed on a regulated market and/or
cleared through a clearinghouse, which may result in increased margin
requirements and costs for the Fund. Entering into a derivative transaction that
is cleared may entail further risks and costs, including the counterparty risk
of the clearinghouse and the futures commission merchant through which the Fund
accesses the clearinghouse.
Illiquid and Restricted
Investments . Investments that do not have an active
trading market, or that have legal or contractual limitations on their resale,
may be considered to be “illiquid” investments. Illiquid investments may be
difficult to value or to sell promptly at an acceptable price or may require
registration under applicable securities laws before they can be sold publicly.
Securities that have limitations on their resale are referred to as “restricted
securities.” Certain restricted securities that are eligible for resale to
qualified institutional purchasers may not be regarded as illiquid.
The Fund will comply with Rule 22e-4 in managing its illiquid investments.
The Fund’s holdings of illiquid investments are monitored on an ongoing basis to
determine whether to sell any of those investments to maintain adequate
liquidity.
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 Advisers, Inc. serves as the
Fund’s investment adviser. The Adviser manages the investment operations of the
Fund as well as other investment portfolios that encompass a broad range of
investment objectives, and has agreed to perform or arrange for the performance
of the Fund’s day-to-day management. The Adviser is
located at 1555 Peachtree Street, N.E., Atlanta, Georgia 30309. The Adviser, as
successor in interest to multiple investment advisers, has been an investment
adviser since 1976.
Sub-Advisers . Invesco has entered into
one or more Sub-Advisory Agreements
with certain affiliates to serve as sub-advisers to the Fund (the Sub-Advisers). Invesco may appoint the Sub-Advisers from time to time to provide
discretionary investment management services, investment advice, and/or order
execution services to the Fund. The Sub-Advisers and the Sub-Advisory Agreements are described in the
SAI.
Potential New Sub-Advisers (Exemptive Order Structure)
. The SEC has also granted exemptive relief that permits the Adviser,
subject to certain conditions, to enter into new sub-advisory agreements with affiliated or
unaffiliated sub-advisers on behalf of
the Fund without shareholder approval. The exemptive relief also permits
material amendments to existing sub-advisory
agreements with affiliated or unaffiliated sub-advisers (including the Sub-Advisory Agreements with the Sub-Advisers) without shareholder approval.
Under this structure, the Adviser has ultimate responsibility, subject to
oversight of the Board, for overseeing such sub-advisers and recommending to the Board
their hiring, termination, or replacement. The structure does not permit
investment advisory fees paid by the Fund to be increased without shareholder
approval, or change the Adviser’s obligations under the investment advisory
agreement, including the Adviser’s responsibility to monitor and oversee sub-advisory services furnished to the Fund.
10 Invesco
Oppenheimer Developing Markets Fund
Exclusion of Adviser from Commodity Pool Operator Definition
With respect to the Fund, the Adviser
has claimed an exclusion from the definition of “commodity pool operator” (CPO)
under the Commodity Exchange Act (CEA) and the rules of the Commodity Futures
Trading Commission (CFTC) and, therefore, is not subject to CFTC registration or
regulation as a CPO. In addition, the Adviser is relying upon a related
exclusion from the definition of
“commodity trading advisor” (CTA) under the CEA and the rules of the CFTC with
respect to the Fund.
The terms of the CPO exclusion require
the Fund, among other things, to adhere to certain limits on its investments in
“commodity interests.” Commodity interests include commodity futures, commodity
options and swaps, which in turn include non-deliverable forwards. The Fund is
permitted to invest in these instruments as further described in the Fund’s SAI.
However, the Fund is not intended as a vehicle for trading in the commodity
futures, commodity options or swaps markets. The CFTC has neither reviewed nor
approved the Adviser’s reliance on these exclusions, or the Fund, its investment
strategies or this prospectus.
Adviser Compensation
The Adviser receives a fee from the
Fund, calculated at the annual rate of 1.00% of the first $250 million,
0.95% of the next $250 million, 0.90% of the next $500 million, 0.85%
of the next $6.0 billion, 0.80% of the next $3.0 billion, 0.75% of the
next $20 billion, 0.74% of the next $15 billion, and 0.73% of the
amount over $45 billion of average daily net assets. The advisory fee
payable by the Fund shall be reduced by any amounts paid by the Fund under the
administrative services agreement with the Adviser. Invesco, not the Fund, pays
sub-advisory fees, if any. The Adviser
does not receive advisory fees from the Private Fund.
A discussion regarding the basis for
the Board’s approval of the investment advisory agreement and investment sub-advisory agreements of the Fund is
available in the Fund’s most recent annual or semi-annual report to
shareholders.
Portfolio Manager
The following individual is primarily
responsible for the day-to-day management of the Fund’s
portfolio:
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Justin
Leverenz, CFA, Portfolio Manager, who has been responsible for the Fund
since 2019 and has been associated with Invesco and/or its affiliates
since 2019. Prior to the commencement of the Fund’s operations,
Mr. Leverenz managed the predecessor fund since 2007 and was
associated with OppenheimerFunds, a global asset management firm, since
2004. |
More information on the portfolio
manager 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 manager’s investments in the Fund, a description
of the compensation structure and information regarding other accounts managed.
About The Private Fund
The Private Fund is a limited liability
company organized under the laws of the State of Delaware and is overseen by its
managing member (the Managing Member), OppenheimerFunds, Inc.
Under the Private Fund’s limited
liability company operating agreement, the Managing Member has full and
exclusive discretionary authority and responsibility to manage the day-to-day
operations of the Private Fund and to invest and reinvest its
assets. The Managing Member does not receive advisory fees from the Private
Fund. The Private Fund has also entered into separate contracts for the
provision of custody, audit, and legal services, and bears the fees and expenses
incurred in connection with such services. The Fund expects that the expenses
borne by the Private Fund will not be material in relation to the value of the
Fund’s assets. It is further expected that the Fund’s investment in the Private
Fund will not result in
the Fund’s paying duplicative fees for
similar services provided to the Fund and Private Fund.
The Fund applies its investment
restrictions and compliance policies and procedures on a look-through basis to
the Private Fund, including, without limitation, those restrictions, policies
and procedures relating to portfolio leverage, liquidity, brokerage, and the
timing and method of the valuation of the Private Fund’s portfolio investments
and interests in the Private Fund. The Fund’s Chief Compliance Officer oversees
implementation of the policies and procedures applicable to the Private Fund,
and makes periodic reports to the Fund’s Board regarding the Private Fund’s
compliance with such restrictions, policies and procedures.
Currently, as a wholly-owned subsidiary
of the Fund, the Private Fund’s financial statements are consolidated with those
of the Fund in the Fund’s Annual and Semi-Annual Reports provided to
shareholders. Copies of the reports are provided without charge upon request as
indicated on the back cover of this prospectus. Please refer to the SAI for
additional information about the organization and management of the Private
Fund.
Other Information
Sales Charges
Purchases of Class A shares of the
Fund are subject to the maximum 5.50% initial sales charge as listed under the
heading “Category 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). For more information on CDSCs, see the
“Shareholder Account Information—Contingent Deferred Sales Charges (CDSCs)”
section of this prospectus.
Dividends and Distributions
The Fund expects, based on its
investment objective and strategies, that its distributions, if any, will
consist of ordinary income, capital gains, or some combination of both.
Dividends
The Fund generally declares and pays
dividends from net investment income, if any, annually.
Capital Gains Distributions
The Fund generally distributes
long-term and short-term capital gains (net of any available capital loss
carryovers), if any, at least annually. Capital gains distributions may vary
considerably from year to year as a result of the Fund’s normal investment
activities and cash flows. During a time of economic volatility, the Fund
may experience capital losses and unrealized depreciation in value of
investments, the effect of which may be to reduce or eliminate capital gains
distributions for a period of time. Even though the Fund may experience a
current year loss, it may nonetheless distribute prior year capital gains.
Limited Fund Offering
The Fund is closed to new investors.
Investors should note that the Fund reserves the right to refuse any order that
might disrupt the efficient management of the Fund.
Investors who were invested in the Fund
on May 24, 2019, may continue to make additional purchases in their accounts.
Any Employer Sponsored Retirement and Benefit Plan or its affiliated plans may
continue to make additional purchases of Fund shares and may add new accounts at
the plan level that may purchase Fund shares if the Employer Sponsored
Retirement and Benefit Plan or its affiliated plan had invested in the Fund as
of May 24, 2019. New Employer Sponsored Retirement and Benefit Plans or its
affiliated plans authorized prior to May 24, 2019 will have until December 31,
2019 to fund the account. Existing registered investment advisor (RIA) and bank
trust firms that have an investment allocation to the
11 Invesco
Oppenheimer Developing Markets Fund
Fund in a fee-based, wrap or advisory
account, can continue to add new clients, purchase shares, and exchange into the
Fund. The Fund will not be available to new RIA and bank trust firms. The Fund
may also accept investments by 529 college savings plans managed by the Adviser
during this limited offering.
The Fund may resume sale of shares to
new investors on a future date if the Adviser determines it is appropriate.
Benchmark Descriptions
The MSCI Emerging Markets Index is an
unmanaged index considered representative of stocks of developing countries.
12 Invesco
Oppenheimer Developing Markets Fund
Consolidated Financial Highlights
The consolidated financial highlights
information presented for the Fund includes the financial history of the
predecessor fund, which was reorganized into the Fund after the close of
business on May 24, 2019. The consolidated financial highlights show the Fund’s
and predecessor fund’s financial history for the past five fiscal years or, if
shorter, the applicable period of operations since the inception of the class of
shares, and the two-month period ended October 31, 2019. The consolidated
financial highlights table is intended to help you understand the Fund’s and the
predecessor fund’s financial performance. Certain information reflects financial
results for a single Fund share.
The total returns in the table
represent the rate that an investor would have earned (or lost) on an investment
in the Fund or predecessor fund (assuming reinvestment of all dividends and
distributions). The information for the fiscal years ended after May 24, 2019
has been audited by PricewaterhouseCoopers LLP, an independent registered public
accounting firm, whose report, along with the Fund’s financial statements, are
included in the Fund’s annual report, which is available upon request. The
information for fiscal years ended prior to May 24, 2019 has been audited by the
predecessor fund’s auditor. Effective October 31, 2019, the Fund changed its
fiscal year end from August 31 to October 31.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Two Months Ended October 31,
2019
|
|
Year Ended
August 31, |
Class A |
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
Per Share Operating Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value ,
beginning of period |
|
|
$ |
42.05
|
|
|
|
$ |
42.01
|
|
|
|
$ |
41.49
|
|
|
|
$ |
33.45
|
|
|
|
$ |
30.06
|
|
|
|
$ |
41.30
|
|
Income (loss) from investment
operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
1
|
|
|
|
0.06 |
|
|
|
|
0.14 |
|
|
|
|
0.06 |
|
|
|
|
0.13 |
|
|
|
|
0.12 |
|
|
|
|
0.17 |
|
Net realized and unrealized gain
(loss) |
|
|
|
2.17 |
|
|
|
|
0.01 |
|
|
|
|
0.59 |
|
|
|
|
7.98 |
|
|
|
|
3.40 |
|
|
|
|
(10.71
|
) |
Total from investment operations
|
|
|
|
2.23 |
|
|
|
|
0.15 |
|
|
|
|
0.65 |
|
|
|
|
8.11 |
|
|
|
|
3.52 |
|
|
|
|
(10.54
|
) |
Dividends and/or distributions
to shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends from net investment
income |
|
|
|
0.00 |
|
|
|
|
(0.11
|
) |
|
|
|
(0.13
|
) |
|
|
|
(0.07
|
) |
|
|
|
(0.13
|
) |
|
|
|
(0.10
|
) |
Distributions from net realized
gain |
|
|
|
0.00 |
|
|
|
|
0.00 |
|
|
|
|
0.00 |
|
|
|
|
0.00 |
|
|
|
|
0.00 |
|
|
|
|
(0.60
|
) |
Total dividends and/or
distributions to shareholders |
|
|
|
0.00 |
|
|
|
|
(0.11
|
) |
|
|
|
(0.13
|
) |
|
|
|
(0.07
|
) |
|
|
|
(0.13
|
) |
|
|
|
(0.70
|
) |
Net asset value , end of
period |
|
|
$ |
44.28
|
|
|
|
$ |
42.05
|
|
|
|
$ |
42.01
|
|
|
|
$ |
41.49
|
|
|
|
$ |
33.45
|
|
|
|
$ |
30.06
|
|
Total Return, at Net Asset
Value 2
|
|
|
|
5.30 |
% |
|
|
|
0.34 |
% |
|
|
|
1.59 |
% |
|
|
|
24.32
|
% |
|
|
|
11.74
|
% |
|
|
|
(25.84
|
)% |
Ratios/Supplemental Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of period (in
thousands) |
|
|
$ |
4,881,008
|
|
|
|
$ |
4,686,134
|
|
|
|
$ |
5,277,791
|
|
|
|
$ |
6,350,957
|
|
|
|
$ |
6,574,857
|
|
|
|
$ |
7,679,026
|
|
Average net assets (in thousands)
|
|
|
|
4,767,974
|
|
|
|
|
4,832,676
|
|
|
|
|
6,132,474
|
|
|
|
|
6,236,473
|
|
|
|
|
6,903,922
|
|
|
|
|
10,303,699
|
|
Ratios to average net assets:
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
|
0.80 |
% |
|
|
|
0.34 |
% |
|
|
|
0.13 |
% |
|
|
|
0.37 |
% |
|
|
|
0.38 |
% |
|
|
|
0.47 |
% |
Expenses excluding specific
expenses listed below |
|
|
|
1.24 |
% |
|
|
|
1.27 |
% |
|
|
|
1.29 |
% |
|
|
|
1.32 |
% |
|
|
|
1.32 |
% |
|
|
|
1.31 |
% |
Interest and fees from borrowings
|
|
|
|
0.00 |
% |
|
|
|
0.00
|
% 4
|
|
|
|
0.00
|
% 4
|
|
|
|
0.00
|
% 4
|
|
|
|
0.00
|
% 4
|
|
|
|
0.00
|
% 4
|
Total expenses 5
|
|
|
|
1.24 |
% |
|
|
|
1.27 |
% |
|
|
|
1.29 |
% |
|
|
|
1.32 |
% |
|
|
|
1.32 |
% |
|
|
|
1.31 |
% |
Expenses after payments, waivers
and/or reimbursements and reduction to custodian expenses |
|
|
|
1.24
|
% 6
|
|
|
|
1.27
|
% 6
|
|
|
|
1.28 |
% |
|
|
|
1.31 |
% |
|
|
|
1.32
|
% 6
|
|
|
|
1.30 |
% |
Portfolio turnover rate
7
|
|
|
|
7 |
% |
|
|
|
28 |
% |
|
|
|
36 |
% |
|
|
|
33 |
% |
|
|
|
18 |
% |
|
|
|
36 |
% |
1. |
Per share
amounts calculated based on the average shares outstanding during the
period. |
2. |
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. |
3. |
Annualized
for periods less than one full year. |
5. |
Total
expenses including indirect expenses from affiliated fund fees and
expenses were as follows: |
|
|
|
|
|
Two Months Ended October 31,
2019 |
|
|
1.24 |
% |
Year Ended August 31, 2019
|
|
|
1.27 |
% |
Year Ended August 31, 2018
|
|
|
1.29 |
% |
Year Ended August 31, 2017
|
|
|
1.32 |
% |
Year Ended August 31, 2016
|
|
|
1.32 |
% |
Year Ended August 31, 2015
|
|
|
1.31 |
% |
6. |
Waiver was
less than 0.005%. |
7. |
Portfolio
turnover is calculated at the fund level and is not annualized for periods
less than one year, if applicable. |
13 Invesco
Oppenheimer Developing Markets Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Two Months Ended October 31, 2019
|
|
Year Ended
August 31, |
Class C |
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
Per Share Operating Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value ,
beginning of period |
|
|
$ |
38.95
|
|
|
|
$ |
39.10
|
|
|
|
$ |
38.79
|
|
|
|
$ |
31.44
|
|
|
|
$ |
28.35
|
|
|
|
$ |
39.17
|
|
Income (loss) from investment
operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment loss 1
|
|
|
|
0.00
|
2
|
|
|
|
(0.16
|
) |
|
|
|
(0.25
|
) |
|
|
|
(0.13
|
) |
|
|
|
(0.11
|
) |
|
|
|
(0.10
|
) |
Net realized and unrealized gain
(loss) |
|
|
|
2.01 |
|
|
|
|
0.01 |
|
|
|
|
0.56 |
|
|
|
|
7.48 |
|
|
|
|
3.20 |
|
|
|
|
(10.12
|
) |
Total from investment operations
|
|
|
|
2.01 |
|
|
|
|
(0.15
|
) |
|
|
|
0.31 |
|
|
|
|
7.35 |
|
|
|
|
3.09 |
|
|
|
|
(10.22
|
) |
Dividends and/or distributions
to shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends from net investment
income |
|
|
|
0.00 |
|
|
|
|
0.00 |
|
|
|
|
0.00 |
|
|
|
|
0.00 |
|
|
|
|
0.00 |
|
|
|
|
0.00 |
|
Distributions from net realized
gain |
|
|
|
0.00 |
|
|
|
|
0.00 |
|
|
|
|
0.00 |
|
|
|
|
0.00 |
|
|
|
|
0.00 |
|
|
|
|
(0.60
|
) |
Total dividends and/or
distributions to shareholders |
|
|
|
0.00 |
|
|
|
|
0.00 |
|
|
|
|
0.00 |
|
|
|
|
0.00 |
|
|
|
|
0.00 |
|
|
|
|
(0.60
|
) |
Net asset value , end of
period |
|
|
$ |
40.96
|
|
|
|
$ |
38.95
|
|
|
|
$ |
39.10
|
|
|
|
$ |
38.79
|
|
|
|
$ |
31.44
|
|
|
|
$ |
28.35
|
|
Total Return, at Net Asset
Value 3
|
|
|
|
5.16 |
% |
|
|
|
(0.41
|
)% |
|
|
|
0.80 |
% |
|
|
|
23.38
|
% |
|
|
|
10.90
|
% |
|
|
|
(26.39
|
)% |
Ratios/Supplemental Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of period (in
thousands) |
|
|
$ |
403,027
|
|
|
|
$ |
493,169
|
|
|
|
$ |
826,481
|
|
|
|
$ |
973,031
|
|
|
|
$ |
1,046,894
|
|
|
|
$ |
1,311,171
|
|
Average net assets (in thousands)
|
|
|
|
443,673
|
|
|
|
|
697,567
|
|
|
|
|
943,157
|
|
|
|
|
964,547
|
|
|
|
|
1,114,383
|
|
|
|
|
1,785,113
|
|
Ratios to average net assets:
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss)
|
|
|
|
0.03 |
% |
|
|
|
(0.42
|
)% |
|
|
|
(0.62
|
)% |
|
|
|
(0.39
|
)% |
|
|
|
(0.39
|
)% |
|
|
|
(0.29
|
)% |
Expenses excluding specific
expenses listed below |
|
|
|
2.00 |
% |
|
|
|
2.02 |
% |
|
|
|
2.05 |
% |
|
|
|
2.07 |
% |
|
|
|
2.07 |
% |
|
|
|
2.06 |
% |
Interest and fees from borrowings
|
|
|
|
0.00 |
% |
|
|
|
0.00
|
% 5
|
|
|
|
0.00
|
% 5
|
|
|
|
0.00
|
% 5
|
|
|
|
0.00
|
% 5
|
|
|
|
0.00
|
% 5
|
Total expenses 6
|
|
|
|
2.00 |
% |
|
|
|
2.02 |
% |
|
|
|
2.05 |
% |
|
|
|
2.07 |
% |
|
|
|
2.07 |
% |
|
|
|
2.06 |
% |
Expenses after payments, waivers
and/or reimbursements and reduction to custodian expenses |
|
|
|
2.00
|
% 7
|
|
|
|
2.02
|
% 7
|
|
|
|
2.04 |
% |
|
|
|
2.06 |
% |
|
|
|
2.07
|
% 7
|
|
|
|
2.05 |
% |
Portfolio turnover rate
8
|
|
|
|
7 |
% |
|
|
|
28 |
% |
|
|
|
36 |
% |
|
|
|
33 |
% |
|
|
|
18 |
% |
|
|
|
36 |
% |
1. |
Per share
amounts calculated based on the average shares outstanding during the
period. |
2. |
Less than
$0.005 per share. |
3. |
Includes
adjustments in accordance with accounting principles generally accepted in
the United States of America and as such, the net asset value for
financial reporting purposes and the returns based upon those net asset
values may differ from the net asset value and returns for shareholder
transactions. Does not include sales charges and is not annualized for
periods less than one year, if applicable. |
4. |
Annualized
for periods less than one full year. |
6. |
Total
expenses including indirect expenses from affiliated fund fees and
expenses were as follows: |
|
|
|
|
|
Two Months Ended October 31,
2019 |
|
|
2.00 |
% |
Year Ended August 31, 2019
|
|
|
2.02 |
% |
Year Ended August 31, 2018
|
|
|
2.05 |
% |
Year Ended August 31, 2017
|
|
|
2.07 |
% |
Year Ended August 31, 2016
|
|
|
2.07 |
% |
Year Ended August 31, 2015
|
|
|
2.06 |
% |
7. |
Waiver was
less than 0.005%. |
8. |
Portfolio
turnover is calculated at the fund level and is not annualized for periods
less than one year, if applicable. |
14 Invesco
Oppenheimer Developing Markets Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Two Months Ended October 31, 2019
|
|
Year Ended
August 31, |
Class R |
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
Per Share Operating Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value ,
beginning of period |
|
|
$ |
40.36
|
|
|
|
$ |
40.32
|
|
|
|
$ |
39.84
|
|
|
|
$ |
32.13
|
|
|
|
$ |
28.88
|
|
|
|
$ |
39.74
|
|
Income (loss) from investment
operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss)
1
|
|
|
|
0.04 |
|
|
|
|
0.03 |
|
|
|
|
(0.05
|
) |
|
|
|
0.05 |
|
|
|
|
0.04 |
|
|
|
|
0.08 |
|
Net realized and unrealized gain
(loss) |
|
|
|
2.08 |
|
|
|
|
0.01 |
|
|
|
|
0.58 |
|
|
|
|
7.66 |
|
|
|
|
3.27 |
|
|
|
|
(10.30
|
) |
Total from investment operations
|
|
|
|
2.12 |
|
|
|
|
0.04 |
|
|
|
|
0.53 |
|
|
|
|
7.71 |
|
|
|
|
3.31 |
|
|
|
|
(10.22
|
) |
Dividends and/or distributions
to shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends from net investment
income |
|
|
|
0.00 |
|
|
|
|
0.00 |
|
|
|
|
(0.05
|
) |
|
|
|
(0.00
|
) 2
|
|
|
|
(0.06
|
) |
|
|
|
(0.04
|
) |
Distributions from net realized
gain |
|
|
|
0.00 |
|
|
|
|
0.00 |
|
|
|
|
0.00 |
|
|
|
|
0.00 |
|
|
|
|
0.00 |
|
|
|
|
(0.60
|
) |
Total dividends and/or
distributions to shareholders |
|
|
|
0.00 |
|
|
|
|
0.00 |
|
|
|
|
(0.05
|
) |
|
|
|
(0.00
|
) |
|
|
|
(0.06
|
) |
|
|
|
(0.64
|
) |
Net asset value , end of
period |
|
|
$ |
42.48
|
|
|
|
$ |
40.36
|
|
|
|
$ |
40.32
|
|
|
|
$ |
39.84
|
|
|
|
$ |
32.13
|
|
|
|
$ |
28.88
|
|
Total Return, at Net Asset
Value 3
|
|
|
|
5.25 |
% |
|
|
|
0.10 |
% |
|
|
|
1.32 |
% |
|
|
|
24.01
|
% |
|
|
|
11.47
|
% |
|
|
|
(26.03
|
)% |
Ratios/Supplemental Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of period (in
thousands) |
|
|
$ |
472,840
|
|
|
|
$ |
471,206
|
|
|
|
$ |
585,385
|
|
|
|
$ |
680,861
|
|
|
|
$ |
634,007
|
|
|
|
$ |
657,581
|
|
Average net assets (in thousands)
|
|
|
|
471,672
|
|
|
|
|
510,935
|
|
|
|
|
667,630
|
|
|
|
|
626,788
|
|
|
|
|
627,034
|
|
|
|
|
832,613
|
|
Ratios to average net assets:
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss)
|
|
|
|
0.54 |
% |
|
|
|
0.08 |
% |
|
|
|
(0.12
|
)% |
|
|
|
0.14 |
% |
|
|
|
0.14 |
% |
|
|
|
0.23 |
% |
Expenses excluding specific
expenses listed below |
|
|
|
1.50 |
% |
|
|
|
1.52 |
% |
|
|
|
1.55 |
% |
|
|
|
1.57 |
% |
|
|
|
1.57 |
% |
|
|
|
1.56 |
% |
Interest and fees from borrowings
|
|
|
|
0.00 |
% |
|
|
|
0.00
|
% 5
|
|
|
|
0.00
|
% 5
|
|
|
|
0.00
|
% 5
|
|
|
|
0.00
|
% 5
|
|
|
|
0.00
|
% 5
|
Total expenses 6
|
|
|
|
1.50 |
% |
|
|
|
1.52 |
% |
|
|
|
1.55 |
% |
|
|
|
1.57 |
% |
|
|
|
1.57 |
% |
|
|
|
1.56 |
% |
Expenses after payments, waivers
and/or reimbursements and reduction to custodian expenses |
|
|
|
1.50
|
% 7
|
|
|
|
1.52
|
% 7
|
|
|
|
1.54 |
% |
|
|
|
1.56 |
% |
|
|
|
1.57
|
% 7
|
|
|
|
1.55 |
% |
Portfolio turnover rate
8
|
|
|
|
7 |
% |
|
|
|
28 |
% |
|
|
|
36 |
% |
|
|
|
33 |
% |
|
|
|
18 |
% |
|
|
|
36 |
% |
1. |
Per share
amounts calculated based on the average shares outstanding during the
period. |
2. |
Less than
$0.005 per share. |
3. |
Includes
adjustments in accordance with accounting principles generally accepted in
the United States of America and as such, the net asset value for
financial reporting purposes and the returns based upon those net asset
values may differ from the net asset value and returns for shareholder
transactions. Does not include sales charges and is not annualized for
periods less than one year, if applicable. |
4. |
Annualized
for periods less than one full year. |
6. |
Total
expenses including indirect expenses from affiliated fund fees and
expenses were as follows: |
|
|
|
|
|
Two Months Ended October 31,
2019 |
|
|
1.50 |
% |
Year Ended August 31, 2019
|
|
|
1.52 |
% |
Year Ended August 31, 2018
|
|
|
1.55 |
% |
Year Ended August 31, 2017
|
|
|
1.57 |
% |
Year Ended August 31, 2016
|
|
|
1.57 |
% |
Year Ended August 31, 2015
|
|
|
1.56 |
% |
7. |
Waiver was
less than 0.005%. |
8. |
Portfolio
turnover is calculated at the fund level and is not annualized for periods
less than one year, if applicable. |
15 Invesco
Oppenheimer Developing Markets Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Two Months Ended October 31, 2019
|
|
Year Ended
August 31, |
Class Y |
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
Per Share Operating Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value ,
beginning of period |
|
|
$ |
41.49
|
|
|
|
$ |
41.48
|
|
|
|
$ |
40.98
|
|
|
|
$ |
33.06
|
|
|
|
$ |
29.73
|
|
|
|
$ |
40.88
|
|
Income (loss) from investment
operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
1
|
|
|
|
0.07 |
|
|
|
|
0.24 |
|
|
|
|
0.16 |
|
|
|
|
0.24 |
|
|
|
|
0.19 |
|
|
|
|
0.26 |
|
Net realized and unrealized gain
(loss) |
|
|
|
2.14 |
|
|
|
|
0.00
|
2
|
|
|
|
0.59 |
|
|
|
|
7.85 |
|
|
|
|
3.36 |
|
|
|
|
(10.59
|
) |
Total from investment operations
|
|
|
|
2.21 |
|
|
|
|
0.24 |
|
|
|
|
0.75 |
|
|
|
|
8.09 |
|
|
|
|
3.55 |
|
|
|
|
(10.33
|
) |
Dividends and/or distributions
to shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends from net investment
income |
|
|
|
0.00 |
|
|
|
|
(0.23
|
) |
|
|
|
(0.25
|
) |
|
|
|
(0.17
|
) |
|
|
|
(0.22
|
) |
|
|
|
(0.22
|
) |
Distributions from net realized
gain |
|
|
|
0.00 |
|
|
|
|
0.00 |
|
|
|
|
0.00 |
|
|
|
|
0.00 |
|
|
|
|
0.00 |
|
|
|
|
(0.60
|
) |
Total dividends and/or
distributions to shareholders |
|
|
|
0.00 |
|
|
|
|
(0.23
|
) |
|
|
|
(0.25
|
) |
|
|
|
(0.17
|
) |
|
|
|
(0.22
|
) |
|
|
|
(0.82
|
) |
Net asset value , end of
period |
|
|
$ |
43.70
|
|
|
|
$ |
41.49
|
|
|
|
$ |
41.48
|
|
|
|
$ |
40.98
|
|
|
|
$ |
33.06
|
|
|
|
$ |
29.73
|
|
Total Return, at Net Asset
Value 3
|
|
|
|
5.33 |
% |
|
|
|
0.61 |
% |
|
|
|
1.82 |
% |
|
|
|
24.61
|
% |
|
|
|
12.04
|
% |
|
|
|
(25.66
|
)% |
Ratios/Supplemental Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of period (in
thousands) |
|
|
$ |
19,342,101
|
|
|
|
$ |
18,525,445
|
|
|
|
$ |
17,898,340
|
|
|
|
$ |
17,496,988
|
|
|
|
$ |
13,551,480
|
|
|
|
$ |
15,358,492
|
|
Average net assets (in thousands)
|
|
|
|
18,887,742
|
|
|
|
|
17,807,102
|
|
|
|
|
18,317,515
|
|
|
|
|
14,523,085
|
|
|
|
|
13,507,017
|
|
|
|
|
19,567,341
|
|
Ratios to average net assets:
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
|
1.04 |
% |
|
|
|
0.59 |
% |
|
|
|
0.38 |
% |
|
|
|
0.67 |
% |
|
|
|
0.62 |
% |
|
|
|
0.74 |
% |
Expenses excluding specific
expenses listed below |
|
|
|
1.00 |
% |
|
|
|
1.02 |
% |
|
|
|
1.05 |
% |
|
|
|
1.07 |
% |
|
|
|
1.07 |
% |
|
|
|
1.06 |
% |
Interest and fees from borrowings
|
|
|
|
0.00 |
% |
|
|
|
0.00
|
% 5
|
|
|
|
0.00
|
% 5
|
|
|
|
0.00
|
% 5
|
|
|
|
0.00
|
% 5
|
|
|
|
0.00
|
% 5
|
Total expenses 6
|
|
|
|
1.00 |
% |
|
|
|
1.02 |
% |
|
|
|
1.05 |
% |
|
|
|
1.07 |
% |
|
|
|
1.07 |
% |
|
|
|
1.06 |
% |
Expenses after payments, waivers
and/or reimbursements and reduction to custodian expenses |
|
|
|
1.00
|
% 7
|
|
|
|
1.02
|
% 7
|
|
|
|
1.04 |
% |
|
|
|
1.06 |
% |
|
|
|
1.07
|
% 7
|
|
|
|
1.05 |
% |
Portfolio turnover rate
8
|
|
|
|
7 |
% |
|
|
|
28 |
% |
|
|
|
36 |
% |
|
|
|
33 |
% |
|
|
|
18 |
% |
|
|
|
36 |
% |
1. |
Per share
amounts calculated based on the average shares outstanding during the
period. |
2. |
Less than
$0.005 per share. |
3. |
Includes
adjustments in accordance with accounting principles generally accepted in
the United States of America and as such, the net asset value for
financial reporting purposes and the returns based upon those net asset
values may differ from the net asset value and returns for shareholder
transactions. Does not include sales charges and is not annualized for
periods less than one year, if applicable. |
4. |
Annualized
for periods less than one full year. |
6. |
Total
expenses including indirect expenses from affiliated fund fees and
expenses were as follows: |
|
|
|
|
|
Two Months Ended October 31,
2019 |
|
|
1.00 |
% |
Year Ended August 31, 2019
|
|
|
1.02 |
% |
Year Ended August 31, 2018
|
|
|
1.05 |
% |
Year Ended August 31, 2017
|
|
|
1.07 |
% |
Year Ended August 31, 2016
|
|
|
1.07 |
% |
Year Ended August 31, 2015
|
|
|
1.06 |
% |
7. |
Waiver was
less than 0.005%. |
8. |
Portfolio
turnover is calculated at the fund level and is not annualized for periods
less than one year, if applicable. |
16 Invesco
Oppenheimer Developing Markets Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
Two Months Ended October 31, 2019
|
|
Period Ended August 31, 2019 1
|
Class R5
|
Per Share Operating Data
|
|
|
|
|
|
|
|
|
|
|
Net asset value ,
beginning of period |
|
|
$ |
42.08
|
|
|
|
$ |
41.26
|
|
Income (loss) from investment
operations: |
|
|
|
|
|
|
|
|
|
|
Net investment income
2
|
|
|
|
0.08 |
|
|
|
|
0.09 |
|
Net realized and unrealized gain
|
|
|
|
2.17 |
|
|
|
|
0.73 |
|
Total from investment operations
|
|
|
|
2.25 |
|
|
|
|
0.82 |
|
Dividends and/or distributions
to shareholders: |
|
|
|
|
|
|
|
|
|
|
Dividends from net investment
income |
|
|
|
0.00 |
|
|
|
|
0.00 |
|
Distributions from net realized
gain |
|
|
|
0.00 |
|
|
|
|
0.00 |
|
Total dividends and/or
distributions to shareholders |
|
|
|
0.00 |
|
|
|
|
0.00 |
|
Net asset value , end of
period |
|
|
$ |
44.33
|
|
|
|
$ |
42.08
|
|
Total Return, at Net Asset
Value 3
|
|
|
|
5.35 |
% |
|
|
|
1.99 |
% |
Ratios/Supplemental Data
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of period (in
thousands) |
|
|
$ |
6,006
|
|
|
|
$ |
10 |
|
Average net assets (in thousands)
|
|
|
|
3,490
|
|
|
|
|
11 |
|
Ratios to average net assets:
4
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
|
1.16 |
% |
|
|
|
0.74 |
% |
Expenses excluding specific
expenses listed below |
|
|
|
0.88 |
% |
|
|
|
0.87 |
% |
Interest and fees from borrowings
|
|
|
|
0.00 |
% |
|
|
|
0.00 |
% |
Total expenses 5
|
|
|
|
0.88 |
% |
|
|
|
0.87 |
% |
Expenses after payments, waivers
and/or reimbursements and reduction to custodian expenses |
|
|
|
0.88
|
% 6
|
|
|
|
0.87
|
% 6
|
Portfolio turnover rate
7
|
|
|
|
7 |
% |
|
|
|
28 |
% |
1. |
For the
period from after the close of business on May 24, 2019 (inception of
offering) to August 31, 2019. |
2. |
Per share
amounts calculated based on the average shares outstanding during the
period. |
3. |
Includes
adjustments in accordance with accounting principles generally accepted in
the United States of America and as such, the net asset value for
financial reporting purposes and the returns based upon those net asset
values may differ from the net asset value and returns for shareholder
transactions. Does not include sales charges and is not annualized for
periods less than one year, if applicable. |
4. |
Annualized
for periods less than one full year. |
5. |
Total
expenses including indirect expenses from affiliated fund fees and
expenses were as follows: |
|
|
|
|
|
Two Months Ended October 31,
2019 |
|
|
0.88 |
% |
Period Ended August 31, 2019
|
|
|
0.87 |
% |
6. |
Waiver was
less than 0.005%. |
7. |
Portfolio
turnover is calculated at the fund level and is not annualized for periods
less than one year, if applicable. |
17 Invesco
Oppenheimer Developing Markets Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Two Months Ended October 31, 2019
|
|
Year Ended
August 31, |
Class R6 |
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
Per Share Operating Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value ,
beginning of period |
|
|
$ |
41.52
|
|
|
|
$ |
41.52
|
|
|
|
$ |
41.01
|
|
|
|
$ |
33.09
|
|
|
|
$ |
29.77
|
|
|
|
$ |
40.94
|
|
Income (loss) from investment
operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
1
|
|
|
|
0.09 |
|
|
|
|
0.31 |
|
|
|
|
0.23 |
|
|
|
|
0.31 |
|
|
|
|
0.26 |
|
|
|
|
0.34 |
|
Net realized and unrealized gain
(loss) |
|
|
|
2.14 |
|
|
|
|
(0.01
|
) |
|
|
|
0.59 |
|
|
|
|
7.84 |
|
|
|
|
3.36 |
|
|
|
|
(10.61
|
) |
Total from investment operations
|
|
|
|
2.23 |
|
|
|
|
0.30 |
|
|
|
|
0.82 |
|
|
|
|
8.15 |
|
|
|
|
3.62 |
|
|
|
|
(10.27
|
) |
Dividends and/or distributions
to shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends from net investment
income |
|
|
|
0.00 |
|
|
|
|
(0.30
|
) |
|
|
|
(0.31
|
) |
|
|
|
(0.23
|
) |
|
|
|
(0.30
|
) |
|
|
|
(0.30
|
) |
Distributions from net realized
gain |
|
|
|
0.00 |
|
|
|
|
0.00 |
|
|
|
|
0.00 |
|
|
|
|
0.00 |
|
|
|
|
0.00 |
|
|
|
|
(0.60
|
) |
Total dividends and/or
distributions to shareholders |
|
|
|
0.00 |
|
|
|
|
(0.30
|
) |
|
|
|
(0.31
|
) |
|
|
|
(0.23
|
) |
|
|
|
(0.30
|
) |
|
|
|
(0.90
|
) |
Net asset value , end of
period |
|
|
$ |
43.75
|
|
|
|
$ |
41.52
|
|
|
|
$ |
41.52
|
|
|
|
$ |
41.01
|
|
|
|
$ |
33.09
|
|
|
|
$ |
29.77
|
|
Total Return, at Net Asset
Value 2
|
|
|
|
5.37 |
% |
|
|
|
0.77 |
% |
|
|
|
2.00 |
% |
|
|
|
24.84
|
% |
|
|
|
12.22
|
% |
|
|
|
(25.50
|
)% |
Ratios/Supplemental Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of period (in
thousands) |
|
|
$ |
17,106,921
|
|
|
|
$ |
16,224,242
|
|
|
|
$ |
13,987,540
|
|
|
|
$ |
11,559,582
|
|
|
|
$ |
7,861,500
|
|
|
|
$ |
6,201,064
|
|
Average net assets (in thousands)
|
|
|
|
16,548,066
|
|
|
|
|
15,072,069
|
|
|
|
|
13,484,000
|
|
|
|
|
9,305,452
|
|
|
|
|
6,593,711
|
|
|
|
|
6,961,648
|
|
Ratios to average net assets:
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
|
1.21 |
% |
|
|
|
0.75 |
% |
|
|
|
0.55 |
% |
|
|
|
0.87 |
% |
|
|
|
0.87 |
% |
|
|
|
0.95 |
% |
Expenses excluding specific
expenses listed below |
|
|
|
0.83 |
% |
|
|
|
0.86 |
% |
|
|
|
0.87 |
% |
|
|
|
0.88 |
% |
|
|
|
0.88 |
% |
|
|
|
0.87 |
% |
Interest and fees from borrowings
|
|
|
|
0.00 |
% |
|
|
|
0.00
|
% 4
|
|
|
|
0.00
|
% 4
|
|
|
|
0.00
|
% 4
|
|
|
|
0.00
|
% 4
|
|
|
|
0.00
|
% 4
|
Total expenses 5
|
|
|
|
0.83 |
% |
|
|
|
0.86 |
% |
|
|
|
0.87 |
% |
|
|
|
0.88 |
% |
|
|
|
0.88 |
% |
|
|
|
0.87 |
% |
Expenses after payments, waivers
and/or reimbursements and reduction to custodian expenses |
|
|
|
0.83
|
% 6
|
|
|
|
0.86
|
% 6
|
|
|
|
0.87
|
% 6
|
|
|
|
0.88
|
% 6
|
|
|
|
0.88
|
% 6
|
|
|
|
0.86 |
% |
Portfolio turnover rate
7
|
|
|
|
7 |
% |
|
|
|
28 |
% |
|
|
|
36 |
% |
|
|
|
33 |
% |
|
|
|
18 |
% |
|
|
|
36 |
% |
1. |
Per share
amounts calculated based on the average shares outstanding during the
period. |
2. |
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. |
3. |
Annualized
for periods less than one full year. |
5. |
Total
expenses including indirect expenses from affiliated fund fees and
expenses were as follows: |
|
|
|
|
|
Two Months Ended October 31,
2019 |
|
|
0.83 |
% |
Year Ended August 31, 2019
|
|
|
0.86 |
% |
Year Ended August 31, 2018
|
|
|
0.87 |
% |
Year Ended August 31, 2017
|
|
|
0.88 |
% |
Year Ended August 31, 2016
|
|
|
0.88 |
% |
Year Ended August 31, 2015
|
|
|
0.87 |
% |
6. |
Waiver was
less than 0.005%. |
7. |
Portfolio
turnover is calculated at the fund level and is not annualized for periods
less than one year, if applicable. |
18 Invesco
Oppenheimer Developing Markets Fund
In
addition to the Fund(s), the Adviser serves as investment adviser to many other
Invesco mutual funds that are offered to retail investors and certain eligible
investors who are permitted to purchase Class R5 shares (prior to September 24,
2012, Class R5 shares were known as Institutional Class shares) and Class R6
shares (Invesco Funds or 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 Employer Sponsored 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. 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 access,”
then click on “Account Access” under “Accounts & Services.” 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.
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, (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 reduced 1
|
■
No initial sales charge
|
■
No initial sales charge
|
■
No initial sales charge
|
■
No initial sales charge
|
■
CDSC on certain redemptions
1
|
■
CDSC on redemptions within
one year 3
|
■
No CDSC |
■
No CDSC |
■
No CDSC |
■
12b-1 fee of up to 0.25%
2
|
■
12b-1 fee of up to 1.00%
4
|
■
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. 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 |
|
■
Purchase maximums apply
|
■
Intended for Employer
Sponsored Retirement and Benefit Plans |
|
■
Special eligibility
requirements and investment minimums apply (see “Share Class Eligibility –
Class R5 and R6 shares” below) |
1
|
Invesco
Conservative Income Fund, Invesco Oppenheimer Short Term Municipal Fund
and Invesco Oppenheimer Ultra-Short Duration Fund do not have initial
sales charges or CDSCs on redemptions. |
2
|
Class
A2 shares of Invesco Limited Term Municipal Income Fund and Investor Class
shares of Invesco Government Money Market Fund, Invesco Premier Portfolio,
Invesco Premier Tax-Exempt Portfolio and Invesco Premier U.S. Government
Money Portfolio and Class A shares of Invesco Oppenheimer Ultra-Short
Duration Fund 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
|
CDSC
does not apply to redemption of Class C shares of Invesco Short Term Bond
Fund unless you received Class C shares of Invesco Short Term Bond Fund
through an exchange from Class C shares from another Invesco Fund that is
still subject to a CDSC. |
4
|
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.
|
A-1
The Invesco Funds
MCF—12/19
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 European Growth Fund, Invesco Gold
& Precious Metals Fund, Invesco Health Care Fund, Invesco High Yield
Fund, Invesco Income Fund, Invesco International Core Equity Fund, Invesco
Low Volatility Equity Yield 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, Invesco
Premier Tax-Exempt 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 Balanced-Risk Retirement Funds and Invesco Government
Money Market Fund; |
■
|
Class CX
shares: Invesco Balanced-Risk Retirement Funds and Invesco Government
Money Market Fund; |
■
|
Class RX
shares: Invesco Balanced-Risk Retirement Funds; |
■
|
Class
P shares: Invesco Summit Fund; |
■
|
Class
S shares: Invesco Charter Fund, Invesco Conservative Allocation Fund,
Invesco Growth Allocation Fund, Invesco Moderate Allocation Fund, Invesco
Oppenheimer Portfolio Series: Moderate Investor Fund and Invesco Summit
Fund; and |
■
|
Invesco
Cash Reserve Shares: Invesco Government Money Market Fund and Invesco
Oppenheimer Government Money Market Fund. |
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. 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,
CX and RX Shares
Class AX,
CX and RX shares are closed to new investors. Only investors who have
continuously maintained an account in Class AX, CX or RX of a specific Fund
may make additional purchases into Class AX, CX and RX, respectively, of
such specific Fund. All references in this “Shareholder Account Information”
section of this Prospectus to Class A, C or R shares of the Invesco Funds
shall include Class AX (excluding Invesco Government Money Market Fund),
CX, or RX shares, respectively, of the Invesco Funds, unless otherwise noted.
All references in this “Shareholder Account Information” section of this
Prospectus to Invesco Cash Reserve Shares of Invesco Government Money Market
Fund shall include Class AX shares of Invesco Government Money Market Fund,
unless otherwise noted.
Class P
Shares
In
addition to the other share classes discussed herein, the Invesco Summit Fund
offers Class P shares, which were historically sold only through the AIM
Summit Investors Plans I and II (each a Plan and, collectively, the Summit
Plans). Class P shares are sold with no initial sales charge and have a
12b-1 fee of 0.10%. However, Class P shares are not sold to members of
the
general public. Only shareholders who had accounts in the Summit Plans at the
close of business on December 8, 2006 may purchase Class P shares and
only until the total of their combined investments in the Summit Plans and in
Class P shares directly equals the face amount of their former Plan under
the 30 year extended investment option. The face amount of a Plan is the
combined total of all scheduled monthly investments under the Plan. For a Plan
with a scheduled monthly investment of $100.00, the face amount would have been
$36,000.00 under the 30 year extended investment option.
Class R
Shares
Class R
shares are intended for Employer Sponsored Retirement and Benefit Plans. If you
received Class R shares as a result of a merger or reorganization of a
predecessor fund into any of the Funds, you will be permitted to make additional
Class R shares purchases.
Class
R5 and R6 Shares
Class
R5 and R6 shares of the Funds (except for the Invesco Oppenheimer Master
Event-Linked Bond Fund, Invesco Oppenheimer Master Inflation Protected
Securities Fund and Invesco Oppenheimer Master Loan Fund) are available for use
by Employer Sponsored Retirement and Benefit Plans, held either at the plan
level or through omnibus accounts, that generally process no more than one net
redemption and one net purchase transaction each day.
Class
R5 and R6 shares of the Funds are also available to institutional investors.
Institutional investors are: banks, trust companies, collective trust funds,
entities acting for the account of a public entity (e.g., Taft-Hartley funds,
states, cities or government agencies), funds of funds or other pooled
investment vehicles, 529 college savings plans, financial intermediaries and
corporations investing for their own accounts, endowments and foundations. For
information regarding investment minimums for Class R5 and R6 shares, please see
“Minimum Investments” below.
Class
R6 shares of the Funds are also available through an intermediary that has
agreed with Invesco Distributors, Inc. to make such shares available for use in
retail omnibus accounts that generally process no more than one net redemption
and one net purchase transaction each day. 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.
|
The
Invesco Oppenheimer Master Event-Linked Bond Fund, Invesco Oppenheimer Master
Inflation Protected Securities Fund and Invesco Oppenheimer Master Loan Fund are
only available for purchase by other Funds in the Invesco fund family and other
Invesco pooled investment vehicles.
Shareholders
eligible to purchase Class R6 Shares must meet the requirements specified by
their intermediary. Not all intermediaries offer Class R6 Shares to their
customers.
Class S
Shares
Class S
shares are limited to investors who purchase shares with the proceeds received
from a systematic contractual investment plan redemption within the
12 months prior to purchasing Class S shares, and who purchase through
an approved financial intermediary that has an agreement with the distributor to
sell Class S shares. Class S shares are not otherwise sold to members
of the general public. An investor purchasing Class S shares will not pay
an initial sales charge. The investor will no longer be eligible to purchase
additional Class S shares at that point where the value of the
contributions to the prior systematic contractual investment plan combined with
the subsequent Class S share contributions equals the face amount of what
would have been the investor’s systematic contractual investment plan under the
30-year investment option. The face amount of a systematic contractual
investment plan is the combined total of all scheduled monthly investments under
that plan. For a plan with a scheduled monthly investment of $100.00, the face
amount would have been $36,000.00 under the 30-year extended investment option.
Class Y
Shares
Class
Y shares are available to (i) investors who purchase through an account that is
charged an asset-based fee or commission by a financial intermediary, including
through brokerage platforms, where a broker is acting as the investor’s agent,
that may require the payment by the investor of a commission and/or other form
of compensation to that broker, (ii) endowments, foundations, or Employer
Sponsored Retirement and Benefit Plans (with the exception of “Solo 401(k)”
Plans and 403(b) custodial accounts held directly at Invesco), (iii) banks or
bank trust departments acting on their own behalf or as trustee or manager for
trust accounts, or (iv) any current, former or retired trustee, director,
officer or employee (or immediate family members of a current, former or retired
trustee, director, officer or employee) of any Invesco Fund or of Invesco Ltd.
or any of its subsidiaries.
Subject
to any conditions or limitations imposed on the servicing of Class Y shares by
your financial adviser, if you received Class Y shares as a result of a merger
or reorganization of a predecessor fund into any of the Funds, you will be
permitted to make additional Class Y share purchases. In addition, you will be
permitted to make additional Class Y shares purchases if you owned Class Y
shares in a “Solo 401(k)” Plan or 403(b) custodial account held directly at
Invesco if you held such shares in your account on or prior to May 24, 2019.
Investor
Class Shares
Investor
Class shares are sold with no initial sales charge and have a maximum 12b-1 fee
of 0.25%. Only the following persons may purchase Investor Class shares:
■
|
Investors
who established accounts prior to April 1, 2002, in Investor Class shares
with Invesco Distributors, Inc. (Invesco Distributors) who have
continuously maintained an account in Investor Class shares (this includes
anyone listed in the registration of an account, such as a joint owner,
trustee or custodian, and immediate family members of such persons)
without a designated intermediary. These investors are referred to as
“Investor Class grandfathered investors.” |
■
|
Customers
of a financial intermediary that has had an agreement with the Funds’
distributor or any Funds that offered Investor Class shares prior to
April 1, 2002, that has continuously maintained such agreement. These
intermediaries are referred to as “Investor Class grandfathered
intermediaries.” |
■
|
Any
current, former or retired trustee, director, officer or employee (or
immediate family member of a current, former or retired trustee, director,
officer or employee) of any Invesco Fund or of Invesco Ltd. or any of its
subsidiaries. |
For
additional shareholder eligibility requirements with respect to Invesco Premier
Portfolio, please see “Shareholder Account Information – Purchasing Shares and
Shareholder Eligibility – Invesco Premier Portfolio.”
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
Money Market Fund, Investor Class shares. |
■
|
Premier
Portfolio, Investor Class shares. |
■
|
Premier
U.S. Government Money Portfolio, Investor Class shares. |
■
|
Premier
Tax-Exempt 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.
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, Invesco Oppenheimer Government Cash Reserves
Fund, Invesco Oppenheimer Short Term Municipal Fund and Invesco Oppenheimer
Ultra-Short Duration 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
|
... |
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
whether you purchase your shares directly from the Fund or through a financial
intermediary. 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, 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 or discounts.
For waivers and discounts not available through a particular intermediary,
shareholders will have to purchase Fund shares directly from the Fund or through
another intermediary to receive these waivers or discounts.
The
following types of investors may purchase Class A shares without paying an
initial sales charge:
■
|
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:
|
■
|
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 Oppenheimer 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 Oppenheimer
Main Street Fund may exchange if permitted by the intermediary’s policies.
|
In
addition, investors may acquire Class A shares without paying an initial
sales charge in connection with:
■
|
reinvesting
dividends and distributions; |
■
|
exchanging
shares of one Fund that were previously assessed a sales charge for shares
of another Fund; |
■
|
purchasing
shares in connection with the repayment of an Employer Sponsored
Retirement and Benefit Plan loan administered by the Funds’ transfer
agent; and |
■
|
purchasing
Class A shares with proceeds from the redemption of Class C,
Class R, Class R5, Class R6 or Class Y shares where the
redemption and purchase are effectuated on the same business day due to
the distribution of a Retirement and Benefit Plan maintained by the Funds’
transfer agent or one of its affiliates. |
Invesco
Distributors also permits certain other investors to invest in Class A
shares without paying an initial charge as a result of the investor’s current or
former relationship with the Invesco Funds. For additional information about
such eligibility, please reference the Funds’ SAI.
Shareholders
purchasing Fund shares through a Merrill Lynch platform or account will be
eligible only for the following load waivers (front-end sales charge waivers and
contingent deferred, or back-end, sales charge waivers) and discounts, which may
differ from those disclosed elsewhere in this Fund’s prospectus or SAI.
■
|
Front-end
Sales Load Waivers on Class A Shares available at Merrill Lynch
|
■
|
Employer-sponsored
retirement, deferred compensation and employee benefit plans (including
health savings accounts) and trusts used to fund those plans, provided
that the shares are not held in a commission-based brokerage account and
shares are held for the benefit of the plan; |
■
|
Shares
purchased by or through a 529 Plan; |
■
|
Shares
purchased through a Merrill Lynch affiliated investment advisory program;
|
■
|
Shares
purchased by third party investment advisors on behalf of their advisory
clients through Merrill Lynch’s platform; |
■
|
Shares
of funds purchased through the Merrill Edge Self-Directed platform (if
applicable); |
■
|
Shares
purchased through reinvestment of capital gains distributions and dividend
reinvestment when purchasing shares of the same fund (but not any other
fund within the fund family); |
■
|
Shares
converted from Class C ( i.e.
level-load) shares of the same fund in the month of or following
the 10-year anniversary of the purchase date; |
■
|
Employees
and registered representatives of Merrill Lynch or its affiliates and
their family members; |
■
|
Directors
or Trustees of the Fund, and employees of the Fund’s investment adviser or
any of its affiliates, as described in this prospectus; and |
■
|
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).
|
■
|
CDSC
Waivers on A and C Shares available at Merrill Lynch
|
■
|
Death
or disability of the shareholder; |
■
|
Shares
sold as part of a systematic withdrawal plan as described in the Fund’s
prospectus; |
■
|
Return
of excess contributions from an IRA Account; |
■
|
Shares
sold as part of a required minimum distribution for IRA and retirement
accounts due to the shareholder reaching age 70 1
⁄ 2 ;
|
■
|
Shares
sold to pay Merrill Lynch fees but only if the transaction is initiated by
Merrill Lynch; |
■
|
Shares
acquired through a right of reinstatement; and |
■
|
Shares
held in retirement brokerage accounts, that are converted to a lower cost
share class due to transfer to a fee based account or platform (applicable
to A and C shares only). |
■
|
Front-end
load Discounts Available at Merrill Lynch: Breakpoints, Rights of
Accumulation & Letters of Intent |
■
|
Breakpoints
as described in this prospectus; |
■
|
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts
will be automatically calculated based on the aggregated holding of fund
family assets held by accounts within the purchaser’s household at Merrill
Lynch. Eligible fund family assets not held at Merrill Lynch may be
included in the ROA calculation only if the shareholder notifies his or
her financial advisor about such assets; and |
■
|
Letters
of Intent (LOI) which allow for breakpoint discounts based on anticipated
purchases within a fund family, through Merrill Lynch, over a 13-month
period of time (if applicable). |
Shareholders
purchasing Fund shares through an Ameriprise Financial platform or account will
be eligible for the following front-end sales charge waivers and discounts with
respect to Class A shares, 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 an Ameriprise Financial investment advisory program (if
an Advisory or similar share class for such investment advisory program is
not available). |
■
|
Shares
purchased by third party investment advisors on behalf of their advisory
clients through Ameriprise Financial’s platform (if an Advisory or similar
share class for such investment advisory program is not available). |
■
|
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 10-year anniversary of the purchase date. To the extent that
this prospectus elsewhere provides for a waiver with respect to such
shares following a shorter holding period, that waiver will apply to
exchanges following such shorter period. To the extent that this
prospectus elsewhere provides for a waiver with respect to exchanges of
Class C shares for load waived shares, that waiver will also apply to such
exchanges. |
■
|
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). |
■
|
Automatic
Exchange of Class C shares |
■
|
Class
C shares will automatically exchange to Class A shares in the month of the
10-year anniversary of the purchase date. |
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. |
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 age 70 1
⁄ 2 as
described in the fund’s prospectus. |
■
|
Shares
sold to pay Raymond James fees but only if the transaction is initiated by
Raymond James. |
■
|
Shares
acquired through a right of reinstatement. |
■
|
Front-end
load discounts available at Raymond James: breakpoints, rights of
accumulation, and/or letters of intent |
■
|
Breakpoints
as described in this prospectus. |
■
|
Rights
of accumulation which entitle shareholders to breakpoint discounts will be
automatically calculated based on the aggregated holding of fund family
assets held by accounts within the purchaser’s
|
|
household
at Raymond James. Eligible fund family assets not held at Raymond James
may be included in the rights of accumulation 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 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. |
The
Funds may terminate or amend the terms of these waivers or discounts at any
time.
Qualifying
for Reduced Sales Charges and Sales Charge Exceptions
The
following types of accounts qualify for reduced sales charges or sales charge
exceptions under ROAs and LOIs:
1.
|
an
individual account owner; |
2.
|
immediate
family of the individual account owner (which includes the individual’s
spouse or domestic partner; the individual’s children, step-children or
grandchildren; the spouse or domestic partner of the individual’s
children, step-children or grandchildren; the individual’s parents and
step-parents; the parents or step-parents of the individual’s spouse or
domestic partner; the individual’s grandparents; and the individual’s
siblings); |
3.
|
a
Retirement and Benefit Plan so long as the plan is established exclusively
for the benefit of an individual account owner; and |
4.
|
a
Coverdell Education Savings Account (Coverdell ESA), maintained pursuant
to Section 530 of the Code (in either case, the account must be
established by an individual account owner or have an individual account
owner named as the beneficiary thereof). |
Alternatively,
an Employer Sponsored Retirement and Benefit Plan or Employer Sponsored IRA may
be eligible to purchase shares pursuant to a ROA at the plan level, and receive
a reduced applicable initial sales charge for a new purchase based on the total
value of the current purchase and the value of other shares owned by the plan’s
participants if:
a)
|
the
employer or plan sponsor submits all contributions for all participating
employees in a single contribution transmittal (the Invesco Funds will not
accept separate contributions submitted with respect to individual
participants); |
b)
|
each
transmittal is accompanied by checks or wire transfers; and |
c)
|
if
the Invesco Funds are expected to carry separate accounts in the names of
each of the plan participants, (i) the employer or plan sponsor
notifies Invesco Distributors or its designee in writing that the separate
accounts of all plan participants should be linked, and (ii) all new
participant accounts are established by submitting an appropriate Account
Application on behalf of each new participant with the contribution
transmittal. |
Participant
accounts in a retirement plan that are eligible to purchase shares pursuant to a
ROA at the plan level may not also be considered eligible to do so for the
benefit of an individual account owner.
In
all instances, it is the purchaser’s responsibility to notify Invesco
Distributors or its designee of any relationship or other facts qualifying the
purchaser as eligible for reduced sales charges and/or sales charge exceptions
and to provide all necessary documentation of such facts in order to qualify for
reduced sales charges or sales charge exceptions. For additional information on
linking accounts to qualify for ROA or LOI, please see the Funds’ SAI.
Purchases
of Class A shares of Invesco Conservative Income Fund, Invesco Oppenheimer
Government Cash Reserves Fund, Invesco Oppenheimer Ultra-Short Duration Fund and
Invesco Oppenheimer Short Term Municipal Fund, Invesco Cash Reserve Shares of
Invesco Government Money Market Fund and Invesco Oppenheimer Government Money
Market Fund, 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.
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, Invesco Oppenheimer Short Term
Municipal Fund and Invesco Oppenheimer Ultra-Short Duration 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 of Invesco Government Money Market Fund
or of Invesco Oppenheimer Government Money Market Fund 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. If you redeem your shares during the first year
since your purchase has been made you will be assessed a 1% CDSC, 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
While
Class C shares of Invesco Short Term Bond Fund are not subject to a CDSC, if you
acquired shares of Invesco Short Term Bond Fund through an exchange, and the
shares originally purchased were subject to a CDSC, the shares acquired as a
result of the exchange will continue to be subject to that same CDSC.
Conversely, 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, 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
C shares of Invesco Short Term Bond Fund |
■
|
Class
A2 shares of Invesco Short Duration Inflation Protected Fund and Invesco
Limited Term Municipal Income Fund |
■
|
Invesco
Cash Reserve Shares of Invesco Government Money Market Fund and Invesco
Oppenheimer Government Money Market Fund |
■
|
Investor
Class shares of any Fund |
■
|
Class
P shares of Invesco Summit Fund |
■
|
Class
R5 and R6 shares of any Fund |
■
|
Class
S shares of Invesco Charter Fund, Invesco Conservative Allocation Fund,
Invesco Growth Allocation Fund, Invesco Moderate Allocation Fund, Invesco
Oppenheimer Portfolio Series: Moderate Investor Fund and Invesco Summit
Fund |
■
|
Class
Y shares of any Fund |
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 Tax-Exempt Portfolio
For
Invesco Premier Tax-Exempt 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 3:00 p.m.
Eastern Time on a business day. 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.
Invesco
Premier Portfolio
Only
accounts beneficially owned by natural persons will be permitted to retain their
shares. The Fund has implemented policies and procedures reasonably designed to
limit all beneficial owners of the Fund to natural persons, and investments in
the Fund are limited to accounts beneficially owned by natural persons. Natural
persons may invest in the Fund through certain tax-advantaged savings accounts,
trusts and other retirement and investment accounts, which may include, among
others: participant-directed defined contribution plans; individual retirement
accounts; simplified employee pension arrangements; simple retirement accounts;
custodial accounts; deferred compensation plans for government or tax-exempt
organization employees; Archer medical savings accounts; college savings plans;
health savings account plans; ordinary trusts and estates of natural persons; or
certain other retirement and investment accounts with ultimate investment
authority held by the natural person beneficial owner, notwithstanding having an
institutional decision maker making day-to-day decisions (e.g., a plan sponsor
in certain retirement arrangements or an investment adviser managing
discretionary investment accounts).
Further,
financial intermediaries may only submit purchase orders if they have
implemented policies and procedures reasonably designed to limit all investors
on behalf of whom they submit orders to accounts beneficially owned by natural
persons. Financial intermediaries may be required to provide a written statement
or other representation that they have in place, and operate in compliance with,
such policies and procedures prior to submitting purchase orders. Such policies
and procedures may include provisions for the financial intermediary to promptly
report to the Fund or the transfer agent the identification of any shareholder
of the Fund that does not qualify as a natural person of whom they are aware and
promptly take steps to redeem any such shareholder’s shares of the Fund upon
request by the Fund or the transfer agent, in such manner as it may reasonably
request. The Fund may involuntarily redeem any such shareholder who does not
voluntarily redeem their shares.
Natural
persons may purchase shares using one of the options below. For all classes of
the Fund, other than Investor Class shares, unless the Fund closes early on a
business day, the Fund’s transfer agent will generally accept any purchase order
placed until 5:00 p.m. Eastern Time on a business day and may accept a purchase
order placed until 5:30 p.m. Eastern Time on a business day. If you wish to
place an order between 5:00 p.m. and 5:30 p.m. Eastern Time on a business day,
you must place such order by telephone; or send your request by a pre-arranged
Liquidity Link data transmission however, the Fund’s transfer agent reserves the
right to reject or limit the amount of orders placed during this time. For
Investor Class shares of the Fund, unless the Fund closes early on a business
day, the Fund’s transfer agent will generally accept any purchase order placed
until 4:00 p.m. Eastern Time on a business day and may accept a purchase
order
placed until 4:30 p.m. Eastern Time on a business day. If you wish to place an
order between 4:00 p.m. and 4:30 p.m. Eastern Time on a business day, you must
place such order by telephone; however, the Fund’s transfer agent reserves the
right to reject or limit the amount of orders placed during this time. If the
Fund closes early on a business day, the Fund’s transfer agent must receive your
purchase order prior to such closing time. Purchase orders will not be processed
unless the account application and purchase payment are received in good order.
In accordance 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, R or S shares for fund accounts. The
minimum investments for Class A, C, 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.
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. The financial adviser or
financial intermediary should mail your completed account application to
the Funds’ transfer agent (see below “By Mail” and “By Wire”). |
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. |
|
Opening
An Account |
Adding
To An Account |
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 available methods described above. |
For
all Classes, except Class R5 and Class R6 shares, select 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 are only available for purchase through
these methods. |
Non-retirement
retail investors, including high net worth investors investing directly or
through a financial intermediary, are not eligible for Class R5 shares. IRAs and
Employer Sponsored IRAs are also not eligible for Class R5 shares. If you hold
your shares through a financial intermediary, the terms by which you purchase,
redeem and exchange shares may differ than the terms in this prospectus
depending upon the policies and procedures of your financial intermediary.
Notwithstanding the foregoing, each shareholder must still meet the Fund’s
eligibility requirements applicable to the share class to be purchased.
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.
For
Funds other than Invesco Premier Portfolio, Invesco Premier Tax-Exempt Portfolio
and Invesco Premier U.S. Government Money Portfolio, the Funds’ transfer agent
or authorized intermediary, if applicable, must receive your call during the
hours of the customary trading session of the New York Stock Exchange (NYSE) in
order to effect the redemption at that day’s net asset value. For Invesco
Premier Portfolio, Invesco Premier Tax-Exempt Portfolio and Invesco Premier U.S.
Government Money Portfolio, the Funds’ transfer agent or authorized
intermediary, if applicable, must receive your call before the Funds’ net asset
value determination in order to effect the redemption that day.
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.For Class R5 and R6
shares, redemption proceeds will be sent in accordance with the wire
instructions specified in the account application provided to the Funds’
transfer agent. The Funds’ transfer agent must receive your financial
adviser’s or financial intermediary’s call before the close of the
customary trading session of the New York Stock Exchange (NYSE) on days
the NYSE is open for business in order to effect the redemption at that
day’s closing price. 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:
|
How to Redeem Shares |
|
■
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. A person who has been authorized in the account
application to effect transactions may make redemptions by telephone. You
must call the Funds’ transfer agent before the close of the customary
trading session of the NYSE on days the NYSE is open for business in order
to effect the redemption at that day’s closing price. |
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 are only available to be redeemed
through these methods. |
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 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.” Invesco Floating Rate Fund has a
revolving line of credit 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 Oppenheimer Government Money Market Fund 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
Oppenheimer Government Cash Reserves Fund, Invesco Oppenheimer Government Money
Market Fund, Invesco Premier Portfolio, Invesco Premier Tax-Exempt Portfolio and
Invesco Premier U.S. Government Money Portfolio, in the event that the Fund, at
the end of a business day, has invested less than 10% of its total assets in
weekly liquid assets or, with respect to the retail and government money market
funds, the Fund’s price per share as computed for the purpose of distribution,
redemption and repurchase, rounded to the nearest 1%, has deviated from the
stable price established by the Fund’s Board of Trustees (“Board”) or the Board,
including a majority of trustees who are not interested persons as defined in
the 1940 Act, determines that such a deviation is likely to occur, and the
Board, including a majority of trustees who are not interested persons of the
Fund, irrevocably has approved the liquidation of the Fund, the Fund’s Board has
the authority to suspend redemptions of Fund shares.
Liquidity
Fees and Redemption Gates
For
Invesco Premier Portfolio and Invesco Premier Tax-Exempt Portfolio, if the
Fund’s weekly liquid assets fall below 30% of its total assets, the Board, in
its discretion, may impose liquidity fees of up to 2% of the value of the shares
redeemed and/or suspend redemptions (redemption gates). In addition, if any such
Fund’s weekly liquid assets falls below 10% of its total
assets
at the end of any business day, the Fund must impose a 1% liquidity fee on
shareholder redemptions unless the Board determines that not doing so is in the
best interests of the Fund.
Liquidity
fees and redemption gates are most likely to be imposed, if at all, during times
of extraordinary market stress. In the event that a liquidity fee or redemption
gate is imposed, the Board expects that for the duration of its implementation
and the day after which such gate or fee is terminated, the Fund would strike
only one net asset value per day, at the Fund’s last scheduled net asset value
calculation time.
The
imposition and termination of a liquidity fee or redemption gate will be
reported by a Fund to the SEC on Form N-CR. Such information will also be
available on the Fund’s website. In addition, a Fund will communicate such
action through a supplement to its registration statement and may further
communicate such action through a press release or by other means. If a
liquidity fee is applied by the Board, it will be charged on all redemption
orders submitted after the effective time of the imposition of the fee by the
Board. Liquidity fees would reduce the amount you receive upon redemption of
your shares. In the event a Fund imposes a redemption gate, the Fund or any
financial intermediary on its behalf will not accept redemption requests until
the Fund provides notice that the redemption gate has been terminated.
Redemption
requests submitted while a redemption gate is imposed will be cancelled without
further notice. If shareholders still wish to redeem their shares after a
redemption gate has been lifted, they will need to submit a new redemption
request.
Liquidity
fees and redemption gates will generally be used to assist a Fund to help
preserve its market–based NAV per share. It is possible that a liquidity fee
will be returned to shareholders in the form of a distribution. The Board may,
in its discretion, terminate a liquidity fee or redemption gate at any time if
it believes such action to be in the best interest of a Fund. Also, liquidity
fees and redemption gates will automatically terminate at the beginning of the
next business day once a Fund’s weekly liquid assets reach at least 30% of its
total assets. Redemption gates may only last up to 10 business days in any
90-day period. When a fee or a gate is in place, the Fund may elect not to
permit the purchase of shares or to subject the purchase of shares to certain
conditions, which may include affirmation of the purchaser’s knowledge that a
fee or a gate is in effect. When a fee or a gate is in place, shareholders will
not be permitted to exchange into or out of a Fund.
There
is some degree of uncertainty with respect to the tax treatment of liquidity
fees received by a Fund, and such tax treatment may be the subject to future IRS
guidance. If a Fund receives liquidity fees, it will consider the appropriate
tax treatment of such fees to the Fund at such time.
Financial
intermediaries are required to promptly take the steps requested by the Funds or
their designees to impose or help to implement a liquidity fee or redemption
gate as requested from time to time, including the rejection of orders due to
the imposition of a fee or gate or the prompt re-confirmation of orders
following a notification regarding the implementation of a fee or gate. If a
liquidity fee is imposed, these steps are expected to include the submission of
separate, rather than combined, purchase and redemption orders from the time of
the effectiveness of the liquidity fee or redemption gate and the submission of
such order information to the Fund or its designee prior to the next calculation
of a Fund’s net asset value. Unless otherwise agreed to between a Fund and
financial intermediary, the Fund will withhold liquidity fees on behalf of
financial intermediaries. With regard to such orders, a redemption request that
a Fund determines in its sole discretion has been received in good order by the
Fund or its designated agent prior to the imposition of a liquidity fee or
redemption gate may be paid by the Fund despite the imposition of a redemption
gate or without the deduction of a liquidity fee. If a liquidity fee is imposed
during the day, an intermediary who receives both purchase and redemption orders
from a single account holder is not required to net the purchase and redemption
orders. However, the intermediary is permitted to apply the liquidity fee to the
net amount of redemptions (even if the purchase order was received prior to the
time the liquidity fee was imposed).
Where
a Financial Intermediary serves as a Fund’s agent for the purpose of receiving
orders, trades that are not transmitted to the Fund by the Financial
Intermediary before the time required by the Fund or the transfer agent may, in
the Fund’s discretion, be processed on an as-of basis, and any cost or loss to
the Fund or transfer agent or their affiliates, from such transactions shall be
borne exclusively by the Financial Intermediary.
Systematic
Withdrawals (Available for all classes except Class R5 and R6 shares)
You
may arrange for regular periodic withdrawals from your account in amounts equal
to or greater than $50 per Fund. The Funds’ transfer agent will redeem the
appropriate number of shares from your account to provide redemption proceeds in
the amount requested. You must have a total account balance of at least $5,000
in order to establish a Systematic Redemption Plan, unless you are establishing
a Required Minimum Distribution for a Retirement and Benefit Plan. You can stop
this plan at any time by giving ten days’ prior notice to the Funds’ transfer
agent.
Check
Writing
The
Funds’ transfer agent provides check writing privileges for accounts in the
following Funds and share classes:
■
|
Invesco
Government Money Market Fund, Invesco Cash Reserve Shares, Class AX
shares, Class Y shares and Investor Class shares |
■
|
Invesco
Oppenheimer Government Cash Reserves Fund, Class A shares and Class Y
shares |
■
|
Invesco
Oppenheimer Government Money Market Fund, Invesco Cash Reserve Shares and
Class Y shares |
■
|
Invesco
Premier Portfolio, Investor Class shares |
■
|
Invesco
Premier Tax-Exempt Portfolio, Investor Class shares |
■
|
Invesco
Premier U.S. Government Money Portfolio, Investor Class shares
|
You
may redeem shares of these Funds by writing checks in amounts of $250 or more if
you have subscribed to the service by completing a Check Writing authorization
form.
Check
writing privileges are not available for Retirement and Benefit Plans. Checks
are not eligible to be converted to ACH by the payee. You may not give
authorization to a payee by phone to debit your account by ACH for a debt owed
to the payee.
If
you do not have a sufficient number of shares in your account to cover the
amount of the check and any applicable deferred sales charge, the check will be
returned and no shares will be redeemed. Because it is not possible to determine
your account’s value in advance, you should not write a check for the entire
value of your account or try to close your account by writing a check.
A
check writing redemption request which is verifiably submitted to a Fund’s agent
before a liquidity fee or redemption gate is imposed will be considered a valid
redemption and will be processed normally.
Signature
Guarantees
The
Funds’ transfer agent requires a signature guarantee in the following
circumstances:
■
|
When
your redemption proceeds exceed $250,000 per Fund. |
■
|
When
you request that redemption proceeds be paid to someone other than the
registered owner of the account. |
■
|
When
you request that redemption proceeds be sent somewhere other than the
address of record or bank of record on the account. |
■
|
When
you request that redemption proceeds be sent to a new address or an
address that changed in the last 15 days. |
The
Funds’ transfer agent will accept a guarantee of your signature by a number of
different types of financial institutions. Call the Funds’ transfer agent for
additional information. Some institutions have transaction amount maximums for
these guarantees. Please check with the guarantor institution to determine
whether the signature guarantee offered will be sufficient to cover the value of
your transaction request.
Redemptions
in Kind
Although
the Funds generally intend to pay redemption proceeds solely in cash, the Funds
reserve the right to determine, in their sole discretion,
whether
to satisfy redemption requests by making payment in securities or other property
(known as a redemption in kind). Redemptions in kind may result in transaction
costs and/or market fluctuations associated with liquidating or holding the
securities, respectively.
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.
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 (Available 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 Employer Sponsored Retirement and Benefit
Plans.
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
RX |
Class
R, RX |
... |
Class
R5 |
Class
R5 |
... |
Class
R6 |
Class
R6 |
... |
Class
Y |
Class
Y* |
|
|
* You may exchange Class Y shares of Invesco Oppenheimer
Government Money Market Fund for Class A shares of any other Fund. If you
exchange Class Y shares of Invesco Oppenheimer Government Money Market
Fund for Class A shares of any other Fund, you may exchange those Class A
shares back into Class Y shares of Invesco Oppenheimer Government Money
Market Fund, but not Class Y shares of any other Fund.
|
Exchanges
into Invesco Senior Loan Fund
Invesco
Senior Loan Fund is a closed-end interval fund that continuously offers its
shares pursuant to the terms and conditions of its prospectus. The Adviser is
the investment adviser for the Invesco Senior Loan Fund. As with the Invesco
Funds, you generally may exchange your shares of Class A (Invesco Cash Reserve
Shares of Invesco Government Money Market Fund and Invesco Oppenheimer
Government Money Market Fund) or Class C of any Invesco Fund for shares of Class
A or Class C, respectively, of Invesco Senior Loan Fund. Please refer to the
prospectus for the Invesco Senior Loan Fund for more information, including
limitations on exchanges out of Invesco Senior Loan Fund.
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 shares of a Fund acquired by exchange of Class Y shares of Invesco
Oppenheimer Government Money Market Fund cannot be exchanged for Class Y
shares of any Fund, except Class Y shares of Invesco Oppenheimer
Government Money Market Fund. |
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 on 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 ten 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, the
Fund’s Class C and Class CX shares would be eligible to automatically convert
into the Fund’s Invesco Cash Reserve Share Class (the Conversion Feature). The
automatic conversion pursuant to the Conversion Feature will generally occur at
the end of the month following the tenth anniversary after a purchase of Class C
or Class CX shares (the Conversion Date).
Automatic
conversions pursuant to the Conversion Feature will be on the basis of the NAV
per share, without the imposition of any sales charge (including a CDSC), fee or
other charge. All such automatic conversions of Class C and Class CX shares will
constitute tax-free exchanges for federal income tax purposes.
Class
C and Class CX shares of a Fund acquired through a reinvestment of dividends and
distributions will convert to Class A and Class AX shares, respectively, of the
Fund (or Invesco Cash Reserve shares for Invesco Government Money Market Fund)
on the Conversion Date pro rata with the converting Class C and Class CX shares
of that Fund that were not acquired through reinvestment of dividends and
distributions.
Class
C or Class CX shares held through a financial intermediary in existing omnibus
Employer Sponsored Retirement and Benefit Plans and other omnibus accounts may
be converted pursuant to the Conversion Feature by the financial intermediary
once it is determined that the Class C or Class CX shares have been held for the
required holding period. It is the financial intermediary’s (and not the Fund’s)
responsibility to keep records and to ensure that the shareholder is credited
with the proper holding period as the Fund and its agents may not have
transparency into how long a shareholder has held Class C or Class CX shares for
purposes of determining whether such Class C or Class CX shares are eligible to
automatically convert pursuant to the Conversion Feature. In order to determine
eligibility for automatic conversion in these circumstances, it is the
responsibility of the shareholder or their financial intermediary to determine
that the shareholder is eligible to exercise the Conversion Feature, and the
shareholder or their financial intermediary may be required to maintain records
that substantiate the holding period of Class C or Class CX shares.
In
addition, a financial intermediary may sponsor and/or control programs or
platforms that impose a different conversion schedule or eligibility
requirements for conversions of Class C or Class CX shares. In these cases,
Class C and Class CX shares of certain shareholders may not be eligible for
automatic conversion pursuant to the Conversion Feature as described above. The
Fund has no responsibility for overseeing, monitoring or implementing a
financial intermediary’s process for determining whether a shareholder meets the
required holding period for automatic conversion. Please consult with your
financial intermediary if you have any questions regarding the Conversion
Feature.
Share
Class Conversions Not Permitted
The
following share class conversions are not permitted:
■
|
Conversions
into Class A from Class A2 of the same Fund. |
■
|
Conversions
into Class A2, Class AX, Class CX, Class P, Class RX or Class S of the
same Fund. |
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. |
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
and Invesco Conservative Income 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 procedures approved by the
Board. |
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 Oppenheimer Government Cash Reserves Fund, Invesco
Oppenheimer Government Money Market Fund, Invesco Premier Portfolio, Invesco
Premier Tax-Exempt Portfolio and Invesco Premier 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. Nonetheless, to the extent that the Fund must maintain
additional cash and/or securities with short-term durations in greater amounts
than may otherwise be required or borrow to honor redemption requests, the
Fund’s yield could be negatively impacted.
The
Board of the Invesco Conservative Income Fund does not believe that it is
appropriate to adopt any such policies and procedures for the Fund for the
following reasons:
■
|
The
Fund is offered to investors as a cash management vehicle; investors
perceive an investment in the Fund as an alternative to cash and must be
able to purchase and redeem shares regularly and frequently. |
■
|
One
of the advantages of the Fund as compared to other investment options is
liquidity. Any policy that diminishes the liquidity of the Fund will be
detrimental to the continuing operations of the Fund.
|
The
Board considered the risks of not having a specific policy that limits frequent
purchases and redemptions, and it determined that those risks are minimal,
especially in light of the reasons for not having such a policy as described
above. Nonetheless, to the extent that the Fund must maintain additional cash
and/or securities with short-term durations than may otherwise be required, the
Fund’s yield could be negatively impacted. Moreover, 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 Government Money Market Fund, Invesco Oppenheimer Government Cash
Reserves Fund, Invesco Oppenheimer Government Money Market Fund, Invesco Premier
Portfolio, Invesco Premier Tax-Exempt Portfolio and Invesco Premier U.S.
Government Money Portfolio.
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 Oppenheimer Government
Cash Reserves Fund, Invesco Oppenheimer Government Money Market Fund, Invesco
Premier Portfolio and Invesco Premier 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 Oppenheimer Government Cash Reserves Fund, Invesco
Oppenheimer Government Money Market Fund, Invesco Premier Portfolio and Invesco
Premier 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 Oppenheimer Government Cash
Reserves Fund, Invesco Oppenheimer Government Money Market Fund, Invesco Premier
Portfolio and Invesco Premier 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. Invesco Premier Tax-Exempt Portfolio values its portfolio
securities for which market quotations are readily available at market value,
and calculates its net asset values to four decimals (e.g., $1.0000). 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 unreliable because
the security is not traded frequently, trading on the security ceased before the
close of the trading market or issuer specific events occurred after the
security ceased trading or because of the passage of time between the close of
the market on which the security trades and the close of the NYSE and when the
Fund calculates its net asset value. Issuer specific events may cause the last
market quotation to be unreliable. Such events may include a merger or
insolvency, events that affect a geographical area or an industry segment, such
as political events or natural disasters, or market events, such as a
significant movement in the U.S. market. Where the Adviser determines that the
closing price of the security is stale or unreliable, the Adviser will value the
security at its fair value.
Fair
value is that amount that the owner might reasonably expect to receive for the
security upon its current sale. 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 delegated the daily determination of fair value prices to the
Adviser’s valuation committee, which acts in accordance with Board approved
policies. Fair value pricing methods and pricing services can change from time
to time as approved by the Board.
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 procedures
approved by the Board.
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, normally 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’s valuation committee will fair value the security using
procedures approved by the Board.
Short-term
Securities. Invesco Government Money Market
Fund, Invesco Oppenheimer Government Cash Reserves Fund, Invesco Oppenheimer
Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier 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. Options are valued on the basis of market quotations, if available.
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, Invesco Premier Tax-Exempt Portfolio and Invesco Premier
U.S. Government Money Portfolio, determines the net asset value of its
shares on each day the NYSE is open for business (a business day), as of the
close of the customary trading session, or earlier NYSE closing time that day.
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.
Invesco Premier Tax-Exempt Portfolio will generally determine the net asset
value of its shares at 3:00 p.m. Eastern Time on each business day. A
business day for Invesco Government Money Market Fund, Invesco Premier
Portfolio, Invesco Premier Tax-Exempt Portfolio and Invesco Premier U.S.
Government Money Portfolio is any day that (1) both the Federal Reserve Bank of
New York and a Fund’s custodian are open for business and (2) the primary
trading markets for the Fund’s portfolio instruments are open and the Fund’s
management believes there is an adequate market to meet purchase and redemption
requests. Invesco Government Money Market Fund, Invesco Premier Portfolio,
Invesco Premier Tax-Exempt 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 Oppenheimer Government Cash Reserves Fund, Invesco
Oppenheimer Government Money Market Fund, Invesco Premier Portfolio, Invesco
Premier Tax-Exempt Portfolio and Invesco Premier 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, Invesco Premier Tax-Exempt 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 Oppenheimer Government Cash Reserves Fund, Invesco
Oppenheimer Government Money Market Fund and Invesco Premier 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 Balanced-Risk Allocation Fund, Invesco Balanced-Risk Commodity Strategy
Fund, Invesco Macro Allocation Strategy Fund, Invesco Global Targeted Returns
Fund, Invesco Multi-Asset Income Fund, Invesco Oppenheimer Capital Income Fund,
Invesco Oppenheimer Global High Yield Fund, Invesco Oppenheimer Global
Multi-Asset Growth Fund, Invesco Oppenheimer Global Strategic Income Fund,
Invesco Oppenheimer Gold & Special Minerals Fund, Invesco Oppenheimer
International Bond Fund, Invesco Oppenheimer Global Allocation Fund, and Invesco
Oppenheimer Fundamental Alternatives 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
Oppenheimer Government Cash Reserves Fund, Invesco Oppenheimer Government Money
Market Fund, Invesco Premier Portfolio and Invesco Premier 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 using procedures approved by the Board. 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.
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
Oppenheimer 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 applicable U.S.
federal corporate income tax rate plus an estimated state and local income tax
rate for its future tax liability associated with that portion of MLP
distributions considered to be a tax-deferred 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 some or all 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 some or all of 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 some or all of the deferred tax asset 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, forecasts of future profitability
(which are dependent on, among other factors, future MLP cash distributions),
the duration of statutory carryforward periods and the associated risk that
operating loss carryforwards may be limited or expire unused. However, this
assessment generally may not consider the potential for market value increases
with respect to the Fund’s investments in equity securities of MLPs or any other
securities or assets. Significant weight is given to the Fund’s forecast of
future taxable income, which is based on, among other factors, the expected
continuation of MLP cash distributions at or near current levels. Consideration
is also given to the effects of the potential of additional future realized and
unrealized gains or losses on investments and the period over which deferred tax
assets can be realized, as federal tax net operating loss carryforwards do not
expire and federal capital loss carryforwards expire in five years. Recovery of
a deferred tax asset is dependent on continued payment of the MLP cash
distributions at or near current levels in the future and the resultant
generation of taxable income. The Fund will assess whether a valuation allowance
is required to offset some or all of any deferred tax asset in connection with
the calculation of the Fund’s NAV per share each day; however, to the extent the
final valuation allowance differs from the estimates the Fund used in
calculating the Fund’s daily NAV, the application of such final valuation
allowance could have a material impact on the Fund’s NAV.
The
Fund’s deferred tax asset and/or liability balances are estimated using
estimates of effective tax rates expected to apply to taxable income in the
years such balances are realized. The Fund will rely to some extent on
information provided by MLPs in determining the extent to which distributions
received from MLPs constitute a return of capital, which may not be provided to
the Fund on a timely basis, to estimate the Fund’s deferred tax liability and/or
asset balances for purposes of financial statement reporting and determining its
NAV. If such information is not received from such MLPs on a timely basis, the
Fund will estimate the extent to which distributions received from MLPs
constitute a return of capital based on average historical tax characterization
of distributions made by MLPs. The Fund’s estimates regarding its deferred tax
liability and/or asset balances are made in good faith; however, the daily
estimate of the Fund’s deferred tax liability and/or asset balances used to
calculate the Fund’s NAV could vary dramatically from the Fund’s actual tax
liability. Actual income tax expense, if any, will be incurred over many years,
depending on if and when investment gains and losses are realized, the
then-current basis of the Fund’s assets and other factors. As a result, the
determination of the Fund’s actual tax liability may have a material impact on
the Fund’s NAV. The Fund’s daily NAV calculation will be based on then current
estimates and assumptions regarding the Fund’s deferred tax liability and/or
asset balances and any applicable valuation allowance, based on all information
available to the Fund at such time. From time to time, the Fund may modify its
estimates or assumptions regarding its deferred tax liability and/or asset
balances and any applicable valuation allowance as new information becomes
available. Modifications of the Fund’s estimates or assumptions regarding its
deferred tax liability and/or asset balances and any applicable valuation
allowance, changes in generally accepted accounting principles or related
guidance or interpretations thereof, limitations imposed on net operating losses
(if any) and changes in applicable tax law could result in increases or
decreases in the Fund’s NAV per share, which could be material.
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
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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. |
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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.
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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. |
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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. |
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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. |
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Distributions
declared to shareholders with a record date in December—if paid to you by
the end of January—are taxable for federal income tax purposes as if
received in December. |
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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 Client Accounts menu of our website at
www.Invesco.com/us. |
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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. |
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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
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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. |
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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. |
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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. |
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You
will not be required to include the portion of dividends paid by a Fund
derived from interest on U.S. government obligations in your gross
income for purposes of personal and, in some cases, corporate income taxes
in many state and local tax jurisdictions. The percentage of dividends
that constitutes dividends derived from interest on federal obligations
will be determined annually. This percentage may differ from the actual
percentage of interest received by the Fund on federal obligations for the
particular days on which you hold shares. |
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Fund
distributions and gains from sale or exchange of your Fund shares
generally are subject to state and local income taxes.
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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. |
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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. |
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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.
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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
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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. |
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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. |
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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. |
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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. |
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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. |
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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. |
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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.
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Money
Market Funds
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A
Fund does not anticipate realizing any long-term capital gains. |
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If
a Fund, other than Invesco Premier Tax-Exempt Portfolio, expects to
maintain a stable net asset value of $1.00 per share, investors should not
have any gain or loss on sale or exchange of Fund shares (unless the
investor incurs a liquidity fee on such sale or exchange). See “Liquidity
Fees and Redemption Gates.” |
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Invesco
Premier Tax-Exempt Portfolio rounds its current net asset value per share
to a minimum of the fourth decimal place, therefore, investors will have
gain or loss on sale or exchange of shares of the Fund calculated by
subtracting your cost basis from the gross proceeds received from the sale
or exchange. |
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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. |
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Because
the Invesco Premier Tax-Exempt Portfolio is not expected to maintain a
stable share price, a sale or exchange of Fund shares may result in a
capital gain or loss for you. 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
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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.
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Funds
Investing in Real Estate Securities
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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. |
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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. |
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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. |
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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. Proposed regulations issued by the
IRS, which can be relied upon currently, enable the Fund to pass through
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. |
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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.
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Funds
Investing in Partnerships
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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. |
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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. |
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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 |
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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
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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. |
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The
Funds must meet certain requirements under the Code for favorable tax
treatment as a RIC, including asset diversification and income
requirements. 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). Recently released Treasury
Regulations also permit the Fund to treat such deemed inclusions of
“Subpart F” income from the Subsidiary as qualifying income to the Fund,
even if the Subsidiary does not make a distribution of such income.
Consequently, the Fund and the Subsidiary reserve the right to rely on
deemed inclusions being treated as qualifying income to the Fund
consistent with recently released Treasury Regulations. If, contrary to
the opinion of counsel or other guidance issued by the IRS, the IRS were
to determine that income from direct investment in commodity-linked notes
is non-qualifying, a Fund might fail to satisfy the income requirement. In
lieu of disqualification, the Funds are permitted to pay a tax for certain
failures to satisfy the asset diversification or income requirements,
which, in general, are limited to those due to reasonable cause and not
willful neglect. The Funds intend to limit their investments in their
respective Subsidiary to no more than 25% of the value of each Fund’s
total assets in order to satisfy the asset diversification requirement.
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The
Invesco Balanced-Risk Commodity Strategy Fund received a PLR from the IRS
holding that income from a form of commodity-linked note is qualifying
income. However, the IRS has revoked the ruling on a prospective basis,
thus allowing the Fund to continue to rely on its private letter ruling to
treat income from commodity-linked notes purchased on or before June 30,
2017 as qualifying income. After that time the Invesco Balanced-Risk
Commodity Strategy Fund expects to rely on the opinion of counsel
described above. |
Funds
Investing in Foreign Currencies
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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.
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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.
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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.
Although
the Code generally provides that a RIC does not pay an entity-level income tax,
provided that it distributes all or substantially all of its income, the Fund is
not and does not anticipate becoming eligible to elect to be treated as a RIC
because most or substantially all of the Fund’s investments will consist of
investments in MLP securities. The RIC tax rules therefore have no application
to the Fund or to its shareholders. As a result, the Fund is treated as a
regular corporation, or “C” corporation, for U.S. federal income tax purposes,
and generally is subject to U.S. federal income tax on its taxable income at the
corporate income tax rate. In addition, as a regular corporation, the Fund will
be subject to state and local taxes by reason of its tax status and its
investments in MLPs. Therefore, the Fund may have to pay federal, multiple
state, and local taxes, which would reduce the Fund’s cash available to make
distributions to shareholders. An estimate for federal, state, and local tax
liabilities will reduce the fund’s net asset value. The extent to which the Fund
is required to pay U.S. federal, state or local corporate income, franchise or
other corporate taxes could materially reduce the Fund’s cash available to make
distributions to shareholders. In addition, investors in taxable accounts should
be aware of the following basic tax points as supplemented below where relevant:
Fund
Tax Basics
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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. |
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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
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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. |
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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. |
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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.
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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. |
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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. |
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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. |
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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. |
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If
the Fund is required to sell portfolio securities to meet redemption
requests, the Fund may recognize income and gains for U.S. federal, state
and local income and other tax purposes, which may result in the
imposition of corporate income or other taxes on the Fund and may increase
the Fund’s current and accumulated earnings and profits, which will result
in a greater portion of distributions to Fund shareholders being treated
as dividends. Any long-term or short-term capital gains realized on sale
or redemption of your Fund shares will be subject to federal income tax.
For tax purposes an exchange of your shares for shares of another Fund is
the same as a sale. An exchange occurs when the purchase of shares of a
Fund is made using the proceeds from a redemption of shares of another
Fund and is effectuated on the same day as the redemption. Your gain or
loss is calculated by subtracting from the gross proceeds your cost basis.
Gross proceeds and, for shares acquired on or after January 1, 2012 and
disposed of after that date, cost basis will be reported to you and the
IRS. Cost basis will be calculated using the Fund’s default method of
first-in, first-out (FIFO), unless you instruct the Fund to use a
different calculation method. Shareholders should carefully review the
cost basis information provided by a Fund and make any additional basis,
holding period or other adjustments that are required when reporting these
amounts on their federal income tax returns. If you hold your Fund shares
through a broker (or other nominee), please contact that broker (nominee)
with respect to reporting of cost basis and available elections for your
account. For more information about the cost basis methods offered by
Invesco, please refer to the Tax Center located under the Accounts &
Services menu of our website at www.invesco.com/us. |
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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. |
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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. |
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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. |
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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. |
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Fund
distributions and gains from sale or exchange of your Fund shares
generally are subject to state and local income taxes. |
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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. |
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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.
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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. |
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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.
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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.
United
States taxes
The
Fund is classified as a partnership and will not be a regulated investment
company for US federal income tax purposes. As a partnership, the Fund is not a
taxable entity for federal income tax purposes and, subject
to
the application of the partnership audit rules described below, incurs no
federal income tax liability. Each Investor is required to take into account its
proportionate share of items of income, gain, loss and deduction of the
partnership in computing its federal income tax liability regardless of whether
or not cash or property distributions are then made by the Fund. Following the
close of the Fund’s taxable year end, Investors will receive a tax statement
entitled Schedule K-1 Partner’s Share of Income, Deductions, Credits, etc.,
which reports the tax status of their distributive share of the Fund’s items for
the previous year.
Taxation
of distributions, sales and exchanges
In
general, distributions of money by the Fund to an Investor will represent a
non-taxable return of capital up to the amount of an Investor’s adjusted tax
basis in its shares. An Investor will recognize gain to the extent that any
money distributed by the Fund exceeds the Investor’s adjusted tax basis in its
shares. In the case of a non-taxable return of capital by the Fund to an
Investor, other than in liquidation of the Investor’s interest in the Fund, the
tax basis of his shares will be reduced (but not below zero) and will result in
an increase in the amount of gain (or decrease in the amount of loss) that will
be recognized by the Investor on the later sale of its shares. A distribution in
partial or complete redemption of your shares in the Fund is taxable as a sale
or exchange only to the extent the amount of money received exceeds the tax
basis of your entire interest in the Fund. Any loss may be recognized only if
you redeem your entire interest in the Fund for money.
When
you sell shares of the Fund, you may have a capital gain or loss.
Derivatives
The
use of derivatives by the Fund may cause the Fund to realize higher amounts of
ordinary income or short-term capital gain, allocations of which are taxable to
individual Investors at ordinary income tax rates rather than at the more
favorable tax rates for long-term capital gain. Changes in government regulation
of derivative instruments could affect the character, timing and amount of the
Fund’s taxable income or gains, and may limit the Fund from using certain types
of derivative instruments as part of its investment strategy.
Risk
of audit of the Fund
Under
the new partnership audit rules, which are generally applicable to tax years
beginning after December 31, 2017, the Internal Revenue Service (“IRS”) may
collect any taxes resulting from audit adjustments to the Fund’s income tax
returns (including any applicable penalties and interest) directly from the
Fund. In that case, current Investors would bear some or all of the tax
liability resulting from such audit adjustment, even if they did not own
interests in the Fund during the tax year under audit. The Fund may have the
ability to shift any such tax liability to the Investors in accordance with
their interests in the Fund during the year under audit, but there can be no
assurance that the Fund will be able to do so under all circumstances. For
taxable years not subject to the new audit rules, items of Fund income, gain,
loss, deduction and credit will be determined at the Fund level in a unified
audit. NO REPRESENTATION OR WARRANTY OF ANY KIND IS MADE WITH RESPECT TO THE
TAXATION, DEDUCTIBILITY OR CAPITALIZATION OF ANY ITEM BY THE FUND OR INVESTOR.
In addition, the “partnership representative” (tax matters partner, for taxable
years before the partnership audit rules become effective) will have the sole
authority to act on the Fund’s behalf for purposes of, among other things,
federal income tax audits and judicial review of administrative adjustments by
the IRS, and any such actions will be binding on the Fund and all of the
Investors.
Unrelated
business taxable income
An
allocable share of a tax-exempt Investor’s income will be “unrelated business
taxable income” (“UBTI”) to the extent that the Fund borrows money to acquire
property or invests in assets that produce UBTI.
Medicare
tax
An
additional 3.8% Medicare tax is imposed on certain net investment income of US
individuals, estates and trusts to the extent that such person’s “modified
adjusted gross income” (in the case of an individual) or “adjusted gross income”
(in the case of an estate or trust) exceeds a threshold amount. “Net investment
income,” for these purposes, means investment income (including (i) net gains
from the taxable disposition of shares of a Fund to the extent the net gain
would be taken into account by the Investor if the Fund sold all of its property
for fair market value immediately before the disposition of the shares of the
Fund, and (ii) an allocable share of a Fund’s interest, dividends and net gains)
reduced by the deductions properly allocable to such income. This Medicare tax,
if applicable, is reported by Investors on, and paid with, the Investor’s
federal income tax return.
State,
local and non-US tax matters
An
Investor’s distributive share of the Fund’s income, and gains from the sale or
exchange of an Investor’s Fund shares, generally are subject to state and local
taxes in the jurisdiction in which the Investor resides or is otherwise subject
to tax.
Prospective
investors should consider their individual state and local tax consequences of
an investment in the Fund.
Tax
considerations for non-US investors
If,
as anticipated, the Fund is not deemed to be engaged in a US trade or business,
the Fund generally will be required to withhold tax on the distributive share of
certain items of gross income from US sources allocated to non-US Investors at a
30% (or lower treaty) rate. Certain categories of income, including portfolio
interest, are not subject to US withholding tax. Capital gains (other than gain
realized on disposition of US real property interests) are not subject to US
withholding tax unless the non-US Investor is a nonresident alien individual
present in the United States for a period or periods aggregating 183 days or
more during the taxable year. If, on the other hand, the Fund derives income
which is effectively connected with a US trade or business carried on by the
Fund, this 30% tax will not apply to such effectively connected income of the
Fund, and the Fund generally will be required to withhold tax from the amount of
effectively connected income allocable to non-US Investors at the highest rate
of tax applicable to US residents, and non-US Investors generally would be
required to file US income tax returns and be subject to US income tax on a net
basis. Gain or loss on a sale of shares will be treated as effectively connected
with a U.S. trade or business to the extent that a foreign corporation or
foreign individual that owns the shares (whether directly or indirectly through
other partnerships) would have had effectively connected gain or loss had the
partnership sold its underlying assets and applicable US withholding tax will
apply. Non-US Investors may be subject to US estate tax and are subject to
special US tax certification requirements.
Other
reporting and withholding requirements
Under
the Foreign Account Tax Compliance Act (“FATCA”), the Fund will be required to
withhold at a 30% rate on certain US source payments (such as interest, and
dividends) to certain Investors if the Investor fails to provide the Fund with
the information which identifies its direct and indirect US ownership. After
December 31, 2018, FATCA withholding also would have applied to certain capital
gain distributions, return of capital distributions and the proceeds arising
from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer
required unless final regulations provide otherwise (which is not expected). A
Fund may disclose the information that it receives from an Investor to the IRS,
non-US taxing authorities or other parties as necessary to comply with FATCA or
similar laws. Withholding also may be required if a foreign entity that is an
Investor fails to provide the Fund with appropriate certifications or other
documentation concerning its status under FATCA.
For
a more complete discussion of the federal income tax consequences of investing
in the Fund, see the Statement of Additional Information.
This
discussion of “Federal Income Taxes” is not intended or written to be used as
tax advice. Because everyone’s tax situation is unique, Investors should consult
their tax professional about federal, state, local and foreign tax consequences
before making an investment in the Fund.
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 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.
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.
Obtaining Additional Information
More information may be obtained free
of charge upon request. The SAI, a current version of which is on file with the
SEC, contains more details about the Fund and is incorporated by reference into
this prospectus (is legally a part of this prospectus). Annual and semi-annual
reports to shareholders contain additional information about the Fund’s
investments. The Fund’s annual report also discusses the market conditions and
investment strategies that significantly affected the Fund’s performance during
its last fiscal year. The Fund also files its complete schedule of portfolio
holdings with the SEC for the 1st and 3rd quarters of each fiscal year as an
exhibit to its reports on Form N-PORT.
If you have questions about an Invesco
Fund or your account, or you wish to obtain a free copy of the Fund’s current
SAI, annual or semi-annual reports or Form N-PORT, please contact us.
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By Mail:
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Invesco
Investment Services, Inc. P.O. Box 219078 Kansas City, MO
64121-9078 |
By Telephone:
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(800) 959-4246
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On the Internet:
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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
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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].
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Invesco Oppenheimer Developing Markets Fund
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SEC
1940 Act file number: 811-05426
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invesco.com/us O-DVM-PRO-1
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