Prospectus
Class: A
(VAFAX ),
C (VAFCX ), R (VAFRX ), Y
(VAFIX ),
R5 (VAFNX ), R6 (VAFFX )
Invesco
American Franchise Fund
As with all other
mutual fund securities, the U.S. Securities and Exchange Commission (SEC) has
not approved or disapproved these securities or passed upon the adequacy of this
prospectus. Any representation to the contrary is a criminal
offense.
An investment in
the Fund:
◾
is not FDIC
insured;
◾
may lose value;
and
◾
is not guaranteed
by a bank.
|
| |
|
1 | |
|
| |
|
4 | |
|
| |
|
6 | |
|
6 | |
|
6 | |
|
6 | |
|
| |
|
6 | |
|
6 | |
|
7 | |
|
| |
|
8 | |
|
| |
|
9 | |
|
| |
|
A-1 | |
|
A-1 | |
|
A-2 | |
|
A-3 | |
|
A-3 | |
|
A-12 | |
|
A-12 | |
|
A-14 | |
|
A-17 | |
|
A-18 | |
|
A-18 | |
|
A-19 | |
|
A-22 | |
|
A-24 | |
|
A-26 | |
|
A-27 | |
|
A-27 | |
|
| |
|
Back
Cover |
Invesco
American Franchise Fund
The Fund’s
investment objective is to seek long-term capital
appreciation.
This table
describes the fees and expenses that you may pay if you buy, hold and sell
shares of the Fund.
The
table and Examples below do not reflect any transaction fees
that may be charged by financial intermediaries or commissions that a
shareholder may be required to pay directly to its financial intermediary when
buying or selling Class Y or Class R6 shares.
You may qualify for sales
charge discounts if you and your family invest, or agree to invest in the
future, at least $50,000 in the Invesco Funds. More
information about these and other discounts is available from your financial
professional and in the section “Shareholder Account Information – Initial Sales
Charges (Class A Shares Only)” on page A-3 of the prospectus and the section
“Purchase, Redemption and Pricing of Shares – Purchase and Redemption of Shares”
on page L-1 of the statement of additional information
(SAI).
|
Class: |
A |
C |
R |
Y |
R5 |
R6 |
|
Maximum
Sales Charge (Load) Imposed on
Purchases
(as a percentage of offering price) |
% |
|
|
|
|
|
|
| ||||||
|
Maximum
Deferred Sales Charge (Load) (as a
percentage
of original purchase price or
redemption
proceeds, whichever is less) |
|
% |
|
|
|
|
|
| ||||||
|
Class: |
A |
C |
R |
Y |
R5 |
R6 |
|
Management
Fees |
% |
% |
% |
% |
% |
% |
|
| ||||||
|
Distribution
and/or Service (12b-1) Fees |
|
|
|
|
|
|
|
| ||||||
|
Other
Expenses |
|
|
|
|
|
|
|
| ||||||
|
Total
Annual Fund Operating Expenses |
|
|
|
|
|
|
|
| ||||||
1
The
Example assumes that you invest $10,000 in the Fund for the time periods indicated
and then redeem all of your shares at the end of those periods. This Example
does not include commissions and/or other forms of compensation that investors
may pay on transactions in Class Y and Class R6 shares. The Example also assumes
that your investment has a 5% return each year and that the Fund’s operating
expenses remain the same.
Although
your actual costs may be higher or lower, based on these assumptions, your
costs would be:
|
|
1
Year |
3
Years |
5
Years |
10
Years |
|
Class
A |
$ |
$ |
$ |
$ |
|
| ||||
|
Class
C |
$ |
$ |
$ |
$ |
|
| ||||
|
Class
R |
$ |
$ |
$ |
$ |
|
| ||||
|
Class
Y |
$ |
$ |
$ |
$ |
|
| ||||
|
Class
R5 |
$ |
$ |
$ |
$ |
|
| ||||
|
Class
R6 |
$ |
$ |
$ |
$ |
|
| ||||
|
|
1
Year |
3
Years |
5
Years |
10
Years |
|
Class
A |
$ |
$ |
$ |
$ |
|
| ||||
|
Class
C |
$ |
$ |
$ |
$ |
|
| ||||
|
Class
R |
$ |
$ |
$ |
$ |
|
| ||||
|
Class
Y |
$ |
$ |
$ |
$ |
|
| ||||
|
Class
R5 |
$ |
$ |
$ |
$ |
|
| ||||
|
Class
R6 |
$ |
$ |
$ |
$ |
|
| ||||
The Fund invests,
under normal circumstances, at least 80% of its net assets (plus any borrowings
for investment purposes) in securities of U.S. issuers, and in derivatives and
other instruments that have economic characteristics similar to such securities.
The Fund deems an issuer to be a U.S. issuer if (i) its principal securities
trading market (i.e., a U.S. stock exchange, NASDAQ or over-the-counter markets)
is in the U.S.; (ii) it (alone or through its consolidated subsidiaries) derives
50% or more of its annual revenue from either goods produced, sales made or
services performed in the U.S.; (iii) it is organized under the laws of, or has
a principal office in, the U.S.; or (iv) its “country of risk” is the U.S. as
determined by a third party service provider. The Fund invests primarily in
equity securities of mid- and large-capitalization issuers. The principal type
of equity security in which the Fund invests is common stock.
The
Fund invests primarily in securities that are considered by the Fund’s portfolio
managers to have potential for earnings or revenue growth.
The
Fund may invest up to 20% of its net assets in securities of foreign
issuers.
The
Fund may also invest up to 10% of its net assets in emerging markets countries,
i.e., those that are generally in the early stages of their industrial
cycles.
The
Fund is non-diversified, which means it can invest a greater percentage of its
assets in a small group of issuers or any one issuer than a diversified fund
can.
The
Fund’s portfolio
managers
use a
bottom-up stock selection process designed to seek alpha (return on investments
in excess of the Russell 1000® Growth Index), as
well as a disciplined portfolio construction process designed to manage risk.
The portfolio managers use a holistic approach that closely examines company
fundamentals, including detailed modeling of a company’s financial statements
and discussions with company management teams, suppliers, distributors,
competitors, and customers. The portfolio managers use a variety of valuation
techniques based on the company in question, the industry in which the company
operates, the stage of the company’s business cycle, and other factors that best
reflect a company’s value. The portfolio managers seek to invest in companies
with attractive growth outlooks at compelling valuation levels.
The
portfolio managers
consider whether to sell a particular security when a company is deemed to be
overvalued, a company’s fundamentals deteriorate, the catalysts for growth are
no longer present or reflected in the stock price or if the company is displaced
by a more attractive investment
opportunity.
1 Invesco
American Franchise Fund
2 Invesco
American Franchise Fund
Fund
performance reflects any applicable fee waivers and expense reimbursements.
Performance returns would be lower without applicable fee waivers and expense
reimbursements.
All
Fund performance shown assumes the reinvestment of dividends and capital gains
and the effect of the Fund’s expenses.
Updated
performance information is available on the Fund’s website at www.invesco.com/us .
Annual Total Returns
The bar chart does
not reflect sales loads. If it did, the annual total returns shown would be
lower.
|
Class
A |
Period
Ended |
Returns |
|
|
|
|
|
|
|
|
|
|
|
- |
Average Annual Total Returns (for the periods ended December 31, 2022)
|
|
Inception
Date |
1
Year |
5
Years |
10
Years |
|
Class
A |
|
|
|
|
|
Return
Before Taxes |
|
-
% |
% |
% |
|
Return
After Taxes on Distributions |
|
- |
|
|
|
Return
After Taxes on Distributions and Sale of
Fund
Shares |
|
- |
|
|
|
| ||||
|
Class
C |
|
- |
|
|
|
| ||||
|
Class
R |
|
- |
|
|
|
| ||||
|
Class
Y |
|
- |
|
|
|
| ||||
|
Class
R5 |
|
- |
|
|
|
| ||||
|
Class
R6 |
|
- |
|
|
|
| ||||
|
Russell
1000®
Growth Index deduction
for fees, expenses or taxes) |
|
- |
|
|
|
| ||||
|
S&P
500®
Index (reflects no deduction for fees,
expenses
or taxes) |
|
- |
|
|
|
| ||||
Management
of the Fund
Investment Adviser:
Invesco Advisers, Inc. (Invesco or the Adviser)
|
Portfolio
Managers |
Title |
Length
of Service on the Fund |
Ronald
J. Zibelli, Jr., CFA |
Portfolio
Manager (lead) |
2022 |
|
| ||
Ido
Cohen |
Portfolio
Manager |
2010 |
|
| ||
Purchase
and Sale of Fund Shares
You may purchase,
redeem or exchange shares of the Fund on any business day through your financial
adviser or by telephone at 800-959-4246. Shares of the Fund, other than Class R5
and Class R6 shares, may also be purchased, redeemed or exchanged on any
business day through our website at www.invesco.com/us or by mail to Invesco
Investment Services, Inc., P.O. Box 219078, Kansas City, MO
64121-9078.
The
minimum investments for Class A, C, R and Y shares for fund accounts are as
follows:
|
Type
of Account |
Initial
Investment
Per
Fund |
Additional
Investments
Per
Fund |
|
Asset
or fee-based accounts managed by your financial
adviser |
None |
None |
|
| ||
|
Employer
Sponsored Retirement and Benefit Plans and
Employer
Sponsored IRAs |
None |
None |
|
| ||
|
IRAs
and Coverdell ESAs if the new investor is purchasing
shares
through a systematic purchase plan |
$25 |
$25 |
|
| ||
|
All
other types of accounts if the investor is purchasing shares
through
a systematic purchase plan |
50 |
50 |
|
| ||
|
IRAs
and Coverdell ESAs |
250 |
25 |
|
| ||
|
All
other accounts |
1,000 |
50 |
|
| ||
With
respect to Class R5 and Class R6 shares, there is no minimum initial investment
for Employer Sponsored Retirement and Benefit Plans investing through a
retirement platform that administers at least $2.5 billion in retirement plan
assets. All other Employer Sponsored Retirement and Benefit Plans must meet a
minimum initial investment of at least $1 million in each Fund in which it
invests.
For
all other institutional investors purchasing Class R5 or Class R6 shares, the minimum
initial investment in each share class is $1 million, unless such investment is
made by (i) an investment company, as defined under the Investment Company Act
of 1940, as amended (1940 Act), that is part of a family of investment companies
which own in the aggregate at least $100 million in securities, or (ii) an
account established with a 529 college savings plan managed by Invesco, in which
case there is no minimum initial investment.
There
are no minimum investment amounts for Class R6 shares held through retail
omnibus accounts maintained by an intermediary, such as a broker, that (i)
generally charges an asset-based fee or commission in addition to those
described in this prospectus, and (ii) maintains Class R6 shares and makes them
available to retail investors.
Tax
Information
The Fund’s
distributions generally are taxable to you as ordinary income, capital gains, or
some combination of both, unless you are investing through a tax-advantaged
arrangement, such as a 401(k) plan, 529 college savings plan or individual
retirement account. Any distributions from a 401(k) plan or individual
retirement account may be taxed as ordinary income when withdrawn from such plan
or account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If you purchase the
Fund through a broker-dealer or other financial intermediary (such as a bank),
the Fund, the Fund’s distributor or its related companies may pay the
intermediary for the sale of Fund shares and related 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
3 Invesco
American Franchise Fund
salesperson or
financial adviser or visit your financial intermediary’s website for more
information.
Investment Objective(s), Strategies, Risks and Portfolio Holdings
Objective(s)
and Strategies
The Fund’s
investment objective is to seek long-term capital appreciation. The Fund’s
investment objective may be changed by the Board of Trustees (the Board) without
shareholder approval.
The
Fund invests, under normal circumstances, at least 80% of its net assets (plus any
borrowings for investment purposes) in securities of U.S. issuers, and in
derivatives and other instruments that have economic characteristics similar to
such securities. The Fund deems an issuer to be a U.S. issuer if (i) its
principal securities trading market (i.e., a U.S. stock exchange, NASDAQ or
over-the-counter markets) is in the U.S.; (ii) it (alone or through its
consolidated subsidiaries) derives 50% or more of its annual revenue from either
goods produced, sales made or services performed in the U.S.; (iii) it is
organized under the laws of, or has a principal office in, the U.S.; or (iv) its
“country of risk” is the U.S. as determined by a third party service provider.
The Fund invests primarily in equity securities of mid- and large-capitalization
issuers. The principal type of equity security in which the Fund invests is
common stock.
The
Fund considers an issuer to be a large-capitalization issuer if it has
a
market capitalization, at the time of purchase, within the range of the market
capitalizations of the largest and smallest capitalized issuers
included in the
Russell 1000® Growth Index
during the most recent 11-month period (based on month-end data) plus the most
recent data during the current month.
The
Fund considers an issuer to be a mid-capitalization issuer if it has a
market
capitalization, at the time of purchase, within the range of the market
capitalizations of the largest and smallest capitalized issuers included in the
Russell Midcap® Growth Index
during the most recent 11-month period (based on month-end data) plus the most
recent data during the current month. A company’s “market capitalization” is the
value of its outstanding stock.
The
Fund invests primarily in securities that are considered by the Fund’s portfolio
managers to have potential for earnings or revenue growth.
The
Fund may invest up to 20% of its net assets in securities of foreign
issuers.
The
Fund may also invest up to 10% of its net assets in emerging markets countries.
Emerging markets countries are those that are generally in the early stages of
their industrial cycles.
The
Fund is non-diversified, which means it can invest a greater percentage of its
assets in a small group of issuers or any one issuer than a diversified fund
can.
The
portfolio managers
use a bottom-up stock selection process designed to seek alpha (return on
investments in excess of the Russell 1000® Growth Index), as
well as a disciplined portfolio construction process designed to manage risk.
The portfolio managers use a holistic approach that closely examines company
fundamentals, including detailed modeling of a company’s financial statements
and discussions with company management teams, suppliers, distributors,
competitors, and customers. The portfolio managers use a variety of valuation
techniques based on the company in question, the industry in which the company
operates, the stage of the company’s business cycle, and other factors that best
reflect a company’s value. The portfolio managers seek to invest in companies
with attractive growth outlooks at compelling valuation levels.
The
portfolio managers
consider whether to sell a particular security when a company is deemed to be
overvalued, a company’s fundamentals
deteriorate, the
catalysts for growth are no longer present or reflected in the stock price or if
the company is displaced by a more attractive investment
opportunity.
In
anticipation of or in response to market, economic, political, or other
conditions, the
Fund’s portfolio managers may temporarily use a different investment strategy
for defensive purposes. If the Fund’s portfolio managers do so, different
factors could affect the Fund’s performance and the Fund may not achieve its
investment objective.
The
Fund’s investments in the types of securities and other investments described in this
prospectus vary from time to time, and, at any time, the Fund may not be
invested in all of the types of securities and other investments described in
this prospectus. The Fund may also invest in securities and other investments
not described in this prospectus.
For
more information, see “Description of the Funds and Their Investments and
Risks” in the Fund’s SAI.
Risks
The principal risks
of investing in the Fund are:
Market
Risk. The market values
of the Fund’s investments, and therefore the value of the Fund’s shares, will go
up and down, sometimes rapidly or unpredictably. Market risk may affect a single
issuer, industry or section of the economy, or it may affect the market as a
whole. The value of the Fund’s investments may go up or down due to general
market conditions that are not specifically related to the particular issuer,
such as real or perceived adverse economic conditions, changes in the general
outlook for revenues or corporate earnings, changes in interest or currency
rates, regional or global instability, or adverse investor sentiment generally.
The value of the Fund’s investments may also go up or down due to factors that
affect an individual issuer or a particular industry or sector, such as changes
in production costs and competitive conditions within an industry. In addition,
natural or environmental disasters, widespread disease or other public health
issues, war, military conflict, acts of terrorism,
economic crisis or
other events may have a significant impact on the value of the Fund’s
investments, as well as the financial markets and global economy generally. Such
circumstances may also impact the ability of the Adviser to effectively
implement the Fund’s investment strategy. During a general downturn in the
financial markets, multiple asset classes may decline in value. When markets
perform well, there can be no assurance that specific investments held by the
Fund will rise in value.
◾
Market
Disruption Risks Related to Russia-Ukraine Conflict. Following
Russia’s invasion of Ukraine in late February 2022, various countries, including
the United States, as well as North Atlantic Treaty Organization (NATO) member
countries and the European Union, issued broad-ranging economic sanctions
against Russia. The war in Ukraine (and the potential for further sanctions in
response to Russia’s continued military activity) may escalate. These and other
corresponding events, have had, and could continue to have, severe negative
effects on regional and global economic and financial markets, including
increased volatility, reduced liquidity, and overall uncertainty. The negative
impacts may be particularly acute in certain sectors including, but not limited
to, energy and financials. Russia may take additional countermeasures or
retaliatory actions (including cyberattacks), which could exacerbate negative
consequences on global financial markets. The duration of the conflict and
corresponding sanctions and related events cannot be predicted. The foregoing
may result in a negative impact on Fund performance and the value of an
investment in the Fund, even beyond any direct investment exposure the Fund may
have to Russian issuers or the adjoining geographic regions.
Investing
in Stocks Risk. Common stock
represents an ownership interest in a company. It ranks below preferred stock
and debt securities in claims for dividends and in claims for assets of the
issuer in a liquidation or bankruptcy. Common stocks may be exchange-traded or
over-the-counter
4 Invesco
American Franchise Fund
securities.
Over-the-counter securities may be less liquid than exchange-traded
securities.
The
value of the Fund’s portfolio may be affected by changes in the stock markets.
Stocks and other equity securities fluctuate in price in response to changes to
equity markets in general. Stock markets may experience significant short-term
volatility and may fall or rise sharply at times. Adverse events in any part of
the equity or fixed-income markets may have unexpected negative effects on other
market segments. Different stock markets may behave differently from each other
and U.S. stock markets may move in the opposite direction from one or more
foreign stock markets.
The
prices of individual stocks generally do not all move in the same direction at the
same time. However, individual stock prices tend to go up and down more
dramatically than those of certain other types of investments, such as bonds. A
variety of factors can negatively affect the price of a particular company’s
stock. These factors may include, but are not limited to: poor earnings reports,
a loss of customers, litigation against the company, general unfavorable
performance of the company’s sector or industry, or changes in government
regulations affecting the company or its industry. To the extent that securities
of a particular type are emphasized (for example foreign stocks, stocks of
small- or mid-cap companies, growth or value stocks, or stocks of companies in a
particular industry), fund share values may fluctuate more in response to events
affecting the market for those types of securities.
Mid-Capitalization
Companies Risk. Investing in
securities of mid-capitalization companies involves greater risk than
customarily is associated with investing in larger, more established companies.
Securities of mid-capitalization companies tend to be more vulnerable to
changing market conditions and may have more limited product lines and markets,
less experienced management and fewer financial resources than larger companies.
These companies’ securities may be more volatile and less liquid than those of
more established companies. These securities may have returns that vary,
sometimes significantly, from the overall securities market.
Growth
Investing Risk. Growth companies
are companies whose earnings and stock prices are expected to grow at a faster
rate than the overall market. If a growth company’s earnings or stock price
fails to increase as anticipated, or if its business plans do not produce the
expected results, the value of its securities may decline sharply. Growth
companies can be new or established companies that may be entering a growth
cycle in their business and therefore may experience greater stock price
fluctuations and risks of loss than larger, more established companies. Their
anticipated growth may come from developing new products or services or from
expanding into new or growing markets. Growth companies may be applying new
technologies, new or improved distribution methods or new business models that
could enable them to capture an important or dominant market position. They may
have a special area of expertise or the ability to take advantage of changes in
demographic or other factors in a more profitable way. Newer growth companies
generally tend to invest a large part of their earnings in research, development
or capital assets. Although newer growth companies may not pay any dividends for
some time, their stocks may be valued because of their potential for price
increases. Growth investing has gone in and out of favor during past market
cycles and is likely to continue to do so. During periods when growth investing
is out of favor or when markets are unstable, it may be more difficult to sell
growth company securities at an acceptable price and the securities of growth
companies may underperform the securities of value companies or the overall
stock market. Growth stocks may also be more volatile than other securities
because of investor speculation.
Sector
Focus Risk. The Fund may from
time to time have a significant amount of its assets invested in one market
sector or group of related industries. The prices of stocks of issuers in a
sector or group of industries may go up and down in response to changes in
economic conditions, government regulations, availability of basic resources or
supplies, or other events that affect that industry or sector more than others.
In this event, the Fund’s performance will depend to a greater extent on the
overall condition
of the sector or
group of industries and there is increased risk that the Fund will lose
significant value if conditions adversely affect that sector or group of
industries. Information about the Fund’s investment in a market sector or group
of industries is available in its annual and semi-annual reports to shareholders
and in its reports on Form N-PORT filed with the SEC.
Foreign
Securities Risk. The value of the
Fund's foreign investments may be adversely affected by political and social
instability in the home countries of the issuers of the investments, by changes
in economic or taxation policies in those countries, or by the difficulty in
enforcing obligations in those countries. Foreign investments also involve the
risk of the possible seizure, nationalization or expropriation of the issuer or
foreign deposits (in which the Fund could lose its entire investments in a
certain market) and the possible adoption of foreign governmental restrictions
such as exchange controls. Foreign companies generally may be subject to less
stringent regulations than U.S. companies, including financial reporting
requirements and auditing and accounting controls, and may therefore be more
susceptible to fraud or corruption. Also, there may be less publicly available
information about companies in certain foreign countries than about U.S.
companies making it more difficult for the Adviser to evaluate those companies.
The laws of certain countries may put limits on the Fund’s ability to recover
its assets held at a foreign bank if the foreign bank, depository or issuer of a
security, or any of their agents, goes bankrupt. Trading in many foreign
securities may be less liquid and more volatile than U.S. securities due to the
size of the market or other factors. Changes in political and economic factors
in one country or region could adversely affect conditions in another country or
region. Investments in foreign securities may also expose the Fund to time-zone
arbitrage risk. At times, the Fund may emphasize investments in a particular
country or region and may be subject to greater risks from adverse events that
occur in that country or region. Unless the Fund has hedged its foreign currency
exposure, foreign securities risk also involves the risk of negative foreign
currency rate fluctuations, which may cause the value of securities denominated
in such foreign currency (or other instruments through which the Fund has
exposure to foreign currencies) to decline in value. Currency exchange rates may
fluctuate significantly over short periods of time. Currency hedging strategies,
if used, are not always successful. For instance, currency forward contracts, if
used by the Fund, could reduce performance if there are unanticipated changes in
currency exchange rates.
Emerging
Market Securities Risk. Emerging markets
(also referred to as developing markets) are generally subject to greater market
volatility, political, social and economic instability, uncertainty regarding
the existence of trading markets and more governmental limitations on foreign
investment than more developed markets. In addition, companies operating in
emerging markets may have greater concentration in a few industries resulting in
greater vulnerability to regional and global trade conditions and also may be
subject to lower trading volume and greater price fluctuations than companies in
more developed markets. Unexpected market closures may also affect investments
in emerging markets. Settlement procedures may differ from those of more
established securities markets, and settlement delays may result in the
inability to invest assets or dispose of portfolio securities in a timely
manner. As a result there could be subsequent declines in value of the portfolio
security, a decrease in the level of liquidity of the portfolio, or, if there is
a contract to sell the security, a possible liability to the
purchaser.
Such
countries’ economies may be more dependent on relatively few industries or
investors that may be highly vulnerable to local and global changes. Emerging
market countries may also have higher rates of inflation and more rapid and
extreme fluctuations in inflation rates and greater sensitivity to interest rate
changes. Further, companies in emerging market countries generally may be
subject to less stringent regulatory, disclosure, financial reporting,
accounting, auditing and recordkeeping standards than companies in more
developed countries and, as a result, the nature and quality of such information
may vary. Information about such companies may be less available and reliable
and, therefore, the ability to conduct
5 Invesco
American Franchise Fund
adequate due
diligence in emerging markets may be limited which can impede the Fund’s ability
to evaluate such companies. In addition, certain emerging market countries may
impose material limitations on Public Company Accounting Oversight Board (PCAOB)
inspection, investigation and enforcement capabilities, which can hinder the
PCAOB’s ability to engage in independent oversight or inspection of accounting
firms located in or operating in certain emerging markets.
There
is no
guarantee that the quality of financial reporting or the audits conducted by
audit firms of emerging market issuers meet PCAOB standards.
Securities
law in many emerging market countries is relatively new and unsettled.
Therefore, laws regarding foreign investment in emerging market securities,
securities regulation, title to securities, and shareholder rights may change
quickly and unpredictably. Emerging market countries also may have less
developed legal systems allowing for enforcement of private property rights
and/or redress for injuries to private property (including bankruptcy,
confiscatory taxation, expropriation, nationalization of a company’s assets,
restrictions on foreign ownership of local companies, restrictions on
withdrawing assets from the country, protectionist measures and practices such
as share blocking). Certain governments may require approval for the
repatriation of investment income, capital or the proceeds of sales of
securities by foreign investors. The ability to bring and enforce actions in
emerging market countries, or to obtain information needed to pursue or enforce
such actions, may be limited and shareholder claims may be difficult or
impossible to pursue. In addition, the taxation systems at the federal, regional
and local levels in emerging market countries may be less transparent and
inconsistently enforced, and subject to sudden change.
Emerging
market countries may have a higher degree of corruption and fraud than
developed market countries, as well as counterparties and financial institutions
with less financial sophistication, creditworthiness and/or resources. The
governments in some emerging market countries have been engaged in programs to
sell all or part of their interests in government-owned or controlled
enterprises. However, in certain emerging market countries, the ability of
foreign entities to participate in privatization programs may be limited by
local law. There can be no assurance that privatization programs will be
successful.
Other
risks of investing in emerging market securities may include additional
transaction costs, delays in settlement procedures, unexpected market closures,
and lack of timely information.
Non-Diversification
Risk. The Fund is
non-diversified, meaning it can invest a greater portion of its assets in the
obligations or securities of a small number of issuers or any single issuer than
a diversified fund can. Because a large percentage of the Fund’s assets may be
invested in a limited number of issuers, a change in the value of one or a few
issuers’ securities will affect the value of the Fund more than would occur in a
diversified fund.
Management
Risk. The Fund is
actively managed and depends heavily on the Adviser’s judgment about markets,
interest rates or the attractiveness, relative values, liquidity, or potential
appreciation of particular investments made for the Fund’s portfolio. The Fund
could experience losses if these judgments prove to be incorrect. There can be
no guarantee that the Adviser’s investment techniques or investment decisions
will produce the desired results. Additionally, legislative, regulatory, or tax
developments may affect the investments or investment strategies available to
the Adviser in connection with managing the Fund, which may also adversely
affect the ability of the Fund to achieve its investment objective.
Portfolio
Holdings
A description of
Fund policies and procedures with respect to the disclosure of Fund portfolio
holdings is available in the SAI, which is available at
www.invesco.com/us.
Fund Management
The
Adviser(s)
Invesco serves as
the Fund’s investment adviser. The Adviser manages the investment operations of
the Fund as well as other investment portfolios that encompass a broad range of
investment objectives, and has agreed to perform or arrange for the performance
of the Fund’s day-to-day management. The Adviser is located at 1331 Spring
Street, N.W., Suite 2500, Atlanta, Georgia 30309. The Adviser, as successor in
interest to multiple investment advisers, has been an investment adviser since
1976.
Sub-Advisers. Invesco has
entered into one or more Sub-Advisory Agreements with certain affiliates to
serve as sub-advisers to the Fund (the Sub-Advisers). Invesco may appoint the
Sub-Advisers from time to time to provide discretionary investment management
services, investment advice, and/or order execution services to the Fund. The
Sub-Advisers and the Sub-Advisory Agreements are described in the
SAI.
Adviser
Compensation
During the fiscal
year ended August 31, 2023, the Adviser received compensation of 0.58% of the
Fund's average daily net assets, after fee waiver and/or expense reimbursement,
if any.
A
discussion regarding the basis for the Board’s approval of the investment advisory
agreement and investment sub-advisory agreements of the Fund is available in the
Fund’s most recent annual or semi-annual report to shareholders.
Portfolio
Managers
The following
individuals are jointly and primarily responsible for the day-to-day management
of the Fund’s portfolio:
◾
Ronald J. Zibelli,
Jr., CFA (lead manager), Portfolio Manager, who has been responsible for the
Fund since 2022 and has been associated with Invesco and/or its affiliates since
2019. From 2006 to 2019, Mr. Zibelli was associated with OppenheimerFunds, a
global asset management firm.
◾
Ido Cohen,
Portfolio Manager, who has been responsible for the Fund since 2010 and has been
associated with Invesco and/or its affiliates since 2010.
A
lead or co-lead manager generally has final authority over all aspects
of the
Fund's investment portfolio, including but not limited to, purchases and sales
of individual securities, portfolio construction techniques, portfolio risk
assessment, and the management of daily cash flows in accordance with portfolio
holdings. The degree to which a lead or co-lead manager may perform these
functions, and the nature of these functions, may change from time to
time.
More
information on the portfolio managers may be found at www.invesco.com/us.
The website is not part of this prospectus.
The
Fund's SAI provides additional information about the portfolio managers'
investments in the Fund, a description of the compensation structure and
information regarding other accounts managed.
Other Information
Sales
Charges
Purchases of Class
A shares of the Fund are subject to the maximum 5.50% initial sales charge as
listed under the heading “Category I Initial Sales Charges” in the “Shareholder
Account Information—Initial Sales Charges (Class A Shares Only)” section of the
prospectus. Purchases of Class C shares are subject to a contingent deferred
sales charge (CDSC) if you sell Class C shares within one year of purchase;
however, the CDSC shall not apply to the purchases of Class C shares where the
selling broker-dealer was not paid a commission at the time of purchase. For
more information on CDSCs, see the “Shareholder Account Information—Contingent
Deferred Sales Charges (CDSCs)” section of this prospectus.
6 Invesco
American Franchise Fund
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.
7 Invesco
American Franchise Fund
Financial Highlights
The financial
highlights show the Fund’s financial history for the past five fiscal years or,
if shorter, the period of operations of the Fund or any of its share classes.
The financial highlights table is intended to help you understand the Fund’s
financial performance. Certain information reflects financial results for a
single Fund share.
The
total returns in the table represent the rate that an investor would
have
earned (or lost) on an investment in the Fund (assuming reinvestment of all
dividends and distributions).
This
information has been audited by PricewaterhouseCoopers LLP, an independent
registered public accounting firm, whose report, along with the Fund’s financial
statements, is included in the Fund’s annual report, which is available upon
request.
|
|
Net
asset
value,
beginning
of
period |
Net
investment
income
(loss)(a)
|
Net
gains
(losses)
on
securities
(both
realized
and
unrealized) |
Total
from
investment
operations |
Distributions
from
net
realized
gains |
Net
asset
value,
end
of
period |
Total
return(b)
|
Net
assets,
end
of period
(000's
omitted) |
Ratio
of
expenses
to
average
net
assets
with
fee waivers
and/or expenses
absorbed |
Ratio
of
expenses
to
average net
assets
without
fee
waivers
and/or expenses
absorbed |
Ratio
of net
investment
income
(loss)
to
average
net
assets |
Portfolio
turnover
(c)
|
|
Class
A | ||||||||||||
Year
ended 08/31/23 |
$18.84 |
$(0.03) |
$3.58 |
$3.55 |
$(1.33) |
$21.06 |
20.96% |
$12,047,012 |
0.99% |
0.99% |
(0.18)% |
73% |
|
Year
ended 08/31/22 |
32.86 |
(0.07) |
(7.28) |
(7.35) |
(6.67) |
18.84 |
(26.95) |
10,777,375 |
0.95 |
0.95 |
(0.29) |
97 |
Year
ended 08/31/21 |
28.90 |
(0.14) |
6.62 |
6.48 |
(2.52) |
32.86 |
24.04 |
16,037,060 |
0.97 |
0.97 |
(0.47) |
57 |
|
Year
ended 08/31/20 |
21.27 |
(0.03) |
9.17 |
9.14 |
(1.51) |
28.90 |
45.42 |
13,733,417 |
1.00 |
1.00 |
(0.15) |
52 |
Year
ended 08/31/19 |
23.12 |
(0.01) |
(0.04) |
(0.05) |
(1.80) |
21.27 |
1.21 |
10,115,813 |
1.01 |
1.01 |
(0.04) |
43 |
|
| ||||||||||||
|
Class
C | ||||||||||||
|
Year
ended 08/31/23 |
15.65 |
(0.14) |
2.89 |
2.75 |
(1.33) |
17.07 |
20.07 |
105,284 |
1.74 |
1.74 |
(0.93) |
73 |
Year
ended 08/31/22 |
28.67 |
(0.21) |
(6.14) |
(6.35) |
(6.67) |
15.65 |
(27.50) |
98,920 |
1.70 |
1.70 |
(1.04) |
97 |
|
Year
ended 08/31/21 |
25.70 |
(0.32) |
5.81 |
5.49 |
(2.52) |
28.67 |
23.11 |
164,671 |
1.72 |
1.72 |
(1.22) |
57 |
Year
ended 08/31/20 |
19.21 |
(0.18) |
8.18 |
8.00 |
(1.51) |
25.70 |
44.30 |
185,177 |
1.75 |
1.75 |
(0.90) |
52 |
|
Year
ended 08/31/19 |
21.23 |
(0.15) |
(0.07) |
(0.22) |
(1.80) |
19.21 |
0.46 |
139,839 |
1.76 |
1.76 |
(0.79) |
43 |
|
| ||||||||||||
|
Class
R | ||||||||||||
Year
ended 08/31/23 |
17.97 |
(0.07) |
3.39 |
3.32 |
(1.33) |
19.96 |
20.68 |
68,815 |
1.24 |
1.24 |
(0.43) |
73 |
|
Year
ended 08/31/22 |
31.73 |
(0.12) |
(6.97) |
(7.09) |
(6.67) |
17.97 |
(27.12) |
51,531 |
1.20 |
1.20 |
(0.54) |
97 |
Year
ended 08/31/21 |
28.06 |
(0.21) |
6.40 |
6.19 |
(2.52) |
31.73 |
23.70 |
66,494 |
1.22 |
1.22 |
(0.72) |
57 |
|
Year
ended 08/31/20 |
20.75 |
(0.09) |
8.91 |
8.82 |
(1.51) |
28.06 |
45.00 |
50,219 |
1.25 |
1.25 |
(0.40) |
52 |
Year
ended 08/31/19 |
22.65 |
(0.06) |
(0.04) |
(0.10) |
(1.80) |
20.75 |
0.99 |
34,114 |
1.26 |
1.26 |
(0.29) |
43 |
|
| ||||||||||||
|
Class
Y | ||||||||||||
|
Year
ended 08/31/23 |
19.79 |
0.02 |
3.78 |
3.80 |
(1.33) |
22.26 |
21.24 |
421,845 |
0.74 |
0.74 |
0.07 |
73 |
Year
ended 08/31/22 |
34.08 |
(0.01) |
(7.61) |
(7.62) |
(6.67) |
19.79 |
(26.75) |
410,990 |
0.70 |
0.70 |
(0.04) |
97 |
|
Year
ended 08/31/21 |
29.81 |
(0.07) |
6.86 |
6.79 |
(2.52) |
34.08 |
24.36 |
624,045 |
0.72 |
0.72 |
(0.22) |
57 |
Year
ended 08/31/20 |
21.85 |
0.03 |
9.44 |
9.47 |
(1.51) |
29.81 |
45.74 |
496,757 |
0.75 |
0.75 |
0.10 |
52 |
|
Year
ended 08/31/19 |
23.63 |
0.04 |
(0.02) |
0.02 |
(1.80) |
21.85 |
1.50 |
350,473 |
0.76 |
0.76 |
0.21 |
43 |
|
| ||||||||||||
|
Class
R5 | ||||||||||||
Year
ended 08/31/23 |
19.89 |
0.02 |
3.81 |
3.83 |
(1.33) |
22.39 |
21.28 |
41,963 |
0.71 |
0.71 |
0.10 |
73 |
|
Year
ended 08/31/22 |
34.22 |
(0.01) |
(7.65) |
(7.66) |
(6.67) |
19.89 |
(26.76) |
35,453 |
0.69 |
0.69 |
(0.03) |
97 |
Year
ended 08/31/21 |
29.92 |
(0.06) |
6.88 |
6.82 |
(2.52) |
34.22 |
24.37 |
51,787 |
0.70 |
0.70 |
(0.20) |
57 |
|
Year
ended 08/31/20 |
21.91 |
0.04 |
9.48 |
9.52 |
(1.51) |
29.92 |
45.85 |
43,712 |
0.70 |
0.70 |
0.15 |
52 |
Year
ended 08/31/19 |
23.68 |
0.05 |
(0.02) |
0.03 |
(1.80) |
21.91 |
1.54 |
75,149 |
0.71 |
0.71 |
0.26 |
43 |
|
| ||||||||||||
|
Class
R6 | ||||||||||||
|
Year
ended 08/31/23 |
20.16 |
0.03 |
3.87 |
3.90 |
(1.33) |
22.73 |
21.35 |
79,212 |
0.64 |
0.64 |
0.17 |
73 |
Year
ended 08/31/22 |
34.55 |
0.01 |
(7.73) |
(7.72) |
(6.67) |
20.16 |
(26.67) |
65,853 |
0.62 |
0.62 |
0.04 |
97 |
|
Year
ended 08/31/21 |
30.17 |
(0.04) |
6.94 |
6.90 |
(2.52) |
34.55 |
24.44 |
96,722 |
0.63 |
0.63 |
(0.13) |
57 |
Year
ended 08/31/20 |
22.07 |
0.05 |
9.56 |
9.61 |
(1.51) |
30.17 |
45.93 |
69,977 |
0.62 |
0.62 |
0.23 |
52 |
|
Year
ended 08/31/19 |
23.81 |
0.07 |
(0.01) |
0.06 |
(1.80) |
22.07 |
1.66 |
129,831 |
0.62 |
0.62 |
0.35 |
43 |
|
| ||||||||||||
|
(a) |
Calculated
using average shares outstanding. |
|
(b) |
Includes
adjustments in accordance with accounting principles generally accepted in
the United States of America and as such, the net asset value for
financial reporting purposes and the returns
based
upon those net asset values may differ from the net asset value and
returns for shareholder transactions. Does not include sales charges and
is not annualized for periods less than one
year,
if applicable. |
|
(c) |
Portfolio
turnover is calculated at the fund level and is not annualized for periods
less than one year, if
applicable. |
8 Invesco
American Franchise Fund
Hypothetical Investment and Expense Information
In connection with
the final settlement reached between Invesco and certain of its affiliates with
certain regulators, including the New York Attorney General’s Office, the SEC
and the Colorado Attorney General’s Office (the settlement) arising out of
certain market timing and unfair pricing allegations made against Invesco and
certain of its affiliates, Invesco and certain of its affiliates agreed, among
other things, to disclose certain hypothetical information regarding investment
and expense information to Fund shareholders. The chart below is intended to
reflect the annual and cumulative impact of the Fund’s expenses, including
investment advisory fees and other Fund costs, on the Fund’s returns over a
10-year period. The example reflects the following:
◾
You invest $10,000
in the Fund and hold it for the entire 10-year period;
◾
Your investment has
a 5% return before expenses each year;
◾
The Fund’s current
annual expense ratio includes, if applicable, any contractual fee waiver or
expense reimbursement that would apply for the period for which it was
committed;
◾
Hypotheticals both
with and without any applicable initial sales charge applied; and
◾
There is no sales
charge on reinvested dividends.
There
is no assurance that the annual expense ratio will be the expense ratio for the
Fund’s classes for any of the years shown. This is only a hypothetical
presentation made to illustrate what expenses and returns would be under the
above scenarios; your actual returns and expenses are likely to differ (higher
or lower) from those shown below.
|
Class
A (Includes Maximum Sales
Charge) |
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1 |
0.99% |
0.99% |
0.99% |
0.99% |
0.99% |
0.99% |
0.99% |
0.99% |
0.99% |
0.99% |
|
Cumulative
Return Before Expenses |
5.00% |
10.25% |
15.76% |
21.55% |
27.63% |
34.01% |
40.71% |
47.75% |
55.13% |
62.89% |
|
Cumulative
Return After Expenses |
(1.71%) |
2.23% |
6.33% |
10.59% |
15.03% |
19.64% |
24.44% |
29.43% |
34.62% |
40.02% |
|
End
of Year Balance |
$9,828.95 |
$10,223.09 |
$10,633.03 |
$11,059.42 |
$11,502.90 |
$11,964.16 |
$12,443.93 |
$12,942.93 |
$13,461.94 |
$14,001.76 |
|
Estimated
Annual Expenses |
$645.43 |
$99.26 |
$103.24 |
$107.38 |
$111.68 |
$116.16 |
$120.82 |
$125.66 |
$130.70 |
$135.95 |
|
| ||||||||||
|
Class
A (Without Maximum Sales
Charge) |
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1 |
0.99% |
0.99% |
0.99% |
0.99% |
0.99% |
0.99% |
0.99% |
0.99% |
0.99% |
0.99% |
|
Cumulative
Return Before Expenses |
5.00% |
10.25% |
15.76% |
21.55% |
27.63% |
34.01% |
40.71% |
47.75% |
55.13% |
62.89% |
|
Cumulative
Return After Expenses |
4.01% |
8.18% |
12.52% |
17.03% |
21.72% |
26.60% |
31.68% |
36.96% |
42.45% |
48.17% |
|
End
of Year Balance |
$10,401.00 |
$10,818.08 |
$11,251.89 |
$11,703.09 |
$12,172.38 |
$12,660.49 |
$13,168.18 |
$13,696.22 |
$14,245.44 |
$14,816.68 |
|
Estimated
Annual Expenses |
$100.98 |
$105.03 |
$109.25 |
$113.63 |
$118.18 |
$122.92 |
$127.85 |
$132.98 |
$138.31 |
$143.86 |
|
| ||||||||||
|
Class
C2
|
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1 |
1.74% |
1.74% |
1.74% |
1.74% |
1.74% |
1.74% |
1.74% |
1.74% |
0.99% |
0.99% |
|
Cumulative
Return Before Expenses |
5.00% |
10.25% |
15.76% |
21.55% |
27.63% |
34.01% |
40.71% |
47.75% |
55.13% |
62.89% |
|
Cumulative
Return After Expenses |
3.26% |
6.63% |
10.10% |
13.69% |
17.40% |
21.23% |
25.18% |
29.26% |
34.44% |
39.83% |
|
End
of Year Balance |
$10,326.00 |
$10,662.63 |
$11,010.23 |
$11,369.16 |
$11,739.80 |
$12,122.51 |
$12,517.71 |
$12,925.79 |
$13,444.11 |
$13,983.22 |
|
Estimated
Annual Expenses |
$176.84 |
$182.60 |
$188.55 |
$194.70 |
$201.05 |
$207.60 |
$214.37 |
$221.36 |
$130.53 |
$135.77 |
|
| ||||||||||
|
Class
R |
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1 |
1.24% |
1.24% |
1.24% |
1.24% |
1.24% |
1.24% |
1.24% |
1.24% |
1.24% |
1.24% |
|
Cumulative
Return Before Expenses |
5.00% |
10.25% |
15.76% |
21.55% |
27.63% |
34.01% |
40.71% |
47.75% |
55.13% |
62.89% |
|
Cumulative
Return After Expenses |
3.76% |
7.66% |
11.71% |
15.91% |
20.27% |
24.79% |
29.48% |
34.35% |
39.40% |
44.64% |
|
End
of Year Balance |
$10,376.00 |
$10,766.14 |
$11,170.94 |
$11,590.97 |
$12,026.79 |
$12,479.00 |
$12,948.21 |
$13,435.06 |
$13,940.22 |
$14,464.37 |
|
Estimated
Annual Expenses |
$126.33 |
$131.08 |
$136.01 |
$141.12 |
$146.43 |
$151.94 |
$157.65 |
$163.58 |
$169.73 |
$176.11 |
|
| ||||||||||
|
Class
Y |
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1 |
0.74% |
0.74% |
0.74% |
0.74% |
0.74% |
0.74% |
0.74% |
0.74% |
0.74% |
0.74% |
|
Cumulative
Return Before Expenses |
5.00% |
10.25% |
15.76% |
21.55% |
27.63% |
34.01% |
40.71% |
47.75% |
55.13% |
62.89% |
|
Cumulative
Return After Expenses |
4.26% |
8.70% |
13.33% |
18.16% |
23.19% |
28.44% |
33.91% |
39.62% |
45.57% |
51.77% |
|
End
of Year Balance |
$10,426.00 |
$10,870.15 |
$11,333.22 |
$11,816.01 |
$12,319.37 |
$12,844.18 |
$13,391.34 |
$13,961.81 |
$14,556.58 |
$15,176.69 |
|
Estimated
Annual Expenses |
$75.58 |
$78.80 |
$82.15 |
$85.65 |
$89.30 |
$93.11 |
$97.07 |
$101.21 |
$105.52 |
$110.01 |
|
| ||||||||||
|
Class
R5 |
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1 |
0.71% |
0.71% |
0.71% |
0.71% |
0.71% |
0.71% |
0.71% |
0.71% |
0.71% |
0.71% |
|
Cumulative
Return Before Expenses |
5.00% |
10.25% |
15.76% |
21.55% |
27.63% |
34.01% |
40.71% |
47.75% |
55.13% |
62.89% |
|
Cumulative
Return After Expenses |
4.29% |
8.76% |
13.43% |
18.30% |
23.37% |
28.66% |
34.18% |
39.94% |
45.94% |
52.20% |
|
End
of Year Balance |
$10,429.00 |
$10,876.40 |
$11,343.00 |
$11,829.62 |
$12,337.11 |
$12,866.37 |
$13,418.34 |
$13,993.98 |
$14,594.32 |
$15,220.42 |
|
Estimated
Annual Expenses |
$72.52 |
$75.63 |
$78.88 |
$82.26 |
$85.79 |
$89.47 |
$93.31 |
$97.31 |
$101.49 |
$105.84 |
|
| ||||||||||
|
Class
R6 |
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1 |
0.64% |
0.64% |
0.64% |
0.64% |
0.64% |
0.64% |
0.64% |
0.64% |
0.64% |
0.64% |
|
Cumulative
Return Before Expenses |
5.00% |
10.25% |
15.76% |
21.55% |
27.63% |
34.01% |
40.71% |
47.75% |
55.13% |
62.89% |
|
Cumulative
Return After Expenses |
4.36% |
8.91% |
13.66% |
18.61% |
23.79% |
29.18% |
34.82% |
40.69% |
46.83% |
53.23% |
|
End
of Year Balance |
$10,436.00 |
$10,891.01 |
$11,365.86 |
$11,861.41 |
$12,378.57 |
$12,918.27 |
$13,481.51 |
$14,069.30 |
$14,682.72 |
$15,322.89 |
|
Estimated
Annual Expenses |
$65.40 |
$68.25 |
$71.22 |
$74.33 |
$77.57 |
$80.95 |
$84.48 |
$88.16 |
$92.01 |
$96.02 |
|
| ||||||||||
1
Your actual
expenses may be higher or lower than those shown.
2
The hypothetical
assumes you hold your investment for a full 10 years. Therefore, any applicable
deferred sales charge that might apply in year one for Class C has not been
deducted.
9 Invesco
American Franchise Fund
Shareholder Account Information
In addition to the
Fund(s), the Adviser serves as investment adviser to many other Invesco mutual
funds that are offered to investors (Invesco Funds or Funds). The following
information is about the Invesco Funds and their share classes that have
different fees and expenses. Certain Invesco Funds have their own “Shareholder
Account Information Section” that should be consulted for specific information
related to those Funds.
Some
investments in the Funds are made through accounts that are maintained by
intermediaries (and not in the name of an individual investor) and some
investments are made indirectly through products that use the Funds as
underlying investments, such as Retirement and Benefit Plans, funds of funds,
qualified tuition plans, and variable insurance contracts (these products are
generally referred to as conduit investment vehicles). If shares of the Funds
are held in an account maintained by an intermediary or in the name of a conduit
investment vehicle (and not in the name of an individual investor), the
intermediary or conduit investment vehicle may impose rules that differ from,
and/or charge a transaction or other fee in addition to, those described in this
prospectus. As a result, the availability of certain share classes and/or
shareholder privileges or services described in this prospectus will depend on
the policies, procedures and trading platforms of the financial intermediary or
conduit investment vehicle. Accordingly, through your financial intermediary you
may be invested in a share class that is subject to higher annual fees and
expenses than other share classes that are offered in this prospectus. Investing
in a share class subject to higher annual fees and expenses may have an adverse
impact on your investment return. Please consult your financial adviser to
consider your options, including your eligibility to qualify for the share
classes and/or shareholder privileges or services described in this
prospectus.
The
Fund is not responsible for any additional share class eligibility requirements,
investment minimums, exchange privileges, or other policies imposed by financial
intermediaries or for notifying shareholders of any changes to them. Please
consult your financial adviser or other financial intermediary for
details.
Unless
otherwise provided, the following are certain defined terms used throughout this
prospectus:
◾
Employer Sponsored
Retirement and Benefit Plans include (i) employer sponsored pension or profit
sharing plans that qualify under section
401(a) of the
Internal Revenue Code of 1986, as amended (the Code), including 401(k), money
purchase pension, profit sharing and defined benefit plans; (ii) 403(b) and
non-qualified deferred compensation arrangements that operate similar to plans
described under (i) above, such as 457 plans and executive deferred compensation
arrangements; (iii) health savings accounts maintained pursuant to Section 223
of the Code; and (iv) voluntary employees’ beneficiary arrangements
maintained pursuant to Section 501(c)(9) of the Code.
◾
Individual
Retirement Accounts (IRAs) include Traditional and Roth IRAs.
◾
Employer Sponsored
IRAs include Simplified Employee Pension (SEP), Salary Reduction Simplified
Employee Pension (SAR-SEP), and Savings Incentive Match Plan for Employees of
Small Employers (SIMPLE) IRAs.
◾
Retirement and
Benefit Plans include Employer Sponsored Retirement and Benefit Plans, IRAs and
Employer Sponsored IRAs.
Shareholder
Account Information and additional information is available on the Internet at
www.invesco.com/us. To access your account, go to the tab for “Account &
Services,” then click on “Accounts Overview.” For additional information about
Invesco Funds, consult the Fund’s prospectus and SAI, which are available on
that same website or upon request free of charge. The website is not part of
this prospectus.
Choosing
a Share Class
Each Fund may offer
multiple classes of shares and not all Funds offer all share classes discussed
herein. Each class represents an interest in the same portfolio of investments.
Certain classes have higher expenses than other classes which may lower the
return on your investment when compared to a less expensive class. In deciding
which class of shares to purchase, you should consider the following attributes
of the various share classes, among other things: (i) the eligibility
requirements that apply to purchases of a particular class and any eligibility
requirements of your financial intermediary, (ii) the initial sales charges
and contingent deferred sales charges (CDSCs), if any, applicable to the class,
(iii) the 12b-1 fee, if any, paid by the class, and (iv) any services
you may receive from a financial intermediary. Please contact your financial
adviser to assist you in making your decision. Please refer to the prospectus
fee table for more information on the fees and expenses of a particular Fund’s
share classes.
|
Share
Classes |
|
|
|
|
|
Class
A |
Class
C |
Class
R |
Class
Y |
Class
R5 and R6 |
|
▪ Initial
sales charge which may be
waived
or reduced1
|
▪ No
initial sales charge |
▪ No
initial sales charge |
▪ No
initial sales charge |
▪ No
initial sales charge |
|
▪ CDSC
on certain redemptions1
|
▪ CDSC
on redemptions within one
year
if a commission has been paid |
▪ No
CDSC |
▪ No
CDSC |
▪ No
CDSC |
|
▪ 12b-1
fee of up to 0.25%2
|
▪ 12b-1
fee of up to 1.00%3
|
▪ 12b-1
fee of up to 0.50% |
▪ No
12b-1 fee |
▪ No
12b-1 fee |
|
|
▪ Investors
may only open an
account
to purchase Class C
shares
if they have appointed a
financial
intermediary that allows
for
new accounts in Class C shares
to
be opened. This restriction does
not
apply to Employer Sponsored
Retirement
and Benefit Plans. |
▪ Does
not convert to Class A shares |
▪ Does
not convert to Class A shares |
▪ Does
not convert to Class A
shares |
A-1 The
Invesco Funds
MCF—12/23
|
Share
Classes |
|
|
|
|
|
Class
A |
Class
C |
Class
R |
Class
Y |
Class
R5 and R6 |
|
|
▪ Eligible
for automatic conversion to
Class
A shares. See “Automatic
Conversion
of Class C and Class
CX
Shares” herein. |
▪ Intended
for Retirement and
Benefit
Plans4
|
|
▪ Special
eligibility requirements and
investment
minimums apply (see
“Share
Class Eligibility – Class R5
and
R6 shares” below) |
|
|
▪ Purchase
maximums apply |
|
|
|
1
Invesco
Conservative Income Fund, Invesco Government Money Market Fund and Invesco Short
Term Municipal Fund do not have initial sales charges or CDSCs on redemptions in
most cases.
2
Class A2 shares of
Invesco Limited Term Municipal Income Fund and Investor Class shares of Invesco
Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S.
Government Money Portfolio do not have a 12b-1 fee; Invesco Short Term Bond Fund
Class A shares and Invesco Short Duration Inflation Protected Fund Class A2
shares have a 12b-1 fee of 0.15%; and Invesco Conservative Income Fund Class A
shares have a 12b-1 fee of 0.10%.
3
The 12b-1 fee for
Class C shares of certain Funds is less than 1.00%. The “Fees and Expenses
of the Fund—Annual Fund Operating Expenses” section of this prospectus reflects
the actual 12b-1 fees paid by a Fund.
4
Your financial
intermediary may have additional eligibility criteria for Class R shares. Please
see the “Financial Intermediary- Specific Arrangements” section of this
prospectus for further information.
In addition to the
share classes shown in the chart above, the following Funds offer the following
additional share classes further described in this prospectus:
◾
Investor Class
shares: Invesco Diversified Dividend Fund, Invesco Dividend Income Fund, Invesco
Energy Fund, Invesco EQV European Equity Fund, Invesco Health Care Fund, Invesco
High Yield Fund, Invesco Income Fund, Invesco Income Advantage U.S. Fund,
Invesco Government Money Market Fund, Invesco Municipal Income Fund, Invesco
Real Estate Fund, Invesco Small Cap Growth Fund, Invesco Technology Fund,
Invesco Premier Portfolio and Invesco Premier U.S. Government Money
Portfolio.
◾
Class A2 shares:
Invesco Short Duration Inflation Protected Fund and Invesco Limited Term
Municipal Income Fund;
◾
Class AX
shares: Invesco Government Money Market Fund;
◾
Class CX
shares: Invesco Government Money Market Fund;
◾
Class P shares:
Invesco Summit Fund;
◾
Class S shares:
Invesco Charter Fund, Invesco Select Risk: Moderately Conservative Investor
Fund, Invesco Select Risk: Growth Investor Fund, Invesco Select Risk: Moderate
Investor Fund and Invesco Summit Fund; and
◾
Invesco Cash
Reserve Shares: Invesco Government Money Market Fund and Invesco U.S. Government
Money Portfolio.
Share
Class Eligibility
The availability of
certain share classes will depend on how you purchased your shares.
Intermediaries may have different policies regarding the availability of certain
share classes than those described below. You should consult your financial
adviser to consider your options, including your eligibility to qualify for the
share classes described below. The Fund is not responsible for eligibility
requirements imposed by financial intermediaries or for notifying shareholders
of any changes to them. See “Financial Intermediary-Specific Arrangements” for
more information on certain intermediary-specific eligibility requirements.
Please
consult with your financial intermediary if you have any questions regarding
their policies.
Class A,
C and Invesco Cash Reserve Shares
Class A, C and
Invesco Cash Reserve Shares are generally available to all retail investors,
including individuals, trusts, corporations, business and charitable
organizations and Retirement and Benefit Plans. Investors may only open an
account to purchase Class C shares if they have appointed a financial
intermediary that allows for new accounts in Class C shares to be opened. This
restriction does not apply to Employer Sponsored Retirement and Benefit Plans.
The share classes offer different fee structures that are intended to compensate
financial intermediaries for services provided in connection with the sale of
shares and continued maintenance of the customer relationship. You should
consider the services provided by your financial adviser and any other financial
intermediaries who will be involved in the servicing of your account when
choosing a share class.
Class A2 Shares
Class A2 shares,
which are offered only on Invesco Short Duration Inflation Protected Fund and
Invesco Limited Term Municipal Income Fund, are closed to new investors. All
references in this “Shareholder Account Information” section of this prospectus
to Class A shares shall include Class A2 shares, unless otherwise
noted.
Class AX
and CX Shares
Class AX and
CX shares are closed to new investors. Only investors who have continuously
maintained an account in Class AX or CX of Invesco Government Money Market
Fund may make additional purchases into Class AX and CX, respectively, of
Invesco Government Money Market Fund. All references in this “Shareholder
Account Information” section of this prospectus to Class A, C or R shares
of the Invesco Funds shall include CX
shares
of Invesco Government Money Market Fund, unless otherwise noted. All references
in this “Shareholder Account Information” section of this prospectus to Invesco
Cash Reserve Shares of Invesco Government Money Market Fund shall include
Class AX shares of Invesco Government Money Market Fund, unless otherwise
noted.
Class P
Shares
In addition to the
other share classes discussed herein, the Invesco Summit Fund offers
Class P shares, which were historically sold only through the AIM Summit
Investors Plans I and II (each a Plan and, collectively, the Summit Plans).
Class P shares are sold with no initial sales charge and have a 12b-1 fee
of 0.10%. However, Class P shares are not sold to members of the general
public. Only shareholders who had accounts in the Summit Plans at the close of
business on December 8, 2006 may purchase Class P shares and only
until the total of their combined investments in the Summit Plans and in
Class P shares directly equals the face amount of their former Plan under
the 30 year extended investment option. The face amount of a Plan is the
combined total of all scheduled monthly investments under the Plan. For a Plan
with a scheduled monthly investment of $100.00, the face amount would have been
$36,000.00 under the 30 year extended investment option.
Class R
Shares
Class R shares
are intended for Retirement and Benefit Plans. Certain financial intermediaries
have additional eligibility criteria regarding Class R shares. If you received
Class R shares as a result of a merger or reorganization of a predecessor fund
into any of the Funds, you will be permitted to make additional Class R shares
purchases.
Class
R5 and R6 Shares
Class R5 and R6
shares of the Funds are available for use by Employer Sponsored Retirement and
Benefit Plans, held either at the plan level or through omnibus accounts, that
generally process no more than one net redemption and one net purchase
transaction each day.
Class
R5 and R6 shares of the Funds are also available to institutional investors.
Institutional investors are: banks, trust companies, collective trust funds,
entities acting for the account of a public entity (e.g., Taft-Hartley funds,
states, cities or government agencies), funds of funds or other pooled
A-2 The
Invesco Funds
investment
vehicles, 529 college savings plans, financial intermediaries and corporations
investing for their own accounts, endowments and foundations. For information
regarding investment minimums for Class R5 and R6 shares, please see “Minimum
Investments” below.
Class
R6 shares of the Funds are also available through an intermediary that has agreed
with Invesco Distributors, Inc. to make such shares available for use in retail
omnibus accounts that generally process no more than one net redemption and one
net purchase transaction each day.
Shareholders
eligible to purchase Class R6 Shares must meet the requirements
specified by their intermediary. Not all intermediaries offer Class R6
Shares to their customers.
Class S
Shares
Class S shares
are limited to investors who purchase shares with the proceeds received from a
systematic contractual investment plan redemption within the 12 months
prior to purchasing Class S shares, and who purchase through an approved
financial intermediary that has an agreement with the distributor to sell
Class S shares. Class S shares are not otherwise sold to members of
the general public. An investor purchasing Class S shares will not pay an
initial sales charge. The investor will no longer be eligible to purchase
additional Class S shares at that point where the value of the
contributions to the prior systematic contractual investment plan combined with
the subsequent Class S share contributions equals the face amount of what
would have been the investor’s systematic contractual investment plan under the
30-year investment option. The face amount of a systematic contractual
investment plan is the combined total of all scheduled monthly investments under
that plan. For a plan with a scheduled monthly investment of $100.00, the face
amount would have been $36,000.00 under the 30-year extended investment
option.
Class Y
Shares
Class Y shares are
available to (i) investors who purchase through an account that is charged an
asset-based fee or commission by a financial intermediary, including through
brokerage platforms, where a broker is acting as the investor’s agent, that may
require the payment by the investor of a commission and/or other form of
compensation to that broker, (ii) endowments, foundations, or Employer Sponsored
Retirement and Benefit Plans (with the exception of “Solo 401(k)” Plans and
403(b) custodial accounts held directly at Invesco), (iii) banks or bank trust
departments acting on their own behalf or as trustee or manager for trust
accounts, or (iv) any current, former or retired trustee, director, officer or
employee (or immediate family members of a current, former or retired trustee,
director, officer or employee) of any Invesco Fund or of Invesco Ltd. or any of
its subsidiaries.
Subject
to any conditions or limitations imposed on the servicing of Class Y shares by
your financial adviser, if you received Class Y shares as a result of a merger
or reorganization of a predecessor fund into any of the Funds, you will be
permitted to make additional Class Y share purchases. In addition, you will be
permitted to make additional Class Y shares purchases if you owned Class Y
shares in a “Solo 401(k)” Plan or 403(b) custodial account held directly at
Invesco if you held such shares in your account on or prior to May 24, 2019, or
if you currently own Class Y shares held in a previously eligible account (as
outlined in (i) in the above paragraph) for which you no longer have a financial
intermediary.
Investor
Class Shares
Investor Class
shares are sold with no initial sales charge and have a maximum 12b-1 fee of
0.25%. Only the following persons may purchase Investor Class
shares:
◾
Investors who
established accounts prior to April 1, 2002, in Investor Class shares with
Invesco Distributors, Inc. (Invesco Distributors) who have continuously
maintained an account in Investor Class shares (this includes anyone listed in
the registration of an account, such as a joint owner, trustee or custodian, and
immediate family members of such persons) without a designated intermediary.
These investors are referred to as “Investor Class grandfathered
investors.”
◾
Customers of a
financial intermediary that has had an agreement with the Funds’ distributor or
any Funds that offered Investor Class shares prior to
April 1, 2002,
that has continuously maintained such agreement. These intermediaries are
referred to as “Investor Class grandfathered intermediaries.”
◾
Any current, former
or retired trustee, director, officer or employee (or immediate family member of
a current, former or retired trustee, director, officer or employee) of any
Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
For
additional shareholder eligibility requirements with respect to Invesco Premier
Portfolio, please see “Shareholder Account Information – Purchasing Shares and
Shareholder Eligibility – Invesco Premier Portfolio.”
Distribution
and Service (12b-1) Fees
Except as noted
below, each Fund has adopted a service and/or distribution plan pursuant to SEC
Rule 12b-1. A 12b-1 plan allows a Fund to pay distribution and service fees to
Invesco Distributors to compensate or reimburse, as applicable, Invesco
Distributors for its efforts in connection with the sale and distribution of the
Fund’s shares, all or a substantial portion of which are paid to the dealer of
record. Because the Funds pay these fees out of their assets on an ongoing
basis, over time these fees will increase the cost of your investment and may
cause you to pay more than the maximum permitted initial sales charges described
in this prospectus.
The following Funds
and share classes do not have 12b-1 plans:
◾
Invesco Limited
Term Municipal Income Fund, Class A2 shares.
◾
Invesco Government
Money Market Fund, Investor Class shares.
◾
Invesco Premier
Portfolio, Investor Class shares.
◾
Invesco Premier
U.S. Government Money Portfolio, Investor Class shares.
◾
All Funds,
Class Y, Class R5 and Class R6 shares
Under
the applicable service and/or distribution plan, the Funds may pay distribution
and/or service fees up to the following annual rates with respect to each Fund’s
average daily net assets with respect to such class (subject to the exceptions
noted on page A-1):
◾
Class A
shares: 0.25%
◾
Class C
shares: 1.00%
◾
Class P
shares: 0.10%
◾
Class R
shares: 0.50%
◾
Class S
shares: 0.15%
◾
Invesco Cash
Reserve Shares: 0.15%
◾
Investor Class
shares: 0.25%
Please
refer to the prospectus fee table for more information on a particular Fund’s
12b-1 fees.
Initial
Sales Charges (Class A Shares Only)
The Funds are
grouped into six categories for determining initial sales charges. The “Other
Information” section of each Fund’s prospectus will tell you the sales charge
category in which the Fund is classified. Additionally, Class A shares of
Invesco Conservative Income Fund and Invesco Short Term Municipal Fund do not
have initial sales charges. As used below, the term “offering price” with
respect to all categories of Class A shares includes the initial sales
charge.
If
you purchase $1,000,000 or more of Class A shares of Category I, II or V Funds or
$250,000 or more of Class A shares of Category IV or VI Funds (a Large Purchase)
the initial sales charge set forth below will be waived; though your shares will
be subject to a 1% CDSC if you don’t hold such shares for at least 18
months.
|
Category
I Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment | |
|
Less
than |
$50,000 |
5.50% |
5.82% |
|
| |||
|
$50,000 but
less than |
$100,000 |
4.50 |
4.71 |
|
| |||
|
$100,000 but
less than |
$250,000 |
3.50 |
3.63 |
|
| |||
|
$250,000 but
less than |
$500,000 |
2.75 |
2.83 |
|
| |||
|
$500,000 but
less than |
$1,000,000 |
2.00 |
2.04 |
|
| |||
A-3 The
Invesco Funds
|
Category II
Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment | |
|
Less
than |
$100,000 |
4.25% |
4.44% |
|
| |||
|
$100,000 but
less than |
$250,000 |
3.50 |
3.63 |
|
| |||
|
$250,000 but
less than |
$500,000 |
2.50 |
2.56 |
|
| |||
|
$500,000 but
less than |
$1,000,000 |
2.00 |
2.04 |
|
| |||
|
Category
III Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment | |
|
Less
than |
$100,000 |
1.00% |
1.01% |
|
| |||
|
$100,000 but
less than |
$250,000 |
0.75 |
0.76 |
|
| |||
|
$250,000 but
less than |
$1,000,000 |
0.50 |
0.50 |
|
| |||
|
Category
IV Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment | |
|
Less
than |
$100,000 |
2.50% |
2.56% |
|
| |||
|
$100,000 but
less than |
$250,000 |
1.75 |
1.78 |
|
| |||
|
Category V
Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment | |
|
Less
than |
$100,000 |
3.25% |
3.36% |
|
| |||
|
$100,000 but
less than |
$250,000 |
2.75 |
2.83 |
|
| |||
|
$250,000 but
less than |
$500,000 |
1.75 |
1.78 |
|
| |||
|
$500,000 but
less than |
$1,000,000 |
1.50 |
1.52 |
|
| |||
|
Category
VI Initial Sales Charges | |||
|
|
Investor’s
Sales Charge | ||
|
Amount
invested |
As
a % of
Offering
Price |
As
a % of
Investment | |
|
Less
than |
$50,000 |
5.50% |
5.82% |
|
| |||
|
$50,000 but
less than |
$100,000 |
4.50 |
4.71 |
|
| |||
|
$100,000 but
less than |
$250,000 |
3.50 |
3.63 |
|
| |||
Class A
Shares Sold Without an Initial Sales Charge
The availability of
certain sales charge waivers and discounts will depend on how you purchase your
shares. Intermediaries may have different policies and procedures regarding the
availability of front-end sales load waivers or contingent deferred (back-end)
sales load (“CDSC”) waivers, exchanges or conversions between classes or
exchanges between Funds; account investment minimums; and minimum account
balances, which are discussed below. In all instances, it is the purchaser’s
responsibility to notify the Fund or the purchaser’s financial intermediary at
the time of purchase of any relationship or other facts qualifying the purchaser
for sales charge waivers, discounts or other special arrangements. For waivers
and discounts not available through a particular intermediary, shareholders
should consult their financial advisor to consider their options.
The
following types of investors may purchase Class A shares without
paying
an initial sales charge:
Waivers
Offered by the Fund
◾
Investors who
purchase shares through a fee-based advisory account with an approved financial
intermediary. In a fee based advisory program, a financial intermediary
typically charges each investor a fee based on the value of the investor’s
account in exchange for servicing that account.
◾
Employer Sponsored
Retirement and Benefit Plans maintained on retirement platforms or by the Funds’
transfer agent or its affiliates (but not including plans utilizing the Invesco
403(b)(7) Custodial Account program, or the individual custodial accounts
thereunder):
◾
with assets of at
least $1 million; or
◾
with at least 100
employees eligible to participate in the plan; or
◾
that execute plan
level or multiple-plan level transactions through a single omnibus account per
Fund.
◾
Any investor who
purchases his or her shares with the proceeds of an in kind rollover, transfer
or distribution from a Retirement and Benefit Plan where the account being
funded by such rollover is to be maintained by the same financial intermediary,
trustee, custodian or administrator that maintained the plan from which the
rollover distribution funding such rollover originated, or an affiliate
thereof.
◾
Investors who own
Investor Class shares of a Fund, who purchase Class A shares of a different
Fund through the same account in which the Investor Class Shares were first
purchased.
◾
Funds of funds or
other pooled investment vehicles.
◾
Insurance company
separate accounts.
◾
Any current or
retired trustee, director, officer or employee of any Invesco Fund or of Invesco
Ltd. or any of its subsidiaries.
◾
Any registered
representative or employee of any financial intermediary who has an agreement
with Invesco Distributors to sell shares of the Invesco Funds (this includes any
members of his or her immediate family).
◾
Any investor
purchasing shares through a financial intermediary that has a written
arrangement with the Funds’ distributor in which the Funds’ distributor has
agreed to participate in a no transaction fee program in which the financial
intermediary will make Class A shares available without the imposition of a
sales charge.
◾
Former shareholders
of Atlas Strategic Income Fund who purchase shares of a Fund into which
shareholders of Invesco Global Strategic Income Fund may exchange if permitted
by the intermediary’s policies.
◾
Former shareholders
of Oppenheimer Total Return Fund Periodic Investment Plan who purchase shares of
a Fund into which shareholders of Invesco Main Street Fund may exchange if
permitted by the intermediary’s policies.
◾
Certain
participants in Employer-Sponsored IRA Plans utilizing Invesco Trust Company
custodial accounts who were offered Class A shares without an initial sales
charge prior to December 15, 2023, and who continue to purchase Class A
shares.
In
addition, investors may acquire Class A shares without paying an
initial sales
charge in connection with:
◾
reinvesting
dividends and distributions;
◾
exchanging shares
of one Fund that were previously assessed a sales charge for shares of another
Fund;
◾
purchasing shares
in connection with the repayment of an Employer Sponsored Retirement and Benefit
Plan loan administered by the Funds’ transfer agent; and
◾
purchasing
Class A shares with proceeds from the redemption of Class C,
Class R, Class R5, Class R6 or Class Y shares where the redemption and
purchase are effectuated on the same business day due to the distribution of a
Retirement and Benefit Plan maintained by the Funds’ transfer agent or one of
its affiliates.
Invesco
Distributors also permits certain other investors to invest in Class A shares
without paying an initial charge as a result of the investor’s current or former
relationship with the Invesco Funds. For additional information about such
eligibility, please reference the Funds’ SAI.
Financial
Intermediary-Specific Arrangements
The
financial intermediary-specific waivers, discounts, policies regarding exchanges
and conversions, account investment minimums, minimum account balances, and
share class eligibility requirements that follow are only available to clients
of those financial intermediaries specifically named below and to Invesco funds
that offer the share class(es) to which the arrangements relate. Please contact
your financial intermediary for questions regarding your eligibility and for
more information with respect to your financial intermediary’s sales charge
waivers, discounts, investment
A-4 The
Invesco Funds
minimums, minimum
account balances, and share class eligibility requirements and other special
arrangements. Financial intermediary-specific sales charge waivers, discounts,
investment minimums, minimum account balances, and share class eligibility
requirements and other special arrangements are implemented and administered by
each financial intermediary. It is the responsibility of your financial
intermediary (and not the Funds) to ensure that you obtain proper financial
intermediary-specific waivers, discounts, investment minimums, minimum account
balances and other special arrangements and that you are placed in the proper
share class for which you are eligible through your financial intermediary. In
all instances, it is the purchaser’s responsibility to notify the Fund or the
purchaser’s financial intermediary at the time of purchase of any relationship
or other facts qualifying the purchaser for sales charge waivers or discounts or
other financial intermediary-specific arrangements as disclosed herein. Please
contact your financial intermediary for more information regarding the sales
charge waivers, discounts, investment minimums, minimum account balances, share
class eligibility requirements and other special arrangements available to you
and to ensure that you understand the steps you must take to qualify for such
arrangements. The terms and availability of these waivers and special
arrangements may be amended or terminated at any time.
Ameriprise
Financial
The
following information applies to Class A shares purchases if you have
an account with or otherwise purchase Fund shares through Ameriprise
Financial:
Shareholders
purchasing Fund shares through an Ameriprise
Financial retail brokerage
account are eligible for the following front-end sales charge waivers, which may
differ from those disclosed elsewhere in this Fund’s prospectus or
SAI.
◾
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b)
plans, profit sharing and money purchase pension plans and defined benefit
plans). For purposes of this provision, employer-sponsored retirement plans do
not include SEP IRAs, Simple IRAs or SAR-SEPs.
◾
Shares purchased
through reinvestment of capital gains distributions and dividend reinvestment
when purchasing shares of the same Fund (but not any other fund within the same
fund family).
◾
Shares exchanged
from Class C shares of the same fund in the month of or following the 7-year
anniversary of the purchase date. To the extent that this prospectus elsewhere
provides for a waiver with respect to exchanges of Class C shares or conversion
of Class C shares following a shorter holding period, that waiver will
apply.
◾
Employees and
registered representatives of Ameriprise Financial or its affiliates and their
immediate family members.
◾
Shares purchased by
or through qualified accounts (including IRAs, Coverdell Education Savings
Accounts, 401(k)s, 403(b) TSCAs subject to ERISA and defined benefit plans) that
are held by a covered family member, defined as an Ameriprise financial advisor
and/or the advisor’s spouse, advisor’s lineal ascendant (mother, father,
grandmother, grandfather, great grandmother, great grandfather), advisor’s
lineal descendant (son, step-son, daughter, step-daughter, grandson,
granddaughter, great grandson, great granddaughter) or any spouse of a covered
family member who is a lineal descendant.
◾
Shares purchased
from the proceeds of redemptions within the same fund family, provided (1) the
repurchase occurs within 90 days following the redemption, (2) the redemption
and purchase occur in the same account, and (3) redeemed shares were subject to
a front-end or deferred sales load (i.e. Rights of Reinstatement).
D.A.
Davidson
&.
Co.
(“D.A.
Davidson”)
Shareholders
purchasing fund shares
including existing fund shareholders through a D.A.
Davidson
platform or
account, or through an introducing broker-dealer or independent registered
investment advisor for which D.A.
Davidson provides
trade execution, clearance, and/or custody services, will be eligible for the
following sales charge waivers (front-end sales charge waivers and contingent
deferred, or back-end, sales charge
waivers) and
discounts, which may differ from those disclosed elsewhere in this Fund’s
prospectus or SAI.
◾
Front-End Sales
Charge Waivers on Class A Shares available at D.A.
Davidson
◾
Shares purchased
within the same fund family through a systematic reinvestment of capital gains
and dividend distributions.
◾
Employees and
registered representatives of D.A.
Davidson or its
affiliates and their family members as designated by D.A.
Davidson.
◾
Shares purchased
from the proceeds of redemptions within the same fund family, provided (1) the
repurchase occurs within 90 days following the redemption, (2) the redemption
and purchase occur in the same account, and (3) redeemed shares were subject to
a front-end or deferred sales charge (known as Rights of
Reinstatement).
◾
A shareholder in
the Fund’s Class C shares will have their shares converted at net asset value to
Class A shares (or the appropriate share class) of the Fund if the shares are no
longer subject to a CDSC and the conversion is consistent with D.A.
Davidson’s policies
and procedures.
◾
CDSC Waivers on
Classes A and C shares available at D.A.
Davidson
◾
Death or disability
of the shareholder.
◾
Shares sold as part
of a systematic withdrawal plan as described in the fund’s
prospectus.
◾
Return of excess
contributions from an IRA Account.
◾
Shares sold as part
of a required minimum distribution for IRA or other qualifying retirement
accounts as described in the fund’s prospectus beginning in the calendar year
the shareholder turns age 72.
◾
Shares acquired
through a right of reinstatement.
◾
Front-end sales
charge discounts available at D.A.
Davidson:
breakpoints, rights of accumulation and/or letters of intent
◾
Breakpoints as
described in this prospectus.
◾
Rights of
accumulation which entitle shareholders to breakpoint discounts will be
automatically calculated based on the aggregated holding of fund family assets
held by accounts within the purchaser’s household at D.A.
Davidson. Eligible
fund family assets not held at D.A.
Davidson may be
included in the calculation of rights of accumulation only if the shareholder
notifies his or her financial advisor about such assets.
◾
Letters of intent
which allow for breakpoint discounts based on anticipated purchases within a
fund family, over a 13-month time period. Eligible fund family assets not held
at D.A.
Davidson may be
included in the calculation of letters of intent only if the shareholder
notifies his or her financial advisor about such assets.
Edward
D.
Jones
& Co., L.P.
(“Edward
Jones”)
Policies
Regarding Transactions Through Edward Jones
The
following information has been provided by Edward Jones:
Effective
on or after December 15, 2023, the following information supersedes prior
information with respect to transactions and positions held in fund shares
through an Edward Jones system. Clients of Edward Jones (also referred to as
“shareholders”) purchasing fund shares on the Edward Jones commission and
fee-based platforms are eligible only for the following sales charge discounts
(also referred to as “breakpoints”) and waivers, which can differ from discounts
and waivers described elsewhere in the mutual fund prospectus or statement of
additional information (“SAI”) or through another broker-dealer. In all
instances, it is the shareholder's responsibility to inform Edward Jones at the
time of purchase of any relationship, holdings of Invesco funds, or other facts
qualifying the purchaser for discounts or waivers. Edward Jones can ask for
documentation of such circumstance. Shareholders should contact Edward Jones if
they have questions regarding their eligibility for these discounts and
waivers.
◾
Breakpoints
◾
Breakpoint pricing,
otherwise known as volume pricing, at dollar thresholds as described in the
prospectus.
◾
Rights of
Accumulation (“ROA”)
◾
The applicable
sales charge on a purchase of Class A shares is determined by taking into
account all share classes (except certain money market funds and any assets held
in group retirement plans) of
A-5 The
Invesco Funds
Invesco funds held
by the shareholder or in an account grouped by Edward Jones with other accounts
for the purpose of providing certain pricing considerations (“pricing groups”).
If grouping assets as a shareholder, this includes all share classes held on the
Edward Jones platform and/or held on another platform. The inclusion of eligible
fund family assets in the ROA calculation is dependent on the shareholder
notifying Edward Jones of such assets at the time of calculation. Money market
funds are included only if such shares were sold with a sales charge at the time
of purchase or acquired in exchange for shares purchased with a sales
charge.
◾
The employer
maintaining a SEP IRA plan and/or SIMPLE IRA plan may elect to establish or
change ROA for the IRA accounts associated with the plan to a plan-level
grouping as opposed to including all share classes at a shareholder or pricing
group level.
◾
ROA is determined
by calculating the higher of cost minus redemptions or market value (current
shares x NAV).
◾
Letter of Intent
(“LOI”)
◾
Through a LOI,
shareholders can receive the sales charge and breakpoint discounts for purchases
shareholders intend to make over a 13-month period from the date Edward Jones
receives the LOI.
The
LOI is determined
by
calculating the
higher of cost or market value
of
qualifying holdings at LOI initiation in combination with the value that the
shareholder intends to buy over a 13-month period to calculate the front-end
sales charge and any breakpoint
discounts.
Each
purchase the shareholder makes during that 13-month
period
will receive the sales charge and
breakpoint
discount
that
applies to the total amount.
The
inclusion of eligible fund family assets in the LOI calculation is dependent on
the shareholder notifying Edward Jones of such assets at the time of
calculation. Purchases made before the LOI is received by Edward Jones are not
adjusted under the LOI and will not reduce the sales charge previously paid.
Sales charges will be adjusted if LOI is not met.
◾
If the employer
maintaining a SEP IRA plan and/or SIMPLE IRA plan has elected to establish or
change ROA for the IRA accounts associated with the plan to a plan-level
grouping, LOIs will also be at the plan-level and may only be established by the
employer.
◾
Sales Charge
Waivers
Sales charges are
waived for the following shareholders and in the following
situations:
◾
Associates of
Edward Jones and its affiliates and other accounts in the same pricing group (as
determined by Edward Jones under its policies and procedures) as the associate.
This waiver will continue for the remainder of the associate's life if the
associate retires from Edward Jones in good-standing and remains in good
standing pursuant to Edward Jones' policies and procedures.
◾
Shares purchased in
an Edward Jones fee-based program.
◾
Shares purchased
through reinvestment of capital gains distributions and dividend reinvestment.
Shares purchased from the proceeds of redeemed shares of the same fund
family
so
long
as the
following conditions are
met:
the proceeds are from the sale of shares within 60 days of the purchase, the
sale and purchase
are
made from a share
class
that charges a
front
load and one of the following:
•
The redemption and
repurchase occur in the same account.
•
The redemption
proceeds are used to process an: IRA contribution, excess contributions,
conversion, recharacterizing of contributions, or distribution, and the
repurchase is done in an account within the same Edward Jones grouping for
ROA.
◾
Shares exchanged
into Class A shares from another share class so long as the exchange is into the
same fund and was initiated at the discretion of Edward Jones. Edward Jones is
responsible for any remaining CDSC due to the fund company, if applicable. Any
future purchases are subject to the applicable sales charge as disclosed in the
prospectus.
◾
Exchanges from
Class C shares to Class A shares of the same fund,
generally, in the
84th month following the anniversary of the purchase date
or
earlier at the discretion of Edward Jones.
◾
Purchases of Class
529-A shares through a rollover from either another
education savings
plan or a security used for qualified distributions.
◾
Purchases of Class
529 shares made for recontribution of refunded amounts.
◾
Contingent Deferred
Sales Charge (“CDSC”) Waivers
If the shareholder
purchases shares that are subject to a CDSC and those shares are redeemed before
the CDSC is expired, the shareholder is responsible to pay the CDSC except in
the following conditions:
◾
The death or
disability of the shareholder.
◾
Systematic
withdrawals with up to 10%
per
year of the account value.
◾
Return of excess
contributions from an Individual Retirement Account (IRA).
◾
Shares redeemed as
part of a required minimum distribution for IRA and retirement accounts if the
redemption is taken in or after the year the shareholder reaches qualified age
based on applicable IRS regulations.
◾
Shares redeemed to
pay Edward Jones fees or costs in such cases where the transaction is initiated
by Edward Jones.
◾
Shares exchanged in
an Edward Jones fee-based program.
◾
Shares acquired
through NAV reinstatement.
◾
Shares redeemed at
the discretion of Edward Jones for Minimums Balances, as described
below.
Other
Important Information Regarding Transactions Through Edward
Jones
Minimum
Purchase Amounts
•
Initial purchase
minimum: $250
•
Subsequent purchase
minimum: none
Minimum
Balances
•
Edward Jones has
the right to redeem at its
discretion
fund
holdings with a balance of $250 or less. The following are examples of accounts
that are not included in this policy:
○
A fee-based account
held on an Edward Jones platform
○
A 529 account held
on an Edward Jones platform
○
An account with an
active systematic investment plan or LOI
Exchanging
Share Classes
•
At any time it
deems necessary, Edward Jones has the authority
to
exchange at NAV
a
shareholder's holdings in a fund to Class A shares of the same fund.
Janney
Montgomery Scott LLC (“Janney”)
Shareholders
purchasing shares through a Janney
brokerage account
will be eligible for the following load waivers (front-end sales charge waivers
and contingent deferred sales charge (“CDSC”), or back-end sales charge,
waivers) and discounts, which may differ from those disclosed elsewhere in this
fund’s Prospectus or SAI.
◾
Front-end sales
charge waivers on Class A shares available at Janney
◾
Shares purchased
through reinvestment of capital gains distributions and dividend reinvestment
when purchasing shares of the same fund (but not any other fund within the fund
family).
◾
Shares purchased by
employees and registered representatives of Janney or its affiliates and their
family members as designated by Janney.
◾
Shares purchased
from the proceeds of redemptions within the same fund family, provided (1) the
repurchase occurs within ninety (90) days following the redemption, (2) the
redemption and purchase occur in the same account, and (3) redeemed shares were
subject to a front-end or deferred sales load (i.e., right of
reinstatement).
◾
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b)
plans, profit sharing and money purchase pension plans and defined benefit
plans). For purposes of this provision, employer-sponsored retirement plans do
not include SEP IRAs, Simple IRAs, SAR-SEPs or Keogh plans.
◾
Shares acquired
through a right of reinstatement.
◾
Class C shares that
are no longer subject to a contingent deferred sales charge and are converted to
Class A shares of the same fund pursuant to Janney’s policies and
procedures.
A-6 The
Invesco Funds
◾
CDSC waivers on
Class A and C shares available at Janney
◾
Shares sold upon
the death or disability of the shareholder.
◾
Shares sold as part
of a systematic withdrawal plan as described in the fund’s
Prospectus.
◾
Shares purchased in
connection with a return of excess contributions from an IRA
account.
◾
Shares sold as part
of a required minimum distribution for IRA and other retirement accounts due to
the shareholder reaching the qualified age based on applicable IRS regulations
as described in the fund’s Prospectus.
◾
Shares sold to pay
Janney fees but only if the transaction is initiated by Janney.
◾
Shares acquired
through a right of reinstatement.
◾
Shares exchanged
into the same share class of a different fund.
◾
Front-end sales
charge discounts available at Janney: breakpoints, rights of accumulation,
and/or letters of intent
◾
Breakpoints as
described in the fund’s Prospectus.
◾
Rights of
accumulation (“ROA”), which entitle shareholders to breakpoint discounts, will
be automatically calculated based on the aggregated holding of fund family
assets held by accounts within the purchaser’s household at Janney. Eligible
fund family assets not held at Janney may be included in the ROA calculation
only if the shareholder notifies his or her financial advisor about such
assets.
◾
Letters of intent
which allow for breakpoint discounts based on anticipated purchases within a
fund family, over a 13-month time period. Eligible fund family assets not held
at Janney Montgomery Scott may be included in the calculation of letters of
intent only if the shareholder notifies his or her financial advisor about such
assets.
J.P.
Morgan
Securities
LLC
If you purchase or
hold fund shares through an applicable
J.P.
Morgan
Securities LLC brokerage account,
you
will be eligible for the following sales charge waivers (front-end sales charge
waivers and contingent deferred
sales
charge (“CDSC”), or back-end sales charge, waivers),
share
class conversion policy and discounts, which may differ from those disclosed
elsewhere in this fund’s prospectus or Statement of Additional Information
(“SAI”).
Front-end
sales
charge waivers on Class A shares available at J.P. Morgan Securities
LLC
◾
Shares exchanged
from Class C (i.e., level-load) shares that are no longer subject to a CDSC and
are exchanged into Class A shares of the same fund pursuant to J.P. Morgan
Securities LLC’s share class exchange policy.
◾
Qualified
employer-sponsored defined contribution and defined benefit retirement plans,
nonqualified deferred compensation plans,
other
employee benefit plans and trusts used to fund those plans. For purposes of this
provision, such plans do not include SEP IRAs,
SIMPLE
IRAs,
SAR-SEPs or
501(c)(3)
accounts.
◾
Shares of funds
purchased through J.P.
Morgan
Securities LLC Self-Directed Investing accounts.
◾
Shares purchased
through rights of reinstatement.
◾
Shares purchased
through reinvestment of capital gains distributions and dividend reinvestment
when purchasing shares of the same fund (but not any other fund within the fund
family).
◾
Shares purchased by
employees and registered representatives of J.P.
Morgan
Securities
LLC
or its
affiliates and
their
spouse or financial dependent as defined by J.P. Morgan Securities
LLC.
Class
C to Class A share conversion
◾
A shareholder in
the fund’s Class C shares will have their shares converted by J.P.
Morgan
Securities LLC to Class A shares (or the appropriate share class) of the same
fund if the shares are no longer subject to a CDSC and the conversion is
consistent with J.P.
Morgan
Securities LLC’s policies and procedures.
CDSC
waivers
on Class A and C Shares available at J.P. Morgan Securities LLC
◾
Shares sold upon
the death or disability of the shareholder.
◾
Shares sold as part
of a systematic withdrawal plan as described in the fund’s
prospectus.
◾
Shares purchased in
connection with a return of excess contributions from an IRA
account.
◾
Shares sold as part
of a required minimum distribution for IRA and retirement accounts pursuant to
the Internal Revenue Code.
◾
Shares acquired
through a right of reinstatement.
Front-end
load discounts
available at J.P. Morgan Securities LLC: breakpoints, rights of accumulation
& letters of intent
◾
Breakpoints as
described in the prospectus.
◾
Rights of
Accumulation (“ROA”) which entitle shareholders to breakpoint discounts as
described in the fund’s prospectus will be automatically calculated based on the
aggregated holding of fund family assets held by accounts within the purchaser’s
household at J.P.
Morgan
Securities LLC.
Eligible fund
family assets not held at J.P.
Morgan
Securities LLC (including 529 program holdings, where applicable) may be
included in the ROA calculation only if the shareholder notifies their financial
advisor about such assets.
Letters
of Intent (“LOI”) which allow for breakpoint discounts based on anticipated
purchases within a fund family, through J.P. Morgan Securities LLC, over a
13-month period of time (if applicable).
Merrill
Lynch
(“Merrill”)
Purchases or sales
of front-end (i.e. Class A) or level-load (i.e., Class C) mutual fund shares
through a Merrill platform or account will be eligible only for the following
sales load waivers (front-end,
contingent
deferred,
or
back-end waivers) and discounts, which differ from those disclosed elsewhere in
this prospectus or SAI. Purchasers will have to buy mutual fund shares directly
from the mutual fund company or through another intermediary to be eligible for
waivers or discounts not listed below.
It
is the client’s responsibility to notify Merrill at the time of purchase or
sale
of any relationship or other facts that qualify the transaction for a waiver or
discount. A Merrill representative may ask for reasonable documentation of such
facts and Merrill may condition the granting of a waiver or discount on the
timely receipt of such documentation.
Additional
information on waivers and discounts is available in the Merrill Sales Load
Waiver and Discounts Supplement (the “Merrill SLWD Supplement”) and in the
Mutual Fund Investing at Merrill pamphlet at ml.com/funds. Clients are
encouraged to review these documents and speak with their financial advisor to
determine whether a transaction is eligible for a waiver or
discount.
◾
Front-end Load
Waivers Available at Merrill
◾
Shares of mutual
funds available for purchase by employer-sponsored retirement, deferred
compensation, and employee benefit plans (including health savings accounts) and
trusts used to fund those plans provided the shares are not held in a
commission-based brokerage account and shares are held for the benefit of the
plan. For purposes of this provision, employer-sponsored retirement plans do not
include SEP IRAs, Simple IRAs, SAR-SEPs or Keogh plans.
◾
Shares purchased
through a Merrill investment advisory program.
◾
Brokerage class
shares exchanged from advisory class shares due to the holdings moving from a
Merrill investment advisory program to a Merrill brokerage account.
◾
Shares purchased
through the Merrill Edge Self-Directed platform.
◾
Shares purchased
through the systematic reinvestment of capital gains distributions and dividend
reinvestment when purchasing shares of the same mutual fund in the same
account.
◾
Shares exchanged
from level-load shares to front-end load shares of the same mutual fund in
accordance with the description in the Merrill SLWD Supplement.
◾
Shares purchased by
eligible employees of Merrill or its affiliates and their family members who
purchase shares in accounts within the employee’s Merrill Household (as defined
in the Merrill SLWD Supplement).
◾
Shares purchased by
eligible persons associated with the fund as defined in this prospectus (e.g.
the fund’s officers or trustees).
A-7 The
Invesco Funds
◾
Shares purchased
from the proceeds of a mutual fund redemption
in
front-end load shares provided (1) the repurchase is in a mutual fund within the
same fund family;
(2)
the repurchase occurs within 90 calendar days from the redemption trade date,
and (3) the redemption and purchase occur in the same account
(known
as
Rights of Reinstatement).
Automated
transactions
(i.e.
systematic
purchases and withdrawals) and purchases made after
shares
are automatically sold to pay Merrill’s account maintenance fees are not
eligible for Rights of Reinstatement.
◾
Contingent Deferred
Sales Charge (“CDSC”) Waivers on Front-end, Back-end, and Level Load Shares
Available at Merrill
◾
Shares sold due to
the client’s death or disability (as defined by Internal Revenue Code Section
22(e)(3)).
◾
Shares sold
pursuant to a systematic withdrawal program subject to Merrill’s maximum
systematic withdrawal limits as described in the Merrill SLWD
Supplement.
◾
Shares sold due to
return of excess contributions from an IRA account.
◾
Shares sold as part
of a required minimum distribution for IRA and retirement accounts due to the
investor reaching the qualified age based on applicable IRS
regulation.
◾
Front-end or
level-load shares held in commission-based, non-taxable retirement brokerage
accounts (e.g. traditional, Roth, rollover, SEP IRAs, Simple IRAs, SAR-SEPs or
Keogh plans) that are transferred to fee-based accounts or platforms and
exchanged for a lower cost share class of the same mutual fund.
◾
Front-end Load
Discounts Available at Merrill: Breakpoints, Rights of Accumulation &
Letters of Intent
◾
Breakpoint
discounts, as described in this prospectus, where the sales load is at or below
the maximum sales load that Merrill permits to be assessed to a front-end load
purchase, as described in the Merrill SLWD Supplement.
◾
Rights of
Accumulation (ROA), as described in the Merrill SLWD Supplement, which entitle
clients to breakpoint discounts based on the aggregated holdings of mutual fund
family assets held in accounts in their Merrill Household.
◾
Letters of Intent
(LOI), which allow for breakpoint discounts on eligible new purchases based on
anticipated future eligible purchases within a fund family at Merrill, in
accounts within your Merrill Household, as further described in the Merrill SLWD
Supplement.
Morgan
Stanley Wealth Management
Shareholders
purchasing Fund shares through a Morgan
Stanley Wealth Management transactional
brokerage account will be eligible only for the following front-end sales charge
waivers with respect to Class A shares,
which
may differ from and may be more limited than those disclosed elsewhere in this
Fund’s Prospectus or SAI.
◾
Front-end Sales
Charge Waivers on Class A Shares available at Morgan Stanley Wealth
Management
◾
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b)
plans, profit sharing and money purchase pension plans and defined benefit
plans). For purposes of this provision, employer-sponsored retirement plans do
not include SEP IRAs, Simple IRAs,
SAR-SEPs or Keogh
plans;
◾
Morgan Stanley
employee and employee-related accounts according to Morgan Stanley’s account
linking rules;
◾
Shares purchased
through reinvestment of dividends and capital gains distributions when
purchasing shares of the same fund;
◾
Shares purchased
through a Morgan Stanley self-directed brokerage account;
◾
Class C