As
Filed with the United States Securities and Exchange Commission on December
15, 2022 .
1933
Act Registration No. 333-36074
1940 Act Registration
No. 811-09913
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 20549
FORM
N-1A
|
REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OF 1933 |
☒
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Pre-Effective
Amendment No. |
☐
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Post-Effective
Amendment No. 174 |
☒
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and/or
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REGISTRATION
STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 |
☐
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Amendment
No. 175 |
☒
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(Exact
Name of Registrant as Specified in Charter)
11
Greenway Plaza, Suite 1000, Houston, TX 77046-1173
(Address
of Principal Executive Office)
Registrant’s
Telephone Number, including Area Code: (713) 626-1919
Jeffrey
H. Kupor, Esquire
11 Greenway Plaza, Suite 1000, Houston, TX 77046
11 Greenway Plaza, Suite 1000, Houston, TX 77046
(Name
and Address of Agent for Service)
Copy
to:
|
Taylor
V. Edwards, Esquire
Invesco
Advisers, Inc.
225
Liberty Street, 15th FL
New
York, NY 10281-1087 |
Matthew
R. DiClemente, Esquire
Mena
M. Larmour, Esquire
Stradley
Ronon Stevens & Young, LLP
2005
Market Street, Suite 2600
Philadelphia,
Pennsylvania 19103-7018 |
Approximate
Date of Proposed Public Offering: As soon as practicable after the effective date of this Amendment.
|
It
is proposed that this filing will become effective (check appropriate box) | |
|
__
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immediately
upon filing pursuant to paragraph (b) |
|
X
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on
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__
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60
days after filing pursuant to paragraph (a) |
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on
(date) pursuant to paragraph (a) |
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__
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75
days after filing pursuant to paragraph (a)(2) |
|
__
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on
(date) pursuant to paragraph (a)(2) of rule 485 |
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If
appropriate, check the following box: | |
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__
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This
post-effective amendment designates a new effective date for a previously filed post-effective amendment. |
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.
Table of Contents
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A-1
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A-1
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A-2
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A-3
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A-3
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A-10
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A-11
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A-13
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A-15
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A-17
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A-17
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A-18
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A-21
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A-23
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A-25
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A-26
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A-27
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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:
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A
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C
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R
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Y
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R5
|
R6
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Maximum
Sales Charge (Load) Imposed on
Purchases
(as a percentage of offering price) |
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Maximum
Deferred Sales Charge (Load) (as a
percentage
of original purchase price or
redemption
proceeds, whichever is less) |
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Class:
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A
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C
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R
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Y
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R5
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R6
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Management
Fees |
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Distribution
and/or Service (12b-1) Fees |
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Other
Expenses |
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Total
Annual Fund Operating Expenses |
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1
The
Example assumes that you invest $10,000 in the Fund for the time periods
indicated and then redeem all of your shares at the end of those periods. This Example does not include commissions and/or other forms
of compensation that investors may pay on transactions in Class Y and Class R6 shares. The Example also assumes that your investment has
a 5% return each year and that the Fund’s operating expenses remain the same.
Although
your actual costs may be higher or lower, based on these assumptions,
your costs would be:
|
|
1
Year |
3
Years |
5
Years |
10
Years |
|
Class
A |
$
|
$
|
$
|
$
|
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| ||||
|
Class
C |
$
|
$
|
$
|
$
|
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| ||||
|
Class
R |
$
|
$
|
$
|
$
|
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| ||||
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Class
Y |
$
|
$
|
$
|
$
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Class
R5 |
$
|
$
|
$
|
$
|
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Class
R6 |
$
|
$
|
$
|
$
|
|
| ||||
|
|
1
Year |
3
Years |
5
Years |
10
Years |
|
Class
A |
$
|
$
|
$
|
$
|
|
| ||||
|
Class
C |
$
|
$
|
$
|
$
|
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| ||||
|
Class
R |
$
|
$
|
$
|
$
|
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| ||||
|
Class
Y |
$
|
$
|
$
|
$
|
|
| ||||
|
Class
R5 |
$
|
$
|
$
|
$
|
|
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Class
R6 |
$
|
$
|
$
|
$
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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. 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
such as Bloomberg. 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 investment adviser, Invesco Advisers, Inc. (Invesco or the Adviser),
uses 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 Adviser uses 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 Adviser uses 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 Adviser seeks to invest in companies with attractive growth outlooks at compelling valuation
levels.
The
Adviser considers 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
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, natural or environmental disasters, widespread disease or other public health issues, war, military conflict, acts of terrorism
or adverse investor sentiment generally. 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.
Investing
in Stocks Risk. The value of the Fund’s portfolio may be
affected by changes in the stock markets. Stock markets may experience significant short-term volatility and may fall 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. 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,
and their returns may vary, sometimes significantly, from the overall securities market.
Growth
Investing Risk. If a growth company’s earnings or stock price
fails to increase as anticipated, or if its business plans do not produce the expected results, the value of its securities may decline
sharply. Growth companies may be newer or smaller companies that may experience greater stock price fluctuations and risks of loss than
larger, more established companies. Newer growth companies tend to retain a large part of their earnings for research, development or
investments in capital assets. Therefore, they may not pay any dividends for some time. Growth investing has gone in and out of favor
during past market cycles and is likely to continue to do so. During periods when growth investing is out of favor or when markets are
unstable, it may be more difficult to sell growth company securities at an acceptable price. Growth stocks may also be more volatile than
other securities because of investor speculation.
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. 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.
Foreign
Securities Risk. The Fund's foreign investments may be adversely
affected by political and social instability, changes in economic or taxation policies, difficulty in enforcing obligations, decreased
liquidity or increased volatility. 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. There may be less public information available about foreign companies than U.S. companies, making it difficult
to evaluate those foreign companies. 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.
Emerging
Market Securities Risk. Emerging markets (also referred to as developing
markets) are generally subject to greater market volatility, political, social and economic instability, uncertain trading markets and
more governmental limitations on foreign investment than more developed markets. In addition, companies operating in emerging markets
may be subject to lower trading volume and greater price fluctuations than companies in more developed markets. Such countries’
economies may be more dependent on relatively few industries or investors that may be highly vulnerable to local and global changes. 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. As a result, information, including financial information, about
such companies may be less available and reliable, which can impede the Fund’s ability to evaluate such companies. Securities law
and the enforcement of systems of taxation in many emerging market countries may change quickly and unpredictably, and the ability to
bring and enforce actions (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), or to obtain information needed to pursue or enforce such actions, may be limited. In addition, the ability of foreign
entities to participate in privatization programs of certain developing or emerging market countries may be limited by local law. Investments
in emerging market securities may be subject to additional transaction costs, delays in settlement procedures, unexpected market closures,
and lack of timely information.
Non-Diversification
Risk. The
Fund is non-diversified and 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. A change in the value of one or a few issuers’ securities will therefore affect the
value of the Fund more than if it was 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. Additionally, legislative,
regulatory, or tax developments may adversely affect management of the Fund and, therefore, the ability of the Fund to achieve its investment
objective.
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.
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
|
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|
-
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|
-
|
Average Annual Total Returns (for the periods ended December 31, 2021)
|
|
Inception
Date
|
1
Year
|
5
Years
|
10
Years
|
|
Class
A |
|
|
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|
|
Return
Before Taxes |
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Return
After Taxes on Distributions |
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Return
After Taxes on Distributions and Sale of
Fund
Shares |
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Class
C |
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Class
R |
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Class
Y |
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Class
R5 |
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Class
R61 |
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|
Russell
1000®
Growth Index for
fees, expenses or taxes) |
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S&P
500®
Index (reflects no deduction for fees,
expenses
or taxes) |
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|
Lipper
Large-Cap Growth Funds Index |
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|
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1
Management
of the Fund
Investment
Adviser: Invesco Advisers, Inc.
|
Portfolio
Managers |
Title
|
Length
of Service on the Fund |
|
Ronald
J. Zibelli, Jr., CFA |
Portfolio
Manager (lead) |
2022
|
|
| ||
|
Ido
Cohen |
Portfolio
Manager |
2010
|
|
| ||
|
Erik
Voss, CFA |
Portfolio
Manager |
2010
|
|
| ||
Effective
on or about June 30, 2023, Mr. Voss will no longer serve as a Portfolio
Manager of the Fund.
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
3 Invesco
American Franchise Fund
broker-dealer
or other intermediary and your salesperson or financial adviser to recommend the Fund over another investment. Ask your salesperson or
financial adviser or visit your financial intermediary’s website for more information.
Investment Objective(s), Strategies, Risks and Portfolio Holdings
Objective(s)
and Strategies
The
Fund’s investment objective is 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. 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 such as Bloomberg. 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 largest and smallest capitalized companies 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 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.
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
Adviser uses 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 Adviser uses 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 Adviser uses 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 Adviser seeks to invest in companies with attractive growth outlooks at compelling valuation
levels.
The
Adviser considers 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 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.
◾
COVID-19.
The “COVID-19” strain of coronavirus has resulted in instances of market closures and dislocations, extreme volatility, liquidity
constraints and increased trading costs. Efforts to contain its spread have resulted in travel restrictions, disruptions of healthcare
systems, business operations (including business closures) and supply chains, layoffs, lower consumer demand and employee availability,
and defaults and credit downgrades, among other significant economic impacts that have disrupted global economic
4 Invesco
American Franchise Fund
activity
across many industries. Such economic impacts may exacerbate other pre-existing political, social and economic risks locally or globally
and cause general concern and uncertainty. The full economic impact and ongoing effects of COVID-19 (or other future epidemics or pandemics)
at the macro-level and on individual businesses are unpredictable and may result in significant and prolonged effects on the Fund’s
performance.
Investing
in Stocks Risk. Common stock represents an ownership interest in
a company. It ranks below preferred stock and debt securities in claims for dividends and in claims for assets of the issuer in a liquidation
or bankruptcy. Common stocks may be exchange-traded or over-the-counter securities. Over-the-counter securities may be less liquid than
exchange-traded securities.
The
value of the Fund’s portfolio may be affected by changes in the stock
markets. Stocks and other equity securities fluctuate in price in response to changes to equity markets in general. Stock markets may
experience significant short-term volatility and may fall or rise sharply at times. Adverse events in any part of the equity or fixed-income
markets may have unexpected negative effects on other market segments. Different stock markets may behave differently from each other
and U.S. stock markets may move in the opposite direction from one or more foreign stock markets.
The
prices of individual stocks generally do not all move in the same direction
at the same time. However, individual stock prices tend to go up and down more dramatically than those of certain other types of investments,
such as bonds. A variety of factors can negatively affect the price of a particular company’s stock. These factors may include,
but are not limited to: poor earnings reports, a loss of customers, litigation against the company, general unfavorable performance of
the company’s sector or industry, or changes in government regulations affecting the company or its industry. To the extent that
securities of a particular type are emphasized (for example foreign stocks, stocks of small- or mid-cap companies, growth or value stocks,
or stocks of companies in a particular industry), their 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. 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.
5 Invesco
American Franchise Fund
Such
countries’ economies may be more dependent on relatively few industries
or investors that may be highly vulnerable to local and global changes. Emerging market countries may also have higher rates of inflation
and more rapid and extreme fluctuations in inflation rates and greater sensitivity to interest rate changes. Further, companies in emerging
market countries generally may be subject to less stringent regulatory, disclosure, financial reporting, accounting, auditing and recordkeeping
standards than companies in more developed countries and, as a result, the nature and quality of such information may vary. Information
about such companies may be less available and reliable and, therefore, the ability to conduct adequate due diligence in emerging markets
may be limited which can impede the Fund’s ability to evaluate such companies. In addition, certain emerging market countries have
material limitations on Public Company Accounting Oversight Board (“PCAOB”) inspection, investigation and enforcement capabilities,
which hinder the ability to engage in independent oversight or inspection of accounting firms located in or operating in certain emerging
markets; therefore, 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 1555 Peachtree Street, N.E., Atlanta, Georgia 30309. The Adviser, as successor in interest to multiple
investment advisers, has been an investment adviser since 1976.
Sub-Advisers.
Invesco has entered into one or more Sub-Advisory Agreements with certain affiliates to serve as sub-advisers to the Fund (the Sub-Advisers).
Invesco may appoint the Sub-Advisers from time to time to provide discretionary investment management services, investment advice, and/or
order execution services to the Fund. The Sub-Advisers and the Sub-Advisory Agreements are described in the SAI.
Adviser
Compensation
During
the fiscal year ended August 31, 2022, the Adviser received compensation of 0.57% 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.
◾
Erik
Voss, CFA, Portfolio Manager, who has been responsible for the Fund since 2010 and has been associated with Invesco and/or its affiliates
since 2010.
Effective
on or about June 30, 2023, Mr. Voss will no longer serve as a Portfolio
Manager of the Fund.
A
lead or co-lead manager generally has final authority over all
aspects of the Fund's investment portfolio, including but not limited to, purchases and sales of individual securities, portfolio construction
techniques, portfolio risk assessment, and the management of daily cash flows in accordance with portfolio holdings. The degree to which
a lead or co-lead manager may perform these functions, and the nature of these functions, may change from time to time.
More
information on the portfolio managers may be found at www.invesco.com/us.
The website is not part of this prospectus.
The
Fund's SAI provides additional information about the portfolio managers'
investments in the Fund, a description of the compensation structure and information regarding other accounts managed.
6 Invesco
American Franchise Fund
Other Information
Sales
Charges
Purchases
of Class A shares of the Fund are subject to the maximum 5.50% initial sales charge as listed under the heading “Category I Initial
Sales Charges” in the “Shareholder Account Information—Initial Sales Charges (Class A Shares Only)” section of
the prospectus. Purchases of Class C shares are subject to a contingent deferred sales charge (CDSC) if you sell Class C shares within
one year of purchase; however, the CDSC shall not apply to the purchases of Class C shares where the selling broker-dealer was not paid
a commission at the time of purchase. For more information on CDSCs, see the “Shareholder Account Information—Contingent Deferred
Sales Charges (CDSCs)” section of this prospectus.
Dividends
and Distributions
The
Fund expects, based on its investment objective and strategies, that its distributions, if any, will consist of ordinary income, capital
gains, or some combination of both.
Dividends
The
Fund generally declares and pays dividends from net investment income, if any, 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 08/31/22 |
$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
|
|
Year
ended 08/31/18 |
20.25
|
(0.04)
|
3.97
|
3.93
|
(1.06)
|
23.12
|
20.30
|
10,524,889
|
1.01
|
1.01
|
(0.17)
|
44
|
|
| ||||||||||||
|
Class
C | ||||||||||||
|
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
|
|
Year
ended 08/31/18 |
18.81
|
(0.18)
|
3.66
|
3.48
|
(1.06)
|
21.23
|
19.43
|
401,863
|
1.76
|
1.76
|
(0.92)
|
44
|
|
| ||||||||||||
|
Class
R | ||||||||||||
|
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
|
|
Year
ended 08/31/18 |
19.91
|
(0.09)
|
3.89
|
3.80
|
(1.06)
|
22.65
|
19.99
|
38,537
|
1.26
|
1.26
|
(0.42)
|
44
|
|
| ||||||||||||
|
Class
Y | ||||||||||||
|
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
|
|
Year
ended 08/31/18 |
20.62
|
0.02
|
4.05
|
4.07
|
(1.06)
|
23.63
|
20.63
|
368,991
|
0.76
|
0.76
|
0.08
|
44
|
|
| ||||||||||||
|
Class
R5 | ||||||||||||
|
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
|
|
Year
ended 08/31/18 |
20.66
|
0.03
|
4.05
|
4.08
|
(1.06)
|
23.68
|
20.64
|
86,177
|
0.71
|
0.71
|
0.13
|
44
|
|
| ||||||||||||
|
Class
R6 | ||||||||||||
|
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
|
|
Year
ended 08/31/18 |
20.75
|
0.05
|
4.07
|
4.12
|
(1.06)
|
23.81
|
20.75
|
139,584
|
0.62
|
0.62
|
0.22
|
44
|
|
| ||||||||||||
|
(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
|
0.95%
|
0.95%
|
0.95%
|
0.95%
|
0.95%
|
0.95%
|
0.95%
|
0.95%
|
0.95%
|
0.95%
|
|
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 |
(1.67%)
|
2.31%
|
6.45%
|
10.76%
|
15.25%
|
19.92%
|
24.77%
|
29.83%
|
35.09%
|
40.56%
|
|
End
of Year Balance |
$9,832.73
|
$10,230.95
|
$10,645.30
|
$11,076.44
|
$11,525.03
|
$11,991.80
|
$12,477.47
|
$12,982.80
|
$13,508.61
|
$14,055.71
|
|
Estimated
Annual Expenses |
$641.59
|
$95.30
|
$99.16
|
$103.18
|
$107.36
|
$111.70
|
$116.23
|
$120.94
|
$125.83
|
$130.93
|
|
| ||||||||||
|
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
|
0.95%
|
0.95%
|
0.95%
|
0.95%
|
0.95%
|
0.95%
|
0.95%
|
0.95%
|
0.95%
|
0.95%
|
|
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 |
4.05%
|
8.26%
|
12.65%
|
17.21%
|
21.96%
|
26.90%
|
32.04%
|
37.38%
|
42.95%
|
48.74%
|
|
End
of Year Balance |
$10,405.00
|
$10,826.40
|
$11,264.87
|
$11,721.10
|
$12,195.80
|
$12,689.73
|
$13,203.67
|
$13,738.42
|
$14,294.82
|
$14,873.76
|
|
Estimated
Annual Expenses |
$96.92
|
$100.85
|
$104.93
|
$109.18
|
$113.61
|
$118.21
|
$122.99
|
$127.97
|
$133.16
|
$138.55
|
|
| ||||||||||
|
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
|
1.70%
|
1.70%
|
1.70%
|
1.70%
|
1.70%
|
1.70%
|
1.70%
|
1.70%
|
0.95%
|
0.95%
|
|
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 |
3.30%
|
6.71%
|
10.23%
|
13.87%
|
17.63%
|
21.51%
|
25.52%
|
29.66%
|
34.91%
|
40.37%
|
|
End
of Year Balance |
$10,330.00
|
$10,670.89
|
$11,023.03
|
$11,386.79
|
$11,762.55
|
$12,150.72
|
$12,551.69
|
$12,965.90
|
$13,491.02
|
$14,037.40
|
|
Estimated
Annual Expenses |
$172.81
|
$178.51
|
$184.40
|
$190.48
|
$196.77
|
$203.26
|
$209.97
|
$216.90
|
$125.67
|
$130.76
|
|
| ||||||||||
|
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
|
1.20%
|
1.20%
|
1.20%
|
1.20%
|
1.20%
|
1.20%
|
1.20%
|
1.20%
|
1.20%
|
1.20%
|
|
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 |
3.80%
|
7.74%
|
11.84%
|
16.09%
|
20.50%
|
25.08%
|
29.83%
|
34.77%
|
39.89%
|
45.20%
|
|
End
of Year Balance |
$10,380.00
|
$10,774.44
|
$11,183.87
|
$11,608.86
|
$12,049.99
|
$12,507.89
|
$12,983.19
|
$13,476.55
|
$13,988.66
|
$14,520.23
|
|
Estimated
Annual Expenses |
$122.28
|
$126.93
|
$131.75
|
$136.76
|
$141.95
|
$147.35
|
$152.95
|
$158.76
|
$164.79
|
$171.05
|
|
| ||||||||||
|
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
|
0.70%
|
0.70%
|
0.70%
|
0.70%
|
0.70%
|
0.70%
|
0.70%
|
0.70%
|
0.70%
|
0.70%
|
|
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 |
4.30%
|
8.78%
|
13.46%
|
18.34%
|
23.43%
|
28.74%
|
34.27%
|
40.05%
|
46.07%
|
52.35%
|
|
End
of Year Balance |
$10,430.00
|
$10,878.49
|
$11,346.27
|
$11,834.15
|
$12,343.02
|
$12,873.77
|
$13,427.35
|
$14,004.72
|
$14,606.92
|
$15,235.02
|
|
Estimated
Annual Expenses |
$71.51
|
$74.58
|
$77.79
|
$81.13
|
$84.62
|
$88.26
|
$92.05
|
$96.01
|
$100.14
|
$104.45
|
|
| ||||||||||
|
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
|
0.69%
|
0.69%
|
0.69%
|
0.69%
|
0.69%
|
0.69%
|
0.69%
|
0.69%
|
0.69%
|
0.69%
|
|
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 |
4.31%
|
8.81%
|
13.50%
|
18.39%
|
23.49%
|
28.81%
|
34.36%
|
40.15%
|
46.20%
|
52.50%
|
|
End
of Year Balance |
$10,431.00
|
$10,880.58
|
$11,349.53
|
$11,838.69
|
$12,348.94
|
$12,881.18
|
$13,436.36
|
$14,015.47
|
$14,619.53
|
$15,249.64
|
|
Estimated
Annual Expenses |
$70.49
|
$73.52
|
$76.69
|
$80.00
|
$83.45
|
$87.04
|
$90.80
|
$94.71
|
$98.79
|
$103.05
|
|
| ||||||||||
|
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
|
0.62%
|
0.62%
|
0.62%
|
0.62%
|
0.62%
|
0.62%
|
0.62%
|
0.62%
|
0.62%
|
0.62%
|
|
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 |
4.38%
|
8.95%
|
13.72%
|
18.71%
|
23.90%
|
29.33%
|
35.00%
|
40.91%
|
47.08%
|
53.52%
|
|
End
of Year Balance |
$10,438.00
|
$10,895.18
|
$11,372.39
|
$11,870.50
|
$12,390.43
|
$12,933.13
|
$13,499.60
|
$14,090.89
|
$14,708.07
|
$15,352.28
|
|
Estimated
Annual Expenses |
$63.36
|
$66.13
|
$69.03
|
$72.05
|
$75.21
|
$78.50
|
$81.94
|
$85.53
|
$89.28
|
$93.19
|
|
| ||||||||||
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 all of the Invesco Funds and their share classes that have different fees and expenses.
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 |
|
|
▪ 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) |
A-1 The
Invesco Funds
MCF—12/22
|
Share
Classes |
|
|
|
|
|
Class
A |
Class
C |
Class
R |
Class
Y |
Class
R5 and R6 |
|
|
▪ 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 International Core Equity 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 a specific
Fund may make additional purchases into Class AX and CX, respectively, of such specific Fund. All references in this “Shareholder
Account Information” section of this prospectus to Class A, C or R shares of the Invesco Funds shall include Class AX
(excluding Invesco Government Money Market Fund), or CX shares, respectively, of the Invesco Funds, unless otherwise noted. All references
in this “Shareholder Account Information” section of this prospectus to Invesco Cash Reserve Shares of Invesco Government
Money Market Fund shall include Class AX shares of Invesco Government Money Market Fund, unless otherwise noted.
Class P
Shares
In
addition to the other share classes discussed herein, the Invesco Summit Fund offers Class P shares, which were historically sold
only through the AIM Summit Investors Plans I and II (each a Plan and, collectively, the Summit Plans). Class P shares are sold with
no initial sales charge and have a 12b-1 fee of 0.10%. However, Class P shares are not sold to members of the general public. Only
shareholders who had accounts in the Summit Plans at the close of business on December 8, 2006 may purchase Class P shares and
only until the total of their combined investments in the Summit Plans and in Class P shares directly equals the face amount of their
former Plan under the 30 year extended investment option. The face amount of a Plan is the combined total of all scheduled monthly
investments under the Plan. For a Plan with a scheduled monthly investment of $100.00, the face amount would have been $36,000.00 under
the 30 year extended investment option.
Class R
Shares
Class R
shares are intended for 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 (except for the Invesco Master Loan Fund) are available for use by Employer Sponsored Retirement and Benefit
Plans, held either at the plan level or through omnibus accounts, that generally process no more than one net redemption and one net purchase
transaction each day.
Class
R5 and R6 shares of the Funds are also available to institutional investors.
Institutional investors are: banks, trust companies, collective trust funds, entities acting for the account of a public entity (e.g.,
Taft-Hartley funds, states, cities or government agencies), funds of funds or other pooled investment vehicles, 529 college savings plans,
financial intermediaries and corporations investing for their own accounts, endowments and foundations. For information regarding investment
minimums for Class R5 and R6 shares, please see “Minimum Investments” below.
Class
R6 shares of the Funds are also available through an intermediary that
has agreed with Invesco Distributors, Inc. to make such shares
A-2 The
Invesco Funds
available
for use in retail omnibus accounts that generally process no more than one net redemption and one net purchase transaction each day.
The
Invesco Master Loan Fund is only available for purchase by other Funds
in the Invesco fund family and other Invesco pooled investment vehicles.
Shareholders
eligible to purchase Class R6 Shares must meet the requirements
specified by their intermediary. Not all intermediaries offer Class R6 Shares to their customers.
Class S
Shares
Class S
shares are limited to investors who purchase shares with the proceeds received from a systematic contractual investment plan redemption
within the 12 months prior to purchasing Class S shares, and who purchase through an approved financial intermediary that has
an agreement with the distributor to sell Class S shares. Class S shares are not otherwise sold to members of the general public.
An investor purchasing Class S shares will not pay an initial sales charge. The investor will no longer be eligible to purchase additional
Class S shares at that point where the value of the contributions to the prior systematic contractual investment plan combined with
the subsequent Class S share contributions equals the face amount of what would have been the investor’s systematic contractual
investment plan under the 30-year investment option. The face amount of a systematic contractual investment plan is the combined total
of all scheduled monthly investments under that plan. For a plan with a scheduled monthly investment of $100.00, the face amount would
have been $36,000.00 under the 30-year extended investment option.
Class Y
Shares
Class
Y shares are available to (i) investors who purchase through an account that is charged an asset-based fee or commission by a financial
intermediary, including through brokerage platforms, where a broker is acting as the investor’s agent, that may require the payment
by the investor of a commission and/or other form of compensation to that broker, (ii) endowments, foundations, or Employer Sponsored
Retirement and Benefit Plans (with the exception of “Solo 401(k)” Plans and 403(b) custodial accounts held directly at Invesco),
(iii) banks or bank trust departments acting on their own behalf or as trustee or manager for trust accounts, or (iv) any current, former
or retired trustee, director, officer or employee (or immediate family members of a current, former or retired trustee, director, officer
or employee) of any Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
Subject
to any conditions or limitations imposed on the servicing of Class
Y shares by your financial adviser, if you received Class Y shares as a result of a merger or reorganization of a predecessor fund into
any of the Funds, you will be permitted to make additional Class Y share purchases. In addition, you will be permitted to make additional
Class Y shares purchases if you owned Class Y shares in a “Solo 401(k)” Plan or 403(b) custodial account held directly at
Invesco if you held such shares in your account on or prior to May 24, 2019.
Investor
Class Shares
Investor
Class shares are sold with no initial sales charge and have a maximum 12b-1 fee of 0.25%. Only the following persons may purchase Investor
Class shares:
◾
Investors
who established accounts prior to April 1, 2002, in Investor Class shares with Invesco Distributors, Inc. (Invesco Distributors) who have
continuously maintained an account in Investor Class shares (this includes anyone listed in the registration of an account, such as a
joint owner, trustee or custodian, and immediate family members of such persons) without a designated intermediary. These investors are
referred to as “Investor Class grandfathered investors.”
◾
Customers
of a financial intermediary that has had an agreement with the Funds’ distributor or any Funds that offered Investor Class shares
prior to April 1, 2002, that has continuously maintained such agreement. These intermediaries are referred to as “Investor
Class grandfathered intermediaries.”
◾
Any
current, former or retired trustee, director, officer or employee (or immediate family member of a current, former or retired trustee,
director, officer or employee) of any Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
For
additional shareholder eligibility requirements with respect to Invesco
Premier Portfolio, please see “Shareholder Account Information – Purchasing Shares and Shareholder Eligibility – Invesco
Premier Portfolio.”
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.
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 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
A-4 The
Invesco Funds
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.
Merrill
Lynch
Shareholders
purchasing Fund shares through a Merrill
Lynch platform
or account will be eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at Merrill Lynch
◾
Employer-sponsored
retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to fund those plans,
provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the plan;
◾
Shares
purchased by a 529 Plan (does not include 529 Plan unit or 529-specific share classes or equivalents);
◾
Shares
purchased through a Merrill Lynch affiliated investment advisory program;
◾
Shares
exchanged due to the holdings moving from a Merrill Lynch affiliated investment advisory program to a Merrill Lynch brokerage (non-advisory)
account pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers;
◾
Shares
purchased by third party investment advisors on behalf of their advisory clients through Merrill Lynch’s platform;
◾
Shares
of funds purchased through the Merrill Edge Self-Directed platform (if applicable);
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not
any other fund within the fund family);
◾
Shares
exchanged from Class C (i.e.
level-load) shares of the same fund pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers;
◾
Employees
and registered representatives of Merrill Lynch or its affiliates and their family members;
◾
Directors
or Trustees of the Fund, and employees of the Fund’s investment adviser or any of its affiliates, as described in this prospectus;
and
◾
Eligible
shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days
following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to
a front-end or deferred sales load (known as Rights of Reinstatement). Automated transactions (i.e. systematic purchases and withdrawals)
and purchases made after shares are automatically sold to pay Merrill Lynch’s account maintenance fees are not eligible for reinstatement.
◾
CDSC
Waivers on A and C Shares available at Merrill Lynch
◾
Death
or disability of the shareholder;
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund’s prospectus;
◾
Return
of excess contributions from an IRA Account;
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts pursuant to the Internal Revenue Code;
◾
Shares
sold to pay Merrill Lynch fees but only if the transaction is initiated by Merrill Lynch;
◾
Shares
acquired through a right of reinstatement;
◾
Shares
held in retirement brokerage accounts, that are converted to a lower cost share class due to transfer to a fee based account or platform
(applicable to A and C shares only); and
◾
Shares
received through an exchange due to the holdings moving from a Merrill Lynch affiliated investment advisory program to a Merrill Lynch
brokerage (non-advisory) account pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers.
◾
Front-end
load Discounts Available at Merrill Lynch: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this prospectus;
◾
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts as described in the Fund’s prospectus will be automatically
calculated based on the aggregated holding of fund family assets held by accounts (including 529 program holdings, where applicable) within
the purchaser’s household at Merrill Lynch. Eligible fund family assets not held at Merrill Lynch may be included in the ROA calculation
only if the shareholder notifies his or her financial advisor about such assets; and
◾
Letters
of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Merrill Lynch, over
a 13-month period of time (if applicable).
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).
A-5 The
Invesco Funds
Morgan
Stanley Wealth Management
Shareholders
purchasing Fund shares through a Morgan Stanley
Wealth Management transactional brokerage account will be eligible
only for the following front-end sales charge waivers with respect to Class A shares, which may differ from and may be more limited than
those disclosed elsewhere in this Fund’s Prospectus or SAI.
◾
Front-end
Sales Charge Waivers on Class A Shares available at Morgan Stanley Wealth Management
◾
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and
defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs, SAR-SEPs
or Keogh plans;
◾
Morgan
Stanley employee and employee-related accounts according to Morgan Stanley’s account linking rules;
◾
Shares
purchased through reinvestment of dividends and capital gains distributions when purchasing shares of the same fund;
◾
Shares
purchased through a Morgan Stanley self-directed brokerage account;
◾
Class
C (i.e., level-load) shares that are no longer subject to a contingent deferred sales charge and are converted to Class A shares of the
same fund pursuant to Morgan Stanley Wealth Management’s share class conversion program; and
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (i) the repurchase occurs within 90 days following the
redemption, (ii) the redemption and purchase occur in the same account, and (iii) redeemed shares were subject to a front-end or deferred
sales charge.
Raymond
James Financial Services, Inc.
Shareholders
purchasing Fund shares through a Raymond
James Financial Services, Inc., Raymond James affiliates and each
entity’s affiliates (Raymond James) platform or account, or through an introducing broker-dealer or independent registered investment
adviser for which Raymond James provides trade execution, clearance, and/or custody services, will be eligible only for the following
load waivers (front-end sales charge waivers and contingent deferred, or back-end, sales charge waivers) and discounts, which may differ
from those disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
sales load waivers on Class A shares available at Raymond James
◾
Shares
purchased in an investment advisory program.
◾
Shares
purchased within the same fund family through a systematic reinvestment of capital gains distributions and dividend distributions.
◾
Employees
and registered representatives of Raymond James or its affiliates and their family members as designated by Raymond James.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (known as Rights of Reinstatement).
◾
A
shareholder in the Fund’s Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate
share class) of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures
of Raymond James.
◾
CDSC
Waivers on Classes A and C shares available at Raymond James
◾
Death
or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the fund’s prospectus.
◾
Return
of excess contributions from an IRA Account.
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based
on applicable IRS regulations as described in the fund’s prospectus.
◾
Shares
sold to pay Raymond James fees but only if the transaction is initiated by Raymond James.
◾
Shares
acquired through a right of reinstatement.
◾
Front-end
load discounts available at Raymond James: breakpoints, rights of accumulation, and/or letters of intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of
fund family assets held by accounts within the purchaser’s household at Raymond James. Eligible fund family assets not held at Raymond
James may be included in the calculation of rights of accumulation only if the shareholder notifies his or her financial advisor about
such assets.
◾
Letters
of intent which allow for breakpoint discounts based on anticipated purchases within a fund family, over a 13-month time period. Eligible
fund family assets not held at Raymond James may be included in the calculation of letters of intent only if the shareholder notifies
his or her financial advisor about such assets.
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.
A-6 The
Invesco Funds
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.
◾
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.
Oppenheimer
& Co. Inc. (“OPCO”)
Shareholders
purchasing Fund shares through an OPCO
platform or account are eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund's prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at OPCO
◾
Employer-sponsored
retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to
fund
those plans, provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the
plan
◾
Shares
purchased by or through a 529 Plan
◾
Shares
purchased through an OPCO affiliated investment advisory program
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not
any other fund within the fund family)
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (known as Rights of Reinstatement).
◾
A
shareholder in the Fund's Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate share
class) of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures of OPCO
◾
Employees
and registered representatives of OPCO or its affiliates and their family members
◾
Directors
or Trustees of the Fund, and employees of the Fund's investment adviser or any of its affiliates, as described in this prospectus
◾
CDSC
Waivers on A and C Shares available at OPCO
◾
Death
or disability of the shareholder
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund's prospectus
◾
Return
of excess contributions from an IRA Account
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based
on applicable IRS regulations as described in the prospectus
◾
Shares
sold to pay OPCO fees but only if the transaction is initiated by OPCO Shares acquired through a right of reinstatement
◾
Front-end
load Discounts Available at OPCO: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding
of fund family assets held by accounts within the purchaser's household at OPCO. Eligible fund family assets not held at OPCO may be included
in the ROA calculation only if the shareholder notifies his or her financial advisor about such assets.
Robert
W. Baird & Co. Incorporated (“Baird”)
Shareholders
purchasing fund shares through a Baird
platform or account will only be eligible for the following sales charge waivers (front-end sales charge waivers and CDSC waivers) and
discounts, which may differ from those disclosed elsewhere in this prospectus or the SAI.
◾
Front-End
Sales Charge Waivers on Class A-shares Available at Baird
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund.
◾
Shares
purchased by employees and registered representatives of Baird or its affiliate and their family members as designated by Baird.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales charge (known as rights of reinstatement).
◾
A
shareholder in the Fund’s Class C Shares will have their shares converted at net asset value to Class A shares of the fund if the
shares are no longer subject to CDSC and the conversion is in line with the policies and procedures of Baird.
◾
Employer-sponsored
retirement plans or charitable accounts in a transactional brokerage account at Baird, including 401(k) plans, 457 plans, employer-sponsored
403(b) plans, profit sharing and money
A-7 The
Invesco Funds
purchase
pension plans and defined benefit plans. For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs,
Simple IRAs or SAR-SEPs.
◾
CDSC
Waivers on Classes A and C shares Available at Baird
◾
Shares
sold due to death or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund’s Prospectus.
◾
Return
of excess contributions from an IRA Account.
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching age 72 as described in
the Fund’s prospectus.
◾
Shares
sold to pay Baird fees but only if the transaction is initiated by Baird.
◾
Shares
acquired through a right of reinstatement.
◾
Front-End
Sales Charge Discounts Available at Baird: Breakpoints, Rights of Accumulation and/or letters of intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of
fund family assets held by accounts within the purchaser’s household at Baird. Eligible fund family assets not held at Baird may
be included in the rights of accumulation calculation only if the shareholder notifies his or her financial advisor about such assets.
◾
Letters
of Intent (LOI) allow for breakpoint discounts based on anticipated purchases of within a fund family through Baird, over a 13-month period
of time.
Edward
D. Jones & Co., L.P. (“Edward Jones”)
Policies
Regarding Transactions Through Edward Jones
The
following information has been provided by Edward Jones:
The
following information supersedes prior information with respect to transactions
and positions held in fund shares through an Edward Jones system. Shareholders purchasing Fund shares through the Edward
Jones commission
and fee-based platforms will be eligible for the following load waivers (front- end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund's prospectus or statement of additional
information (“SAI”). 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 (including holdings of 529 Plans where Invesco serves as primary distributor), 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.
◾
Front-end
sales load waivers on Class A shares available at Edward Jones
◾
Associates
of Edward Jones and its affiliates and their family members who are 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: 1) the proceeds are
from the sale of shares within 60 days of the purchase, and 2) the sale and purchase are made in the same share class and the same account
or the purchase is made in an individual retirement account with proceeds from liquidations in a non-retirement account.
◾
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.
◾
CDSC
Waivers on Classes A and C shares available at Edward Jones
◾
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
sold 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 the qualified age based on applicable IRS regulations.
◾
Shares
sold 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 Minimum Balances, as described below.
◾
Front-end
load discounts available at Edward Jones: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoint
pricing, otherwise known as volume pricing, at dollar thresholds as described in the prospectus.
◾
Rights
of Accumulation (“ROA”) which entitles the shareholder to the applicable sales charge on a purchase of Class A shares will
be determined by taking into account all share classes (except certain money market funds and any assets held in group retirement plans)
of Invesco Funds (including holdings of 529 Plans where Invesco serves as primary distributor) 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).
◾
Letters
of Intent (“LOI”) allow shareholders to receive 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.
Other
Important Information Regarding Transactions Through Edward
Jones
Minimum
Purchase Amounts
•
Initial
purchase minimum: $250
•
Subsequent
purchase minimum: none
A-8 The
Invesco Funds
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.
Stifel,
Nicolaus & Company (“Stifel”)
Shareholders
purchasing Fund shares through a Stifel
platform or account will be eligible only for the following front-end sales charge waivers and discounts, which may differ from those
disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at Stifel: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this 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 Stifel. Eligible
fund family assets not held at Stifel may be included in the ROA calculation only if the shareholder notifies his or her financial advisor
about such assets; and
◾
Letters
of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Stifel, over a 13-month
period of time (if applicable).
◾
Shares
converted from Class C (i.e. level-load) shares of the same fund pursuant to Stifel policies relating to sales load discounts and waivers.
PFS
Investments Inc. (“PFSI”)
Policies
Regarding Transactions Through PFSI
The
following information supersedes all prior information with respect to transactions and positions held in fund shares purchased through
PFSI and held on the mutual fund platform of its affiliate, Primerica Shareholder Services (“PSS”). Clients of PFSI (also
referred to as “shareholders”) purchasing fund shares on the PSS platform are eligible only for the following share classes,
sales charge discounts (also referred to as “breakpoints”) and waivers, which can differ from share classes, discounts and
waivers described elsewhere in this prospectus or the related statement of additional information (“SAI”) or through another
broker-dealer. In all instances, it is the shareholder’s responsibility to inform PFSI at the time of a purchase of all holdings
of Invesco Funds on the PSS platform, or other facts qualifying the purchaser for discounts or waivers. PFSI may request reasonable documentation
of such facts, and condition the granting of any discount or waiver on the timely receipt of such documents. Shareholders should contact
PSS if they have questions regarding their eligibility for these discounts and waivers.
Share
Classes
◾
Class
A shares: in non-retirement accounts, individual retirement accounts (IRA), SEP IRAs, SIMPLE IRAs, Keogh Plans, and all other account
types unless expressly provided for below.
◾
Class
C shares: only in accounts with existing Class C share holdings.
Breakpoints
◾
Breakpoint
pricing at dollar thresholds as described in the prospectus of the fund you are purchasing.
Rights
of Accumulation (“ROA”)
◾
The
applicable sales charge on a purchase of Class A shares is determined by taking into account all share classes (except any assets held
in group retirement plans) of Invesco Funds held by the shareholder on the PSS Platform. The inclusion of eligible fund family assets
in the ROA calculation is dependent on the shareholder notifying PFSI of such assets at the time of calculation. Shares of money market
funds are
included
only if such shares were acquired in exchange for shares of another Invesco Fund purchased with a sales charge. No shares of Invesco Funds
held by the shareholder away from the PSS platform will be granted ROA with shares of any Invesco Fund purchased on the PSS platform.
◾
Any
SEP IRA plan, any SIMPLE IRA plan or any Payroll Deduction plan (“PDP”) on the PSS platform will be defaulted to plan-level
grouping for purposes of ROA, which allows each participating employee ROA with all other eligible shares held in plan accounts on the
PSS platform. At any time, a participating employee may elect to exercise a one-time option to change grouping for purposes of ROA to
shareholder- level grouping, which allows the plan account of the electing employee ROA with her other eligible holdings on the PSS platform,
but not with all other eligible participant holdings in the plan. Eligible shares held in plan accounts electing shareholder-level grouping
will not be available for purposes of ROA to plan accounts electing plan-level grouping.
◾
ROA
is determined by calculating the higher of cost minus redemptions or current market value (current shares x NAV).
Letter
of Intent (“LOI”)
◾
By
executing a LOI, shareholders can receive the sales charge and breakpoint discounts for purchases shareholders intend to make over a 13-month
period through PFSI, from the date PSS receives the LOI. The purchase price of the LOI is determined by calculating the higher of cost
or market value of qualifying holdings at LOI initiation in combination with the dollar amount the shareholder intends to invest over
a 13-month period to arrive at total investment for purposes of determining any breakpoint discount and the applicable front-end sales
charge. Each purchase the shareholder makes during that 13-month period will receive the sales charge and breakpoint discount that applies
to the projected total investment.
◾
Only
holdings of Invesco Funds on the PSS platform are eligible for inclusion in the LOI calculation and the shareholder must notify PFSI of
all eligible assets at the time of calculation.
◾
Purchases
made before the LOI is received by PSS are not adjusted under the LOI, and the LOI will not reduce any sales charge previously paid. Sales
charges will be automatically adjusted if the total purchases required by the LOI are not met.
◾
If
an employer maintaining a SEP IRA plan, SIMPLE IRA plan or non-IRA PDP on the PSS platform has elected to establish or change ROA for
the accounts associated with the plan to a plan-level grouping, LOIs will also be at the plan-level and may only be established by the
employer. LOIs are not available to PDP IRA plans on the PSS platform with plan-level grouping for purposes of ROA, but are available
to any participating employee that elects shareholder-level grouping for purposes of ROA.
Sales
Charge Waivers
Sales
charges are waived for the following shareholders and in the following
situations:
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment.
◾
Shares
purchased with the proceeds of redeemed shares of the same fund family so long as the following conditions are met: 1) the proceeds are
from the sale of shares within 90 days of the purchase, 2) the sale and purchase are made in the same share class and the same account
or the purchase is made in an individual retirement account with proceeds from liquidations in a non-retirement account, and 3) the redeemed
shares were subject to a front-end or deferred sales load, Automated transactions (i.e. systematic purchases and withdrawals), full or
partial transfers or rollovers of retirement accounts, and purchases made after shares are automatically sold to pay account maintenance
fees are not eligible for this sales charge waiver.
◾
Shares
exchanged into Class A shares from another share class so long as the exchange is into the same fund and was initiated at the discretion
of PFSI. PFSI is responsible for any remaining CDSC due to the fund company, if applicable. Any future purchases are subject to the applicable
sales charge as disclosed in the prospectus.
Policies
Regarding Fund Purchases Through PFSI That Are Not Held
on the PSS Platform
A-9 The
Invesco Funds
◾
Class
R shares
are available through PFSI only in 401(k) plans covering a business owner with no employees, commonly referred to as a one-participant
401(k) plan or solo 401(k).
UBS
Financial Services Inc. (“UBS”)
Pursuant
to an agreement with the Distributor, UBS may offer Class Y
shares
to its retail brokerage clients whose shares are held in omnibus
accounts at UBS, or its designee. For these clients, UBS may charge commissions or transaction fees with respect to brokerage transactions
in Class Y shares. The
minimum investment for Class Y shares is waived for transactions through such brokerage platforms at UBS. Please contact your UBS representative
for more information about these fees and other eligibility requirements.
Qualifying
for Reduced Sales Charges and Sales Charge Exceptions
The
following types of accounts qualify for reduced sales charges or sales charge exceptions under ROAs and LOIs:
1.
an
individual account owner;
2.
immediate
family of the individual account owner (which includes the individual’s spouse or domestic partner; the individual’s children,
step-children or grandchildren; the spouse or domestic partner of the individual’s children, step-children or grandchildren; the
individual’s parents and step-parents; the parents or step-parents of the individual’s spouse or domestic partner; the individual’s
grandparents; and the individual’s siblings);
3.
a
Retirement and Benefit Plan so long as the plan is established exclusively for the benefit of an individual account owner; and
4.
a
Coverdell Education Savings Account (Coverdell ESA), maintained pursuant to Section 530 of the Code (in either case, the account
must be established by an individual account owner or have an individual account owner named as the beneficiary thereof).
Alternatively,
an Employer Sponsored Retirement and Benefit Plan (but not including
plans utilizing the Invesco 403(b)(7) Custodial Account program, or the individual custodial accounts thereunder) or Employer Sponsored
IRA may be eligible to purchase shares pursuant to a ROA at the plan level, and receive a reduced applicable initial sales charge for
a new purchase based on the total value of the current purchase and the value of other shares owned by the plan’s participants if:
a)
the
employer or plan sponsor submits all contributions for all participating employees in a single contribution transmittal (the Invesco Funds
will not accept separate contributions submitted with respect to individual participants);
b)
each
transmittal is accompanied by checks or wire transfers; and
c)
if
the Invesco Funds are expected to carry separate accounts in the names of each of the plan participants, (i) the employer or plan
sponsor notifies Invesco Distributors or its designee in writing that the separate accounts of all plan participants should be linked,
and (ii) all new participant accounts are established by submitting an appropriate Account Application on behalf of each new participant
with the contribution transmittal.
Participant
accounts in a retirement plan that are eligible to purchase shares
pursuant to a ROA at the plan level may not also be considered eligible to do so for the benefit of an individual account owner.
In
all instances, it is the purchaser’s responsibility to notify Invesco Distributors
or its designee of any relationship or other facts qualifying the purchaser as eligible for reduced sales charges and/or sales charge
exceptions and to provide all necessary documentation of such facts in order to qualify for reduced sales charges or sales charge exceptions.
For additional information on linking accounts to qualify for ROA or LOI, please see the Funds’ SAI.
Purchases
of Class A shares of Invesco Conservative Income Fund, Invesco
Government Money Market Fund and Invesco Short Term Municipal Fund, Class AX shares or Invesco Cash Reserve Shares of Invesco Government
Money Market Fund and Invesco U.S. Government Money Portfolio, as applicable, or Investor Class shares of any Fund will not be
taken
into account in determining whether a purchase qualifies for a reduction in initial sales charges pursuant to ROAs or LOIs.
Rights
of Accumulation
Purchasers
that qualify for ROA may combine new purchases of Class A shares of a Fund with shares of the Fund or other open-end Invesco Funds
currently owned (Class A, C, IB, IC, P, R, S or Y) for the purpose of qualifying for the lower initial sales charge rates that apply
to larger purchases. The applicable initial sales charge for the new purchase will be based on the total of your current purchase and
the value of other shares owned based on their current public offering price. The Funds’ transfer agent may automatically link certain
accounts registered in the same name with the same taxpayer identification number for the purpose of qualifying you for lower initial
sales charge rates.
Letters
of Intent
Under
a LOI, you commit to purchase a specified dollar amount of Class A shares of one or more Funds during a 13-month period. The amount
you agree to purchase determines the initial sales charge you pay. If the full amount committed to in the LOI is not invested by the end
of the 13-month period, your account will generally be assessed the higher initial sales charge that would normally be applicable to the
total amount actually invested. Shares equal in value to 5% of the intended purchase amount will be held in escrow for this purpose.
Reinstatement
Following Redemption
If
you redeem any class of shares of a Fund, you may reinvest all or a portion of the proceeds from the redemption (and may include that
amount necessary to acquire a fractional Share to round off his or her purchase to the next full Share) in the same share class of any
Fund within 180 days of the redemption without paying an initial sales charge. Class P, S, and Y redemptions may be reinvested into Class
A shares without an initial sales charge.
This
reinstatement privilege does not apply to a purchase made through a
regularly scheduled automatic investment plan, such as a purchase by a regularly scheduled payroll deduction or transfer from a bank account.
This
reinstatement privilege shall be suspended for the period of time in which
a purchase block is in place on a shareholder’s account. Please see “Purchase Blocking Policy” discussed below.
In
order to take advantage of this reinstatement privilege, you must inform
your financial adviser or the Funds’ transfer agent that you wish to do so at the time of your reinvestment.
Contingent
Deferred Sales Charges (CDSCs)
CDSCs
on Class A Shares and Invesco Cash Reserve Shares
Any
shares of a Large Purchase of Class A shares redeemed prior to 18 months after the date of purchase will be subject to a CDSC of 1% with
the exception of Class A shares of Invesco Conservative Income Fund and Invesco Short Term Municipal Fund which do not have CDSCs on redemptions.
If
Invesco Distributors pays a concession to a financial intermediary in connection
with a Large Purchase of Class A shares by an Employer Sponsored Retirement and Benefit Plan or SIMPLE IRA Plan, the Class A shares will
be subject to a 1% CDSC if all of the Employer Sponsored Retirement and Benefit Plan’s or SIMPLE IRA’s shares are redeemed
within one year from the date of initial purchase.
If
you acquire Invesco Cash Reserve Shares or Class A shares of Invesco
Government Money Market Fund or Invesco Cash Reserve Shares of Invesco U.S. Government Money Portfolio through an exchange involving Class
A shares that were subject to a CDSC, the shares acquired as a result of the exchange will continue to be subject to that same CDSC.
CDSCs
on Class C Shares
Class
C shares are subject to a CDSC; however, the CDSC shall not apply to the purchases of Class C shares where the selling broker-dealer was
not paid a commission at the time of purchase. If you redeem your shares during the first year since your purchase has been made you will
be
A-10 The
Invesco Funds
assessed
a CDSC as disclosed in the “Fees and Expenses - Shareholder Fees” table in the prospectus, unless you qualify for one of the
CDSC exceptions outlined below.
CDSCs
on Class C Shares – Employer Sponsored Retirement and Benefit Plans and Employer Sponsored IRAs
Class
C shares are subject to a 1.00% CDSC at the time of redemption if all of the Employer Sponsored Retirement and Benefit Plan’s or
Employer Sponsored IRA’s shares are redeemed within one year from the date of initial purchase.
CDSCs
on Class C Shares of Invesco Short Term Bond Fund
Effective
November 1, 2021, Class C shares of Invesco Short Term Bond Fund are subject to a CDSC. If you acquire Class C shares of any other Fund
as a result of an exchange involving Class C shares of Invesco Short Term Bond Fund that were not subject to a CDSC prior to November
1, 2021, then the shares acquired as a result of the exchange will not be subject to a CDSC.
Computing
a CDSC
The
CDSC on redemptions of shares is computed based on the lower of their original purchase price or current net asset value, net of reinvested
dividends and capital gains distributions. In determining whether to charge a CDSC, shares are accounted for on a first-in, first-out
basis, which means that you will redeem shares on which there is no CDSC first, and then shares in the order of their purchase.
CDSC
Exceptions
Investors
who own shares that are otherwise subject to a CDSC will not pay a CDSC in the following circumstances:
◾
If
you participate in the Systematic Redemption Plan and withdraw up to 12% of the value of your shares that are subject to a CDSC in any
twelve-month period.
◾
If
you redeem shares to pay account fees.
◾
If
you are the executor, administrator or beneficiary of an estate or are otherwise entitled to assets remaining in an account following
the death or post-purchase disability of a shareholder or beneficial owner and you choose to redeem those shares.
There
are other circumstances under which you may be able to redeem shares
without paying CDSCs. For additional information about such circumstances, please see the Appendix entitled “Purchase, Redemption
and Pricing of Shares” in each Fund’s SAI.
Shares
acquired through the reinvestment of dividends and distributions are
not subject to CDSCs.
The
following share classes are sold without a CDSC:
◾
Class
A2 shares of Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund
◾
Class
A shares of Invesco Government Money Market Fund
◾
Invesco
Cash Reserve Shares of Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio
◾
Investor
Class shares of any Fund
◾
Class
P shares of Invesco Summit Fund
◾
Class
R5 and R6 shares of any Fund
◾
Class
R shares of any Fund
◾
Class
S shares of Invesco Charter Fund, Invesco Select Risk: Moderately Conservative Investor Fund, Invesco Select Risk: Growth Investor Fund,
Invesco Select Risk: Moderate Investor Fund and Invesco Summit Fund
◾
Class
Y shares of any Fund
Purchasing
Shares and Shareholder Eligibility
Invesco
Premier U.S. Government Money Portfolio
For
Invesco Premier U.S. Government Money Portfolio, you may purchase shares using one of the options below. Unless the Fund closes early
on a business day, the Fund’s transfer agent will generally accept any purchase order placed until 5:00 p.m. Eastern Time on a business
day and may accept a purchase order placed until 5:30 p.m. Eastern Time on a business
day.
If you wish to place an order between 5:00 p.m. and 5:30 p.m. Eastern Time on a business day, you must place such order by telephone;
however, the Fund’s transfer agent reserves the right to reject or limit the amount of orders placed during this time. If the Fund
closes early on a business day, the Fund’s transfer agent must receive your purchase order prior to such closing time. Purchase
orders will not be processed unless the account application and purchase payment are received in good order. In accordance with the USA
PATRIOT Act, if you fail to provide all the required information requested in the current account application, your purchase order will
not be processed. Additionally, federal law requires that the Fund verifies and records your identifying information.
Invesco
Premier Portfolio
Only
accounts beneficially owned by natural persons will be permitted to retain their shares. The Fund has implemented policies and procedures
reasonably designed to limit all beneficial owners of the Fund to natural persons, and investments in the Fund are limited to accounts
beneficially owned by natural persons. Natural persons may invest in the Fund through certain tax-advantaged savings accounts, trusts
and other retirement and investment accounts, which may include, among others: participant-directed defined contribution plans; individual
retirement accounts; simplified employee pension arrangements; simple retirement accounts; custodial accounts; deferred compensation plans
for government or tax-exempt organization employees; Archer medical savings accounts; college savings plans; health savings account plans;
ordinary trusts and estates of natural persons; or certain other retirement and investment accounts with ultimate investment authority
held by the natural person beneficial owner, notwithstanding having an institutional decision maker making day-to-day decisions (e.g.,
a plan sponsor in certain retirement arrangements or an investment adviser managing discretionary investment accounts).
Further,
financial intermediaries may only submit purchase orders if they have
implemented policies and procedures reasonably designed to limit all investors on behalf of whom they submit orders to accounts beneficially
owned by natural persons. Financial intermediaries may be required to provide a written statement or other representation that they have
in place, and operate in compliance with, such policies and procedures prior to submitting purchase orders. Such policies and procedures
may include provisions for the financial intermediary to promptly report to the Fund or the transfer agent the identification of any shareholder
of the Fund that does not qualify as a natural person of whom they are aware and promptly take steps to redeem any such shareholder’s
shares of the Fund upon request by the Fund or the transfer agent, in such manner as it may reasonably request. The Fund may involuntarily
redeem any such shareholder who does not voluntarily redeem their shares.
Natural
persons may purchase shares using one of the options below. For
all classes of the Fund, other than Investor Class shares, unless the Fund closes early on a business day, the Fund’s transfer agent
will generally accept any purchase order placed until 5:00 p.m. Eastern Time on a business day and may accept a purchase order placed
until 5:30 p.m. Eastern Time on a business day. If you wish to place an order between 5:00 p.m. and 5:30 p.m. Eastern Time on a business
day, you must place such order by telephone; or send your request by a pre-arranged Liquidity Link data transmission however, the Fund’s
transfer agent reserves the right to reject or limit the amount of orders placed during this time. For Investor Class shares of the Fund,
unless the Fund closes early on a business day, the Fund’s transfer agent will generally accept any purchase order placed until
4:00 p.m. Eastern Time on a business day and may accept a purchase order placed until 4:30 p.m. Eastern Time on a business day. If you
wish to place an order between 4:00 p.m. and 4:30 p.m. Eastern Time on a business day, you must place such order by telephone; however,
the Fund’s transfer agent reserves the right to reject or limit the amount of orders placed during this time. If the Fund closes
early on a business day, the Fund’s transfer agent must receive your purchase order prior to such closing time. Purchase orders
will not be processed unless the account application and purchase payment are received in good order. In accordance with the USA PATRIOT
Act, if you fail to provide all the required information requested in the current account application, your purchase order will not be
A-11 The
Invesco Funds
processed.
Additionally, federal law requires that the Fund verify and record your identifying information.
Minimum Investments
There
are no minimum investments for Class P or S shares for fund accounts. The minimum investments for Class A, C, R, Y, Investor Class and
Invesco Cash Reserve shares for fund accounts are as follows:
|
Type
of Account |
Initial
Investment
Per
Fund |
Additional
Investments
Per
Fund |
|
Asset
or fee-based accounts managed by your financial
adviser
|
None
|
None
|
|
| ||
|
Employer
Sponsored Retirement and Benefit Plans and
Employer
Sponsored IRAs |
None
|
None
|
|
| ||
|
IRAs
and Coverdell ESAs if the new investor is
purchasing
shares through a systematic purchase plan |
$25
|
$25
|
|
| ||
|
All
other accounts if the investor is purchasing shares
through
a systematic purchase plan |
50
|
50
|
|
| ||
|
IRAs
and Coverdell ESAs |
250
|
25
|
|
| ||
|
All
other accounts |
1,000
|
50
|
|
| ||
Invesco
Distributors or its designee has the discretion to accept orders on behalf of clients for lesser amounts.
The
minimum investments for Class R5 and R6 shares are as follows:
There
is no minimum initial investment for an Employer Sponsored Retirement
and Benefit Plan investing through a retirement platform that administers at least $2.5 billion in retirement plan assets. All other Employer
Sponsored Retirement and Benefit Plans must meet a minimum initial investment of at least $1 million in each Fund in which it invests.
The
minimum initial investment in each share class for all other institutional
investors is $1 million, unless such investment is made by (i) an investment company, as defined under the 1940 Act, as amended, that
is part of a family of investment companies which own in the aggregate at least $100 million in securities, or (ii) an account established
with a 529 college savings plan managed by Invesco, in which case there is no minimum initial investment.
There
are no minimum investment amounts for Class R6 shares held through
retail omnibus accounts where the intermediary:
◾
generally
charges an asset-based fee or commission in addition to those described in this prospectus; and
◾
maintains
Class R6 shares and makes them available to retail investors.
A
financial intermediary may impose different investment minimums than
those set forth above. The Fund is not responsible for any investment minimums imposed by financial intermediaries or for notifying shareholders
of any changes to them. See “Waivers Available Through Certain Financial Intermediaries and Other Financial Intermediary-Specific
Arrangements” for more information on certain intermediary-specific investment minimums. Please consult with your financial intermediary
if you have any questions regarding their policies.
How
to Purchase Shares*
|
|
Opening
An Account |
Adding
To An Account |
|
Through
a
Financial
Adviser
or
Financial
Intermediary*
|
Contact
your financial adviser or
financial
intermediary. |
Contact
your financial adviser or
financial
intermediary. |
|
By
Mail |
Mail
completed account application
and
check to the Funds’ transfer
agent,
Invesco
Investment Services, Inc.
P.O.
Box 219078,
Kansas
City, MO 64121-9078.
The
Funds’ transfer agent does NOT
accept
the following types of
payments:
Credit Card Checks,
Temporary/Starter
Checks, Third
Party
Checks, and Cash. |
Mail
your check and the remittance
slip
from your confirmation
statement
to the Funds’ transfer
agent.
The Funds’ transfer agent
does
NOT accept the following
types
of payments: Credit Card
Checks,
Temporary/Starter Checks,
Third
Party Checks, and Cash. |
|
|
Opening
An Account |
Adding
To An Account |
|
By
Wire* |
Mail
completed account application
to
the Funds’ transfer agent. Call
the
Funds’ transfer agent at (800)
959-4246
to receive a reference
number.
Then, use the wire
instructions
provided below. |
Call
the Funds’ transfer agent to
receive
a reference number. Then,
use
the wire instructions provided
below.
|
|
Wire
Instructions |
Beneficiary
Bank ABA/Routing #: 011001234
Beneficiary
Account Number: 729639
Beneficiary
Account Name: Invesco Investment Services, Inc.
RFB:
Fund Name, Reference #
OBI:
Your Name, Account # | |
|
By
Telephone* |
Open
your account using one of the
methods
described above. |
The
Bank Account Information
option
on your completed account
application
or complete a
Systematic
Options and Bank
Information
Form. Mail the
application
or form to the Funds’
transfer
agent. Once the Funds’
transfer
agent has received the
form,
call the Funds’ transfer agent
at
the number below to place your
purchase
order. For Class R5 and
R6
shares, call the Funds’ transfer
agent
at (800) 959-4246 and wire
payment
for your purchase order in
accordance
with the wire
instructions
listed above. |
|
Automated
Investor
Line |
Open
your account using one of the
methods
described above. |
Call
the Funds’ transfer agent’s
24-hour
Automated Investor Line at
1-800-246-5463.
You may place
your
order after you have provided
the
bank instructions that will be
requested.
|
|
By
Internet |
Open
your account using one of the
methods
described above. |
Access
your account at
www.invesco.com/us.
The proper
bank
instructions must have been
provided
on your account. You may
not
purchase shares in Retirement
and
Benefit Plans on the internet. |
|
*Class
R5 and R6 shares may only be purchased through a financial intermediary or by
telephone
at (800) 959-4246. | ||
Non-retirement
retail investors, including high net worth investors investing
directly or through a financial intermediary, are not eligible for Class R5 shares. IRAs and Employer Sponsored IRAs are also not eligible
for Class R5 shares. If you hold your shares through a financial intermediary, the terms by which you purchase, redeem and exchange shares
may differ than the terms in this prospectus depending upon the policies and procedures of your financial intermediary.
Purchase
orders will not be processed unless the account application and
purchase payment are received in good order. In accordance with the USA PATRIOT Act, if you fail to provide all the required information
requested in the current account application, your purchase order will not be processed. Additionally, federal law requires that the Funds
verify and record your identifying information.
Systematic
Purchase Plan (Available for all classes except Class R5 and R6 shares)
You
can arrange for periodic investments in any of the Funds by authorizing the Funds’ transfer agent to withdraw the amount of your
investment from your bank account on a day or dates you specify and in an amount of at least $25 per Fund for IRAs and Coverdell ESAs,
and at least $50 per Fund for all other types of accounts (a Systematic Purchase Plan). You may stop the Systematic Purchase Plan at any
time by giving the Funds’ transfer agent notice ten days prior to your next scheduled withdrawal. Certain financial advisers and
other financial intermediaries may also offer systematic purchase plans.
A-12 The
Invesco Funds
Dollar
Cost Averaging (Available for all classes except Class R5 and R6 shares)
Dollar
Cost Averaging allows you to make automatic periodic exchanges, if permitted, from one Fund to another Fund or multiple other Funds. The
account from which exchanges are to be made must have a minimum balance of $5,000 before you can use this option. Exchanges will occur
on (or about) the day of the month you specify, in the amount you specify. Dollar Cost Averaging cannot be set up for the 29th through
the 31st of the month. The minimum amount you can exchange to another Fund is $50. Your financial intermediary may offer alternative dollar
cost averaging programs with different requirements.
Automatic
Dividend and Distribution Investment
Your
dividends and distributions may be paid in cash or reinvested in the same Fund or another Fund without paying an initial sales charge.
Unless
you specify otherwise, your dividends and distributions will automatically
be reinvested in the same Fund. You must comply with the following requirements to be eligible to invest your dividends and distributions
in shares of another Fund:
◾
Your
account balance in the Fund paying the dividend or distribution must be at least $5,000; and
◾
Your
account balance in the Fund receiving the dividend or distribution must be at least $500.
If
you elect to receive your distributions by check, and the distribution amount
is $25 or less, then the amount will be automatically reinvested in the same Fund and no check will be issued. If you have elected to
receive distributions by check, and the postal service is unable to deliver checks to your address of record, then your distribution election
may be converted to having all subsequent distributions reinvested in the same Fund and no checks will be issued. With respect to certain
account types, if your check remains uncashed for six months, the Fund generally reserves the right to reinvest your distribution check
in your account at the then applicable NAV and to reinvest all subsequent distributions in shares of the Fund. Such checks will be reinvested
into the same share class of the Fund. You should contact the Funds’ transfer agent to change your distribution option, and your
request to do so must be received by the Funds’ transfer agent before the record date for a distribution in order to be effective
for that distribution. No interest will accrue on amounts represented by uncashed distribution checks.
Redeeming
Shares*
The
Funds’ transfer agent or authorized intermediary, if applicable, must receive your call before the Funds’ net asset value
determination (as defined by the applicable Fund) in order to effect the redemption at that day’s net asset value.
Your
broker or financial intermediary may charge service fees for handling
redemption transactions.
|
How
to Redeem Shares | |
|
Through
a Financial
Adviser
or Financial
Intermediary*
|
Contact
your financial adviser or financial intermediary. The Funds’
transfer
agent must receive your financial adviser’s or financial
intermediary’s
call before the Funds’ net asset value determination
(as
defined by the applicable Fund) in order to effect the redemption
at
that day’s net asset value. Please contact your financial adviser or
financial
intermediary with respect to reporting of cost basis and
available
elections for your account. |
|
By
Mail |
Send
a written request to the Funds’ transfer agent which includes: |
|
|
▪ Original
signatures of all registered owners/trustees;
▪ The
dollar value or number of shares that you wish to redeem;
▪ The
name of the Fund(s) and your account number;
▪ The
cost basis method or specific shares you wish to redeem for
tax
reporting purposes, if different than the method already on
record;
and |
|
|
▪ Signature
guarantees, if necessary (see below).
The
Funds’ transfer agent may require that you provide additional
documentation,
or information, such as corporate resolutions or
powers
of attorney, if applicable. If you are redeeming from a
Retirement
and Benefit Plan, you must complete the appropriate
distribution
form. |
|
How
to Redeem Shares | |
|
By
Telephone* |
Call
the Funds’ transfer agent at 1-800-959-4246. You will be
allowed
to redeem by telephone if:
▪ Your
redemption proceeds are to be mailed to your address on
record
(and there has been no change in your address of record
within
the last 15 days) or transferred electronically to a
pre-authorized
checking account;
▪ You
can provide proper identification information;
▪ Your
redemption proceeds do not exceed $250,000 per Fund; and
▪ You
have not previously declined the telephone redemption
privilege.
|
|
|
You
may, in limited circumstances, initiate a redemption from an
Invesco
IRA by telephone. Redemptions from Employer Sponsored
Retirement
and Benefit Plans and Employer Sponsored IRAs may be
initiated
only in writing and require the completion of the appropriate
distribution
form, as well as employer authorization. You must call the
Funds’
transfer agent before the Funds’ net asset value
determination
(as defined by the applicable Fund) in order to effect
the
redemption at that day’s net asset value. |
|
Automated
Investor Line |
Call
the Funds’ transfer agent’s 24-hour Automated Investor Line at
1-800-246-5463.
You may place your redemption order after you
have
provided the bank instructions that will be requested. |
|
By
Internet |
Place
your redemption request at www.invesco.com/us. You will be
allowed
to redeem by Internet if:
▪ You
can provide proper identification information;
▪ Your
redemption proceeds do not exceed $250,000 per Fund; and
▪ You
have already provided proper bank information.
Redemptions
from Employer Sponsored Retirement and Benefit
Plans
and Employer Sponsored IRAs may be initiated only in writing
and
require the completion of the appropriate distribution form, as
well
as employer authorization. |
|
*Class
R5 and R6 shares may only be redeemed through a financial intermediary or by
telephone
at (800) 959-4246. | |
Timing
and Method of Payment
The
Funds’ transfer agent typically expects to pay redemption proceeds to redeeming shareholders within one business day after a redemption
request is received in good order, regardless of the method a Fund uses to make such payment. However, a Fund may take up to seven days
to process a redemption request. “Good order” means that all necessary information and documentation related to the redemption
request have been provided to the Funds’ transfer agent or authorized intermediary, if applicable. If your request is not in good
order, the Funds’ transfer agent may require additional documentation in order to redeem your shares. If you redeem shares recently
purchased by check or ACH, you may be required to wait up to ten calendar days before your redemption proceeds are sent. This delay is
necessary to ensure that the purchase has cleared. You can avoid the check hold period if you pay for your shares with a certified check,
a cashier’s check or a federal wire. Payment may be postponed under unusual circumstances, as allowed by the SEC, such as when the
NYSE restricts or suspends trading.
In
addition, a temporary hold may be placed on the disbursement of redemption
proceeds from an account if there is a reasonable belief that financial exploitation of a Specified Adult (as defined below) has occurred,
is occurring, has been attempted, or will be attempted. Notice of such a delay will be provided in accordance with regulatory requirements.
This temporary hold will be for an initial period of no more than 15 business days while an internal review is performed. Should the internal
review support the belief that financial exploitation has occurred, is occurring, has been attempted or will be attempted, the temporary
hold may be extended for up to 10 additional business days. Both the initial and subsequent hold on the disbursement may be terminated
or extended by a state regulator or an agency or court of competent jurisdiction. For purposes of this paragraph, the term “Specified
Adult” refers to an individual who is (a) a natural person age 65 and older, or (b) a natural person age 18 and older who is reasonably
believed to have a mental or physical impairment that renders the individual unable to protect his or her own interests.
If
you redeem by telephone, the Funds’ transfer agent will transmit the amount
of redemption proceeds electronically to your pre-authorized bank account. Redemption checks are mailed to your address of record, via
first
A-13 The
Invesco Funds
class
U.S. mail, unless you make other arrangements with the Funds’ transfer agent.
The
Funds’ transfer agent uses reasonable procedures to confirm that instructions
communicated via telephone and the Internet are genuine, and the Funds and the Funds’ transfer agent are not liable for losses arising
from actions taken in accordance with instructions that are reasonably believed to be genuine.
A
Fund typically expects to use holdings of cash and cash equivalents and
sales of portfolio assets to meet redemption requests, both regularly and in stressed market conditions. The Funds also have the ability
to redeem in kind as further described below under “Redemptions in Kind.” Certain Funds have a line of credit,
as disclosed in such Funds’ principal investment strategy
and risk disclosures that may be used to meet redemptions in stressed market conditions.
Expedited
Redemptions (for Invesco Cash Reserve Shares of Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio only)
If
you place your redemption order by telephone, before 11:30 a.m. Eastern Time and request an expedited redemption, the Funds’ transfer
agent will transmit payment of redemption proceeds on that same day via federal wire to a bank of record on your account. If the Funds’
transfer agent receives your redemption order after 11:30 a.m. Eastern Time and before the close of the customary trading session of the
NYSE, it will transmit payment on the next business day.
Suspension
of Redemptions
The
right of redemption may be suspended or the date of payment postponed when (a) trading on the NYSE is restricted, as determined by applicable
rules and regulations of the SEC, (b) the NYSE is closed for other than customary weekend and holiday closings, (c) the SEC has by order
permitted such suspension, or (d) an emergency as determined by the SEC exists making disposition of portfolio securities or the valuation
of the net assets of the Fund not reasonably practicable. With respect to Invesco Government Money Market Fund, Invesco U.S. Government
Money Portfolio, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio, in the event that the Fund, at the end
of a business day, has invested less than 10% of its total assets in weekly liquid assets or, with respect to the retail and government
money market funds, the Fund’s price per share as computed for the purpose of distribution, redemption and repurchase, rounded to
the nearest 1%, has deviated from the stable price established by the Fund’s Board of Trustees (“Board”) or the Board,
including a majority of trustees who are not interested persons as defined in the 1940 Act, determines that such a deviation is likely
to occur, and the Board, including a majority of trustees who are not interested persons of the Fund, irrevocably has approved the liquidation
of the Fund, the Fund’s Board has the authority to suspend redemptions of Fund shares.
Liquidity
Fees and Redemption Gates
For
Invesco Premier Portfolio, if the Fund’s weekly liquid assets fall below 30% of its total assets, the Board, in its discretion,
may impose liquidity fees of up to 2% of the value of the shares redeemed and/or suspend redemptions (redemption gates). In addition,
if any such Fund’s weekly liquid assets falls below 10% of its total assets at the end of any business day, the Fund must impose
a 1% liquidity fee on shareholder redemptions unless the Board determines that not doing so is in the best interests of the Fund.
Liquidity
fees and redemption gates are most likely to be imposed, if at all,
during times of extraordinary market stress. In the event that a liquidity fee or redemption gate is imposed, the Board expects that for
the duration of its implementation and the day after which such gate or fee is terminated, the Fund would strike only one net asset value
per day, at the Fund’s last scheduled net asset value calculation time.
The
imposition and termination of a liquidity fee or redemption gate will be
reported by a Fund to the SEC on Form N-CR. Such information will also be available on the Fund’s website. In addition, a Fund will
communicate such action through a supplement to its registration statement and may further communicate such action through a press release
or by other means. If a liquidity fee is applied by the Board, it will be charged on all
redemption
orders submitted after the effective time of the imposition of the fee by the Board. Liquidity fees would reduce the amount you receive
upon redemption of your shares. In the event a Fund imposes a redemption gate, the Fund or any financial intermediary on its behalf will
not accept redemption requests until the Fund provides notice that the redemption gate has been terminated.
Redemption
requests submitted while a redemption gate is imposed will be cancelled
without further notice. If shareholders still wish to redeem their shares after a redemption gate has been lifted, they will need to submit
a new redemption request.
Liquidity
fees and redemption gates will generally be used to assist a Fund
to help preserve its market–based NAV per share. It is possible that a liquidity fee will be returned to shareholders in the form
of a distribution. The Board may, in its discretion, terminate a liquidity fee or redemption gate at any time if it believes such action
to be in the best interest of a Fund. Also, liquidity fees and redemption gates will automatically terminate at the beginning of the next
business day once a Fund’s weekly liquid assets reach at least 30% of its total assets. Redemption gates may only last up to 10
business days in any 90-day period. When a fee or a gate is in place, the Fund may elect not to permit the purchase of shares or to subject
the purchase of shares to certain conditions, which may include affirmation of the purchaser’s knowledge that a fee or a gate is
in effect. When a fee or a gate is in place, shareholders will not be permitted to exchange into or out of a Fund.
There
is some degree of uncertainty with respect to the tax treatment of liquidity
fees received by a Fund, and such tax treatment may be the subject to future IRS guidance. If a Fund receives liquidity fees, it will
consider the appropriate tax treatment of such fees to the Fund at such time.
Financial
intermediaries are required to promptly take the steps requested
by the Funds or their designees to impose or help to implement a liquidity fee or redemption gate as requested from time to time, including
the rejection of orders due to the imposition of a fee or gate or the prompt re-confirmation of orders following a notification regarding
the implementation of a fee or gate. If a liquidity fee is imposed, these steps are expected to include the submission of separate, rather
than combined, purchase and redemption orders from the time of the effectiveness of the liquidity fee or redemption gate and the submission
of such order information to the Fund or its designee prior to the next calculation of a Fund’s net asset value. Unless otherwise
agreed to between a Fund and financial intermediary, the Fund will withhold liquidity fees on behalf of financial intermediaries. With
regard to such orders, a redemption request that a Fund determines in its sole discretion has been received in good order by the Fund
or its designated agent prior to the imposition of a liquidity fee or redemption gate may be paid by the Fund despite the imposition of
a redemption gate or without the deduction of a liquidity fee. If a liquidity fee is imposed during the day, an intermediary who receives
both purchase and redemption orders from a single account holder is not required to net the purchase and redemption orders. However, the
intermediary is permitted to apply the liquidity fee to the net amount of redemptions (even if the purchase order was received prior to
the time the liquidity fee was imposed).
Where
a Financial Intermediary serves as a Fund’s agent for the purpose
of receiving orders, trades that are not transmitted to the Fund by the Financial Intermediary before the time required by the Fund or
the transfer agent may, in the Fund’s discretion, be processed on an as-of basis, and any cost or loss to the Fund or transfer agent
or their affiliates, from such transactions shall be borne exclusively by the Financial Intermediary.
Systematic
Withdrawals (Available for all classes except Class R5 and R6 shares)
You
may arrange for regular periodic withdrawals from your account in amounts equal to or greater than $50 per Fund. The Funds’ transfer
agent will redeem the appropriate number of shares from your account to provide redemption proceeds in the amount requested. You must
have a total account balance of at least $5,000 in order to establish a Systematic Redemption Plan, unless you are establishing a Required
Minimum
A-14 The
Invesco Funds
Distribution
for a Retirement and Benefit Plan. You can stop this plan at any time by giving ten days’ prior notice to the Funds’ transfer
agent.
Check
Writing
The
Funds’ transfer agent provides check writing privileges for accounts in the following Funds and share classes:
◾
Invesco
Government Money Market Fund, Invesco Cash Reserve Shares, Class AX shares, Class Y shares and Investor Class shares
◾
Invesco
U.S. Government Money Portfolio, Invesco Cash Reserve Shares and Class Y shares
◾
Invesco
Premier Portfolio, Investor Class shares
◾
Invesco
Premier U.S. Government Money Portfolio, Investor Class shares
You
may redeem shares of these Funds by writing checks in amounts of $250
or more if you have subscribed to the service by completing a Check Writing authorization form.
Check
writing privileges are not available for Retirement and Benefit Plans.
Checks are not eligible to be converted to ACH by the payee. You may not give authorization to a payee by phone to debit your account
by ACH for a debt owed to the payee.
If
you do not have a sufficient number of shares in your account to cover
the amount of the check and any applicable deferred sales charge, the check will be returned and no shares will be redeemed. Because it
is not possible to determine your account’s value in advance, you should not write a check for the entire value of your account
or try to close your account by writing a check.
A
check writing redemption request which is verifiably submitted to a Fund’s
agent before a liquidity fee or redemption gate is imposed will be considered a valid redemption and will be processed normally.
Signature
Guarantees
The
Funds’ transfer agent requires a signature guarantee in the following circumstances:
◾
When
your redemption proceeds exceed $250,000 per Fund.
◾
When
you request that redemption proceeds be paid to someone other than the registered owner of the account.
◾
When
you request that redemption proceeds be sent somewhere other than the address of record or bank of record on the account.
◾
When
you request that redemption proceeds be sent to a new address or an address that changed in the last 15 days.
The
Funds’ transfer agent will accept a guarantee of your signature by a number
of different types of financial institutions. Call the Funds’ transfer agent for additional information. Some institutions have
transaction amount maximums for these guarantees. Please check with the guarantor institution to determine whether the signature guarantee
offered will be sufficient to cover the value of your transaction request.
Redemptions
in Kind
Although
the Funds generally intend to pay redemption proceeds solely in cash, the Funds reserve the right to determine, in their sole discretion,
whether to satisfy redemption requests by making payment in securities or other property (known as a redemption in kind). Redemptions
in kind may result in transaction costs and/or market fluctuations associated with liquidating or holding the securities, respectively.
Purchases-in-Kind
You
may purchase shares of a Fund by transferring securities to a Fund in exchange for Fund shares (“in-kind purchases”). In-kind
purchases may be made only upon the Funds’ approval and determination that the securities are acceptable investments for the Fund
and are purchased consistent with the Fund’s procedures relating to in-kind purchases. The Funds reserve the right to amend or terminate
this practice at any time. You must call the Funds at (800) 959-4246 before sending any securities. Please see the SAI for additional
details.
Redemptions
by Large Shareholders
At
times, the Fund may experience adverse effects when certain large shareholders redeem large amounts of shares of the Fund. Large redemptions
may cause the Fund to sell portfolio securities at times when it would not otherwise do so. In addition, these transactions may also
accelerate
the realization of taxable income to shareholders (if applicable) if such sales of investments resulted in gains and may also increase
transaction costs and/or increase in the Fund’s expense ratio. When experiencing a redemption by a large shareholder, the Fund may
delay payment of the redemption request up to seven days to provide the investment manager with time to determine if the Fund can redeem
the request-in-kind or to consider other alternatives to lessen the harm to remaining shareholders. Under certain circumstances, however,
the Fund may be unable to delay a redemption request, which could result in the automatic processing of a large redemption that is detrimental
to the Fund and its remaining shareholders.
Redemptions
Initiated by the Funds
If
your account (Class A, C, P, S and Investor Class shares only) has been open at least one year, you have not made an additional purchase
in the account during the past six calendar months, and the value of your account falls below $500 for three consecutive months, the Funds
have the right to redeem the account after giving you 60 days’ prior written notice. You may avoid having your account redeemed
during the notice period by bringing the account value up to $500 or by initiating a Systematic Purchase Plan.
A
financial intermediary may have a different policy regarding redemptions
of accounts with small balances. The Fund is not responsible for any small account balance policies imposed by financial intermediaries
or for notifying shareholders of any changes to them. See “Waivers Available Through Certain Financial Intermediaries and Other
Financial Intermediary-Specific Arrangements” for more information on certain intermediary-specific small account balance policies.
Please consult with your financial intermediary if you have any questions regarding their policies.
If
a Fund determines that you have not provided a correct Social Security
or other tax identification number on your account application, or the Fund is not able to verify your identity as required by law, the
Fund may, at its discretion, redeem the account and distribute the proceeds to you.
In
order to separate retail investors (natural persons) and non-retail investors,
the Invesco Premier Portfolio reserve the right to redeem shares in any account that the Funds cannot confirm to their satisfaction are
beneficially owned by natural persons. The Funds will provide advance written notice of their intent to make any such involuntary redemptions.
The Funds reserve the right to redeem shares in any account that they cannot confirm to their satisfaction are beneficially owned by natural
persons, after providing advance notice.
Neither
a Fund nor its investment adviser will be responsible for any loss
in an investor’s account or tax liability resulting from an involuntary redemption.
Minimum
Account Balance (Available for all classes except Class R5 and R6 shares)
A
low balance fee of $12 per year may be deducted in the fourth quarter of each year from all accounts held in the Funds (each a Fund Account)
with a value less than the low balance amount (the Low Balance Amount) as determined from time to time by the Funds and the Adviser. The
Funds and the Adviser generally expect the Low Balance Amount to be $750, but such amount may be adjusted for any year depending on various
factors, including market conditions. The Low Balance Amount and the date on which it will be deducted from any Fund Account will be posted
on our website, www.invesco.com/us, on or about November 1 of each year. This fee will be payable to the Funds’ transfer agent by
redeeming from a Fund Account sufficient shares owned by a shareholder and will be used by the Funds’ transfer agent to offset amounts
that would otherwise be payable by the Funds to the Funds’ transfer agent under the Funds’ transfer agency agreement with
the Funds’ transfer agent. The low balance fee does not apply to participant accounts in advisory programs or to Employer Sponsored
Retirement and Benefit Plans.
Exchanging
Shares
You
may, under certain circumstances, exchange shares in one Fund for those of another Fund. An exchange is the purchase of shares in one
Fund which is paid for with the proceeds from a redemption of shares of another
A-15 The
Invesco Funds
Fund
effectuated on the same day. Any gain on the transaction may be subject to federal income tax. Accordingly, the procedures and processes
applicable to redemptions of Fund shares, as discussed under the heading “Redeeming Shares” above, will apply. Before requesting
an exchange, review the prospectus of the Fund you wish to acquire.
All
exchanges are subject to the limitations set forth in the prospectuses of
the Funds. If you wish to exchange shares of one Fund for those of another Fund, you must consult the prospectus of the Fund whose shares
you wish to acquire to determine whether the Fund is offering shares to new investors and whether you are eligible to acquire shares of
that Fund.
Permitted
Exchanges
Except
as otherwise provided herein or in the SAI, you generally may exchange your shares for shares of the same class of another Fund. The following
table shows generally permitted exchanges from one Fund to another Fund (exceptions listed below under “Exchanges Not Permitted”):
|
Exchange
From |
Exchange
To |
|
Invesco
Cash Reserve Shares |
Class
A, C, R, Investor Class |
|
| |
|
Class
A |
Class
A, Investor Class, Invesco Cash Reserve Shares* |
|
| |
|
Class
A2 |
Class
A, Investor Class, Invesco Cash Reserve Shares |
|
| |
|
Class
AX |
Class
A, AX, Investor Class, Invesco Cash Reserve Shares |
|
| |
|
Investor
Class |
Class
A, Investor Class |
|
| |
|
Class
P |
Class
A, Invesco Cash Reserve Shares |
|
| |
|
Class
S |
Class
A, S, Invesco Cash Reserve Shares |
|
| |
|
Class
C |
Class
C* |
|
| |
|
Class
CX |
Class
C, CX |
|
| |
|
Class
R |
Class
R* |
|
| |
|
Class
R5 |
Class
R5 |
|
| |
|
Class
R6 |
Class
R6 |
|
| |
|
Class
Y |
Class
Y* |
|
|
|
|
* You
may exchange Class Y shares of Invesco U.S. Government Money Portfolio for Class A, C
or
R shares of any other Fund as long as you are otherwise eligible for such share class. If you
exchange
Class Y shares of Invesco U.S. Government Money Portfolio for Class A, C or R shares
of
any other Fund, you may exchange those Class A, C or R shares back into Class Y shares of
Invesco
U.S. Government Money Portfolio, but not Class Y shares of any other Fund. | |
Exchanges
into Invesco Senior Loan Fund
Invesco
Senior Loan Fund is a closed-end interval fund that continuously offers its shares pursuant to the terms and conditions of its prospectus.
The Adviser is the investment adviser for the Invesco Senior Loan Fund. As with the Invesco Funds, you generally may exchange your shares
of Class A (Invesco Cash Reserve Shares of Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio) or Class
C of any Invesco Fund for shares of Class A or Class C, respectively, of Invesco Senior Loan Fund. Please refer to the prospectus for
the Invesco Senior Loan Fund for more information, including limitations on exchanges out of Invesco Senior Loan Fund.
Exchanges
Not Permitted
The
following exchanges are not permitted:
◾
Investor
Class shares cannot be exchanged for Class A shares of any Fund which offers Investor Class shares.
◾
Class A2
shares of Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund cannot be exchanged for Class A shares
of those Funds.
◾
Invesco
Cash Reserve Shares cannot be exchanged for Class C or R shares if the shares being exchanged were acquired by exchange from Class A
shares of any Fund.
◾
All
existing systematic exchanges and reallocations will cease and these options will no longer be available on all 403(b) prototype plans.
◾
Class
A, C or R shares of a Fund acquired by exchange of Class Y shares of Invesco U.S. Government Money Portfolio cannot be exchanged for Class
Y shares of any Fund, except Class Y shares of Invesco U.S. Government Money Portfolio.
Exchange
Conditions
Shares
must have been held for at least one day prior to the exchange with the exception of dividends and distributions that are reinvested.
Under
unusual market conditions, a Fund may delay the exchange of shares
for up to five business days if it determines that it would be materially disadvantaged by the immediate transfer of exchange proceeds.
The exchange privilege is not an option or right to purchase shares. Any of the participating Funds or the distributor may modify or terminate
this privilege at any time.
Initial
Sales Charges, CDSCs and 12b-1 Fees Applicable to Exchanges
You
may be required to pay an initial sales charge when exchanging from a Fund with a lower initial sales charge than the one into which you
are exchanging. If you exchange into shares that are subject to a CDSC, the Funds’ transfer agent will begin the holding period
for purposes of calculating the CDSC on the date you made your initial purchase.
In
addition, as a result of differences in the forms of distribution plans among
the Funds, certain exchanges of Class A shares, Class C shares, and Class R shares of a Fund for the same class of shares of another Fund
may result in investors paying a higher or a lower 12b-1 fee on the Fund being exchanged into. Please refer to the prospectus fee table
and financial highlights table and the SAI for more information on the fees and expenses, including applicable 12b-1 fees, of the Fund
you wish to acquire.
Share
Class Conversions
Shares
of one class of a Fund may be converted into shares of another class of the same Fund, provided that you are eligible to buy that share
class. Investors who hold Fund shares through a financial intermediary that does not have an agreement to make certain share classes of
the Funds available or that cannot systematically support the conversion may not be eligible to convert their shares. Furthermore, your
financial intermediary may have discretion to effect a conversion on your behalf. Consult with your financial intermediary for details.
Any CDSC associated with the converting shares will be assessed immediately prior to the conversion to the new share class. The conversion
of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes and no gain
or loss will be reported on the transaction. See the applicable prospectus for share class information.
Fees
and expenses differ between share classes. You should read the prospectus
for the share class into which you are seeking to convert your shares prior to the conversion.
Automatic
Conversion of Class C and Class CX Shares
Class
C and Class CX shares held for eight years after purchase are eligible for automatic conversion into Class A and Class AX shares of the
same Fund, respectively, except that for the Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio, the Funds’
Class C and/or Class CX shares would be eligible to automatically convert into the Fund’s Invesco Cash Reserve Share Class and all
existing Class C shares of Invesco Short Term Municipal Fund will automatically convert to Class A shares of that Fund at the end of June
2022 (the Conversion Feature). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month
following the eighth anniversary after a purchase of Class C or Class CX shares (the Conversion Date). The first conversion of Class C
and Class CX shares to Class A and Class AX shares under this policy would occur at the end of December 2020 for all Class C and Class
CX shares that were held for more than eight years as of November 30, 2020.
Automatic
conversions pursuant to the Conversion Feature will be on the basis
of the NAV per share, without the imposition of any sales charge (including a CDSC), fee or other charge. All such automatic conversions
of Class C and Class CX shares will constitute tax-free exchanges for federal income tax purposes.
Class
C and Class CX shares of a Fund acquired through a reinvestment of
dividends and distributions will convert to Class A and Class AX shares, respectively, of the Fund (or Invesco Cash Reserve shares for
Invesco
A-16 The
Invesco Funds
Government
Money Market Fund) on the Conversion Date pro rata with the converting Class C and Class CX shares of that Fund that were not acquired
through reinvestment of dividends and distributions.
Class
C or Class CX shares held through a financial intermediary in existing
omnibus Employer Sponsored Retirement and Benefit Plans and other omnibus accounts may be converted pursuant to the Conversion Feature
by the financial intermediary once it is determined that the Class C or Class CX shares have been held for the required holding period.
It is the financial intermediary’s (and not the Fund’s) responsibility to keep records and to ensure that the shareholder
is credited with the proper holding period as the Fund and its agents may not have transparency into how long a shareholder has held Class
C or Class CX shares for purposes of determining whether such Class C or Class CX shares are eligible to automatically convert pursuant
to the Conversion Feature. In order to determine eligibility for automatic conversion in these circumstances, it is the responsibility
of the shareholder or their financial intermediary to determine that the shareholder is eligible to exercise the Conversion Feature, and
the shareholder or their financial intermediary may be required to maintain records that substantiate the holding period of Class C or
Class CX shares.
In
addition, a financial intermediary may sponsor and/or control programs
or platforms that impose a different conversion schedule or eligibility requirements for conversions of Class C or Class CX shares. In
these cases, Class C and Class CX shares of certain shareholders may not be eligible for automatic conversion pursuant to the Conversion
Feature as described above. The Fund has no responsibility for overseeing, monitoring or implementing a financial intermediary’s
process for determining whether a shareholder meets the required holding period for automatic conversion. Please consult with your financial
intermediary if you have any questions regarding the Conversion Feature.
Share
Class Conversions Not Permitted
The
following share class conversions are not permitted:
◾
Conversions
into Class A from Class A2 of the same Fund.
◾
Conversions
into Class A2, Class AX, Class CX, Class P or Class S of the same Fund.
Rights
Reserved by the Funds
Each
Fund and its agents reserve the right at any time to:
◾
Reject
or cancel all or any part of any purchase or exchange order.
◾
Modify
any terms or conditions related to the purchase, redemption or exchange of shares of any Fund.
◾
Reject
or cancel any request to establish a Systematic Purchase Plan or Systematic Redemption Plan.
◾
Modify
or terminate any sales charge waivers or exceptions.
◾
Suspend,
change or withdraw all or any part of the offering made by this prospectus.
Excessive
Short-Term Trading Activity (Market Timing) Disclosures
While
the Funds provide their shareholders with daily liquidity, their investment programs are designed to serve long-term investors and are
not designed to accommodate excessive short-term trading activity in violation of our policies described below. Excessive short-term trading
activity in the Funds’ shares (i.e., a purchase of Fund shares followed shortly thereafter by a redemption of such shares, or vice
versa) may hurt the long-term performance of certain Funds by requiring them to maintain an excessive amount of cash or to liquidate portfolio
holdings at a disadvantageous time, thus interfering with the efficient management of such Funds by causing them to incur increased brokerage
and administrative costs. Where excessive short-term trading activity seeks to take advantage of arbitrage opportunities from stale prices
for portfolio securities, the value of Fund shares held by long-term investors may be diluted. The Board has adopted policies and procedures
designed to discourage excessive or short-term trading of Fund shares for all Funds except the money market funds, Invesco Conservative
Income Fund, and Invesco Short Term Municipal Fund. However, there is the risk that these Funds’ policies and procedures will prove
ineffective in whole or in part to detect or prevent excessive or
short-term
trading. These Funds may alter their policies at any time without prior notice to shareholders if the Adviser believes the change would
be in the best interests of long-term shareholders.
Invesco
and certain of its corporate affiliates (Invesco and such affiliates,
collectively, the Invesco Affiliates) currently use the following tools designed to discourage excessive short-term trading in the retail
Funds:
◾
Trade
activity monitoring.
◾
Discretion
to reject orders.
◾
Purchase
blocking.
◾
The
use of fair value pricing consistent with the valuation policy approved by the Board and related procedures.
Each
of these tools is described in more detail below. Although these tools
are designed to discourage excessive short-term trading, you should understand that none of these tools alone nor all of them taken together
eliminate the possibility that excessive short-term trading activity in the Funds will occur. Moreover, each of these tools involves judgments
that are inherently subjective. Invesco Affiliates seek to make these judgments to the best of their abilities in a manner that they believe
is consistent with long-term shareholder interests.
Money
Market Funds. The Boards of Invesco Government Money Market Fund,
Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio (the money market
funds) have not adopted any policies and procedures that would limit frequent purchases and redemptions of such Funds’ shares. The
Boards of the money market funds considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal. Nonetheless, to the extent that a money market fund must maintain additional cash and/or
securities with short-term durations in greater amounts than may otherwise be required or borrow to honor redemption requests, the money
market fund’s yield could be negatively impacted.
The
Boards of the money market funds do not believe that it is appropriate
to adopt any such policies and procedures for the money market funds for the following reasons:
◾
The
money market funds are offered to investors as cash management vehicles; therefore, investors should be able to purchase and redeem shares
regularly and frequently.
◾
One
of the advantages of a money market fund as compared to other investment options is liquidity. Any policy that diminishes the liquidity
of the money market funds will be detrimental to the continuing operations of such Funds.
◾
With
respect to the money market funds maintaining a constant net asset value, the money market funds’ portfolio securities are valued
on the basis of amortized cost, and such Funds seek to maintain a constant net asset value. As a result, the money market funds are not
subject to price arbitrage opportunities.
◾
With
respect to the money market funds maintaining a constant net asset value, because such Funds seek to maintain a constant net asset value,
investors are more likely to expect to receive the amount they originally invested in the Funds upon redemption than other mutual funds.
Invesco
Conservative Income Fund. The Board of Invesco Conservative Income
Fund has not adopted any policies and procedures that would limit frequent purchases and redemptions of such Fund’s shares. The
Board of Invesco Conservative Income Fund considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal especially in light of the reasons for not having such a policy as described below. Nonetheless,
to the extent that the Fund must maintain additional cash and/or securities with short-term durations in greater amounts than may otherwise
be required or borrow to honor redemption requests, the Fund’s yield could be negatively impacted.
The
Board of the Invesco Conservative Income Fund does not believe that
it is appropriate to adopt any such policies and procedures for the Fund for the following reasons:
◾
The
Fund is offered to investors as a cash management vehicle; investors perceive an investment in the Fund as an alternative to cash and
must be able to purchase and redeem shares regularly and frequently.
A-17 The
Invesco Funds
◾
One
of the advantages of the Fund as compared to other investment options is liquidity. Any policy that diminishes the liquidity of the Fund
will be detrimental to the continuing operations of the Fund.
Excessive
trading activity in the Fund’s shares may cause the Fund to incur
increased brokerage and administrative costs.
The
Fund and its agent reserve the right at any time to reject or cancel any
part of any purchase order. This could occur if the Fund determines that such purchase may disrupt the Fund’s operation or performance.
Invesco
Short Term Municipal Fund. The Board of Invesco Short Term Municipal
Fund has not adopted any policies and procedures that would limit frequent purchases and redemptions of such Fund’s shares. The
Board of Invesco Short Term Municipal Fund considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal, especially in light of the reasons for not having such a policy as described below. Nonetheless,
to the extent that the Fund must maintain additional cash and/or securities with short-term durations in greater amounts than may otherwise
be required or borrow to honor redemption requests, the Fund’s yield could be negatively impacted.
The
Board of Invesco Short Term Municipal Fund does not believe that it is
appropriate to adopt any such policies and procedures for the Fund for the following reasons:
◾
The
Fund is designed to address the needs of retail investors who seek liquidity in their investment and seek the ability to purchase and
redeem shares at any time.
◾
Any
policy that diminishes the ability of shareholders to purchase and redeem shares of the Fund will be detrimental to the continuing operations
of the Fund.
◾
The
Fund generally invests in short duration liquid investment grade municipal securities.
Excessive
trading activity in the Fund’s shares may cause the Fund to incur
increased brokerage and administrative costs. The Fund and its agent reserve the right at any time to reject or cancel any part of any
purchase order. This could occur if the Fund determines that such purchase may disrupt the Fund’s operation or performance.
Trade
Activity Monitoring
Invesco
Affiliates monitor selected trades on a daily basis in an effort to detect excessive short-term trading activities. If, as a result of
this monitoring, Invesco Affiliates believe that a shareholder has engaged in excessive short-term trading, they will seek to act in a
manner that they believe is consistent with the best interests of long-term investors, which may include taking steps such as (i) asking
the shareholder to take action to stop such activities or (ii) refusing to process future purchases or exchanges related to such activities
in the shareholder’s accounts other than exchanges into a money market fund. Invesco Affiliates will use reasonable efforts to apply
the Funds’ policies uniformly given the practical limitations described above.
The
ability of Invesco Affiliates to monitor trades that are made through accounts
that are maintained by intermediaries (rather than the Funds’ transfer agent) and through conduit investment vehicles may be limited
or non-existent.
Discretion
to Reject Orders
If
a Fund or an Invesco Affiliate determines, in its sole discretion, that your short-term trading activity is excessive, the Fund may, in
its sole discretion, reject any additional purchase and exchange orders. This discretion may be exercised with respect to purchase or
exchange orders placed directly with the Funds’ transfer agent or through a financial intermediary.
Purchase
Blocking Policy
The
Funds (except those listed below) have adopted a policy under which any shareholder redeeming shares having a value of $50,000 or more
from a Fund on any trading day will be precluded from investing in that Fund for 30 calendar days after the redemption transaction date.
The policy applies to redemptions and purchases that are part of exchange transactions. Under the purchase blocking policy, certain purchases
will not be prevented and certain redemptions will not trigger a purchase block, such as: purchases
and redemptions
of shares having a value of less than $50,000; systematic purchase, redemption and exchange account options; transfers of shares within
the same Fund; non-discretionary rebalancing in fund-of-funds; asset allocation features; fee-based accounts; account maintenance fees;
small balance account fees; plan-level omnibus Retirement and Benefit Plans; death and disability and hardship distributions; loan transactions;
transfers of assets; Retirement and Benefit Plan rollovers; IRA conversions and re-characterizations; and mandatory distributions from
Retirement and Benefit Plans.
The
Funds reserve the right to modify any of the parameters (including those
not listed above) of the purchase blocking policy at any time. Further, the purchase blocking policy may be waived with respect to specific
shareholder accounts in those instances where the Adviser determines that its surveillance procedures are adequate to detect frequent
trading in Fund shares.
If
an account is maintained by a financial intermediary whose systems are
unable to apply Invesco’s purchase blocking policy, the Adviser will accept the establishment of an account only if the Adviser
believes the policies and procedures are reasonably designed to enforce the frequent trading policies of the Funds. You should refer to
disclosures provided by the financial intermediary with which you have an account to determine the specific trading restrictions that
apply to you. If the Adviser identifies any activity that may constitute frequent trading, it reserves the right to contact the intermediary
and request that the intermediary either provide information regarding an account owner’s transactions or restrict the account owner’s
trading. There is no guarantee that all instances of frequent trading in Fund shares will be prevented.
The
purchase blocking policy does not apply to Invesco Conservative Income
Fund, Invesco Short Term Municipal Fund, Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government
Money Portfolio and Invesco U.S. Government Money Portfolio.
Pricing
of Shares
Determination
of Net Asset Value
The
price of each Fund’s shares is the Fund’s net asset value per share. The Funds (except Invesco Government Money Market Fund,
Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio) value portfolio
securities for which market quotations are readily available at market value. Securities and other assets quoted in foreign currencies
are valued in U.S. dollars based on the prevailing exchange rates on that day. The Funds (except Invesco Government Money Market Fund,
Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio) value securities
and assets for which market quotations are unavailable at their “fair value,” which is described below. Invesco Government
Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio
value portfolio securities on the basis of amortized cost, which approximates market value. This method of valuation is designed to enable
a Fund to price its shares at $1.00 per share. The Funds cannot guarantee their net asset value will always remain at $1.00 per share.
Securities and other assets quoted in foreign currencies are valued in U.S. dollars based on the prevailing exchange rates on that day.
The Fund values securities and assets for which market quotations are unavailable at their “fair value,” which is described
below.
Even
when market quotations are available, they may be stale or not
representative of market value in the Adviser’s judgment (“unreliable”)
because the security is not traded frequently, trading on the security
ceased before the close of the trading market or issuer specific events occurred after the security ceased trading or because of the passage
of time between the close of the market on which the security trades and the close of the NYSE and when the Fund calculates its net asset
value. Issuer specific events may cause the last market quotation to be unreliable. Such events may include a merger or insolvency, events
that affect a geographical area or an industry segment, such as political events or natural disasters, or market events, such as a significant
movement in the U.S. market. Where
A-18 The
Invesco Funds
the Adviser
determines that the closing price of the security is stale or unreliable, the Adviser will value the security at its fair value.
A
fair value price is an estimated price that requires consideration of all appropriate factors, including indications of fair value available
from pricing services. Fair value pricing involves judgment and a Fund that uses fair value methodologies may value securities higher
or lower than another Fund using market quotations or its own fair value methodologies to price the same securities. Investors who purchase
or redeem Fund shares on days when the Fund is holding fair-valued securities may receive a greater or lesser number of shares, or higher
or lower redemption proceeds, than they would have received if the Fund had not fair-valued the security or had used a different methodology.
The
Board has designated the Adviser to perform the daily determination
of fair value prices in accordance with Board approved
policies and related procedures,
subject to the Board’s oversight. Fair value pricing methods
and pricing services can change from time to time.
The
intended effect of applying fair value pricing is to compute an NAV that
accurately reflects the value of a Fund’s portfolio at the time that the NAV is calculated. An additional intended effect is to
discourage those seeking to take advantage of arbitrage opportunities resulting from “stale” prices and to mitigate the dilutive
impact of any such arbitrage. However, the application of fair value pricing cannot eliminate the possibility that arbitrage opportunities
will exist.
Specific
types of securities are valued as follows:
Senior
Secured Floating Rate Loans and Senior Secured Floating Rate Debt
Securities. Senior secured floating rate loans and senior secured
floating rate debt securities are fair valued using evaluated quotes provided by an independent pricing service. Evaluated quotes provided
by the pricing service may reflect appropriate factors such as market quotes, ratings, tranche type, industry, company performance, spread,
individual trading characteristics, institution-size trading in similar groups of securities and other market data.
Domestic
Exchange Traded Equity Securities. Market quotations are generally
available and reliable for domestic exchange traded equity securities. If market quotations are not available or are unreliable, the Adviser
will value the security at fair value in good faith using the valuation policy approved by the Board and related procedures.
Foreign
Securities. If market quotations are available and reliable for
foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign
securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular
security and the close of the customary trading session on the NYSE events occur that are significant and may make the closing price unreliable,
the Fund may fair value the security. If an issuer specific event has occurred that the Adviser determines, in its judgment, is likely
to have affected the closing price of a foreign security, it will price the security at fair value. The Adviser also relies on a screening
process from a pricing vendor to indicate the degree of certainty, based on historical data, that the closing price in the principal market
where a foreign security trades is not the current market value as of the close of the NYSE. For foreign securities where the Adviser
believes, at the approved degree of certainty, that the price is not reflective of current market value, the Adviser will use the indication
of fair value from the pricing service to determine the fair value of the security. The pricing vendor, pricing methodology or degree
of certainty may change from time to time.
Fund
securities primarily traded on foreign markets may trade on days that
are not business days of the Fund. Because the net asset value of Fund shares is determined only on business days of the Fund, the value
of the portfolio securities of a Fund that invests in foreign securities may change on days when you will not be able to purchase or redeem
shares of the Fund.
Fixed
Income Securities. Fixed income securities, such as government,
corporate, asset-backed and municipal bonds, convertible securities, including high yield or junk bonds, and loans, generally are valued
on the basis of prices provided by independent pricing services. Prices provided by the pricing services may be determined without exclusive
reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in
similar
groups of securities, developments related to special securities, dividend rate, maturity and other market data. Pricing services generally
value fixed income securities assuming orderly transactions of institutional round lot size, but a Fund may hold or transact in the same
securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Prices received from pricing
services are fair value prices. In addition, if the price provided by the pricing service and independent quoted prices are unreliable,
the Adviser will fair value the security using the valuation policy approved by the Board and related procedures.
Short-term
Securities. Invesco Government Money Market Fund, Invesco Premier
Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio value all their securities at amortized
cost. Invesco Limited Term Municipal Income Fund values variable rate securities that have an unconditional demand or put feature exercisable
within seven days or less at par, which reflects the market value of such securities.
Futures
and Options. Futures contracts are valued at the final settlement
price set by the exchange on which they are principally traded. U.S.
exchange-traded options are valued at the mean between the last
bid and asked prices from the exchange on which they principally trade. Non-U.S. exchange-traded options are valued at the final settlement
price set by
the exchange on which they trade. Options not listed on an exchange and swaps generally are valued using pricing provided from independent
pricing services.
Swap
Agreements. Swap Agreements are fair valued using an evaluated
quote provided by an independent pricing service. Evaluated quotes provided by the pricing service are based on a model that may include
end of day net present values, spreads, ratings, industry and company performance.
Open-end
Funds. If a Fund invests in other open-end funds, other than open-end
funds that are exchange traded, the investing Fund will calculate its net asset value using the net asset value of the underlying fund
in which it invests, and the prospectuses for such open-end funds explain the circumstances under which they will use fair value pricing
and the effects of using fair value pricing.
Each
Fund, except for Invesco Government Money Market Fund, Invesco Premier
Portfolio and Invesco Premier U.S. Government Money Portfolio, generally determines the net asset value of its shares on each day the
NYSE is open for trading (a business day) as of approximately 4:00 p.m. Eastern Time (the customary close of regular trading) or earlier
in the case of a scheduled early close. In the event of an unscheduled early close of the NYSE, each Fund, except for Invesco Government
Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio, generally still will determine the net
asset value of its shares as of 4:00 p.m. Eastern Time on that business day. Portfolio securities traded on the NYSE would be valued at
their closing prices unless the Adviser determines
that a “fair value” adjustment is appropriate due to subsequent events occurring after an early close consistent with the
valuation policy approved
by the Board and related procedures. Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government
Money Portfolio will generally determine the net asset value of their shares at 5:30 p.m. Eastern Time on each business day. A business
day for Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio is any day
that (1) both the Federal Reserve Bank of New York and a Fund’s custodian are open for business and (2) the primary trading markets
for the Fund’s portfolio instruments are open and the Fund’s management believes there is an adequate market to meet purchase
and redemption requests. Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money
Portfolio are authorized not to open for trading on a day that is otherwise a business day if the Securities Industry and Financial Markets
Association (SIFMA) recommends that government securities dealers not open for trading; any such day will not be considered a business
day. Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio, Invesco
U.S. Government Money Portfolio also may close early on a business day if SIFMA recommends that government securities dealers close early.
If
A-19 The
Invesco Funds
Invesco
Government Money Market Fund, Invesco Premier Portfolio or Invesco Premier U.S. Government Money Portfolio uses its discretion to
close early on a business day, the Fund will calculate its net asset value as of the time of such closing Invesco Premier Portfolio and
Invesco U.S. Government Money Portfolio are authorized to not open for trading on a day that is otherwise a business day if the NYSE recommends
that government securities dealers not open for trading; any such day will not be considered a business day. Invesco Premier Portfolio
also may close early on a business day if the NYSE recommends that government securities dealers close early.
For
financial reporting purposes and shareholder transactions on the last
day of the fiscal quarter, transactions are normally accounted for on a trade date basis. For purposes of executing shareholder transactions
in the normal course of business (other than shareholder transactions at a fiscal period-end), each Fund’s portfolio securities
transactions are recorded no later than the first business day following the trade date.
The
Invesco Advantage International Fund, Invesco Balanced-Risk Allocation
Fund, Invesco Balanced-Risk Commodity Strategy Fund, Invesco Fundamental Alternatives Fund, Invesco Global Allocation Fund, Invesco Global
Strategic Income Fund, Invesco Gold & Special Minerals Fund, Invesco High Yield Bond Factor Fund, Invesco International Bond Fund
and Invesco Macro Allocation Strategy Fund may each invest up to 25% of their total assets in shares of their respective subsidiaries
(the Subsidiaries). The Subsidiaries offer to redeem all or a portion of their shares at the current net asset value per share every regular
business day. The value of shares of the Subsidiaries will fluctuate with the value of the respective Subsidiary’s portfolio investments.
The Subsidiaries price their portfolio investments pursuant to the same pricing and valuation methodologies and procedures used by the
Funds, which require, among other things, that each of the Subsidiaries’ portfolio investments be marked-to-market (that is, the
value on each of the Subsidiaries’ books changes) each business day to reflect changes in the market value of the investment.
Each
Fund’s current net asset value per share is made available on the Funds’
website at www.invesco.com/us.
Fair
Value Pricing
Securities
owned by a Fund (except Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio
and Invesco U.S. Government Money Portfolio) are to be valued at current market value if market quotations are readily available. All
other securities and assets of a Fund for which market quotations are not readily available are to be valued at fair value determined
in good faith consistent with the valuation policy approved by the Board and related procedures. An effect of fair value pricing may be
to reduce the ability of frequent traders to take advantage of arbitrage opportunities resulting from potentially “stale”
prices of portfolio holdings. However, it cannot eliminate the possibility of frequent trading.
The
price a Fund could receive upon the sale of any investment may differ
from the Adviser's valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair
valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions
(i.e., publicly traded company multiples, growth rate, time to exit), to determine a methodology that will result in a valuation that
the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value
from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and
the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the
investment.
Timing
of Orders
Each
Fund prices purchase, exchange and redemption orders at the net asset value next calculated by the Fund after the Fund’s transfer
agent, authorized agent or designee receives an order in good order for the Fund. Purchase, exchange and redemption orders must be received
prior to the close of business on a business day, as defined by the applicable Fund, to receive that day’s net asset value. Any
applicable sales charges are applied at the time an order is processed.
Currently,
certain financial intermediaries may serve as agents for the Funds
and accept orders on their behalf. Where a financial intermediary serves as agent, the order is priced at the Fund’s net asset value
next calculated after it is accepted by the financial intermediary. In such cases, if requested by a Fund, the financial intermediary
is responsible for providing information with regard to the time that such order for purchase, redemption or exchange was received. Orders
submitted through a financial intermediary that has not received authorization to accept orders on a Fund’s behalf are priced at
the Fund’s net asset value next calculated by the Fund after it receives the order from the financial intermediary and accepts it,
which may not occur on the day submitted to the financial intermediary.
Additional
Information Regarding Deferred Tax Liability (only applicable to the Invesco Steelpath Funds)
In
calculating the Fund’s daily NAV, the Fund will, among other things, account for its deferred tax liability and/or asset balances.
As a result, any deferred tax liability and/or asset is reflected in the Fund’s daily NAV.
The
Fund will accrue a deferred income tax liability balance, at the U.S. federal
corporate income tax rate plus an estimated state and local income tax rate for its future tax liability associated with MLP distributions
considered to be a return of capital, as well as for its future tax liability associated with the capital appreciation of its investments.
The Fund’s current and deferred tax liability, if any, will depend upon the Fund’s net investment gains and losses and realized
and unrealized gains and losses on investments and therefore may vary greatly from year to year depending on the nature of the Fund’s
investments, the performance of those investments and general market conditions. Any deferred tax liability balance will reduce the Fund’s
NAV. Upon the Fund’s sale of an MLP security, the Fund may be liable for previously deferred taxes.
The
Fund will accrue, in accordance with generally accepted accounting principles,
a deferred tax asset balance, which reflects an estimate of the Fund’s future tax benefit associated with net operating losses and
unrealized losses. Any deferred tax asset balance will increase the Fund’s NAV. To the extent the Fund has a deferred tax asset
balance, the Fund will assess, in accordance with generally accepted accounting principles, whether a valuation allowance, which would
offset the value of some or all of the Fund’s deferred tax asset balance, is required. Pursuant to Financial Accounting Standards
Board Accounting Standards Codification 740 (FASB ASC 740), the Fund will assess a valuation allowance to reduce some or all of the deferred
tax asset balance if, based on the weight of all available evidence, both negative and positive, it is more likely than not that some
or all of the deferred tax asset will not be realized. The Fund will use judgment in considering the relative impact of negative and positive
evidence. The weight given to the potential effect of negative and positive evidence will be commensurate with the extent to which such
evidence can be objectively verified. The Fund’s assessment considers, among other matters, the nature, frequency and severity of
current and cumulative losses, the duration of statutory carry forward periods and the associated risk that operating loss and capital
loss carry forwards may be limited or expire unused, and unrealized gains and losses on investments. Consideration is also given to market
cycles, the severity and duration of historical deferred tax assets, the impact of redemptions, and the level of MLP distributions. The
Fund will assess whether a valuation allowance is required to offset some or all of any deferred tax asset in connection with the calculation
of the Fund’s NAV per share each day; however, to the extent the final valuation allowance differs from the estimates the Fund used
in calculating the Fund’s daily NAV, the application of such final valuation allowance could have a material impact on the Fund’s
NAV.
The
Fund’s deferred tax asset and/or liability balances are estimated using
estimates of effective tax rates expected to apply to taxable income in the years such balances are realized. The Fund will rely to some
extent on information provided by MLPs in determining the extent to which distributions received from MLPs constitute a return of capital,
which may not be provided to the Fund on a timely basis, to estimate the Fund’s deferred tax liability and/or asset balances for
purposes of financial statement reporting and determining its NAV. If such information is not
A-20 The
Invesco Funds
received
from such MLPs on a timely basis, the Fund will estimate the extent to which distributions received from MLPs constitute a return of capital
based on average historical tax characterization of distributions made by MLPs. The Fund’s estimates regarding its deferred tax
liability and/or asset balances are made in good faith; however, the daily estimate of the Fund’s deferred tax liability and/or
asset balances used to calculate the Fund’s NAV could vary dramatically from the Fund’s actual tax liability. Actual income
tax expense, if any, will be incurred over many years, depending on if and when investment gains and losses are realized, the then-current
basis of the Fund’s assets and other factors. As a result, the determination of the Fund’s actual tax liability may have a
material impact on the Fund’s NAV. The Fund’s daily NAV calculation will be based on then current estimates and assumptions
regarding the Fund’s deferred tax liability and/or asset balances and any applicable valuation allowance, based on all information
available to the Fund at such time. From time to time, the Fund may modify its estimates or assumptions regarding its deferred tax liability
and/or asset balances and any applicable valuation allowance as new information becomes available. Modifications of the Fund’s estimates
or assumptions regarding its deferred tax liability and/or asset balances and any applicable valuation allowance, changes in generally
accepted accounting principles or related guidance or interpretations thereof, limitations imposed on net operating losses (if any) and
changes in applicable tax law could result in increases or decreases in the Fund’s NAV per share, which could be material.
Taxes
(applicable to all Funds except for the Invesco SteelPath Funds and Invesco Master Loan Fund)
A
Fund intends to qualify each year as a regulated investment company (RIC) and, as such, is not subject to entity-level tax on the income
and gain it distributes to shareholders. If you are a taxable investor, dividends and distributions you receive from a Fund generally
are taxable to you whether you reinvest distributions in additional Fund shares or take them in cash. Every year, you will be sent information
showing the amount of dividends and distributions you received from a Fund during the prior calendar year. In addition, investors in taxable
accounts should be aware of the following basic tax points as supplemented below where relevant:
Fund Tax
Basics
◾
A
Fund earns income generally in the form of dividends or interest on its investments. This income, less expenses incurred in the operation
of a Fund, constitutes the Fund’s net investment income from which dividends may be paid to you. If you are a taxable investor,
distributions of net investment income generally are taxable to you as ordinary income.
◾
Distributions
of net short-term capital gains are taxable to you as ordinary income. A Fund with a high portfolio turnover rate (a measure of how frequently
assets within a Fund are bought and sold) is more likely to generate short-term capital gains than a Fund with a low portfolio turnover
rate.
◾
Distributions
of net long-term capital gains are taxable to you as long-term capital gains no matter how long you have owned your Fund shares.
◾
A
portion of income dividends paid by a Fund to you may be reported as qualified dividend income eligible for taxation by individual shareholders
at long-term capital gain rates, provided certain holding period requirements are met. These reduced rates generally are available for
dividends derived from a Fund’s investment in stocks of domestic corporations and qualified foreign corporations. In the case of
a Fund that invests primarily in debt securities, either none or only a nominal portion of the dividends paid by the Fund will be eligible
for taxation at these reduced rates.
◾
The
use of derivatives by a Fund may cause the Fund to realize higher amounts of ordinary income or short-term capital gain, distributions
from which are taxable to individual shareholders at ordinary income tax rates rather than at the more favorable tax rates for long-term
capital gain.
◾
Distributions
declared to shareholders with a record date in October, November or December—if paid to you by the end of January—are taxable
for federal income tax purposes as if received in December.
◾
Any
long-term or short-term capital gains realized on the sale or redemption of your Fund shares will be subject to federal income tax. For
tax
purposes an exchange of your shares for shares of another Fund is the same as a sale. An exchange occurs when the purchase of shares of
a Fund is made using the proceeds from a redemption of shares of another Fund and is effectuated on the same day as the redemption. Your
gain or loss is calculated by subtracting from the gross proceeds your cost basis. Gross proceeds and, for shares acquired on or after
January 1, 2012 and disposed of after that date, cost basis will be reported to you and the Internal Revenue Service (IRS). Cost
basis will be calculated using the Fund’s default method of average cost, unless you instruct the Fund to use a different calculation
method. As a service to you, the Fund will continue to provide to you (but not the IRS) cost basis information for shares acquired before
2012, when available, using the average cost method. Shareholders should carefully review the cost basis information provided by a Fund
and make any additional basis, holding period or other adjustments that are required when reporting these amounts on their federal income
tax returns. If you hold your Fund shares through a broker (or other nominee), please contact that broker (nominee) with respect to reporting
of cost basis and available elections for your account. For more information about the cost basis methods offered by Invesco, please refer
to the Tax Center located under the Account Access & Forms menu of our website at www.Invesco.com/us.
◾
The
conversion of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes
and no gain or loss will be reported on the transaction. This is true whether the conversion occurs automatically pursuant to the terms
of the class or is initiated by the shareholder.
◾
At
the time you purchase your Fund shares, the Fund’s net asset value may reflect undistributed income or undistributed capital gains.
A subsequent distribution to you of such amounts, although constituting a return of your investment, would be taxable. Buying shares in
a Fund just before it declares an income dividend or capital gains distribution is sometimes known as “buying a dividend.”
In addition, a Fund’s net asset value may, at any time, reflect net unrealized appreciation, which may result in future taxable
distributions to you.
◾
By
law, if you do not provide a Fund with your proper taxpayer identification number and certain required certifications, you may be subject
to backup withholding on any distributions of income, capital gains, or proceeds from the sale of your shares. A Fund also must withhold
if the IRS instructs it to do so. When withholding is required, the amount will be 24% of any distributions or proceeds paid.
◾
An
additional 3.8% Medicare tax is imposed on certain net investment income (including ordinary dividends and capital gain distributions
received from a Fund and net gains from redemptions or other taxable dispositions of Fund shares) of U.S. individuals, estates and trusts
to the extent that such person’s “modified adjusted gross income” (in the case of an individual) or “adjusted
gross income” (in the case of an estate or trust) exceeds a threshold amount. This Medicare tax, if applicable, is reported by you
on, and paid with, your federal income tax return.
◾
You
will not be required to include the portion of dividends paid by a Fund derived from interest on U.S. government obligations in your
gross income for purposes of personal and, in some cases, corporate income taxes in many state and local tax jurisdictions. The percentage
of dividends that constitutes dividends derived from interest on federal obligations will be determined annually. This percentage may
differ from the actual percentage of interest received by the Fund on federal obligations for the particular days on which you hold shares.
◾
Fund
distributions and gains from sale or exchange of your Fund shares generally are subject to state and local income taxes.
◾
If
a Fund qualifies to pass through to you the tax benefits from foreign taxes it pays on its investments, and elects to do so, then any
foreign taxes it pays on these investments may be passed through to you. You will then be required to include your pro-rata share of these
taxes in gross income, even though not actually received by you, and will be entitled either to deduct your share of these taxes in computing
your taxable income, or to claim a foreign tax credit for these taxes against your U.S. federal income tax.
A-21 The
Invesco Funds
◾
Foreign
investors should be aware that U.S. withholding, special certification requirements to avoid U.S. backup withholding and claim
any treaty benefits, and estate taxes may apply to an investment in a Fund.
◾
Under
the Foreign Account Tax Compliance Act (FATCA), a Fund will be required to withhold a 30% tax on income dividends made by the Fund to
certain foreign entities, referred to as foreign financial institutions or non-financial foreign entities, that fail to comply (or be
deemed compliant) with extensive reporting and withholding requirements designed to inform the U.S. Department of the Treasury of U.S.-owned
foreign investment accounts. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide otherwise (which
is not expected). A Fund may disclose the information that it receives from its shareholders to the IRS, non-U.S. taxing authorities or
other parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that is a shareholder
of a Fund fails to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.
◾
If
a Fund invests in an underlying fund taxed as a RIC, please see any relevant section below for more information regarding the Fund’s
investment in such underlying fund.
The
above discussion concerning the taxability of Fund dividends and distributions and of redemptions and exchanges of Fund shares is inapplicable
to investors holding shares through a tax-advantaged arrangement, such as Retirement and Benefit Plans or 529 college savings plans. Such
investors should refer to the applicable account documents/program description for that arrangement for more information regarding the
tax consequences of holding and redeeming Fund shares.
Funds
Investing in Municipal Securities
◾
You
will not be required to include the “exempt-interest” portion of dividends paid by the Fund in either your gross income for
federal income tax purposes or your net investment income subject to the additional 3.8% Medicare tax. You will be required to report
the receipt of exempt-interest dividends and other tax-exempt interest on your federal income tax returns. The percentage of dividends
that constitutes exempt-interest dividends will be determined annually. This percentage may differ from the actual percentage of exempt
interest received by the Fund for the particular days in which you hold shares.
◾
A
Fund may invest in municipal securities the interest on which constitutes an item of tax preference and could give rise to a federal alternative
minimum tax liability for noncorporate shareholders, unless such municipal securities were issued in 2009 or 2010.
◾
Exempt-interest
dividends from interest earned on municipal securities of a state, or its political subdivisions, generally are exempt from that state’s
personal income tax. Most states, however, do not grant tax-free treatment to interest from municipal securities of other states.
◾
A
Fund may invest a portion of its assets in securities that pay income that is not tax-exempt. To the extent that dividends paid by a Fund
are derived from taxable investments or realized capital gains, they will be taxable as ordinary income or long-term capital gains.
◾
A
Fund may distribute to you any market discount and net short-term capital gains from the sale of its portfolio securities. If you are
a taxable investor, Fund distributions from this income are taxable to you as ordinary income, and generally will neither qualify for
the dividends-received deduction in the case of corporate shareholders nor as qualified dividend income subject to reduced rates of taxation
in the case of noncorporate shareholders.
◾
Exempt-interest
dividends from a Fund are taken into account when determining the taxable portion of your social security or railroad retirement benefits,
may be subject to state and local income taxes, may affect the deductibility of interest on certain indebtedness, and may have other collateral
federal income tax consequences for you.
◾
There
are risks that: (a) a security issued as tax-exempt may be reclassified by the IRS or a state tax authority as taxable and/or (b) future
legislative,
administrative or court actions could adversely impact the qualification of income from a tax-exempt security as tax-free. Such reclassifications
or actions could cause interest from a security to become taxable, possibly retroactively, subjecting you to increased tax liability.
In addition, such reclassifications or actions could cause the value of a security, and therefore, the value of the Fund’s shares,
to decline.
Money
Market Funds
◾
A
Fund does not anticipate realizing any long-term capital gains.
◾
If
a Fund expects to maintain a stable net asset value of $1.00 per share, investors should not have any gain or loss on sale or exchange
of Fund shares (unless the investor incurs a liquidity fee on such sale or exchange). See “Liquidity Fees and Redemption Gates.”
◾
There
is some degree of uncertainty with respect to the tax treatment of liquidity fees received by a Fund, and such tax treatment may be the
subject of future IRS guidance. If a Fund receives liquidity fees, it will consider the appropriate tax treatment of such fees to the
Fund at such time.
◾
Unless
you choose to adopt a simplified “NAV method” of accounting (described below), any capital gain or loss on the sale or exchange
of Fund shares (as noted above) generally will be treated either as short-term if you held your Fund shares for one year or less, or long-term
if you held your Fund shares longer. If you elect to adopt the NAV method of accounting, rather than computing gain or loss on every taxable
disposition of Fund shares as described above, you would determine your gain or loss based on the change in the aggregate value of your
Fund shares during a computation period (such as your taxable year), reduced by your net investment (purchases minus sales) in those shares
during that period. Under the NAV method, any resulting net capital gain or loss would be treated as short-term capital gain or loss.
Funds
Investing in Real Estate Securities
◾
Because
of “noncash” expenses such as property depreciation, the cash flow of a REIT that owns properties will exceed its taxable
income. The REIT, and in turn a Fund, may distribute this excess cash to shareholders. Such a distribution is classified as a return of
capital. Return of capital distributions generally are not taxable to you. Your cost basis in your Fund shares will be decreased by the
amount of any return of capital. Any return of capital distributions in excess of your cost basis will be treated as capital gains.
◾
Dividends
paid to shareholders from the Funds’ investments in U.S. REITs generally will not qualify for taxation at long-term capital gain
rates applicable to qualified dividend income.
◾
The
Fund may derive “excess inclusion income” from certain equity interests in mortgage pooling vehicles either directly or through
an investment in a U.S. REIT. Please see the SAI for a discussion of the risks and special tax consequences to shareholders in the event
the Fund realizes excess inclusion income in excess of certain threshold amounts.
◾
Under
the Tax Cuts and Jobs Act, “qualified REIT dividends” (i.e., ordinary REIT dividends other than capital gain dividends and
portions of REIT dividends designated as qualified dividend income) are treated as eligible for a 20% deduction by noncorporate taxpayers.
The Fund may choose to report the special character of “qualified REIT dividends” to a shareholder, provided both the Fund
and a shareholder meet certain holding period requirements with respect to their shares.
◾
The
Fund’s foreign shareholders should see the SAI for a discussion of the risks and special tax consequences to them from a sale of
a U.S. real property interest by a REIT in which the Fund invests.
Funds
Investing in Partnerships
◾
Taxes,
penalties, and interest associated with an audit of a partnership
are generally required to be assessed and collected at the partnership level. Therefore, an adverse federal income tax audit of a partnership
that a Fund invests in (including MLPs taxed as partnerships) could result in the Fund being required to pay federal income tax. A Fund
may have little input in any audit asserted against a partnership and may be contractually or legally obligated to make payments in regard
to deficiencies asserted without the ability to put forward an independent defense. Accordingly,
A-22 The
Invesco Funds
even
if a partnership in which the Fund invests were to remain classified as a partnership (instead of as a corporation), it could be required
to pay additional taxes, interest and penalties as a result of an audit adjustment, and the Fund, as a direct or indirect partner of such
partnership, could be required to bear the economic burden of those taxes, interest and penalties, which would reduce the value of Fund
shares.
◾
Under
the Tax Cuts and Jobs Act “qualified publicly traded partnership income” is treated as eligible for a 20% deduction by noncorporate
taxpayers. The legislation does not contain a provision permitting a RIC, such as a Fund, to pass the special character of this income
through to its shareholders. It is uncertain whether a future technical corrections bill or regulations issued by the IRS will address
this issue to enable a Fund to pass through the special character of “qualified publicly traded partnership income” to its
shareholders.
◾
Some
amounts received by a Fund from the MLPs in which it invests likely will be treated as returns of capital to such Fund because of accelerated
deductions available to the MLPs. The receipt of returns of capital from the MLPs in which a Fund invests could cause some or all of the
Fund’s distributions to be classified as a return of capital. Return of capital distributions generally are not taxable to you.
Your cost basis in your Fund shares will be decreased by the amount of any return of capital. Any return of capital distributions in excess
of your cost basis will be treated as capital gains.
Funds
Investing in Commodities
◾
The
Funds’ strategies of investing through their respective Subsidiary in derivatives and other financially linked instruments whose
performance is expected to correspond to the commodity markets may cause the Funds to recognize more ordinary income and short-term capital
gains taxable as ordinary income than would be the case if the Funds invested directly in commodities.
◾
The
Funds must meet certain requirements under the Code for favorable tax treatment as a RIC, including asset diversification and income requirements.
The IRS has issued a revenue ruling which holds that income derived from commodity-linked swaps is not qualifying income for purposes
of the Income Requirement. In a subsequent revenue ruling, as well as in a number of follow-on private letter rulings (upon which only
the fund that received the private letter ruling may rely), the IRS provides that income from certain alternative investments which create
commodity exposure, such as certain commodity-linked or structured notes or a corporate subsidiary that invests in commodities, may be
considered qualifying income under the Code. However, the portion of such rulings relating to the treatment of a corporation as a regulated
investment company that require a determination of whether a financial instrument or position is a security under section 2(a)(36) of
the 1940 Act was revoked because of changes in the IRS’s position.
(A financial instrument or position that constitutes a security
under section 2(a)(36) of the 1940 Act generates qualifying income for a corporation taxed as a regulated investment company.) The Funds
intend to treat the income each derives from commodity-linked notes as qualifying income based on an opinion from counsel confirming that
income from such investments should be qualifying income because such commodity-linked notes constitute securities under section 2(a)(36)
of the 1940 Act. Each Subsidiary will be classified for federal income tax purposes as a controlled foreign corporation (CFC) with respect
to the Fund. As such, the Fund will be required to include in its gross income each year amounts earned by the Subsidiary during that
year (“Subpart F” income), whether or not such earnings are distributed by the Subsidiary to the Fund (deemed inclusions).
Treasury Regulations also permit the Fund to treat such deemed inclusions of “Subpart F” income from the Subsidiary as qualifying
income to the Fund, even if the Subsidiary does not make a distribution of such income. Consequently, the Fund and the Subsidiary reserve
the right to rely on deemed inclusions being treated as qualifying income to the Fund consistent with recently released Treasury Regulations.
If, contrary to the opinion of counsel or other guidance issued by the IRS, the IRS were to determine that income from direct investment
in commodity-linked notes is non-qualifying, a Fund might fail to satisfy
the
income requirement. In lieu of disqualification, the Funds are permitted to pay a tax for certain failures to satisfy the asset diversification
or income requirements, which, in general, are limited to those due to reasonable cause and not willful neglect. The Funds intend to limit
their investments in their respective Subsidiary to no more than 25% of the value of each Fund’s total assets in order to satisfy
the asset diversification requirement.
Funds
Investing in Foreign Currencies
◾
The
Funds may realize gains from the sale or other disposition of foreign currencies (including but not limited to gains from options, futures
or forward contracts) derived from investing in securities or foreign currencies. The U.S. Treasury Department is authorized to issue
regulations on whether the realization of such foreign currency gains is qualified income for the Funds. If such regulations are issued,
each Fund may not qualify as a RIC and/or the Fund may change its investment policy. As of the date of this prospectus, no regulations
have been issued pursuant to this authorization. It is possible, however, that such regulations may be issued in the future. Additionally,
the IRS has not issued any guidance on how to apply the asset diversification test to such foreign currency positions. Thus, the IRS’
determination as to how to treat such foreign currency positions for purposes of satisfying the asset diversification test might differ
from that of each Fund resulting in the Fund’s failure to qualify as a RIC. In lieu of disqualification, each Fund is permitted
to pay a tax for certain failures to satisfy the asset diversification or income requirements, which, in general, are limited to those
due to reasonable cause and not willful neglect.
◾
The
Funds’ transactions in foreign currencies may give rise to ordinary income or loss to the extent such income or loss results from
fluctuations in the value of the foreign currency concerned. This treatment could increase or decrease the Funds' ordinary income distributions
to you, and may cause some or all of the Funds' previously distributed income to be classified as a return of capital. Return of capital
distributions generally are not taxable to you. Your cost basis in your Fund shares will be decreased by the amount of any return of capital.
Any return of capital distributions in excess of your cost basis will be treated as capital gains.
This
discussion of “Taxes” is for general information only and not
tax advice. All investors should consult their own tax advisers as to the federal, state, local and foreign tax provisions applicable
to them.
Taxes
(applicable to the Invesco SteelPath Funds
only)
Although
the Code generally provides that a RIC does not pay an entity-level income tax, provided that it distributes all or substantially all
of its income, the Fund is not and does not anticipate becoming eligible to elect to be treated as a RIC because most or substantially
all of the Fund’s investments will consist of investments in MLP securities. The RIC tax rules therefore have no application to
the Fund or to its shareholders. As a result, the Fund is treated as a regular corporation, or “C” corporation, for U.S. federal
income tax purposes, and generally is subject to U.S. federal income tax on its taxable income at the corporate income tax rate. In addition,
as a regular corporation, the Fund will be subject to state and local taxes by reason of its tax status and its investments in MLPs. Therefore,
the Fund may have to pay federal, multiple state, and local taxes, which would reduce the Fund’s cash available to make distributions
to shareholders. An estimate for federal, state, and local tax liabilities will reduce the fund’s net asset value. The extent to
which the Fund is required to pay U.S. federal, state or local corporate income, franchise or other corporate taxes could materially reduce
the Fund’s cash available to make distributions to shareholders. In addition, investors in taxable accounts should be aware of the
following basic tax points as supplemented below where relevant:
Fund
Tax Basics
◾
The
Fund intends to invest a significant portion of its assets in MLPs, which are generally treated as partnerships for U.S. federal income
tax purposes. To the extent that the Fund invests in equity securities of an MLP, the Fund will be a partner in such MLP. Accordingly,
the Fund will be
A-23 The
Invesco Funds
required
to take into account the Fund’s allocable share of the income, gains, losses, deductions, and credits recognized by each such MLP,
regardless of whether the MLP distributes cash to the Fund. MLP distributions to partners, such as the Fund, are not taxable unless the
cash amount (or in certain cases, the fair market value of marketable securities) distributed exceeds the Fund’s basis in its MLP
interest. The Fund expects that the cash distributions it will receive with respect to its investments in equity securities of MLPs will
exceed the net taxable income allocated to the Fund from such MLPs because of tax deductions such as depreciation, amortization and depletion
that will be allocated to the Fund from the MLPs. No assurance, however, can be given in this regard. If this expectation is not realized,
the Fund will have a larger corporate income tax expense than expected, which will result in less cash available for distribution to shareholders.
◾
The
Fund will recognize gain or loss on the sale, exchange or other taxable disposition of its portfolio assets, including equity securities
of MLPs, equal to the difference between the amount realized by the Fund on the sale, exchange or other taxable disposition and the Fund’s
adjusted tax basis in such assets. Any such gain will be subject to U.S. federal income tax at the corporate income tax rate, regardless
of how long the Fund has held such assets since preferential capital gain rates do not apply to regular corporations such as the Fund.
The amount realized by the Fund in any case generally will be the amount paid by the purchaser of the assets plus, in the case of MLP
equity securities, the Fund’s allocable share, if any, of the MLP’s debt that will be allocated to the purchaser as a result
of the sale, exchange or other taxable disposition. The Fund’s tax basis in its equity securities in an MLP generally is equal to
the amount the Fund paid for the equity securities, (i) increased by the Fund’s allocable share of the MLP’s net taxable income
and certain MLP debt, if any, and (ii) decreased by the Fund’s allocable share of the MLP’s net losses and any distributions
received by the Fund from the MLP. Although any distribution by an MLP to the Fund in excess of the Fund’s allocable share of such
MLP’s net taxable income may create a temporary economic benefit to the Fund, net of a deferred tax liability, such distribution
will decrease the Fund’s tax basis in its MLP investment and will therefore increase the amount of gain (or decrease the amount
of loss) that will be recognized on the sale of an equity security in the MLP by the Fund. To the extent that the Fund has a net capital
loss in any year, the net capital loss can be carried back three taxable years and forward five taxable years to reduce the Fund’s
capital gains in such years. In the event a capital loss carryover cannot be utilized in the carryover periods, the Fund’s federal
income tax liability may be higher than expected, which will result in less cash available to distribute to shareholders.
◾
Distributions
by the Fund of cash or property in respect of the shares (other than certain distributions in redemption of shares) will be treated as
dividends for U.S. federal income tax purposes to the extent paid from the Fund’s current or accumulated earnings and profits (as
determined under U.S. federal income tax principles). Generally, the Fund’s earnings and profits are computed based upon the Fund’s
taxable income (loss), with certain specified adjustments. Any such dividend likely will be eligible for the dividends-received deduction
if received by an otherwise qualifying corporate U.S. shareholder that meets certain holding period and other requirements for the dividends-received
deduction. Dividends paid by the Fund to certain non-corporate U.S. shareholders (including individuals), generally are eligible for U.S.
federal income taxation at the rates generally applicable to long-term capital gains for individuals provided that the U.S. shareholder
receiving the dividend satisfies applicable holding period and other requirements. Otherwise, dividends paid by the Fund to non-corporate
U.S. Shareholders (including individuals) will be taxable at ordinary income rates.
◾
If
the amount of a Fund distribution exceeds the Fund’s current and accumulated earnings and profits, such excess will be treated first
as a tax-deferred return of capital to the extent of, and in reduction of, a shareholder’s tax basis in the shares, and thereafter
as capital gain to the extent the shareholder held the shares as a capital asset. Any such capital gain will be long-term capital gain
if such shareholder has held the applicable shares for more than one year. The portion of the distribution
received
by a shareholder from the Fund that is treated as a return of capital will decrease the shareholder’s tax basis in his or her Fund
shares (but not below zero), which will result in an increase in the amount of gain (or decrease in the amount of loss) that will be recognized
by the shareholder for tax purposes on the later sale of such Fund shares.
◾
The
Fund anticipates that the cash distributions it will receive with respect to its investments in equity securities of MLPs and which it
will distribute to its shareholders will exceed the Fund’s current and accumulated earnings and profits. Accordingly, the Fund expects
that only a part of its distributions to shareholders with respect to the shares will be treated as dividends for U.S. federal income
tax purposes. No assurance, however, can be given in this regard.
◾
Special
rules may apply to the calculation of the Fund’s earnings and profits. For example, the Fund’s earnings and profits will be
calculated using the straight-line depreciation method rather than the accelerated depreciation method. This difference in treatment may,
for example, result in the Fund’s earnings and profits being higher than the Fund’s taxable income or loss in a particular
year if the MLPs in which the Fund invests calculate their income using accelerated depreciation. Because of these special earnings profits
rules, the Fund may make distributions in a particular year out of earnings and profits (treated as dividends) in excess of the amount
of the Fund’s taxable income or loss for such year, which means that a larger percentage of the Fund ’s distributions could
be taxable to shareholders as ordinary income instead of tax-deferred return of capital or capital gain.
◾
Shareholders
that receive distributions in shares rather than in cash will be treated for U.S. federal income tax purposes as having (i) received a
cash distribution equal to the fair market value of the shares received and (ii) reinvested such amount in shares.
◾
A
redemption of shares will be treated as a sale or exchange of such shares, provided the redemption is not essentially equivalent to a
dividend, is a substantially disproportionate redemption, is a complete redemption of a shareholder’s entire interest in the Fund,
or is in partial liquidation of such Fund. Redemptions that do not qualify for sale or exchange treatment will be treated as distributions
as described above. Upon a redemption treated as a sale or exchange under these rules, a shareholder generally will recognize capital
gain or loss equal to the difference between the adjusted tax basis of his or her shares and the amount received when they are sold.
◾
If
the Fund is required to sell portfolio securities to meet redemption requests, the Fund may recognize income and gains for U.S. federal,
state and local income and other tax purposes, which may result in the imposition of corporate income or other taxes on the Fund and may
increase the Fund’s current and accumulated earnings and profits, which will result in a greater portion of distributions to Fund
shareholders being treated as dividends. Any long-term or short-term capital gains realized on sale or redemption of your Fund shares
will be subject to federal income tax. For tax purposes an exchange of your shares for shares of another Fund is the same as a sale. An
exchange occurs when the purchase of shares of a Fund is made using the proceeds from a redemption of shares of another Fund and is effectuated
on the same day as the redemption. Your gain or loss is calculated by subtracting from the gross proceeds your cost basis. Gross proceeds
and, for shares acquired on or after January 1, 2012 and disposed of after that date, cost basis will be reported to you and the IRS.
Cost basis will be calculated using the Fund’s default method of first-in, first-out (FIFO), unless you instruct the Fund to use
a different calculation method. Shareholders should carefully review the cost basis information provided by a Fund and make any additional
basis, holding period or other adjustments that are required when reporting these amounts on their federal income tax returns. If you
hold your Fund shares through a broker (or other nominee), please contact that broker (nominee) with respect to reporting of cost basis
and available elections for your account. For more information about the cost basis methods offered by Invesco, please refer to the Tax
Center located under the Account Access & Forms menu of our website at www.invesco.com/us.
A-24 The
Invesco Funds
◾
The
conversion of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes
and no gain or loss will be reported on the transaction. This is true whether the conversion occurs automatically pursuant to the terms
of the class or is initiated by the shareholder.
◾
At
the time you purchase your Fund shares, the Fund’s net asset value may reflect undistributed income. A subsequent distribution to
you of such amounts, although constituting a return of your investment, would be taxable. Buying shares in a Fund just before it declares
an income dividend is sometimes known as “buying a dividend.” In addition, a Fund’s net asset value may, at any time,
reflect net unrealized appreciation, which may result in future taxable distributions to you.
◾
By
law, if you do not provide a Fund with your proper taxpayer identification number and certain required certifications, you may be subject
to backup withholding on any distributions of income, capital gains, or proceeds from the sale of your shares. A Fund also must withhold
if the IRS instructs it to do so. When withholding is required, the amount will be 24% of any distributions or proceeds paid.
◾
A
3.8% Medicare tax is imposed on certain net investment income (including ordinary dividends received from a Fund and net gains from redemptions
or other taxable dispositions of Fund shares) of U.S. individuals, estates and trusts to the extent that such person’s “modified
adjusted gross income” (in the case of an individual) or “adjusted gross income” (in the case of an estate or trust)
exceeds a threshold amount. This Medicare tax, if applicable, is reported by you on, and paid with, your federal income tax return.
◾
Fund
distributions and gains from sale or exchange of your Fund shares generally are subject to state and local income taxes.
◾
Foreign
investors should be aware that U.S. withholding, special certification requirements to avoid U.S. backup withholding and claim any treaty
benefits, and estate taxes may apply to an investment in a Fund.
◾
Under
the Foreign Account Tax Compliance Act (FATCA), a Fund will be required to withhold a 30% tax on income dividends made by the Fund to
certain foreign entities, referred to as foreign financial institutions or non-financial foreign entities, that fail to comply (or be
deemed compliant) with extensive reporting and withholding requirements designed to inform the U.S. Department of the Treasury of U.S.-owned
foreign investment accounts. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide otherwise (which
is not expected). A Fund may disclose the information that it receives from its shareholders to the IRS, non-U.S. taxing authorities or
other parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that is a shareholder
of a Fund fails to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.
◾
Taxes,
penalties, and interest associated with an audit of a partnership are generally required to be assessed and collected at the partnership
level. Therefore, an adverse federal income tax audit of an MLP taxed as a partnership that the Fund invests in could result in the Fund
being required to pay federal income tax. The Fund may have little input in any audit asserted against an MLP and may be contractually
or legally obligated to make payments in regard to deficiencies asserted without the ability to put forward an independent defense. Accordingly,
even if an MLP in which the Fund invests were to remain classified as a partnership, it could be required to pay additional taxes, interest
and penalties as a result of an audit adjustment, and the Fund, as a direct or indirect partner of such MLP, could be required to bear
the economic burden of those taxes, interest and penalties, which would reduce the value of Fund shares.
◾
Under
the Tax Cuts and Jobs Act certain “qualified publicly traded partnership income” (e.g., certain income from certain of the
MLPs in which the Fund invests) is treated as eligible for a 20% deduction by noncorporate taxpayers. The Tax Cuts and Jobs Act does not
contain a provision permitting an entity, such as the Fund, to benefit from this
deduction
(since the Fund is taxed as a “C” corporation) or pass the special character of this income through to its shareholders. Qualified
publicly traded partnership income allocated to a noncorporate investor investing directly in an MLP might, however, be eligible for the
deduction.
The
above discussion concerning the taxability of Fund dividends and distributions
and of redemptions and exchanges of Fund shares is inapplicable to investors holding shares through a tax-advantaged arrangement, such
as Retirement and Benefit Plans or 529 college savings plans. Such investors should refer to the applicable account documents/program
description for that arrangement for more information regarding the tax consequences of holding and redeeming Fund shares.
This
discussion of “Taxes” is for general information only and not
tax advice. All investors should consult their own tax advisers as to the federal, state, local and foreign tax provisions applicable
to them.
Federal
Income Taxes (applicable to Invesco Master Loan Fund only)
United
States Taxes
The
Fund is classified as a partnership and will not be a regulated investment company for US federal income tax purposes. As a partnership,
the Fund is not a taxable entity for federal income tax purposes and, subject to the application of the partnership audit rules described
below, incurs no federal income tax liability. Each Investor is required to take into account its proportionate share of items of income,
gain, loss and deduction of the partnership in computing its federal income tax liability regardless of whether or not cash or property
distributions are then made by the Fund. Following the close of the Fund’s taxable year end, Investors will receive a tax statement
entitled Schedule K-1 Partner’s Share of Income, Deductions, Credits, etc., which reports the tax status of their distributive share
of the Fund’s items for the previous year.
Taxation
of Distributions, Sales and Exchanges
In
general, distributions of money by the Fund to an Investor will represent a non-taxable return of capital up to the amount of an Investor’s
adjusted tax basis in its shares. An Investor will recognize gain to the extent that any money distributed by the Fund exceeds the Investor’s
adjusted tax basis in its shares. In the case of a non-taxable return of capital by the Fund to an Investor, other than in liquidation
of the Investor’s interest in the Fund, the tax basis of his shares will be reduced (but not below zero) and will result in an increase
in the amount of gain (or decrease in the amount of loss) that will be recognized by the Investor on the later sale of its shares. A distribution
in partial or complete redemption of your shares in the Fund is taxable as a sale or exchange only to the extent the amount of money received
exceeds the tax basis of your entire interest in the Fund. Any loss may be recognized only if you redeem your entire interest in the Fund
for money.
When
you sell shares of the Fund, you may have a capital gain or loss.
Derivatives
The
use of derivatives by the Fund may cause the Fund to realize higher amounts of ordinary income or short-term capital gain, allocations
of which are taxable to individual Investors at ordinary income tax rates rather than at the more favorable tax rates for long-term capital
gain. Changes in government regulation of derivative instruments could affect the character, timing and amount of the Fund’s taxable
income or gains, and may limit the Fund from using certain types of derivative instruments as part of its investment strategy.
Risk
of Audit of the Fund
Under
the partnership audit rules, which are generally applicable to tax years beginning after December 31, 2017, the Internal Revenue Service
(“IRS”) may collect any taxes resulting from audit adjustments to the Fund’s income tax returns (including any applicable
penalties and interest) directly from the Fund. In that case, current Investors would bear some or all of the
A-25 The
Invesco Funds
tax liability
resulting from such audit adjustment, even if they did not own interests in the Fund during the tax year under audit. The Fund may have
the ability to shift any such tax liability to the Investors in accordance with their interests in the Fund during the year under audit,
but there can be no assurance that the Fund will be able to do so under all circumstances. For taxable years not subject to the new audit
rules, items of Fund income, gain, loss, deduction and credit will be determined at the Fund level in a unified audit. NO REPRESENTATION
OR WARRANTY OF ANY KIND IS MADE WITH RESPECT TO THE TAXATION, DEDUCTIBILITY OR CAPITALIZATION OF ANY ITEM BY THE FUND OR INVESTOR. In
addition, the “partnership representative” (tax matters partner, for taxable years before the partnership audit rules become
effective) will have the sole authority to act on the Fund’s behalf for purposes of, among other things, federal income tax audits
and judicial review of administrative adjustments by the IRS, and any such actions will be binding on the Fund and all of the Investors.
Unrelated
Business Taxable Income
An
allocable share of a tax-exempt Investor’s income will be “unrelated business taxable income” (“UBTI”) to
the extent that the Fund borrows money to acquire property or invests in assets that produce UBTI.
Medicare
Tax
An
additional 3.8% Medicare tax is imposed on certain net investment income of US individuals, estates and trusts to the extent that such
person’s “modified adjusted gross income” (in the case of an individual) or “adjusted gross income” (in
the case of an estate or trust) exceeds a threshold amount. “Net investment income,” for these purposes, means investment
income (including (i) net gains from the taxable disposition of shares of a Fund to the extent the net gain would be taken into account
by the Investor if the Fund sold all of its property for fair market value immediately before the disposition of the shares of the Fund,
and (ii) an allocable share of a Fund’s interest, dividends and net gains) reduced by the deductions properly allocable to such
income. This Medicare tax, if applicable, is reported by Investors on, and paid with, the Investor’s federal income tax return.
State,
Local and Non-US Tax Matters
An
Investor’s distributive share of the Fund’s income, and gains from the sale or exchange of an Investor’s Fund shares,
generally are subject to state and local taxes in the jurisdiction in which the Investor resides or is otherwise subject to tax.
Prospective
investors should consider their individual state and local tax consequences
of an investment in the Fund.
Tax
Considerations for Non-US Investors
If,
as anticipated, the Fund is not deemed to be engaged in a US trade or business, the Fund generally will be required to withhold tax on
the distributive share of certain items of gross income from US sources allocated to non-US Investors at a 30% (or lower treaty) rate.
Certain categories of income, including portfolio interest, are not subject to US withholding tax. Capital gains (other than gain realized
on disposition of US real property interests) are not subject to US withholding tax unless the non-US Investor is a nonresident alien
individual present in the United States for a period or periods aggregating 183 days or more during the taxable year. If, on the other
hand, the Fund derives income which is effectively connected with a US trade or business carried on by the Fund, this 30% tax will not
apply to such effectively connected income of the Fund, and the Fund generally will be required to withhold tax from the amount of effectively
connected income allocable to non-US Investors at the highest rate of tax applicable to US residents, and non-US Investors generally would
be required to file US income tax returns and be subject to US income tax on a net basis. Gain or loss on a sale of shares will be treated
as effectively connected with a U.S. trade or business to the extent that a foreign corporation or foreign individual that owns the shares
(whether directly or indirectly through other partnerships) would have had effectively connected gain or loss had the partnership sold
its underlying assets and applicable US
withholding
tax will apply. Non-US Investors may be subject to US estate tax and are subject to special US tax certification requirements.
Other
Reporting and Withholding Requirements
Under
the Foreign Account Tax Compliance Act (“FATCA”), the Fund will be required to withhold at a 30% rate on certain US source
payments (such as interest and dividends) to certain Investors if the Investor fails to provide the Fund with the information which identifies
its direct and indirect US ownership. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide otherwise (which
is not expected). A Fund may disclose the information that it receives from an Investor to the IRS, non-US taxing authorities or other
parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that is an Investor fails
to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.
For
a more complete discussion of the federal income tax consequences
of investing in the Fund, see the Statement of Additional Information.
This
discussion of “Federal Income Taxes” is not intended or written
to be used as tax advice. Because everyone’s tax situation is unique, Investors should consult their tax professional about federal,
state, local and foreign tax consequences before making an investment in the Fund.
Payments
to Financial Intermediaries – All Share Classes except Class R6 shares
The
financial adviser or intermediary through which you purchase your shares may receive all or a portion of the sales charges and distribution
fees discussed above. In addition to those payments, Invesco Distributors and other Invesco Affiliates, may make additional cash payments
to financial intermediaries in connection with the promotion and sale of shares of the Funds. These additional cash payments may include
cash payments and other payments for certain marketing and support services. Invesco Affiliates make these payments from their own resources,
from Invesco Distributors’ retention of initial sales charges and from payments to Invesco Distributors made by the Funds under
their 12b-1 plans. In the context of this prospectus, “financial intermediaries” include any broker, dealer, bank (including
bank trust departments), registered investment adviser, financial planner, retirement plan administrator, insurance company and any other
financial intermediary having a selling, administration or similar agreement with Invesco Affiliates.
The
benefits Invesco Affiliates receive when they make these payments include,
among other things, placing the Funds on the financial intermediary’s fund sales system, and access (in some cases on a preferential
basis over other competitors) to individual members of the financial intermediary’s sales force or to the financial intermediary’s
management. These payments are sometimes referred to as “shelf space” payments because the payments compensate the financial
intermediary for including the Funds in its fund sales system (on its “sales shelf”). Invesco Affiliates compensate financial
intermediaries differently depending typically on the level and/or type of considerations provided by the financial intermediary. The
payments Invesco Affiliates make may be calculated based on sales of shares of the Funds (Sales-Based Payments), in which case the total
amount of such payments shall not exceed 0.25% (0.10% for Class R5 shares) of the public offering price of all shares sold by the financial
intermediary during the particular period. Payments may also be calculated based on the average daily net assets of the applicable Funds
attributable to that particular financial intermediary (Asset-Based Payments), in which case the total amount of such cash payments shall
not exceed 0.25% per annum of those assets during a defined period. Sales-Based Payments primarily create incentives to make new sales
of shares of the Funds and Asset-Based Payments primarily create incentives to retain previously sold shares of the Funds in investor
accounts. Invesco Affiliates
A-26 The
Invesco Funds
may pay a financial
intermediary either or both Sales-Based Payments and Asset-Based Payments.
Invesco
Affiliates are motivated to make these payments as they promote
the sale of Fund shares and the retention of those investments by clients of the financial intermediaries. To the extent financial intermediaries
sell more shares of the Funds or retain shares of the Funds in their clients’ accounts, Invesco Affiliates benefit from the incremental
management and other fees paid to Invesco Affiliates by the Funds with respect to those assets.
The
Funds’ transfer agent may make payments to certain financial intermediaries
for certain administrative services, including record keeping and sub-accounting of shareholder accounts pursuant to a sub-transfer agency,
omnibus account service or sub-accounting agreement. All fees payable by Invesco Affiliates under this category of services are charged
back to the Funds, subject to certain limitations approved by the Board.
You
can find further details in the Fund’s SAI about these payments and the
services provided by financial intermediaries. In certain cases these payments could be significant to the financial intermediaries. Your
financial adviser may charge you additional fees or commissions other than those disclosed in this prospectus. You can ask your financial
adviser about any payments it receives from Invesco Affiliates or the Funds, as well as about fees and/or commissions it charges.
Important
Notice Regarding Delivery of Security Holder Documents
To
reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address
(Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not
want the mailing of these documents to be combined with those for other members of your household, please contact the Funds’ transfer
agent at 800-959-4246 or contact your financial institution. The Funds’ transfer agent will begin sending you individual copies
for each account within thirty days after receiving your request.
A-27 The
Invesco Funds
Obtaining Additional Information
More information
may be obtained free of charge upon request. The SAI, a current version of which is on file with the SEC, contains more details about
the Fund and is incorporated by reference into this prospectus (is legally a part of this prospectus). Annual and semi-annual reports
to shareholders contain additional information about the Fund’s investments. The Fund’s annual report also discusses the market
conditions and investment strategies that significantly affected the Fund’s performance during its last fiscal year. The Fund also
files its complete schedule of portfolio holdings with the SEC for the 1st and 3rd quarters of each fiscal year as an exhibit to its reports
on Form N-PORT.
If
you have questions about an Invesco Fund or your account, or you wish to obtain a free copy of the Fund’s current SAI, annual or
semi-annual reports or Form N-PORT, please contact us.
|
By
Mail: |
Invesco
Investment Services, Inc.
P.O.
Box 219078
Kansas
City, MO 64121-9078 |
|
By
Telephone: |
(800)
959-4246 |
|
On
the Internet: |
You
can send us a request by e-mail or
download
prospectuses, SAIs, annual or
semi-annual
reports via our website:
www.invesco.com/us
|
Reports
and other information about the Fund are available on the EDGAR Database on the SEC's Internet site at http://www.sec.gov, and copies
of this information may be obtained, after paying a duplicating fee, by electronic request at the following e-mail address: publicinfo@sec.gov.
|
Invesco
American Franchise Fund
SEC 1940 Act file
number: 811-09913 |
|
invesco.com/us
|
VK-AMFR-PRO-1
|
Prospectus
December
16,
2022
Class:
A (OPTFX ), C (OTFCX ),
R (OTCNX ), Y (OTCYX ),
R5 (CPTUX ), R6 (OPTIX )
Invesco Capital
Appreciation 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.
Table of Contents
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A-1
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A-1
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A-2
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A-3
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A-3
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A-10
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A-11
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A-13
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A-15
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A-17
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A-17
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A-18
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A-21
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A-23
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A-25
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A-26
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A-27
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Back
Cover |
Invesco
Capital Appreciation Fund
The
Fund’s investment objective is to seek 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 mainly invests in common stocks of “growth companies.” Growth companies are companies that the portfolio managers expect
to have above-average growth rates. Currently, the Fund intends, under normal circumstances, to focus primarily on companies that are
similar in size to companies in the Russell 1000 Growth Index. The Fund invests primarily in U.S. companies but may also purchase securities
of issuers in any country, including developed countries and emerging markets. The Fund has no limits on the amount of its assets that
can be invested in foreign securities. The portfolio managers look for growth companies with stock prices that they believe are reasonable
in relation to overall stock market valuations. In seeking to invest across a variety of industries and market sectors, the portfolio
managers focus on a number of factors that may vary in particular cases and over time. Currently, the portfolio managers look for:
◾
companies
in business areas that have above-average growth potential
◾
companies
with growth rates that the portfolio managers believe are sustainable over time
◾
stocks
with reasonable valuations relative to their growth potential.
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 may sell the stocks of companies that the portfolio managers believe
no longer meet the above criteria, but is not required to do so.
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, natural or environmental disasters, widespread disease or other public health issues, war, military conflict, acts of terrorism
or adverse investor sentiment generally. During a general downturn in the financial markets, multiple asset classes may decline in
1 Invesco
Capital Appreciation Fund
value.
When markets perform well, there can be no assurance that specific investments held by the Fund will rise in value.
Investing
in Stocks Risk. The value of the Fund’s portfolio may be
affected by changes in the stock markets. Stock markets may experience significant short-term volatility and may fall 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.
Growth
Investing Risk. If a growth company’s earnings or stock price
fails to increase as anticipated, or if its business plans do not produce the expected results, the value of its securities may decline
sharply. Growth companies may be newer or smaller companies that may experience greater stock price fluctuations and risks of loss than
larger, more established companies. Newer growth companies tend to retain a large part of their earnings for research, development or
investments in capital assets. Therefore, they may not pay any dividends for some time. Growth investing has gone in and out of favor
during past market cycles and is likely to continue to do so. During periods when growth investing is out of favor or when markets are
unstable, it may be more difficult to sell growth company securities at an acceptable price. Growth stocks may also be more volatile than
other securities because of investor speculation.
Small-
and Mid-Capitalization Companies Risk. Investing in securities
of small- and mid-capitalization companies involves greater risk than customarily is associated with investing in larger, more established
companies. Stocks of small- and mid-capitalization companies tend to be more vulnerable to changing market conditions, may have little
or no operating history or track record of success, and may have more limited product lines and markets, less experienced management and
fewer financial resources than larger companies. These companies’ securities may be more volatile and less liquid than those of
more established companies. They may be more sensitive to changes in a company’s earnings expectations and may experience more abrupt
and erratic price movements. Smaller companies’ securities often trade in lower volumes and in many instances, are traded over-the-counter
or on a regional securities exchange, where the frequency and volume of trading is substantially less than is typical for securities of
larger companies traded on national securities exchanges. Therefore, the securities of smaller companies may be subject to wider price
fluctuations and it might be harder for the Fund to dispose of its holdings at an acceptable price when it wants to sell them. Since small-
and mid-cap companies typically reinvest a high proportion of their earnings in their business, they may not pay dividends for some time,
particularly if they are newer companies. It may take a substantial period of time to realize a gain on an investment in a small- or mid-cap
company, if any gain is realized at all.
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. 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.
Foreign
Securities Risk. The Fund's foreign investments may be adversely
affected by political and social instability, changes in economic or taxation policies, difficulty in enforcing obligations, decreased
liquidity or increased volatility. 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. There may be less public information available about foreign companies than U.S. companies, making it difficult
to evaluate those foreign companies. 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.
Emerging
Market Securities Risk. Emerging markets (also referred to as developing
markets) are generally subject to greater market volatility, political, social and economic instability, uncertain trading markets and
more governmental limitations on foreign investment than more developed markets. In addition, companies operating in emerging markets
may be subject to lower trading volume and greater price fluctuations than companies in more developed markets. Such countries’
economies may be more dependent on relatively few industries or investors that may be highly vulnerable to local and global changes. 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. As a result, information, including financial information, about
such companies may be less available and reliable, which can impede the Fund’s ability to evaluate such companies. Securities law
and the enforcement of systems of taxation in many emerging market countries may change quickly and unpredictably, and the ability to
bring and enforce actions (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), or to obtain information needed to pursue or enforce such actions, may be limited. In addition, the ability of foreign
entities to participate in privatization programs of certain developing or emerging market countries may be limited by local law. Investments
in emerging market securities may be subject to additional transaction costs, delays in settlement procedures, unexpected market closures,
and lack of timely information.
Non-Diversification
Risk. The
Fund is non-diversified and 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. A change in the value of one or a few issuers’ securities will therefore affect the
value of the Fund more than if it was 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. Additionally, legislative,
regulatory, or tax developments may adversely affect management of the Fund and, therefore, the ability of the Fund to achieve its investment
objective.
2 Invesco
Capital Appreciation Fund
Oppenheimer
Capital Appreciation Fund (the predecessor fund) as the result of a reorganization of the predecessor fund into the Fund, which was consummated
after the close of business on May 24, 2019 (the “Reorganization”). Prior to the Reorganization, the Fund had not yet commenced
operations. The bar chart shows changes in the performance of the predecessor fund and the Fund from year to year as of December 31. The
performance table compares the predecessor fund’s and the Fund’s performance to that of a broad measure of market performance
and an additional index with characteristics relevant to the Fund.
The
Fund’s (and the predecessor fund’s) past performance (before and after taxes) is not necessarily an indication of how the
Fund will perform in the future.
The
returns shown for periods ending on or prior to May 24, 2019 are those
of the Class A, Class C, Class R, Class Y and Class I shares of the predecessor fund. Class A, Class C, Class R, Class Y and Class I shares
of the predecessor fund were reorganized into Class A, Class C, Class R, Class Y and Class R6 shares, respectively, of the Fund after
the close of business on May 24, 2019. Class A, Class C, Class R, Class Y and Class R6 shares’ returns of the Fund will be different
from the returns of the predecessor fund as they have different expenses. Performance for Class A shares has been restated to reflect
the Fund’s applicable sales charge.
Fund
performance reflects any applicable fee waivers and expense reimbursements.
Performance returns would be lower without applicable fee waivers and expense reimbursements.
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, 2021)
|
|
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
R51 |
|
|
|
|
|
| ||||
|
Class
R6 |
|
|
|
|
|
| ||||
|
Russell
1000®
Growth Index for
fees, expenses or taxes) |
|
|
|
|
|
| ||||
|
S&P
500®
Index (reflects no deduction for fees,
expenses
or taxes) |
|
|
|
|
|
| ||||
1
Management
of the Fund
Investment
Adviser: Invesco Advisers, Inc.
|
Portfolio
Managers |
Title
|
Length
of Service on the Fund |
|
Ronald
J. Zibelli, Jr., CFA |
Portfolio
Manager (lead) |
2020
|
|
| ||
|
Ash
Shah, CFA |
Portfolio
Manager |
2020
|
|
| ||
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
3 Invesco
Capital Appreciation Fund
companies
may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing
the broker-dealer or other intermediary and your salesperson or financial adviser to recommend the Fund over another investment. Ask your
salesperson or financial adviser or visit your financial intermediary’s website for more information.
Investment Objective(s), Strategies, Risks and Portfolio Holdings
Objective(s)
and Strategies
The
Fund’s investment objective is to seek capital appreciation. The Fund’s investment objective may be changed by the Board of
Trustees (the Board) without shareholder approval.
The
Fund mainly invests in common stocks of “growth companies.” Growth
companies are companies that the portfolio managers expect to have above-average growth rates. Currently, the Fund intends, under normal
circumstances, to focus primarily on companies that are similar in size to companies in the Russell 1000 Growth Index. The Fund invests
primarily in U.S. companies but may also purchase securities of issuers in any country, including developed countries and emerging markets.
The Fund has no limits on the amount of its assets that can be invested in foreign securities. Foreign securities are those of issuers
that are organized under the laws of a foreign country or that have a substantial portion of their operations or assets in a foreign country
or countries, or that derive a substantial portion of their revenue or profits from businesses, investments or sales outside of the United
States.
While
the Fund mainly invests in common stock, it may also invest in other
equity securities, such as preferred stock, rights, warrants and securities convertible into common stock. The portfolio managers look
for growth companies that the portfolio managers expect to have above-average growth rates. In seeking to invest across a variety of industries
and market sectors, the portfolio managers focus on a number of factors that may vary in particular cases and over time. Currently, the
portfolio managers look for:
◾
companies
in business areas that have above-average growth potential
◾
companies
with growth rates that the portfolio managers believe are sustainable over time
◾
stocks
with reasonable valuations relative to their growth potential.
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 may sell the stocks of companies that the portfolio managers believe
no longer meet the above criteria, but is not required to do so.
In
anticipation of or in response to market, economic, political, or other conditions,
the Fund’s portfolio managers may temporarily use a different investment strategy for defensive purposes. If the Fund’s portfolio
managers do so, different factors could affect the Fund’s performance and the Fund may not achieve its investment objective.
The
Fund’s investments in the types of securities and other investments described
in this prospectus vary from time to time, and, at any time, the Fund may not be invested in all of the types of securities and other
investments described in this prospectus. The Fund may also invest in securities and other investments not described in this prospectus.
For
more information, see “Description of the Funds and Their Investments
and Risks” in the Fund’s SAI.
Risks
The
principal risks of investing in the Fund are:
Market
Risk. The market values of the Fund’s investments, and therefore
the value of the Fund’s shares, will go up and down, sometimes rapidly or unpredictably. Market risk may affect a single issuer,
industry or
section
of the economy, or it may affect the market as a whole. The value of the Fund’s investments may go up or down due to general market
conditions that are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes
in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, or adverse
investor sentiment generally. The value of the Fund’s investments may also go up or down due to factors that affect an individual
issuer or a particular industry or sector, such as changes in production costs and competitive conditions within an industry. In addition,
natural or environmental disasters, widespread disease or other public health issues, war, military conflict, acts of terrorism 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.
◾
COVID-19.
The “COVID-19” strain of coronavirus has resulted in instances of market closures and dislocations, extreme volatility, liquidity
constraints and increased trading costs. Efforts to contain its spread have resulted in travel restrictions, disruptions of healthcare
systems, business operations (including business closures) and supply chains, layoffs, lower consumer demand and employee availability,
and defaults and credit downgrades, among other significant economic impacts that have disrupted global economic activity across many
industries. Such economic impacts may exacerbate other pre-existing political, social and economic risks locally or globally and cause
general concern and uncertainty. The full economic impact and ongoing effects of COVID-19 (or other future epidemics or pandemics) at
the macro-level and on individual businesses are unpredictable and may result in significant and prolonged effects on the Fund’s
performance.
Investing
in Stocks Risk. Common stock represents an ownership interest in
a company. It ranks below preferred stock and debt securities in claims for dividends and in claims for assets of the issuer in a liquidation
or bankruptcy. Common stocks may be exchange-traded or over-the-counter securities. Over-the-counter securities may be less liquid than
exchange-traded securities.
The
value of the Fund’s portfolio may be affected by changes in the stock
markets. Stocks and other equity securities fluctuate in price in response to changes to equity markets in general. Stock markets may
experience significant short-term volatility and may fall or rise sharply at times. Adverse events in any part of the equity or fixed-income
markets may
4 Invesco
Capital Appreciation Fund
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), their share values may fluctuate more in response to events affecting the market for
those types of securities.
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. Growth stocks
may also be more volatile than other securities because of investor speculation.
Small-
and Mid-Capitalization Companies Risk. Investing in securities
of small- and mid-capitalization companies involves greater risk than customarily is associated with investing in larger, more established
companies. Stocks of small- and mid-capitalization companies tend to be more vulnerable to changing market conditions, may have little
or no operating history or track record of success, and may have more limited product lines and markets, less experienced management and
fewer financial resources than larger companies. These companies’ securities may be more volatile and less liquid than those of
more established companies. They may be more sensitive to changes in a company’s earnings expectations and may experience more abrupt
and erratic price movements. Smaller companies’ securities often trade in lower volumes and in many instances, are traded over-the-counter
or on a regional securities exchange, where the frequency and volume of trading is substantially less than is typical for securities of
larger companies traded on national securities exchanges. Therefore, the securities of smaller companies may be subject to wider price
fluctuations and it might be harder for the Fund to dispose of its holdings at an acceptable price when it wants to sell them. In addition,
investors might seek to trade Fund shares based on their knowledge or understanding of the value of smaller company securities (this is
sometimes referred to as “price arbitrage”), which could interfere with the efficient management of the Fund. Since small
and mid-cap companies typically reinvest a high proportion of their earnings in their business, they may not pay dividends for some time,
particularly if they are newer companies. It
may
take a substantial period of time to realize a gain on an investment in a small- or mid-cap company, if any gain is realized at all. The
relative sizes of companies may change over time as the securities market changes, and the Fund is not required to sell the securities
of companies whose market capitalizations have grown or decreased due to market fluctuations.
Preferred
Securities Risk. Preferred securities are subject to issuer-specific
and market risks applicable generally to equity securities. Preferred stock has a set dividend rate and ranks ahead of common stocks and
behind debt securities in claims for dividends and for assets of the issuer in a liquidation or bankruptcy. Preferred securities also
may be subordinated to bonds or other debt instruments in an issuer’s capital structure, subjecting them to a greater risk of non-payment
than these more senior securities. For this reason, the value of preferred securities will usually react more strongly than bonds and
other debt securities to actual or perceived changes in the company’s financial condition or prospects. Preferred securities may
be less liquid than many other securities, such as common stocks, and generally offer no voting rights with respect to the issuer.
Rights
and Warrants Risk. Rights and warrants may be purchased directly
or acquired as part of other securities. Warrants are options to purchase equity securities at a specific price during a specific period
of time. The price of a warrant does not necessarily move parallel to, and is generally more volatile than, the price of the underlying
security. Warrants may be significantly less valuable or worthless on their expiration date and may also be postponed or terminated early,
resulting in a partial or total loss. Rights are similar to warrants, but normally have a short duration and are distributed directly
by the issuer to its shareholders. Rights and warrants have no voting rights, receive no dividends and have no rights with respect to
the assets of the issuer. Warrants and rights are highly volatile and, therefore, more susceptible to sharp declines in value than the
underlying security might be. The market for rights or warrants may be very limited and it may be difficult to sell them promptly at an
acceptable price.
Convertible
Securities Risk. The market value of a convertible security performs
like that of a regular debt security; that is, if market interest rates rise, the value of a convertible security usually falls. In addition,
convertible securities are subject to the risk that the issuer will not be able to pay interest or dividends when due, and their market
value may change based on changes in the issuer’s credit rating or the market’s perception of the issuer’s creditworthiness.
Convertible securities can be converted into or exchanged for a set amount of common stock of an issuer within a particular period of
time at a specified price or according to a price formula. Convertible debt securities pay interest and convertible preferred stocks pay
dividends until they mature or are converted, exchanged or redeemed. Some convertible debt securities may be considered “equity
equivalents” because of the feature that makes them convertible into common stock. Since a convertible security derives a portion
of its value from the common stock into which it may be converted, a convertible security is also subject to the same types of market
and issuer risks that apply to the underlying common stock. In addition, certain convertible securities are subject to involuntary conversions
and may undergo principal write-downs upon the occurrence of certain triggering events. These convertible securities are subject to an
increased risk of loss and are generally subordinate in rank to other debt obligations of the issuer. Convertible securities may be rated
below investment grade, which are considered to have more speculative characteristics and greater susceptibility to default or decline
in market value than investment grade securities.
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
5 Invesco
Capital Appreciation 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 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 have material limitations on Public
Company Accounting Oversight Board (“PCAOB”) inspection, investigation and enforcement capabilities, which hinder the ability
to engage in independent oversight or inspection of accounting firms located in or operating in certain emerging markets; therefore, 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.
6 Invesco
Capital Appreciation Fund
Fund Management
The
Adviser(s)
Invesco
Advisers, Inc. serves as the Fund’s investment adviser. The Adviser manages the investment operations of the Fund as well as other
investment portfolios that encompass a broad range of investment objectives, and has agreed to perform or arrange for the performance
of the Fund’s day-to-day management. The Adviser is located at 1555 Peachtree Street, N.E., Atlanta, Georgia 30309. The Adviser,
as successor in interest to multiple investment advisers, has been an investment adviser since 1976.
Sub-Advisers.
Invesco has entered into one or more Sub-Advisory Agreements with certain affiliates to serve as sub-advisers to the Fund (the Sub-Advisers).
Invesco may appoint the Sub-Advisers from time to time to provide discretionary investment management services, investment advice, and/or
order execution services to the Fund. The Sub-Advisers and the Sub-Advisory Agreements are described in the SAI.
Potential
New Sub-Advisers (Exemptive Order Structure). The SEC has also
granted exemptive relief that permits the Adviser, subject to certain conditions, to enter into new sub-advisory agreements with affiliated
or unaffiliated sub-advisers on behalf of the Fund without shareholder approval. The exemptive relief also permits material amendments
to existing sub-advisory agreements with affiliated or unaffiliated sub-advisers (including the Sub-Advisory Agreements with the Sub-Advisers)
without shareholder approval. Under this structure, the Adviser has ultimate responsibility, subject to oversight of the Board, for overseeing
such sub-advisers and recommending to the Board their hiring, termination, or replacement. The structure does not permit investment advisory
fees paid by the Fund to be increased without shareholder approval, or change the Adviser's obligations under the investment advisory
agreement, including the Adviser's responsibility to monitor and oversee sub-advisory services furnished to the Fund.
Adviser
Compensation
During
the fiscal year ended August 31, 2022, the Adviser received compensation of 0.58% of the Fund's average daily net assets, after fee waiver
and/or expense reimbursement, if any. The advisory fee payable by the Fund shall be reduced by any amounts paid by the Fund under the
administrative services agreement with the Adviser.
A
discussion regarding the basis for the Board’s approval of the investment
advisory agreement and investment sub-advisory agreements of the Fund is available in the Fund’s most recent annual or semi-annual
report to shareholders.
Portfolio
Managers
The
following individuals are jointly and primarily responsible for the day-to-day management of the Fund’s portfolio:
◾
Ronald
J. Zibelli, Jr., CFA (lead manager), Portfolio Manager, who has been responsible for the Fund since 2020 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.
◾
Ash
Shah, CFA, Portfolio Manager, who has been responsible for the Fund since 2020 and has been associated with Invesco and/or its affiliates
since 2019. From 2006 to 2019, Mr. Shah was associated with OppenheimerFunds, a global asset management firm.
A
lead or co-lead manager generally has final authority over all
aspects of the Fund's investment portfolio, including but not limited to, purchases and sales of individual securities, portfolio construction
techniques, portfolio risk assessment, and the management of daily cash flows in accordance with portfolio holdings. The degree to which
a lead or co-lead manager may perform these functions, and the nature of these functions, may change from time to time.
More
information on the portfolio managers may be found at www.invesco.com/us.
The website is not part of this prospectus.
The
Fund's SAI provides additional information about the portfolio managers'
investments in the Fund, a description of the compensation structure and information regarding other accounts managed.
Other Information
Sales
Charges
Purchases
of Class A shares of the Fund are subject to the maximum 5.50% initial sales charge as listed under the heading “Category I Initial
Sales Charges” in the “Shareholder Account Information—Initial Sales Charges (Class A Shares Only)” section of
the prospectus. Purchases of Class C shares are subject to a contingent deferred sales charge (CDSC) if you sell Class C shares within
one year of purchase; however, the CDSC shall not apply to the purchases of Class C shares where the selling broker-dealer was not paid
a commission at the time of purchase. For more information on CDSCs, see the “Shareholder Account Information—Contingent Deferred
Sales Charges (CDSCs)” section of this prospectus.
Dividends
and Distributions
The
Fund expects, based on its investment objective and strategies, that its distributions, if any, will consist of ordinary income, capital
gains, or some combination of both.
Dividends
The
Fund generally declares and pays dividends from net investment income, if any, 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
Capital Appreciation Fund
Financial Highlights
The
financial highlights information presented for the Fund includes the financial history of the predecessor fund, which was reorganized
into the Fund after the close of business on May 24, 2019. The financial highlights show the Fund’s and predecessor fund’s
financial history for the past five fiscal years or, if shorter, the applicable period of operations since the inception of the Fund or
predecessor fund or class of Fund or predecessor fund shares. The financial highlights table is intended to help you understand the Fund’s
and the predecessor fund’s financial performance. Certain information reflects financial results for a single Fund share.
The
total returns in the table represent the rate that an investor would have
earned (or lost) on an investment in the Fund or predecessor fund (assuming reinvestment of all dividends and distributions). The information
for the fiscal years ended after May 24, 2019 has been audited by PricewaterhouseCoopers LLP, an independent registered public accounting
firm, whose report, along with the Fund’s financial statements, is included in the Fund’s annual report, which is available
upon request. The information for fiscal years ended prior to May 24, 2019 has been audited by the predecessor fund’s auditor.
|
|
Net
asset
value,
beginning
of
period |
Net
investment
income
(loss)(a)
|
Net
gains
(losses)
on
securities
(both
realized
and
unrealized)
|
Total
from
investment
operations
|
Dividends
from
net
investment
income
|
Distributions
from
net
realized
gains
|
Total
distributions
|
Net
asset
value,
end
of
period |
Total
return
(b)
|
Net
assets,
end
of period
(000's
omitted) |
Ratio
of
expenses
to
average
net
assets
with
fee waivers
and/or
expenses
absorbed
|
Ratio
of
expenses
to
average net
assets
without
fee
waivers
and/or
expenses
absorbed(c)
|
Ratio
of net
investment
income
(loss)
to
average
net
assets |
Portfolio
turnover
(d)
|
|
Class
A | ||||||||||||||
|
Year
ended 08/31/22 |
$88.67
|
$(0.22)
|
$(16.26)
|
$(16.48)
|
$—
|
$(19.75)
|
$(19.75)
|
$52.44
|
(23.55)%(e)
|
$3,767,413
|
0.94%(e)
|
0.94%(e)
|
(0.35)%(e)
|
70%
|
|
Year
ended 08/31/21 |
70.34
|
(0.35)
|
21.03
|
20.68
|
—
|
(2.35)
|
(2.35)
|
88.67
|
30.19(e)
|
5,364,306
|
0.95(e)
|
0.95(e)
|
(0.46)(e)
|
78
|
|
Year
ended 08/31/20 |
62.38
|
(0.12)
|
21.17
|
21.05
|
—
|
(13.09)
|
(13.09)
|
70.34
|
39.41(e)
|
4,478,067
|
1.00(e)
|
1.00(e)
|
(0.22)(e)
|
31
|
|
Year
ended 08/31/19 |
65.82
|
(0.03)
|
1.23
|
1.20
|
—
|
(4.64)
|
(4.64)
|
62.38
|
2.97
|
3,566,269
|
1.03(f)
|
1.03
|
(0.06)
|
64
|
|
Year
ended 08/31/18 |
59.87
|
0.00
|
11.40
|
11.40
|
(0.01)
|
(5.44)
|
(5.45)
|
65.82
|
20.23
|
3,606,256
|
1.03(f)
|
1.03
|
(0.01)
|
29
|
|
| ||||||||||||||
|
Class
C | ||||||||||||||
|
Year
ended 08/31/22 |
56.55
|
(0.40)
|
(8.77)
|
(9.17)
|
—
|
(19.75)
|
(19.75)
|
27.63
|
(24.16)
|
146,841
|
1.71
|
1.71
|
(1.12)
|
70
|
|
Year
ended 08/31/21 |
46.01
|
(0.60)
|
13.49
|
12.89
|
—
|
(2.35)
|
(2.35)
|
56.55
|
29.17
|
221,514
|
1.73
|
1.73
|
(1.24)
|
78
|
|
Year
ended 08/31/20 |
45.21
|
(0.39)
|
14.28
|
13.89
|
—
|
(13.09)
|
(13.09)
|
46.01
|
38.34
|
230,567
|
1.78
|
1.78
|
(1.00)
|
31
|
|
Year
ended 08/31/19 |
49.50
|
(0.36)
|
0.71
|
0.35
|
—
|
(4.64)
|
(4.64)
|
45.21
|
2.18
|
201,751
|
1.80(f)
|
1.80
|
(0.83)
|
64
|
|
Year
ended 08/31/18 |
46.61
|
(0.36)
|
8.69
|
8.33
|
—
|
(5.44)
|
(5.44)
|
49.50
|
19.33
|
404,733
|
1.79(f)
|
1.79
|
(0.77)
|
29
|
|
| ||||||||||||||
|
Class
R | ||||||||||||||
|
Year
ended 08/31/22 |
80.77
|
(0.36)
|
(14.40)
|
(14.76)
|
—
|
(19.75)
|
(19.75)
|
46.26
|
(23.76)
|
127,130
|
1.21
|
1.21
|
(0.62)
|
70
|
|
Year
ended 08/31/21 |
64.44
|
(0.51)
|
19.19
|
18.68
|
—
|
(2.35)
|
(2.35)
|
80.77
|
29.83
|
175,274
|
1.23
|
1.23
|
(0.74)
|
78
|
|
Year
ended 08/31/20 |
58.28
|
(0.26)
|
19.51
|
19.25
|
—
|
(13.09)
|
(13.09)
|
64.44
|
39.04
|
147,187
|
1.28
|
1.28
|
(0.50)
|
31
|
|
Year
ended 08/31/19 |
62.00
|
(0.18)
|
1.10
|
0.92
|
—
|
(4.64)
|
(4.64)
|
58.28
|
2.68
|
117,019
|
1.30(f)
|
1.30
|
(0.32)
|
64
|
|
Year
ended 08/31/18 |
56.82
|
(0.15)
|
10.77
|
10.62
|
—
|
(5.44)
|
(5.44)
|
62.00
|
19.92
|
112,845
|
1.29(f)
|
1.29
|
(0.27)
|
29
|
|
| ||||||||||||||
|
Class
Y | ||||||||||||||
|
Year
ended 08/31/22 |
99.48
|
(0.09)
|
(18.79)
|
(18.88)
|
—
|
(19.75)
|
(19.75)
|
60.85
|
(23.38)
|
108,866
|
0.71
|
0.71
|
(0.12)
|
70
|
|
Year
ended 08/31/21 |
78.49
|
(0.21)
|
23.55
|
23.34
|
—
|
(2.35)
|
(2.35)
|
99.48
|
30.44
|
158,879
|
0.73
|
0.73
|
(0.24)
|
78
|
|
Year
ended 08/31/20 |
68.08
|
0.01
|
23.49
|
23.50
|
—
|
(13.09)
|
(13.09)
|
78.49
|
39.75
|
114,061
|
0.78
|
0.78
|
0.00
|
31
|
|
Year
ended 08/31/19 |
71.23
|
0.11
|
1.40
|
1.51
|
(0.02)
|
(4.64)
|
(4.66)
|
68.08
|
3.20
|
95,438
|
0.80(f)
|
0.80
|
0.17
|
64
|
|
Year
ended 08/31/18 |
64.36
|
0.15
|
12.30
|
12.45
|
(0.14)
|
(5.44)
|
(5.58)
|
71.23
|
20.51
|
115,119
|
0.80(f)
|
0.80
|
0.22
|
29
|
|
| ||||||||||||||
|
Class
R5 | ||||||||||||||
|
Year
ended 08/31/22 |
89.38
|
(0.06)
|
(16.46)
|
(16.52)
|
—
|
(19.75)
|
(19.75)
|
53.11
|
(23.38)
|
77
|
0.70
|
0.70
|
(0.11)
|
70
|
|
Year
ended 08/31/21 |
70.69
|
(0.14)
|
21.18
|
21.04
|
—
|
(2.35)
|
(2.35)
|
89.38
|
30.55
|
46
|
0.67
|
0.69
|
(0.18)
|
78
|
|
Year
ended 08/31/20 |
62.44
|
0.07
|
21.27
|
21.34
|
—
|
(13.09)
|
(13.09)
|
70.69
|
39.90
|
36
|
0.67
|
0.67
|
0.11
|
31
|
|
Period
ended 08/31/19(g)
|
58.66
|
0.05
|
3.73
|
3.78
|
—
|
—
|
—
|
62.44
|
6.44
|
11
|
0.68(f)(h)
|
0.68(h)
|
0.29(h)
|
64
|
|
| ||||||||||||||
|
Class
R6 | ||||||||||||||
|
Year
ended 08/31/22 |
100.70
|
(0.03)
|
(19.08)
|
(19.11)
|
—
|
(19.75)
|
(19.75)
|
61.84
|
(23.32)
|
12,895
|
0.63
|
0.63
|
(0.04)
|
70
|
|
Year
ended 08/31/21 |
79.32
|
(0.12)
|
23.85
|
23.73
|
—
|
(2.35)
|
(2.35)
|
100.70
|
30.62
|
19,838
|
0.62
|
0.63
|
(0.13)
|
78
|
|
Year
ended 08/31/20 |
68.60
|
0.10
|
23.71
|
23.81
|
—
|
(13.09)
|
(13.09)
|
79.32
|
39.91
|
14,514
|
0.63
|
0.67
|
0.15
|
31
|
|
Year
ended 08/31/19 |
71.57
|
0.23
|
1.58
|
1.81
|
(0.14)
|
(4.64)
|
(4.78)
|
68.60
|
3.66
|
9,747
|
0.63(f)
|
0.63
|
0.33
|
64
|
|
Year
ended 08/31/18 |
64.64
|
0.26
|
12.36
|
12.62
|
(0.25)
|
(5.44)
|
(5.69)
|
71.57
|
20.70
|
1,076,452
|
0.63(f)
|
0.63
|
0.39
|
29
|
|
| ||||||||||||||
|
(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. Not annualized for periods less
than one year, if applicable. |
|
(c)
|
Does
not include indirect expenses from affiliated fund fees and expenses of 0.00% for the years ended August 31, 2019 and 2018.
|
|
(d)
|
Portfolio
turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
|
(e)
|
The
total return, ratio of expenses to average net assets and ratio of net investment income to average net assets reflect actual 12b-1 fees
of 0.23%, 0.22% and 0.22% for the years ended
August
31, 2022, 2021 and 2020, respectively. |
|
(f)
|
Includes
fee waivers which were less than 0.005% per share. |
|
(g)
|
Commencement
date after the close of business on May 24, 2019. |
|
(h)
|
Annualized.
|
8 Invesco
Capital Appreciation 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 all of the Invesco Funds and their share classes that have different fees and expenses.
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 |
|
|
▪ 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) |
A-1 The
Invesco Funds
MCF—12/22
|
Share
Classes |
|
|
|
|
|
Class
A |
Class
C |
Class
R |
Class
Y |
Class
R5 and R6 |
|
|
▪ 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 International Core Equity 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 a specific
Fund may make additional purchases into Class AX and CX, respectively, of such specific Fund. All references in this “Shareholder
Account Information” section of this prospectus to Class A, C or R shares of the Invesco Funds shall include Class AX
(excluding Invesco Government Money Market Fund), or CX shares, respectively, of the Invesco Funds, unless otherwise noted. All references
in this “Shareholder Account Information” section of this prospectus to Invesco Cash Reserve Shares of Invesco Government
Money Market Fund shall include Class AX shares of Invesco Government Money Market Fund, unless otherwise noted.
Class P
Shares
In
addition to the other share classes discussed herein, the Invesco Summit Fund offers Class P shares, which were historically sold
only through the AIM Summit Investors Plans I and II (each a Plan and, collectively, the Summit Plans). Class P shares are sold with
no initial sales charge and have a 12b-1 fee of 0.10%. However, Class P shares are not sold to members of the general public. Only
shareholders who had accounts in the Summit Plans at the close of business on December 8, 2006 may purchase Class P shares and
only until the total of their combined investments in the Summit Plans and in Class P shares directly equals the face amount of their
former Plan under the 30 year extended investment option. The face amount of a Plan is the combined total of all scheduled monthly
investments under the Plan. For a Plan with a scheduled monthly investment of $100.00, the face amount would have been $36,000.00 under
the 30 year extended investment option.
Class R
Shares
Class R
shares are intended for 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 (except for the Invesco Master Loan Fund) are available for use by Employer Sponsored Retirement and Benefit
Plans, held either at the plan level or through omnibus accounts, that generally process no more than one net redemption and one net purchase
transaction each day.
Class
R5 and R6 shares of the Funds are also available to institutional investors.
Institutional investors are: banks, trust companies, collective trust funds, entities acting for the account of a public entity (e.g.,
Taft-Hartley funds, states, cities or government agencies), funds of funds or other pooled investment vehicles, 529 college savings plans,
financial intermediaries and corporations investing for their own accounts, endowments and foundations. For information regarding investment
minimums for Class R5 and R6 shares, please see “Minimum Investments” below.
Class
R6 shares of the Funds are also available through an intermediary that
has agreed with Invesco Distributors, Inc. to make such shares
A-2 The
Invesco Funds
available
for use in retail omnibus accounts that generally process no more than one net redemption and one net purchase transaction each day.
The
Invesco Master Loan Fund is only available for purchase by other Funds
in the Invesco fund family and other Invesco pooled investment vehicles.
Shareholders
eligible to purchase Class R6 Shares must meet the requirements
specified by their intermediary. Not all intermediaries offer Class R6 Shares to their customers.
Class S
Shares
Class S
shares are limited to investors who purchase shares with the proceeds received from a systematic contractual investment plan redemption
within the 12 months prior to purchasing Class S shares, and who purchase through an approved financial intermediary that has
an agreement with the distributor to sell Class S shares. Class S shares are not otherwise sold to members of the general public.
An investor purchasing Class S shares will not pay an initial sales charge. The investor will no longer be eligible to purchase additional
Class S shares at that point where the value of the contributions to the prior systematic contractual investment plan combined with
the subsequent Class S share contributions equals the face amount of what would have been the investor’s systematic contractual
investment plan under the 30-year investment option. The face amount of a systematic contractual investment plan is the combined total
of all scheduled monthly investments under that plan. For a plan with a scheduled monthly investment of $100.00, the face amount would
have been $36,000.00 under the 30-year extended investment option.
Class Y
Shares
Class
Y shares are available to (i) investors who purchase through an account that is charged an asset-based fee or commission by a financial
intermediary, including through brokerage platforms, where a broker is acting as the investor’s agent, that may require the payment
by the investor of a commission and/or other form of compensation to that broker, (ii) endowments, foundations, or Employer Sponsored
Retirement and Benefit Plans (with the exception of “Solo 401(k)” Plans and 403(b) custodial accounts held directly at Invesco),
(iii) banks or bank trust departments acting on their own behalf or as trustee or manager for trust accounts, or (iv) any current, former
or retired trustee, director, officer or employee (or immediate family members of a current, former or retired trustee, director, officer
or employee) of any Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
Subject
to any conditions or limitations imposed on the servicing of Class
Y shares by your financial adviser, if you received Class Y shares as a result of a merger or reorganization of a predecessor fund into
any of the Funds, you will be permitted to make additional Class Y share purchases. In addition, you will be permitted to make additional
Class Y shares purchases if you owned Class Y shares in a “Solo 401(k)” Plan or 403(b) custodial account held directly at
Invesco if you held such shares in your account on or prior to May 24, 2019.
Investor
Class Shares
Investor
Class shares are sold with no initial sales charge and have a maximum 12b-1 fee of 0.25%. Only the following persons may purchase Investor
Class shares:
◾
Investors
who established accounts prior to April 1, 2002, in Investor Class shares with Invesco Distributors, Inc. (Invesco Distributors) who have
continuously maintained an account in Investor Class shares (this includes anyone listed in the registration of an account, such as a
joint owner, trustee or custodian, and immediate family members of such persons) without a designated intermediary. These investors are
referred to as “Investor Class grandfathered investors.”
◾
Customers
of a financial intermediary that has had an agreement with the Funds’ distributor or any Funds that offered Investor Class shares
prior to April 1, 2002, that has continuously maintained such agreement. These intermediaries are referred to as “Investor
Class grandfathered intermediaries.”
◾
Any
current, former or retired trustee, director, officer or employee (or immediate family member of a current, former or retired trustee,
director, officer or employee) of any Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
For
additional shareholder eligibility requirements with respect to Invesco
Premier Portfolio, please see “Shareholder Account Information – Purchasing Shares and Shareholder Eligibility – Invesco
Premier Portfolio.”
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.
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 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
A-4 The
Invesco Funds
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.
Merrill
Lynch
Shareholders
purchasing Fund shares through a Merrill
Lynch platform
or account will be eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at Merrill Lynch
◾
Employer-sponsored
retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to fund those plans,
provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the plan;
◾
Shares
purchased by a 529 Plan (does not include 529 Plan unit or 529-specific share classes or equivalents);
◾
Shares
purchased through a Merrill Lynch affiliated investment advisory program;
◾
Shares
exchanged due to the holdings moving from a Merrill Lynch affiliated investment advisory program to a Merrill Lynch brokerage (non-advisory)
account pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers;
◾
Shares
purchased by third party investment advisors on behalf of their advisory clients through Merrill Lynch’s platform;
◾
Shares
of funds purchased through the Merrill Edge Self-Directed platform (if applicable);
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not
any other fund within the fund family);
◾
Shares
exchanged from Class C (i.e.
level-load) shares of the same fund pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers;
◾
Employees
and registered representatives of Merrill Lynch or its affiliates and their family members;
◾
Directors
or Trustees of the Fund, and employees of the Fund’s investment adviser or any of its affiliates, as described in this prospectus;
and
◾
Eligible
shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days
following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to
a front-end or deferred sales load (known as Rights of Reinstatement). Automated transactions (i.e. systematic purchases and withdrawals)
and purchases made after shares are automatically sold to pay Merrill Lynch’s account maintenance fees are not eligible for reinstatement.
◾
CDSC
Waivers on A and C Shares available at Merrill Lynch
◾
Death
or disability of the shareholder;
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund’s prospectus;
◾
Return
of excess contributions from an IRA Account;
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts pursuant to the Internal Revenue Code;
◾
Shares
sold to pay Merrill Lynch fees but only if the transaction is initiated by Merrill Lynch;
◾
Shares
acquired through a right of reinstatement;
◾
Shares
held in retirement brokerage accounts, that are converted to a lower cost share class due to transfer to a fee based account or platform
(applicable to A and C shares only); and
◾
Shares
received through an exchange due to the holdings moving from a Merrill Lynch affiliated investment advisory program to a Merrill Lynch
brokerage (non-advisory) account pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers.
◾
Front-end
load Discounts Available at Merrill Lynch: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this prospectus;
◾
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts as described in the Fund’s prospectus will be automatically
calculated based on the aggregated holding of fund family assets held by accounts (including 529 program holdings, where applicable) within
the purchaser’s household at Merrill Lynch. Eligible fund family assets not held at Merrill Lynch may be included in the ROA calculation
only if the shareholder notifies his or her financial advisor about such assets; and
◾
Letters
of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Merrill Lynch, over
a 13-month period of time (if applicable).
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).
A-5 The
Invesco Funds
Morgan
Stanley Wealth Management
Shareholders
purchasing Fund shares through a Morgan Stanley
Wealth Management transactional brokerage account will be eligible
only for the following front-end sales charge waivers with respect to Class A shares, which may differ from and may be more limited than
those disclosed elsewhere in this Fund’s Prospectus or SAI.
◾
Front-end
Sales Charge Waivers on Class A Shares available at Morgan Stanley Wealth Management
◾
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and
defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs, SAR-SEPs
or Keogh plans;
◾
Morgan
Stanley employee and employee-related accounts according to Morgan Stanley’s account linking rules;
◾
Shares
purchased through reinvestment of dividends and capital gains distributions when purchasing shares of the same fund;
◾
Shares
purchased through a Morgan Stanley self-directed brokerage account;
◾
Class
C (i.e., level-load) shares that are no longer subject to a contingent deferred sales charge and are converted to Class A shares of the
same fund pursuant to Morgan Stanley Wealth Management’s share class conversion program; and
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (i) the repurchase occurs within 90 days following the
redemption, (ii) the redemption and purchase occur in the same account, and (iii) redeemed shares were subject to a front-end or deferred
sales charge.
Raymond
James Financial Services, Inc.
Shareholders
purchasing Fund shares through a Raymond
James Financial Services, Inc., Raymond James affiliates and each
entity’s affiliates (Raymond James) platform or account, or through an introducing broker-dealer or independent registered investment
adviser for which Raymond James provides trade execution, clearance, and/or custody services, will be eligible only for the following
load waivers (front-end sales charge waivers and contingent deferred, or back-end, sales charge waivers) and discounts, which may differ
from those disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
sales load waivers on Class A shares available at Raymond James
◾
Shares
purchased in an investment advisory program.
◾
Shares
purchased within the same fund family through a systematic reinvestment of capital gains distributions and dividend distributions.
◾
Employees
and registered representatives of Raymond James or its affiliates and their family members as designated by Raymond James.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (known as Rights of Reinstatement).
◾
A
shareholder in the Fund’s Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate
share class) of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures
of Raymond James.
◾
CDSC
Waivers on Classes A and C shares available at Raymond James
◾
Death
or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the fund’s prospectus.
◾
Return
of excess contributions from an IRA Account.
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based
on applicable IRS regulations as described in the fund’s prospectus.
◾
Shares
sold to pay Raymond James fees but only if the transaction is initiated by Raymond James.
◾
Shares
acquired through a right of reinstatement.
◾
Front-end
load discounts available at Raymond James: breakpoints, rights of accumulation, and/or letters of intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of
fund family assets held by accounts within the purchaser’s household at Raymond James. Eligible fund family assets not held at Raymond
James may be included in the calculation of rights of accumulation only if the shareholder notifies his or her financial advisor about
such assets.
◾
Letters
of intent which allow for breakpoint discounts based on anticipated purchases within a fund family, over a 13-month time period. Eligible
fund family assets not held at Raymond James may be included in the calculation of letters of intent only if the shareholder notifies
his or her financial advisor about such assets.
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.
A-6 The
Invesco Funds
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.
◾
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.
Oppenheimer
& Co. Inc. (“OPCO”)
Shareholders
purchasing Fund shares through an OPCO
platform or account are eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund's prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at OPCO
◾
Employer-sponsored
retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to
fund
those plans, provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the
plan
◾
Shares
purchased by or through a 529 Plan
◾
Shares
purchased through an OPCO affiliated investment advisory program
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not
any other fund within the fund family)
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (known as Rights of Reinstatement).
◾
A
shareholder in the Fund's Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate share
class) of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures of OPCO
◾
Employees
and registered representatives of OPCO or its affiliates and their family members
◾
Directors
or Trustees of the Fund, and employees of the Fund's investment adviser or any of its affiliates, as described in this prospectus
◾
CDSC
Waivers on A and C Shares available at OPCO
◾
Death
or disability of the shareholder
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund's prospectus
◾
Return
of excess contributions from an IRA Account
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based
on applicable IRS regulations as described in the prospectus
◾
Shares
sold to pay OPCO fees but only if the transaction is initiated by OPCO Shares acquired through a right of reinstatement
◾
Front-end
load Discounts Available at OPCO: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding
of fund family assets held by accounts within the purchaser's household at OPCO. Eligible fund family assets not held at OPCO may be included
in the ROA calculation only if the shareholder notifies his or her financial advisor about such assets.
Robert
W. Baird & Co. Incorporated (“Baird”)
Shareholders
purchasing fund shares through a Baird
platform or account will only be eligible for the following sales charge waivers (front-end sales charge waivers and CDSC waivers) and
discounts, which may differ from those disclosed elsewhere in this prospectus or the SAI.
◾
Front-End
Sales Charge Waivers on Class A-shares Available at Baird
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund.
◾
Shares
purchased by employees and registered representatives of Baird or its affiliate and their family members as designated by Baird.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales charge (known as rights of reinstatement).
◾
A
shareholder in the Fund’s Class C Shares will have their shares converted at net asset value to Class A shares of the fund if the
shares are no longer subject to CDSC and the conversion is in line with the policies and procedures of Baird.
◾
Employer-sponsored
retirement plans or charitable accounts in a transactional brokerage account at Baird, including 401(k) plans, 457 plans, employer-sponsored
403(b) plans, profit sharing and money
A-7 The
Invesco Funds
purchase
pension plans and defined benefit plans. For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs,
Simple IRAs or SAR-SEPs.
◾
CDSC
Waivers on Classes A and C shares Available at Baird
◾
Shares
sold due to death or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund’s Prospectus.
◾
Return
of excess contributions from an IRA Account.
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching age 72 as described in
the Fund’s prospectus.
◾
Shares
sold to pay Baird fees but only if the transaction is initiated by Baird.
◾
Shares
acquired through a right of reinstatement.
◾
Front-End
Sales Charge Discounts Available at Baird: Breakpoints, Rights of Accumulation and/or letters of intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of
fund family assets held by accounts within the purchaser’s household at Baird. Eligible fund family assets not held at Baird may
be included in the rights of accumulation calculation only if the shareholder notifies his or her financial advisor about such assets.
◾
Letters
of Intent (LOI) allow for breakpoint discounts based on anticipated purchases of within a fund family through Baird, over a 13-month period
of time.
Edward
D. Jones & Co., L.P. (“Edward Jones”)
Policies
Regarding Transactions Through Edward Jones
The
following information has been provided by Edward Jones:
The
following information supersedes prior information with respect to transactions
and positions held in fund shares through an Edward Jones system. Shareholders purchasing Fund shares through the Edward
Jones commission
and fee-based platforms will be eligible for the following load waivers (front- end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund's prospectus or statement of additional
information (“SAI”). 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 (including holdings of 529 Plans where Invesco serves as primary distributor), 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.
◾
Front-end
sales load waivers on Class A shares available at Edward Jones
◾
Associates
of Edward Jones and its affiliates and their family members who are 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: 1) the proceeds are
from the sale of shares within 60 days of the purchase, and 2) the sale and purchase are made in the same share class and the same account
or the purchase is made in an individual retirement account with proceeds from liquidations in a non-retirement account.
◾
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.
◾
CDSC
Waivers on Classes A and C shares available at Edward Jones
◾
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
sold 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 the qualified age based on applicable IRS regulations.
◾
Shares
sold 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 Minimum Balances, as described below.
◾
Front-end
load discounts available at Edward Jones: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoint
pricing, otherwise known as volume pricing, at dollar thresholds as described in the prospectus.
◾
Rights
of Accumulation (“ROA”) which entitles the shareholder to the applicable sales charge on a purchase of Class A shares will
be determined by taking into account all share classes (except certain money market funds and any assets held in group retirement plans)
of Invesco Funds (including holdings of 529 Plans where Invesco serves as primary distributor) 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).
◾
Letters
of Intent (“LOI”) allow shareholders to receive 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.
Other
Important Information Regarding Transactions Through Edward
Jones
Minimum
Purchase Amounts
•
Initial
purchase minimum: $250
•
Subsequent
purchase minimum: none
A-8 The
Invesco Funds
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.
Stifel,
Nicolaus & Company (“Stifel”)
Shareholders
purchasing Fund shares through a Stifel
platform or account will be eligible only for the following front-end sales charge waivers and discounts, which may differ from those
disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at Stifel: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this 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 Stifel. Eligible
fund family assets not held at Stifel may be included in the ROA calculation only if the shareholder notifies his or her financial advisor
about such assets; and
◾
Letters
of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Stifel, over a 13-month
period of time (if applicable).
◾
Shares
converted from Class C (i.e. level-load) shares of the same fund pursuant to Stifel policies relating to sales load discounts and waivers.
PFS
Investments Inc. (“PFSI”)
Policies
Regarding Transactions Through PFSI
The
following information supersedes all prior information with respect to transactions and positions held in fund shares purchased through
PFSI and held on the mutual fund platform of its affiliate, Primerica Shareholder Services (“PSS”). Clients of PFSI (also
referred to as “shareholders”) purchasing fund shares on the PSS platform are eligible only for the following share classes,
sales charge discounts (also referred to as “breakpoints”) and waivers, which can differ from share classes, discounts and
waivers described elsewhere in this prospectus or the related statement of additional information (“SAI”) or through another
broker-dealer. In all instances, it is the shareholder’s responsibility to inform PFSI at the time of a purchase of all holdings
of Invesco Funds on the PSS platform, or other facts qualifying the purchaser for discounts or waivers. PFSI may request reasonable documentation
of such facts, and condition the granting of any discount or waiver on the timely receipt of such documents. Shareholders should contact
PSS if they have questions regarding their eligibility for these discounts and waivers.
Share
Classes
◾
Class
A shares: in non-retirement accounts, individual retirement accounts (IRA), SEP IRAs, SIMPLE IRAs, Keogh Plans, and all other account
types unless expressly provided for below.
◾
Class
C shares: only in accounts with existing Class C share holdings.
Breakpoints
◾
Breakpoint
pricing at dollar thresholds as described in the prospectus of the fund you are purchasing.
Rights
of Accumulation (“ROA”)
◾
The
applicable sales charge on a purchase of Class A shares is determined by taking into account all share classes (except any assets held
in group retirement plans) of Invesco Funds held by the shareholder on the PSS Platform. The inclusion of eligible fund family assets
in the ROA calculation is dependent on the shareholder notifying PFSI of such assets at the time of calculation. Shares of money market
funds are
included
only if such shares were acquired in exchange for shares of another Invesco Fund purchased with a sales charge. No shares of Invesco Funds
held by the shareholder away from the PSS platform will be granted ROA with shares of any Invesco Fund purchased on the PSS platform.
◾
Any
SEP IRA plan, any SIMPLE IRA plan or any Payroll Deduction plan (“PDP”) on the PSS platform will be defaulted to plan-level
grouping for purposes of ROA, which allows each participating employee ROA with all other eligible shares held in plan accounts on the
PSS platform. At any time, a participating employee may elect to exercise a one-time option to change grouping for purposes of ROA to
shareholder- level grouping, which allows the plan account of the electing employee ROA with her other eligible holdings on the PSS platform,
but not with all other eligible participant holdings in the plan. Eligible shares held in plan accounts electing shareholder-level grouping
will not be available for purposes of ROA to plan accounts electing plan-level grouping.
◾
ROA
is determined by calculating the higher of cost minus redemptions or current market value (current shares x NAV).
Letter
of Intent (“LOI”)
◾
By
executing a LOI, shareholders can receive the sales charge and breakpoint discounts for purchases shareholders intend to make over a 13-month
period through PFSI, from the date PSS receives the LOI. The purchase price of the LOI is determined by calculating the higher of cost
or market value of qualifying holdings at LOI initiation in combination with the dollar amount the shareholder intends to invest over
a 13-month period to arrive at total investment for purposes of determining any breakpoint discount and the applicable front-end sales
charge. Each purchase the shareholder makes during that 13-month period will receive the sales charge and breakpoint discount that applies
to the projected total investment.
◾
Only
holdings of Invesco Funds on the PSS platform are eligible for inclusion in the LOI calculation and the shareholder must notify PFSI of
all eligible assets at the time of calculation.
◾
Purchases
made before the LOI is received by PSS are not adjusted under the LOI, and the LOI will not reduce any sales charge previously paid. Sales
charges will be automatically adjusted if the total purchases required by the LOI are not met.
◾
If
an employer maintaining a SEP IRA plan, SIMPLE IRA plan or non-IRA PDP on the PSS platform has elected to establish or change ROA for
the accounts associated with the plan to a plan-level grouping, LOIs will also be at the plan-level and may only be established by the
employer. LOIs are not available to PDP IRA plans on the PSS platform with plan-level grouping for purposes of ROA, but are available
to any participating employee that elects shareholder-level grouping for purposes of ROA.
Sales
Charge Waivers
Sales
charges are waived for the following shareholders and in the following
situations:
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment.
◾
Shares
purchased with the proceeds of redeemed shares of the same fund family so long as the following conditions are met: 1) the proceeds are
from the sale of shares within 90 days of the purchase, 2) the sale and purchase are made in the same share class and the same account
or the purchase is made in an individual retirement account with proceeds from liquidations in a non-retirement account, and 3) the redeemed
shares were subject to a front-end or deferred sales load, Automated transactions (i.e. systematic purchases and withdrawals), full or
partial transfers or rollovers of retirement accounts, and purchases made after shares are automatically sold to pay account maintenance
fees are not eligible for this sales charge waiver.
◾
Shares
exchanged into Class A shares from another share class so long as the exchange is into the same fund and was initiated at the discretion
of PFSI. PFSI is responsible for any remaining CDSC due to the fund company, if applicable. Any future purchases are subject to the applicable
sales charge as disclosed in the prospectus.
Policies
Regarding Fund Purchases Through PFSI That Are Not Held
on the PSS Platform
A-9 The
Invesco Funds
◾
Class
R shares
are available through PFSI only in 401(k) plans covering a business owner with no employees, commonly referred to as a one-participant
401(k) plan or solo 401(k).
UBS
Financial Services Inc. (“UBS”)
Pursuant
to an agreement with the Distributor, UBS may offer Class Y
shares
to its retail brokerage clients whose shares are held in omnibus
accounts at UBS, or its designee. For these clients, UBS may charge commissions or transaction fees with respect to brokerage transactions
in Class Y shares. The
minimum investment for Class Y shares is waived for transactions through such brokerage platforms at UBS. Please contact your UBS representative
for more information about these fees and other eligibility requirements.
Qualifying
for Reduced Sales Charges and Sales Charge Exceptions
The
following types of accounts qualify for reduced sales charges or sales charge exceptions under ROAs and LOIs:
1.
an
individual account owner;
2.
immediate
family of the individual account owner (which includes the individual’s spouse or domestic partner; the individual’s children,
step-children or grandchildren; the spouse or domestic partner of the individual’s children, step-children or grandchildren; the
individual’s parents and step-parents; the parents or step-parents of the individual’s spouse or domestic partner; the individual’s
grandparents; and the individual’s siblings);
3.
a
Retirement and Benefit Plan so long as the plan is established exclusively for the benefit of an individual account owner; and
4.
a
Coverdell Education Savings Account (Coverdell ESA), maintained pursuant to Section 530 of the Code (in either case, the account
must be established by an individual account owner or have an individual account owner named as the beneficiary thereof).
Alternatively,
an Employer Sponsored Retirement and Benefit Plan (but not including
plans utilizing the Invesco 403(b)(7) Custodial Account program, or the individual custodial accounts thereunder) or Employer Sponsored
IRA may be eligible to purchase shares pursuant to a ROA at the plan level, and receive a reduced applicable initial sales charge for
a new purchase based on the total value of the current purchase and the value of other shares owned by the plan’s participants if:
a)
the
employer or plan sponsor submits all contributions for all participating employees in a single contribution transmittal (the Invesco Funds
will not accept separate contributions submitted with respect to individual participants);
b)
each
transmittal is accompanied by checks or wire transfers; and
c)
if
the Invesco Funds are expected to carry separate accounts in the names of each of the plan participants, (i) the employer or plan
sponsor notifies Invesco Distributors or its designee in writing that the separate accounts of all plan participants should be linked,
and (ii) all new participant accounts are established by submitting an appropriate Account Application on behalf of each new participant
with the contribution transmittal.
Participant
accounts in a retirement plan that are eligible to purchase shares
pursuant to a ROA at the plan level may not also be considered eligible to do so for the benefit of an individual account owner.
In
all instances, it is the purchaser’s responsibility to notify Invesco Distributors
or its designee of any relationship or other facts qualifying the purchaser as eligible for reduced sales charges and/or sales charge
exceptions and to provide all necessary documentation of such facts in order to qualify for reduced sales charges or sales charge exceptions.
For additional information on linking accounts to qualify for ROA or LOI, please see the Funds’ SAI.
Purchases
of Class A shares of Invesco Conservative Income Fund, Invesco
Government Money Market Fund and Invesco Short Term Municipal Fund, Class AX shares or Invesco Cash Reserve Shares of Invesco Government
Money Market Fund and Invesco U.S. Government Money Portfolio, as applicable, or Investor Class shares of any Fund will not be
taken
into account in determining whether a purchase qualifies for a reduction in initial sales charges pursuant to ROAs or LOIs.
Rights
of Accumulation
Purchasers
that qualify for ROA may combine new purchases of Class A shares of a Fund with shares of the Fund or other open-end Invesco Funds
currently owned (Class A, C, IB, IC, P, R, S or Y) for the purpose of qualifying for the lower initial sales charge rates that apply
to larger purchases. The applicable initial sales charge for the new purchase will be based on the total of your current purchase and
the value of other shares owned based on their current public offering price. The Funds’ transfer agent may automatically link certain
accounts registered in the same name with the same taxpayer identification number for the purpose of qualifying you for lower initial
sales charge rates.
Letters
of Intent
Under
a LOI, you commit to purchase a specified dollar amount of Class A shares of one or more Funds during a 13-month period. The amount
you agree to purchase determines the initial sales charge you pay. If the full amount committed to in the LOI is not invested by the end
of the 13-month period, your account will generally be assessed the higher initial sales charge that would normally be applicable to the
total amount actually invested. Shares equal in value to 5% of the intended purchase amount will be held in escrow for this purpose.
Reinstatement
Following Redemption
If
you redeem any class of shares of a Fund, you may reinvest all or a portion of the proceeds from the redemption (and may include that
amount necessary to acquire a fractional Share to round off his or her purchase to the next full Share) in the same share class of any
Fund within 180 days of the redemption without paying an initial sales charge. Class P, S, and Y redemptions may be reinvested into Class
A shares without an initial sales charge.
This
reinstatement privilege does not apply to a purchase made through a
regularly scheduled automatic investment plan, such as a purchase by a regularly scheduled payroll deduction or transfer from a bank account.
This
reinstatement privilege shall be suspended for the period of time in which
a purchase block is in place on a shareholder’s account. Please see “Purchase Blocking Policy” discussed below.
In
order to take advantage of this reinstatement privilege, you must inform
your financial adviser or the Funds’ transfer agent that you wish to do so at the time of your reinvestment.
Contingent
Deferred Sales Charges (CDSCs)
CDSCs
on Class A Shares and Invesco Cash Reserve Shares
Any
shares of a Large Purchase of Class A shares redeemed prior to 18 months after the date of purchase will be subject to a CDSC of 1% with
the exception of Class A shares of Invesco Conservative Income Fund and Invesco Short Term Municipal Fund which do not have CDSCs on redemptions.
If
Invesco Distributors pays a concession to a financial intermediary in connection
with a Large Purchase of Class A shares by an Employer Sponsored Retirement and Benefit Plan or SIMPLE IRA Plan, the Class A shares will
be subject to a 1% CDSC if all of the Employer Sponsored Retirement and Benefit Plan’s or SIMPLE IRA’s shares are redeemed
within one year from the date of initial purchase.
If
you acquire Invesco Cash Reserve Shares or Class A shares of Invesco
Government Money Market Fund or Invesco Cash Reserve Shares of Invesco U.S. Government Money Portfolio through an exchange involving Class
A shares that were subject to a CDSC, the shares acquired as a result of the exchange will continue to be subject to that same CDSC.
CDSCs
on Class C Shares
Class
C shares are subject to a CDSC; however, the CDSC shall not apply to the purchases of Class C shares where the selling broker-dealer was
not paid a commission at the time of purchase. If you redeem your shares during the first year since your purchase has been made you will
be
A-10 The
Invesco Funds
assessed
a CDSC as disclosed in the “Fees and Expenses - Shareholder Fees” table in the prospectus, unless you qualify for one of the
CDSC exceptions outlined below.
CDSCs
on Class C Shares – Employer Sponsored Retirement and Benefit Plans and Employer Sponsored IRAs
Class
C shares are subject to a 1.00% CDSC at the time of redemption if all of the Employer Sponsored Retirement and Benefit Plan’s or
Employer Sponsored IRA’s shares are redeemed within one year from the date of initial purchase.
CDSCs
on Class C Shares of Invesco Short Term Bond Fund
Effective
November 1, 2021, Class C shares of Invesco Short Term Bond Fund are subject to a CDSC. If you acquire Class C shares of any other Fund
as a result of an exchange involving Class C shares of Invesco Short Term Bond Fund that were not subject to a CDSC prior to November
1, 2021, then the shares acquired as a result of the exchange will not be subject to a CDSC.
Computing
a CDSC
The
CDSC on redemptions of shares is computed based on the lower of their original purchase price or current net asset value, net of reinvested
dividends and capital gains distributions. In determining whether to charge a CDSC, shares are accounted for on a first-in, first-out
basis, which means that you will redeem shares on which there is no CDSC first, and then shares in the order of their purchase.
CDSC
Exceptions
Investors
who own shares that are otherwise subject to a CDSC will not pay a CDSC in the following circumstances:
◾
If
you participate in the Systematic Redemption Plan and withdraw up to 12% of the value of your shares that are subject to a CDSC in any
twelve-month period.
◾
If
you redeem shares to pay account fees.
◾
If
you are the executor, administrator or beneficiary of an estate or are otherwise entitled to assets remaining in an account following
the death or post-purchase disability of a shareholder or beneficial owner and you choose to redeem those shares.
There
are other circumstances under which you may be able to redeem shares
without paying CDSCs. For additional information about such circumstances, please see the Appendix entitled “Purchase, Redemption
and Pricing of Shares” in each Fund’s SAI.
Shares
acquired through the reinvestment of dividends and distributions are
not subject to CDSCs.
The
following share classes are sold without a CDSC:
◾
Class
A2 shares of Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund
◾
Class
A shares of Invesco Government Money Market Fund
◾
Invesco
Cash Reserve Shares of Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio
◾
Investor
Class shares of any Fund
◾
Class
P shares of Invesco Summit Fund
◾
Class
R5 and R6 shares of any Fund
◾
Class
R shares of any Fund
◾
Class
S shares of Invesco Charter Fund, Invesco Select Risk: Moderately Conservative Investor Fund, Invesco Select Risk: Growth Investor Fund,
Invesco Select Risk: Moderate Investor Fund and Invesco Summit Fund
◾
Class
Y shares of any Fund
Purchasing
Shares and Shareholder Eligibility
Invesco
Premier U.S. Government Money Portfolio
For
Invesco Premier U.S. Government Money Portfolio, you may purchase shares using one of the options below. Unless the Fund closes early
on a business day, the Fund’s transfer agent will generally accept any purchase order placed until 5:00 p.m. Eastern Time on a business
day and may accept a purchase order placed until 5:30 p.m. Eastern Time on a business
day.
If you wish to place an order between 5:00 p.m. and 5:30 p.m. Eastern Time on a business day, you must place such order by telephone;
however, the Fund’s transfer agent reserves the right to reject or limit the amount of orders placed during this time. If the Fund
closes early on a business day, the Fund’s transfer agent must receive your purchase order prior to such closing time. Purchase
orders will not be processed unless the account application and purchase payment are received in good order. In accordance with the USA
PATRIOT Act, if you fail to provide all the required information requested in the current account application, your purchase order will
not be processed. Additionally, federal law requires that the Fund verifies and records your identifying information.
Invesco
Premier Portfolio
Only
accounts beneficially owned by natural persons will be permitted to retain their shares. The Fund has implemented policies and procedures
reasonably designed to limit all beneficial owners of the Fund to natural persons, and investments in the Fund are limited to accounts
beneficially owned by natural persons. Natural persons may invest in the Fund through certain tax-advantaged savings accounts, trusts
and other retirement and investment accounts, which may include, among others: participant-directed defined contribution plans; individual
retirement accounts; simplified employee pension arrangements; simple retirement accounts; custodial accounts; deferred compensation plans
for government or tax-exempt organization employees; Archer medical savings accounts; college savings plans; health savings account plans;
ordinary trusts and estates of natural persons; or certain other retirement and investment accounts with ultimate investment authority
held by the natural person beneficial owner, notwithstanding having an institutional decision maker making day-to-day decisions (e.g.,
a plan sponsor in certain retirement arrangements or an investment adviser managing discretionary investment accounts).
Further,
financial intermediaries may only submit purchase orders if they have
implemented policies and procedures reasonably designed to limit all investors on behalf of whom they submit orders to accounts beneficially
owned by natural persons. Financial intermediaries may be required to provide a written statement or other representation that they have
in place, and operate in compliance with, such policies and procedures prior to submitting purchase orders. Such policies and procedures
may include provisions for the financial intermediary to promptly report to the Fund or the transfer agent the identification of any shareholder
of the Fund that does not qualify as a natural person of whom they are aware and promptly take steps to redeem any such shareholder’s
shares of the Fund upon request by the Fund or the transfer agent, in such manner as it may reasonably request. The Fund may involuntarily
redeem any such shareholder who does not voluntarily redeem their shares.
Natural
persons may purchase shares using one of the options below. For
all classes of the Fund, other than Investor Class shares, unless the Fund closes early on a business day, the Fund’s transfer agent
will generally accept any purchase order placed until 5:00 p.m. Eastern Time on a business day and may accept a purchase order placed
until 5:30 p.m. Eastern Time on a business day. If you wish to place an order between 5:00 p.m. and 5:30 p.m. Eastern Time on a business
day, you must place such order by telephone; or send your request by a pre-arranged Liquidity Link data transmission however, the Fund’s
transfer agent reserves the right to reject or limit the amount of orders placed during this time. For Investor Class shares of the Fund,
unless the Fund closes early on a business day, the Fund’s transfer agent will generally accept any purchase order placed until
4:00 p.m. Eastern Time on a business day and may accept a purchase order placed until 4:30 p.m. Eastern Time on a business day. If you
wish to place an order between 4:00 p.m. and 4:30 p.m. Eastern Time on a business day, you must place such order by telephone; however,
the Fund’s transfer agent reserves the right to reject or limit the amount of orders placed during this time. If the Fund closes
early on a business day, the Fund’s transfer agent must receive your purchase order prior to such closing time. Purchase orders
will not be processed unless the account application and purchase payment are received in good order. In accordance with the USA PATRIOT
Act, if you fail to provide all the required information requested in the current account application, your purchase order will not be
A-11 The
Invesco Funds
processed.
Additionally, federal law requires that the Fund verify and record your identifying information.
Minimum Investments
There
are no minimum investments for Class P or S shares for fund accounts. The minimum investments for Class A, C, R, Y, Investor Class and
Invesco Cash Reserve shares for fund accounts are as follows:
|
Type
of Account |
Initial
Investment
Per
Fund |
Additional
Investments
Per
Fund |
|
Asset
or fee-based accounts managed by your financial
adviser
|
None
|
None
|
|
| ||
|
Employer
Sponsored Retirement and Benefit Plans and
Employer
Sponsored IRAs |
None
|
None
|
|
| ||
|
IRAs
and Coverdell ESAs if the new investor is
purchasing
shares through a systematic purchase plan |
$25
|
$25
|
|
| ||
|
All
other accounts if the investor is purchasing shares
through
a systematic purchase plan |
50
|
50
|
|
| ||
|
IRAs
and Coverdell ESAs |
250
|
25
|
|
| ||
|
All
other accounts |
1,000
|
50
|
|
| ||
Invesco
Distributors or its designee has the discretion to accept orders on behalf of clients for lesser amounts.
The
minimum investments for Class R5 and R6 shares are as follows:
There
is no minimum initial investment for an Employer Sponsored Retirement
and Benefit Plan investing through a retirement platform that administers at least $2.5 billion in retirement plan assets. All other Employer
Sponsored Retirement and Benefit Plans must meet a minimum initial investment of at least $1 million in each Fund in which it invests.
The
minimum initial investment in each share class for all other institutional
investors is $1 million, unless such investment is made by (i) an investment company, as defined under the 1940 Act, as amended, that
is part of a family of investment companies which own in the aggregate at least $100 million in securities, or (ii) an account established
with a 529 college savings plan managed by Invesco, in which case there is no minimum initial investment.
There
are no minimum investment amounts for Class R6 shares held through
retail omnibus accounts where the intermediary:
◾
generally
charges an asset-based fee or commission in addition to those described in this prospectus; and
◾
maintains
Class R6 shares and makes them available to retail investors.
A
financial intermediary may impose different investment minimums than
those set forth above. The Fund is not responsible for any investment minimums imposed by financial intermediaries or for notifying shareholders
of any changes to them. See “Waivers Available Through Certain Financial Intermediaries and Other Financial Intermediary-Specific
Arrangements” for more information on certain intermediary-specific investment minimums. Please consult with your financial intermediary
if you have any questions regarding their policies.
How
to Purchase Shares*
|
|
Opening
An Account |
Adding
To An Account |
|
Through
a
Financial
Adviser
or
Financial
Intermediary*
|
Contact
your financial adviser or
financial
intermediary. |
Contact
your financial adviser or
financial
intermediary. |
|
By
Mail |
Mail
completed account application
and
check to the Funds’ transfer
agent,
Invesco
Investment Services, Inc.
P.O.
Box 219078,
Kansas
City, MO 64121-9078.
The
Funds’ transfer agent does NOT
accept
the following types of
payments:
Credit Card Checks,
Temporary/Starter
Checks, Third
Party
Checks, and Cash. |
Mail
your check and the remittance
slip
from your confirmation
statement
to the Funds’ transfer
agent.
The Funds’ transfer agent
does
NOT accept the following
types
of payments: Credit Card
Checks,
Temporary/Starter Checks,
Third
Party Checks, and Cash. |
|
|
Opening
An Account |
Adding
To An Account |
|
By
Wire* |
Mail
completed account application
to
the Funds’ transfer agent. Call
the
Funds’ transfer agent at (800)
959-4246
to receive a reference
number.
Then, use the wire
instructions
provided below. |
Call
the Funds’ transfer agent to
receive
a reference number. Then,
use
the wire instructions provided
below.
|
|
Wire
Instructions |
Beneficiary
Bank ABA/Routing #: 011001234
Beneficiary
Account Number: 729639
Beneficiary
Account Name: Invesco Investment Services, Inc.
RFB:
Fund Name, Reference #
OBI:
Your Name, Account # | |
|
By
Telephone* |
Open
your account using one of the
methods
described above. |
The
Bank Account Information
option
on your completed account
application
or complete a
Systematic
Options and Bank
Information
Form. Mail the
application
or form to the Funds’
transfer
agent. Once the Funds’
transfer
agent has received the
form,
call the Funds’ transfer agent
at
the number below to place your
purchase
order. For Class R5 and
R6
shares, call the Funds’ transfer
agent
at (800) 959-4246 and wire
payment
for your purchase order in
accordance
with the wire
instructions
listed above. |
|
Automated
Investor
Line |
Open
your account using one of the
methods
described above. |
Call
the Funds’ transfer agent’s
24-hour
Automated Investor Line at
1-800-246-5463.
You may place
your
order after you have provided
the
bank instructions that will be
requested.
|
|
By
Internet |
Open
your account using one of the
methods
described above. |
Access
your account at
www.invesco.com/us.
The proper
bank
instructions must have been
provided
on your account. You may
not
purchase shares in Retirement
and
Benefit Plans on the internet. |
|
*Class
R5 and R6 shares may only be purchased through a financial intermediary or by
telephone
at (800) 959-4246. | ||
Non-retirement
retail investors, including high net worth investors investing
directly or through a financial intermediary, are not eligible for Class R5 shares. IRAs and Employer Sponsored IRAs are also not eligible
for Class R5 shares. If you hold your shares through a financial intermediary, the terms by which you purchase, redeem and exchange shares
may differ than the terms in this prospectus depending upon the policies and procedures of your financial intermediary.
Purchase
orders will not be processed unless the account application and
purchase payment are received in good order. In accordance with the USA PATRIOT Act, if you fail to provide all the required information
requested in the current account application, your purchase order will not be processed. Additionally, federal law requires that the Funds
verify and record your identifying information.
Systematic
Purchase Plan (Available for all classes except Class R5 and R6 shares)
You
can arrange for periodic investments in any of the Funds by authorizing the Funds’ transfer agent to withdraw the amount of your
investment from your bank account on a day or dates you specify and in an amount of at least $25 per Fund for IRAs and Coverdell ESAs,
and at least $50 per Fund for all other types of accounts (a Systematic Purchase Plan). You may stop the Systematic Purchase Plan at any
time by giving the Funds’ transfer agent notice ten days prior to your next scheduled withdrawal. Certain financial advisers and
other financial intermediaries may also offer systematic purchase plans.
A-12 The
Invesco Funds
Dollar
Cost Averaging (Available for all classes except Class R5 and R6 shares)
Dollar
Cost Averaging allows you to make automatic periodic exchanges, if permitted, from one Fund to another Fund or multiple other Funds. The
account from which exchanges are to be made must have a minimum balance of $5,000 before you can use this option. Exchanges will occur
on (or about) the day of the month you specify, in the amount you specify. Dollar Cost Averaging cannot be set up for the 29th through
the 31st of the month. The minimum amount you can exchange to another Fund is $50. Your financial intermediary may offer alternative dollar
cost averaging programs with different requirements.
Automatic
Dividend and Distribution Investment
Your
dividends and distributions may be paid in cash or reinvested in the same Fund or another Fund without paying an initial sales charge.
Unless
you specify otherwise, your dividends and distributions will automatically
be reinvested in the same Fund. You must comply with the following requirements to be eligible to invest your dividends and distributions
in shares of another Fund:
◾
Your
account balance in the Fund paying the dividend or distribution must be at least $5,000; and
◾
Your
account balance in the Fund receiving the dividend or distribution must be at least $500.
If
you elect to receive your distributions by check, and the distribution amount
is $25 or less, then the amount will be automatically reinvested in the same Fund and no check will be issued. If you have elected to
receive distributions by check, and the postal service is unable to deliver checks to your address of record, then your distribution election
may be converted to having all subsequent distributions reinvested in the same Fund and no checks will be issued. With respect to certain
account types, if your check remains uncashed for six months, the Fund generally reserves the right to reinvest your distribution check
in your account at the then applicable NAV and to reinvest all subsequent distributions in shares of the Fund. Such checks will be reinvested
into the same share class of the Fund. You should contact the Funds’ transfer agent to change your distribution option, and your
request to do so must be received by the Funds’ transfer agent before the record date for a distribution in order to be effective
for that distribution. No interest will accrue on amounts represented by uncashed distribution checks.
Redeeming
Shares*
The
Funds’ transfer agent or authorized intermediary, if applicable, must receive your call before the Funds’ net asset value
determination (as defined by the applicable Fund) in order to effect the redemption at that day’s net asset value.
Your
broker or financial intermediary may charge service fees for handling
redemption transactions.
|
How
to Redeem Shares | |
|
Through
a Financial
Adviser
or Financial
Intermediary*
|
Contact
your financial adviser or financial intermediary. The Funds’
transfer
agent must receive your financial adviser’s or financial
intermediary’s
call before the Funds’ net asset value determination
(as
defined by the applicable Fund) in order to effect the redemption
at
that day’s net asset value. Please contact your financial adviser or
financial
intermediary with respect to reporting of cost basis and
available
elections for your account. |
|
By
Mail |
Send
a written request to the Funds’ transfer agent which includes: |
|
|
▪ Original
signatures of all registered owners/trustees;
▪ The
dollar value or number of shares that you wish to redeem;
▪ The
name of the Fund(s) and your account number;
▪ The
cost basis method or specific shares you wish to redeem for
tax
reporting purposes, if different than the method already on
record;
and |
|
|
▪ Signature
guarantees, if necessary (see below).
The
Funds’ transfer agent may require that you provide additional
documentation,
or information, such as corporate resolutions or
powers
of attorney, if applicable. If you are redeeming from a
Retirement
and Benefit Plan, you must complete the appropriate
distribution
form. |
|
How
to Redeem Shares | |
|
By
Telephone* |
Call
the Funds’ transfer agent at 1-800-959-4246. You will be
allowed
to redeem by telephone if:
▪ Your
redemption proceeds are to be mailed to your address on
record
(and there has been no change in your address of record
within
the last 15 days) or transferred electronically to a
pre-authorized
checking account;
▪ You
can provide proper identification information;
▪ Your
redemption proceeds do not exceed $250,000 per Fund; and
▪ You
have not previously declined the telephone redemption
privilege.
|
|
|
You
may, in limited circumstances, initiate a redemption from an
Invesco
IRA by telephone. Redemptions from Employer Sponsored
Retirement
and Benefit Plans and Employer Sponsored IRAs may be
initiated
only in writing and require the completion of the appropriate
distribution
form, as well as employer authorization. You must call the
Funds’
transfer agent before the Funds’ net asset value
determination
(as defined by the applicable Fund) in order to effect
the
redemption at that day’s net asset value. |
|
Automated
Investor Line |
Call
the Funds’ transfer agent’s 24-hour Automated Investor Line at
1-800-246-5463.
You may place your redemption order after you
have
provided the bank instructions that will be requested. |
|
By
Internet |
Place
your redemption request at www.invesco.com/us. You will be
allowed
to redeem by Internet if:
▪ You
can provide proper identification information;
▪ Your
redemption proceeds do not exceed $250,000 per Fund; and
▪ You
have already provided proper bank information.
Redemptions
from Employer Sponsored Retirement and Benefit
Plans
and Employer Sponsored IRAs may be initiated only in writing
and
require the completion of the appropriate distribution form, as
well
as employer authorization. |
|
*Class
R5 and R6 shares may only be redeemed through a financial intermediary or by
telephone
at (800) 959-4246. | |
Timing
and Method of Payment
The
Funds’ transfer agent typically expects to pay redemption proceeds to redeeming shareholders within one business day after a redemption
request is received in good order, regardless of the method a Fund uses to make such payment. However, a Fund may take up to seven days
to process a redemption request. “Good order” means that all necessary information and documentation related to the redemption
request have been provided to the Funds’ transfer agent or authorized intermediary, if applicable. If your request is not in good
order, the Funds’ transfer agent may require additional documentation in order to redeem your shares. If you redeem shares recently
purchased by check or ACH, you may be required to wait up to ten calendar days before your redemption proceeds are sent. This delay is
necessary to ensure that the purchase has cleared. You can avoid the check hold period if you pay for your shares with a certified check,
a cashier’s check or a federal wire. Payment may be postponed under unusual circumstances, as allowed by the SEC, such as when the
NYSE restricts or suspends trading.
In
addition, a temporary hold may be placed on the disbursement of redemption
proceeds from an account if there is a reasonable belief that financial exploitation of a Specified Adult (as defined below) has occurred,
is occurring, has been attempted, or will be attempted. Notice of such a delay will be provided in accordance with regulatory requirements.
This temporary hold will be for an initial period of no more than 15 business days while an internal review is performed. Should the internal
review support the belief that financial exploitation has occurred, is occurring, has been attempted or will be attempted, the temporary
hold may be extended for up to 10 additional business days. Both the initial and subsequent hold on the disbursement may be terminated
or extended by a state regulator or an agency or court of competent jurisdiction. For purposes of this paragraph, the term “Specified
Adult” refers to an individual who is (a) a natural person age 65 and older, or (b) a natural person age 18 and older who is reasonably
believed to have a mental or physical impairment that renders the individual unable to protect his or her own interests.
If
you redeem by telephone, the Funds’ transfer agent will transmit the amount
of redemption proceeds electronically to your pre-authorized bank account. Redemption checks are mailed to your address of record, via
first
A-13 The
Invesco Funds
class
U.S. mail, unless you make other arrangements with the Funds’ transfer agent.
The
Funds’ transfer agent uses reasonable procedures to confirm that instructions
communicated via telephone and the Internet are genuine, and the Funds and the Funds’ transfer agent are not liable for losses arising
from actions taken in accordance with instructions that are reasonably believed to be genuine.
A
Fund typically expects to use holdings of cash and cash equivalents and
sales of portfolio assets to meet redemption requests, both regularly and in stressed market conditions. The Funds also have the ability
to redeem in kind as further described below under “Redemptions in Kind.” Certain Funds have a line of credit,
as disclosed in such Funds’ principal investment strategy
and risk disclosures that may be used to meet redemptions in stressed market conditions.
Expedited
Redemptions (for Invesco Cash Reserve Shares of Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio only)
If
you place your redemption order by telephone, before 11:30 a.m. Eastern Time and request an expedited redemption, the Funds’ transfer
agent will transmit payment of redemption proceeds on that same day via federal wire to a bank of record on your account. If the Funds’
transfer agent receives your redemption order after 11:30 a.m. Eastern Time and before the close of the customary trading session of the
NYSE, it will transmit payment on the next business day.
Suspension
of Redemptions
The
right of redemption may be suspended or the date of payment postponed when (a) trading on the NYSE is restricted, as determined by applicable
rules and regulations of the SEC, (b) the NYSE is closed for other than customary weekend and holiday closings, (c) the SEC has by order
permitted such suspension, or (d) an emergency as determined by the SEC exists making disposition of portfolio securities or the valuation
of the net assets of the Fund not reasonably practicable. With respect to Invesco Government Money Market Fund, Invesco U.S. Government
Money Portfolio, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio, in the event that the Fund, at the end
of a business day, has invested less than 10% of its total assets in weekly liquid assets or, with respect to the retail and government
money market funds, the Fund’s price per share as computed for the purpose of distribution, redemption and repurchase, rounded to
the nearest 1%, has deviated from the stable price established by the Fund’s Board of Trustees (“Board”) or the Board,
including a majority of trustees who are not interested persons as defined in the 1940 Act, determines that such a deviation is likely
to occur, and the Board, including a majority of trustees who are not interested persons of the Fund, irrevocably has approved the liquidation
of the Fund, the Fund’s Board has the authority to suspend redemptions of Fund shares.
Liquidity
Fees and Redemption Gates
For
Invesco Premier Portfolio, if the Fund’s weekly liquid assets fall below 30% of its total assets, the Board, in its discretion,
may impose liquidity fees of up to 2% of the value of the shares redeemed and/or suspend redemptions (redemption gates). In addition,
if any such Fund’s weekly liquid assets falls below 10% of its total assets at the end of any business day, the Fund must impose
a 1% liquidity fee on shareholder redemptions unless the Board determines that not doing so is in the best interests of the Fund.
Liquidity
fees and redemption gates are most likely to be imposed, if at all,
during times of extraordinary market stress. In the event that a liquidity fee or redemption gate is imposed, the Board expects that for
the duration of its implementation and the day after which such gate or fee is terminated, the Fund would strike only one net asset value
per day, at the Fund’s last scheduled net asset value calculation time.
The
imposition and termination of a liquidity fee or redemption gate will be
reported by a Fund to the SEC on Form N-CR. Such information will also be available on the Fund’s website. In addition, a Fund will
communicate such action through a supplement to its registration statement and may further communicate such action through a press release
or by other means. If a liquidity fee is applied by the Board, it will be charged on all
redemption
orders submitted after the effective time of the imposition of the fee by the Board. Liquidity fees would reduce the amount you receive
upon redemption of your shares. In the event a Fund imposes a redemption gate, the Fund or any financial intermediary on its behalf will
not accept redemption requests until the Fund provides notice that the redemption gate has been terminated.
Redemption
requests submitted while a redemption gate is imposed will be cancelled
without further notice. If shareholders still wish to redeem their shares after a redemption gate has been lifted, they will need to submit
a new redemption request.
Liquidity
fees and redemption gates will generally be used to assist a Fund
to help preserve its market–based NAV per share. It is possible that a liquidity fee will be returned to shareholders in the form
of a distribution. The Board may, in its discretion, terminate a liquidity fee or redemption gate at any time if it believes such action
to be in the best interest of a Fund. Also, liquidity fees and redemption gates will automatically terminate at the beginning of the next
business day once a Fund’s weekly liquid assets reach at least 30% of its total assets. Redemption gates may only last up to 10
business days in any 90-day period. When a fee or a gate is in place, the Fund may elect not to permit the purchase of shares or to subject
the purchase of shares to certain conditions, which may include affirmation of the purchaser’s knowledge that a fee or a gate is
in effect. When a fee or a gate is in place, shareholders will not be permitted to exchange into or out of a Fund.
There
is some degree of uncertainty with respect to the tax treatment of liquidity
fees received by a Fund, and such tax treatment may be the subject to future IRS guidance. If a Fund receives liquidity fees, it will
consider the appropriate tax treatment of such fees to the Fund at such time.
Financial
intermediaries are required to promptly take the steps requested
by the Funds or their designees to impose or help to implement a liquidity fee or redemption gate as requested from time to time, including
the rejection of orders due to the imposition of a fee or gate or the prompt re-confirmation of orders following a notification regarding
the implementation of a fee or gate. If a liquidity fee is imposed, these steps are expected to include the submission of separate, rather
than combined, purchase and redemption orders from the time of the effectiveness of the liquidity fee or redemption gate and the submission
of such order information to the Fund or its designee prior to the next calculation of a Fund’s net asset value. Unless otherwise
agreed to between a Fund and financial intermediary, the Fund will withhold liquidity fees on behalf of financial intermediaries. With
regard to such orders, a redemption request that a Fund determines in its sole discretion has been received in good order by the Fund
or its designated agent prior to the imposition of a liquidity fee or redemption gate may be paid by the Fund despite the imposition of
a redemption gate or without the deduction of a liquidity fee. If a liquidity fee is imposed during the day, an intermediary who receives
both purchase and redemption orders from a single account holder is not required to net the purchase and redemption orders. However, the
intermediary is permitted to apply the liquidity fee to the net amount of redemptions (even if the purchase order was received prior to
the time the liquidity fee was imposed).
Where
a Financial Intermediary serves as a Fund’s agent for the purpose
of receiving orders, trades that are not transmitted to the Fund by the Financial Intermediary before the time required by the Fund or
the transfer agent may, in the Fund’s discretion, be processed on an as-of basis, and any cost or loss to the Fund or transfer agent
or their affiliates, from such transactions shall be borne exclusively by the Financial Intermediary.
Systematic
Withdrawals (Available for all classes except Class R5 and R6 shares)
You
may arrange for regular periodic withdrawals from your account in amounts equal to or greater than $50 per Fund. The Funds’ transfer
agent will redeem the appropriate number of shares from your account to provide redemption proceeds in the amount requested. You must
have a total account balance of at least $5,000 in order to establish a Systematic Redemption Plan, unless you are establishing a Required
Minimum
A-14 The
Invesco Funds
Distribution
for a Retirement and Benefit Plan. You can stop this plan at any time by giving ten days’ prior notice to the Funds’ transfer
agent.
Check
Writing
The
Funds’ transfer agent provides check writing privileges for accounts in the following Funds and share classes:
◾
Invesco
Government Money Market Fund, Invesco Cash Reserve Shares, Class AX shares, Class Y shares and Investor Class shares
◾
Invesco
U.S. Government Money Portfolio, Invesco Cash Reserve Shares and Class Y shares
◾
Invesco
Premier Portfolio, Investor Class shares
◾
Invesco
Premier U.S. Government Money Portfolio, Investor Class shares
You
may redeem shares of these Funds by writing checks in amounts of $250
or more if you have subscribed to the service by completing a Check Writing authorization form.
Check
writing privileges are not available for Retirement and Benefit Plans.
Checks are not eligible to be converted to ACH by the payee. You may not give authorization to a payee by phone to debit your account
by ACH for a debt owed to the payee.
If
you do not have a sufficient number of shares in your account to cover
the amount of the check and any applicable deferred sales charge, the check will be returned and no shares will be redeemed. Because it
is not possible to determine your account’s value in advance, you should not write a check for the entire value of your account
or try to close your account by writing a check.
A
check writing redemption request which is verifiably submitted to a Fund’s
agent before a liquidity fee or redemption gate is imposed will be considered a valid redemption and will be processed normally.
Signature
Guarantees
The
Funds’ transfer agent requires a signature guarantee in the following circumstances:
◾
When
your redemption proceeds exceed $250,000 per Fund.
◾
When
you request that redemption proceeds be paid to someone other than the registered owner of the account.
◾
When
you request that redemption proceeds be sent somewhere other than the address of record or bank of record on the account.
◾
When
you request that redemption proceeds be sent to a new address or an address that changed in the last 15 days.
The
Funds’ transfer agent will accept a guarantee of your signature by a number
of different types of financial institutions. Call the Funds’ transfer agent for additional information. Some institutions have
transaction amount maximums for these guarantees. Please check with the guarantor institution to determine whether the signature guarantee
offered will be sufficient to cover the value of your transaction request.
Redemptions
in Kind
Although
the Funds generally intend to pay redemption proceeds solely in cash, the Funds reserve the right to determine, in their sole discretion,
whether to satisfy redemption requests by making payment in securities or other property (known as a redemption in kind). Redemptions
in kind may result in transaction costs and/or market fluctuations associated with liquidating or holding the securities, respectively.
Purchases-in-Kind
You
may purchase shares of a Fund by transferring securities to a Fund in exchange for Fund shares (“in-kind purchases”). In-kind
purchases may be made only upon the Funds’ approval and determination that the securities are acceptable investments for the Fund
and are purchased consistent with the Fund’s procedures relating to in-kind purchases. The Funds reserve the right to amend or terminate
this practice at any time. You must call the Funds at (800) 959-4246 before sending any securities. Please see the SAI for additional
details.
Redemptions
by Large Shareholders
At
times, the Fund may experience adverse effects when certain large shareholders redeem large amounts of shares of the Fund. Large redemptions
may cause the Fund to sell portfolio securities at times when it would not otherwise do so. In addition, these transactions may also
accelerate
the realization of taxable income to shareholders (if applicable) if such sales of investments resulted in gains and may also increase
transaction costs and/or increase in the Fund’s expense ratio. When experiencing a redemption by a large shareholder, the Fund may
delay payment of the redemption request up to seven days to provide the investment manager with time to determine if the Fund can redeem
the request-in-kind or to consider other alternatives to lessen the harm to remaining shareholders. Under certain circumstances, however,
the Fund may be unable to delay a redemption request, which could result in the automatic processing of a large redemption that is detrimental
to the Fund and its remaining shareholders.
Redemptions
Initiated by the Funds
If
your account (Class A, C, P, S and Investor Class shares only) has been open at least one year, you have not made an additional purchase
in the account during the past six calendar months, and the value of your account falls below $500 for three consecutive months, the Funds
have the right to redeem the account after giving you 60 days’ prior written notice. You may avoid having your account redeemed
during the notice period by bringing the account value up to $500 or by initiating a Systematic Purchase Plan.
A
financial intermediary may have a different policy regarding redemptions
of accounts with small balances. The Fund is not responsible for any small account balance policies imposed by financial intermediaries
or for notifying shareholders of any changes to them. See “Waivers Available Through Certain Financial Intermediaries and Other
Financial Intermediary-Specific Arrangements” for more information on certain intermediary-specific small account balance policies.
Please consult with your financial intermediary if you have any questions regarding their policies.
If
a Fund determines that you have not provided a correct Social Security
or other tax identification number on your account application, or the Fund is not able to verify your identity as required by law, the
Fund may, at its discretion, redeem the account and distribute the proceeds to you.
In
order to separate retail investors (natural persons) and non-retail investors,
the Invesco Premier Portfolio reserve the right to redeem shares in any account that the Funds cannot confirm to their satisfaction are
beneficially owned by natural persons. The Funds will provide advance written notice of their intent to make any such involuntary redemptions.
The Funds reserve the right to redeem shares in any account that they cannot confirm to their satisfaction are beneficially owned by natural
persons, after providing advance notice.
Neither
a Fund nor its investment adviser will be responsible for any loss
in an investor’s account or tax liability resulting from an involuntary redemption.
Minimum
Account Balance (Available for all classes except Class R5 and R6 shares)
A
low balance fee of $12 per year may be deducted in the fourth quarter of each year from all accounts held in the Funds (each a Fund Account)
with a value less than the low balance amount (the Low Balance Amount) as determined from time to time by the Funds and the Adviser. The
Funds and the Adviser generally expect the Low Balance Amount to be $750, but such amount may be adjusted for any year depending on various
factors, including market conditions. The Low Balance Amount and the date on which it will be deducted from any Fund Account will be posted
on our website, www.invesco.com/us, on or about November 1 of each year. This fee will be payable to the Funds’ transfer agent by
redeeming from a Fund Account sufficient shares owned by a shareholder and will be used by the Funds’ transfer agent to offset amounts
that would otherwise be payable by the Funds to the Funds’ transfer agent under the Funds’ transfer agency agreement with
the Funds’ transfer agent. The low balance fee does not apply to participant accounts in advisory programs or to Employer Sponsored
Retirement and Benefit Plans.
Exchanging
Shares
You
may, under certain circumstances, exchange shares in one Fund for those of another Fund. An exchange is the purchase of shares in one
Fund which is paid for with the proceeds from a redemption of shares of another
A-15 The
Invesco Funds
Fund
effectuated on the same day. Any gain on the transaction may be subject to federal income tax. Accordingly, the procedures and processes
applicable to redemptions of Fund shares, as discussed under the heading “Redeeming Shares” above, will apply. Before requesting
an exchange, review the prospectus of the Fund you wish to acquire.
All
exchanges are subject to the limitations set forth in the prospectuses of
the Funds. If you wish to exchange shares of one Fund for those of another Fund, you must consult the prospectus of the Fund whose shares
you wish to acquire to determine whether the Fund is offering shares to new investors and whether you are eligible to acquire shares of
that Fund.
Permitted
Exchanges
Except
as otherwise provided herein or in the SAI, you generally may exchange your shares for shares of the same class of another Fund. The following
table shows generally permitted exchanges from one Fund to another Fund (exceptions listed below under “Exchanges Not Permitted”):
|
Exchange
From |
Exchange
To |
|
Invesco
Cash Reserve Shares |
Class
A, C, R, Investor Class |
|
| |
|
Class
A |
Class
A, Investor Class, Invesco Cash Reserve Shares* |
|
| |
|
Class
A2 |
Class
A, Investor Class, Invesco Cash Reserve Shares |
|
| |
|
Class
AX |
Class
A, AX, Investor Class, Invesco Cash Reserve Shares |
|
| |
|
Investor
Class |
Class
A, Investor Class |
|
| |
|
Class
P |
Class
A, Invesco Cash Reserve Shares |
|
| |
|
Class
S |
Class
A, S, Invesco Cash Reserve Shares |
|
| |
|
Class
C |
Class
C* |
|
| |
|
Class
CX |
Class
C, CX |
|
| |
|
Class
R |
Class
R* |
|
| |
|
Class
R5 |
Class
R5 |
|
| |
|
Class
R6 |
Class
R6 |
|
| |
|
Class
Y |
Class
Y* |
|
|
|
|
* You
may exchange Class Y shares of Invesco U.S. Government Money Portfolio for Class A, C
or
R shares of any other Fund as long as you are otherwise eligible for such share class. If you
exchange
Class Y shares of Invesco U.S. Government Money Portfolio for Class A, C or R shares
of
any other Fund, you may exchange those Class A, C or R shares back into Class Y shares of
Invesco
U.S. Government Money Portfolio, but not Class Y shares of any other Fund. | |
Exchanges
into Invesco Senior Loan Fund
Invesco
Senior Loan Fund is a closed-end interval fund that continuously offers its shares pursuant to the terms and conditions of its prospectus.
The Adviser is the investment adviser for the Invesco Senior Loan Fund. As with the Invesco Funds, you generally may exchange your shares
of Class A (Invesco Cash Reserve Shares of Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio) or Class
C of any Invesco Fund for shares of Class A or Class C, respectively, of Invesco Senior Loan Fund. Please refer to the prospectus for
the Invesco Senior Loan Fund for more information, including limitations on exchanges out of Invesco Senior Loan Fund.
Exchanges
Not Permitted
The
following exchanges are not permitted:
◾
Investor
Class shares cannot be exchanged for Class A shares of any Fund which offers Investor Class shares.
◾
Class A2
shares of Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund cannot be exchanged for Class A shares
of those Funds.
◾
Invesco
Cash Reserve Shares cannot be exchanged for Class C or R shares if the shares being exchanged were acquired by exchange from Class A
shares of any Fund.
◾
All
existing systematic exchanges and reallocations will cease and these options will no longer be available on all 403(b) prototype plans.
◾
Class
A, C or R shares of a Fund acquired by exchange of Class Y shares of Invesco U.S. Government Money Portfolio cannot be exchanged for Class
Y shares of any Fund, except Class Y shares of Invesco U.S. Government Money Portfolio.
Exchange
Conditions
Shares
must have been held for at least one day prior to the exchange with the exception of dividends and distributions that are reinvested.
Under
unusual market conditions, a Fund may delay the exchange of shares
for up to five business days if it determines that it would be materially disadvantaged by the immediate transfer of exchange proceeds.
The exchange privilege is not an option or right to purchase shares. Any of the participating Funds or the distributor may modify or terminate
this privilege at any time.
Initial
Sales Charges, CDSCs and 12b-1 Fees Applicable to Exchanges
You
may be required to pay an initial sales charge when exchanging from a Fund with a lower initial sales charge than the one into which you
are exchanging. If you exchange into shares that are subject to a CDSC, the Funds’ transfer agent will begin the holding period
for purposes of calculating the CDSC on the date you made your initial purchase.
In
addition, as a result of differences in the forms of distribution plans among
the Funds, certain exchanges of Class A shares, Class C shares, and Class R shares of a Fund for the same class of shares of another Fund
may result in investors paying a higher or a lower 12b-1 fee on the Fund being exchanged into. Please refer to the prospectus fee table
and financial highlights table and the SAI for more information on the fees and expenses, including applicable 12b-1 fees, of the Fund
you wish to acquire.
Share
Class Conversions
Shares
of one class of a Fund may be converted into shares of another class of the same Fund, provided that you are eligible to buy that share
class. Investors who hold Fund shares through a financial intermediary that does not have an agreement to make certain share classes of
the Funds available or that cannot systematically support the conversion may not be eligible to convert their shares. Furthermore, your
financial intermediary may have discretion to effect a conversion on your behalf. Consult with your financial intermediary for details.
Any CDSC associated with the converting shares will be assessed immediately prior to the conversion to the new share class. The conversion
of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes and no gain
or loss will be reported on the transaction. See the applicable prospectus for share class information.
Fees
and expenses differ between share classes. You should read the prospectus
for the share class into which you are seeking to convert your shares prior to the conversion.
Automatic
Conversion of Class C and Class CX Shares
Class
C and Class CX shares held for eight years after purchase are eligible for automatic conversion into Class A and Class AX shares of the
same Fund, respectively, except that for the Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio, the Funds’
Class C and/or Class CX shares would be eligible to automatically convert into the Fund’s Invesco Cash Reserve Share Class and all
existing Class C shares of Invesco Short Term Municipal Fund will automatically convert to Class A shares of that Fund at the end of June
2022 (the Conversion Feature). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month
following the eighth anniversary after a purchase of Class C or Class CX shares (the Conversion Date). The first conversion of Class C
and Class CX shares to Class A and Class AX shares under this policy would occur at the end of December 2020 for all Class C and Class
CX shares that were held for more than eight years as of November 30, 2020.
Automatic
conversions pursuant to the Conversion Feature will be on the basis
of the NAV per share, without the imposition of any sales charge (including a CDSC), fee or other charge. All such automatic conversions
of Class C and Class CX shares will constitute tax-free exchanges for federal income tax purposes.
Class
C and Class CX shares of a Fund acquired through a reinvestment of
dividends and distributions will convert to Class A and Class AX shares, respectively, of the Fund (or Invesco Cash Reserve shares for
Invesco
A-16 The
Invesco Funds
Government
Money Market Fund) on the Conversion Date pro rata with the converting Class C and Class CX shares of that Fund that were not acquired
through reinvestment of dividends and distributions.
Class
C or Class CX shares held through a financial intermediary in existing
omnibus Employer Sponsored Retirement and Benefit Plans and other omnibus accounts may be converted pursuant to the Conversion Feature
by the financial intermediary once it is determined that the Class C or Class CX shares have been held for the required holding period.
It is the financial intermediary’s (and not the Fund’s) responsibility to keep records and to ensure that the shareholder
is credited with the proper holding period as the Fund and its agents may not have transparency into how long a shareholder has held Class
C or Class CX shares for purposes of determining whether such Class C or Class CX shares are eligible to automatically convert pursuant
to the Conversion Feature. In order to determine eligibility for automatic conversion in these circumstances, it is the responsibility
of the shareholder or their financial intermediary to determine that the shareholder is eligible to exercise the Conversion Feature, and
the shareholder or their financial intermediary may be required to maintain records that substantiate the holding period of Class C or
Class CX shares.
In
addition, a financial intermediary may sponsor and/or control programs
or platforms that impose a different conversion schedule or eligibility requirements for conversions of Class C or Class CX shares. In
these cases, Class C and Class CX shares of certain shareholders may not be eligible for automatic conversion pursuant to the Conversion
Feature as described above. The Fund has no responsibility for overseeing, monitoring or implementing a financial intermediary’s
process for determining whether a shareholder meets the required holding period for automatic conversion. Please consult with your financial
intermediary if you have any questions regarding the Conversion Feature.
Share
Class Conversions Not Permitted
The
following share class conversions are not permitted:
◾
Conversions
into Class A from Class A2 of the same Fund.
◾
Conversions
into Class A2, Class AX, Class CX, Class P or Class S of the same Fund.
Rights
Reserved by the Funds
Each
Fund and its agents reserve the right at any time to:
◾
Reject
or cancel all or any part of any purchase or exchange order.
◾
Modify
any terms or conditions related to the purchase, redemption or exchange of shares of any Fund.
◾
Reject
or cancel any request to establish a Systematic Purchase Plan or Systematic Redemption Plan.
◾
Modify
or terminate any sales charge waivers or exceptions.
◾
Suspend,
change or withdraw all or any part of the offering made by this prospectus.
Excessive
Short-Term Trading Activity (Market Timing) Disclosures
While
the Funds provide their shareholders with daily liquidity, their investment programs are designed to serve long-term investors and are
not designed to accommodate excessive short-term trading activity in violation of our policies described below. Excessive short-term trading
activity in the Funds’ shares (i.e., a purchase of Fund shares followed shortly thereafter by a redemption of such shares, or vice
versa) may hurt the long-term performance of certain Funds by requiring them to maintain an excessive amount of cash or to liquidate portfolio
holdings at a disadvantageous time, thus interfering with the efficient management of such Funds by causing them to incur increased brokerage
and administrative costs. Where excessive short-term trading activity seeks to take advantage of arbitrage opportunities from stale prices
for portfolio securities, the value of Fund shares held by long-term investors may be diluted. The Board has adopted policies and procedures
designed to discourage excessive or short-term trading of Fund shares for all Funds except the money market funds, Invesco Conservative
Income Fund, and Invesco Short Term Municipal Fund. However, there is the risk that these Funds’ policies and procedures will prove
ineffective in whole or in part to detect or prevent excessive or
short-term
trading. These Funds may alter their policies at any time without prior notice to shareholders if the Adviser believes the change would
be in the best interests of long-term shareholders.
Invesco
and certain of its corporate affiliates (Invesco and such affiliates,
collectively, the Invesco Affiliates) currently use the following tools designed to discourage excessive short-term trading in the retail
Funds:
◾
Trade
activity monitoring.
◾
Discretion
to reject orders.
◾
Purchase
blocking.
◾
The
use of fair value pricing consistent with the valuation policy approved by the Board and related procedures.
Each
of these tools is described in more detail below. Although these tools
are designed to discourage excessive short-term trading, you should understand that none of these tools alone nor all of them taken together
eliminate the possibility that excessive short-term trading activity in the Funds will occur. Moreover, each of these tools involves judgments
that are inherently subjective. Invesco Affiliates seek to make these judgments to the best of their abilities in a manner that they believe
is consistent with long-term shareholder interests.
Money
Market Funds. The Boards of Invesco Government Money Market Fund,
Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio (the money market
funds) have not adopted any policies and procedures that would limit frequent purchases and redemptions of such Funds’ shares. The
Boards of the money market funds considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal. Nonetheless, to the extent that a money market fund must maintain additional cash and/or
securities with short-term durations in greater amounts than may otherwise be required or borrow to honor redemption requests, the money
market fund’s yield could be negatively impacted.
The
Boards of the money market funds do not believe that it is appropriate
to adopt any such policies and procedures for the money market funds for the following reasons:
◾
The
money market funds are offered to investors as cash management vehicles; therefore, investors should be able to purchase and redeem shares
regularly and frequently.
◾
One
of the advantages of a money market fund as compared to other investment options is liquidity. Any policy that diminishes the liquidity
of the money market funds will be detrimental to the continuing operations of such Funds.
◾
With
respect to the money market funds maintaining a constant net asset value, the money market funds’ portfolio securities are valued
on the basis of amortized cost, and such Funds seek to maintain a constant net asset value. As a result, the money market funds are not
subject to price arbitrage opportunities.
◾
With
respect to the money market funds maintaining a constant net asset value, because such Funds seek to maintain a constant net asset value,
investors are more likely to expect to receive the amount they originally invested in the Funds upon redemption than other mutual funds.
Invesco
Conservative Income Fund. The Board of Invesco Conservative Income
Fund has not adopted any policies and procedures that would limit frequent purchases and redemptions of such Fund’s shares. The
Board of Invesco Conservative Income Fund considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal especially in light of the reasons for not having such a policy as described below. Nonetheless,
to the extent that the Fund must maintain additional cash and/or securities with short-term durations in greater amounts than may otherwise
be required or borrow to honor redemption requests, the Fund’s yield could be negatively impacted.
The
Board of the Invesco Conservative Income Fund does not believe that
it is appropriate to adopt any such policies and procedures for the Fund for the following reasons:
◾
The
Fund is offered to investors as a cash management vehicle; investors perceive an investment in the Fund as an alternative to cash and
must be able to purchase and redeem shares regularly and frequently.
A-17 The
Invesco Funds
◾
One
of the advantages of the Fund as compared to other investment options is liquidity. Any policy that diminishes the liquidity of the Fund
will be detrimental to the continuing operations of the Fund.
Excessive
trading activity in the Fund’s shares may cause the Fund to incur
increased brokerage and administrative costs.
The
Fund and its agent reserve the right at any time to reject or cancel any
part of any purchase order. This could occur if the Fund determines that such purchase may disrupt the Fund’s operation or performance.
Invesco
Short Term Municipal Fund. The Board of Invesco Short Term Municipal
Fund has not adopted any policies and procedures that would limit frequent purchases and redemptions of such Fund’s shares. The
Board of Invesco Short Term Municipal Fund considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal, especially in light of the reasons for not having such a policy as described below. Nonetheless,
to the extent that the Fund must maintain additional cash and/or securities with short-term durations in greater amounts than may otherwise
be required or borrow to honor redemption requests, the Fund’s yield could be negatively impacted.
The
Board of Invesco Short Term Municipal Fund does not believe that it is
appropriate to adopt any such policies and procedures for the Fund for the following reasons:
◾
The
Fund is designed to address the needs of retail investors who seek liquidity in their investment and seek the ability to purchase and
redeem shares at any time.
◾
Any
policy that diminishes the ability of shareholders to purchase and redeem shares of the Fund will be detrimental to the continuing operations
of the Fund.
◾
The
Fund generally invests in short duration liquid investment grade municipal securities.
Excessive
trading activity in the Fund’s shares may cause the Fund to incur
increased brokerage and administrative costs. The Fund and its agent reserve the right at any time to reject or cancel any part of any
purchase order. This could occur if the Fund determines that such purchase may disrupt the Fund’s operation or performance.
Trade
Activity Monitoring
Invesco
Affiliates monitor selected trades on a daily basis in an effort to detect excessive short-term trading activities. If, as a result of
this monitoring, Invesco Affiliates believe that a shareholder has engaged in excessive short-term trading, they will seek to act in a
manner that they believe is consistent with the best interests of long-term investors, which may include taking steps such as (i) asking
the shareholder to take action to stop such activities or (ii) refusing to process future purchases or exchanges related to such activities
in the shareholder’s accounts other than exchanges into a money market fund. Invesco Affiliates will use reasonable efforts to apply
the Funds’ policies uniformly given the practical limitations described above.
The
ability of Invesco Affiliates to monitor trades that are made through accounts
that are maintained by intermediaries (rather than the Funds’ transfer agent) and through conduit investment vehicles may be limited
or non-existent.
Discretion
to Reject Orders
If
a Fund or an Invesco Affiliate determines, in its sole discretion, that your short-term trading activity is excessive, the Fund may, in
its sole discretion, reject any additional purchase and exchange orders. This discretion may be exercised with respect to purchase or
exchange orders placed directly with the Funds’ transfer agent or through a financial intermediary.
Purchase
Blocking Policy
The
Funds (except those listed below) have adopted a policy under which any shareholder redeeming shares having a value of $50,000 or more
from a Fund on any trading day will be precluded from investing in that Fund for 30 calendar days after the redemption transaction date.
The policy applies to redemptions and purchases that are part of exchange transactions. Under the purchase blocking policy, certain purchases
will not be prevented and certain redemptions will not trigger a purchase block, such as: purchases
and redemptions
of shares having a value of less than $50,000; systematic purchase, redemption and exchange account options; transfers of shares within
the same Fund; non-discretionary rebalancing in fund-of-funds; asset allocation features; fee-based accounts; account maintenance fees;
small balance account fees; plan-level omnibus Retirement and Benefit Plans; death and disability and hardship distributions; loan transactions;
transfers of assets; Retirement and Benefit Plan rollovers; IRA conversions and re-characterizations; and mandatory distributions from
Retirement and Benefit Plans.
The
Funds reserve the right to modify any of the parameters (including those
not listed above) of the purchase blocking policy at any time. Further, the purchase blocking policy may be waived with respect to specific
shareholder accounts in those instances where the Adviser determines that its surveillance procedures are adequate to detect frequent
trading in Fund shares.
If
an account is maintained by a financial intermediary whose systems are
unable to apply Invesco’s purchase blocking policy, the Adviser will accept the establishment of an account only if the Adviser
believes the policies and procedures are reasonably designed to enforce the frequent trading policies of the Funds. You should refer to
disclosures provided by the financial intermediary with which you have an account to determine the specific trading restrictions that
apply to you. If the Adviser identifies any activity that may constitute frequent trading, it reserves the right to contact the intermediary
and request that the intermediary either provide information regarding an account owner’s transactions or restrict the account owner’s
trading. There is no guarantee that all instances of frequent trading in Fund shares will be prevented.
The
purchase blocking policy does not apply to Invesco Conservative Income
Fund, Invesco Short Term Municipal Fund, Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government
Money Portfolio and Invesco U.S. Government Money Portfolio.
Pricing
of Shares
Determination
of Net Asset Value
The
price of each Fund’s shares is the Fund’s net asset value per share. The Funds (except Invesco Government Money Market Fund,
Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio) value portfolio
securities for which market quotations are readily available at market value. Securities and other assets quoted in foreign currencies
are valued in U.S. dollars based on the prevailing exchange rates on that day. The Funds (except Invesco Government Money Market Fund,
Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio) value securities
and assets for which market quotations are unavailable at their “fair value,” which is described below. Invesco Government
Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio
value portfolio securities on the basis of amortized cost, which approximates market value. This method of valuation is designed to enable
a Fund to price its shares at $1.00 per share. The Funds cannot guarantee their net asset value will always remain at $1.00 per share.
Securities and other assets quoted in foreign currencies are valued in U.S. dollars based on the prevailing exchange rates on that day.
The Fund values securities and assets for which market quotations are unavailable at their “fair value,” which is described
below.
Even
when market quotations are available, they may be stale or not
representative of market value in the Adviser’s judgment (“unreliable”)
because the security is not traded frequently, trading on the security
ceased before the close of the trading market or issuer specific events occurred after the security ceased trading or because of the passage
of time between the close of the market on which the security trades and the close of the NYSE and when the Fund calculates its net asset
value. Issuer specific events may cause the last market quotation to be unreliable. Such events may include a merger or insolvency, events
that affect a geographical area or an industry segment, such as political events or natural disasters, or market events, such as a significant
movement in the U.S. market. Where
A-18 The
Invesco Funds
the Adviser
determines that the closing price of the security is stale or unreliable, the Adviser will value the security at its fair value.
A
fair value price is an estimated price that requires consideration of all appropriate factors, including indications of fair value available
from pricing services. Fair value pricing involves judgment and a Fund that uses fair value methodologies may value securities higher
or lower than another Fund using market quotations or its own fair value methodologies to price the same securities. Investors who purchase
or redeem Fund shares on days when the Fund is holding fair-valued securities may receive a greater or lesser number of shares, or higher
or lower redemption proceeds, than they would have received if the Fund had not fair-valued the security or had used a different methodology.
The
Board has designated the Adviser to perform the daily determination
of fair value prices in accordance with Board approved
policies and related procedures,
subject to the Board’s oversight. Fair value pricing methods
and pricing services can change from time to time.
The
intended effect of applying fair value pricing is to compute an NAV that
accurately reflects the value of a Fund’s portfolio at the time that the NAV is calculated. An additional intended effect is to
discourage those seeking to take advantage of arbitrage opportunities resulting from “stale” prices and to mitigate the dilutive
impact of any such arbitrage. However, the application of fair value pricing cannot eliminate the possibility that arbitrage opportunities
will exist.
Specific
types of securities are valued as follows:
Senior
Secured Floating Rate Loans and Senior Secured Floating Rate Debt
Securities. Senior secured floating rate loans and senior secured
floating rate debt securities are fair valued using evaluated quotes provided by an independent pricing service. Evaluated quotes provided
by the pricing service may reflect appropriate factors such as market quotes, ratings, tranche type, industry, company performance, spread,
individual trading characteristics, institution-size trading in similar groups of securities and other market data.
Domestic
Exchange Traded Equity Securities. Market quotations are generally
available and reliable for domestic exchange traded equity securities. If market quotations are not available or are unreliable, the Adviser
will value the security at fair value in good faith using the valuation policy approved by the Board and related procedures.
Foreign
Securities. If market quotations are available and reliable for
foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign
securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular
security and the close of the customary trading session on the NYSE events occur that are significant and may make the closing price unreliable,
the Fund may fair value the security. If an issuer specific event has occurred that the Adviser determines, in its judgment, is likely
to have affected the closing price of a foreign security, it will price the security at fair value. The Adviser also relies on a screening
process from a pricing vendor to indicate the degree of certainty, based on historical data, that the closing price in the principal market
where a foreign security trades is not the current market value as of the close of the NYSE. For foreign securities where the Adviser
believes, at the approved degree of certainty, that the price is not reflective of current market value, the Adviser will use the indication
of fair value from the pricing service to determine the fair value of the security. The pricing vendor, pricing methodology or degree
of certainty may change from time to time.
Fund
securities primarily traded on foreign markets may trade on days that
are not business days of the Fund. Because the net asset value of Fund shares is determined only on business days of the Fund, the value
of the portfolio securities of a Fund that invests in foreign securities may change on days when you will not be able to purchase or redeem
shares of the Fund.
Fixed
Income Securities. Fixed income securities, such as government,
corporate, asset-backed and municipal bonds, convertible securities, including high yield or junk bonds, and loans, generally are valued
on the basis of prices provided by independent pricing services. Prices provided by the pricing services may be determined without exclusive
reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in
similar
groups of securities, developments related to special securities, dividend rate, maturity and other market data. Pricing services generally
value fixed income securities assuming orderly transactions of institutional round lot size, but a Fund may hold or transact in the same
securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Prices received from pricing
services are fair value prices. In addition, if the price provided by the pricing service and independent quoted prices are unreliable,
the Adviser will fair value the security using the valuation policy approved by the Board and related procedures.
Short-term
Securities. Invesco Government Money Market Fund, Invesco Premier
Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio value all their securities at amortized
cost. Invesco Limited Term Municipal Income Fund values variable rate securities that have an unconditional demand or put feature exercisable
within seven days or less at par, which reflects the market value of such securities.
Futures
and Options. Futures contracts are valued at the final settlement
price set by the exchange on which they are principally traded. U.S.
exchange-traded options are valued at the mean between the last
bid and asked prices from the exchange on which they principally trade. Non-U.S. exchange-traded options are valued at the final settlement
price set by
the exchange on which they trade. Options not listed on an exchange and swaps generally are valued using pricing provided from independent
pricing services.
Swap
Agreements. Swap Agreements are fair valued using an evaluated
quote provided by an independent pricing service. Evaluated quotes provided by the pricing service are based on a model that may include
end of day net present values, spreads, ratings, industry and company performance.
Open-end
Funds. If a Fund invests in other open-end funds, other than open-end
funds that are exchange traded, the investing Fund will calculate its net asset value using the net asset value of the underlying fund
in which it invests, and the prospectuses for such open-end funds explain the circumstances under which they will use fair value pricing
and the effects of using fair value pricing.
Each
Fund, except for Invesco Government Money Market Fund, Invesco Premier
Portfolio and Invesco Premier U.S. Government Money Portfolio, generally determines the net asset value of its shares on each day the
NYSE is open for trading (a business day) as of approximately 4:00 p.m. Eastern Time (the customary close of regular trading) or earlier
in the case of a scheduled early close. In the event of an unscheduled early close of the NYSE, each Fund, except for Invesco Government
Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio, generally still will determine the net
asset value of its shares as of 4:00 p.m. Eastern Time on that business day. Portfolio securities traded on the NYSE would be valued at
their closing prices unless the Adviser determines
that a “fair value” adjustment is appropriate due to subsequent events occurring after an early close consistent with the
valuation policy approved
by the Board and related procedures. Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government
Money Portfolio will generally determine the net asset value of their shares at 5:30 p.m. Eastern Time on each business day. A business
day for Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio is any day
that (1) both the Federal Reserve Bank of New York and a Fund’s custodian are open for business and (2) the primary trading markets
for the Fund’s portfolio instruments are open and the Fund’s management believes there is an adequate market to meet purchase
and redemption requests. Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money
Portfolio are authorized not to open for trading on a day that is otherwise a business day if the Securities Industry and Financial Markets
Association (SIFMA) recommends that government securities dealers not open for trading; any such day will not be considered a business
day. Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio, Invesco
U.S. Government Money Portfolio also may close early on a business day if SIFMA recommends that government securities dealers close early.
If
A-19 The
Invesco Funds
Invesco
Government Money Market Fund, Invesco Premier Portfolio or Invesco Premier U.S. Government Money Portfolio uses its discretion to
close early on a business day, the Fund will calculate its net asset value as of the time of such closing Invesco Premier Portfolio and
Invesco U.S. Government Money Portfolio are authorized to not open for trading on a day that is otherwise a business day if the NYSE recommends
that government securities dealers not open for trading; any such day will not be considered a business day. Invesco Premier Portfolio
also may close early on a business day if the NYSE recommends that government securities dealers close early.
For
financial reporting purposes and shareholder transactions on the last
day of the fiscal quarter, transactions are normally accounted for on a trade date basis. For purposes of executing shareholder transactions
in the normal course of business (other than shareholder transactions at a fiscal period-end), each Fund’s portfolio securities
transactions are recorded no later than the first business day following the trade date.
The
Invesco Advantage International Fund, Invesco Balanced-Risk Allocation
Fund, Invesco Balanced-Risk Commodity Strategy Fund, Invesco Fundamental Alternatives Fund, Invesco Global Allocation Fund, Invesco Global
Strategic Income Fund, Invesco Gold & Special Minerals Fund, Invesco High Yield Bond Factor Fund, Invesco International Bond Fund
and Invesco Macro Allocation Strategy Fund may each invest up to 25% of their total assets in shares of their respective subsidiaries
(the Subsidiaries). The Subsidiaries offer to redeem all or a portion of their shares at the current net asset value per share every regular
business day. The value of shares of the Subsidiaries will fluctuate with the value of the respective Subsidiary’s portfolio investments.
The Subsidiaries price their portfolio investments pursuant to the same pricing and valuation methodologies and procedures used by the
Funds, which require, among other things, that each of the Subsidiaries’ portfolio investments be marked-to-market (that is, the
value on each of the Subsidiaries’ books changes) each business day to reflect changes in the market value of the investment.
Each
Fund’s current net asset value per share is made available on the Funds’
website at www.invesco.com/us.
Fair
Value Pricing
Securities
owned by a Fund (except Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio
and Invesco U.S. Government Money Portfolio) are to be valued at current market value if market quotations are readily available. All
other securities and assets of a Fund for which market quotations are not readily available are to be valued at fair value determined
in good faith consistent with the valuation policy approved by the Board and related procedures. An effect of fair value pricing may be
to reduce the ability of frequent traders to take advantage of arbitrage opportunities resulting from potentially “stale”
prices of portfolio holdings. However, it cannot eliminate the possibility of frequent trading.
The
price a Fund could receive upon the sale of any investment may differ
from the Adviser's valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair
valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions
(i.e., publicly traded company multiples, growth rate, time to exit), to determine a methodology that will result in a valuation that
the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value
from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and
the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the
investment.
Timing
of Orders
Each
Fund prices purchase, exchange and redemption orders at the net asset value next calculated by the Fund after the Fund’s transfer
agent, authorized agent or designee receives an order in good order for the Fund. Purchase, exchange and redemption orders must be received
prior to the close of business on a business day, as defined by the applicable Fund, to receive that day’s net asset value. Any
applicable sales charges are applied at the time an order is processed.
Currently,
certain financial intermediaries may serve as agents for the Funds
and accept orders on their behalf. Where a financial intermediary serves as agent, the order is priced at the Fund’s net asset value
next calculated after it is accepted by the financial intermediary. In such cases, if requested by a Fund, the financial intermediary
is responsible for providing information with regard to the time that such order for purchase, redemption or exchange was received. Orders
submitted through a financial intermediary that has not received authorization to accept orders on a Fund’s behalf are priced at
the Fund’s net asset value next calculated by the Fund after it receives the order from the financial intermediary and accepts it,
which may not occur on the day submitted to the financial intermediary.
Additional
Information Regarding Deferred Tax Liability (only applicable to the Invesco Steelpath Funds)
In
calculating the Fund’s daily NAV, the Fund will, among other things, account for its deferred tax liability and/or asset balances.
As a result, any deferred tax liability and/or asset is reflected in the Fund’s daily NAV.
The
Fund will accrue a deferred income tax liability balance, at the U.S. federal
corporate income tax rate plus an estimated state and local income tax rate for its future tax liability associated with MLP distributions
considered to be a return of capital, as well as for its future tax liability associated with the capital appreciation of its investments.
The Fund’s current and deferred tax liability, if any, will depend upon the Fund’s net investment gains and losses and realized
and unrealized gains and losses on investments and therefore may vary greatly from year to year depending on the nature of the Fund’s
investments, the performance of those investments and general market conditions. Any deferred tax liability balance will reduce the Fund’s
NAV. Upon the Fund’s sale of an MLP security, the Fund may be liable for previously deferred taxes.
The
Fund will accrue, in accordance with generally accepted accounting principles,
a deferred tax asset balance, which reflects an estimate of the Fund’s future tax benefit associated with net operating losses and
unrealized losses. Any deferred tax asset balance will increase the Fund’s NAV. To the extent the Fund has a deferred tax asset
balance, the Fund will assess, in accordance with generally accepted accounting principles, whether a valuation allowance, which would
offset the value of some or all of the Fund’s deferred tax asset balance, is required. Pursuant to Financial Accounting Standards
Board Accounting Standards Codification 740 (FASB ASC 740), the Fund will assess a valuation allowance to reduce some or all of the deferred
tax asset balance if, based on the weight of all available evidence, both negative and positive, it is more likely than not that some
or all of the deferred tax asset will not be realized. The Fund will use judgment in considering the relative impact of negative and positive
evidence. The weight given to the potential effect of negative and positive evidence will be commensurate with the extent to which such
evidence can be objectively verified. The Fund’s assessment considers, among other matters, the nature, frequency and severity of
current and cumulative losses, the duration of statutory carry forward periods and the associated risk that operating loss and capital
loss carry forwards may be limited or expire unused, and unrealized gains and losses on investments. Consideration is also given to market
cycles, the severity and duration of historical deferred tax assets, the impact of redemptions, and the level of MLP distributions. The
Fund will assess whether a valuation allowance is required to offset some or all of any deferred tax asset in connection with the calculation
of the Fund’s NAV per share each day; however, to the extent the final valuation allowance differs from the estimates the Fund used
in calculating the Fund’s daily NAV, the application of such final valuation allowance could have a material impact on the Fund’s
NAV.
The
Fund’s deferred tax asset and/or liability balances are estimated using
estimates of effective tax rates expected to apply to taxable income in the years such balances are realized. The Fund will rely to some
extent on information provided by MLPs in determining the extent to which distributions received from MLPs constitute a return of capital,
which may not be provided to the Fund on a timely basis, to estimate the Fund’s deferred tax liability and/or asset balances for
purposes of financial statement reporting and determining its NAV. If such information is not
A-20 The
Invesco Funds
received
from such MLPs on a timely basis, the Fund will estimate the extent to which distributions received from MLPs constitute a return of capital
based on average historical tax characterization of distributions made by MLPs. The Fund’s estimates regarding its deferred tax
liability and/or asset balances are made in good faith; however, the daily estimate of the Fund’s deferred tax liability and/or
asset balances used to calculate the Fund’s NAV could vary dramatically from the Fund’s actual tax liability. Actual income
tax expense, if any, will be incurred over many years, depending on if and when investment gains and losses are realized, the then-current
basis of the Fund’s assets and other factors. As a result, the determination of the Fund’s actual tax liability may have a
material impact on the Fund’s NAV. The Fund’s daily NAV calculation will be based on then current estimates and assumptions
regarding the Fund’s deferred tax liability and/or asset balances and any applicable valuation allowance, based on all information
available to the Fund at such time. From time to time, the Fund may modify its estimates or assumptions regarding its deferred tax liability
and/or asset balances and any applicable valuation allowance as new information becomes available. Modifications of the Fund’s estimates
or assumptions regarding its deferred tax liability and/or asset balances and any applicable valuation allowance, changes in generally
accepted accounting principles or related guidance or interpretations thereof, limitations imposed on net operating losses (if any) and
changes in applicable tax law could result in increases or decreases in the Fund’s NAV per share, which could be material.
Taxes
(applicable to all Funds except for the Invesco SteelPath Funds and Invesco Master Loan Fund)
A
Fund intends to qualify each year as a regulated investment company (RIC) and, as such, is not subject to entity-level tax on the income
and gain it distributes to shareholders. If you are a taxable investor, dividends and distributions you receive from a Fund generally
are taxable to you whether you reinvest distributions in additional Fund shares or take them in cash. Every year, you will be sent information
showing the amount of dividends and distributions you received from a Fund during the prior calendar year. In addition, investors in taxable
accounts should be aware of the following basic tax points as supplemented below where relevant:
Fund Tax
Basics
◾
A
Fund earns income generally in the form of dividends or interest on its investments. This income, less expenses incurred in the operation
of a Fund, constitutes the Fund’s net investment income from which dividends may be paid to you. If you are a taxable investor,
distributions of net investment income generally are taxable to you as ordinary income.
◾
Distributions
of net short-term capital gains are taxable to you as ordinary income. A Fund with a high portfolio turnover rate (a measure of how frequently
assets within a Fund are bought and sold) is more likely to generate short-term capital gains than a Fund with a low portfolio turnover
rate.
◾
Distributions
of net long-term capital gains are taxable to you as long-term capital gains no matter how long you have owned your Fund shares.
◾
A
portion of income dividends paid by a Fund to you may be reported as qualified dividend income eligible for taxation by individual shareholders
at long-term capital gain rates, provided certain holding period requirements are met. These reduced rates generally are available for
dividends derived from a Fund’s investment in stocks of domestic corporations and qualified foreign corporations. In the case of
a Fund that invests primarily in debt securities, either none or only a nominal portion of the dividends paid by the Fund will be eligible
for taxation at these reduced rates.
◾
The
use of derivatives by a Fund may cause the Fund to realize higher amounts of ordinary income or short-term capital gain, distributions
from which are taxable to individual shareholders at ordinary income tax rates rather than at the more favorable tax rates for long-term
capital gain.
◾
Distributions
declared to shareholders with a record date in October, November or December—if paid to you by the end of January—are taxable
for federal income tax purposes as if received in December.
◾
Any
long-term or short-term capital gains realized on the sale or redemption of your Fund shares will be subject to federal income tax. For
tax
purposes an exchange of your shares for shares of another Fund is the same as a sale. An exchange occurs when the purchase of shares of
a Fund is made using the proceeds from a redemption of shares of another Fund and is effectuated on the same day as the redemption. Your
gain or loss is calculated by subtracting from the gross proceeds your cost basis. Gross proceeds and, for shares acquired on or after
January 1, 2012 and disposed of after that date, cost basis will be reported to you and the Internal Revenue Service (IRS). Cost
basis will be calculated using the Fund’s default method of average cost, unless you instruct the Fund to use a different calculation
method. As a service to you, the Fund will continue to provide to you (but not the IRS) cost basis information for shares acquired before
2012, when available, using the average cost method. Shareholders should carefully review the cost basis information provided by a Fund
and make any additional basis, holding period or other adjustments that are required when reporting these amounts on their federal income
tax returns. If you hold your Fund shares through a broker (or other nominee), please contact that broker (nominee) with respect to reporting
of cost basis and available elections for your account. For more information about the cost basis methods offered by Invesco, please refer
to the Tax Center located under the Account Access & Forms menu of our website at www.Invesco.com/us.
◾
The
conversion of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes
and no gain or loss will be reported on the transaction. This is true whether the conversion occurs automatically pursuant to the terms
of the class or is initiated by the shareholder.
◾
At
the time you purchase your Fund shares, the Fund’s net asset value may reflect undistributed income or undistributed capital gains.
A subsequent distribution to you of such amounts, although constituting a return of your investment, would be taxable. Buying shares in
a Fund just before it declares an income dividend or capital gains distribution is sometimes known as “buying a dividend.”
In addition, a Fund’s net asset value may, at any time, reflect net unrealized appreciation, which may result in future taxable
distributions to you.
◾
By
law, if you do not provide a Fund with your proper taxpayer identification number and certain required certifications, you may be subject
to backup withholding on any distributions of income, capital gains, or proceeds from the sale of your shares. A Fund also must withhold
if the IRS instructs it to do so. When withholding is required, the amount will be 24% of any distributions or proceeds paid.
◾
An
additional 3.8% Medicare tax is imposed on certain net investment income (including ordinary dividends and capital gain distributions
received from a Fund and net gains from redemptions or other taxable dispositions of Fund shares) of U.S. individuals, estates and trusts
to the extent that such person’s “modified adjusted gross income” (in the case of an individual) or “adjusted
gross income” (in the case of an estate or trust) exceeds a threshold amount. This Medicare tax, if applicable, is reported by you
on, and paid with, your federal income tax return.
◾
You
will not be required to include the portion of dividends paid by a Fund derived from interest on U.S. government obligations in your
gross income for purposes of personal and, in some cases, corporate income taxes in many state and local tax jurisdictions. The percentage
of dividends that constitutes dividends derived from interest on federal obligations will be determined annually. This percentage may
differ from the actual percentage of interest received by the Fund on federal obligations for the particular days on which you hold shares.
◾
Fund
distributions and gains from sale or exchange of your Fund shares generally are subject to state and local income taxes.
◾
If
a Fund qualifies to pass through to you the tax benefits from foreign taxes it pays on its investments, and elects to do so, then any
foreign taxes it pays on these investments may be passed through to you. You will then be required to include your pro-rata share of these
taxes in gross income, even though not actually received by you, and will be entitled either to deduct your share of these taxes in computing
your taxable income, or to claim a foreign tax credit for these taxes against your U.S. federal income tax.
A-21 The
Invesco Funds
◾
Foreign
investors should be aware that U.S. withholding, special certification requirements to avoid U.S. backup withholding and claim
any treaty benefits, and estate taxes may apply to an investment in a Fund.
◾
Under
the Foreign Account Tax Compliance Act (FATCA), a Fund will be required to withhold a 30% tax on income dividends made by the Fund to
certain foreign entities, referred to as foreign financial institutions or non-financial foreign entities, that fail to comply (or be
deemed compliant) with extensive reporting and withholding requirements designed to inform the U.S. Department of the Treasury of U.S.-owned
foreign investment accounts. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide otherwise (which
is not expected). A Fund may disclose the information that it receives from its shareholders to the IRS, non-U.S. taxing authorities or
other parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that is a shareholder
of a Fund fails to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.
◾
If
a Fund invests in an underlying fund taxed as a RIC, please see any relevant section below for more information regarding the Fund’s
investment in such underlying fund.
The
above discussion concerning the taxability of Fund dividends and distributions and of redemptions and exchanges of Fund shares is inapplicable
to investors holding shares through a tax-advantaged arrangement, such as Retirement and Benefit Plans or 529 college savings plans. Such
investors should refer to the applicable account documents/program description for that arrangement for more information regarding the
tax consequences of holding and redeeming Fund shares.
Funds
Investing in Municipal Securities
◾
You
will not be required to include the “exempt-interest” portion of dividends paid by the Fund in either your gross income for
federal income tax purposes or your net investment income subject to the additional 3.8% Medicare tax. You will be required to report
the receipt of exempt-interest dividends and other tax-exempt interest on your federal income tax returns. The percentage of dividends
that constitutes exempt-interest dividends will be determined annually. This percentage may differ from the actual percentage of exempt
interest received by the Fund for the particular days in which you hold shares.
◾
A
Fund may invest in municipal securities the interest on which constitutes an item of tax preference and could give rise to a federal alternative
minimum tax liability for noncorporate shareholders, unless such municipal securities were issued in 2009 or 2010.
◾
Exempt-interest
dividends from interest earned on municipal securities of a state, or its political subdivisions, generally are exempt from that state’s
personal income tax. Most states, however, do not grant tax-free treatment to interest from municipal securities of other states.
◾
A
Fund may invest a portion of its assets in securities that pay income that is not tax-exempt. To the extent that dividends paid by a Fund
are derived from taxable investments or realized capital gains, they will be taxable as ordinary income or long-term capital gains.
◾
A
Fund may distribute to you any market discount and net short-term capital gains from the sale of its portfolio securities. If you are
a taxable investor, Fund distributions from this income are taxable to you as ordinary income, and generally will neither qualify for
the dividends-received deduction in the case of corporate shareholders nor as qualified dividend income subject to reduced rates of taxation
in the case of noncorporate shareholders.
◾
Exempt-interest
dividends from a Fund are taken into account when determining the taxable portion of your social security or railroad retirement benefits,
may be subject to state and local income taxes, may affect the deductibility of interest on certain indebtedness, and may have other collateral
federal income tax consequences for you.
◾
There
are risks that: (a) a security issued as tax-exempt may be reclassified by the IRS or a state tax authority as taxable and/or (b) future
legislative,
administrative or court actions could adversely impact the qualification of income from a tax-exempt security as tax-free. Such reclassifications
or actions could cause interest from a security to become taxable, possibly retroactively, subjecting you to increased tax liability.
In addition, such reclassifications or actions could cause the value of a security, and therefore, the value of the Fund’s shares,
to decline.
Money
Market Funds
◾
A
Fund does not anticipate realizing any long-term capital gains.
◾
If
a Fund expects to maintain a stable net asset value of $1.00 per share, investors should not have any gain or loss on sale or exchange
of Fund shares (unless the investor incurs a liquidity fee on such sale or exchange). See “Liquidity Fees and Redemption Gates.”
◾
There
is some degree of uncertainty with respect to the tax treatment of liquidity fees received by a Fund, and such tax treatment may be the
subject of future IRS guidance. If a Fund receives liquidity fees, it will consider the appropriate tax treatment of such fees to the
Fund at such time.
◾
Unless
you choose to adopt a simplified “NAV method” of accounting (described below), any capital gain or loss on the sale or exchange
of Fund shares (as noted above) generally will be treated either as short-term if you held your Fund shares for one year or less, or long-term
if you held your Fund shares longer. If you elect to adopt the NAV method of accounting, rather than computing gain or loss on every taxable
disposition of Fund shares as described above, you would determine your gain or loss based on the change in the aggregate value of your
Fund shares during a computation period (such as your taxable year), reduced by your net investment (purchases minus sales) in those shares
during that period. Under the NAV method, any resulting net capital gain or loss would be treated as short-term capital gain or loss.
Funds
Investing in Real Estate Securities
◾
Because
of “noncash” expenses such as property depreciation, the cash flow of a REIT that owns properties will exceed its taxable
income. The REIT, and in turn a Fund, may distribute this excess cash to shareholders. Such a distribution is classified as a return of
capital. Return of capital distributions generally are not taxable to you. Your cost basis in your Fund shares will be decreased by the
amount of any return of capital. Any return of capital distributions in excess of your cost basis will be treated as capital gains.
◾
Dividends
paid to shareholders from the Funds’ investments in U.S. REITs generally will not qualify for taxation at long-term capital gain
rates applicable to qualified dividend income.
◾
The
Fund may derive “excess inclusion income” from certain equity interests in mortgage pooling vehicles either directly or through
an investment in a U.S. REIT. Please see the SAI for a discussion of the risks and special tax consequences to shareholders in the event
the Fund realizes excess inclusion income in excess of certain threshold amounts.
◾
Under
the Tax Cuts and Jobs Act, “qualified REIT dividends” (i.e., ordinary REIT dividends other than capital gain dividends and
portions of REIT dividends designated as qualified dividend income) are treated as eligible for a 20% deduction by noncorporate taxpayers.
The Fund may choose to report the special character of “qualified REIT dividends” to a shareholder, provided both the Fund
and a shareholder meet certain holding period requirements with respect to their shares.
◾
The
Fund’s foreign shareholders should see the SAI for a discussion of the risks and special tax consequences to them from a sale of
a U.S. real property interest by a REIT in which the Fund invests.
Funds
Investing in Partnerships
◾
Taxes,
penalties, and interest associated with an audit of a partnership
are generally required to be assessed and collected at the partnership level. Therefore, an adverse federal income tax audit of a partnership
that a Fund invests in (including MLPs taxed as partnerships) could result in the Fund being required to pay federal income tax. A Fund
may have little input in any audit asserted against a partnership and may be contractually or legally obligated to make payments in regard
to deficiencies asserted without the ability to put forward an independent defense. Accordingly,
A-22 The
Invesco Funds
even
if a partnership in which the Fund invests were to remain classified as a partnership (instead of as a corporation), it could be required
to pay additional taxes, interest and penalties as a result of an audit adjustment, and the Fund, as a direct or indirect partner of such
partnership, could be required to bear the economic burden of those taxes, interest and penalties, which would reduce the value of Fund
shares.
◾
Under
the Tax Cuts and Jobs Act “qualified publicly traded partnership income” is treated as eligible for a 20% deduction by noncorporate
taxpayers. The legislation does not contain a provision permitting a RIC, such as a Fund, to pass the special character of this income
through to its shareholders. It is uncertain whether a future technical corrections bill or regulations issued by the IRS will address
this issue to enable a Fund to pass through the special character of “qualified publicly traded partnership income” to its
shareholders.
◾
Some
amounts received by a Fund from the MLPs in which it invests likely will be treated as returns of capital to such Fund because of accelerated
deductions available to the MLPs. The receipt of returns of capital from the MLPs in which a Fund invests could cause some or all of the
Fund’s distributions to be classified as a return of capital. Return of capital distributions generally are not taxable to you.
Your cost basis in your Fund shares will be decreased by the amount of any return of capital. Any return of capital distributions in excess
of your cost basis will be treated as capital gains.
Funds
Investing in Commodities
◾
The
Funds’ strategies of investing through their respective Subsidiary in derivatives and other financially linked instruments whose
performance is expected to correspond to the commodity markets may cause the Funds to recognize more ordinary income and short-term capital
gains taxable as ordinary income than would be the case if the Funds invested directly in commodities.
◾
The
Funds must meet certain requirements under the Code for favorable tax treatment as a RIC, including asset diversification and income requirements.
The IRS has issued a revenue ruling which holds that income derived from commodity-linked swaps is not qualifying income for purposes
of the Income Requirement. In a subsequent revenue ruling, as well as in a number of follow-on private letter rulings (upon which only
the fund that received the private letter ruling may rely), the IRS provides that income from certain alternative investments which create
commodity exposure, such as certain commodity-linked or structured notes or a corporate subsidiary that invests in commodities, may be
considered qualifying income under the Code. However, the portion of such rulings relating to the treatment of a corporation as a regulated
investment company that require a determination of whether a financial instrument or position is a security under section 2(a)(36) of
the 1940 Act was revoked because of changes in the IRS’s position.
(A financial instrument or position that constitutes a security
under section 2(a)(36) of the 1940 Act generates qualifying income for a corporation taxed as a regulated investment company.) The Funds
intend to treat the income each derives from commodity-linked notes as qualifying income based on an opinion from counsel confirming that
income from such investments should be qualifying income because such commodity-linked notes constitute securities under section 2(a)(36)
of the 1940 Act. Each Subsidiary will be classified for federal income tax purposes as a controlled foreign corporation (CFC) with respect
to the Fund. As such, the Fund will be required to include in its gross income each year amounts earned by the Subsidiary during that
year (“Subpart F” income), whether or not such earnings are distributed by the Subsidiary to the Fund (deemed inclusions).
Treasury Regulations also permit the Fund to treat such deemed inclusions of “Subpart F” income from the Subsidiary as qualifying
income to the Fund, even if the Subsidiary does not make a distribution of such income. Consequently, the Fund and the Subsidiary reserve
the right to rely on deemed inclusions being treated as qualifying income to the Fund consistent with recently released Treasury Regulations.
If, contrary to the opinion of counsel or other guidance issued by the IRS, the IRS were to determine that income from direct investment
in commodity-linked notes is non-qualifying, a Fund might fail to satisfy
the
income requirement. In lieu of disqualification, the Funds are permitted to pay a tax for certain failures to satisfy the asset diversification
or income requirements, which, in general, are limited to those due to reasonable cause and not willful neglect. The Funds intend to limit
their investments in their respective Subsidiary to no more than 25% of the value of each Fund’s total assets in order to satisfy
the asset diversification requirement.
Funds
Investing in Foreign Currencies
◾
The
Funds may realize gains from the sale or other disposition of foreign currencies (including but not limited to gains from options, futures
or forward contracts) derived from investing in securities or foreign currencies. The U.S. Treasury Department is authorized to issue
regulations on whether the realization of such foreign currency gains is qualified income for the Funds. If such regulations are issued,
each Fund may not qualify as a RIC and/or the Fund may change its investment policy. As of the date of this prospectus, no regulations
have been issued pursuant to this authorization. It is possible, however, that such regulations may be issued in the future. Additionally,
the IRS has not issued any guidance on how to apply the asset diversification test to such foreign currency positions. Thus, the IRS’
determination as to how to treat such foreign currency positions for purposes of satisfying the asset diversification test might differ
from that of each Fund resulting in the Fund’s failure to qualify as a RIC. In lieu of disqualification, each Fund is permitted
to pay a tax for certain failures to satisfy the asset diversification or income requirements, which, in general, are limited to those
due to reasonable cause and not willful neglect.
◾
The
Funds’ transactions in foreign currencies may give rise to ordinary income or loss to the extent such income or loss results from
fluctuations in the value of the foreign currency concerned. This treatment could increase or decrease the Funds' ordinary income distributions
to you, and may cause some or all of the Funds' previously distributed income to be classified as a return of capital. Return of capital
distributions generally are not taxable to you. Your cost basis in your Fund shares will be decreased by the amount of any return of capital.
Any return of capital distributions in excess of your cost basis will be treated as capital gains.
This
discussion of “Taxes” is for general information only and not
tax advice. All investors should consult their own tax advisers as to the federal, state, local and foreign tax provisions applicable
to them.
Taxes
(applicable to the Invesco SteelPath Funds
only)
Although
the Code generally provides that a RIC does not pay an entity-level income tax, provided that it distributes all or substantially all
of its income, the Fund is not and does not anticipate becoming eligible to elect to be treated as a RIC because most or substantially
all of the Fund’s investments will consist of investments in MLP securities. The RIC tax rules therefore have no application to
the Fund or to its shareholders. As a result, the Fund is treated as a regular corporation, or “C” corporation, for U.S. federal
income tax purposes, and generally is subject to U.S. federal income tax on its taxable income at the corporate income tax rate. In addition,
as a regular corporation, the Fund will be subject to state and local taxes by reason of its tax status and its investments in MLPs. Therefore,
the Fund may have to pay federal, multiple state, and local taxes, which would reduce the Fund’s cash available to make distributions
to shareholders. An estimate for federal, state, and local tax liabilities will reduce the fund’s net asset value. The extent to
which the Fund is required to pay U.S. federal, state or local corporate income, franchise or other corporate taxes could materially reduce
the Fund’s cash available to make distributions to shareholders. In addition, investors in taxable accounts should be aware of the
following basic tax points as supplemented below where relevant:
Fund
Tax Basics
◾
The
Fund intends to invest a significant portion of its assets in MLPs, which are generally treated as partnerships for U.S. federal income
tax purposes. To the extent that the Fund invests in equity securities of an MLP, the Fund will be a partner in such MLP. Accordingly,
the Fund will be
A-23 The
Invesco Funds
required
to take into account the Fund’s allocable share of the income, gains, losses, deductions, and credits recognized by each such MLP,
regardless of whether the MLP distributes cash to the Fund. MLP distributions to partners, such as the Fund, are not taxable unless the
cash amount (or in certain cases, the fair market value of marketable securities) distributed exceeds the Fund’s basis in its MLP
interest. The Fund expects that the cash distributions it will receive with respect to its investments in equity securities of MLPs will
exceed the net taxable income allocated to the Fund from such MLPs because of tax deductions such as depreciation, amortization and depletion
that will be allocated to the Fund from the MLPs. No assurance, however, can be given in this regard. If this expectation is not realized,
the Fund will have a larger corporate income tax expense than expected, which will result in less cash available for distribution to shareholders.
◾
The
Fund will recognize gain or loss on the sale, exchange or other taxable disposition of its portfolio assets, including equity securities
of MLPs, equal to the difference between the amount realized by the Fund on the sale, exchange or other taxable disposition and the Fund’s
adjusted tax basis in such assets. Any such gain will be subject to U.S. federal income tax at the corporate income tax rate, regardless
of how long the Fund has held such assets since preferential capital gain rates do not apply to regular corporations such as the Fund.
The amount realized by the Fund in any case generally will be the amount paid by the purchaser of the assets plus, in the case of MLP
equity securities, the Fund’s allocable share, if any, of the MLP’s debt that will be allocated to the purchaser as a result
of the sale, exchange or other taxable disposition. The Fund’s tax basis in its equity securities in an MLP generally is equal to
the amount the Fund paid for the equity securities, (i) increased by the Fund’s allocable share of the MLP’s net taxable income
and certain MLP debt, if any, and (ii) decreased by the Fund’s allocable share of the MLP’s net losses and any distributions
received by the Fund from the MLP. Although any distribution by an MLP to the Fund in excess of the Fund’s allocable share of such
MLP’s net taxable income may create a temporary economic benefit to the Fund, net of a deferred tax liability, such distribution
will decrease the Fund’s tax basis in its MLP investment and will therefore increase the amount of gain (or decrease the amount
of loss) that will be recognized on the sale of an equity security in the MLP by the Fund. To the extent that the Fund has a net capital
loss in any year, the net capital loss can be carried back three taxable years and forward five taxable years to reduce the Fund’s
capital gains in such years. In the event a capital loss carryover cannot be utilized in the carryover periods, the Fund’s federal
income tax liability may be higher than expected, which will result in less cash available to distribute to shareholders.
◾
Distributions
by the Fund of cash or property in respect of the shares (other than certain distributions in redemption of shares) will be treated as
dividends for U.S. federal income tax purposes to the extent paid from the Fund’s current or accumulated earnings and profits (as
determined under U.S. federal income tax principles). Generally, the Fund’s earnings and profits are computed based upon the Fund’s
taxable income (loss), with certain specified adjustments. Any such dividend likely will be eligible for the dividends-received deduction
if received by an otherwise qualifying corporate U.S. shareholder that meets certain holding period and other requirements for the dividends-received
deduction. Dividends paid by the Fund to certain non-corporate U.S. shareholders (including individuals), generally are eligible for U.S.
federal income taxation at the rates generally applicable to long-term capital gains for individuals provided that the U.S. shareholder
receiving the dividend satisfies applicable holding period and other requirements. Otherwise, dividends paid by the Fund to non-corporate
U.S. Shareholders (including individuals) will be taxable at ordinary income rates.
◾
If
the amount of a Fund distribution exceeds the Fund’s current and accumulated earnings and profits, such excess will be treated first
as a tax-deferred return of capital to the extent of, and in reduction of, a shareholder’s tax basis in the shares, and thereafter
as capital gain to the extent the shareholder held the shares as a capital asset. Any such capital gain will be long-term capital gain
if such shareholder has held the applicable shares for more than one year. The portion of the distribution
received
by a shareholder from the Fund that is treated as a return of capital will decrease the shareholder’s tax basis in his or her Fund
shares (but not below zero), which will result in an increase in the amount of gain (or decrease in the amount of loss) that will be recognized
by the shareholder for tax purposes on the later sale of such Fund shares.
◾
The
Fund anticipates that the cash distributions it will receive with respect to its investments in equity securities of MLPs and which it
will distribute to its shareholders will exceed the Fund’s current and accumulated earnings and profits. Accordingly, the Fund expects
that only a part of its distributions to shareholders with respect to the shares will be treated as dividends for U.S. federal income
tax purposes. No assurance, however, can be given in this regard.
◾
Special
rules may apply to the calculation of the Fund’s earnings and profits. For example, the Fund’s earnings and profits will be
calculated using the straight-line depreciation method rather than the accelerated depreciation method. This difference in treatment may,
for example, result in the Fund’s earnings and profits being higher than the Fund’s taxable income or loss in a particular
year if the MLPs in which the Fund invests calculate their income using accelerated depreciation. Because of these special earnings profits
rules, the Fund may make distributions in a particular year out of earnings and profits (treated as dividends) in excess of the amount
of the Fund’s taxable income or loss for such year, which means that a larger percentage of the Fund ’s distributions could
be taxable to shareholders as ordinary income instead of tax-deferred return of capital or capital gain.
◾
Shareholders
that receive distributions in shares rather than in cash will be treated for U.S. federal income tax purposes as having (i) received a
cash distribution equal to the fair market value of the shares received and (ii) reinvested such amount in shares.
◾
A
redemption of shares will be treated as a sale or exchange of such shares, provided the redemption is not essentially equivalent to a
dividend, is a substantially disproportionate redemption, is a complete redemption of a shareholder’s entire interest in the Fund,
or is in partial liquidation of such Fund. Redemptions that do not qualify for sale or exchange treatment will be treated as distributions
as described above. Upon a redemption treated as a sale or exchange under these rules, a shareholder generally will recognize capital
gain or loss equal to the difference between the adjusted tax basis of his or her shares and the amount received when they are sold.
◾
If
the Fund is required to sell portfolio securities to meet redemption requests, the Fund may recognize income and gains for U.S. federal,
state and local income and other tax purposes, which may result in the imposition of corporate income or other taxes on the Fund and may
increase the Fund’s current and accumulated earnings and profits, which will result in a greater portion of distributions to Fund
shareholders being treated as dividends. Any long-term or short-term capital gains realized on sale or redemption of your Fund shares
will be subject to federal income tax. For tax purposes an exchange of your shares for shares of another Fund is the same as a sale. An
exchange occurs when the purchase of shares of a Fund is made using the proceeds from a redemption of shares of another Fund and is effectuated
on the same day as the redemption. Your gain or loss is calculated by subtracting from the gross proceeds your cost basis. Gross proceeds
and, for shares acquired on or after January 1, 2012 and disposed of after that date, cost basis will be reported to you and the IRS.
Cost basis will be calculated using the Fund’s default method of first-in, first-out (FIFO), unless you instruct the Fund to use
a different calculation method. Shareholders should carefully review the cost basis information provided by a Fund and make any additional
basis, holding period or other adjustments that are required when reporting these amounts on their federal income tax returns. If you
hold your Fund shares through a broker (or other nominee), please contact that broker (nominee) with respect to reporting of cost basis
and available elections for your account. For more information about the cost basis methods offered by Invesco, please refer to the Tax
Center located under the Account Access & Forms menu of our website at www.invesco.com/us.
A-24 The
Invesco Funds
◾
The
conversion of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes
and no gain or loss will be reported on the transaction. This is true whether the conversion occurs automatically pursuant to the terms
of the class or is initiated by the shareholder.
◾
At
the time you purchase your Fund shares, the Fund’s net asset value may reflect undistributed income. A subsequent distribution to
you of such amounts, although constituting a return of your investment, would be taxable. Buying shares in a Fund just before it declares
an income dividend is sometimes known as “buying a dividend.” In addition, a Fund’s net asset value may, at any time,
reflect net unrealized appreciation, which may result in future taxable distributions to you.
◾
By
law, if you do not provide a Fund with your proper taxpayer identification number and certain required certifications, you may be subject
to backup withholding on any distributions of income, capital gains, or proceeds from the sale of your shares. A Fund also must withhold
if the IRS instructs it to do so. When withholding is required, the amount will be 24% of any distributions or proceeds paid.
◾
A
3.8% Medicare tax is imposed on certain net investment income (including ordinary dividends received from a Fund and net gains from redemptions
or other taxable dispositions of Fund shares) of U.S. individuals, estates and trusts to the extent that such person’s “modified
adjusted gross income” (in the case of an individual) or “adjusted gross income” (in the case of an estate or trust)
exceeds a threshold amount. This Medicare tax, if applicable, is reported by you on, and paid with, your federal income tax return.
◾
Fund
distributions and gains from sale or exchange of your Fund shares generally are subject to state and local income taxes.
◾
Foreign
investors should be aware that U.S. withholding, special certification requirements to avoid U.S. backup withholding and claim any treaty
benefits, and estate taxes may apply to an investment in a Fund.
◾
Under
the Foreign Account Tax Compliance Act (FATCA), a Fund will be required to withhold a 30% tax on income dividends made by the Fund to
certain foreign entities, referred to as foreign financial institutions or non-financial foreign entities, that fail to comply (or be
deemed compliant) with extensive reporting and withholding requirements designed to inform the U.S. Department of the Treasury of U.S.-owned
foreign investment accounts. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide otherwise (which
is not expected). A Fund may disclose the information that it receives from its shareholders to the IRS, non-U.S. taxing authorities or
other parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that is a shareholder
of a Fund fails to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.
◾
Taxes,
penalties, and interest associated with an audit of a partnership are generally required to be assessed and collected at the partnership
level. Therefore, an adverse federal income tax audit of an MLP taxed as a partnership that the Fund invests in could result in the Fund
being required to pay federal income tax. The Fund may have little input in any audit asserted against an MLP and may be contractually
or legally obligated to make payments in regard to deficiencies asserted without the ability to put forward an independent defense. Accordingly,
even if an MLP in which the Fund invests were to remain classified as a partnership, it could be required to pay additional taxes, interest
and penalties as a result of an audit adjustment, and the Fund, as a direct or indirect partner of such MLP, could be required to bear
the economic burden of those taxes, interest and penalties, which would reduce the value of Fund shares.
◾
Under
the Tax Cuts and Jobs Act certain “qualified publicly traded partnership income” (e.g., certain income from certain of the
MLPs in which the Fund invests) is treated as eligible for a 20% deduction by noncorporate taxpayers. The Tax Cuts and Jobs Act does not
contain a provision permitting an entity, such as the Fund, to benefit from this
deduction
(since the Fund is taxed as a “C” corporation) or pass the special character of this income through to its shareholders. Qualified
publicly traded partnership income allocated to a noncorporate investor investing directly in an MLP might, however, be eligible for the
deduction.
The
above discussion concerning the taxability of Fund dividends and distributions
and of redemptions and exchanges of Fund shares is inapplicable to investors holding shares through a tax-advantaged arrangement, such
as Retirement and Benefit Plans or 529 college savings plans. Such investors should refer to the applicable account documents/program
description for that arrangement for more information regarding the tax consequences of holding and redeeming Fund shares.
This
discussion of “Taxes” is for general information only and not
tax advice. All investors should consult their own tax advisers as to the federal, state, local and foreign tax provisions applicable
to them.
Federal
Income Taxes (applicable to Invesco Master Loan Fund only)
United
States Taxes
The
Fund is classified as a partnership and will not be a regulated investment company for US federal income tax purposes. As a partnership,
the Fund is not a taxable entity for federal income tax purposes and, subject to the application of the partnership audit rules described
below, incurs no federal income tax liability. Each Investor is required to take into account its proportionate share of items of income,
gain, loss and deduction of the partnership in computing its federal income tax liability regardless of whether or not cash or property
distributions are then made by the Fund. Following the close of the Fund’s taxable year end, Investors will receive a tax statement
entitled Schedule K-1 Partner’s Share of Income, Deductions, Credits, etc., which reports the tax status of their distributive share
of the Fund’s items for the previous year.
Taxation
of Distributions, Sales and Exchanges
In
general, distributions of money by the Fund to an Investor will represent a non-taxable return of capital up to the amount of an Investor’s
adjusted tax basis in its shares. An Investor will recognize gain to the extent that any money distributed by the Fund exceeds the Investor’s
adjusted tax basis in its shares. In the case of a non-taxable return of capital by the Fund to an Investor, other than in liquidation
of the Investor’s interest in the Fund, the tax basis of his shares will be reduced (but not below zero) and will result in an increase
in the amount of gain (or decrease in the amount of loss) that will be recognized by the Investor on the later sale of its shares. A distribution
in partial or complete redemption of your shares in the Fund is taxable as a sale or exchange only to the extent the amount of money received
exceeds the tax basis of your entire interest in the Fund. Any loss may be recognized only if you redeem your entire interest in the Fund
for money.
When
you sell shares of the Fund, you may have a capital gain or loss.
Derivatives
The
use of derivatives by the Fund may cause the Fund to realize higher amounts of ordinary income or short-term capital gain, allocations
of which are taxable to individual Investors at ordinary income tax rates rather than at the more favorable tax rates for long-term capital
gain. Changes in government regulation of derivative instruments could affect the character, timing and amount of the Fund’s taxable
income or gains, and may limit the Fund from using certain types of derivative instruments as part of its investment strategy.
Risk
of Audit of the Fund
Under
the partnership audit rules, which are generally applicable to tax years beginning after December 31, 2017, the Internal Revenue Service
(“IRS”) may collect any taxes resulting from audit adjustments to the Fund’s income tax returns (including any applicable
penalties and interest) directly from the Fund. In that case, current Investors would bear some or all of the
A-25 The
Invesco Funds
tax liability
resulting from such audit adjustment, even if they did not own interests in the Fund during the tax year under audit. The Fund may have
the ability to shift any such tax liability to the Investors in accordance with their interests in the Fund during the year under audit,
but there can be no assurance that the Fund will be able to do so under all circumstances. For taxable years not subject to the new audit
rules, items of Fund income, gain, loss, deduction and credit will be determined at the Fund level in a unified audit. NO REPRESENTATION
OR WARRANTY OF ANY KIND IS MADE WITH RESPECT TO THE TAXATION, DEDUCTIBILITY OR CAPITALIZATION OF ANY ITEM BY THE FUND OR INVESTOR. In
addition, the “partnership representative” (tax matters partner, for taxable years before the partnership audit rules become
effective) will have the sole authority to act on the Fund’s behalf for purposes of, among other things, federal income tax audits
and judicial review of administrative adjustments by the IRS, and any such actions will be binding on the Fund and all of the Investors.
Unrelated
Business Taxable Income
An
allocable share of a tax-exempt Investor’s income will be “unrelated business taxable income” (“UBTI”) to
the extent that the Fund borrows money to acquire property or invests in assets that produce UBTI.
Medicare
Tax
An
additional 3.8% Medicare tax is imposed on certain net investment income of US individuals, estates and trusts to the extent that such
person’s “modified adjusted gross income” (in the case of an individual) or “adjusted gross income” (in
the case of an estate or trust) exceeds a threshold amount. “Net investment income,” for these purposes, means investment
income (including (i) net gains from the taxable disposition of shares of a Fund to the extent the net gain would be taken into account
by the Investor if the Fund sold all of its property for fair market value immediately before the disposition of the shares of the Fund,
and (ii) an allocable share of a Fund’s interest, dividends and net gains) reduced by the deductions properly allocable to such
income. This Medicare tax, if applicable, is reported by Investors on, and paid with, the Investor’s federal income tax return.
State,
Local and Non-US Tax Matters
An
Investor’s distributive share of the Fund’s income, and gains from the sale or exchange of an Investor’s Fund shares,
generally are subject to state and local taxes in the jurisdiction in which the Investor resides or is otherwise subject to tax.
Prospective
investors should consider their individual state and local tax consequences
of an investment in the Fund.
Tax
Considerations for Non-US Investors
If,
as anticipated, the Fund is not deemed to be engaged in a US trade or business, the Fund generally will be required to withhold tax on
the distributive share of certain items of gross income from US sources allocated to non-US Investors at a 30% (or lower treaty) rate.
Certain categories of income, including portfolio interest, are not subject to US withholding tax. Capital gains (other than gain realized
on disposition of US real property interests) are not subject to US withholding tax unless the non-US Investor is a nonresident alien
individual present in the United States for a period or periods aggregating 183 days or more during the taxable year. If, on the other
hand, the Fund derives income which is effectively connected with a US trade or business carried on by the Fund, this 30% tax will not
apply to such effectively connected income of the Fund, and the Fund generally will be required to withhold tax from the amount of effectively
connected income allocable to non-US Investors at the highest rate of tax applicable to US residents, and non-US Investors generally would
be required to file US income tax returns and be subject to US income tax on a net basis. Gain or loss on a sale of shares will be treated
as effectively connected with a U.S. trade or business to the extent that a foreign corporation or foreign individual that owns the shares
(whether directly or indirectly through other partnerships) would have had effectively connected gain or loss had the partnership sold
its underlying assets and applicable US
withholding
tax will apply. Non-US Investors may be subject to US estate tax and are subject to special US tax certification requirements.
Other
Reporting and Withholding Requirements
Under
the Foreign Account Tax Compliance Act (“FATCA”), the Fund will be required to withhold at a 30% rate on certain US source
payments (such as interest and dividends) to certain Investors if the Investor fails to provide the Fund with the information which identifies
its direct and indirect US ownership. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide otherwise (which
is not expected). A Fund may disclose the information that it receives from an Investor to the IRS, non-US taxing authorities or other
parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that is an Investor fails
to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.
For
a more complete discussion of the federal income tax consequences
of investing in the Fund, see the Statement of Additional Information.
This
discussion of “Federal Income Taxes” is not intended or written
to be used as tax advice. Because everyone’s tax situation is unique, Investors should consult their tax professional about federal,
state, local and foreign tax consequences before making an investment in the Fund.
Payments
to Financial Intermediaries – All Share Classes except Class R6 shares
The
financial adviser or intermediary through which you purchase your shares may receive all or a portion of the sales charges and distribution
fees discussed above. In addition to those payments, Invesco Distributors and other Invesco Affiliates, may make additional cash payments
to financial intermediaries in connection with the promotion and sale of shares of the Funds. These additional cash payments may include
cash payments and other payments for certain marketing and support services. Invesco Affiliates make these payments from their own resources,
from Invesco Distributors’ retention of initial sales charges and from payments to Invesco Distributors made by the Funds under
their 12b-1 plans. In the context of this prospectus, “financial intermediaries” include any broker, dealer, bank (including
bank trust departments), registered investment adviser, financial planner, retirement plan administrator, insurance company and any other
financial intermediary having a selling, administration or similar agreement with Invesco Affiliates.
The
benefits Invesco Affiliates receive when they make these payments include,
among other things, placing the Funds on the financial intermediary’s fund sales system, and access (in some cases on a preferential
basis over other competitors) to individual members of the financial intermediary’s sales force or to the financial intermediary’s
management. These payments are sometimes referred to as “shelf space” payments because the payments compensate the financial
intermediary for including the Funds in its fund sales system (on its “sales shelf”). Invesco Affiliates compensate financial
intermediaries differently depending typically on the level and/or type of considerations provided by the financial intermediary. The
payments Invesco Affiliates make may be calculated based on sales of shares of the Funds (Sales-Based Payments), in which case the total
amount of such payments shall not exceed 0.25% (0.10% for Class R5 shares) of the public offering price of all shares sold by the financial
intermediary during the particular period. Payments may also be calculated based on the average daily net assets of the applicable Funds
attributable to that particular financial intermediary (Asset-Based Payments), in which case the total amount of such cash payments shall
not exceed 0.25% per annum of those assets during a defined period. Sales-Based Payments primarily create incentives to make new sales
of shares of the Funds and Asset-Based Payments primarily create incentives to retain previously sold shares of the Funds in investor
accounts. Invesco Affiliates
A-26 The
Invesco Funds
may pay a financial
intermediary either or both Sales-Based Payments and Asset-Based Payments.
Invesco
Affiliates are motivated to make these payments as they promote
the sale of Fund shares and the retention of those investments by clients of the financial intermediaries. To the extent financial intermediaries
sell more shares of the Funds or retain shares of the Funds in their clients’ accounts, Invesco Affiliates benefit from the incremental
management and other fees paid to Invesco Affiliates by the Funds with respect to those assets.
The
Funds’ transfer agent may make payments to certain financial intermediaries
for certain administrative services, including record keeping and sub-accounting of shareholder accounts pursuant to a sub-transfer agency,
omnibus account service or sub-accounting agreement. All fees payable by Invesco Affiliates under this category of services are charged
back to the Funds, subject to certain limitations approved by the Board.
You
can find further details in the Fund’s SAI about these payments and the
services provided by financial intermediaries. In certain cases these payments could be significant to the financial intermediaries. Your
financial adviser may charge you additional fees or commissions other than those disclosed in this prospectus. You can ask your financial
adviser about any payments it receives from Invesco Affiliates or the Funds, as well as about fees and/or commissions it charges.
Important
Notice Regarding Delivery of Security Holder Documents
To
reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address
(Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not
want the mailing of these documents to be combined with those for other members of your household, please contact the Funds’ transfer
agent at 800-959-4246 or contact your financial institution. The Funds’ transfer agent will begin sending you individual copies
for each account within thirty days after receiving your request.
A-27 The
Invesco Funds
Obtaining Additional Information
More information
may be obtained free of charge upon request. The SAI, a current version of which is on file with the SEC, contains more details about
the Fund and is incorporated by reference into this prospectus (is legally a part of this prospectus). Annual and semi-annual reports
to shareholders contain additional information about the Fund’s investments. The Fund’s annual report also discusses the market
conditions and investment strategies that significantly affected the Fund’s performance during its last fiscal year. The Fund also
files its complete schedule of portfolio holdings with the SEC for the 1st and 3rd quarters of each fiscal year as an exhibit to its reports
on Form N-PORT.
If
you have questions about an Invesco Fund or your account, or you wish to obtain a free copy of the Fund’s current SAI, annual or
semi-annual reports or Form N-PORT, please contact us.
|
By
Mail: |
Invesco
Investment Services, Inc.
P.O.
Box 219078
Kansas
City, MO 64121-9078 |
|
By
Telephone: |
(800)
959-4246 |
|
On
the Internet: |
You
can send us a request by e-mail or
download
prospectuses, SAIs, annual or
semi-annual
reports via our website:
www.invesco.com/us
|
Reports
and other information about the Fund are available on the EDGAR Database on the SEC's Internet site at http://www.sec.gov, and copies
of this information may be obtained, after paying a duplicating fee, by electronic request at the following e-mail address: publicinfo@sec.gov.
|
Invesco Capital
Appreciation Fund
SEC 1940 Act file
number: 811-09913 |
|
invesco.com/us
|
O-CAPA-PRO-1
|
Prospectus
December
16,
2022
Class:
A (ACPSX ), C (CPCFX ),
R (CPBRX ), Y (CPBYX ),
R5 (CPIIX ), R6 (CPBFX )
Invesco
Core Plus Bond Fund
As
with all other mutual fund securities, the U.S. Securities and Exchange Commission (SEC) has not approved or disapproved these securities
or passed upon the adequacy of this prospectus. Any representation to the contrary is a criminal offense.
An
investment in the Fund:
◾
is
not FDIC insured;
◾
may
lose value; and
◾
is
not guaranteed by a bank.
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A-10
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A-27
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Back
Cover |
Invesco
Core Plus Bond Fund
The
Fund’s investment objective is total return, comprised of current income and 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 $100,000
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 |
|
|
|
|
|
|
|
| ||||||
|
Acquired
Fund Fees and Expenses |
|
|
|
|
|
|
|
| ||||||
|
Total
Annual Fund Operating Expenses |
|
|
|
|
|
|
|
| ||||||
|
Fee
Waiver and/or Expense Reimbursement2
|
|
|
|
|
|
|
|
| ||||||
|
Total
Annual Fund Operating Expenses After Fee
Waiver
and/or Expense Reimbursement |
|
|
|
|
|
|
|
| ||||||
1
2
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 equal to the Total Annual Fund Operating Expenses After Fee
Waiver and/or Expense Reimbursement in the first year and the Total Annual Fund Operating Expenses thereafter.
Although
your actual costs may be higher or lower, based on these assumptions,
your costs would be:
|
|
1
Year |
3
Years |
5
Years |
10
Years |
|
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 fixed income
securities and in derivatives and other instruments that have economic characteristics similar to such securities.
The
Fund invests primarily in investment grade fixed-income securities generally
represented by the Bloomberg U.S. Aggregate Bond Index (the benchmark index). The principal types of fixed-income securities in which
the Fund invests are corporate bonds, U.S. Treasury and agency securities, and mortgage-backed and asset-backed securities. The Fund may
invest up to 20% of its net assets in debt securities rated below investment grade. Below investment grade securities are commonly referred
to as junk bonds.
The
Fund may invest up to 30% of its net assets in foreign debt securities,
including debt securities of issuers located in emerging market
countries, i.e., those that are generally in the early stages of
their industrial cycles. The Fund may invest up to 20% of the Fund’s net assets in currencies and securities, including foreign
currency derivatives, denominated in currencies other than the U.S. dollar.
The
Fund may purchase mortgage-backed and asset-backed securities such
as collateralized mortgage obligations (CMOs), collateralized loan obligations (CLOs) and collateralized debt obligations (CDOs), which
are counted toward the 80% investment requirement.
The
Fund may invest in illiquid or thinly traded securities. The Fund may also
invest in securities that are subject to resale restrictions such as those contained in Rule 144A promulgated under the Securities Act
of 1933, as amended.
The
Fund may purchase municipal securities. The Fund’s investments may
also include securities that do not produce immediate cash income, such as zero coupon securities and pay-in-kind securities.
The
Fund may purchase and sell securities on a when-issued and delayed
delivery basis, which means that the Fund buys or sells a security
1 Invesco
Core Plus Bond Fund
with payment
and delivery taking place in the future. The Fund may also engage in “to be announced” (TBA) transactions, which are transactions
in which a fund buys or sells mortgage-backed securities on a forward commitment basis. The Fund may engage in short sales of TBA mortgages,
including short sales of TBA mortgages the Fund does not own.
The
Fund can invest in derivative instruments including swap contracts, options,
futures contracts and forward foreign currency contracts.
The
Fund can use swap contracts, including interest rate swaps, to hedge
or adjust its exposure to interest rates. The Fund can also use swap contracts, including credit default swaps, to create long or short
exposure to corporate or sovereign debt securities. The Fund can further use swap contracts, including: credit default index swaps, to
hedge credit risk or take a position on a basket of credit entities; total return swaps, to gain exposure to a reference asset; and volatility
swaps to adjust the volatility profile of the Fund.
The
Fund can use options, including currency options, to seek alpha (return
on investments in excess of the benchmark index) or to mitigate risk and to hedge against adverse movements in the foreign currencies
in which portfolio securities are denominated. The Fund can also use credit default swap options to gain the right to enter into a credit
default swap at a specified future date. The Fund can further use swaptions (options on swaps) to manage interest rate risk; and options
on bond or rate futures to manage interest rate exposure.
The
Fund can use futures contracts, including interest rate futures, to increase
or reduce its exposure to interest rate changes. The Fund can also use currency futures to increase or decrease its exposure to foreign
currencies.
The
Fund can engage in foreign currency transactions either on a spot basis
(i.e., for prompt delivery and settlement at the rate prevailing in the currency exchange market at the time) or through forward foreign
currency contracts to gain or mitigate the risk of foreign currency exposure.
The
Fund may invest up to 15% of its net assets in equity interests and/or
debt obligations issued by Real Estate Investment Trusts (REITs).
The
Fund utilizes active duration (i.e., making investments to reduce or increase
the sensitivity of the Fund’s portfolio to interest rate changes) and yield curve positioning (i.e., making investments that allow
the Fund to benefit from varying interest rates) for risk management and for generating alpha (return on investments in excess of the
benchmark index). Duration is a measure of volatility expressed in years and represents the anticipated percent change in a bond’s
price at a single point in time for a 1% change in yield. As duration increases, volatility increases as applicable interest rates change.
The
portfolio managers utilize the benchmark index as a reference in structuring
the portfolio. The portfolio managers decide on appropriate risk factors such as sector and issuer weightings and duration relative to
the benchmark index. The portfolio managers then determine appropriate position sizes to reflect desired risk positioning. In doing so,
the portfolio managers consider recommendations from a globally interconnected team of specialist decision makers in positioning the Fund
to generate alpha.
The
portfolio managers generally rely upon a team of market-specific specialists
for trade execution and for assistance in determining efficient ways (in terms of cost-efficiency and security selection) to implement
those recommendations. Although a variety of specialists provide input in the management of the Fund, the portfolio managers retain responsibility
for ensuring the Fund is positioned appropriately in terms of risk exposures and position sizes.
Specialists
employ a bottom-up approach to recommend larger or smaller exposure
to specific risk factors. In general, specialists will look for attractive risk-reward opportunities and securities that best enable the
Fund to pursue those opportunities. The portfolio managers consider the recommendations of these market-specific specialists in adjusting
the Fund’s risk exposures and security selection on a real-time basis using proprietary communication technology.
Decisions
to purchase or sell securities are determined by the relative value
considerations of the portfolio managers that factor in economic and credit-related fundamentals, market supply and demand, market dislocations
and situation-specific opportunities. The purchase or sale of securities may be related to a decision to alter the Fund’s macro
risk exposure (such as duration, yield curve positioning and sector exposure), a need to limit or reduce the Fund’s exposure to
a particular security or issuer, degradation of an issuer’s credit quality, or general liquidity needs of the Fund. The credit research
process utilized by the Fund to implement its investment strategy in pursuit of its investment objective considers factors that may include,
but are not limited to, an issuer’s operations, capital structure and environmental, social and governance (“ESG”) considerations.
Credit quality analysis for certain issuers therefore may consider whether any ESG factors pose a material financial risk or opportunity
to an issuer. The
Adviser may determine that ESG considerations are not material to certain issuers or types of investments held by the Fund. In addition,
not all issuers or investments in the Fund may undergo a credit quality analysis that considers ESG factors, and not all investments held
by the Fund will rate strongly on ESG criteria.
The
Fund will attempt to maintain (i) a dollar-weighted average portfolio maturity
of between three and 10 years; and (ii) a duration (the Fund’s price sensitivity to changes in interest rates) of within +/- two
years of the benchmark index. The foregoing maturity and duration targets are not guaranteed and the Adviser may deviate from such targets
in its discretion.
In
attempting to meet its investment objective or to manage subscription
and redemption requests, the Fund engages in active and frequent trading of portfolio securities.
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, natural or environmental disasters, widespread disease or other public health issues, war, military conflict, acts of terrorism
or adverse investor sentiment generally. 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.
Debt
Securities Risk. The prices of debt securities held by the Fund
will be affected by changes in interest rates, the creditworthiness of the issuer and other factors. An increase in prevailing interest
rates typically causes the value of existing debt securities to fall and often has a greater impact on longer-duration debt securities
and higher quality debt securities. Falling interest rates will cause the Fund to reinvest the proceeds of debt securities that have been
repaid by the issuer at lower interest rates. Falling interest rates may also reduce the Fund’s distributable income because interest
payments on floating rate debt instruments held by the Fund will decline. The Fund could lose money on investments in debt securities
if the issuer or borrower fails to meet its obligations to make interest payments and/or to repay principal in a timely manner. Changes
in an issuer’s financial strength, the market’s perception of such strength or in the credit rating of the issuer or the security
may affect the value of debt securities. The Adviser’s credit analysis may fail to anticipate such changes, which could result in
buying a
2 Invesco
Core Plus Bond Fund
debt security
at an inopportune time or failing to sell a debt security in advance of a price decline or other credit event.
Changing
Fixed Income Market Conditions Risk. Increases
in the federal funds and equivalent foreign rates or other changes to monetary policy or regulatory actions may expose fixed income markets
to heightened volatility and reduced liquidity for certain fixed income investments, particularly those with longer maturities. It is
difficult to predict the impact of interest rate changes on various markets. In addition, decreases in fixed income dealer market-making
capacity may also potentially lead to heightened volatility and reduced liquidity in the fixed income markets. As a result, the value
of the Fund’s investments and share price may decline. Changes in central bank policies could also result in higher than normal
redemptions by shareholders, which could potentially increase the Fund’s portfolio turnover rate and transaction costs.
U.S.
Government Obligations Risk. Obligations of U.S. Government agencies
and authorities receive varying levels of support and may not be backed by the full faith and credit of the U.S. Government, which could
affect the Fund’s ability to recover should they default. No assurance can be given that the U.S. Government will provide financial
support to its agencies and authorities if it is not obligated by law to do so.
Mortgage-
and Asset-Backed Securities Risk. Mortgage- and asset-backed securities,
including collateralized debt obligations and collateralized mortgage obligations, are subject to prepayment or call risk, which is the
risk that a borrower's payments may be received earlier or later than expected due to changes in prepayment rates on underlying loans.
This could result in the Fund reinvesting these early payments at lower interest rates, thereby reducing the Fund's income. Mortgage-
and asset-backed securities also are subject to extension risk, which is the risk that an unexpected rise in interest rates could reduce
the rate of prepayments, causing the price of the mortgage- and asset-backed securities and the Fund’s share price to fall. An unexpectedly
high rate of defaults on the mortgages held by a mortgage pool may adversely affect the value of mortgage-backed securities and could
result in losses to the Fund. Privately-issued mortgage-backed securities and asset-backed securities may be less liquid than other types
of securities and the Fund may be unable to sell these securities at the time or price it desires. During periods of market stress or
high redemptions, the Fund may be forced to sell these securities at significantly reduced prices, resulting in losses. Liquid privately-issued
mortgage-backed securities and asset-backed securities can become illiquid during periods of market stress. Privately-issued mortgage-related
securities are not subject to the same underwriting requirements as those with government or government-sponsored entity guarantees and,
therefore, mortgage loans underlying privately-issued mortgage-related securities may have less favorable collateral, credit risk, liquidity
risk or other underwriting characteristics, and wider variances in interest rate, term, size, purpose and borrower characteristics. The
Fund may invest in mortgage pools that include subprime mortgages, which are loans made to borrowers with weakened credit histories or
with lower capacity to make timely payments on their mortgages. Liquidity risk is even greater for mortgage pools that include
subprime mortgages.
High
Yield Debt Securities (Junk Bond) Risk. Investments in high yield
debt securities (“junk bonds”) and other lower-rated securities will subject the Fund to substantial risk of loss. These securities
are considered to be speculative with respect to the issuer’s ability to pay interest and principal when due, are more susceptible
to default or decline in market value and are less liquid than investment grade debt securities. Prices of high yield debt securities
tend to be very volatile.
LIBOR
Transition Risk. The Fund may have investments in financial instruments
that utilize the London Interbank Offered Rate (“LIBOR”) as the reference or benchmark rate for variable interest rate calculations.
LIBOR is intended to measure the rate generally at which banks can lend and borrow from one another in the relevant currency on an unsecured
basis. Regulators and financial industry working groups in several jurisdictions have worked over the past several years to identify alternative
reference
rates
(“ARRs”) to replace LIBOR and to assist with the transition to the new ARRs. In connection with the transition, on March
5, 2021 the UK Financial Conduct Authority (FCA), the regulator
that oversees LIBOR, announced
that the majority of LIBOR rates would cease to be published or would no longer be representative on January 1, 2022. Consequently,
the publication of most LIBOR rates ceased at the end of 2021,
but a selection of widely used USD LIBOR rates continues to be published until June 2023 to allow for an orderly
transition away from these rates. Additionally,
key regulators have instructed banking institutions to cease
entering into new contracts that reference these USD LIBOR settings
after December 31,
2021,
subject to certain limited exceptions.
There
remains uncertainty and risks relating to the continuing LIBOR transition
and its effects on the Fund and the instruments in which the Fund invests. For example, there can be no assurance that the composition
or characteristics of any ARRs or financial instruments in which the Fund invests that utilize ARRs will be similar to or produce the
same value or economic equivalence as LIBOR or that these instruments will have the same volume or liquidity. Additionally, although regulators
have generally prohibited banking institutions from entering into new contracts that reference those USD LIBOR settings that continue
to exist, there remains uncertainty and risks relating to certain “legacy” USD LIBOR instruments that were issued or entered
into before December 31, 2021 and the process by which a replacement interest rate will be identified and implemented into these instruments
when USD LIBOR is ultimately discontinued. The effects of such uncertainty and risks in “legacy” USD LIBOR instruments held
by the Fund could result in losses to the Fund.
Foreign
Securities Risk. The Fund's foreign investments may be adversely
affected by political and social instability, changes in economic or taxation policies, difficulty in enforcing obligations, decreased
liquidity or increased volatility. 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. There may be less public information available about foreign companies than U.S. companies, making it difficult
to evaluate those foreign companies. 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.
Foreign
Government Debt Risk. Investments in foreign government debt securities
(sometimes referred to as sovereign debt securities) involve certain risks in addition to those relating to foreign securities or debt
securities generally. The issuer of the debt or the governmental authorities that control the repayment of the debt may be unable or unwilling
to repay principal or interest when due in accordance with the terms of such debt, and the Fund may have limited recourse in the event
of a default against the defaulting government. Without the approval of debt holders, some governmental debtors have in the past been
able to reschedule or restructure their debt payments or declare moratoria on payments.
Emerging
Market Securities Risk. Emerging markets (also referred to as developing
markets) are generally subject to greater market volatility, political, social and economic instability, uncertain trading markets and
more governmental limitations on foreign investment than more developed markets. In addition, companies operating in emerging markets
may be subject to lower trading volume and greater price fluctuations than companies in more developed markets. Such countries’
economies may be more dependent on relatively few industries or investors that may be highly
3 Invesco
Core Plus Bond Fund
vulnerable
to local and global changes. 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. As a result, information,
including financial information, about such companies may be less available and reliable, which can impede the Fund’s ability to
evaluate such companies. Securities law and the enforcement of systems of taxation in many emerging market countries may change quickly
and unpredictably, and the ability to bring and enforce actions (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), or to obtain information needed to pursue or enforce such actions, may be
limited. In addition, the ability of foreign entities to participate in privatization programs of certain developing or emerging market
countries may be limited by local law. Investments in emerging market securities may be subject to additional transaction costs, delays
in settlement procedures, unexpected market closures, and lack of timely information.
Collateralized
Loan Obligations Risk. CLOs are subject to the risks of substantial
losses due to actual defaults by underlying borrowers, which will be greater during periods of economic or financial stress. CLOs may
also lose value due to collateral defaults and disappearance of subordinate tranches, market anticipation of defaults, and investor aversion
to CLO securities as a class. The risks of CLOs will be greater if the Fund invests in CLOs that hold loans of uncreditworthy borrowers
or if the Fund holds subordinate tranches of the CLO that absorb losses from the defaults before senior tranches. In addition, CLOs are
subject to interest rate risk and credit risk.
Derivatives
Risk. The value of a derivative instrument depends largely on (and
is derived from) the value of an underlying security, currency, commodity, interest rate, index or other asset (each referred to as an
underlying asset). In addition to risks relating to the underlying assets, the use of derivatives may include other, possibly greater,
risks, including counterparty, leverage and liquidity risks. Counterparty risk is the risk that the counterparty to the derivative contract
will default on its obligation to pay the Fund the amount owed or otherwise perform under the derivative contract. Derivatives create
leverage risk because they do not require payment up front equal to the economic exposure created by holding a position in the derivative.
As a result, an adverse change in the value of the underlying asset could result in the Fund sustaining a loss that is substantially greater
than the amount invested in the derivative or the anticipated value of the underlying asset, which may make the Fund’s returns more
volatile and increase the risk of loss. Derivative instruments may also be less liquid than more traditional investments and the Fund
may be unable to sell or close out its derivative positions at a desirable time or price. This risk may be more acute under adverse market
conditions, during which the Fund may be most in need of liquidating its derivative positions. Derivatives may also be harder to value,
less tax efficient and subject to changing government regulation that could impact the Fund’s ability to use certain derivatives
or their cost. Derivatives strategies may not always be successful. For example, derivatives used for hedging or to gain or limit exposure
to a particular market segment may not provide the expected benefits, particularly during adverse market conditions.
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. 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.
Liquidity
Risk. The Fund may be unable to sell illiquid investments at the
time or price it desires and, as a result, could lose its entire investment in such investments. Liquid securities can become illiquid
during periods of market stress. If a significant amount of the Fund’s securities become
illiquid,
the Fund may not be able to timely pay redemption proceeds and may need to sell securities at significantly reduced prices.
Rule
144A Securities and Other Exempt Securities Risk. The market for
Rule 144A and other securities exempt from certain registration requirements typically is less active than the market for publicly-traded
securities. Rule 144A and other exempt securities, which are also known as privately issued securities, carry the risk that their liquidity
may become impaired and the Fund may be unable to dispose of the securities at a desirable time or price.
Restricted
Securities Risk. Limitations on the resale of restricted securities
may have an adverse effect on their marketability, and may prevent the Fund from disposing of them promptly at reasonable prices. There
can be no assurance that a trading market will exist at any time for any particular restricted security. Transaction costs may be higher
for restricted securities and such securities may be difficult to value and may have significant volatility.
Municipal
Securities Risk. The risk of a municipal obligation generally depends
on the financial and credit status of the issuer. Constitutional amendments, legislative enactments, executive orders, administrative
regulations, voter initiatives, and the issuer’s regional economic conditions may affect the municipal security’s value, interest
payments, repayment of principal and the Fund’s ability to sell the security. Failure of a municipal security issuer to comply with
applicable tax requirements may make income paid thereon taxable, resulting in a decline in the security’s value. In addition, there
could be changes in applicable tax laws or tax treatments that reduce or eliminate the current federal income tax exemption on municipal
securities or otherwise adversely affect the current federal or state tax status of municipal securities.
Zero
Coupon or Pay-In-Kind Securities Risk. The value, interest rates,
and liquidity of non-cash paying instruments, such as zero coupon and pay-in-kind securities, are subject to greater fluctuation than
other types of securities. The higher yields and interest rates on pay-in-kind securities reflect the payment deferral and increased credit
risk associated with such instruments and that such investments may represent a higher credit risk than loans that periodically pay interest.
When-Issued,
Delayed Delivery and Forward Commitment Risks.
When-issued and delayed delivery transactions subject the Fund
to market risk because the value or yield of a security at delivery may be more or less than the purchase price or yield generally available
when delivery occurs, and counterparty risk because the Fund relies on the buyer or seller, as the case may be, to consummate the transaction.
These transactions also have a leveraging effect on the Fund because the Fund commits to purchase securities that it does not have to
pay for until a later date, which increases the Fund’s overall investment exposure and, as a result, its volatility.
TBA
Transactions Risk. TBA transactions involve the risk of loss if
the securities received are less favorable than what was anticipated by the Fund when entering into the TBA transaction, or if the counterparty
fails to deliver the securities. When the Fund enters into a short sale of a TBA mortgage it does not own, the Fund may have to purchase
deliverable mortgages to settle the short sale at a higher price than anticipated, thereby causing a loss. As there is no limit on how
much the price of mortgage securities can increase, the Fund’s exposure is unlimited. The Fund may not always be able to purchase
mortgage securities to close out the short position at a particular time or at an acceptable price. In addition, taking short positions
results in a form of leverage, which could increase the volatility of the Fund’s share price.
Environmental,
Social and Governance (ESG) Considerations Risk. The ESG considerations
that may be assessed as part of a credit research process to implement the Fund's investment strategy in pursuit of its investment objective
may vary across types of eligible investments and issuers, and not every ESG factor may be identified or evaluated for every investment,
and not every investment or issuer may be evaluated for ESG considerations. The incorporation of ESG factors as part of a credit analysis
may affect the Fund’s exposure to certain issuers or industries and may not
4 Invesco
Core Plus Bond Fund
work as
intended. Information used to evaluate such factors may not be readily available, complete or accurate, and may vary across providers
and issuers. There is no guarantee that the incorporation of ESG considerations will be additive to the Fund’s performance.
REIT
Risk/Real Estate Risk. Investments in real estate related instruments
may be adversely affected by economic, legal, cultural, environmental or technological factors that affect property values, rents or occupancies.
Shares of real estate related companies, which tend to be small- and mid-cap companies, may be more volatile and less liquid than larger
companies. If a real estate related company defaults on certain types of debt obligations held by the Fund, the Fund may acquire real
estate directly, which involves additional risks such as environmental liabilities; difficulty in valuing and selling the real estate;
and economic or regulatory changes.
Active
Trading Risk. Active trading of portfolio securities may result
in added expenses, a lower return and increased tax liability.
Financial
Markets Regulatory Risk. Policy changes by the U.S. government
or its regulatory agencies and political events within the U.S. and abroad may, among other things, affect investor and consumer confidence
and increase volatility in the financial markets, perhaps suddenly and to a significant degree, which may adversely impact the Fund’s
operations, universe of potential investment options, and return potential.
Management
Risk. The Fund is actively managed and depends heavily on the Adviser’s
judgment about markets, interest rates or the attractiveness, relative values, liquidity, or potential appreciation of particular investments
made for the Fund’s portfolio. The Fund could experience losses if these judgments prove to be incorrect. Additionally, legislative,
regulatory, or tax developments may adversely affect management of the Fund and, therefore, the ability of the Fund to achieve its investment
objective.
Fund
performance reflects any applicable fee waivers and expense reimbursements.
Performance returns would be lower without applicable fee waivers and expense reimbursements.
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, 2021)
|
|
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
R61 |
|
-
|
|
|
|
| ||||
|
Bloomberg
U.S. Aggregate Bond Index deduction
for fees, expenses or taxes) |
|
-
|
|
|
|
| ||||
|
Lipper
Core Plus Bond Funds Index |
|
-
|
|
|
|
| ||||
1
Management
of the Fund
Investment
Adviser: Invesco Advisers, Inc. (Invesco or the Adviser)
|
Portfolio
Managers |
Title
|
Length
of Service on the Fund |
|
Matthew
Brill, CFA |
Portfolio
Manager |
2015
|
|
| ||
|
Chuck
Burge |
Portfolio
Manager |
2009
|
|
| ||
|
Michael
Hyman |
Portfolio
Manager |
2013
|
|
| ||
|
Todd
Schomberg, CFA |
Portfolio
Manager |
2020
|
|
| ||
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,
5 Invesco
Core Plus Bond Fund
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, 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 when withdrawn from such plan or account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund, the Fund’s distributor
or its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict
of interest by influencing the broker-dealer or other intermediary and your salesperson or financial adviser to recommend the Fund over
another investment. Ask your salesperson or financial adviser or visit your financial intermediary’s website for more information.
Investment Objective(s), Strategies, Risks and Portfolio Holdings
Objective(s)
and Strategies
The
Fund’s investment objective is total return, comprised of current income and 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 fixed income securities and in derivatives and other instruments that have economic characteristics
similar to such securities.
The
Fund invests primarily in investment grade fixed-income securities generally
represented by the Bloomberg U.S. Aggregate Bond Index (the benchmark index). The principal types of fixed-income securities in which
the Fund invests are corporate bonds, U.S. Treasury and agency securities, and mortgage-backed and asset-backed securities. The Fund may
invest up to 20% of its net assets in debt securities rated below investment grade. Below investment grade securities are commonly referred
to as junk bonds. Investment grade securities are: (i) securities rated BBB- or higher by Standard & Poor’s Ratings Services
(S&P) or Baa3 or higher by Moody’s Investors Service, Inc. (Moody’s) or an equivalent rating by another nationally recognized
statistical rating organization (NRSRO), (ii) securities with comparable short-term NRSRO ratings, or (iii) unrated securities determined
by the Adviser to be of comparable quality, each at the time of purchase.
The
Fund may invest up to 30% of its net assets in foreign debt securities,
including debt securities of issuers located in emerging market
countries, i.e., those that are generally in the early stages of
their industrial cycles. The Fund may invest up to 20% of the Fund’s net assets in currencies and securities, including foreign
currency derivatives, denominated in currencies other than the U.S. dollar.
The
Fund may purchase mortgage-backed and asset-backed securities such
as collateralized mortgage obligations (CMOs), collateralized loan
obligations
(CLOs) and collateralized debt obligations (CDOs), which are counted toward the 80% investment requirement.
The
Fund may invest in illiquid or thinly traded securities. The Fund may also
invest in securities that are subject to resale restrictions such as those contained in Rule 144A promulgated under the Securities Act
of 1933, as amended.
The
Fund may purchase municipal securities. The Fund’s investments may
also include securities that do not produce immediate cash income, such as zero coupon securities and pay-in-kind securities. Zero coupon
securities are debt securities that do not entitle the holder to any periodic payment of interest prior to maturity or a specified date
when the securities begin paying current interest. Pay-in-kind securities are debt securities that pay interest through the issuance of
additional securities.
The
Fund may purchase and sell securities on a when-issued and delayed
delivery basis, which means that the Fund buys or sells a security with payment and delivery taking place in the future. The payment obligation
and the interest rate are fixed at the time the Fund enters into the commitment. No income accrues on such securities until the date the
Fund actually takes delivery of the securities. The Fund may also engage in “to be announced” (TBA) transactions, which are
transactions in which a fund buys or sells mortgage-backed securities on a forward commitment basis. A TBA transaction typically does
not designate the actual security to be delivered and only includes an approximate principal amount at the time the Fund enters into the
TBA transaction. The Fund may also engage in short sales of TBA mortgages, including short sales of TBA mortgages the Fund does not own.
Generally, the Fund will sell a TBA mortgage short to (1) take advantage of an expected decline in mortgage valuations or (2) to hedge
against the potential underperformance of the mortgage sector.
The
Fund can invest in derivative instruments including swap contracts, options,
futures contracts and forward foreign currency contracts.
A
swap contract is an agreement between two parties pursuant to which
the parties exchange payments at specified dates on the basis of a specified notional amount, with the payments calculated by reference
to specified securities, indexes, reference rates, commodities, currencies or other assets. The notional amount of a swap is based on
the nominal or face amount of a reference asset that is used to calculate payments made on that swap; the notional amount typically is
not exchanged between counterparties. The parties to the swap use variations in the value of the underlying asset to calculate payments
between them through the life of the swap. The Fund can use swap contracts, including interest rate swaps, to hedge or adjust its exposure
to interest rates. The Fund can also use swap contracts, including credit default swaps, to create long or short exposure to corporate
or sovereign debt securities. The Fund can further use swap contracts, including: credit default index swaps, to hedge credit risk or
take a position on a basket of credit entities; total return swaps, to gain exposure to a reference asset; and volatility swaps to adjust
the volatility profile of the Fund.
An
option is a derivative financial instrument that reflects a contract between
two parties for a future transaction on an asset at a reference price. The buyer of the option gains the right, but not the obligation,
to engage in that transaction, while the seller incurs the corresponding obligation to fulfill the transaction. The price of an option
derives from the difference between the reference price and the value of the underlying asset (commonly a stock, a bond, a currency or
a futures contract) plus a premium based on the time remaining until the expiration of the option. Other types of options exist, and options
can in principle be created for any type of valuable asset. The Fund can use options, including currency options, to seek alpha (return
on investments in excess of the benchmark index) or to mitigate risk and to hedge against adverse movements in the foreign currencies
in which portfolio securities are denominated. The Fund can also use credit default swap options to gain the right to enter into a credit
default swap at a specified future date. The Fund can further use swaptions (options on swaps) to manage interest rate risk; and options
on bond or rate futures to manage interest rate exposure.
6 Invesco
Core Plus Bond Fund
A
futures contract is a standardized agreement between two parties to buy
or sell a specified quantity of an underlying asset at a specified price at a specified future time. The value of the futures contract
tends to increase and decrease in tandem with the value of the underlying asset. Futures contracts are bilateral agreements, with both
the purchaser and the seller equally obligated to complete the transaction. Depending on the terms of the particular contract, futures
contracts are settled by purchasing an offsetting contract, physically delivering the underlying asset on the settlement date or paying
a cash settlement amount on the settlement date. The Fund can use futures contracts, including interest rate futures, to increase or reduce
its exposure to interest rate changes. The Fund can also use currency futures to increase or decrease its exposure to foreign currencies.
Currency futures contracts are traded on exchanges and have standard contract sizes and delivery dates. Most currency futures contracts
call for payment or delivery in U.S. dollars.
The
Fund can engage in foreign currency transactions either on a spot basis
(i.e., for prompt delivery and settlement at the rate prevailing in the currency exchange market at the time) or through forward foreign
currency contracts to gain or mitigate the risk of foreign currency exposure. Spot contracts allow for prompt delivery and settlement
at the rate prevailing in the currency exchange market at the time. A forward foreign currency contract is an agreement between parties
to exchange a specified amount of currency at a specified future time at a specified rate. Forward foreign currency contracts are used
to protect against uncertainty in the level of future currency exchange rates or to gain or modify exposure to a particular currency.
The
Fund may invest up to 15% of its net assets in equity interests and/or
debt obligations issued by REITs.
The
Fund utilizes active duration (i.e., making investments to reduce or increase
the sensitivity of the Fund’s portfolio to interest rate changes) and yield curve positioning (i.e., making investments that allow
the Fund to benefit from varying interest rates) for risk management and for generating alpha (return on investments in excess of the
benchmark index). Duration is a measure of volatility expressed in years and represents the anticipated percent change in a bond’s
price at a single point in time for a 1% change in yield. As duration increases, volatility increases as applicable interest rates change.
The
portfolio managers utilize the benchmark index as a reference in structuring
the portfolio. The portfolio managers decide on appropriate risk factors such as sector and issuer weightings and duration relative to
the benchmark index. The portfolio managers then determine appropriate position sizes to reflect desired risk positioning. In doing so,
the portfolio managers consider recommendations from a globally interconnected team of specialist decision makers in positioning the Fund
to generate alpha.
The
portfolio managers generally rely upon a team of market-specific specialists
for trade execution and for assistance in determining efficient ways (in terms of cost-efficiency and security selection) to implement
those recommendations. Although a variety of specialists provide input in the management of the Fund, the portfolio managers retain responsibility
for ensuring the Fund is positioned appropriately in terms of risk exposures and position sizes.
Specialists
employ a bottom-up approach to recommend larger or smaller exposure
to specific risk factors. In general, specialists will look for attractive risk-reward opportunities and securities that best enable the
Fund to pursue those opportunities. The portfolio managers consider the recommendations of these market-specific specialists in adjusting
the Fund’s risk exposures and security selection on a real-time basis using proprietary communication technology.
Decisions
to purchase or sell securities are determined by the relative value
considerations of the portfolio managers that factor in economic and credit-related fundamentals, market supply and demand, market dislocations
and situation-specific opportunities. The purchase or sale of securities may be related to a decision to alter the Fund’s macro
risk exposure (such as duration, yield curve positioning and sector exposure), a
need
to limit or reduce the Fund’s exposure to a particular security or issuer, degradation of an issuer’s credit quality, or general
liquidity needs of the Fund. The credit research process utilized by the Fund to implement its investment strategy in pursuit of its investment
objective considers factors that may include, but are not limited to, an issuer’s operations, capital structure and ESG considerations.
Credit quality analysis for certain issuers therefore may consider whether any ESG factors pose a material financial risk or opportunity
to an issuer. The Adviser may determine that ESG considerations are not material to certain issuers or types of investments held by the
Fund. In addition, not all issuers or investments in the Fund may undergo a credit quality analysis that considers ESG factors, and not
all investments held by the Fund will rate strongly on ESG criteria.
The
Fund will attempt to maintain (i) a dollar-weighted average portfolio maturity
of between three and 10 years; and (ii) a duration (the Fund’s price sensitivity to changes in interest rates) of within +/- two
years of the benchmark index. The foregoing maturity and duration targets are not guaranteed and the Adviser may deviate from such targets
in its discretion.
In
attempting to meet its investment objective or to manage subscription
and redemption requests, the Fund engages in active and frequent trading of portfolio securities.
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 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
7 Invesco
Core Plus Bond Fund
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.
◾
COVID-19.
The “COVID-19” strain of coronavirus has resulted in instances of market closures and dislocations, extreme volatility, liquidity
constraints and increased trading costs. Efforts to contain its spread have resulted in travel restrictions, disruptions of healthcare
systems, business operations (including business closures) and supply chains, layoffs, lower consumer demand and employee availability,
and defaults and credit downgrades, among other significant economic impacts that have disrupted global economic activity across many
industries. Such economic impacts may exacerbate other pre-existing political, social and economic risks locally or globally and cause
general concern and uncertainty. The full economic impact and ongoing effects of COVID-19 (or other future epidemics or pandemics) at
the macro-level and on individual businesses are unpredictable and may result in significant and prolonged effects on the Fund’s
performance.
Debt
Securities Risk. The prices of debt securities held by the Fund
will be affected by changes in interest rates, the creditworthiness of the issuer and other factors. An increase in prevailing interest
rates typically causes the value of existing debt securities to fall and often has a greater impact on longer-duration debt securities
and higher quality debt securities. Falling interest rates will cause the Fund to reinvest the proceeds of debt securities that have been
repaid by the issuer at lower interest rates. Falling interest rates may also reduce the Fund’s distributable income because interest
payments on floating rate debt instruments held by the Fund will decline. The Fund could lose money on investments in debt securities
if the issuer or borrower fails to meet its obligations to make interest payments and/or to repay principal in a timely manner. If an
issuer seeks to restructure the terms of its borrowings or the Fund is required to seek recovery upon a default in the payment of interest
or the repayment of principal, the Fund may incur additional expenses. Changes in an issuer’s financial strength, the market’s
perception of such strength or in the credit rating of the issuer or the security may affect the value of debt securities. The Adviser’s
credit analysis may fail to anticipate such changes, which could result in buying a debt security at an inopportune time or failing to
sell a debt security in advance of a price decline or other credit event.
Changing
Fixed Income Market Conditions Risk. Increases
in the federal
funds and equivalent foreign rates or other changes
to monetary policy or regulatory actions may expose fixed income
markets to heightened volatility and reduced liquidity for certain fixed income investments, particularly those with longer maturities.
It is difficult to predict the impact of interest rate changes on various markets. In addition, decreases in fixed income dealer market-making
capacity may also potentially lead to heightened volatility and reduced liquidity in the fixed income markets. As a result, the value
of the Fund’s investments and share price may decline. Changes in
central bank policies
could also result in higher than normal redemptions by shareholders,
which could potentially increase the Fund’s portfolio turnover rate and transaction costs and potentially lower the Fund’s
performance returns.
U.S.
Government Obligations Risk. Obligations of U.S. Government agencies
and authorities receive varying levels of support and may not be backed by the full faith and credit of the U.S. Government, which could
affect the Fund’s ability to recover should they default. No assurance can be
given
that the U.S. Government will provide financial support to its agencies and authorities if it is not obligated by law to do so.
Mortgage-
and Asset-Backed Securities Risk. Mortgage- and asset-backed securities,
including collateralized debt obligations and collateralized mortgage obligations, differ from conventional debt securities because principal
is paid back over the life of the security rather than at maturity. Mortgage- and asset-backed securities are subject to prepayment or
call risk, which is the risk that a borrower's payments may be received earlier or later than expected due to changes in prepayment rates
on underlying loans. Faster prepayments often happen when interest rates are falling. As a result, the Fund may reinvest these early payments
at lower interest rates, thereby reducing the Fund's income. Mortgage- and asset-backed securities also are subject to extension risk.
An unexpected rise in interest rates could reduce the rate of prepayments and extend the life of the mortgage- and asset-backed securities,
causing the price of the mortgage- and asset-backed securities and the Fund’s share price to fall and would make the mortgage- and
asset-backed securities more sensitive to interest rate changes. An unexpectedly high rate of defaults on the mortgages held by a mortgage
pool will adversely affect the value of mortgage-backed securities and will result in losses to the Fund. Privately-issued mortgage-backed
securities and asset-backed securities may be less liquid than other types of securities and the Fund may be unable to sell these securities
at the time or price it desires. During periods of market stress or high redemptions, the Fund may be forced to sell these securities
at significantly reduced prices, resulting in losses. Liquid privately-issued mortgage-backed securities and asset-backed securities can
become illiquid during periods of market stress. Privately-issued mortgage-related securities are not subject to the same underwriting
requirements for the underlying mortgages that are applicable to those mortgage-related securities that have government or government-sponsored
entity guarantees. As a result, the mortgage loans underlying privately-issued mortgage-related securities may, and frequently do, have
less favorable collateral, credit risk, liquidity risk or other underwriting characteristics than government or government-sponsored mortgage-related
securities and have wider variances in a number of terms including interest rate, term, size, purpose and borrower characteristics. The
Fund may invest in mortgage pools that include subprime mortgages, which are loans made to borrowers with weakened credit histories or
with lower capacity to make timely payments on their mortgages. Liquidity risk is even greater for mortgage pools that include
subprime mortgages.
High
Yield Debt Securities (Junk Bond) Risk. The Fund’s investments
in high yield debt securities (commonly referred to as “junk bonds”) and other lower-rated securities will subject the Fund
to substantial risk of loss. These securities are considered to be speculative with respect to the issuer’s ability to pay interest
and principal when due and are more susceptible to default or decline in market value due to adverse economic, regulatory, political or
company developments than higher rated or investment grade securities. Prices of high yield debt securities tend to be very volatile.
These securities are less liquid than investment grade debt securities and may be difficult to sell at a desirable time or price, particularly
in times of negative sentiment toward high yield securities.
LIBOR
Transition Risk. The Fund may have investments in financial instruments
that utilize the London Interbank Offered Rate (“LIBOR”) as the reference or benchmark rate for variable interest rate calculations.
LIBOR is intended to measure the rate generally at which banks can lend and borrow from one another in the relevant currency on an unsecured
basis. In the years following the 2008 financial crisis, the integrity of LIBOR was increasingly questioned because several banks contributing
to its calculation were accused of rate manipulation and because of a general contraction in the unsecured interbank lending market. As
a result, regulators and financial industry working groups in several jurisdictions have worked over the past several years to identify
alternative reference rates (“ARRs”) to replace LIBOR and to assist with the transition to the new ARRs. In connection with
the transition, on March 5, 2021 the UK Financial Conduct Authority (FCA),
8 Invesco
Core Plus Bond Fund
the
regulator that oversees LIBOR, announced that the majority of LIBOR rates would cease to be published or would no longer be representative
on January 1, 2022. Consequently, the publication of most LIBOR rates ceased at the end of 2021, but a selection of widely used USD LIBOR
rates continues to be published until June 2023 to allow for an orderly transition away from these rates. Additionally, key regulators
have instructed banking institutions to cease entering into new contracts that reference these USD LIBOR settings after December 31, 2021,
subject to certain limited exceptions.
There
remains uncertainty and risks relating to the continuing LIBOR
transition and its effects on the Fund and the instruments in which the Fund invests. For example,
there can be no assurance that the composition or characteristics
of any ARRs or financial instruments
in
which the Fund
invests that
utilize ARRs will be similar to or produce the same value or economic
equivalence as LIBOR or that these instruments will have the same volume or liquidity. Additionally, although regulators have generally
prohibited banking institutions from entering into new contracts that reference those USD LIBOR settings that continue to exist,
there remains
uncertainty and risks relating to certain
“legacy”
USD LIBOR
instruments that were issued or entered into before December
31,
2021 and the process by which a replacement interest rate will
be identified and implemented into these instruments when USD LIBOR
is ultimately discontinued. The effects of such uncertainty and risks in
“legacy”
USD LIBOR instruments held by the Fund could result in losses to
the Fund.
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.
Foreign
Government Debt Risk. Investments in foreign government debt securities
(sometimes referred to as sovereign debt securities) involve certain risks in addition to those relating to foreign securities or debt
securities generally. The issuer of the debt or the governmental authorities that control the repayment of the debt may be unable or unwilling
to repay principal or interest when due in accordance with the terms of such debt, and the Fund may have limited recourse in the event
of a default against the
defaulting
government. A foreign government debtor’s willingness or ability to repay principal and pay interest in a timely manner may be affected
by, among other factors, its cash flow situation, the extent of its foreign currency reserves, the availability of sufficient foreign
exchange, the relative size of the debt burden, the foreign government debtor’s policy toward its principal international lenders
and local political constraints. Certain issuers of foreign government debt may be dependent on disbursements from foreign governments,
multinational agencies and other entities to reduce principal and interest arrearages on their debt. Without the approval of debt holders,
some governmental debtors have in the past been able to reschedule or restructure their debt payments or declare moratoria on payments.
Emerging
Market Securities Risk. Emerging markets (also referred to as developing
markets) are generally subject to greater market volatility, political, social and economic instability, uncertainty regarding the existence
of trading markets and more governmental limitations on foreign investment than more developed markets. In addition, companies operating
in emerging markets may have greater concentration in a few industries resulting in greater vulnerability to regional and global trade
conditions and also may be subject to lower trading volume and greater price fluctuations than companies in more developed markets. Unexpected
market closures may also affect investments in emerging markets. Settlement procedures may differ from those of more established securities
markets, and settlement delays may result in the inability to invest assets or dispose of portfolio securities in a timely manner. As
a result there could be subsequent declines in value of the portfolio security, a decrease in the level of liquidity of the portfolio,
or, if there is a contract to sell the security, a possible liability to the purchaser.
Such
countries’ economies may be more dependent on relatively few industries
or investors that may be highly vulnerable to local and global changes. Emerging market countries may also have higher rates of inflation
and more rapid and extreme fluctuations in inflation rates and greater sensitivity to interest rate changes. Further, companies in emerging
market countries generally may be subject to less stringent regulatory, disclosure, financial reporting, accounting, auditing and recordkeeping
standards than companies in more developed countries and, as a result, the nature and quality of such information may vary. Information
about such companies may be less available and reliable and, therefore, the ability to conduct adequate due diligence in emerging markets
may be limited which can impede the Fund’s ability to evaluate such companies. In addition, certain emerging market countries have
material limitations on Public Company Accounting Oversight Board (“PCAOB”) inspection, investigation and enforcement capabilities,
which hinder the ability to engage in independent oversight or inspection of accounting firms located in or operating in certain emerging
markets; therefore, 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.
9 Invesco
Core Plus Bond Fund
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.
Collateralized
Loan Obligations Risk. CLOs are subject to the risks of substantial
losses due to actual defaults by underlying borrowers, which will be greater during periods of economic or financial stress. CLOs may
also lose value due to collateral defaults and disappearance of subordinate tranches, market anticipation of defaults, and investor aversion
to CLO securities as a class. The risks of CLOs will be greater if the Fund invests in CLOs that hold loans of uncreditworthy borrowers
or if the Fund holds subordinate tranches of the CLO that absorb losses from the defaults before senior tranches. In addition, CLOs are
subject to interest rate risk and credit risk.
Derivatives
Risk. A derivative is an instrument whose value depends largely
on (and is derived from) the value of an underlying security, currency, commodity, interest rate, index or other asset (each referred
to as an underlying asset). In addition to risks relating to the underlying assets, the use of derivatives may include other, possibly
greater, risks, which are described below.
◾
Counterparty
Risk. Certain derivatives do not trade on an established exchange
(referred to as over-the-counter (OTC) derivatives) and are simply financial contracts between the Fund and a counterparty. When the Fund
is owed money on an OTC derivative, the Fund is dependent on the counterparty to pay or, in some cases, deliver the underlying asset,
unless the Fund can otherwise sell its derivative contract to a third party prior to its expiration. Many counterparties are financial
institutions such as banks and broker-dealers and their creditworthiness (and ability to pay or perform) may be negatively impacted by
factors affecting financial institutions generally. In addition, in the event that a counterparty becomes bankrupt or insolvent, the Fund’s
ability to recover the collateral that the Fund has on deposit with the counterparty could be delayed or impaired. For derivatives traded
on a centralized exchange, the Fund generally is dependent upon the solvency of the relevant exchange clearing house (which acts as a
guarantor for each contractual obligation under such derivatives) for payment on derivative instruments for which the Fund is owed money.
◾
Leverage
Risk. Many derivatives do not require a payment up front equal
to the economic exposure created by holding a position in the derivative, which creates a form of leverage. As a result, an adverse change
in the value of the underlying asset could result in the Fund sustaining a loss that is substantially greater than the amount invested
in the derivative or the anticipated value of the underlying asset. In addition,
some derivatives have the potential for unlimited loss, regardless
of the size of the Fund’s initial investment. Leverage may therefore make the Fund’s returns more volatile and increase
the risk of loss. In certain market conditions, losses on derivative
instruments can grow larger while the value of the Fund’s other assets fall, resulting in the Fund’s derivative positions
becoming a larger percentage of the Fund’s investments.
◾
Liquidity
Risk. There is a smaller pool of buyers and sellers for certain
derivatives, particularly OTC derivatives, than more traditional investments such as stocks. These buyers and sellers are often financial
institutions that may be unable or unwilling to buy or sell derivatives during times of financial or market stress. Derivative
instruments
may therefore be less liquid than more traditional investments and the Fund may be unable to sell or exit its derivative positions at
a desirable time or price. This risk may be more acute under adverse market conditions, during which the Fund may be most in need of liquidating
its derivative positions. To the extent that the Fund is unable to exit a derivative position because of market illiquidity, the Fund
may not be able to prevent further losses of value in its derivatives holdings and the liquidity of the Fund and its ability to meet redemption
requests may be impaired to the extent that a substantial portion of the Fund’s otherwise liquid assets must be used as margin.
Another consequence of illiquidity is that the Fund may be required to hold a derivative instrument to maturity and take or make delivery
of the underlying asset that the Adviser would otherwise avoid.
◾
Forward
Foreign Currency Contracts Risk. Forward foreign currency contracts
are used to lock in the U.S. dollar price of a security denominated in a foreign currency or protect against possible losses from changes
in the relative value of the U.S. dollar against a foreign currency. They are subject to the risk that anticipated currency movements
will not be accurately predicted or do not correspond accurately to changes in the value of the fund's holdings, which could result in
losses and additional transaction costs. The use of forward contracts could reduce performance if there are unanticipated changes in currency
prices. A contract to sell a foreign currency would limit any potential gain that might be realized if the value of the currency increases.
A forward foreign currency contract may also result in losses in the event of a default or bankruptcy of the counterparty.
◾
Futures
Contracts Risk. The volatility of futures contracts prices has
been historically greater than the volatility of stocks and bonds. The liquidity of the futures market depends on participants entering
into offsetting transactions rather than making or taking delivery. To the extent participants decide to make or take delivery, liquidity
in the futures market could be reduced. In addition, futures exchanges often impose a maximum permissible price movement on each futures
contract for each trading session. The Fund may be disadvantaged if it is prohibited from executing a trade outside the daily permissible
price movement.
◾
Options
Risk. If the Fund sells a put option, there is a risk that the
Fund may be required to buy the underlying investment at a disadvantageous price. If the Fund sells a call option, there is a risk that
the Fund may be required to sell the underlying investment at a disadvantageous price. If the Fund sells a call option on an investment
that the Fund owns (a “covered call”) and the investment has increased in value when the option is exercised, the Fund will
be required to sell the investment at the call price and will not be able to realize any of the investment’s value above the call
price. Options may involve economic leverage, which could result in greater price volatility than other investments.
◾
Swap
Transactions Risk. Under U.S. financial reform legislation enacted
in 2010, certain types of swaps are required to be executed on a regulated market and cleared through a central clearing house counterparty,
which may entail further risks and costs for the Fund. Swap agreements are privately negotiated in the over-the-counter market and may
be entered into as a bilateral contract or may be centrally cleared. In a centrally cleared swap, immediately following execution of the
swap agreement, the swap agreement is submitted for clearing to a central clearing house counterparty, and the Fund faces the central
clearing house counterparty by means of an account with a futures commission merchant that is a member of the clearing house.
◾
Other
Risks. Compared to other types of investments, derivatives may
be harder to value and may also be less tax efficient, as described under the “Taxes” section of the prospectus. In addition,
changes in
10 Invesco
Core Plus Bond Fund
government
regulation of derivative instruments could affect the character, timing and amount of the Fund’s taxable income or gains, and may
limit or prevent the Fund from using certain types of derivative instruments as a part of its investment strategy, which could make the
investment strategy more costly to implement or require the Fund to change its investment strategy. Derivatives strategies may not
always be successful. For example, to the extent that the Fund uses derivatives for hedging or to gain or limit exposure to a particular
market or market segment, there may be imperfect correlation between the value of the derivative instrument and the value of the instrument
being hedged or the relevant market or market segment, in which case the Fund may not realize the intended benefits. There is also the
risk that during adverse market conditions, an instrument which would usually operate as a hedge provides no hedging benefits at all.
The Fund’s use of derivatives may be limited by the requirements for taxation of the Fund as a regulated investment company.
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.
Liquidity
Risk. The Fund may be unable to sell illiquid investments at the
time or price it desires and, as a result, could lose its entire investment in such investments. An investment may be illiquid due to
a lack of trading volume in the investment or if the investment is privately placed and not traded in any public market or is otherwise
restricted from trading. Liquid securities can become illiquid during periods of market stress. If a significant amount of the Fund’s
securities become illiquid, the Fund may not be able to timely pay redemption proceeds and may need to sell securities at significantly
reduced prices.
Rule
144A Securities and Other Exempt Securities Risk. The Fund may
invest in Rule 144A securities and other types of exempt securities, which are not registered for sale pursuant to an exemption from registration
under the Securities Act of 1933, as amended. These securities are also known as privately issued securities, and typically may be resold
only to qualified institutional buyers, or in a privately negotiated transaction, or to a limited number of purchasers, or in limited
quantities after they have been held for a specified period of time and other conditions are met for an exemption from registration. Although
such securities may be determined to be liquid in accordance with the requirements of Rule 22e-4 under the Investment Company Act of 1940,
as amended, if there are an insufficient number of qualified institutional buyers interested in purchasing such securities at a particular
time, the Fund may have difficulty selling such securities at a desirable time or price. As a result, the Fund’s investment in such
securities may be subject to increased liquidity risk. In addition, the issuers of Rule 144A securities may require their qualified institutional
buyers (such as the Fund) to keep certain offering information confidential, which could adversely affect the ability of the Fund to sell
such securities.
Restricted
Securities Risk. Limitations on the resale of restricted securities
may have an adverse effect on their marketability, and may prevent the Fund from disposing of them promptly at reasonable prices. There
can be no assurance that a trading market will exist at any time for any particular restricted security. Transaction costs may be higher
for restricted securities. Also, restricted securities may be difficult to value because market quotations may not be readily available,
and the securities may have significant volatility. In addition, the Fund may get only limited
information
about the issuer of a restricted security and therefore may be less able to predict a loss.
Municipal
Securities Risk. The risk of a municipal obligation generally depends
on the financial and credit status of the issuer. Constitutional amendments, legislative enactments, executive orders, administrative
regulations, voter initiatives, and the issuer’s regional economic conditions may affect the municipal security’s value, interest
payments, repayment of principal and the Fund’s ability to sell the security. Municipal obligations may be more susceptible to downgrades
or defaults during recessions or similar periods of economic stress. Municipal securities structured as revenue bonds are generally not
backed by the taxing power of the issuing municipality but rather the revenue from the particular project or entity for which the bonds
were issued. If the Internal Revenue Service determines that an issuer of a municipal security has not complied with applicable tax requirements,
interest from the security could be treated as taxable, which could result in a decline in the security’s value. In addition, there
could be changes in applicable tax laws or tax treatments that reduce or eliminate the current federal income tax exemption on municipal
securities or otherwise adversely affect the current federal or state tax status of municipal securities.
Zero
Coupon or Pay-In-Kind Securities Risk. Zero coupon and pay-in-kind
securities may be subject to greater fluctuation in value and less liquidity in the event of adverse market conditions than comparably
rated securities paying cash interest at regular interest payment periods. Prices on non-cash-paying instruments may be more sensitive
to changes in the issuer’s financial condition, fluctuation in interest rates and market demand/supply imbalances than cash-paying
securities with similar credit ratings, and thus may be more speculative. Investors may purchase zero coupon and pay-in-kind securities
at a price below the amount payable at maturity. Because such securities do not entitle the holder to any periodic payments of interest
prior to maturity, this prevents any reinvestment of interest payments at prevailing interest rates if prevailing interest rates rise.
The higher yields and interest rates on pay-in-kind securities reflect the payment deferral and increased credit risk associated with
such instruments and that such investments may represent a higher credit risk than coupon loans. Pay-in-kind securities may have a potential
variability in valuations because their continuing accruals require continuing judgments about the collectability of the deferred payments
and the value of any associated collateral. Special tax considerations are associated with investing in certain lower-grade securities,
such as zero coupon or pay-in-kind securities.
When-Issued,
Delayed Delivery and Forward Commitment Risks.
When-issued and delayed delivery transactions are subject to market
risk as the value or yield of a security at delivery may be more or less than the purchase price or the yield generally available on securities
when delivery occurs. In addition, the Fund is subject to counterparty risk because it relies on the buyer or seller, as the case may
be, to consummate the transaction, and failure by the counterparty to complete the transaction may result in the Fund missing the opportunity
of obtaining a price or yield considered to be advantageous. These transactions have a leveraging effect on the Fund because the Fund
commits to purchase securities that it does not have to pay for until a later date. These investments therefore increase the Fund’s
overall investment exposure and, as a result, its volatility. Typically, no income accrues on securities the Fund has committed to purchase
prior to the time delivery of the securities is made.
TBA
Transactions Risk. TBA transactions involve the risk that the securities
received may be less favorable than what was anticipated by the Fund when entering into the TBA transaction. TBA transactions also involve
the risk that the counterparty will fail to deliver the securities, exposing the Fund to further losses. Whether or not the Fund takes
delivery of the securities at the termination date of a TBA transaction, the Fund will nonetheless be exposed to changes in the value
of the underlying investments during the term of the agreement. If the Fund sells short TBA mortgages that it does not own and the mortgages
increase in value, the Fund may be required to pay a higher price than anticipated to purchase the
11 Invesco
Core Plus Bond Fund
deliverable
mortgages to settle the short sale and thereby incur a loss. A short position in TBA mortgages poses more risk than holding the same TBA
mortgages long. It is possible that the market value of the mortgage securities the Fund holds in long positions will decline at the same
time that the market value of the mortgage securities the Fund has sold short increases, thereby magnifying any losses. The more the Fund
pays to purchase the mortgage securities sold short, the more it will lose on the transaction, which adversely affects its share price.
The loss on a long position is limited to what the Fund originally paid for the TBA mortgage, together with any transaction costs. In
short transactions, there is no limit on how much the price of a security can increase, thus the Fund’s exposure is theoretically
unlimited. The Fund normally closes a short sale of TBA mortgages that it does not own by purchasing mortgage securities on the open market
and delivering them to the broker. The Fund may not always be able to complete or “close out” the short position by purchasing
mortgage securities at a particular time or at an acceptable price. The Fund incurs a loss if the Fund is required to buy the deliverable
mortgage securities at a time when they have appreciated in value from the date of the short sale. The Fund will incur increased transaction
costs associated with selling TBA mortgages short. In addition, taking short positions results in a form of leverage. As a result, changes
in the value of a Fund’s investments will have a larger effect on its share price than if it did not engage in these transactions.
Environmental,
Social and Governance (ESG) Considerations Risk. The ESG considerations
that may be assessed as part of a credit research process to implement the Fund's investment strategy in pursuit of its investment objective
may vary, and not every ESG factor may be identified or evaluated for every investment, and not every investment or issuer may be evaluated
for ESG considerations. The incorporation of ESG factors as part of a credit analysis may affect the Fund’s exposure to certain
issuers or industries and may not work as intended. The Fund may underperform other funds that do not incorporate ESG factors or that
use a different methodology to identify and/or incorporate ESG factors. Information used to evaluate such factors may not be readily available,
complete or accurate, and may vary across providers and issuers as ESG is not a uniformly defined characteristic, which could negatively
impact the ability to accurately assess credit quality, which could negatively impact the Fund’s performance. There is no guarantee
that the incorporation of ESG considerations will be additive to the Fund’s performance.
REIT
Risk/Real Estate Risk. Investments in real estate related instruments
may be adversely affected by economic, legal, cultural, environmental or technological factors that affect property values, rents or occupancies.
Real estate companies, including REITs or similar structures, tend to be small- and mid-cap companies and their shares may be more volatile
and less liquid than larger companies. The value of investments in real estate related companies may be affected by the quality of management,
the ability to repay loans, the utilization of leverage and financial covenants related thereto, whether the company carries adequate
insurance and environmental factors. If a real estate related company defaults on certain types of debt obligations held by the Fund,
the Fund may acquire real estate directly, which involves additional risks such as environmental liabilities; difficulty in valuing and
selling the real estate; and economic or regulatory changes.
Active
Trading Risk. Active trading of portfolio securities may result
in high brokerage costs, which may lower the Fund’s actual return. Active trading also may increase the proportion of the Fund’s
gains that are short term, which are taxed at a higher rate than long term gains.
Financial
Markets Regulatory Risk. Policy changes by the U.S. government
or its regulatory agencies and political events within the U.S. and abroad, changes to the monetary policy by the Federal Reserve or other
regulatory actions, the U.S. government’s inability at times to agree on a long-term budget and deficit reduction plan or other
legislation aimed at addressing financial or economic conditions, the threat of a federal government shutdown, and threats not to increase
or suspend the federal
government’s
debt limit, may affect investor and consumer confidence, increase volatility in the financial markets, perhaps suddenly and to a significant
degree, result in higher interest rates, and even raise concerns about the U.S. government’s credit rating and ability to service
its debt. Such changes and events may adversely impact the Fund’s operations, universe of potential investment options, and return
potential.
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 1555 Peachtree Street, N.E. Atlanta, Georgia 30309. The Adviser, as successor in interest to multiple
investment advisers, has been an investment adviser since 1976.
Sub-Advisers.
Invesco has entered into one or more Sub-Advisory Agreements with certain affiliates to serve as sub-advisers to the Fund (the Sub-Advisers).
Invesco may appoint the Sub-Advisers from time to time to provide discretionary investment management services, investment advice, and/or
order execution services to the Fund. The Sub-Advisers and the Sub-Advisory Agreements are described in the SAI.
Exclusion
of Adviser from Commodity Pool Operator Definition
With
respect to the Fund, the Adviser has claimed an exclusion from the definition of “commodity pool operator” (CPO) under the
Commodity Exchange Act (CEA) and the rules of the Commodity Futures Trading Commission (CFTC) and, therefore, is not subject to CFTC registration
or regulation as a CPO. In addition, the Adviser is relying upon a related exclusion from the definition of “commodity trading advisor”
(CTA) under the CEA and the rules of the CFTC with respect to the Fund.
The
terms of the CPO exclusion require the Fund, among other things, to
adhere to certain limits on its investments in “commodity interests.” Commodity interests include commodity futures, commodity
options and swaps, which in turn include non-deliverable forwards. The Fund is permitted to invest in these instruments as further described
in the Fund's SAI. However, the Fund is not intended as a vehicle for trading in the commodity futures, commodity options or swaps markets.
The CFTC has neither reviewed nor approved the Adviser’s reliance on these exclusions, or the Fund, its investment strategies or
this prospectus.
Adviser
Compensation
During
the fiscal year ended August 31, 2022, the Adviser received compensation of 0.36% of the Fund's average daily net assets, after fee waiver
and/or expense reimbursement, if any.
A
discussion regarding the basis for the Board’s approval of the investment
advisory agreement and investment sub-advisory agreements of
12 Invesco
Core Plus Bond Fund
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:
◾
Matthew
Brill, CFA, Portfolio Manager, who has been responsible for the Fund since 2015 and has been associated with Invesco and/or its affiliates
since 2013.
◾
Chuck
Burge, Portfolio Manager, who has been responsible for the Fund since 2009 and has been associated with Invesco and/or its affiliates
since 2002.
◾
Michael
Hyman, Portfolio Manager, who has been responsible for the Fund since 2013 and has been associated with Invesco and/or its affiliates
since 2013.
◾
Todd
Schomberg, CFA, Portfolio Manager, who has been responsible for the Fund since 2020 and has been associated with Invesco and/or its affiliates
since 2016.
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 4.25% initial sales charge as listed under the heading “Category II Initial
Sales Charges” in the “Shareholder Account Information—Initial Sales Charges (Class A Shares Only)” section of
the prospectus. Purchases of Class C shares are subject to a contingent deferred sales charge (CDSC) if you sell Class C shares within
one year of purchase; however, the CDSC shall not apply to the purchases of Class C shares where the selling broker-dealer was not paid
a commission at the time of purchase. For more information on CDSCs, see the “Shareholder Account Information—Contingent Deferred
Sales Charges (CDSCs)” section of this prospectus.
Dividends
and Distributions
The
Fund expects, based on its investment objective and strategies, that its distributions, if any, will consist primarily of ordinary income.
Dividends
The
Fund generally declares dividends from net investment income daily and pays them monthly.
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.
13 Invesco
Core Plus Bond Fund
Financial Highlights
The financial
highlights show the Fund’s financial history for the past five fiscal years or, if shorter, the period of operations of the Fund
or any of its share classes. The financial highlights table is intended to help you understand the Fund’s financial performance.
Certain information reflects financial results for a single Fund share.
The
total returns in the table represent the rate that an investor would have
earned (or lost) on an investment in the Fund (assuming reinvestment of all dividends and distributions).
This
information has been audited by PricewaterhouseCoopers LLP, an independent
registered public accounting firm, whose report, along with the Fund’s financial statements, is included in the Fund’s annual
report, which is available upon request.
|
|
Net
asset
value,
beginning
of
period |
Net
investment
income(a)
|
Net
gains
(losses)
on
securities
(both
realized
and
unrealized)
|
Total
from
investment
operations
|
Dividends
from
net
investment
income
|
Distributions
from
net
realized
gains
|
Return
of
capital
|
Total
distributions
|
Net
asset
value,
end
of
period |
Total
return
(b)
|
Net
assets,
end
of period
(000's
omitted) |
Ratio
of
expenses
to
average
net
assets
with
fee waivers
and/or
expenses
absorbed
|
Ratio
of
expenses
to
average net
assets
without
fee
waivers
and/or
expenses
absorbed
|
Ratio
of net
investment
income
to
average
net
assets |
Portfolio
turnover
(c)
|
|
Class
A | |||||||||||||||
|
Year
ended 08/31/22 |
$11.39
|
$0.24
|
$(1.83)
|
$(1.59)
|
$(0.24)
|
$(0.11)
|
$—
|
$(0.35)
|
$9.45
|
(14.19)%
|
$1,203,731
|
0.75%
|
0.81%
|
2.30%
|
321%
|
|
Year
ended 08/31/21 |
11.61
|
0.19
|
0.17
|
0.36
|
(0.22)
|
(0.36)
|
—
|
(0.58)
|
11.39
|
3.18
|
1,497,641
|
0.74
|
0.79
|
1.70
|
366
|
|
Year
ended 08/31/20 |
11.13
|
0.29
|
0.51
|
0.80
|
(0.32)
|
—
|
—
|
(0.32)
|
11.61
|
7.29
|
1,364,591
|
0.75
|
0.82
|
2.55
|
329
|
|
Year
ended 08/31/19 |
10.53
|
0.36
|
0.62
|
0.98
|
(0.32)
|
—
|
(0.06)
|
(0.38)
|
11.13
|
9.57
|
1,079,416
|
0.74
|
0.84
|
3.41
|
250
|
|
Year
ended 08/31/18 |
11.03
|
0.31
|
(0.48)
|
(0.17)
|
(0.32)
|
—
|
(0.01)
|
(0.33)
|
10.53
|
(1.51)
|
887,784
|
0.74
|
0.82
|
2.96
|
383
|
|
| |||||||||||||||
|
Class
C | |||||||||||||||
|
Year
ended 08/31/22 |
11.38
|
0.16
|
(1.81)
|
(1.65)
|
(0.17)
|
(0.11)
|
—
|
(0.28)
|
9.45
|
(14.76)
|
55,695
|
1.50
|
1.56
|
1.55
|
321
|
|
Year
ended 08/31/21 |
11.61
|
0.11
|
0.16
|
0.27
|
(0.14)
|
(0.36)
|
—
|
(0.50)
|
11.38
|
2.32
|
90,811
|
1.49
|
1.54
|
0.95
|
366
|
|
Year
ended 08/31/20 |
11.12
|
0.20
|
0.52
|
0.72
|
(0.23)
|
—
|
—
|
(0.23)
|
11.61
|
6.59
|
107,350
|
1.50
|
1.57
|
1.80
|
329
|
|
Year
ended 08/31/19 |
10.53
|
0.28
|
0.61
|
0.89
|
(0.24)
|
—
|
(0.06)
|
(0.30)
|
11.12
|
8.67
|
87,046
|
1.49
|
1.59
|
2.66
|
250
|
|
Year
ended 08/31/18 |
11.02
|
0.24
|
(0.48)
|
(0.24)
|
(0.24)
|
—
|
(0.01)
|
(0.25)
|
10.53
|
(2.16)
|
123,285
|
1.49
|
1.57
|
2.21
|
383
|
|
| |||||||||||||||
|
Class
R | |||||||||||||||
|
Year
ended 08/31/22 |
11.38
|
0.21
|
(1.81)
|
(1.60)
|
(0.22)
|
(0.11)
|
—
|
(0.33)
|
9.45
|
(14.33)
|
25,914
|
1.00
|
1.06
|
2.05
|
321
|
|
Year
ended 08/31/21 |
11.61
|
0.16
|
0.16
|
0.32
|
(0.19)
|
(0.36)
|
—
|
(0.55)
|
11.38
|
2.83
|
29,466
|
0.99
|
1.04
|
1.45
|
366
|
|
Year
ended 08/31/20 |
11.12
|
0.26
|
0.52
|
0.78
|
(0.29)
|
—
|
—
|
(0.29)
|
11.61
|
7.12
|
23,193
|
1.00
|
1.07
|
2.30
|
329
|
|
Year
ended 08/31/19 |
10.53
|
0.33
|
0.61
|
0.94
|
(0.29)
|
—
|
(0.06)
|
(0.35)
|
11.12
|
9.21
|
17,598
|
0.99
|
1.09
|
3.16
|
250
|
|
Year
ended 08/31/18 |
11.02
|
0.29
|
(0.47)
|
(0.18)
|
(0.30)
|
—
|
(0.01)
|
(0.31)
|
10.53
|
(1.67)
|
14,134
|
0.99
|
1.07
|
2.71
|
383
|
|
| |||||||||||||||
|
Class
Y | |||||||||||||||
|
Year
ended 08/31/22 |
11.40
|
0.27
|
(1.83)
|
(1.56)
|
(0.27)
|
(0.11)
|
—
|
(0.38)
|
9.46
|
(13.95)
|
961,066
|
0.50
|
0.56
|
2.55
|
321
|
|
Year
ended 08/31/21 |
11.62
|
0.22
|
0.17
|
0.39
|
(0.25)
|
(0.36)
|
—
|
(0.61)
|
11.40
|
3.43
|
1,407,185
|
0.49
|
0.54
|
1.95
|
366
|
|
Year
ended 08/31/20 |
11.14
|
0.31
|
0.51
|
0.82
|
(0.34)
|
—
|
—
|
(0.34)
|
11.62
|
7.56
|
1,170,121
|
0.50
|
0.57
|
2.80
|
329
|
|
Year
ended 08/31/19 |
10.54
|
0.39
|
0.62
|
1.01
|
(0.35)
|
—
|
(0.06)
|
(0.41)
|
11.14
|
9.84
|
892,952
|
0.49
|
0.59
|
3.66
|
250
|
|
Year
ended 08/31/18 |
11.03
|
0.35
|
(0.48)
|
(0.13)
|
(0.35)
|
—
|
(0.01)
|
(0.36)
|
10.54
|
(1.17)
|
932,839
|
0.49
|
0.57
|
3.21
|
383
|
|
| |||||||||||||||
|
Class
R5 | |||||||||||||||
|
Year
ended 08/31/22 |
11.38
|
0.26
|
(1.81)
|
(1.55)
|
(0.27)
|
(0.11)
|
—
|
(0.38)
|
9.45
|
(13.89)
|
14,000
|
0.50
|
0.52
|
2.55
|
321
|
|
Year
ended 08/31/21 |
11.61
|
0.22
|
0.16
|
0.38
|
(0.25)
|
(0.36)
|
—
|
(0.61)
|
11.38
|
3.35
|
13,274
|
0.49
|
0.51
|
1.95
|
366
|
|
Year
ended 08/31/20 |
11.12
|
0.31
|
0.52
|
0.83
|
(0.34)
|
—
|
—
|
(0.34)
|
11.61
|
7.65
|
11,555
|
0.50
|
0.54
|
2.80
|
329
|
|
Year
ended 08/31/19 |
10.53
|
0.39
|
0.61
|
1.00
|
(0.35)
|
—
|
(0.06)
|
(0.41)
|
11.12
|
9.75
|
7,586
|
0.49
|
0.54
|
3.66
|
250
|
|
Year
ended 08/31/18 |
11.03
|
0.34
|
(0.48)
|
(0.14)
|
(0.35)
|
—
|
(0.01)
|
(0.36)
|
10.53
|
(1.27)
|
5,660
|
0.49
|
0.50
|
3.21
|
383
|
|
| |||||||||||||||
|
Class
R6 | |||||||||||||||
|
Year
ended 08/31/22 |
11.38
|
0.27
|
(1.81)
|
(1.54)
|
(0.28)
|
(0.11)
|
—
|
(0.39)
|
9.45
|
(13.85)
|
2,406,339
|
0.45
|
0.45
|
2.60
|
321
|
|
Year
ended 08/31/21 |
11.60
|
0.23
|
0.17
|
0.40
|
(0.26)
|
(0.36)
|
—
|
(0.62)
|
11.38
|
3.51
|
2,948,067
|
0.41
|
0.42
|
2.03
|
366
|
|
Year
ended 08/31/20 |
11.12
|
0.32
|
0.51
|
0.83
|
(0.35)
|
—
|
—
|
(0.35)
|
11.60
|
7.62
|
2,746,570
|
0.45
|
0.45
|
2.85
|
329
|
|
Year
ended 08/31/19 |
10.52
|
0.39
|
0.62
|
1.01
|
(0.35)
|
—
|
(0.06)
|
(0.41)
|
11.12
|
9.91
|
2,159,063
|
0.44
|
0.45
|
3.71
|
250
|
|
Year
ended 08/31/18 |
11.02
|
0.35
|
(0.48)
|
(0.13)
|
(0.36)
|
—
|
(0.01)
|
(0.37)
|
10.52
|
(1.21)
|
2,120,867
|
0.43
|
0.44
|
3.27
|
383
|
|
| |||||||||||||||
|
(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. |
14 Invesco
Core Plus Bond 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
|
0.76%
|
0.82%
|
0.82%
|
0.82%
|
0.82%
|
0.82%
|
0.82%
|
0.82%
|
0.82%
|
0.82%
|
|
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 |
(0.19%)
|
3.98%
|
8.33%
|
12.86%
|
17.57%
|
22.49%
|
27.61%
|
32.94%
|
38.50%
|
44.29%
|
|
End
of Year Balance |
$9,980.98
|
$10,398.18
|
$10,832.83
|
$11,285.64
|
$11,757.38
|
$12,248.84
|
$12,760.84
|
$13,294.24
|
$13,849.94
|
$14,428.87
|
|
Estimated
Annual Expenses |
$499.31
|
$83.55
|
$87.05
|
$90.69
|
$94.48
|
$98.43
|
$102.54
|
$106.83
|
$111.29
|
$115.94
|
|
| ||||||||||
|
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
|
0.76%
|
0.82%
|
0.82%
|
0.82%
|
0.82%
|
0.82%
|
0.82%
|
0.82%
|
0.82%
|
0.82%
|
|
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 |
4.24%
|
8.60%
|
13.14%
|
17.87%
|
22.79%
|
27.93%
|
33.27%
|
38.84%
|
44.65%
|
50.69%
|
|
End
of Year Balance |
$10,424.00
|
$10,859.72
|
$11,313.66
|
$11,786.57
|
$12,279.25
|
$12,792.52
|
$13,327.25
|
$13,884.33
|
$14,464.69
|
$15,069.32
|
|
Estimated
Annual Expenses |
$77.61
|
$87.26
|
$90.91
|
$94.71
|
$98.67
|
$102.79
|
$107.09
|
$111.57
|
$116.23
|
$121.09
|
|
| ||||||||||
|
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
|
1.51%
|
1.57%
|
1.57%
|
1.57%
|
1.57%
|
1.57%
|
1.57%
|
1.57%
|
0.82%
|
0.82%
|
|
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 |
3.49%
|
7.04%
|
10.71%
|
14.51%
|
18.44%
|
22.50%
|
26.70%
|
31.05%
|
36.52%
|
42.23%
|
|
End
of Year Balance |
$10,349.00
|
$10,703.97
|
$11,071.12
|
$11,450.86
|
$11,843.62
|
$12,249.86
|
$12,670.03
|
$13,104.61
|
$13,652.38
|
$14,223.05
|
|
Estimated
Annual Expenses |
$153.63
|
$165.27
|
$170.93
|
$176.80
|
$182.86
|
$189.13
|
$195.62
|
$202.33
|
$109.70
|
$114.29
|
|
| ||||||||||
|
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
|
1.01%
|
1.07%
|
1.07%
|
1.07%
|
1.07%
|
1.07%
|
1.07%
|
1.07%
|
1.07%
|
1.07%
|
|
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 |
3.99%
|
8.08%
|
12.32%
|
16.74%
|
21.33%
|
26.09%
|
31.05%
|
36.20%
|
41.55%
|
47.12%
|
|
End
of Year Balance |
$10,399.00
|
$10,807.68
|
$11,232.42
|
$11,673.86
|
$12,132.64
|
$12,609.45
|
$13,105.00
|
$13,620.03
|
$14,155.30
|
$14,711.60
|
|
Estimated
Annual Expenses |
$103.01
|
$113.46
|
$117.91
|
$122.55
|
$127.36
|
$132.37
|
$137.57
|
$142.98
|
$148.60
|
$154.44
|
|
| ||||||||||
|
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
|
0.51%
|
0.57%
|
0.57%
|
0.57%
|
0.57%
|
0.57%
|
0.57%
|
0.57%
|
0.57%
|
0.57%
|
|
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 |
4.49%
|
9.12%
|
13.95%
|
19.00%
|
24.27%
|
29.78%
|
35.53%
|
41.53%
|
47.80%
|
54.35%
|
|
End
of Year Balance |
$10,449.00
|
$10,911.89
|
$11,395.29
|
$11,900.10
|
$12,427.27
|
$12,977.80
|
$13,552.72
|
$14,153.10
|
$14,780.09
|
$15,434.84
|
|
Estimated
Annual Expenses |
$52.14
|
$60.88
|
$63.58
|
$66.39
|
$69.33
|
$72.40
|
$75.61
|
$78.96
|
$82.46
|
$86.11
|
|
| ||||||||||
|
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
|
0.51%
|
0.53%
|
0.53%
|
0.53%
|
0.53%
|
0.53%
|
0.53%
|
0.53%
|
0.53%
|
0.53%
|
|
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 |
4.49%
|
9.16%
|
14.04%
|
19.14%
|
24.46%
|
30.03%
|
35.84%
|
41.91%
|
48.25%
|
54.88%
|
|
End
of Year Balance |
$10,449.00
|
$10,916.07
|
$11,404.02
|
$11,913.78
|
$12,446.32
|
$13,002.67
|
$13,583.89
|
$14,191.09
|
$14,825.44
|
$15,488.13
|
|
Estimated
Annual Expenses |
$52.14
|
$56.62
|
$59.15
|
$61.79
|
$64.55
|
$67.44
|
$70.45
|
$73.60
|
$76.89
|
$80.33
|
|
| ||||||||||
|
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
|
0.46%
|
0.46%
|
0.46%
|
0.46%
|
0.46%
|
0.46%
|
0.46%
|
0.46%
|
0.46%
|
0.46%
|
|
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 |
4.54%
|
9.29%
|
14.25%
|
19.43%
|
24.86%
|
30.53%
|
36.45%
|
42.65%
|
49.12%
|
55.89%
|
|
End
of Year Balance |
$10,454.00
|
$10,928.61
|
$11,424.77
|
$11,943.46
|
$12,485.69
|
$13,052.54
|
$13,645.12
|
$14,264.61
|
$14,912.23
|
$15,589.24
|
|
Estimated
Annual Expenses |
$47.04
|
$49.18
|
$51.41
|
$53.75
|
$56.19
|
$58.74
|
$61.40
|
$64.19
|
$67.11
|
$70.15
|
|
| ||||||||||
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.
15 Invesco
Core Plus Bond 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 all of the Invesco Funds and their share classes that have different fees and expenses.
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 |
|
|
▪ 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) |
A-1 The
Invesco Funds
MCF—12/22
|
Share
Classes |
|
|
|
|
|
Class
A |
Class
C |
Class
R |
Class
Y |
Class
R5 and R6 |
|
|
▪ 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 International Core Equity 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 a specific
Fund may make additional purchases into Class AX and CX, respectively, of such specific Fund. All references in this “Shareholder
Account Information” section of this prospectus to Class A, C or R shares of the Invesco Funds shall include Class AX
(excluding Invesco Government Money Market Fund), or CX shares, respectively, of the Invesco Funds, unless otherwise noted. All references
in this “Shareholder Account Information” section of this prospectus to Invesco Cash Reserve Shares of Invesco Government
Money Market Fund shall include Class AX shares of Invesco Government Money Market Fund, unless otherwise noted.
Class P
Shares
In
addition to the other share classes discussed herein, the Invesco Summit Fund offers Class P shares, which were historically sold
only through the AIM Summit Investors Plans I and II (each a Plan and, collectively, the Summit Plans). Class P shares are sold with
no initial sales charge and have a 12b-1 fee of 0.10%. However, Class P shares are not sold to members of the general public. Only
shareholders who had accounts in the Summit Plans at the close of business on December 8, 2006 may purchase Class P shares and
only until the total of their combined investments in the Summit Plans and in Class P shares directly equals the face amount of their
former Plan under the 30 year extended investment option. The face amount of a Plan is the combined total of all scheduled monthly
investments under the Plan. For a Plan with a scheduled monthly investment of $100.00, the face amount would have been $36,000.00 under
the 30 year extended investment option.
Class R
Shares
Class R
shares are intended for 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 (except for the Invesco Master Loan Fund) are available for use by Employer Sponsored Retirement and Benefit
Plans, held either at the plan level or through omnibus accounts, that generally process no more than one net redemption and one net purchase
transaction each day.
Class
R5 and R6 shares of the Funds are also available to institutional investors.
Institutional investors are: banks, trust companies, collective trust funds, entities acting for the account of a public entity (e.g.,
Taft-Hartley funds, states, cities or government agencies), funds of funds or other pooled investment vehicles, 529 college savings plans,
financial intermediaries and corporations investing for their own accounts, endowments and foundations. For information regarding investment
minimums for Class R5 and R6 shares, please see “Minimum Investments” below.
Class
R6 shares of the Funds are also available through an intermediary that
has agreed with Invesco Distributors, Inc. to make such shares
A-2 The
Invesco Funds
available
for use in retail omnibus accounts that generally process no more than one net redemption and one net purchase transaction each day.
The
Invesco Master Loan Fund is only available for purchase by other Funds
in the Invesco fund family and other Invesco pooled investment vehicles.
Shareholders
eligible to purchase Class R6 Shares must meet the requirements
specified by their intermediary. Not all intermediaries offer Class R6 Shares to their customers.
Class S
Shares
Class S
shares are limited to investors who purchase shares with the proceeds received from a systematic contractual investment plan redemption
within the 12 months prior to purchasing Class S shares, and who purchase through an approved financial intermediary that has
an agreement with the distributor to sell Class S shares. Class S shares are not otherwise sold to members of the general public.
An investor purchasing Class S shares will not pay an initial sales charge. The investor will no longer be eligible to purchase additional
Class S shares at that point where the value of the contributions to the prior systematic contractual investment plan combined with
the subsequent Class S share contributions equals the face amount of what would have been the investor’s systematic contractual
investment plan under the 30-year investment option. The face amount of a systematic contractual investment plan is the combined total
of all scheduled monthly investments under that plan. For a plan with a scheduled monthly investment of $100.00, the face amount would
have been $36,000.00 under the 30-year extended investment option.
Class Y
Shares
Class
Y shares are available to (i) investors who purchase through an account that is charged an asset-based fee or commission by a financial
intermediary, including through brokerage platforms, where a broker is acting as the investor’s agent, that may require the payment
by the investor of a commission and/or other form of compensation to that broker, (ii) endowments, foundations, or Employer Sponsored
Retirement and Benefit Plans (with the exception of “Solo 401(k)” Plans and 403(b) custodial accounts held directly at Invesco),
(iii) banks or bank trust departments acting on their own behalf or as trustee or manager for trust accounts, or (iv) any current, former
or retired trustee, director, officer or employee (or immediate family members of a current, former or retired trustee, director, officer
or employee) of any Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
Subject
to any conditions or limitations imposed on the servicing of Class
Y shares by your financial adviser, if you received Class Y shares as a result of a merger or reorganization of a predecessor fund into
any of the Funds, you will be permitted to make additional Class Y share purchases. In addition, you will be permitted to make additional
Class Y shares purchases if you owned Class Y shares in a “Solo 401(k)” Plan or 403(b) custodial account held directly at
Invesco if you held such shares in your account on or prior to May 24, 2019.
Investor
Class Shares
Investor
Class shares are sold with no initial sales charge and have a maximum 12b-1 fee of 0.25%. Only the following persons may purchase Investor
Class shares:
◾
Investors
who established accounts prior to April 1, 2002, in Investor Class shares with Invesco Distributors, Inc. (Invesco Distributors) who have
continuously maintained an account in Investor Class shares (this includes anyone listed in the registration of an account, such as a
joint owner, trustee or custodian, and immediate family members of such persons) without a designated intermediary. These investors are
referred to as “Investor Class grandfathered investors.”
◾
Customers
of a financial intermediary that has had an agreement with the Funds’ distributor or any Funds that offered Investor Class shares
prior to April 1, 2002, that has continuously maintained such agreement. These intermediaries are referred to as “Investor
Class grandfathered intermediaries.”
◾
Any
current, former or retired trustee, director, officer or employee (or immediate family member of a current, former or retired trustee,
director, officer or employee) of any Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
For
additional shareholder eligibility requirements with respect to Invesco
Premier Portfolio, please see “Shareholder Account Information – Purchasing Shares and Shareholder Eligibility – Invesco
Premier Portfolio.”
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.
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 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
A-4 The
Invesco Funds
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.
Merrill
Lynch
Shareholders
purchasing Fund shares through a Merrill
Lynch platform
or account will be eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at Merrill Lynch
◾
Employer-sponsored
retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to fund those plans,
provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the plan;
◾
Shares
purchased by a 529 Plan (does not include 529 Plan unit or 529-specific share classes or equivalents);
◾
Shares
purchased through a Merrill Lynch affiliated investment advisory program;
◾
Shares
exchanged due to the holdings moving from a Merrill Lynch affiliated investment advisory program to a Merrill Lynch brokerage (non-advisory)
account pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers;
◾
Shares
purchased by third party investment advisors on behalf of their advisory clients through Merrill Lynch’s platform;
◾
Shares
of funds purchased through the Merrill Edge Self-Directed platform (if applicable);
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not
any other fund within the fund family);
◾
Shares
exchanged from Class C (i.e.
level-load) shares of the same fund pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers;
◾
Employees
and registered representatives of Merrill Lynch or its affiliates and their family members;
◾
Directors
or Trustees of the Fund, and employees of the Fund’s investment adviser or any of its affiliates, as described in this prospectus;
and
◾
Eligible
shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days
following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to
a front-end or deferred sales load (known as Rights of Reinstatement). Automated transactions (i.e. systematic purchases and withdrawals)
and purchases made after shares are automatically sold to pay Merrill Lynch’s account maintenance fees are not eligible for reinstatement.
◾
CDSC
Waivers on A and C Shares available at Merrill Lynch
◾
Death
or disability of the shareholder;
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund’s prospectus;
◾
Return
of excess contributions from an IRA Account;
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts pursuant to the Internal Revenue Code;
◾
Shares
sold to pay Merrill Lynch fees but only if the transaction is initiated by Merrill Lynch;
◾
Shares
acquired through a right of reinstatement;
◾
Shares
held in retirement brokerage accounts, that are converted to a lower cost share class due to transfer to a fee based account or platform
(applicable to A and C shares only); and
◾
Shares
received through an exchange due to the holdings moving from a Merrill Lynch affiliated investment advisory program to a Merrill Lynch
brokerage (non-advisory) account pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers.
◾
Front-end
load Discounts Available at Merrill Lynch: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this prospectus;
◾
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts as described in the Fund’s prospectus will be automatically
calculated based on the aggregated holding of fund family assets held by accounts (including 529 program holdings, where applicable) within
the purchaser’s household at Merrill Lynch. Eligible fund family assets not held at Merrill Lynch may be included in the ROA calculation
only if the shareholder notifies his or her financial advisor about such assets; and
◾
Letters
of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Merrill Lynch, over
a 13-month period of time (if applicable).
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).
A-5 The
Invesco Funds
Morgan
Stanley Wealth Management
Shareholders
purchasing Fund shares through a Morgan Stanley
Wealth Management transactional brokerage account will be eligible
only for the following front-end sales charge waivers with respect to Class A shares, which may differ from and may be more limited than
those disclosed elsewhere in this Fund’s Prospectus or SAI.
◾
Front-end
Sales Charge Waivers on Class A Shares available at Morgan Stanley Wealth Management
◾
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and
defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs, SAR-SEPs
or Keogh plans;
◾
Morgan
Stanley employee and employee-related accounts according to Morgan Stanley’s account linking rules;
◾
Shares
purchased through reinvestment of dividends and capital gains distributions when purchasing shares of the same fund;
◾
Shares
purchased through a Morgan Stanley self-directed brokerage account;
◾
Class
C (i.e., level-load) shares that are no longer subject to a contingent deferred sales charge and are converted to Class A shares of the
same fund pursuant to Morgan Stanley Wealth Management’s share class conversion program; and
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (i) the repurchase occurs within 90 days following the
redemption, (ii) the redemption and purchase occur in the same account, and (iii) redeemed shares were subject to a front-end or deferred
sales charge.
Raymond
James Financial Services, Inc.
Shareholders
purchasing Fund shares through a Raymond
James Financial Services, Inc., Raymond James affiliates and each
entity’s affiliates (Raymond James) platform or account, or through an introducing broker-dealer or independent registered investment
adviser for which Raymond James provides trade execution, clearance, and/or custody services, will be eligible only for the following
load waivers (front-end sales charge waivers and contingent deferred, or back-end, sales charge waivers) and discounts, which may differ
from those disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
sales load waivers on Class A shares available at Raymond James
◾
Shares
purchased in an investment advisory program.
◾
Shares
purchased within the same fund family through a systematic reinvestment of capital gains distributions and dividend distributions.
◾
Employees
and registered representatives of Raymond James or its affiliates and their family members as designated by Raymond James.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (known as Rights of Reinstatement).
◾
A
shareholder in the Fund’s Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate
share class) of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures
of Raymond James.
◾
CDSC
Waivers on Classes A and C shares available at Raymond James
◾
Death
or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the fund’s prospectus.
◾
Return
of excess contributions from an IRA Account.
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based
on applicable IRS regulations as described in the fund’s prospectus.
◾
Shares
sold to pay Raymond James fees but only if the transaction is initiated by Raymond James.
◾
Shares
acquired through a right of reinstatement.
◾
Front-end
load discounts available at Raymond James: breakpoints, rights of accumulation, and/or letters of intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of
fund family assets held by accounts within the purchaser’s household at Raymond James. Eligible fund family assets not held at Raymond
James may be included in the calculation of rights of accumulation only if the shareholder notifies his or her financial advisor about
such assets.
◾
Letters
of intent which allow for breakpoint discounts based on anticipated purchases within a fund family, over a 13-month time period. Eligible
fund family assets not held at Raymond James may be included in the calculation of letters of intent only if the shareholder notifies
his or her financial advisor about such assets.
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.
A-6 The
Invesco Funds
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.
◾
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.
Oppenheimer
& Co. Inc. (“OPCO”)
Shareholders
purchasing Fund shares through an OPCO
platform or account are eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund's prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at OPCO
◾
Employer-sponsored
retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to
fund
those plans, provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the
plan
◾
Shares
purchased by or through a 529 Plan
◾
Shares
purchased through an OPCO affiliated investment advisory program
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not
any other fund within the fund family)
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (known as Rights of Reinstatement).
◾
A
shareholder in the Fund's Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate share
class) of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures of OPCO
◾
Employees
and registered representatives of OPCO or its affiliates and their family members
◾
Directors
or Trustees of the Fund, and employees of the Fund's investment adviser or any of its affiliates, as described in this prospectus
◾
CDSC
Waivers on A and C Shares available at OPCO
◾
Death
or disability of the shareholder
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund's prospectus
◾
Return
of excess contributions from an IRA Account
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based
on applicable IRS regulations as described in the prospectus
◾
Shares
sold to pay OPCO fees but only if the transaction is initiated by OPCO Shares acquired through a right of reinstatement
◾
Front-end
load Discounts Available at OPCO: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding
of fund family assets held by accounts within the purchaser's household at OPCO. Eligible fund family assets not held at OPCO may be included
in the ROA calculation only if the shareholder notifies his or her financial advisor about such assets.
Robert
W. Baird & Co. Incorporated (“Baird”)
Shareholders
purchasing fund shares through a Baird
platform or account will only be eligible for the following sales charge waivers (front-end sales charge waivers and CDSC waivers) and
discounts, which may differ from those disclosed elsewhere in this prospectus or the SAI.
◾
Front-End
Sales Charge Waivers on Class A-shares Available at Baird
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund.
◾
Shares
purchased by employees and registered representatives of Baird or its affiliate and their family members as designated by Baird.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales charge (known as rights of reinstatement).
◾
A
shareholder in the Fund’s Class C Shares will have their shares converted at net asset value to Class A shares of the fund if the
shares are no longer subject to CDSC and the conversion is in line with the policies and procedures of Baird.
◾
Employer-sponsored
retirement plans or charitable accounts in a transactional brokerage account at Baird, including 401(k) plans, 457 plans, employer-sponsored
403(b) plans, profit sharing and money
A-7 The
Invesco Funds
purchase
pension plans and defined benefit plans. For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs,
Simple IRAs or SAR-SEPs.
◾
CDSC
Waivers on Classes A and C shares Available at Baird
◾
Shares
sold due to death or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund’s Prospectus.
◾
Return
of excess contributions from an IRA Account.
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching age 72 as described in
the Fund’s prospectus.
◾
Shares
sold to pay Baird fees but only if the transaction is initiated by Baird.
◾
Shares
acquired through a right of reinstatement.
◾
Front-End
Sales Charge Discounts Available at Baird: Breakpoints, Rights of Accumulation and/or letters of intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of
fund family assets held by accounts within the purchaser’s household at Baird. Eligible fund family assets not held at Baird may
be included in the rights of accumulation calculation only if the shareholder notifies his or her financial advisor about such assets.
◾
Letters
of Intent (LOI) allow for breakpoint discounts based on anticipated purchases of within a fund family through Baird, over a 13-month period
of time.
Edward
D. Jones & Co., L.P. (“Edward Jones”)
Policies
Regarding Transactions Through Edward Jones
The
following information has been provided by Edward Jones:
The
following information supersedes prior information with respect to transactions
and positions held in fund shares through an Edward Jones system. Shareholders purchasing Fund shares through the Edward
Jones commission
and fee-based platforms will be eligible for the following load waivers (front- end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund's prospectus or statement of additional
information (“SAI”). 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 (including holdings of 529 Plans where Invesco serves as primary distributor), 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.
◾
Front-end
sales load waivers on Class A shares available at Edward Jones
◾
Associates
of Edward Jones and its affiliates and their family members who are 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: 1) the proceeds are
from the sale of shares within 60 days of the purchase, and 2) the sale and purchase are made in the same share class and the same account
or the purchase is made in an individual retirement account with proceeds from liquidations in a non-retirement account.
◾
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.
◾
CDSC
Waivers on Classes A and C shares available at Edward Jones
◾
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
sold 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 the qualified age based on applicable IRS regulations.
◾
Shares
sold 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 Minimum Balances, as described below.
◾
Front-end
load discounts available at Edward Jones: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoint
pricing, otherwise known as volume pricing, at dollar thresholds as described in the prospectus.
◾
Rights
of Accumulation (“ROA”) which entitles the shareholder to the applicable sales charge on a purchase of Class A shares will
be determined by taking into account all share classes (except certain money market funds and any assets held in group retirement plans)
of Invesco Funds (including holdings of 529 Plans where Invesco serves as primary distributor) 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).
◾
Letters
of Intent (“LOI”) allow shareholders to receive 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.
Other
Important Information Regarding Transactions Through Edward
Jones
Minimum
Purchase Amounts
•
Initial
purchase minimum: $250
•
Subsequent
purchase minimum: none
A-8 The
Invesco Funds
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.
Stifel,
Nicolaus & Company (“Stifel”)
Shareholders
purchasing Fund shares through a Stifel
platform or account will be eligible only for the following front-end sales charge waivers and discounts, which may differ from those
disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at Stifel: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this 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 Stifel. Eligible
fund family assets not held at Stifel may be included in the ROA calculation only if the shareholder notifies his or her financial advisor
about such assets; and
◾
Letters
of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Stifel, over a 13-month
period of time (if applicable).
◾
Shares
converted from Class C (i.e. level-load) shares of the same fund pursuant to Stifel policies relating to sales load discounts and waivers.
PFS
Investments Inc. (“PFSI”)
Policies
Regarding Transactions Through PFSI
The
following information supersedes all prior information with respect to transactions and positions held in fund shares purchased through
PFSI and held on the mutual fund platform of its affiliate, Primerica Shareholder Services (“PSS”). Clients of PFSI (also
referred to as “shareholders”) purchasing fund shares on the PSS platform are eligible only for the following share classes,
sales charge discounts (also referred to as “breakpoints”) and waivers, which can differ from share classes, discounts and
waivers described elsewhere in this prospectus or the related statement of additional information (“SAI”) or through another
broker-dealer. In all instances, it is the shareholder’s responsibility to inform PFSI at the time of a purchase of all holdings
of Invesco Funds on the PSS platform, or other facts qualifying the purchaser for discounts or waivers. PFSI may request reasonable documentation
of such facts, and condition the granting of any discount or waiver on the timely receipt of such documents. Shareholders should contact
PSS if they have questions regarding their eligibility for these discounts and waivers.
Share
Classes
◾
Class
A shares: in non-retirement accounts, individual retirement accounts (IRA), SEP IRAs, SIMPLE IRAs, Keogh Plans, and all other account
types unless expressly provided for below.
◾
Class
C shares: only in accounts with existing Class C share holdings.
Breakpoints
◾
Breakpoint
pricing at dollar thresholds as described in the prospectus of the fund you are purchasing.
Rights
of Accumulation (“ROA”)
◾
The
applicable sales charge on a purchase of Class A shares is determined by taking into account all share classes (except any assets held
in group retirement plans) of Invesco Funds held by the shareholder on the PSS Platform. The inclusion of eligible fund family assets
in the ROA calculation is dependent on the shareholder notifying PFSI of such assets at the time of calculation. Shares of money market
funds are
included
only if such shares were acquired in exchange for shares of another Invesco Fund purchased with a sales charge. No shares of Invesco Funds
held by the shareholder away from the PSS platform will be granted ROA with shares of any Invesco Fund purchased on the PSS platform.
◾
Any
SEP IRA plan, any SIMPLE IRA plan or any Payroll Deduction plan (“PDP”) on the PSS platform will be defaulted to plan-level
grouping for purposes of ROA, which allows each participating employee ROA with all other eligible shares held in plan accounts on the
PSS platform. At any time, a participating employee may elect to exercise a one-time option to change grouping for purposes of ROA to
shareholder- level grouping, which allows the plan account of the electing employee ROA with her other eligible holdings on the PSS platform,
but not with all other eligible participant holdings in the plan. Eligible shares held in plan accounts electing shareholder-level grouping
will not be available for purposes of ROA to plan accounts electing plan-level grouping.
◾
ROA
is determined by calculating the higher of cost minus redemptions or current market value (current shares x NAV).
Letter
of Intent (“LOI”)
◾
By
executing a LOI, shareholders can receive the sales charge and breakpoint discounts for purchases shareholders intend to make over a 13-month
period through PFSI, from the date PSS receives the LOI. The purchase price of the LOI is determined by calculating the higher of cost
or market value of qualifying holdings at LOI initiation in combination with the dollar amount the shareholder intends to invest over
a 13-month period to arrive at total investment for purposes of determining any breakpoint discount and the applicable front-end sales
charge. Each purchase the shareholder makes during that 13-month period will receive the sales charge and breakpoint discount that applies
to the projected total investment.
◾
Only
holdings of Invesco Funds on the PSS platform are eligible for inclusion in the LOI calculation and the shareholder must notify PFSI of
all eligible assets at the time of calculation.
◾
Purchases
made before the LOI is received by PSS are not adjusted under the LOI, and the LOI will not reduce any sales charge previously paid. Sales
charges will be automatically adjusted if the total purchases required by the LOI are not met.
◾
If
an employer maintaining a SEP IRA plan, SIMPLE IRA plan or non-IRA PDP on the PSS platform has elected to establish or change ROA for
the accounts associated with the plan to a plan-level grouping, LOIs will also be at the plan-level and may only be established by the
employer. LOIs are not available to PDP IRA plans on the PSS platform with plan-level grouping for purposes of ROA, but are available
to any participating employee that elects shareholder-level grouping for purposes of ROA.
Sales
Charge Waivers
Sales
charges are waived for the following shareholders and in the following
situations:
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment.
◾
Shares
purchased with the proceeds of redeemed shares of the same fund family so long as the following conditions are met: 1) the proceeds are
from the sale of shares within 90 days of the purchase, 2) the sale and purchase are made in the same share class and the same account
or the purchase is made in an individual retirement account with proceeds from liquidations in a non-retirement account, and 3) the redeemed
shares were subject to a front-end or deferred sales load, Automated transactions (i.e. systematic purchases and withdrawals), full or
partial transfers or rollovers of retirement accounts, and purchases made after shares are automatically sold to pay account maintenance
fees are not eligible for this sales charge waiver.
◾
Shares
exchanged into Class A shares from another share class so long as the exchange is into the same fund and was initiated at the discretion
of PFSI. PFSI is responsible for any remaining CDSC due to the fund company, if applicable. Any future purchases are subject to the applicable
sales charge as disclosed in the prospectus.
Policies
Regarding Fund Purchases Through PFSI That Are Not Held
on the PSS Platform
A-9 The
Invesco Funds
◾
Class
R shares
are available through PFSI only in 401(k) plans covering a business owner with no employees, commonly referred to as a one-participant
401(k) plan or solo 401(k).
UBS
Financial Services Inc. (“UBS”)
Pursuant
to an agreement with the Distributor, UBS may offer Class Y
shares
to its retail brokerage clients whose shares are held in omnibus
accounts at UBS, or its designee. For these clients, UBS may charge commissions or transaction fees with respect to brokerage transactions
in Class Y shares. The
minimum investment for Class Y shares is waived for transactions through such brokerage platforms at UBS. Please contact your UBS representative
for more information about these fees and other eligibility requirements.
Qualifying
for Reduced Sales Charges and Sales Charge Exceptions
The
following types of accounts qualify for reduced sales charges or sales charge exceptions under ROAs and LOIs:
1.
an
individual account owner;
2.
immediate
family of the individual account owner (which includes the individual’s spouse or domestic partner; the individual’s children,
step-children or grandchildren; the spouse or domestic partner of the individual’s children, step-children or grandchildren; the
individual’s parents and step-parents; the parents or step-parents of the individual’s spouse or domestic partner; the individual’s
grandparents; and the individual’s siblings);
3.
a
Retirement and Benefit Plan so long as the plan is established exclusively for the benefit of an individual account owner; and
4.
a
Coverdell Education Savings Account (Coverdell ESA), maintained pursuant to Section 530 of the Code (in either case, the account
must be established by an individual account owner or have an individual account owner named as the beneficiary thereof).
Alternatively,
an Employer Sponsored Retirement and Benefit Plan (but not including
plans utilizing the Invesco 403(b)(7) Custodial Account program, or the individual custodial accounts thereunder) or Employer Sponsored
IRA may be eligible to purchase shares pursuant to a ROA at the plan level, and receive a reduced applicable initial sales charge for
a new purchase based on the total value of the current purchase and the value of other shares owned by the plan’s participants if:
a)
the
employer or plan sponsor submits all contributions for all participating employees in a single contribution transmittal (the Invesco Funds
will not accept separate contributions submitted with respect to individual participants);
b)
each
transmittal is accompanied by checks or wire transfers; and
c)
if
the Invesco Funds are expected to carry separate accounts in the names of each of the plan participants, (i) the employer or plan
sponsor notifies Invesco Distributors or its designee in writing that the separate accounts of all plan participants should be linked,
and (ii) all new participant accounts are established by submitting an appropriate Account Application on behalf of each new participant
with the contribution transmittal.
Participant
accounts in a retirement plan that are eligible to purchase shares
pursuant to a ROA at the plan level may not also be considered eligible to do so for the benefit of an individual account owner.
In
all instances, it is the purchaser’s responsibility to notify Invesco Distributors
or its designee of any relationship or other facts qualifying the purchaser as eligible for reduced sales charges and/or sales charge
exceptions and to provide all necessary documentation of such facts in order to qualify for reduced sales charges or sales charge exceptions.
For additional information on linking accounts to qualify for ROA or LOI, please see the Funds’ SAI.
Purchases
of Class A shares of Invesco Conservative Income Fund, Invesco
Government Money Market Fund and Invesco Short Term Municipal Fund, Class AX shares or Invesco Cash Reserve Shares of Invesco Government
Money Market Fund and Invesco U.S. Government Money Portfolio, as applicable, or Investor Class shares of any Fund will not be
taken
into account in determining whether a purchase qualifies for a reduction in initial sales charges pursuant to ROAs or LOIs.
Rights
of Accumulation
Purchasers
that qualify for ROA may combine new purchases of Class A shares of a Fund with shares of the Fund or other open-end Invesco Funds
currently owned (Class A, C, IB, IC, P, R, S or Y) for the purpose of qualifying for the lower initial sales charge rates that apply
to larger purchases. The applicable initial sales charge for the new purchase will be based on the total of your current purchase and
the value of other shares owned based on their current public offering price. The Funds’ transfer agent may automatically link certain
accounts registered in the same name with the same taxpayer identification number for the purpose of qualifying you for lower initial
sales charge rates.
Letters
of Intent
Under
a LOI, you commit to purchase a specified dollar amount of Class A shares of one or more Funds during a 13-month period. The amount
you agree to purchase determines the initial sales charge you pay. If the full amount committed to in the LOI is not invested by the end
of the 13-month period, your account will generally be assessed the higher initial sales charge that would normally be applicable to the
total amount actually invested. Shares equal in value to 5% of the intended purchase amount will be held in escrow for this purpose.
Reinstatement
Following Redemption
If
you redeem any class of shares of a Fund, you may reinvest all or a portion of the proceeds from the redemption (and may include that
amount necessary to acquire a fractional Share to round off his or her purchase to the next full Share) in the same share class of any
Fund within 180 days of the redemption without paying an initial sales charge. Class P, S, and Y redemptions may be reinvested into Class
A shares without an initial sales charge.
This
reinstatement privilege does not apply to a purchase made through a
regularly scheduled automatic investment plan, such as a purchase by a regularly scheduled payroll deduction or transfer from a bank account.
This
reinstatement privilege shall be suspended for the period of time in which
a purchase block is in place on a shareholder’s account. Please see “Purchase Blocking Policy” discussed below.
In
order to take advantage of this reinstatement privilege, you must inform
your financial adviser or the Funds’ transfer agent that you wish to do so at the time of your reinvestment.
Contingent
Deferred Sales Charges (CDSCs)
CDSCs
on Class A Shares and Invesco Cash Reserve Shares
Any
shares of a Large Purchase of Class A shares redeemed prior to 18 months after the date of purchase will be subject to a CDSC of 1% with
the exception of Class A shares of Invesco Conservative Income Fund and Invesco Short Term Municipal Fund which do not have CDSCs on redemptions.
If
Invesco Distributors pays a concession to a financial intermediary in connection
with a Large Purchase of Class A shares by an Employer Sponsored Retirement and Benefit Plan or SIMPLE IRA Plan, the Class A shares will
be subject to a 1% CDSC if all of the Employer Sponsored Retirement and Benefit Plan’s or SIMPLE IRA’s shares are redeemed
within one year from the date of initial purchase.
If
you acquire Invesco Cash Reserve Shares or Class A shares of Invesco
Government Money Market Fund or Invesco Cash Reserve Shares of Invesco U.S. Government Money Portfolio through an exchange involving Class
A shares that were subject to a CDSC, the shares acquired as a result of the exchange will continue to be subject to that same CDSC.
CDSCs
on Class C Shares
Class
C shares are subject to a CDSC; however, the CDSC shall not apply to the purchases of Class C shares where the selling broker-dealer was
not paid a commission at the time of purchase. If you redeem your shares during the first year since your purchase has been made you will
be
A-10 The
Invesco Funds
assessed
a CDSC as disclosed in the “Fees and Expenses - Shareholder Fees” table in the prospectus, unless you qualify for one of the
CDSC exceptions outlined below.
CDSCs
on Class C Shares – Employer Sponsored Retirement and Benefit Plans and Employer Sponsored IRAs
Class
C shares are subject to a 1.00% CDSC at the time of redemption if all of the Employer Sponsored Retirement and Benefit Plan’s or
Employer Sponsored IRA’s shares are redeemed within one year from the date of initial purchase.
CDSCs
on Class C Shares of Invesco Short Term Bond Fund
Effective
November 1, 2021, Class C shares of Invesco Short Term Bond Fund are subject to a CDSC. If you acquire Class C shares of any other Fund
as a result of an exchange involving Class C shares of Invesco Short Term Bond Fund that were not subject to a CDSC prior to November
1, 2021, then the shares acquired as a result of the exchange will not be subject to a CDSC.
Computing
a CDSC
The
CDSC on redemptions of shares is computed based on the lower of their original purchase price or current net asset value, net of reinvested
dividends and capital gains distributions. In determining whether to charge a CDSC, shares are accounted for on a first-in, first-out
basis, which means that you will redeem shares on which there is no CDSC first, and then shares in the order of their purchase.
CDSC
Exceptions
Investors
who own shares that are otherwise subject to a CDSC will not pay a CDSC in the following circumstances:
◾
If
you participate in the Systematic Redemption Plan and withdraw up to 12% of the value of your shares that are subject to a CDSC in any
twelve-month period.
◾
If
you redeem shares to pay account fees.
◾
If
you are the executor, administrator or beneficiary of an estate or are otherwise entitled to assets remaining in an account following
the death or post-purchase disability of a shareholder or beneficial owner and you choose to redeem those shares.
There
are other circumstances under which you may be able to redeem shares
without paying CDSCs. For additional information about such circumstances, please see the Appendix entitled “Purchase, Redemption
and Pricing of Shares” in each Fund’s SAI.
Shares
acquired through the reinvestment of dividends and distributions are
not subject to CDSCs.
The
following share classes are sold without a CDSC:
◾
Class
A2 shares of Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund
◾
Class
A shares of Invesco Government Money Market Fund
◾
Invesco
Cash Reserve Shares of Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio
◾
Investor
Class shares of any Fund
◾
Class
P shares of Invesco Summit Fund
◾
Class
R5 and R6 shares of any Fund
◾
Class
R shares of any Fund
◾
Class
S shares of Invesco Charter Fund, Invesco Select Risk: Moderately Conservative Investor Fund, Invesco Select Risk: Growth Investor Fund,
Invesco Select Risk: Moderate Investor Fund and Invesco Summit Fund
◾
Class
Y shares of any Fund
Purchasing
Shares and Shareholder Eligibility
Invesco
Premier U.S. Government Money Portfolio
For
Invesco Premier U.S. Government Money Portfolio, you may purchase shares using one of the options below. Unless the Fund closes early
on a business day, the Fund’s transfer agent will generally accept any purchase order placed until 5:00 p.m. Eastern Time on a business
day and may accept a purchase order placed until 5:30 p.m. Eastern Time on a business
day.
If you wish to place an order between 5:00 p.m. and 5:30 p.m. Eastern Time on a business day, you must place such order by telephone;
however, the Fund’s transfer agent reserves the right to reject or limit the amount of orders placed during this time. If the Fund
closes early on a business day, the Fund’s transfer agent must receive your purchase order prior to such closing time. Purchase
orders will not be processed unless the account application and purchase payment are received in good order. In accordance with the USA
PATRIOT Act, if you fail to provide all the required information requested in the current account application, your purchase order will
not be processed. Additionally, federal law requires that the Fund verifies and records your identifying information.
Invesco
Premier Portfolio
Only
accounts beneficially owned by natural persons will be permitted to retain their shares. The Fund has implemented policies and procedures
reasonably designed to limit all beneficial owners of the Fund to natural persons, and investments in the Fund are limited to accounts
beneficially owned by natural persons. Natural persons may invest in the Fund through certain tax-advantaged savings accounts, trusts
and other retirement and investment accounts, which may include, among others: participant-directed defined contribution plans; individual
retirement accounts; simplified employee pension arrangements; simple retirement accounts; custodial accounts; deferred compensation plans
for government or tax-exempt organization employees; Archer medical savings accounts; college savings plans; health savings account plans;
ordinary trusts and estates of natural persons; or certain other retirement and investment accounts with ultimate investment authority
held by the natural person beneficial owner, notwithstanding having an institutional decision maker making day-to-day decisions (e.g.,
a plan sponsor in certain retirement arrangements or an investment adviser managing discretionary investment accounts).
Further,
financial intermediaries may only submit purchase orders if they have
implemented policies and procedures reasonably designed to limit all investors on behalf of whom they submit orders to accounts beneficially
owned by natural persons. Financial intermediaries may be required to provide a written statement or other representation that they have
in place, and operate in compliance with, such policies and procedures prior to submitting purchase orders. Such policies and procedures
may include provisions for the financial intermediary to promptly report to the Fund or the transfer agent the identification of any shareholder
of the Fund that does not qualify as a natural person of whom they are aware and promptly take steps to redeem any such shareholder’s
shares of the Fund upon request by the Fund or the transfer agent, in such manner as it may reasonably request. The Fund may involuntarily
redeem any such shareholder who does not voluntarily redeem their shares.
Natural
persons may purchase shares using one of the options below. For
all classes of the Fund, other than Investor Class shares, unless the Fund closes early on a business day, the Fund’s transfer agent
will generally accept any purchase order placed until 5:00 p.m. Eastern Time on a business day and may accept a purchase order placed
until 5:30 p.m. Eastern Time on a business day. If you wish to place an order between 5:00 p.m. and 5:30 p.m. Eastern Time on a business
day, you must place such order by telephone; or send your request by a pre-arranged Liquidity Link data transmission however, the Fund’s
transfer agent reserves the right to reject or limit the amount of orders placed during this time. For Investor Class shares of the Fund,
unless the Fund closes early on a business day, the Fund’s transfer agent will generally accept any purchase order placed until
4:00 p.m. Eastern Time on a business day and may accept a purchase order placed until 4:30 p.m. Eastern Time on a business day. If you
wish to place an order between 4:00 p.m. and 4:30 p.m. Eastern Time on a business day, you must place such order by telephone; however,
the Fund’s transfer agent reserves the right to reject or limit the amount of orders placed during this time. If the Fund closes
early on a business day, the Fund’s transfer agent must receive your purchase order prior to such closing time. Purchase orders
will not be processed unless the account application and purchase payment are received in good order. In accordance with the USA PATRIOT
Act, if you fail to provide all the required information requested in the current account application, your purchase order will not be
A-11 The
Invesco Funds
processed.
Additionally, federal law requires that the Fund verify and record your identifying information.
Minimum Investments
There
are no minimum investments for Class P or S shares for fund accounts. The minimum investments for Class A, C, R, Y, Investor Class and
Invesco Cash Reserve shares for fund accounts are as follows:
|
Type
of Account |
Initial
Investment
Per
Fund |
Additional
Investments
Per
Fund |
|
Asset
or fee-based accounts managed by your financial
adviser
|
None
|
None
|
|
| ||
|
Employer
Sponsored Retirement and Benefit Plans and
Employer
Sponsored IRAs |
None
|
None
|
|
| ||
|
IRAs
and Coverdell ESAs if the new investor is
purchasing
shares through a systematic purchase plan |
$25
|
$25
|
|
| ||
|
All
other accounts if the investor is purchasing shares
through
a systematic purchase plan |
50
|
50
|
|
| ||
|
IRAs
and Coverdell ESAs |
250
|
25
|
|
| ||
|
All
other accounts |
1,000
|
50
|
|
| ||
Invesco
Distributors or its designee has the discretion to accept orders on behalf of clients for lesser amounts.
The
minimum investments for Class R5 and R6 shares are as follows:
There
is no minimum initial investment for an Employer Sponsored Retirement
and Benefit Plan investing through a retirement platform that administers at least $2.5 billion in retirement plan assets. All other Employer
Sponsored Retirement and Benefit Plans must meet a minimum initial investment of at least $1 million in each Fund in which it invests.
The
minimum initial investment in each share class for all other institutional
investors is $1 million, unless such investment is made by (i) an investment company, as defined under the 1940 Act, as amended, that
is part of a family of investment companies which own in the aggregate at least $100 million in securities, or (ii) an account established
with a 529 college savings plan managed by Invesco, in which case there is no minimum initial investment.
There
are no minimum investment amounts for Class R6 shares held through
retail omnibus accounts where the intermediary:
◾
generally
charges an asset-based fee or commission in addition to those described in this prospectus; and
◾
maintains
Class R6 shares and makes them available to retail investors.
A
financial intermediary may impose different investment minimums than
those set forth above. The Fund is not responsible for any investment minimums imposed by financial intermediaries or for notifying shareholders
of any changes to them. See “Waivers Available Through Certain Financial Intermediaries and Other Financial Intermediary-Specific
Arrangements” for more information on certain intermediary-specific investment minimums. Please consult with your financial intermediary
if you have any questions regarding their policies.
How
to Purchase Shares*
|
|
Opening
An Account |
Adding
To An Account |
|
Through
a
Financial
Adviser
or
Financial
Intermediary*
|
Contact
your financial adviser or
financial
intermediary. |
Contact
your financial adviser or
financial
intermediary. |
|
By
Mail |
Mail
completed account application
and
check to the Funds’ transfer
agent,
Invesco
Investment Services, Inc.
P.O.
Box 219078,
Kansas
City, MO 64121-9078.
The
Funds’ transfer agent does NOT
accept
the following types of
payments:
Credit Card Checks,
Temporary/Starter
Checks, Third
Party
Checks, and Cash. |
Mail
your check and the remittance
slip
from your confirmation
statement
to the Funds’ transfer
agent.
The Funds’ transfer agent
does
NOT accept the following
types
of payments: Credit Card
Checks,
Temporary/Starter Checks,
Third
Party Checks, and Cash. |
|
|
Opening
An Account |
Adding
To An Account |
|
By
Wire* |
Mail
completed account application
to
the Funds’ transfer agent. Call
the
Funds’ transfer agent at (800)
959-4246
to receive a reference
number.
Then, use the wire
instructions
provided below. |
Call
the Funds’ transfer agent to
receive
a reference number. Then,
use
the wire instructions provided
below.
|
|
Wire
Instructions |
Beneficiary
Bank ABA/Routing #: 011001234
Beneficiary
Account Number: 729639
Beneficiary
Account Name: Invesco Investment Services, Inc.
RFB:
Fund Name, Reference #
OBI:
Your Name, Account # | |
|
By
Telephone* |
Open
your account using one of the
methods
described above. |
The
Bank Account Information
option
on your completed account
application
or complete a
Systematic
Options and Bank
Information
Form. Mail the
application
or form to the Funds’
transfer
agent. Once the Funds’
transfer
agent has received the
form,
call the Funds’ transfer agent
at
the number below to place your
purchase
order. For Class R5 and
R6
shares, call the Funds’ transfer
agent
at (800) 959-4246 and wire
payment
for your purchase order in
accordance
with the wire
instructions
listed above. |
|
Automated
Investor
Line |
Open
your account using one of the
methods
described above. |
Call
the Funds’ transfer agent’s
24-hour
Automated Investor Line at
1-800-246-5463.
You may place
your
order after you have provided
the
bank instructions that will be
requested.
|
|
By
Internet |
Open
your account using one of the
methods
described above. |
Access
your account at
www.invesco.com/us.
The proper
bank
instructions must have been
provided
on your account. You may
not
purchase shares in Retirement
and
Benefit Plans on the internet. |
|
*Class
R5 and R6 shares may only be purchased through a financial intermediary or by
telephone
at (800) 959-4246. | ||
Non-retirement
retail investors, including high net worth investors investing
directly or through a financial intermediary, are not eligible for Class R5 shares. IRAs and Employer Sponsored IRAs are also not eligible
for Class R5 shares. If you hold your shares through a financial intermediary, the terms by which you purchase, redeem and exchange shares
may differ than the terms in this prospectus depending upon the policies and procedures of your financial intermediary.
Purchase
orders will not be processed unless the account application and
purchase payment are received in good order. In accordance with the USA PATRIOT Act, if you fail to provide all the required information
requested in the current account application, your purchase order will not be processed. Additionally, federal law requires that the Funds
verify and record your identifying information.
Systematic
Purchase Plan (Available for all classes except Class R5 and R6 shares)
You
can arrange for periodic investments in any of the Funds by authorizing the Funds’ transfer agent to withdraw the amount of your
investment from your bank account on a day or dates you specify and in an amount of at least $25 per Fund for IRAs and Coverdell ESAs,
and at least $50 per Fund for all other types of accounts (a Systematic Purchase Plan). You may stop the Systematic Purchase Plan at any
time by giving the Funds’ transfer agent notice ten days prior to your next scheduled withdrawal. Certain financial advisers and
other financial intermediaries may also offer systematic purchase plans.
A-12 The
Invesco Funds
Dollar
Cost Averaging (Available for all classes except Class R5 and R6 shares)
Dollar
Cost Averaging allows you to make automatic periodic exchanges, if permitted, from one Fund to another Fund or multiple other Funds. The
account from which exchanges are to be made must have a minimum balance of $5,000 before you can use this option. Exchanges will occur
on (or about) the day of the month you specify, in the amount you specify. Dollar Cost Averaging cannot be set up for the 29th through
the 31st of the month. The minimum amount you can exchange to another Fund is $50. Your financial intermediary may offer alternative dollar
cost averaging programs with different requirements.
Automatic
Dividend and Distribution Investment
Your
dividends and distributions may be paid in cash or reinvested in the same Fund or another Fund without paying an initial sales charge.
Unless
you specify otherwise, your dividends and distributions will automatically
be reinvested in the same Fund. You must comply with the following requirements to be eligible to invest your dividends and distributions
in shares of another Fund:
◾
Your
account balance in the Fund paying the dividend or distribution must be at least $5,000; and
◾
Your
account balance in the Fund receiving the dividend or distribution must be at least $500.
If
you elect to receive your distributions by check, and the distribution amount
is $25 or less, then the amount will be automatically reinvested in the same Fund and no check will be issued. If you have elected to
receive distributions by check, and the postal service is unable to deliver checks to your address of record, then your distribution election
may be converted to having all subsequent distributions reinvested in the same Fund and no checks will be issued. With respect to certain
account types, if your check remains uncashed for six months, the Fund generally reserves the right to reinvest your distribution check
in your account at the then applicable NAV and to reinvest all subsequent distributions in shares of the Fund. Such checks will be reinvested
into the same share class of the Fund. You should contact the Funds’ transfer agent to change your distribution option, and your
request to do so must be received by the Funds’ transfer agent before the record date for a distribution in order to be effective
for that distribution. No interest will accrue on amounts represented by uncashed distribution checks.
Redeeming
Shares*
The
Funds’ transfer agent or authorized intermediary, if applicable, must receive your call before the Funds’ net asset value
determination (as defined by the applicable Fund) in order to effect the redemption at that day’s net asset value.
Your
broker or financial intermediary may charge service fees for handling
redemption transactions.
|
How
to Redeem Shares | |
|
Through
a Financial
Adviser
or Financial
Intermediary*
|
Contact
your financial adviser or financial intermediary. The Funds’
transfer
agent must receive your financial adviser’s or financial
intermediary’s
call before the Funds’ net asset value determination
(as
defined by the applicable Fund) in order to effect the redemption
at
that day’s net asset value. Please contact your financial adviser or
financial
intermediary with respect to reporting of cost basis and
available
elections for your account. |
|
By
Mail |
Send
a written request to the Funds’ transfer agent which includes: |
|
|
▪ Original
signatures of all registered owners/trustees;
▪ The
dollar value or number of shares that you wish to redeem;
▪ The
name of the Fund(s) and your account number;
▪ The
cost basis method or specific shares you wish to redeem for
tax
reporting purposes, if different than the method already on
record;
and |
|
|
▪ Signature
guarantees, if necessary (see below).
The
Funds’ transfer agent may require that you provide additional
documentation,
or information, such as corporate resolutions or
powers
of attorney, if applicable. If you are redeeming from a
Retirement
and Benefit Plan, you must complete the appropriate
distribution
form. |
|
How
to Redeem Shares | |
|
By
Telephone* |
Call
the Funds’ transfer agent at 1-800-959-4246. You will be
allowed
to redeem by telephone if:
▪ Your
redemption proceeds are to be mailed to your address on
record
(and there has been no change in your address of record
within
the last 15 days) or transferred electronically to a
pre-authorized
checking account;
▪ You
can provide proper identification information;
▪ Your
redemption proceeds do not exceed $250,000 per Fund; and
▪ You
have not previously declined the telephone redemption
privilege.
|
|
|
You
may, in limited circumstances, initiate a redemption from an
Invesco
IRA by telephone. Redemptions from Employer Sponsored
Retirement
and Benefit Plans and Employer Sponsored IRAs may be
initiated
only in writing and require the completion of the appropriate
distribution
form, as well as employer authorization. You must call the
Funds’
transfer agent before the Funds’ net asset value
determination
(as defined by the applicable Fund) in order to effect
the
redemption at that day’s net asset value. |
|
Automated
Investor Line |
Call
the Funds’ transfer agent’s 24-hour Automated Investor Line at
1-800-246-5463.
You may place your redemption order after you
have
provided the bank instructions that will be requested. |
|
By
Internet |
Place
your redemption request at www.invesco.com/us. You will be
allowed
to redeem by Internet if:
▪ You
can provide proper identification information;
▪ Your
redemption proceeds do not exceed $250,000 per Fund; and
▪ You
have already provided proper bank information.
Redemptions
from Employer Sponsored Retirement and Benefit
Plans
and Employer Sponsored IRAs may be initiated only in writing
and
require the completion of the appropriate distribution form, as
well
as employer authorization. |
|
*Class
R5 and R6 shares may only be redeemed through a financial intermediary or by
telephone
at (800) 959-4246. | |
Timing
and Method of Payment
The
Funds’ transfer agent typically expects to pay redemption proceeds to redeeming shareholders within one business day after a redemption
request is received in good order, regardless of the method a Fund uses to make such payment. However, a Fund may take up to seven days
to process a redemption request. “Good order” means that all necessary information and documentation related to the redemption
request have been provided to the Funds’ transfer agent or authorized intermediary, if applicable. If your request is not in good
order, the Funds’ transfer agent may require additional documentation in order to redeem your shares. If you redeem shares recently
purchased by check or ACH, you may be required to wait up to ten calendar days before your redemption proceeds are sent. This delay is
necessary to ensure that the purchase has cleared. You can avoid the check hold period if you pay for your shares with a certified check,
a cashier’s check or a federal wire. Payment may be postponed under unusual circumstances, as allowed by the SEC, such as when the
NYSE restricts or suspends trading.
In
addition, a temporary hold may be placed on the disbursement of redemption
proceeds from an account if there is a reasonable belief that financial exploitation of a Specified Adult (as defined below) has occurred,
is occurring, has been attempted, or will be attempted. Notice of such a delay will be provided in accordance with regulatory requirements.
This temporary hold will be for an initial period of no more than 15 business days while an internal review is performed. Should the internal
review support the belief that financial exploitation has occurred, is occurring, has been attempted or will be attempted, the temporary
hold may be extended for up to 10 additional business days. Both the initial and subsequent hold on the disbursement may be terminated
or extended by a state regulator or an agency or court of competent jurisdiction. For purposes of this paragraph, the term “Specified
Adult” refers to an individual who is (a) a natural person age 65 and older, or (b) a natural person age 18 and older who is reasonably
believed to have a mental or physical impairment that renders the individual unable to protect his or her own interests.
If
you redeem by telephone, the Funds’ transfer agent will transmit the amount
of redemption proceeds electronically to your pre-authorized bank account. Redemption checks are mailed to your address of record, via
first
A-13 The
Invesco Funds
class
U.S. mail, unless you make other arrangements with the Funds’ transfer agent.
The
Funds’ transfer agent uses reasonable procedures to confirm that instructions
communicated via telephone and the Internet are genuine, and the Funds and the Funds’ transfer agent are not liable for losses arising
from actions taken in accordance with instructions that are reasonably believed to be genuine.
A
Fund typically expects to use holdings of cash and cash equivalents and
sales of portfolio assets to meet redemption requests, both regularly and in stressed market conditions. The Funds also have the ability
to redeem in kind as further described below under “Redemptions in Kind.” Certain Funds have a line of credit,
as disclosed in such Funds’ principal investment strategy
and risk disclosures that may be used to meet redemptions in stressed market conditions.
Expedited
Redemptions (for Invesco Cash Reserve Shares of Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio only)
If
you place your redemption order by telephone, before 11:30 a.m. Eastern Time and request an expedited redemption, the Funds’ transfer
agent will transmit payment of redemption proceeds on that same day via federal wire to a bank of record on your account. If the Funds’
transfer agent receives your redemption order after 11:30 a.m. Eastern Time and before the close of the customary trading session of the
NYSE, it will transmit payment on the next business day.
Suspension
of Redemptions
The
right of redemption may be suspended or the date of payment postponed when (a) trading on the NYSE is restricted, as determined by applicable
rules and regulations of the SEC, (b) the NYSE is closed for other than customary weekend and holiday closings, (c) the SEC has by order
permitted such suspension, or (d) an emergency as determined by the SEC exists making disposition of portfolio securities or the valuation
of the net assets of the Fund not reasonably practicable. With respect to Invesco Government Money Market Fund, Invesco U.S. Government
Money Portfolio, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio, in the event that the Fund, at the end
of a business day, has invested less than 10% of its total assets in weekly liquid assets or, with respect to the retail and government
money market funds, the Fund’s price per share as computed for the purpose of distribution, redemption and repurchase, rounded to
the nearest 1%, has deviated from the stable price established by the Fund’s Board of Trustees (“Board”) or the Board,
including a majority of trustees who are not interested persons as defined in the 1940 Act, determines that such a deviation is likely
to occur, and the Board, including a majority of trustees who are not interested persons of the Fund, irrevocably has approved the liquidation
of the Fund, the Fund’s Board has the authority to suspend redemptions of Fund shares.
Liquidity
Fees and Redemption Gates
For
Invesco Premier Portfolio, if the Fund’s weekly liquid assets fall below 30% of its total assets, the Board, in its discretion,
may impose liquidity fees of up to 2% of the value of the shares redeemed and/or suspend redemptions (redemption gates). In addition,
if any such Fund’s weekly liquid assets falls below 10% of its total assets at the end of any business day, the Fund must impose
a 1% liquidity fee on shareholder redemptions unless the Board determines that not doing so is in the best interests of the Fund.
Liquidity
fees and redemption gates are most likely to be imposed, if at all,
during times of extraordinary market stress. In the event that a liquidity fee or redemption gate is imposed, the Board expects that for
the duration of its implementation and the day after which such gate or fee is terminated, the Fund would strike only one net asset value
per day, at the Fund’s last scheduled net asset value calculation time.
The
imposition and termination of a liquidity fee or redemption gate will be
reported by a Fund to the SEC on Form N-CR. Such information will also be available on the Fund’s website. In addition, a Fund will
communicate such action through a supplement to its registration statement and may further communicate such action through a press release
or by other means. If a liquidity fee is applied by the Board, it will be charged on all
redemption
orders submitted after the effective time of the imposition of the fee by the Board. Liquidity fees would reduce the amount you receive
upon redemption of your shares. In the event a Fund imposes a redemption gate, the Fund or any financial intermediary on its behalf will
not accept redemption requests until the Fund provides notice that the redemption gate has been terminated.
Redemption
requests submitted while a redemption gate is imposed will be cancelled
without further notice. If shareholders still wish to redeem their shares after a redemption gate has been lifted, they will need to submit
a new redemption request.
Liquidity
fees and redemption gates will generally be used to assist a Fund
to help preserve its market–based NAV per share. It is possible that a liquidity fee will be returned to shareholders in the form
of a distribution. The Board may, in its discretion, terminate a liquidity fee or redemption gate at any time if it believes such action
to be in the best interest of a Fund. Also, liquidity fees and redemption gates will automatically terminate at the beginning of the next
business day once a Fund’s weekly liquid assets reach at least 30% of its total assets. Redemption gates may only last up to 10
business days in any 90-day period. When a fee or a gate is in place, the Fund may elect not to permit the purchase of shares or to subject
the purchase of shares to certain conditions, which may include affirmation of the purchaser’s knowledge that a fee or a gate is
in effect. When a fee or a gate is in place, shareholders will not be permitted to exchange into or out of a Fund.
There
is some degree of uncertainty with respect to the tax treatment of liquidity
fees received by a Fund, and such tax treatment may be the subject to future IRS guidance. If a Fund receives liquidity fees, it will
consider the appropriate tax treatment of such fees to the Fund at such time.
Financial
intermediaries are required to promptly take the steps requested
by the Funds or their designees to impose or help to implement a liquidity fee or redemption gate as requested from time to time, including
the rejection of orders due to the imposition of a fee or gate or the prompt re-confirmation of orders following a notification regarding
the implementation of a fee or gate. If a liquidity fee is imposed, these steps are expected to include the submission of separate, rather
than combined, purchase and redemption orders from the time of the effectiveness of the liquidity fee or redemption gate and the submission
of such order information to the Fund or its designee prior to the next calculation of a Fund’s net asset value. Unless otherwise
agreed to between a Fund and financial intermediary, the Fund will withhold liquidity fees on behalf of financial intermediaries. With
regard to such orders, a redemption request that a Fund determines in its sole discretion has been received in good order by the Fund
or its designated agent prior to the imposition of a liquidity fee or redemption gate may be paid by the Fund despite the imposition of
a redemption gate or without the deduction of a liquidity fee. If a liquidity fee is imposed during the day, an intermediary who receives
both purchase and redemption orders from a single account holder is not required to net the purchase and redemption orders. However, the
intermediary is permitted to apply the liquidity fee to the net amount of redemptions (even if the purchase order was received prior to
the time the liquidity fee was imposed).
Where
a Financial Intermediary serves as a Fund’s agent for the purpose
of receiving orders, trades that are not transmitted to the Fund by the Financial Intermediary before the time required by the Fund or
the transfer agent may, in the Fund’s discretion, be processed on an as-of basis, and any cost or loss to the Fund or transfer agent
or their affiliates, from such transactions shall be borne exclusively by the Financial Intermediary.
Systematic
Withdrawals (Available for all classes except Class R5 and R6 shares)
You
may arrange for regular periodic withdrawals from your account in amounts equal to or greater than $50 per Fund. The Funds’ transfer
agent will redeem the appropriate number of shares from your account to provide redemption proceeds in the amount requested. You must
have a total account balance of at least $5,000 in order to establish a Systematic Redemption Plan, unless you are establishing a Required
Minimum
A-14 The
Invesco Funds
Distribution
for a Retirement and Benefit Plan. You can stop this plan at any time by giving ten days’ prior notice to the Funds’ transfer
agent.
Check
Writing
The
Funds’ transfer agent provides check writing privileges for accounts in the following Funds and share classes:
◾
Invesco
Government Money Market Fund, Invesco Cash Reserve Shares, Class AX shares, Class Y shares and Investor Class shares
◾
Invesco
U.S. Government Money Portfolio, Invesco Cash Reserve Shares and Class Y shares
◾
Invesco
Premier Portfolio, Investor Class shares
◾
Invesco
Premier U.S. Government Money Portfolio, Investor Class shares
You
may redeem shares of these Funds by writing checks in amounts of $250
or more if you have subscribed to the service by completing a Check Writing authorization form.
Check
writing privileges are not available for Retirement and Benefit Plans.
Checks are not eligible to be converted to ACH by the payee. You may not give authorization to a payee by phone to debit your account
by ACH for a debt owed to the payee.
If
you do not have a sufficient number of shares in your account to cover
the amount of the check and any applicable deferred sales charge, the check will be returned and no shares will be redeemed. Because it
is not possible to determine your account’s value in advance, you should not write a check for the entire value of your account
or try to close your account by writing a check.
A
check writing redemption request which is verifiably submitted to a Fund’s
agent before a liquidity fee or redemption gate is imposed will be considered a valid redemption and will be processed normally.
Signature
Guarantees
The
Funds’ transfer agent requires a signature guarantee in the following circumstances:
◾
When
your redemption proceeds exceed $250,000 per Fund.
◾
When
you request that redemption proceeds be paid to someone other than the registered owner of the account.
◾
When
you request that redemption proceeds be sent somewhere other than the address of record or bank of record on the account.
◾
When
you request that redemption proceeds be sent to a new address or an address that changed in the last 15 days.
The
Funds’ transfer agent will accept a guarantee of your signature by a number
of different types of financial institutions. Call the Funds’ transfer agent for additional information. Some institutions have
transaction amount maximums for these guarantees. Please check with the guarantor institution to determine whether the signature guarantee
offered will be sufficient to cover the value of your transaction request.
Redemptions
in Kind
Although
the Funds generally intend to pay redemption proceeds solely in cash, the Funds reserve the right to determine, in their sole discretion,
whether to satisfy redemption requests by making payment in securities or other property (known as a redemption in kind). Redemptions
in kind may result in transaction costs and/or market fluctuations associated with liquidating or holding the securities, respectively.
Purchases-in-Kind
You
may purchase shares of a Fund by transferring securities to a Fund in exchange for Fund shares (“in-kind purchases”). In-kind
purchases may be made only upon the Funds’ approval and determination that the securities are acceptable investments for the Fund
and are purchased consistent with the Fund’s procedures relating to in-kind purchases. The Funds reserve the right to amend or terminate
this practice at any time. You must call the Funds at (800) 959-4246 before sending any securities. Please see the SAI for additional
details.
Redemptions
by Large Shareholders
At
times, the Fund may experience adverse effects when certain large shareholders redeem large amounts of shares of the Fund. Large redemptions
may cause the Fund to sell portfolio securities at times when it would not otherwise do so. In addition, these transactions may also
accelerate
the realization of taxable income to shareholders (if applicable) if such sales of investments resulted in gains and may also increase
transaction costs and/or increase in the Fund’s expense ratio. When experiencing a redemption by a large shareholder, the Fund may
delay payment of the redemption request up to seven days to provide the investment manager with time to determine if the Fund can redeem
the request-in-kind or to consider other alternatives to lessen the harm to remaining shareholders. Under certain circumstances, however,
the Fund may be unable to delay a redemption request, which could result in the automatic processing of a large redemption that is detrimental
to the Fund and its remaining shareholders.
Redemptions
Initiated by the Funds
If
your account (Class A, C, P, S and Investor Class shares only) has been open at least one year, you have not made an additional purchase
in the account during the past six calendar months, and the value of your account falls below $500 for three consecutive months, the Funds
have the right to redeem the account after giving you 60 days’ prior written notice. You may avoid having your account redeemed
during the notice period by bringing the account value up to $500 or by initiating a Systematic Purchase Plan.
A
financial intermediary may have a different policy regarding redemptions
of accounts with small balances. The Fund is not responsible for any small account balance policies imposed by financial intermediaries
or for notifying shareholders of any changes to them. See “Waivers Available Through Certain Financial Intermediaries and Other
Financial Intermediary-Specific Arrangements” for more information on certain intermediary-specific small account balance policies.
Please consult with your financial intermediary if you have any questions regarding their policies.
If
a Fund determines that you have not provided a correct Social Security
or other tax identification number on your account application, or the Fund is not able to verify your identity as required by law, the
Fund may, at its discretion, redeem the account and distribute the proceeds to you.
In
order to separate retail investors (natural persons) and non-retail investors,
the Invesco Premier Portfolio reserve the right to redeem shares in any account that the Funds cannot confirm to their satisfaction are
beneficially owned by natural persons. The Funds will provide advance written notice of their intent to make any such involuntary redemptions.
The Funds reserve the right to redeem shares in any account that they cannot confirm to their satisfaction are beneficially owned by natural
persons, after providing advance notice.
Neither
a Fund nor its investment adviser will be responsible for any loss
in an investor’s account or tax liability resulting from an involuntary redemption.
Minimum
Account Balance (Available for all classes except Class R5 and R6 shares)
A
low balance fee of $12 per year may be deducted in the fourth quarter of each year from all accounts held in the Funds (each a Fund Account)
with a value less than the low balance amount (the Low Balance Amount) as determined from time to time by the Funds and the Adviser. The
Funds and the Adviser generally expect the Low Balance Amount to be $750, but such amount may be adjusted for any year depending on various
factors, including market conditions. The Low Balance Amount and the date on which it will be deducted from any Fund Account will be posted
on our website, www.invesco.com/us, on or about November 1 of each year. This fee will be payable to the Funds’ transfer agent by
redeeming from a Fund Account sufficient shares owned by a shareholder and will be used by the Funds’ transfer agent to offset amounts
that would otherwise be payable by the Funds to the Funds’ transfer agent under the Funds’ transfer agency agreement with
the Funds’ transfer agent. The low balance fee does not apply to participant accounts in advisory programs or to Employer Sponsored
Retirement and Benefit Plans.
Exchanging
Shares
You
may, under certain circumstances, exchange shares in one Fund for those of another Fund. An exchange is the purchase of shares in one
Fund which is paid for with the proceeds from a redemption of shares of another
A-15 The
Invesco Funds
Fund
effectuated on the same day. Any gain on the transaction may be subject to federal income tax. Accordingly, the procedures and processes
applicable to redemptions of Fund shares, as discussed under the heading “Redeeming Shares” above, will apply. Before requesting
an exchange, review the prospectus of the Fund you wish to acquire.
All
exchanges are subject to the limitations set forth in the prospectuses of
the Funds. If you wish to exchange shares of one Fund for those of another Fund, you must consult the prospectus of the Fund whose shares
you wish to acquire to determine whether the Fund is offering shares to new investors and whether you are eligible to acquire shares of
that Fund.
Permitted
Exchanges
Except
as otherwise provided herein or in the SAI, you generally may exchange your shares for shares of the same class of another Fund. The following
table shows generally permitted exchanges from one Fund to another Fund (exceptions listed below under “Exchanges Not Permitted”):
|
Exchange
From |
Exchange
To |
|
Invesco
Cash Reserve Shares |
Class
A, C, R, Investor Class |
|
| |
|
Class
A |
Class
A, Investor Class, Invesco Cash Reserve Shares* |
|
| |
|
Class
A2 |
Class
A, Investor Class, Invesco Cash Reserve Shares |
|
| |
|
Class
AX |
Class
A, AX, Investor Class, Invesco Cash Reserve Shares |
|
| |
|
Investor
Class |
Class
A, Investor Class |
|
| |
|
Class
P |
Class
A, Invesco Cash Reserve Shares |
|
| |
|
Class
S |
Class
A, S, Invesco Cash Reserve Shares |
|
| |
|
Class
C |
Class
C* |
|
| |
|
Class
CX |
Class
C, CX |
|
| |
|
Class
R |
Class
R* |
|
| |
|
Class
R5 |
Class
R5 |
|
| |
|
Class
R6 |
Class
R6 |
|
| |
|
Class
Y |
Class
Y* |
|
|
|
|
* You
may exchange Class Y shares of Invesco U.S. Government Money Portfolio for Class A, C
or
R shares of any other Fund as long as you are otherwise eligible for such share class. If you
exchange
Class Y shares of Invesco U.S. Government Money Portfolio for Class A, C or R shares
of
any other Fund, you may exchange those Class A, C or R shares back into Class Y shares of
Invesco
U.S. Government Money Portfolio, but not Class Y shares of any other Fund. | |
Exchanges
into Invesco Senior Loan Fund
Invesco
Senior Loan Fund is a closed-end interval fund that continuously offers its shares pursuant to the terms and conditions of its prospectus.
The Adviser is the investment adviser for the Invesco Senior Loan Fund. As with the Invesco Funds, you generally may exchange your shares
of Class A (Invesco Cash Reserve Shares of Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio) or Class
C of any Invesco Fund for shares of Class A or Class C, respectively, of Invesco Senior Loan Fund. Please refer to the prospectus for
the Invesco Senior Loan Fund for more information, including limitations on exchanges out of Invesco Senior Loan Fund.
Exchanges
Not Permitted
The
following exchanges are not permitted:
◾
Investor
Class shares cannot be exchanged for Class A shares of any Fund which offers Investor Class shares.
◾
Class A2
shares of Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund cannot be exchanged for Class A shares
of those Funds.
◾
Invesco
Cash Reserve Shares cannot be exchanged for Class C or R shares if the shares being exchanged were acquired by exchange from Class A
shares of any Fund.
◾
All
existing systematic exchanges and reallocations will cease and these options will no longer be available on all 403(b) prototype plans.
◾
Class
A, C or R shares of a Fund acquired by exchange of Class Y shares of Invesco U.S. Government Money Portfolio cannot be exchanged for Class
Y shares of any Fund, except Class Y shares of Invesco U.S. Government Money Portfolio.
Exchange
Conditions
Shares
must have been held for at least one day prior to the exchange with the exception of dividends and distributions that are reinvested.
Under
unusual market conditions, a Fund may delay the exchange of shares
for up to five business days if it determines that it would be materially disadvantaged by the immediate transfer of exchange proceeds.
The exchange privilege is not an option or right to purchase shares. Any of the participating Funds or the distributor may modify or terminate
this privilege at any time.
Initial
Sales Charges, CDSCs and 12b-1 Fees Applicable to Exchanges
You
may be required to pay an initial sales charge when exchanging from a Fund with a lower initial sales charge than the one into which you
are exchanging. If you exchange into shares that are subject to a CDSC, the Funds’ transfer agent will begin the holding period
for purposes of calculating the CDSC on the date you made your initial purchase.
In
addition, as a result of differences in the forms of distribution plans among
the Funds, certain exchanges of Class A shares, Class C shares, and Class R shares of a Fund for the same class of shares of another Fund
may result in investors paying a higher or a lower 12b-1 fee on the Fund being exchanged into. Please refer to the prospectus fee table
and financial highlights table and the SAI for more information on the fees and expenses, including applicable 12b-1 fees, of the Fund
you wish to acquire.
Share
Class Conversions
Shares
of one class of a Fund may be converted into shares of another class of the same Fund, provided that you are eligible to buy that share
class. Investors who hold Fund shares through a financial intermediary that does not have an agreement to make certain share classes of
the Funds available or that cannot systematically support the conversion may not be eligible to convert their shares. Furthermore, your
financial intermediary may have discretion to effect a conversion on your behalf. Consult with your financial intermediary for details.
Any CDSC associated with the converting shares will be assessed immediately prior to the conversion to the new share class. The conversion
of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes and no gain
or loss will be reported on the transaction. See the applicable prospectus for share class information.
Fees
and expenses differ between share classes. You should read the prospectus
for the share class into which you are seeking to convert your shares prior to the conversion.
Automatic
Conversion of Class C and Class CX Shares
Class
C and Class CX shares held for eight years after purchase are eligible for automatic conversion into Class A and Class AX shares of the
same Fund, respectively, except that for the Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio, the Funds’
Class C and/or Class CX shares would be eligible to automatically convert into the Fund’s Invesco Cash Reserve Share Class and all
existing Class C shares of Invesco Short Term Municipal Fund will automatically convert to Class A shares of that Fund at the end of June
2022 (the Conversion Feature). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month
following the eighth anniversary after a purchase of Class C or Class CX shares (the Conversion Date). The first conversion of Class C
and Class CX shares to Class A and Class AX shares under this policy would occur at the end of December 2020 for all Class C and Class
CX shares that were held for more than eight years as of November 30, 2020.
Automatic
conversions pursuant to the Conversion Feature will be on the basis
of the NAV per share, without the imposition of any sales charge (including a CDSC), fee or other charge. All such automatic conversions
of Class C and Class CX shares will constitute tax-free exchanges for federal income tax purposes.
Class
C and Class CX shares of a Fund acquired through a reinvestment of
dividends and distributions will convert to Class A and Class AX shares, respectively, of the Fund (or Invesco Cash Reserve shares for
Invesco
A-16 The
Invesco Funds
Government
Money Market Fund) on the Conversion Date pro rata with the converting Class C and Class CX shares of that Fund that were not acquired
through reinvestment of dividends and distributions.
Class
C or Class CX shares held through a financial intermediary in existing
omnibus Employer Sponsored Retirement and Benefit Plans and other omnibus accounts may be converted pursuant to the Conversion Feature
by the financial intermediary once it is determined that the Class C or Class CX shares have been held for the required holding period.
It is the financial intermediary’s (and not the Fund’s) responsibility to keep records and to ensure that the shareholder
is credited with the proper holding period as the Fund and its agents may not have transparency into how long a shareholder has held Class
C or Class CX shares for purposes of determining whether such Class C or Class CX shares are eligible to automatically convert pursuant
to the Conversion Feature. In order to determine eligibility for automatic conversion in these circumstances, it is the responsibility
of the shareholder or their financial intermediary to determine that the shareholder is eligible to exercise the Conversion Feature, and
the shareholder or their financial intermediary may be required to maintain records that substantiate the holding period of Class C or
Class CX shares.
In
addition, a financial intermediary may sponsor and/or control programs
or platforms that impose a different conversion schedule or eligibility requirements for conversions of Class C or Class CX shares. In
these cases, Class C and Class CX shares of certain shareholders may not be eligible for automatic conversion pursuant to the Conversion
Feature as described above. The Fund has no responsibility for overseeing, monitoring or implementing a financial intermediary’s
process for determining whether a shareholder meets the required holding period for automatic conversion. Please consult with your financial
intermediary if you have any questions regarding the Conversion Feature.
Share
Class Conversions Not Permitted
The
following share class conversions are not permitted:
◾
Conversions
into Class A from Class A2 of the same Fund.
◾
Conversions
into Class A2, Class AX, Class CX, Class P or Class S of the same Fund.
Rights
Reserved by the Funds
Each
Fund and its agents reserve the right at any time to:
◾
Reject
or cancel all or any part of any purchase or exchange order.
◾
Modify
any terms or conditions related to the purchase, redemption or exchange of shares of any Fund.
◾
Reject
or cancel any request to establish a Systematic Purchase Plan or Systematic Redemption Plan.
◾
Modify
or terminate any sales charge waivers or exceptions.
◾
Suspend,
change or withdraw all or any part of the offering made by this prospectus.
Excessive
Short-Term Trading Activity (Market Timing) Disclosures
While
the Funds provide their shareholders with daily liquidity, their investment programs are designed to serve long-term investors and are
not designed to accommodate excessive short-term trading activity in violation of our policies described below. Excessive short-term trading
activity in the Funds’ shares (i.e., a purchase of Fund shares followed shortly thereafter by a redemption of such shares, or vice
versa) may hurt the long-term performance of certain Funds by requiring them to maintain an excessive amount of cash or to liquidate portfolio
holdings at a disadvantageous time, thus interfering with the efficient management of such Funds by causing them to incur increased brokerage
and administrative costs. Where excessive short-term trading activity seeks to take advantage of arbitrage opportunities from stale prices
for portfolio securities, the value of Fund shares held by long-term investors may be diluted. The Board has adopted policies and procedures
designed to discourage excessive or short-term trading of Fund shares for all Funds except the money market funds, Invesco Conservative
Income Fund, and Invesco Short Term Municipal Fund. However, there is the risk that these Funds’ policies and procedures will prove
ineffective in whole or in part to detect or prevent excessive or
short-term
trading. These Funds may alter their policies at any time without prior notice to shareholders if the Adviser believes the change would
be in the best interests of long-term shareholders.
Invesco
and certain of its corporate affiliates (Invesco and such affiliates,
collectively, the Invesco Affiliates) currently use the following tools designed to discourage excessive short-term trading in the retail
Funds:
◾
Trade
activity monitoring.
◾
Discretion
to reject orders.
◾
Purchase
blocking.
◾
The
use of fair value pricing consistent with the valuation policy approved by the Board and related procedures.
Each
of these tools is described in more detail below. Although these tools
are designed to discourage excessive short-term trading, you should understand that none of these tools alone nor all of them taken together
eliminate the possibility that excessive short-term trading activity in the Funds will occur. Moreover, each of these tools involves judgments
that are inherently subjective. Invesco Affiliates seek to make these judgments to the best of their abilities in a manner that they believe
is consistent with long-term shareholder interests.
Money
Market Funds. The Boards of Invesco Government Money Market Fund,
Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio (the money market
funds) have not adopted any policies and procedures that would limit frequent purchases and redemptions of such Funds’ shares. The
Boards of the money market funds considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal. Nonetheless, to the extent that a money market fund must maintain additional cash and/or
securities with short-term durations in greater amounts than may otherwise be required or borrow to honor redemption requests, the money
market fund’s yield could be negatively impacted.
The
Boards of the money market funds do not believe that it is appropriate
to adopt any such policies and procedures for the money market funds for the following reasons:
◾
The
money market funds are offered to investors as cash management vehicles; therefore, investors should be able to purchase and redeem shares
regularly and frequently.
◾
One
of the advantages of a money market fund as compared to other investment options is liquidity. Any policy that diminishes the liquidity
of the money market funds will be detrimental to the continuing operations of such Funds.
◾
With
respect to the money market funds maintaining a constant net asset value, the money market funds’ portfolio securities are valued
on the basis of amortized cost, and such Funds seek to maintain a constant net asset value. As a result, the money market funds are not
subject to price arbitrage opportunities.
◾
With
respect to the money market funds maintaining a constant net asset value, because such Funds seek to maintain a constant net asset value,
investors are more likely to expect to receive the amount they originally invested in the Funds upon redemption than other mutual funds.
Invesco
Conservative Income Fund. The Board of Invesco Conservative Income
Fund has not adopted any policies and procedures that would limit frequent purchases and redemptions of such Fund’s shares. The
Board of Invesco Conservative Income Fund considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal especially in light of the reasons for not having such a policy as described below. Nonetheless,
to the extent that the Fund must maintain additional cash and/or securities with short-term durations in greater amounts than may otherwise
be required or borrow to honor redemption requests, the Fund’s yield could be negatively impacted.
The
Board of the Invesco Conservative Income Fund does not believe that
it is appropriate to adopt any such policies and procedures for the Fund for the following reasons:
◾
The
Fund is offered to investors as a cash management vehicle; investors perceive an investment in the Fund as an alternative to cash and
must be able to purchase and redeem shares regularly and frequently.
A-17 The
Invesco Funds
◾
One
of the advantages of the Fund as compared to other investment options is liquidity. Any policy that diminishes the liquidity of the Fund
will be detrimental to the continuing operations of the Fund.
Excessive
trading activity in the Fund’s shares may cause the Fund to incur
increased brokerage and administrative costs.
The
Fund and its agent reserve the right at any time to reject or cancel any
part of any purchase order. This could occur if the Fund determines that such purchase may disrupt the Fund’s operation or performance.
Invesco
Short Term Municipal Fund. The Board of Invesco Short Term Municipal
Fund has not adopted any policies and procedures that would limit frequent purchases and redemptions of such Fund’s shares. The
Board of Invesco Short Term Municipal Fund considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal, especially in light of the reasons for not having such a policy as described below. Nonetheless,
to the extent that the Fund must maintain additional cash and/or securities with short-term durations in greater amounts than may otherwise
be required or borrow to honor redemption requests, the Fund’s yield could be negatively impacted.
The
Board of Invesco Short Term Municipal Fund does not believe that it is
appropriate to adopt any such policies and procedures for the Fund for the following reasons:
◾
The
Fund is designed to address the needs of retail investors who seek liquidity in their investment and seek the ability to purchase and
redeem shares at any time.
◾
Any
policy that diminishes the ability of shareholders to purchase and redeem shares of the Fund will be detrimental to the continuing operations
of the Fund.
◾
The
Fund generally invests in short duration liquid investment grade municipal securities.
Excessive
trading activity in the Fund’s shares may cause the Fund to incur
increased brokerage and administrative costs. The Fund and its agent reserve the right at any time to reject or cancel any part of any
purchase order. This could occur if the Fund determines that such purchase may disrupt the Fund’s operation or performance.
Trade
Activity Monitoring
Invesco
Affiliates monitor selected trades on a daily basis in an effort to detect excessive short-term trading activities. If, as a result of
this monitoring, Invesco Affiliates believe that a shareholder has engaged in excessive short-term trading, they will seek to act in a
manner that they believe is consistent with the best interests of long-term investors, which may include taking steps such as (i) asking
the shareholder to take action to stop such activities or (ii) refusing to process future purchases or exchanges related to such activities
in the shareholder’s accounts other than exchanges into a money market fund. Invesco Affiliates will use reasonable efforts to apply
the Funds’ policies uniformly given the practical limitations described above.
The
ability of Invesco Affiliates to monitor trades that are made through accounts
that are maintained by intermediaries (rather than the Funds’ transfer agent) and through conduit investment vehicles may be limited
or non-existent.
Discretion
to Reject Orders
If
a Fund or an Invesco Affiliate determines, in its sole discretion, that your short-term trading activity is excessive, the Fund may, in
its sole discretion, reject any additional purchase and exchange orders. This discretion may be exercised with respect to purchase or
exchange orders placed directly with the Funds’ transfer agent or through a financial intermediary.
Purchase
Blocking Policy
The
Funds (except those listed below) have adopted a policy under which any shareholder redeeming shares having a value of $50,000 or more
from a Fund on any trading day will be precluded from investing in that Fund for 30 calendar days after the redemption transaction date.
The policy applies to redemptions and purchases that are part of exchange transactions. Under the purchase blocking policy, certain purchases
will not be prevented and certain redemptions will not trigger a purchase block, such as: purchases
and redemptions
of shares having a value of less than $50,000; systematic purchase, redemption and exchange account options; transfers of shares within
the same Fund; non-discretionary rebalancing in fund-of-funds; asset allocation features; fee-based accounts; account maintenance fees;
small balance account fees; plan-level omnibus Retirement and Benefit Plans; death and disability and hardship distributions; loan transactions;
transfers of assets; Retirement and Benefit Plan rollovers; IRA conversions and re-characterizations; and mandatory distributions from
Retirement and Benefit Plans.
The
Funds reserve the right to modify any of the parameters (including those
not listed above) of the purchase blocking policy at any time. Further, the purchase blocking policy may be waived with respect to specific
shareholder accounts in those instances where the Adviser determines that its surveillance procedures are adequate to detect frequent
trading in Fund shares.
If
an account is maintained by a financial intermediary whose systems are
unable to apply Invesco’s purchase blocking policy, the Adviser will accept the establishment of an account only if the Adviser
believes the policies and procedures are reasonably designed to enforce the frequent trading policies of the Funds. You should refer to
disclosures provided by the financial intermediary with which you have an account to determine the specific trading restrictions that
apply to you. If the Adviser identifies any activity that may constitute frequent trading, it reserves the right to contact the intermediary
and request that the intermediary either provide information regarding an account owner’s transactions or restrict the account owner’s
trading. There is no guarantee that all instances of frequent trading in Fund shares will be prevented.
The
purchase blocking policy does not apply to Invesco Conservative Income
Fund, Invesco Short Term Municipal Fund, Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government
Money Portfolio and Invesco U.S. Government Money Portfolio.
Pricing
of Shares
Determination
of Net Asset Value
The
price of each Fund’s shares is the Fund’s net asset value per share. The Funds (except Invesco Government Money Market Fund,
Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio) value portfolio
securities for which market quotations are readily available at market value. Securities and other assets quoted in foreign currencies
are valued in U.S. dollars based on the prevailing exchange rates on that day. The Funds (except Invesco Government Money Market Fund,
Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio) value securities
and assets for which market quotations are unavailable at their “fair value,” which is described below. Invesco Government
Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio
value portfolio securities on the basis of amortized cost, which approximates market value. This method of valuation is designed to enable
a Fund to price its shares at $1.00 per share. The Funds cannot guarantee their net asset value will always remain at $1.00 per share.
Securities and other assets quoted in foreign currencies are valued in U.S. dollars based on the prevailing exchange rates on that day.
The Fund values securities and assets for which market quotations are unavailable at their “fair value,” which is described
below.
Even
when market quotations are available, they may be stale or not
representative of market value in the Adviser’s judgment (“unreliable”)
because the security is not traded frequently, trading on the security
ceased before the close of the trading market or issuer specific events occurred after the security ceased trading or because of the passage
of time between the close of the market on which the security trades and the close of the NYSE and when the Fund calculates its net asset
value. Issuer specific events may cause the last market quotation to be unreliable. Such events may include a merger or insolvency, events
that affect a geographical area or an industry segment, such as political events or natural disasters, or market events, such as a significant
movement in the U.S. market. Where
A-18 The
Invesco Funds
the Adviser
determines that the closing price of the security is stale or unreliable, the Adviser will value the security at its fair value.
A
fair value price is an estimated price that requires consideration of all appropriate factors, including indications of fair value available
from pricing services. Fair value pricing involves judgment and a Fund that uses fair value methodologies may value securities higher
or lower than another Fund using market quotations or its own fair value methodologies to price the same securities. Investors who purchase
or redeem Fund shares on days when the Fund is holding fair-valued securities may receive a greater or lesser number of shares, or higher
or lower redemption proceeds, than they would have received if the Fund had not fair-valued the security or had used a different methodology.
The
Board has designated the Adviser to perform the daily determination
of fair value prices in accordance with Board approved
policies and related procedures,
subject to the Board’s oversight. Fair value pricing methods
and pricing services can change from time to time.
The
intended effect of applying fair value pricing is to compute an NAV that
accurately reflects the value of a Fund’s portfolio at the time that the NAV is calculated. An additional intended effect is to
discourage those seeking to take advantage of arbitrage opportunities resulting from “stale” prices and to mitigate the dilutive
impact of any such arbitrage. However, the application of fair value pricing cannot eliminate the possibility that arbitrage opportunities
will exist.
Specific
types of securities are valued as follows:
Senior
Secured Floating Rate Loans and Senior Secured Floating Rate Debt
Securities. Senior secured floating rate loans and senior secured
floating rate debt securities are fair valued using evaluated quotes provided by an independent pricing service. Evaluated quotes provided
by the pricing service may reflect appropriate factors such as market quotes, ratings, tranche type, industry, company performance, spread,
individual trading characteristics, institution-size trading in similar groups of securities and other market data.
Domestic
Exchange Traded Equity Securities. Market quotations are generally
available and reliable for domestic exchange traded equity securities. If market quotations are not available or are unreliable, the Adviser
will value the security at fair value in good faith using the valuation policy approved by the Board and related procedures.
Foreign
Securities. If market quotations are available and reliable for
foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign
securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular
security and the close of the customary trading session on the NYSE events occur that are significant and may make the closing price unreliable,
the Fund may fair value the security. If an issuer specific event has occurred that the Adviser determines, in its judgment, is likely
to have affected the closing price of a foreign security, it will price the security at fair value. The Adviser also relies on a screening
process from a pricing vendor to indicate the degree of certainty, based on historical data, that the closing price in the principal market
where a foreign security trades is not the current market value as of the close of the NYSE. For foreign securities where the Adviser
believes, at the approved degree of certainty, that the price is not reflective of current market value, the Adviser will use the indication
of fair value from the pricing service to determine the fair value of the security. The pricing vendor, pricing methodology or degree
of certainty may change from time to time.
Fund
securities primarily traded on foreign markets may trade on days that
are not business days of the Fund. Because the net asset value of Fund shares is determined only on business days of the Fund, the value
of the portfolio securities of a Fund that invests in foreign securities may change on days when you will not be able to purchase or redeem
shares of the Fund.
Fixed
Income Securities. Fixed income securities, such as government,
corporate, asset-backed and municipal bonds, convertible securities, including high yield or junk bonds, and loans, generally are valued
on the basis of prices provided by independent pricing services. Prices provided by the pricing services may be determined without exclusive
reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in
similar
groups of securities, developments related to special securities, dividend rate, maturity and other market data. Pricing services generally
value fixed income securities assuming orderly transactions of institutional round lot size, but a Fund may hold or transact in the same
securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Prices received from pricing
services are fair value prices. In addition, if the price provided by the pricing service and independent quoted prices are unreliable,
the Adviser will fair value the security using the valuation policy approved by the Board and related procedures.
Short-term
Securities. Invesco Government Money Market Fund, Invesco Premier
Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio value all their securities at amortized
cost. Invesco Limited Term Municipal Income Fund values variable rate securities that have an unconditional demand or put feature exercisable
within seven days or less at par, which reflects the market value of such securities.
Futures
and Options. Futures contracts are valued at the final settlement
price set by the exchange on which they are principally traded. U.S.
exchange-traded options are valued at the mean between the last
bid and asked prices from the exchange on which they principally trade. Non-U.S. exchange-traded options are valued at the final settlement
price set by
the exchange on which they trade. Options not listed on an exchange and swaps generally are valued using pricing provided from independent
pricing services.
Swap
Agreements. Swap Agreements are fair valued using an evaluated
quote provided by an independent pricing service. Evaluated quotes provided by the pricing service are based on a model that may include
end of day net present values, spreads, ratings, industry and company performance.
Open-end
Funds. If a Fund invests in other open-end funds, other than open-end
funds that are exchange traded, the investing Fund will calculate its net asset value using the net asset value of the underlying fund
in which it invests, and the prospectuses for such open-end funds explain the circumstances under which they will use fair value pricing
and the effects of using fair value pricing.
Each
Fund, except for Invesco Government Money Market Fund, Invesco Premier
Portfolio and Invesco Premier U.S. Government Money Portfolio, generally determines the net asset value of its shares on each day the
NYSE is open for trading (a business day) as of approximately 4:00 p.m. Eastern Time (the customary close of regular trading) or earlier
in the case of a scheduled early close. In the event of an unscheduled early close of the NYSE, each Fund, except for Invesco Government
Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio, generally still will determine the net
asset value of its shares as of 4:00 p.m. Eastern Time on that business day. Portfolio securities traded on the NYSE would be valued at
their closing prices unless the Adviser determines
that a “fair value” adjustment is appropriate due to subsequent events occurring after an early close consistent with the
valuation policy approved
by the Board and related procedures. Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government
Money Portfolio will generally determine the net asset value of their shares at 5:30 p.m. Eastern Time on each business day. A business
day for Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio is any day
that (1) both the Federal Reserve Bank of New York and a Fund’s custodian are open for business and (2) the primary trading markets
for the Fund’s portfolio instruments are open and the Fund’s management believes there is an adequate market to meet purchase
and redemption requests. Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money
Portfolio are authorized not to open for trading on a day that is otherwise a business day if the Securities Industry and Financial Markets
Association (SIFMA) recommends that government securities dealers not open for trading; any such day will not be considered a business
day. Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio, Invesco
U.S. Government Money Portfolio also may close early on a business day if SIFMA recommends that government securities dealers close early.
If
A-19 The
Invesco Funds
Invesco
Government Money Market Fund, Invesco Premier Portfolio or Invesco Premier U.S. Government Money Portfolio uses its discretion to
close early on a business day, the Fund will calculate its net asset value as of the time of such closing Invesco Premier Portfolio and
Invesco U.S. Government Money Portfolio are authorized to not open for trading on a day that is otherwise a business day if the NYSE recommends
that government securities dealers not open for trading; any such day will not be considered a business day. Invesco Premier Portfolio
also may close early on a business day if the NYSE recommends that government securities dealers close early.
For
financial reporting purposes and shareholder transactions on the last
day of the fiscal quarter, transactions are normally accounted for on a trade date basis. For purposes of executing shareholder transactions
in the normal course of business (other than shareholder transactions at a fiscal period-end), each Fund’s portfolio securities
transactions are recorded no later than the first business day following the trade date.
The
Invesco Advantage International Fund, Invesco Balanced-Risk Allocation
Fund, Invesco Balanced-Risk Commodity Strategy Fund, Invesco Fundamental Alternatives Fund, Invesco Global Allocation Fund, Invesco Global
Strategic Income Fund, Invesco Gold & Special Minerals Fund, Invesco High Yield Bond Factor Fund, Invesco International Bond Fund
and Invesco Macro Allocation Strategy Fund may each invest up to 25% of their total assets in shares of their respective subsidiaries
(the Subsidiaries). The Subsidiaries offer to redeem all or a portion of their shares at the current net asset value per share every regular
business day. The value of shares of the Subsidiaries will fluctuate with the value of the respective Subsidiary’s portfolio investments.
The Subsidiaries price their portfolio investments pursuant to the same pricing and valuation methodologies and procedures used by the
Funds, which require, among other things, that each of the Subsidiaries’ portfolio investments be marked-to-market (that is, the
value on each of the Subsidiaries’ books changes) each business day to reflect changes in the market value of the investment.
Each
Fund’s current net asset value per share is made available on the Funds’
website at www.invesco.com/us.
Fair
Value Pricing
Securities
owned by a Fund (except Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio
and Invesco U.S. Government Money Portfolio) are to be valued at current market value if market quotations are readily available. All
other securities and assets of a Fund for which market quotations are not readily available are to be valued at fair value determined
in good faith consistent with the valuation policy approved by the Board and related procedures. An effect of fair value pricing may be
to reduce the ability of frequent traders to take advantage of arbitrage opportunities resulting from potentially “stale”
prices of portfolio holdings. However, it cannot eliminate the possibility of frequent trading.
The
price a Fund could receive upon the sale of any investment may differ
from the Adviser's valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair
valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions
(i.e., publicly traded company multiples, growth rate, time to exit), to determine a methodology that will result in a valuation that
the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value
from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and
the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the
investment.
Timing
of Orders
Each
Fund prices purchase, exchange and redemption orders at the net asset value next calculated by the Fund after the Fund’s transfer
agent, authorized agent or designee receives an order in good order for the Fund. Purchase, exchange and redemption orders must be received
prior to the close of business on a business day, as defined by the applicable Fund, to receive that day’s net asset value. Any
applicable sales charges are applied at the time an order is processed.
Currently,
certain financial intermediaries may serve as agents for the Funds
and accept orders on their behalf. Where a financial intermediary serves as agent, the order is priced at the Fund’s net asset value
next calculated after it is accepted by the financial intermediary. In such cases, if requested by a Fund, the financial intermediary
is responsible for providing information with regard to the time that such order for purchase, redemption or exchange was received. Orders
submitted through a financial intermediary that has not received authorization to accept orders on a Fund’s behalf are priced at
the Fund’s net asset value next calculated by the Fund after it receives the order from the financial intermediary and accepts it,
which may not occur on the day submitted to the financial intermediary.
Additional
Information Regarding Deferred Tax Liability (only applicable to the Invesco Steelpath Funds)
In
calculating the Fund’s daily NAV, the Fund will, among other things, account for its deferred tax liability and/or asset balances.
As a result, any deferred tax liability and/or asset is reflected in the Fund’s daily NAV.
The
Fund will accrue a deferred income tax liability balance, at the U.S. federal
corporate income tax rate plus an estimated state and local income tax rate for its future tax liability associated with MLP distributions
considered to be a return of capital, as well as for its future tax liability associated with the capital appreciation of its investments.
The Fund’s current and deferred tax liability, if any, will depend upon the Fund’s net investment gains and losses and realized
and unrealized gains and losses on investments and therefore may vary greatly from year to year depending on the nature of the Fund’s
investments, the performance of those investments and general market conditions. Any deferred tax liability balance will reduce the Fund’s
NAV. Upon the Fund’s sale of an MLP security, the Fund may be liable for previously deferred taxes.
The
Fund will accrue, in accordance with generally accepted accounting principles,
a deferred tax asset balance, which reflects an estimate of the Fund’s future tax benefit associated with net operating losses and
unrealized losses. Any deferred tax asset balance will increase the Fund’s NAV. To the extent the Fund has a deferred tax asset
balance, the Fund will assess, in accordance with generally accepted accounting principles, whether a valuation allowance, which would
offset the value of some or all of the Fund’s deferred tax asset balance, is required. Pursuant to Financial Accounting Standards
Board Accounting Standards Codification 740 (FASB ASC 740), the Fund will assess a valuation allowance to reduce some or all of the deferred
tax asset balance if, based on the weight of all available evidence, both negative and positive, it is more likely than not that some
or all of the deferred tax asset will not be realized. The Fund will use judgment in considering the relative impact of negative and positive
evidence. The weight given to the potential effect of negative and positive evidence will be commensurate with the extent to which such
evidence can be objectively verified. The Fund’s assessment considers, among other matters, the nature, frequency and severity of
current and cumulative losses, the duration of statutory carry forward periods and the associated risk that operating loss and capital
loss carry forwards may be limited or expire unused, and unrealized gains and losses on investments. Consideration is also given to market
cycles, the severity and duration of historical deferred tax assets, the impact of redemptions, and the level of MLP distributions. The
Fund will assess whether a valuation allowance is required to offset some or all of any deferred tax asset in connection with the calculation
of the Fund’s NAV per share each day; however, to the extent the final valuation allowance differs from the estimates the Fund used
in calculating the Fund’s daily NAV, the application of such final valuation allowance could have a material impact on the Fund’s
NAV.
The
Fund’s deferred tax asset and/or liability balances are estimated using
estimates of effective tax rates expected to apply to taxable income in the years such balances are realized. The Fund will rely to some
extent on information provided by MLPs in determining the extent to which distributions received from MLPs constitute a return of capital,
which may not be provided to the Fund on a timely basis, to estimate the Fund’s deferred tax liability and/or asset balances for
purposes of financial statement reporting and determining its NAV. If such information is not
A-20 The
Invesco Funds
received
from such MLPs on a timely basis, the Fund will estimate the extent to which distributions received from MLPs constitute a return of capital
based on average historical tax characterization of distributions made by MLPs. The Fund’s estimates regarding its deferred tax
liability and/or asset balances are made in good faith; however, the daily estimate of the Fund’s deferred tax liability and/or
asset balances used to calculate the Fund’s NAV could vary dramatically from the Fund’s actual tax liability. Actual income
tax expense, if any, will be incurred over many years, depending on if and when investment gains and losses are realized, the then-current
basis of the Fund’s assets and other factors. As a result, the determination of the Fund’s actual tax liability may have a
material impact on the Fund’s NAV. The Fund’s daily NAV calculation will be based on then current estimates and assumptions
regarding the Fund’s deferred tax liability and/or asset balances and any applicable valuation allowance, based on all information
available to the Fund at such time. From time to time, the Fund may modify its estimates or assumptions regarding its deferred tax liability
and/or asset balances and any applicable valuation allowance as new information becomes available. Modifications of the Fund’s estimates
or assumptions regarding its deferred tax liability and/or asset balances and any applicable valuation allowance, changes in generally
accepted accounting principles or related guidance or interpretations thereof, limitations imposed on net operating losses (if any) and
changes in applicable tax law could result in increases or decreases in the Fund’s NAV per share, which could be material.
Taxes
(applicable to all Funds except for the Invesco SteelPath Funds and Invesco Master Loan Fund)
A
Fund intends to qualify each year as a regulated investment company (RIC) and, as such, is not subject to entity-level tax on the income
and gain it distributes to shareholders. If you are a taxable investor, dividends and distributions you receive from a Fund generally
are taxable to you whether you reinvest distributions in additional Fund shares or take them in cash. Every year, you will be sent information
showing the amount of dividends and distributions you received from a Fund during the prior calendar year. In addition, investors in taxable
accounts should be aware of the following basic tax points as supplemented below where relevant:
Fund Tax
Basics
◾
A
Fund earns income generally in the form of dividends or interest on its investments. This income, less expenses incurred in the operation
of a Fund, constitutes the Fund’s net investment income from which dividends may be paid to you. If you are a taxable investor,
distributions of net investment income generally are taxable to you as ordinary income.
◾
Distributions
of net short-term capital gains are taxable to you as ordinary income. A Fund with a high portfolio turnover rate (a measure of how frequently
assets within a Fund are bought and sold) is more likely to generate short-term capital gains than a Fund with a low portfolio turnover
rate.
◾
Distributions
of net long-term capital gains are taxable to you as long-term capital gains no matter how long you have owned your Fund shares.
◾
A
portion of income dividends paid by a Fund to you may be reported as qualified dividend income eligible for taxation by individual shareholders
at long-term capital gain rates, provided certain holding period requirements are met. These reduced rates generally are available for
dividends derived from a Fund’s investment in stocks of domestic corporations and qualified foreign corporations. In the case of
a Fund that invests primarily in debt securities, either none or only a nominal portion of the dividends paid by the Fund will be eligible
for taxation at these reduced rates.
◾
The
use of derivatives by a Fund may cause the Fund to realize higher amounts of ordinary income or short-term capital gain, distributions
from which are taxable to individual shareholders at ordinary income tax rates rather than at the more favorable tax rates for long-term
capital gain.
◾
Distributions
declared to shareholders with a record date in October, November or December—if paid to you by the end of January—are taxable
for federal income tax purposes as if received in December.
◾
Any
long-term or short-term capital gains realized on the sale or redemption of your Fund shares will be subject to federal income tax. For
tax
purposes an exchange of your shares for shares of another Fund is the same as a sale. An exchange occurs when the purchase of shares of
a Fund is made using the proceeds from a redemption of shares of another Fund and is effectuated on the same day as the redemption. Your
gain or loss is calculated by subtracting from the gross proceeds your cost basis. Gross proceeds and, for shares acquired on or after
January 1, 2012 and disposed of after that date, cost basis will be reported to you and the Internal Revenue Service (IRS). Cost
basis will be calculated using the Fund’s default method of average cost, unless you instruct the Fund to use a different calculation
method. As a service to you, the Fund will continue to provide to you (but not the IRS) cost basis information for shares acquired before
2012, when available, using the average cost method. Shareholders should carefully review the cost basis information provided by a Fund
and make any additional basis, holding period or other adjustments that are required when reporting these amounts on their federal income
tax returns. If you hold your Fund shares through a broker (or other nominee), please contact that broker (nominee) with respect to reporting
of cost basis and available elections for your account. For more information about the cost basis methods offered by Invesco, please refer
to the Tax Center located under the Account Access & Forms menu of our website at www.Invesco.com/us.
◾
The
conversion of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes
and no gain or loss will be reported on the transaction. This is true whether the conversion occurs automatically pursuant to the terms
of the class or is initiated by the shareholder.
◾
At
the time you purchase your Fund shares, the Fund’s net asset value may reflect undistributed income or undistributed capital gains.
A subsequent distribution to you of such amounts, although constituting a return of your investment, would be taxable. Buying shares in
a Fund just before it declares an income dividend or capital gains distribution is sometimes known as “buying a dividend.”
In addition, a Fund’s net asset value may, at any time, reflect net unrealized appreciation, which may result in future taxable
distributions to you.
◾
By
law, if you do not provide a Fund with your proper taxpayer identification number and certain required certifications, you may be subject
to backup withholding on any distributions of income, capital gains, or proceeds from the sale of your shares. A Fund also must withhold
if the IRS instructs it to do so. When withholding is required, the amount will be 24% of any distributions or proceeds paid.
◾
An
additional 3.8% Medicare tax is imposed on certain net investment income (including ordinary dividends and capital gain distributions
received from a Fund and net gains from redemptions or other taxable dispositions of Fund shares) of U.S. individuals, estates and trusts
to the extent that such person’s “modified adjusted gross income” (in the case of an individual) or “adjusted
gross income” (in the case of an estate or trust) exceeds a threshold amount. This Medicare tax, if applicable, is reported by you
on, and paid with, your federal income tax return.
◾
You
will not be required to include the portion of dividends paid by a Fund derived from interest on U.S. government obligations in your
gross income for purposes of personal and, in some cases, corporate income taxes in many state and local tax jurisdictions. The percentage
of dividends that constitutes dividends derived from interest on federal obligations will be determined annually. This percentage may
differ from the actual percentage of interest received by the Fund on federal obligations for the particular days on which you hold shares.
◾
Fund
distributions and gains from sale or exchange of your Fund shares generally are subject to state and local income taxes.
◾
If
a Fund qualifies to pass through to you the tax benefits from foreign taxes it pays on its investments, and elects to do so, then any
foreign taxes it pays on these investments may be passed through to you. You will then be required to include your pro-rata share of these
taxes in gross income, even though not actually received by you, and will be entitled either to deduct your share of these taxes in computing
your taxable income, or to claim a foreign tax credit for these taxes against your U.S. federal income tax.
A-21 The
Invesco Funds
◾
Foreign
investors should be aware that U.S. withholding, special certification requirements to avoid U.S. backup withholding and claim
any treaty benefits, and estate taxes may apply to an investment in a Fund.
◾
Under
the Foreign Account Tax Compliance Act (FATCA), a Fund will be required to withhold a 30% tax on income dividends made by the Fund to
certain foreign entities, referred to as foreign financial institutions or non-financial foreign entities, that fail to comply (or be
deemed compliant) with extensive reporting and withholding requirements designed to inform the U.S. Department of the Treasury of U.S.-owned
foreign investment accounts. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide otherwise (which
is not expected). A Fund may disclose the information that it receives from its shareholders to the IRS, non-U.S. taxing authorities or
other parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that is a shareholder
of a Fund fails to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.
◾
If
a Fund invests in an underlying fund taxed as a RIC, please see any relevant section below for more information regarding the Fund’s
investment in such underlying fund.
The
above discussion concerning the taxability of Fund dividends and distributions and of redemptions and exchanges of Fund shares is inapplicable
to investors holding shares through a tax-advantaged arrangement, such as Retirement and Benefit Plans or 529 college savings plans. Such
investors should refer to the applicable account documents/program description for that arrangement for more information regarding the
tax consequences of holding and redeeming Fund shares.
Funds
Investing in Municipal Securities
◾
You
will not be required to include the “exempt-interest” portion of dividends paid by the Fund in either your gross income for
federal income tax purposes or your net investment income subject to the additional 3.8% Medicare tax. You will be required to report
the receipt of exempt-interest dividends and other tax-exempt interest on your federal income tax returns. The percentage of dividends
that constitutes exempt-interest dividends will be determined annually. This percentage may differ from the actual percentage of exempt
interest received by the Fund for the particular days in which you hold shares.
◾
A
Fund may invest in municipal securities the interest on which constitutes an item of tax preference and could give rise to a federal alternative
minimum tax liability for noncorporate shareholders, unless such municipal securities were issued in 2009 or 2010.
◾
Exempt-interest
dividends from interest earned on municipal securities of a state, or its political subdivisions, generally are exempt from that state’s
personal income tax. Most states, however, do not grant tax-free treatment to interest from municipal securities of other states.
◾
A
Fund may invest a portion of its assets in securities that pay income that is not tax-exempt. To the extent that dividends paid by a Fund
are derived from taxable investments or realized capital gains, they will be taxable as ordinary income or long-term capital gains.
◾
A
Fund may distribute to you any market discount and net short-term capital gains from the sale of its portfolio securities. If you are
a taxable investor, Fund distributions from this income are taxable to you as ordinary income, and generally will neither qualify for
the dividends-received deduction in the case of corporate shareholders nor as qualified dividend income subject to reduced rates of taxation
in the case of noncorporate shareholders.
◾
Exempt-interest
dividends from a Fund are taken into account when determining the taxable portion of your social security or railroad retirement benefits,
may be subject to state and local income taxes, may affect the deductibility of interest on certain indebtedness, and may have other collateral
federal income tax consequences for you.
◾
There
are risks that: (a) a security issued as tax-exempt may be reclassified by the IRS or a state tax authority as taxable and/or (b) future
legislative,
administrative or court actions could adversely impact the qualification of income from a tax-exempt security as tax-free. Such reclassifications
or actions could cause interest from a security to become taxable, possibly retroactively, subjecting you to increased tax liability.
In addition, such reclassifications or actions could cause the value of a security, and therefore, the value of the Fund’s shares,
to decline.
Money
Market Funds
◾
A
Fund does not anticipate realizing any long-term capital gains.
◾
If
a Fund expects to maintain a stable net asset value of $1.00 per share, investors should not have any gain or loss on sale or exchange
of Fund shares (unless the investor incurs a liquidity fee on such sale or exchange). See “Liquidity Fees and Redemption Gates.”
◾
There
is some degree of uncertainty with respect to the tax treatment of liquidity fees received by a Fund, and such tax treatment may be the
subject of future IRS guidance. If a Fund receives liquidity fees, it will consider the appropriate tax treatment of such fees to the
Fund at such time.
◾
Unless
you choose to adopt a simplified “NAV method” of accounting (described below), any capital gain or loss on the sale or exchange
of Fund shares (as noted above) generally will be treated either as short-term if you held your Fund shares for one year or less, or long-term
if you held your Fund shares longer. If you elect to adopt the NAV method of accounting, rather than computing gain or loss on every taxable
disposition of Fund shares as described above, you would determine your gain or loss based on the change in the aggregate value of your
Fund shares during a computation period (such as your taxable year), reduced by your net investment (purchases minus sales) in those shares
during that period. Under the NAV method, any resulting net capital gain or loss would be treated as short-term capital gain or loss.
Funds
Investing in Real Estate Securities
◾
Because
of “noncash” expenses such as property depreciation, the cash flow of a REIT that owns properties will exceed its taxable
income. The REIT, and in turn a Fund, may distribute this excess cash to shareholders. Such a distribution is classified as a return of
capital. Return of capital distributions generally are not taxable to you. Your cost basis in your Fund shares will be decreased by the
amount of any return of capital. Any return of capital distributions in excess of your cost basis will be treated as capital gains.
◾
Dividends
paid to shareholders from the Funds’ investments in U.S. REITs generally will not qualify for taxation at long-term capital gain
rates applicable to qualified dividend income.
◾
The
Fund may derive “excess inclusion income” from certain equity interests in mortgage pooling vehicles either directly or through
an investment in a U.S. REIT. Please see the SAI for a discussion of the risks and special tax consequences to shareholders in the event
the Fund realizes excess inclusion income in excess of certain threshold amounts.
◾
Under
the Tax Cuts and Jobs Act, “qualified REIT dividends” (i.e., ordinary REIT dividends other than capital gain dividends and
portions of REIT dividends designated as qualified dividend income) are treated as eligible for a 20% deduction by noncorporate taxpayers.
The Fund may choose to report the special character of “qualified REIT dividends” to a shareholder, provided both the Fund
and a shareholder meet certain holding period requirements with respect to their shares.
◾
The
Fund’s foreign shareholders should see the SAI for a discussion of the risks and special tax consequences to them from a sale of
a U.S. real property interest by a REIT in which the Fund invests.
Funds
Investing in Partnerships
◾
Taxes,
penalties, and interest associated with an audit of a partnership
are generally required to be assessed and collected at the partnership level. Therefore, an adverse federal income tax audit of a partnership
that a Fund invests in (including MLPs taxed as partnerships) could result in the Fund being required to pay federal income tax. A Fund
may have little input in any audit asserted against a partnership and may be contractually or legally obligated to make payments in regard
to deficiencies asserted without the ability to put forward an independent defense. Accordingly,
A-22 The
Invesco Funds
even
if a partnership in which the Fund invests were to remain classified as a partnership (instead of as a corporation), it could be required
to pay additional taxes, interest and penalties as a result of an audit adjustment, and the Fund, as a direct or indirect partner of such
partnership, could be required to bear the economic burden of those taxes, interest and penalties, which would reduce the value of Fund
shares.
◾
Under
the Tax Cuts and Jobs Act “qualified publicly traded partnership income” is treated as eligible for a 20% deduction by noncorporate
taxpayers. The legislation does not contain a provision permitting a RIC, such as a Fund, to pass the special character of this income
through to its shareholders. It is uncertain whether a future technical corrections bill or regulations issued by the IRS will address
this issue to enable a Fund to pass through the special character of “qualified publicly traded partnership income” to its
shareholders.
◾
Some
amounts received by a Fund from the MLPs in which it invests likely will be treated as returns of capital to such Fund because of accelerated
deductions available to the MLPs. The receipt of returns of capital from the MLPs in which a Fund invests could cause some or all of the
Fund’s distributions to be classified as a return of capital. Return of capital distributions generally are not taxable to you.
Your cost basis in your Fund shares will be decreased by the amount of any return of capital. Any return of capital distributions in excess
of your cost basis will be treated as capital gains.
Funds
Investing in Commodities
◾
The
Funds’ strategies of investing through their respective Subsidiary in derivatives and other financially linked instruments whose
performance is expected to correspond to the commodity markets may cause the Funds to recognize more ordinary income and short-term capital
gains taxable as ordinary income than would be the case if the Funds invested directly in commodities.
◾
The
Funds must meet certain requirements under the Code for favorable tax treatment as a RIC, including asset diversification and income requirements.
The IRS has issued a revenue ruling which holds that income derived from commodity-linked swaps is not qualifying income for purposes
of the Income Requirement. In a subsequent revenue ruling, as well as in a number of follow-on private letter rulings (upon which only
the fund that received the private letter ruling may rely), the IRS provides that income from certain alternative investments which create
commodity exposure, such as certain commodity-linked or structured notes or a corporate subsidiary that invests in commodities, may be
considered qualifying income under the Code. However, the portion of such rulings relating to the treatment of a corporation as a regulated
investment company that require a determination of whether a financial instrument or position is a security under section 2(a)(36) of
the 1940 Act was revoked because of changes in the IRS’s position.
(A financial instrument or position that constitutes a security
under section 2(a)(36) of the 1940 Act generates qualifying income for a corporation taxed as a regulated investment company.) The Funds
intend to treat the income each derives from commodity-linked notes as qualifying income based on an opinion from counsel confirming that
income from such investments should be qualifying income because such commodity-linked notes constitute securities under section 2(a)(36)
of the 1940 Act. Each Subsidiary will be classified for federal income tax purposes as a controlled foreign corporation (CFC) with respect
to the Fund. As such, the Fund will be required to include in its gross income each year amounts earned by the Subsidiary during that
year (“Subpart F” income), whether or not such earnings are distributed by the Subsidiary to the Fund (deemed inclusions).
Treasury Regulations also permit the Fund to treat such deemed inclusions of “Subpart F” income from the Subsidiary as qualifying
income to the Fund, even if the Subsidiary does not make a distribution of such income. Consequently, the Fund and the Subsidiary reserve
the right to rely on deemed inclusions being treated as qualifying income to the Fund consistent with recently released Treasury Regulations.
If, contrary to the opinion of counsel or other guidance issued by the IRS, the IRS were to determine that income from direct investment
in commodity-linked notes is non-qualifying, a Fund might fail to satisfy
the
income requirement. In lieu of disqualification, the Funds are permitted to pay a tax for certain failures to satisfy the asset diversification
or income requirements, which, in general, are limited to those due to reasonable cause and not willful neglect. The Funds intend to limit
their investments in their respective Subsidiary to no more than 25% of the value of each Fund’s total assets in order to satisfy
the asset diversification requirement.
Funds
Investing in Foreign Currencies
◾
The
Funds may realize gains from the sale or other disposition of foreign currencies (including but not limited to gains from options, futures
or forward contracts) derived from investing in securities or foreign currencies. The U.S. Treasury Department is authorized to issue
regulations on whether the realization of such foreign currency gains is qualified income for the Funds. If such regulations are issued,
each Fund may not qualify as a RIC and/or the Fund may change its investment policy. As of the date of this prospectus, no regulations
have been issued pursuant to this authorization. It is possible, however, that such regulations may be issued in the future. Additionally,
the IRS has not issued any guidance on how to apply the asset diversification test to such foreign currency positions. Thus, the IRS’
determination as to how to treat such foreign currency positions for purposes of satisfying the asset diversification test might differ
from that of each Fund resulting in the Fund’s failure to qualify as a RIC. In lieu of disqualification, each Fund is permitted
to pay a tax for certain failures to satisfy the asset diversification or income requirements, which, in general, are limited to those
due to reasonable cause and not willful neglect.
◾
The
Funds’ transactions in foreign currencies may give rise to ordinary income or loss to the extent such income or loss results from
fluctuations in the value of the foreign currency concerned. This treatment could increase or decrease the Funds' ordinary income distributions
to you, and may cause some or all of the Funds' previously distributed income to be classified as a return of capital. Return of capital
distributions generally are not taxable to you. Your cost basis in your Fund shares will be decreased by the amount of any return of capital.
Any return of capital distributions in excess of your cost basis will be treated as capital gains.
This
discussion of “Taxes” is for general information only and not
tax advice. All investors should consult their own tax advisers as to the federal, state, local and foreign tax provisions applicable
to them.
Taxes
(applicable to the Invesco SteelPath Funds
only)
Although
the Code generally provides that a RIC does not pay an entity-level income tax, provided that it distributes all or substantially all
of its income, the Fund is not and does not anticipate becoming eligible to elect to be treated as a RIC because most or substantially
all of the Fund’s investments will consist of investments in MLP securities. The RIC tax rules therefore have no application to
the Fund or to its shareholders. As a result, the Fund is treated as a regular corporation, or “C” corporation, for U.S. federal
income tax purposes, and generally is subject to U.S. federal income tax on its taxable income at the corporate income tax rate. In addition,
as a regular corporation, the Fund will be subject to state and local taxes by reason of its tax status and its investments in MLPs. Therefore,
the Fund may have to pay federal, multiple state, and local taxes, which would reduce the Fund’s cash available to make distributions
to shareholders. An estimate for federal, state, and local tax liabilities will reduce the fund’s net asset value. The extent to
which the Fund is required to pay U.S. federal, state or local corporate income, franchise or other corporate taxes could materially reduce
the Fund’s cash available to make distributions to shareholders. In addition, investors in taxable accounts should be aware of the
following basic tax points as supplemented below where relevant:
Fund
Tax Basics
◾
The
Fund intends to invest a significant portion of its assets in MLPs, which are generally treated as partnerships for U.S. federal income
tax purposes. To the extent that the Fund invests in equity securities of an MLP, the Fund will be a partner in such MLP. Accordingly,
the Fund will be
A-23 The
Invesco Funds
required
to take into account the Fund’s allocable share of the income, gains, losses, deductions, and credits recognized by each such MLP,
regardless of whether the MLP distributes cash to the Fund. MLP distributions to partners, such as the Fund, are not taxable unless the
cash amount (or in certain cases, the fair market value of marketable securities) distributed exceeds the Fund’s basis in its MLP
interest. The Fund expects that the cash distributions it will receive with respect to its investments in equity securities of MLPs will
exceed the net taxable income allocated to the Fund from such MLPs because of tax deductions such as depreciation, amortization and depletion
that will be allocated to the Fund from the MLPs. No assurance, however, can be given in this regard. If this expectation is not realized,
the Fund will have a larger corporate income tax expense than expected, which will result in less cash available for distribution to shareholders.
◾
The
Fund will recognize gain or loss on the sale, exchange or other taxable disposition of its portfolio assets, including equity securities
of MLPs, equal to the difference between the amount realized by the Fund on the sale, exchange or other taxable disposition and the Fund’s
adjusted tax basis in such assets. Any such gain will be subject to U.S. federal income tax at the corporate income tax rate, regardless
of how long the Fund has held such assets since preferential capital gain rates do not apply to regular corporations such as the Fund.
The amount realized by the Fund in any case generally will be the amount paid by the purchaser of the assets plus, in the case of MLP
equity securities, the Fund’s allocable share, if any, of the MLP’s debt that will be allocated to the purchaser as a result
of the sale, exchange or other taxable disposition. The Fund’s tax basis in its equity securities in an MLP generally is equal to
the amount the Fund paid for the equity securities, (i) increased by the Fund’s allocable share of the MLP’s net taxable income
and certain MLP debt, if any, and (ii) decreased by the Fund’s allocable share of the MLP’s net losses and any distributions
received by the Fund from the MLP. Although any distribution by an MLP to the Fund in excess of the Fund’s allocable share of such
MLP’s net taxable income may create a temporary economic benefit to the Fund, net of a deferred tax liability, such distribution
will decrease the Fund’s tax basis in its MLP investment and will therefore increase the amount of gain (or decrease the amount
of loss) that will be recognized on the sale of an equity security in the MLP by the Fund. To the extent that the Fund has a net capital
loss in any year, the net capital loss can be carried back three taxable years and forward five taxable years to reduce the Fund’s
capital gains in such years. In the event a capital loss carryover cannot be utilized in the carryover periods, the Fund’s federal
income tax liability may be higher than expected, which will result in less cash available to distribute to shareholders.
◾
Distributions
by the Fund of cash or property in respect of the shares (other than certain distributions in redemption of shares) will be treated as
dividends for U.S. federal income tax purposes to the extent paid from the Fund’s current or accumulated earnings and profits (as
determined under U.S. federal income tax principles). Generally, the Fund’s earnings and profits are computed based upon the Fund’s
taxable income (loss), with certain specified adjustments. Any such dividend likely will be eligible for the dividends-received deduction
if received by an otherwise qualifying corporate U.S. shareholder that meets certain holding period and other requirements for the dividends-received
deduction. Dividends paid by the Fund to certain non-corporate U.S. shareholders (including individuals), generally are eligible for U.S.
federal income taxation at the rates generally applicable to long-term capital gains for individuals provided that the U.S. shareholder
receiving the dividend satisfies applicable holding period and other requirements. Otherwise, dividends paid by the Fund to non-corporate
U.S. Shareholders (including individuals) will be taxable at ordinary income rates.
◾
If
the amount of a Fund distribution exceeds the Fund’s current and accumulated earnings and profits, such excess will be treated first
as a tax-deferred return of capital to the extent of, and in reduction of, a shareholder’s tax basis in the shares, and thereafter
as capital gain to the extent the shareholder held the shares as a capital asset. Any such capital gain will be long-term capital gain
if such shareholder has held the applicable shares for more than one year. The portion of the distribution
received
by a shareholder from the Fund that is treated as a return of capital will decrease the shareholder’s tax basis in his or her Fund
shares (but not below zero), which will result in an increase in the amount of gain (or decrease in the amount of loss) that will be recognized
by the shareholder for tax purposes on the later sale of such Fund shares.
◾
The
Fund anticipates that the cash distributions it will receive with respect to its investments in equity securities of MLPs and which it
will distribute to its shareholders will exceed the Fund’s current and accumulated earnings and profits. Accordingly, the Fund expects
that only a part of its distributions to shareholders with respect to the shares will be treated as dividends for U.S. federal income
tax purposes. No assurance, however, can be given in this regard.
◾
Special
rules may apply to the calculation of the Fund’s earnings and profits. For example, the Fund’s earnings and profits will be
calculated using the straight-line depreciation method rather than the accelerated depreciation method. This difference in treatment may,
for example, result in the Fund’s earnings and profits being higher than the Fund’s taxable income or loss in a particular
year if the MLPs in which the Fund invests calculate their income using accelerated depreciation. Because of these special earnings profits
rules, the Fund may make distributions in a particular year out of earnings and profits (treated as dividends) in excess of the amount
of the Fund’s taxable income or loss for such year, which means that a larger percentage of the Fund ’s distributions could
be taxable to shareholders as ordinary income instead of tax-deferred return of capital or capital gain.
◾
Shareholders
that receive distributions in shares rather than in cash will be treated for U.S. federal income tax purposes as having (i) received a
cash distribution equal to the fair market value of the shares received and (ii) reinvested such amount in shares.
◾
A
redemption of shares will be treated as a sale or exchange of such shares, provided the redemption is not essentially equivalent to a
dividend, is a substantially disproportionate redemption, is a complete redemption of a shareholder’s entire interest in the Fund,
or is in partial liquidation of such Fund. Redemptions that do not qualify for sale or exchange treatment will be treated as distributions
as described above. Upon a redemption treated as a sale or exchange under these rules, a shareholder generally will recognize capital
gain or loss equal to the difference between the adjusted tax basis of his or her shares and the amount received when they are sold.
◾
If
the Fund is required to sell portfolio securities to meet redemption requests, the Fund may recognize income and gains for U.S. federal,
state and local income and other tax purposes, which may result in the imposition of corporate income or other taxes on the Fund and may
increase the Fund’s current and accumulated earnings and profits, which will result in a greater portion of distributions to Fund
shareholders being treated as dividends. Any long-term or short-term capital gains realized on sale or redemption of your Fund shares
will be subject to federal income tax. For tax purposes an exchange of your shares for shares of another Fund is the same as a sale. An
exchange occurs when the purchase of shares of a Fund is made using the proceeds from a redemption of shares of another Fund and is effectuated
on the same day as the redemption. Your gain or loss is calculated by subtracting from the gross proceeds your cost basis. Gross proceeds
and, for shares acquired on or after January 1, 2012 and disposed of after that date, cost basis will be reported to you and the IRS.
Cost basis will be calculated using the Fund’s default method of first-in, first-out (FIFO), unless you instruct the Fund to use
a different calculation method. Shareholders should carefully review the cost basis information provided by a Fund and make any additional
basis, holding period or other adjustments that are required when reporting these amounts on their federal income tax returns. If you
hold your Fund shares through a broker (or other nominee), please contact that broker (nominee) with respect to reporting of cost basis
and available elections for your account. For more information about the cost basis methods offered by Invesco, please refer to the Tax
Center located under the Account Access & Forms menu of our website at www.invesco.com/us.
A-24 The
Invesco Funds
◾
The
conversion of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes
and no gain or loss will be reported on the transaction. This is true whether the conversion occurs automatically pursuant to the terms
of the class or is initiated by the shareholder.
◾
At
the time you purchase your Fund shares, the Fund’s net asset value may reflect undistributed income. A subsequent distribution to
you of such amounts, although constituting a return of your investment, would be taxable. Buying shares in a Fund just before it declares
an income dividend is sometimes known as “buying a dividend.” In addition, a Fund’s net asset value may, at any time,
reflect net unrealized appreciation, which may result in future taxable distributions to you.
◾
By
law, if you do not provide a Fund with your proper taxpayer identification number and certain required certifications, you may be subject
to backup withholding on any distributions of income, capital gains, or proceeds from the sale of your shares. A Fund also must withhold
if the IRS instructs it to do so. When withholding is required, the amount will be 24% of any distributions or proceeds paid.
◾
A
3.8% Medicare tax is imposed on certain net investment income (including ordinary dividends received from a Fund and net gains from redemptions
or other taxable dispositions of Fund shares) of U.S. individuals, estates and trusts to the extent that such person’s “modified
adjusted gross income” (in the case of an individual) or “adjusted gross income” (in the case of an estate or trust)
exceeds a threshold amount. This Medicare tax, if applicable, is reported by you on, and paid with, your federal income tax return.
◾
Fund
distributions and gains from sale or exchange of your Fund shares generally are subject to state and local income taxes.
◾
Foreign
investors should be aware that U.S. withholding, special certification requirements to avoid U.S. backup withholding and claim any treaty
benefits, and estate taxes may apply to an investment in a Fund.
◾
Under
the Foreign Account Tax Compliance Act (FATCA), a Fund will be required to withhold a 30% tax on income dividends made by the Fund to
certain foreign entities, referred to as foreign financial institutions or non-financial foreign entities, that fail to comply (or be
deemed compliant) with extensive reporting and withholding requirements designed to inform the U.S. Department of the Treasury of U.S.-owned
foreign investment accounts. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide otherwise (which
is not expected). A Fund may disclose the information that it receives from its shareholders to the IRS, non-U.S. taxing authorities or
other parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that is a shareholder
of a Fund fails to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.
◾
Taxes,
penalties, and interest associated with an audit of a partnership are generally required to be assessed and collected at the partnership
level. Therefore, an adverse federal income tax audit of an MLP taxed as a partnership that the Fund invests in could result in the Fund
being required to pay federal income tax. The Fund may have little input in any audit asserted against an MLP and may be contractually
or legally obligated to make payments in regard to deficiencies asserted without the ability to put forward an independent defense. Accordingly,
even if an MLP in which the Fund invests were to remain classified as a partnership, it could be required to pay additional taxes, interest
and penalties as a result of an audit adjustment, and the Fund, as a direct or indirect partner of such MLP, could be required to bear
the economic burden of those taxes, interest and penalties, which would reduce the value of Fund shares.
◾
Under
the Tax Cuts and Jobs Act certain “qualified publicly traded partnership income” (e.g., certain income from certain of the
MLPs in which the Fund invests) is treated as eligible for a 20% deduction by noncorporate taxpayers. The Tax Cuts and Jobs Act does not
contain a provision permitting an entity, such as the Fund, to benefit from this
deduction
(since the Fund is taxed as a “C” corporation) or pass the special character of this income through to its shareholders. Qualified
publicly traded partnership income allocated to a noncorporate investor investing directly in an MLP might, however, be eligible for the
deduction.
The
above discussion concerning the taxability of Fund dividends and distributions
and of redemptions and exchanges of Fund shares is inapplicable to investors holding shares through a tax-advantaged arrangement, such
as Retirement and Benefit Plans or 529 college savings plans. Such investors should refer to the applicable account documents/program
description for that arrangement for more information regarding the tax consequences of holding and redeeming Fund shares.
This
discussion of “Taxes” is for general information only and not
tax advice. All investors should consult their own tax advisers as to the federal, state, local and foreign tax provisions applicable
to them.
Federal
Income Taxes (applicable to Invesco Master Loan Fund only)
United
States Taxes
The
Fund is classified as a partnership and will not be a regulated investment company for US federal income tax purposes. As a partnership,
the Fund is not a taxable entity for federal income tax purposes and, subject to the application of the partnership audit rules described
below, incurs no federal income tax liability. Each Investor is required to take into account its proportionate share of items of income,
gain, loss and deduction of the partnership in computing its federal income tax liability regardless of whether or not cash or property
distributions are then made by the Fund. Following the close of the Fund’s taxable year end, Investors will receive a tax statement
entitled Schedule K-1 Partner’s Share of Income, Deductions, Credits, etc., which reports the tax status of their distributive share
of the Fund’s items for the previous year.
Taxation
of Distributions, Sales and Exchanges
In
general, distributions of money by the Fund to an Investor will represent a non-taxable return of capital up to the amount of an Investor’s
adjusted tax basis in its shares. An Investor will recognize gain to the extent that any money distributed by the Fund exceeds the Investor’s
adjusted tax basis in its shares. In the case of a non-taxable return of capital by the Fund to an Investor, other than in liquidation
of the Investor’s interest in the Fund, the tax basis of his shares will be reduced (but not below zero) and will result in an increase
in the amount of gain (or decrease in the amount of loss) that will be recognized by the Investor on the later sale of its shares. A distribution
in partial or complete redemption of your shares in the Fund is taxable as a sale or exchange only to the extent the amount of money received
exceeds the tax basis of your entire interest in the Fund. Any loss may be recognized only if you redeem your entire interest in the Fund
for money.
When
you sell shares of the Fund, you may have a capital gain or loss.
Derivatives
The
use of derivatives by the Fund may cause the Fund to realize higher amounts of ordinary income or short-term capital gain, allocations
of which are taxable to individual Investors at ordinary income tax rates rather than at the more favorable tax rates for long-term capital
gain. Changes in government regulation of derivative instruments could affect the character, timing and amount of the Fund’s taxable
income or gains, and may limit the Fund from using certain types of derivative instruments as part of its investment strategy.
Risk
of Audit of the Fund
Under
the partnership audit rules, which are generally applicable to tax years beginning after December 31, 2017, the Internal Revenue Service
(“IRS”) may collect any taxes resulting from audit adjustments to the Fund’s income tax returns (including any applicable
penalties and interest) directly from the Fund. In that case, current Investors would bear some or all of the
A-25 The
Invesco Funds
tax liability
resulting from such audit adjustment, even if they did not own interests in the Fund during the tax year under audit. The Fund may have
the ability to shift any such tax liability to the Investors in accordance with their interests in the Fund during the year under audit,
but there can be no assurance that the Fund will be able to do so under all circumstances. For taxable years not subject to the new audit
rules, items of Fund income, gain, loss, deduction and credit will be determined at the Fund level in a unified audit. NO REPRESENTATION
OR WARRANTY OF ANY KIND IS MADE WITH RESPECT TO THE TAXATION, DEDUCTIBILITY OR CAPITALIZATION OF ANY ITEM BY THE FUND OR INVESTOR. In
addition, the “partnership representative” (tax matters partner, for taxable years before the partnership audit rules become
effective) will have the sole authority to act on the Fund’s behalf for purposes of, among other things, federal income tax audits
and judicial review of administrative adjustments by the IRS, and any such actions will be binding on the Fund and all of the Investors.
Unrelated
Business Taxable Income
An
allocable share of a tax-exempt Investor’s income will be “unrelated business taxable income” (“UBTI”) to
the extent that the Fund borrows money to acquire property or invests in assets that produce UBTI.
Medicare
Tax
An
additional 3.8% Medicare tax is imposed on certain net investment income of US individuals, estates and trusts to the extent that such
person’s “modified adjusted gross income” (in the case of an individual) or “adjusted gross income” (in
the case of an estate or trust) exceeds a threshold amount. “Net investment income,” for these purposes, means investment
income (including (i) net gains from the taxable disposition of shares of a Fund to the extent the net gain would be taken into account
by the Investor if the Fund sold all of its property for fair market value immediately before the disposition of the shares of the Fund,
and (ii) an allocable share of a Fund’s interest, dividends and net gains) reduced by the deductions properly allocable to such
income. This Medicare tax, if applicable, is reported by Investors on, and paid with, the Investor’s federal income tax return.
State,
Local and Non-US Tax Matters
An
Investor’s distributive share of the Fund’s income, and gains from the sale or exchange of an Investor’s Fund shares,
generally are subject to state and local taxes in the jurisdiction in which the Investor resides or is otherwise subject to tax.
Prospective
investors should consider their individual state and local tax consequences
of an investment in the Fund.
Tax
Considerations for Non-US Investors
If,
as anticipated, the Fund is not deemed to be engaged in a US trade or business, the Fund generally will be required to withhold tax on
the distributive share of certain items of gross income from US sources allocated to non-US Investors at a 30% (or lower treaty) rate.
Certain categories of income, including portfolio interest, are not subject to US withholding tax. Capital gains (other than gain realized
on disposition of US real property interests) are not subject to US withholding tax unless the non-US Investor is a nonresident alien
individual present in the United States for a period or periods aggregating 183 days or more during the taxable year. If, on the other
hand, the Fund derives income which is effectively connected with a US trade or business carried on by the Fund, this 30% tax will not
apply to such effectively connected income of the Fund, and the Fund generally will be required to withhold tax from the amount of effectively
connected income allocable to non-US Investors at the highest rate of tax applicable to US residents, and non-US Investors generally would
be required to file US income tax returns and be subject to US income tax on a net basis. Gain or loss on a sale of shares will be treated
as effectively connected with a U.S. trade or business to the extent that a foreign corporation or foreign individual that owns the shares
(whether directly or indirectly through other partnerships) would have had effectively connected gain or loss had the partnership sold
its underlying assets and applicable US
withholding
tax will apply. Non-US Investors may be subject to US estate tax and are subject to special US tax certification requirements.
Other
Reporting and Withholding Requirements
Under
the Foreign Account Tax Compliance Act (“FATCA”), the Fund will be required to withhold at a 30% rate on certain US source
payments (such as interest and dividends) to certain Investors if the Investor fails to provide the Fund with the information which identifies
its direct and indirect US ownership. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide otherwise (which
is not expected). A Fund may disclose the information that it receives from an Investor to the IRS, non-US taxing authorities or other
parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that is an Investor fails
to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.
For
a more complete discussion of the federal income tax consequences
of investing in the Fund, see the Statement of Additional Information.
This
discussion of “Federal Income Taxes” is not intended or written
to be used as tax advice. Because everyone’s tax situation is unique, Investors should consult their tax professional about federal,
state, local and foreign tax consequences before making an investment in the Fund.
Payments
to Financial Intermediaries – All Share Classes except Class R6 shares
The
financial adviser or intermediary through which you purchase your shares may receive all or a portion of the sales charges and distribution
fees discussed above. In addition to those payments, Invesco Distributors and other Invesco Affiliates, may make additional cash payments
to financial intermediaries in connection with the promotion and sale of shares of the Funds. These additional cash payments may include
cash payments and other payments for certain marketing and support services. Invesco Affiliates make these payments from their own resources,
from Invesco Distributors’ retention of initial sales charges and from payments to Invesco Distributors made by the Funds under
their 12b-1 plans. In the context of this prospectus, “financial intermediaries” include any broker, dealer, bank (including
bank trust departments), registered investment adviser, financial planner, retirement plan administrator, insurance company and any other
financial intermediary having a selling, administration or similar agreement with Invesco Affiliates.
The
benefits Invesco Affiliates receive when they make these payments include,
among other things, placing the Funds on the financial intermediary’s fund sales system, and access (in some cases on a preferential
basis over other competitors) to individual members of the financial intermediary’s sales force or to the financial intermediary’s
management. These payments are sometimes referred to as “shelf space” payments because the payments compensate the financial
intermediary for including the Funds in its fund sales system (on its “sales shelf”). Invesco Affiliates compensate financial
intermediaries differently depending typically on the level and/or type of considerations provided by the financial intermediary. The
payments Invesco Affiliates make may be calculated based on sales of shares of the Funds (Sales-Based Payments), in which case the total
amount of such payments shall not exceed 0.25% (0.10% for Class R5 shares) of the public offering price of all shares sold by the financial
intermediary during the particular period. Payments may also be calculated based on the average daily net assets of the applicable Funds
attributable to that particular financial intermediary (Asset-Based Payments), in which case the total amount of such cash payments shall
not exceed 0.25% per annum of those assets during a defined period. Sales-Based Payments primarily create incentives to make new sales
of shares of the Funds and Asset-Based Payments primarily create incentives to retain previously sold shares of the Funds in investor
accounts. Invesco Affiliates
A-26 The
Invesco Funds
may pay a financial
intermediary either or both Sales-Based Payments and Asset-Based Payments.
Invesco
Affiliates are motivated to make these payments as they promote
the sale of Fund shares and the retention of those investments by clients of the financial intermediaries. To the extent financial intermediaries
sell more shares of the Funds or retain shares of the Funds in their clients’ accounts, Invesco Affiliates benefit from the incremental
management and other fees paid to Invesco Affiliates by the Funds with respect to those assets.
The
Funds’ transfer agent may make payments to certain financial intermediaries
for certain administrative services, including record keeping and sub-accounting of shareholder accounts pursuant to a sub-transfer agency,
omnibus account service or sub-accounting agreement. All fees payable by Invesco Affiliates under this category of services are charged
back to the Funds, subject to certain limitations approved by the Board.
You
can find further details in the Fund’s SAI about these payments and the
services provided by financial intermediaries. In certain cases these payments could be significant to the financial intermediaries. Your
financial adviser may charge you additional fees or commissions other than those disclosed in this prospectus. You can ask your financial
adviser about any payments it receives from Invesco Affiliates or the Funds, as well as about fees and/or commissions it charges.
Important
Notice Regarding Delivery of Security Holder Documents
To
reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address
(Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not
want the mailing of these documents to be combined with those for other members of your household, please contact the Funds’ transfer
agent at 800-959-4246 or contact your financial institution. The Funds’ transfer agent will begin sending you individual copies
for each account within thirty days after receiving your request.
A-27 The
Invesco Funds
Obtaining Additional Information
More information
may be obtained free of charge upon request. The SAI, a current version of which is on file with the SEC, contains more details about
the Fund and is incorporated by reference into this prospectus (is legally a part of this prospectus). Annual and semi-annual reports
to shareholders contain additional information about the Fund’s investments. The Fund’s annual report also discusses the market
conditions and investment strategies that significantly affected the Fund’s performance during its last fiscal year. The Fund also
files its complete schedule of portfolio holdings with the SEC for the 1st and 3rd quarters of each fiscal year as an exhibit to its reports
on Form N-PORT.
If
you have questions about an Invesco Fund or your account, or you wish to obtain a free copy of the Fund’s current SAI, annual or
semi-annual reports or Form N-PORT, please contact us.
|
By
Mail: |
Invesco
Investment Services, Inc.
P.O.
Box 219078
Kansas
City, MO 64121-9078 |
|
By
Telephone: |
(800)
959-4246 |
|
On
the Internet: |
You
can send us a request by e-mail or
download
prospectuses, SAIs, annual or
semi-annual
reports via our website:
www.invesco.com/us
|
Reports
and other information about the Fund are available on the EDGAR Database on the SEC's Internet site at http://www.sec.gov, and copies
of this information may be obtained, after paying a duplicating fee, by electronic request at the following e-mail address: publicinfo@sec.gov.
|
Invesco
Core Plus Bond Fund
SEC 1940 Act file
number: 811-09913 |
|
invesco.com/us
|
CPB-PRO-1
|
Prospectus
December
16,
2022
Class:
A (OPOCX ), C (ODICX ),
R (ODINX ), Y (ODIYX ),
R5 (DIGGX ), R6 (ODIIX )
Invesco
Discovery 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.
The
Fund has limited public sales of its shares to certain investors.
An
investment in the Fund:
◾
is
not FDIC insured;
◾
may
lose value; and
◾
is
not guaranteed by a bank.
Table of Contents
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A-1
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A-1
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A-2
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A-3
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A-3
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A-10
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A-11
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A-13
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A-15
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A-17
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A-17
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A-18
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A-21
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A-23
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A-25
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A-26
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A-27
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Back
Cover |
Invesco
Discovery Fund
The
Fund’s investment objective is to seek 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
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|
Maximum
Sales Charge (Load) Imposed on
Purchases
(as a percentage of offering price) |
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Maximum
Deferred Sales Charge (Load) (as a
percentage
of original purchase price or
redemption
proceeds, whichever is less) |
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Class:
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A
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C
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R
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Y
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R5
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R6
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Management
Fees |
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Distribution
and/or Service (12b-1) Fees |
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Other
Expenses |
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Total
Annual Fund Operating Expenses |
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1
The
Example assumes that you invest $10,000 in the Fund for the time periods
indicated and then redeem all of your shares at the end of those periods. This Example does not include commissions and/or other forms
of compensation that investors may pay on transactions in Class Y and Class R6 shares. The Example also assumes that your investment has
a 5% return each year and that the Fund’s operating expenses remain the same.
Although
your actual costs may be higher or lower, based on these assumptions,
your costs would be:
|
|
1
Year |
3
Years |
5
Years |
10
Years |
|
Class
A |
$
|
$
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$
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$
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Class
C |
$
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$
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$
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$
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Class
R |
$
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$
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$
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$
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Class
Y |
$
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$
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$
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$
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Class
R5 |
$
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$
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$
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$
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Class
R6 |
$
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$
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$
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$
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1
Year |
3
Years |
5
Years |
10
Years |
|
Class
A |
$
|
$
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$
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$
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Class
C |
$
|
$
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$
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$
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Class
R |
$
|
$
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$
|
$
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Class
Y |
$
|
$
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$
|
$
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Class
R5 |
$
|
$
|
$
|
$
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|
Class
R6 |
$
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$
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$
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$
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The
Fund mainly invests in common stocks of U.S. companies that the portfolio managers believe have favorable growth prospects. The Fund emphasizes
stocks of small-capitalization (or “small-cap”) companies.
The Fund considers a small-capitalization company to be one that
has a market capitalization, at the time of purchase, within the range of market capitalizations of the Russell 2000 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 common stock.
The
portfolio managers look for companies with high growth potential. This
approach includes fundamental analyses of a company’s financial statements and management structure and consideration of the company’s
operations and product development, as well as its position in its industry. The portfolio managers also evaluate research on particular
industries, market trends and general economic conditions.
The
portfolio managers currently seek companies with proven management
records that are able to handle rapid growth, companies with innovative products or services, and companies that have above average growth
profiles and have what the portfolio managers believe are sustainable growth rates. These criteria can vary.
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, natural or environmental disasters, widespread disease or other public health issues, war, military conflict, acts of terrorism
or adverse investor sentiment generally. 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.
1 Invesco
Discovery Fund
Investing
in Stocks Risk. The value of the Fund’s portfolio may be
affected by changes in the stock markets. Stock markets may experience significant short-term volatility and may fall 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.
Small-
and Mid-Capitalization Companies Risk. Investing in securities
of small- and mid-capitalization companies involves greater risk than customarily is associated with investing in larger, more established
companies. Stocks of small- and mid-capitalization companies tend to be more vulnerable to changing market conditions, may have little
or no operating history or track record of success, and may have more limited product lines and markets, less experienced management and
fewer financial resources than larger companies. These companies’ securities may be more volatile and less liquid than those of
more established companies. They may be more sensitive to changes in a company’s earnings expectations and may experience more abrupt
and erratic price movements. Smaller companies’ securities often trade in lower volumes and in many instances, are traded over-the-counter
or on a regional securities exchange, where the frequency and volume of trading is substantially less than is typical for securities of
larger companies traded on national securities exchanges. Therefore, the securities of smaller companies may be subject to wider price
fluctuations and it might be harder for the Fund to dispose of its holdings at an acceptable price when it wants to sell them. Since small-
and mid-cap companies typically reinvest a high proportion of their earnings in their business, they may not pay dividends for some time,
particularly if they are newer companies. It may take a substantial period of time to realize a gain on an investment in a small- or mid-cap
company, if any gain is realized at all.
Growth
Investing Risk. If a growth company’s earnings or stock price
fails to increase as anticipated, or if its business plans do not produce the expected results, the value of its securities may decline
sharply. Growth companies may be newer or smaller companies that may experience greater stock price fluctuations and risks of loss than
larger, more established companies. Newer growth companies tend to retain a large part of their earnings for research, development or
investments in capital assets. Therefore, they may not pay any dividends for some time. Growth investing has gone in and out of favor
during past market cycles and is likely to continue to do so. During periods when growth investing is out of favor or when markets are
unstable, it may be more difficult to sell growth company securities at an acceptable price. Growth stocks may also be more volatile than
other securities because of investor speculation.
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. 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.
Management
Risk. The Fund is actively managed and depends heavily on the Adviser’s
judgment about markets, interest rates or the
attractiveness,
relative values, liquidity, or potential appreciation of particular investments made for the Fund’s portfolio. The Fund could experience
losses if these judgments prove to be incorrect. Additionally, legislative, regulatory, or tax developments may adversely affect management
of the Fund and, therefore, the ability of the Fund to achieve its investment objective.
The
returns shown for periods ending on or prior to May 24, 2019 are those
of the Class A, Class C, Class R, Class Y and Class I shares of the predecessor fund. Class A, Class C, Class R, Class Y and Class I shares
of the predecessor fund were reorganized into Class A, Class C, Class R, Class Y and Class R6 shares, respectively, of the Fund after
the close of business on May 24, 2019. Class A, Class C, Class R, Class Y and Class R6 shares’ returns of the Fund will be different
from the returns of the predecessor fund as they have different expenses. Performance for Class A shares has been restated to reflect
the Fund’s applicable sales charge.
Fund
performance reflects any applicable fee waivers and expense reimbursements.
Performance returns would be lower without applicable fee waivers and expense reimbursements.
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
|
|
|
|
-
|
|
|
|
|
|
|
|
-
|
2 Invesco
Discovery Fund
Average Annual Total Returns (for the periods ended December 31, 2021)
|
|
Inception
Date
|
1
Year
|
5
Years
|
10
Years
|
Since
Inception
|
|
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
R51 |
|
|
|
|
—
|
|
| |||||
|
Class
R6 |
|
|
|
—
|
|
|
| |||||
|
Russell
2000®
Growth Index no
deduction for fees, expenses or
taxes) |
|
|
|
|
—
|
|
| |||||
|
Russell
2000®
Index (reflects no
deduction
for fees, expenses or
taxes)
|
|
|
|
|
—
|
|
| |||||
|
S&P
500®
Index (reflects no
deduction
for fees, expenses or
taxes)
|
|
|
|
|
—
|
|
| |||||
1
Management
of the Fund
Investment
Adviser: Invesco Advisers, Inc.
|
Portfolio
Managers |
Title
|
Length
of Service on the Fund |
|
Ronald
J. Zibelli, Jr., CFA |
Portfolio
Manager (lead) |
2019
(predecessor fund 2006) |
|
| ||
|
Ash
Shah, CFA |
Portfolio
Manager |
2019
(predecessor fund 2014) |
|
| ||
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 salesperson or financial adviser or visit your financial intermediary’s website for more information.
Investment Objective(s), Strategies, Risks and Portfolio Holdings
Objective(s)
and Strategies
The
Fund’s investment objective is to seek capital appreciation. The Fund’s investment objective may be changed by the Board of
Trustees (the Board) without shareholder approval.
The Fund mainly invests in common stocks of U.S. companies that
the portfolio managers believe have favorable growth prospects. The Fund emphasizes stocks of small-capitalization (or “small-cap”)
companies. The
Fund considers a small-capitalization company to be one that has a market capitalization, at the time of purchase, within the range of
market capitalizations of the Russell 2000 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 common stock.
The
portfolio managers look for companies with high growth potential. This
approach includes fundamental analyses of a company’s financial statements and management structure and consideration of the company’s
operations and product development, as well as its position in its industry. The portfolio managers also evaluate research on particular
industries, market trends and general economic conditions.
The
portfolio managers currently seek companies with proven management
records that are able to handle rapid growth, companies with innovative products or services, and companies that have above average growth
profiles and have what the portfolio managers believe are sustainable growth rates. These criteria can vary.
In
anticipation of or in response to market, economic, political, or other conditions,
the Fund’s portfolio managers may temporarily use a different
3 Invesco
Discovery Fund
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 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.
◾
COVID-19.
The “COVID-19” strain of coronavirus has resulted in instances of market closures and dislocations, extreme volatility, liquidity
constraints and increased trading costs. Efforts to contain its spread have resulted in travel restrictions, disruptions of healthcare
systems, business operations (including business closures) and supply chains, layoffs, lower consumer demand and employee availability,
and defaults and credit downgrades, among other significant economic impacts that have disrupted global economic activity across many
industries. Such economic impacts may exacerbate other pre-existing political, social and economic risks
locally
or globally and cause general concern and uncertainty. The full economic impact and ongoing effects of COVID-19 (or other future epidemics
or pandemics) at the macro-level and on individual businesses are unpredictable and may result in significant and prolonged effects on
the Fund’s performance.
Investing
in Stocks Risk. Common stock represents an ownership interest in
a company. It ranks below preferred stock and debt securities in claims for dividends and in claims for assets of the issuer in a liquidation
or bankruptcy. Common stocks may be exchange-traded or over-the-counter securities. Over-the-counter securities may be less liquid than
exchange-traded securities.
The
value of the Fund’s portfolio may be affected by changes in the stock
markets. Stocks and other equity securities fluctuate in price in response to changes to equity markets in general. Stock markets may
experience significant short-term volatility and may fall or rise sharply at times. Adverse events in any part of the equity or fixed-income
markets may have unexpected negative effects on other market segments. Different stock markets may behave differently from each other
and U.S. stock markets may move in the opposite direction from one or more foreign stock markets.
The
prices of individual stocks generally do not all move in the same direction
at the same time. However, individual stock prices tend to go up and down more dramatically than those of certain other types of investments,
such as bonds. A variety of factors can negatively affect the price of a particular company’s stock. These factors may include,
but are not limited to: poor earnings reports, a loss of customers, litigation against the company, general unfavorable performance of
the company’s sector or industry, or changes in government regulations affecting the company or its industry. To the extent that
securities of a particular type are emphasized (for example foreign stocks, stocks of small- or mid-cap companies, growth or value stocks,
or stocks of companies in a particular industry), their share values may fluctuate more in response to events affecting the market for
those types of securities.
Small-
and Mid-Capitalization Companies Risk. Investing in securities
of small- and mid-capitalization companies involves greater risk than customarily is associated with investing in larger, more established
companies. Stocks of small- and mid-capitalization companies tend to be more vulnerable to changing market conditions, may have little
or no operating history or track record of success, and may have more limited product lines and markets, less experienced management and
fewer financial resources than larger companies. These companies’ securities may be more volatile and less liquid than those of
more established companies. They may be more sensitive to changes in a company’s earnings expectations and may experience more abrupt
and erratic price movements. Smaller companies’ securities often trade in lower volumes and in many instances, are traded over-the-counter
or on a regional securities exchange, where the frequency and volume of trading is substantially less than is typical for securities of
larger companies traded on national securities exchanges. Therefore, the securities of smaller companies may be subject to wider price
fluctuations and it might be harder for the Fund to dispose of its holdings at an acceptable price when it wants to sell them. In addition,
investors might seek to trade Fund shares based on their knowledge or understanding of the value of smaller company securities (this is
sometimes referred to as “price arbitrage”), which could interfere with the efficient management of the Fund. Since small
and mid-cap companies typically reinvest a high proportion of their earnings in their business, they may not pay dividends for some time,
particularly if they are newer companies. It may take a substantial period of time to realize a gain on an investment in a small- or mid-cap
company, if any gain is realized at all. The relative sizes of companies may change over time as the securities market changes, and the
Fund is not required to sell the securities of companies whose market capitalizations have grown or decreased due to market fluctuations.
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
4 Invesco
Discovery Fund
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. 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.
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
Advisers, Inc. serves as the Fund’s investment adviser. The Adviser manages the investment operations of the Fund as well as other
investment portfolios that encompass a broad range of investment objectives, and has agreed to perform or arrange for the performance
of the Fund’s day-to-day management. The Adviser is located at 1555 Peachtree Street, N.E., Atlanta, Georgia 30309. The Adviser,
as successor in interest to multiple investment advisers, has been an investment adviser since 1976.
Sub-Advisers.
Invesco has entered into one or more Sub-Advisory Agreements with certain affiliates to serve as sub-advisers to the Fund (the Sub-Advisers).
Invesco may appoint the Sub-Advisers from time to time to provide discretionary investment management services, investment advice,
and/or
order execution services to the Fund. The Sub-Advisers and the Sub-Advisory Agreements are described in the SAI.
Potential
New Sub-Advisers (Exemptive Order Structure). The SEC has also
granted exemptive relief that permits the Adviser, subject to certain conditions, to enter into new sub-advisory agreements with affiliated
or unaffiliated sub-advisers on behalf of the Fund without shareholder approval. The exemptive relief also permits material amendments
to existing sub-advisory agreements with affiliated or unaffiliated sub-advisers (including the Sub-Advisory Agreements with the Sub-Advisers)
without shareholder approval. Under this structure, the Adviser has ultimate responsibility, subject to oversight of the Board, for overseeing
such sub-advisers and recommending to the Board their hiring, termination, or replacement. The structure does not permit investment advisory
fees paid by the Fund to be increased without shareholder approval, or change the Adviser's obligations under the investment advisory
agreement, including the Adviser's responsibility to monitor and oversee sub-advisory services furnished to the Fund.
Exclusion
of Adviser from Commodity Pool Operator Definition
With
respect to the Fund, the Adviser has claimed an exclusion from the definition of “commodity pool operator” (CPO) under the
Commodity Exchange Act (CEA) and the rules of the Commodity Futures Trading Commission (CFTC) and, therefore, is not subject to CFTC registration
or regulation as a CPO. In addition, the Adviser is relying upon a related exclusion from the definition of “commodity trading advisor”
(CTA) under the CEA and the rules of the CFTC with respect to the Fund.
The
terms of the CPO exclusion require the Fund, among other things, to
adhere to certain limits on its investments in “commodity interests.” Commodity interests include commodity futures, commodity
options and swaps, which in turn include non-deliverable forwards. The Fund is permitted to invest in these instruments as further described
in the Fund’s SAI. However, the Fund is not intended as a vehicle for trading in the commodity futures, commodity options or swaps
markets. The CFTC has neither reviewed nor approved the Adviser’s reliance on these exclusions, or the Fund, its investment strategies
or this prospectus.
Adviser
Compensation
During
the fiscal year ended August 31, 2022, the Adviser received compensation of 0.59% of the Fund's average daily net assets, after fee waiver
and/or expense reimbursement, if any. The advisory fee payable by the Fund shall be reduced by any amounts paid by the Fund under the
administrative services agreement with the Adviser.
A
discussion regarding the basis for the Board’s approval of the investment
advisory agreement and investment sub-advisory agreements of the Fund is available in the Fund’s most recent annual or semi-annual
report to shareholders.
Portfolio
Managers
The
following individuals are jointly and primarily responsible for the day-to-day management of the Fund’s portfolio:
◾
Ronald
J. Zibelli, Jr., CFA (lead manager), Portfolio Manager, who has been responsible for the Fund since 2019 and has been associated with
Invesco and/or its affiliates since 2019. Prior to the commencement of the Fund’s operations, Mr. Zibelli managed the predecessor
fund since 2006 and was associated with OppenheimerFunds, a global asset management firm, since 2006.
◾
Ash
Shah, CFA, Portfolio Manager, who has been responsible for the Fund since 2019 and has been associated with Invesco and/or its affiliates
since 2019. Prior to the commencement of the Fund’s operations, Mr. Shah managed the predecessor fund since 2014 and was associated
with OppenheimerFunds, a global asset management firm, since 2006.
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
5 Invesco
Discovery Fund
and
sales of individual securities, portfolio construction techniques, portfolio risk assessment, and the management of daily cash flows in
accordance with portfolio holdings. The degree to which a lead or co-lead manager may perform these functions, and the nature of these
functions, may change from time to time.
More
information on the portfolio managers may be found at www.invesco.com/us.
The website is not part of this prospectus.
The
Fund's SAI provides additional information about the portfolio managers'
investments in the Fund, a description of the compensation structure and information regarding other accounts managed.
Other Information
Sales
Charges
Purchases
of Class A shares of the Fund are subject to the maximum 5.50% initial sales charge as listed under the heading “Category I Initial
Sales Charges” in the “Shareholder Account Information—Initial Sales Charges (Class A Shares Only)” section of
the prospectus. Purchases of Class C shares are subject to a contingent deferred sales charge (CDSC) if you sell Class C shares within
one year of purchase; however, the CDSC shall not apply to the purchases of Class C shares where the selling broker-dealer was not paid
a commission at the time of purchase. For more information on CDSCs, see the “Shareholder Account Information—Contingent Deferred
Sales Charges (CDSCs)” section of this prospectus.
Dividends
and Distributions
The
Fund expects, based on its investment objective and strategies, that its distributions, if any, will consist of ordinary income, capital
gains, or some combination of both.
Dividends
The
Fund generally declares and pays dividends from net investment income, if any, annually.
Capital
Gains Distributions
The
Fund generally distributes long-term and short-term capital gains (net of any available capital loss carryovers), if any, at least annually.
Capital gains distributions may vary considerably from year to year as a result of the Fund's normal investment activities and cash flows.
During a time of economic volatility, the Fund may experience capital losses and unrealized depreciation in value of investments,
the effect of which may be to reduce or eliminate capital gains distributions for a period of time. Even though the Fund may experience
a current year loss, it may nonetheless distribute prior year capital gains.
Limited
Fund Offering
The
Fund is closed to new investors. Investors should note that the Fund reserves the right to refuse any order that might disrupt the efficient
management of the Fund. Investors who were invested in the Fund on May 24, 2019, may continue to make additional purchases in their accounts.
Any Employer Sponsored Retirement and Benefit Plan or its affiliated plans may continue to make additional purchases of Fund shares and
may add new accounts at the plan level that may purchase Fund shares if the Employer Sponsored Retirement and Benefit Plan or its affiliated
plan had invested in the Fund as of May 24, 2019. New Employer Sponsored Retirement and Benefit Plans or its affiliated plans authorized
prior to May 24, 2019 had until December 31, 2019 to fund the account. Existing registered investment advisor (RIA) and bank trust firms
that have an investment allocation to the Fund in a fee-based, wrap or advisory account, can continue to add new clients, purchase shares,
and exchange into the Fund. The Fund will not be available to new RIA and bank trust firms. The Fund may also accept investments by 529
college savings plans managed by the Adviser during this limited offering. The Fund may resume sale of shares to new investors on a future
date if the Adviser determines it is appropriate. During this limited offering, the Fund reserves the right, in its
discretion,
to accept purchases: from certain investors which may include, among others, corporations, endowments, foundations and insurance companies;
from RIA or bank trust firms with eligible assets described above that launch a new offering platform or move assets from an existing
platform to a new platform, and in other limited circumstances after a determination by the Adviser that such action is not detrimental
to the Fund and its shareholders. The Fund reserves the right to change this policy at any time.
6 Invesco
Discovery Fund
Financial Highlights
The
financial highlights information presented for the Fund includes the financial history of the predecessor fund, which was reorganized
into the Fund after the close of business on May 24, 2019. The financial highlights show the Fund’s and predecessor fund’s
financial history for the past five fiscal years or, if shorter, the applicable period of operations since the inception of the Fund or
predecessor fund or class of Fund or predecessor fund shares. The financial highlights table is intended to help you understand the Fund’s
and the predecessor fund’s financial performance. Certain information reflects financial results for a single Fund share.
The
total returns in the table represent the rate that an investor would have
earned (or lost) on an investment in the Fund or predecessor fund (assuming reinvestment of all dividends and distributions). The information
for the fiscal years ended after May 24, 2019 has been audited by PricewaterhouseCoopers LLP, an independent registered public accounting
firm, whose report, along with the Fund’s financial statements, is included in the Fund’s annual report, which is available
upon request. The information for fiscal years ended prior to May 24, 2019 has been audited by the predecessor fund’s auditor.
|
|
Net
asset
value,
beginning
of
period |
Net
investment
income
(loss)(a)
|
Net
gains
(losses)
on
securities
(both
realized
and
unrealized)
|
Total
from
investment
operations
|
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(c)
|
Ratio
of net
investment
income
(loss)
to
average
net
assets |
Portfolio
turnover
(d)
|
|
Class
A | ||||||||||||
|
Year
ended 08/31/22 |
$124.56
|
$(0.49)
|
$(27.15)
|
$(27.64)
|
$(21.35)
|
$75.57
|
(26.13)%(e)
|
$1,425,847
|
1.02%(e)
|
1.02%(e)
|
(0.54)%(e)
|
84%
|
|
Year
ended 08/31/21 |
101.13
|
(0.85)
|
36.59
|
35.74
|
(12.31)
|
124.56
|
37.24(e)
|
2,090,984
|
1.01(e)
|
1.01(e)
|
(0.74)(e)
|
61
|
|
Year
ended 08/31/20 |
84.02
|
(0.59)
|
22.93
|
22.34
|
(5.23)
|
101.13
|
28.07(e)
|
1,656,602
|
1.05(e)
|
1.05(e)
|
(0.71)(e)
|
76
|
|
Eleven
months ended 08/31/19 |
94.78
|
(0.50)
|
1.69
|
1.19
|
(11.95)
|
84.02
|
4.57
|
1,432,064
|
1.08(f)
|
1.08(f)
|
(0.70)(f)
|
83
|
|
Year
ended 09/30/18 |
81.76
|
(0.65)
|
23.33
|
22.68
|
(9.66)
|
94.78
|
30.77
|
1,442,859
|
1.07
|
1.07
|
(0.76)
|
91
|
|
Year
ended 09/30/17 |
71.38
|
(0.53)
|
13.84
|
13.31
|
(2.93)
|
81.76
|
19.44(g)
|
1,208,643
|
1.10
|
1.11
|
(0.72)
|
107
|
|
| ||||||||||||
|
Class
C | ||||||||||||
|
Year
ended 08/31/22 |
73.13
|
(0.63)
|
(13.89)
|
(14.52)
|
(21.35)
|
37.26
|
(26.68)
|
33,135
|
1.78
|
1.78
|
(1.30)
|
84
|
|
Year
ended 08/31/21 |
64.09
|
(1.03)
|
22.38
|
21.35
|
(12.31)
|
73.13
|
36.20
|
56,388
|
1.78
|
1.78
|
(1.51)
|
61
|
|
Year
ended 08/31/20 |
55.50
|
(0.79)
|
14.61
|
13.82
|
(5.23)
|
64.09
|
27.08
|
74,315
|
1.82
|
1.82
|
(1.48)
|
76
|
|
Eleven
months ended 08/31/19 |
67.90
|
(0.70)
|
0.25
|
(0.45)
|
(11.95)
|
55.50
|
3.84
|
78,075
|
1.84(f)
|
1.84(f)
|
(1.47)(f)
|
83
|
|
Year
ended 09/30/18 |
61.61
|
(0.94)
|
16.89
|
15.95
|
(9.66)
|
67.90
|
29.78
|
159,027
|
1.83
|
1.83
|
(1.52)
|
91
|
|
Year
ended 09/30/17 |
54.91
|
(0.83)
|
10.46
|
9.63
|
(2.93)
|
61.61
|
18.52(g)
|
139,622
|
1.86
|
1.86
|
(1.48)
|
107
|
|
| ||||||||||||
|
Class
R | ||||||||||||
|
Year
ended 08/31/22 |
110.57
|
(0.64)
|
(23.52)
|
(24.16)
|
(21.35)
|
65.06
|
(26.31)
|
41,445
|
1.28
|
1.28
|
(0.80)
|
84
|
|
Year
ended 08/31/21 |
91.16
|
(1.03)
|
32.75
|
31.72
|
(12.31)
|
110.57
|
36.89
|
64,908
|
1.28
|
1.28
|
(1.01)
|
61
|
|
Year
ended 08/31/20 |
76.43
|
(0.74)
|
20.70
|
19.96
|
(5.23)
|
91.16
|
27.72
|
53,981
|
1.32
|
1.32
|
(0.98)
|
76
|
|
Eleven
months ended 08/31/19 |
87.70
|
(0.62)
|
1.30
|
0.68
|
(11.95)
|
76.43
|
4.32
|
53,737
|
1.33(f)
|
1.33(f)
|
(0.96)(f)
|
83
|
|
Year
ended 09/30/18 |
76.52
|
(0.81)
|
21.65
|
20.84
|
(9.66)
|
87.70
|
30.43
|
54,734
|
1.33
|
1.33
|
(1.02)
|
91
|
|
Year
ended 09/30/17 |
67.17
|
(0.68)
|
12.96
|
12.28
|
(2.93)
|
76.52
|
19.11(g)
|
48,470
|
1.37
|
1.37
|
(0.98)
|
107
|
|
| ||||||||||||
|
Class
Y | ||||||||||||
|
Year
ended 08/31/22 |
147.99
|
(0.33)
|
(33.19)
|
(33.52)
|
(21.35)
|
93.12
|
(25.94)
|
1,532,285
|
0.78
|
0.78
|
(0.30)
|
84
|
|
Year
ended 08/31/21 |
117.95
|
(0.69)
|
43.04
|
42.35
|
(12.31)
|
147.99
|
37.56
|
1,769,717
|
0.78
|
0.78
|
(0.51)
|
61
|
|
Year
ended 08/31/20 |
96.93
|
(0.46)
|
26.71
|
26.25
|
(5.23)
|
117.95
|
28.37
|
1,316,860
|
0.82
|
0.82
|
(0.48)
|
76
|
|
Eleven
months ended 08/31/19 |
106.92
|
(0.38)
|
2.34
|
1.96
|
(11.95)
|
96.93
|
4.80
|
882,530
|
0.84(f)
|
0.84(f)
|
(0.47)(f)
|
83
|
|
Year
ended 09/30/18 |
90.84
|
(0.51)
|
26.25
|
25.74
|
(9.66)
|
106.92
|
31.07
|
791,784
|
0.84
|
0.84
|
(0.53)
|
91
|
|
Year
ended 09/30/17 |
78.81
|
(0.39)
|
15.35
|
14.96
|
(2.93)
|
90.84
|
19.70(g)
|
518,827
|
0.87
|
0.87
|
(0.48)
|
107
|
|
| ||||||||||||
|
Class
R5 | ||||||||||||
|
Year
ended 08/31/22 |
125.62
|
(0.28)
|
(27.51)
|
(27.79)
|
(21.35)
|
76.48
|
(26.01)
|
1,139
|
0.71
|
0.71
|
(0.23)
|
84
|
|
Year
ended 08/31/21 |
101.62
|
(0.52)
|
36.83
|
36.31
|
(12.31)
|
125.62
|
37.67
|
15,580
|
0.72
|
0.72
|
(0.45)
|
61
|
|
Year
ended 08/31/20 |
84.11
|
(0.27)
|
23.01
|
22.74
|
(5.23)
|
101.62
|
28.54
|
15,413
|
0.68
|
0.68
|
(0.34)
|
76
|
|
Period
ended 08/31/19(h)
|
77.56
|
(0.08)
|
6.63
|
6.55
|
—
|
84.11
|
8.44
|
11
|
0.71(f)
|
0.71(f)
|
(0.34)(f)
|
83
|
|
| ||||||||||||
|
Class
R6 | ||||||||||||
|
Year
ended 08/31/22 |
152.02
|
(0.19)
|
(34.25)
|
(34.44)
|
(21.35)
|
96.23
|
(25.85)
|
578,210
|
0.65
|
0.65
|
(0.17)
|
84
|
|
Year
ended 08/31/21 |
120.70
|
(0.50)
|
44.13
|
43.63
|
(12.31)
|
152.02
|
37.78
|
553,738
|
0.63
|
0.63
|
(0.36)
|
61
|
|
Year
ended 08/31/20 |
98.92
|
(0.30)
|
27.31
|
27.01
|
(5.23)
|
120.70
|
28.58
|
329,915
|
0.65
|
0.65
|
(0.31)
|
76
|
|
Eleven
months ended 08/31/19 |
108.66
|
(0.25)
|
2.46
|
2.21
|
(11.95)
|
98.92
|
4.96
|
269,645
|
0.67(f)
|
0.67(f)
|
(0.30)(f)
|
83
|
|
Year
ended 09/30/18 |
92.03
|
(0.35)
|
26.64
|
26.29
|
(9.66)
|
108.66
|
31.29
|
254,704
|
0.67
|
0.67
|
(0.36)
|
91
|
|
Year
ended 09/30/17 |
79.66
|
(0.25)
|
15.55
|
15.30
|
(2.93)
|
92.03
|
19.92(g)
|
153,563
|
0.68
|
0.68
|
(0.30)
|
107
|
|
| ||||||||||||
|
(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)
|
Does
not include estimated acquired fund fees from underlying funds of 0.00% for the eleven months ended August 31, 2019 and the years ended
September 30, 2019, 2018 and 2017,
respectively.
|
|
(d)
|
Portfolio
turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
|
(e)
|
The
total return, ratio of expenses to average net assets and ratio of net investment income to average net assets reflect actual 12b-1 fees
of 0.24% for the year ended August 31, 2022 and
0.23%
for the years ended August 31, 2021 and 2020. |
7 Invesco
Discovery Fund
|
(f)
|
Annualized.
|
|
(g)
|
The
return does not include adjustments in accordance with generally accepted accounting principles required at the period end for financial
reporting purposes. |
|
(h)
|
Commencement
date after the close of business on May 24, 2019. |
8 Invesco
Discovery 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 all of the Invesco Funds and their share classes that have different fees and expenses.
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 |
|
|
▪ 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) |
A-1 The
Invesco Funds
MCF—12/22
|
Share
Classes |
|
|
|
|
|
Class
A |
Class
C |
Class
R |
Class
Y |
Class
R5 and R6 |
|
|
▪ 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 International Core Equity 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 a specific
Fund may make additional purchases into Class AX and CX, respectively, of such specific Fund. All references in this “Shareholder
Account Information” section of this prospectus to Class A, C or R shares of the Invesco Funds shall include Class AX
(excluding Invesco Government Money Market Fund), or CX shares, respectively, of the Invesco Funds, unless otherwise noted. All references
in this “Shareholder Account Information” section of this prospectus to Invesco Cash Reserve Shares of Invesco Government
Money Market Fund shall include Class AX shares of Invesco Government Money Market Fund, unless otherwise noted.
Class P
Shares
In
addition to the other share classes discussed herein, the Invesco Summit Fund offers Class P shares, which were historically sold
only through the AIM Summit Investors Plans I and II (each a Plan and, collectively, the Summit Plans). Class P shares are sold with
no initial sales charge and have a 12b-1 fee of 0.10%. However, Class P shares are not sold to members of the general public. Only
shareholders who had accounts in the Summit Plans at the close of business on December 8, 2006 may purchase Class P shares and
only until the total of their combined investments in the Summit Plans and in Class P shares directly equals the face amount of their
former Plan under the 30 year extended investment option. The face amount of a Plan is the combined total of all scheduled monthly
investments under the Plan. For a Plan with a scheduled monthly investment of $100.00, the face amount would have been $36,000.00 under
the 30 year extended investment option.
Class R
Shares
Class R
shares are intended for 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 (except for the Invesco Master Loan Fund) are available for use by Employer Sponsored Retirement and Benefit
Plans, held either at the plan level or through omnibus accounts, that generally process no more than one net redemption and one net purchase
transaction each day.
Class
R5 and R6 shares of the Funds are also available to institutional investors.
Institutional investors are: banks, trust companies, collective trust funds, entities acting for the account of a public entity (e.g.,
Taft-Hartley funds, states, cities or government agencies), funds of funds or other pooled investment vehicles, 529 college savings plans,
financial intermediaries and corporations investing for their own accounts, endowments and foundations. For information regarding investment
minimums for Class R5 and R6 shares, please see “Minimum Investments” below.
Class
R6 shares of the Funds are also available through an intermediary that
has agreed with Invesco Distributors, Inc. to make such shares
A-2 The
Invesco Funds
available
for use in retail omnibus accounts that generally process no more than one net redemption and one net purchase transaction each day.
The
Invesco Master Loan Fund is only available for purchase by other Funds
in the Invesco fund family and other Invesco pooled investment vehicles.
Shareholders
eligible to purchase Class R6 Shares must meet the requirements
specified by their intermediary. Not all intermediaries offer Class R6 Shares to their customers.
Class S
Shares
Class S
shares are limited to investors who purchase shares with the proceeds received from a systematic contractual investment plan redemption
within the 12 months prior to purchasing Class S shares, and who purchase through an approved financial intermediary that has
an agreement with the distributor to sell Class S shares. Class S shares are not otherwise sold to members of the general public.
An investor purchasing Class S shares will not pay an initial sales charge. The investor will no longer be eligible to purchase additional
Class S shares at that point where the value of the contributions to the prior systematic contractual investment plan combined with
the subsequent Class S share contributions equals the face amount of what would have been the investor’s systematic contractual
investment plan under the 30-year investment option. The face amount of a systematic contractual investment plan is the combined total
of all scheduled monthly investments under that plan. For a plan with a scheduled monthly investment of $100.00, the face amount would
have been $36,000.00 under the 30-year extended investment option.
Class Y
Shares
Class
Y shares are available to (i) investors who purchase through an account that is charged an asset-based fee or commission by a financial
intermediary, including through brokerage platforms, where a broker is acting as the investor’s agent, that may require the payment
by the investor of a commission and/or other form of compensation to that broker, (ii) endowments, foundations, or Employer Sponsored
Retirement and Benefit Plans (with the exception of “Solo 401(k)” Plans and 403(b) custodial accounts held directly at Invesco),
(iii) banks or bank trust departments acting on their own behalf or as trustee or manager for trust accounts, or (iv) any current, former
or retired trustee, director, officer or employee (or immediate family members of a current, former or retired trustee, director, officer
or employee) of any Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
Subject
to any conditions or limitations imposed on the servicing of Class
Y shares by your financial adviser, if you received Class Y shares as a result of a merger or reorganization of a predecessor fund into
any of the Funds, you will be permitted to make additional Class Y share purchases. In addition, you will be permitted to make additional
Class Y shares purchases if you owned Class Y shares in a “Solo 401(k)” Plan or 403(b) custodial account held directly at
Invesco if you held such shares in your account on or prior to May 24, 2019.
Investor
Class Shares
Investor
Class shares are sold with no initial sales charge and have a maximum 12b-1 fee of 0.25%. Only the following persons may purchase Investor
Class shares:
◾
Investors
who established accounts prior to April 1, 2002, in Investor Class shares with Invesco Distributors, Inc. (Invesco Distributors) who have
continuously maintained an account in Investor Class shares (this includes anyone listed in the registration of an account, such as a
joint owner, trustee or custodian, and immediate family members of such persons) without a designated intermediary. These investors are
referred to as “Investor Class grandfathered investors.”
◾
Customers
of a financial intermediary that has had an agreement with the Funds’ distributor or any Funds that offered Investor Class shares
prior to April 1, 2002, that has continuously maintained such agreement. These intermediaries are referred to as “Investor
Class grandfathered intermediaries.”
◾
Any
current, former or retired trustee, director, officer or employee (or immediate family member of a current, former or retired trustee,
director, officer or employee) of any Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
For
additional shareholder eligibility requirements with respect to Invesco
Premier Portfolio, please see “Shareholder Account Information – Purchasing Shares and Shareholder Eligibility – Invesco
Premier Portfolio.”
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.
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 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
A-4 The
Invesco Funds
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.
Merrill
Lynch
Shareholders
purchasing Fund shares through a Merrill
Lynch platform
or account will be eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at Merrill Lynch
◾
Employer-sponsored
retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to fund those plans,
provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the plan;
◾
Shares
purchased by a 529 Plan (does not include 529 Plan unit or 529-specific share classes or equivalents);
◾
Shares
purchased through a Merrill Lynch affiliated investment advisory program;
◾
Shares
exchanged due to the holdings moving from a Merrill Lynch affiliated investment advisory program to a Merrill Lynch brokerage (non-advisory)
account pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers;
◾
Shares
purchased by third party investment advisors on behalf of their advisory clients through Merrill Lynch’s platform;
◾
Shares
of funds purchased through the Merrill Edge Self-Directed platform (if applicable);
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not
any other fund within the fund family);
◾
Shares
exchanged from Class C (i.e.
level-load) shares of the same fund pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers;
◾
Employees
and registered representatives of Merrill Lynch or its affiliates and their family members;
◾
Directors
or Trustees of the Fund, and employees of the Fund’s investment adviser or any of its affiliates, as described in this prospectus;
and
◾
Eligible
shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days
following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to
a front-end or deferred sales load (known as Rights of Reinstatement). Automated transactions (i.e. systematic purchases and withdrawals)
and purchases made after shares are automatically sold to pay Merrill Lynch’s account maintenance fees are not eligible for reinstatement.
◾
CDSC
Waivers on A and C Shares available at Merrill Lynch
◾
Death
or disability of the shareholder;
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund’s prospectus;
◾
Return
of excess contributions from an IRA Account;
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts pursuant to the Internal Revenue Code;
◾
Shares
sold to pay Merrill Lynch fees but only if the transaction is initiated by Merrill Lynch;
◾
Shares
acquired through a right of reinstatement;
◾
Shares
held in retirement brokerage accounts, that are converted to a lower cost share class due to transfer to a fee based account or platform
(applicable to A and C shares only); and
◾
Shares
received through an exchange due to the holdings moving from a Merrill Lynch affiliated investment advisory program to a Merrill Lynch
brokerage (non-advisory) account pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers.
◾
Front-end
load Discounts Available at Merrill Lynch: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this prospectus;
◾
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts as described in the Fund’s prospectus will be automatically
calculated based on the aggregated holding of fund family assets held by accounts (including 529 program holdings, where applicable) within
the purchaser’s household at Merrill Lynch. Eligible fund family assets not held at Merrill Lynch may be included in the ROA calculation
only if the shareholder notifies his or her financial advisor about such assets; and
◾
Letters
of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Merrill Lynch, over
a 13-month period of time (if applicable).
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).
A-5 The
Invesco Funds
Morgan
Stanley Wealth Management
Shareholders
purchasing Fund shares through a Morgan Stanley
Wealth Management transactional brokerage account will be eligible
only for the following front-end sales charge waivers with respect to Class A shares, which may differ from and may be more limited than
those disclosed elsewhere in this Fund’s Prospectus or SAI.
◾
Front-end
Sales Charge Waivers on Class A Shares available at Morgan Stanley Wealth Management
◾
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and
defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs, SAR-SEPs
or Keogh plans;
◾
Morgan
Stanley employee and employee-related accounts according to Morgan Stanley’s account linking rules;
◾
Shares
purchased through reinvestment of dividends and capital gains distributions when purchasing shares of the same fund;
◾
Shares
purchased through a Morgan Stanley self-directed brokerage account;
◾
Class
C (i.e., level-load) shares that are no longer subject to a contingent deferred sales charge and are converted to Class A shares of the
same fund pursuant to Morgan Stanley Wealth Management’s share class conversion program; and
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (i) the repurchase occurs within 90 days following the
redemption, (ii) the redemption and purchase occur in the same account, and (iii) redeemed shares were subject to a front-end or deferred
sales charge.
Raymond
James Financial Services, Inc.
Shareholders
purchasing Fund shares through a Raymond
James Financial Services, Inc., Raymond James affiliates and each
entity’s affiliates (Raymond James) platform or account, or through an introducing broker-dealer or independent registered investment
adviser for which Raymond James provides trade execution, clearance, and/or custody services, will be eligible only for the following
load waivers (front-end sales charge waivers and contingent deferred, or back-end, sales charge waivers) and discounts, which may differ
from those disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
sales load waivers on Class A shares available at Raymond James
◾
Shares
purchased in an investment advisory program.
◾
Shares
purchased within the same fund family through a systematic reinvestment of capital gains distributions and dividend distributions.
◾
Employees
and registered representatives of Raymond James or its affiliates and their family members as designated by Raymond James.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (known as Rights of Reinstatement).
◾
A
shareholder in the Fund’s Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate
share class) of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures
of Raymond James.
◾
CDSC
Waivers on Classes A and C shares available at Raymond James
◾
Death
or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the fund’s prospectus.
◾
Return
of excess contributions from an IRA Account.
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based
on applicable IRS regulations as described in the fund’s prospectus.
◾
Shares
sold to pay Raymond James fees but only if the transaction is initiated by Raymond James.
◾
Shares
acquired through a right of reinstatement.
◾
Front-end
load discounts available at Raymond James: breakpoints, rights of accumulation, and/or letters of intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of
fund family assets held by accounts within the purchaser’s household at Raymond James. Eligible fund family assets not held at Raymond
James may be included in the calculation of rights of accumulation only if the shareholder notifies his or her financial advisor about
such assets.
◾
Letters
of intent which allow for breakpoint discounts based on anticipated purchases within a fund family, over a 13-month time period. Eligible
fund family assets not held at Raymond James may be included in the calculation of letters of intent only if the shareholder notifies
his or her financial advisor about such assets.
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.
A-6 The
Invesco Funds
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.
◾
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.
Oppenheimer
& Co. Inc. (“OPCO”)
Shareholders
purchasing Fund shares through an OPCO
platform or account are eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund's prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at OPCO
◾
Employer-sponsored
retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to
fund
those plans, provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the
plan
◾
Shares
purchased by or through a 529 Plan
◾
Shares
purchased through an OPCO affiliated investment advisory program
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not
any other fund within the fund family)
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (known as Rights of Reinstatement).
◾
A
shareholder in the Fund's Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate share
class) of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures of OPCO
◾
Employees
and registered representatives of OPCO or its affiliates and their family members
◾
Directors
or Trustees of the Fund, and employees of the Fund's investment adviser or any of its affiliates, as described in this prospectus
◾
CDSC
Waivers on A and C Shares available at OPCO
◾
Death
or disability of the shareholder
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund's prospectus
◾
Return
of excess contributions from an IRA Account
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based
on applicable IRS regulations as described in the prospectus
◾
Shares
sold to pay OPCO fees but only if the transaction is initiated by OPCO Shares acquired through a right of reinstatement
◾
Front-end
load Discounts Available at OPCO: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding
of fund family assets held by accounts within the purchaser's household at OPCO. Eligible fund family assets not held at OPCO may be included
in the ROA calculation only if the shareholder notifies his or her financial advisor about such assets.
Robert
W. Baird & Co. Incorporated (“Baird”)
Shareholders
purchasing fund shares through a Baird
platform or account will only be eligible for the following sales charge waivers (front-end sales charge waivers and CDSC waivers) and
discounts, which may differ from those disclosed elsewhere in this prospectus or the SAI.
◾
Front-End
Sales Charge Waivers on Class A-shares Available at Baird
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund.
◾
Shares
purchased by employees and registered representatives of Baird or its affiliate and their family members as designated by Baird.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales charge (known as rights of reinstatement).
◾
A
shareholder in the Fund’s Class C Shares will have their shares converted at net asset value to Class A shares of the fund if the
shares are no longer subject to CDSC and the conversion is in line with the policies and procedures of Baird.
◾
Employer-sponsored
retirement plans or charitable accounts in a transactional brokerage account at Baird, including 401(k) plans, 457 plans, employer-sponsored
403(b) plans, profit sharing and money
A-7 The
Invesco Funds
purchase
pension plans and defined benefit plans. For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs,
Simple IRAs or SAR-SEPs.
◾
CDSC
Waivers on Classes A and C shares Available at Baird
◾
Shares
sold due to death or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund’s Prospectus.
◾
Return
of excess contributions from an IRA Account.
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching age 72 as described in
the Fund’s prospectus.
◾
Shares
sold to pay Baird fees but only if the transaction is initiated by Baird.
◾
Shares
acquired through a right of reinstatement.
◾
Front-End
Sales Charge Discounts Available at Baird: Breakpoints, Rights of Accumulation and/or letters of intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of
fund family assets held by accounts within the purchaser’s household at Baird. Eligible fund family assets not held at Baird may
be included in the rights of accumulation calculation only if the shareholder notifies his or her financial advisor about such assets.
◾
Letters
of Intent (LOI) allow for breakpoint discounts based on anticipated purchases of within a fund family through Baird, over a 13-month period
of time.
Edward
D. Jones & Co., L.P. (“Edward Jones”)
Policies
Regarding Transactions Through Edward Jones
The
following information has been provided by Edward Jones:
The
following information supersedes prior information with respect to transactions
and positions held in fund shares through an Edward Jones system. Shareholders purchasing Fund shares through the Edward
Jones commission
and fee-based platforms will be eligible for the following load waivers (front- end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund's prospectus or statement of additional
information (“SAI”). 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 (including holdings of 529 Plans where Invesco serves as primary distributor), 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.
◾
Front-end
sales load waivers on Class A shares available at Edward Jones
◾
Associates
of Edward Jones and its affiliates and their family members who are 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: 1) the proceeds are
from the sale of shares within 60 days of the purchase, and 2) the sale and purchase are made in the same share class and the same account
or the purchase is made in an individual retirement account with proceeds from liquidations in a non-retirement account.
◾
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.
◾
CDSC
Waivers on Classes A and C shares available at Edward Jones
◾
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
sold 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 the qualified age based on applicable IRS regulations.
◾
Shares
sold 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 Minimum Balances, as described below.
◾
Front-end
load discounts available at Edward Jones: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoint
pricing, otherwise known as volume pricing, at dollar thresholds as described in the prospectus.
◾
Rights
of Accumulation (“ROA”) which entitles the shareholder to the applicable sales charge on a purchase of Class A shares will
be determined by taking into account all share classes (except certain money market funds and any assets held in group retirement plans)
of Invesco Funds (including holdings of 529 Plans where Invesco serves as primary distributor) 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).
◾
Letters
of Intent (“LOI”) allow shareholders to receive 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.
Other
Important Information Regarding Transactions Through Edward
Jones
Minimum
Purchase Amounts
•
Initial
purchase minimum: $250
•
Subsequent
purchase minimum: none
A-8 The
Invesco Funds
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.
Stifel,
Nicolaus & Company (“Stifel”)
Shareholders
purchasing Fund shares through a Stifel
platform or account will be eligible only for the following front-end sales charge waivers and discounts, which may differ from those
disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at Stifel: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this 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 Stifel. Eligible
fund family assets not held at Stifel may be included in the ROA calculation only if the shareholder notifies his or her financial advisor
about such assets; and
◾
Letters
of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Stifel, over a 13-month
period of time (if applicable).
◾
Shares
converted from Class C (i.e. level-load) shares of the same fund pursuant to Stifel policies relating to sales load discounts and waivers.
PFS
Investments Inc. (“PFSI”)
Policies
Regarding Transactions Through PFSI
The
following information supersedes all prior information with respect to transactions and positions held in fund shares purchased through
PFSI and held on the mutual fund platform of its affiliate, Primerica Shareholder Services (“PSS”). Clients of PFSI (also
referred to as “shareholders”) purchasing fund shares on the PSS platform are eligible only for the following share classes,
sales charge discounts (also referred to as “breakpoints”) and waivers, which can differ from share classes, discounts and
waivers described elsewhere in this prospectus or the related statement of additional information (“SAI”) or through another
broker-dealer. In all instances, it is the shareholder’s responsibility to inform PFSI at the time of a purchase of all holdings
of Invesco Funds on the PSS platform, or other facts qualifying the purchaser for discounts or waivers. PFSI may request reasonable documentation
of such facts, and condition the granting of any discount or waiver on the timely receipt of such documents. Shareholders should contact
PSS if they have questions regarding their eligibility for these discounts and waivers.
Share
Classes
◾
Class
A shares: in non-retirement accounts, individual retirement accounts (IRA), SEP IRAs, SIMPLE IRAs, Keogh Plans, and all other account
types unless expressly provided for below.
◾
Class
C shares: only in accounts with existing Class C share holdings.
Breakpoints
◾
Breakpoint
pricing at dollar thresholds as described in the prospectus of the fund you are purchasing.
Rights
of Accumulation (“ROA”)
◾
The
applicable sales charge on a purchase of Class A shares is determined by taking into account all share classes (except any assets held
in group retirement plans) of Invesco Funds held by the shareholder on the PSS Platform. The inclusion of eligible fund family assets
in the ROA calculation is dependent on the shareholder notifying PFSI of such assets at the time of calculation. Shares of money market
funds are
included
only if such shares were acquired in exchange for shares of another Invesco Fund purchased with a sales charge. No shares of Invesco Funds
held by the shareholder away from the PSS platform will be granted ROA with shares of any Invesco Fund purchased on the PSS platform.
◾
Any
SEP IRA plan, any SIMPLE IRA plan or any Payroll Deduction plan (“PDP”) on the PSS platform will be defaulted to plan-level
grouping for purposes of ROA, which allows each participating employee ROA with all other eligible shares held in plan accounts on the
PSS platform. At any time, a participating employee may elect to exercise a one-time option to change grouping for purposes of ROA to
shareholder- level grouping, which allows the plan account of the electing employee ROA with her other eligible holdings on the PSS platform,
but not with all other eligible participant holdings in the plan. Eligible shares held in plan accounts electing shareholder-level grouping
will not be available for purposes of ROA to plan accounts electing plan-level grouping.
◾
ROA
is determined by calculating the higher of cost minus redemptions or current market value (current shares x NAV).
Letter
of Intent (“LOI”)
◾
By
executing a LOI, shareholders can receive the sales charge and breakpoint discounts for purchases shareholders intend to make over a 13-month
period through PFSI, from the date PSS receives the LOI. The purchase price of the LOI is determined by calculating the higher of cost
or market value of qualifying holdings at LOI initiation in combination with the dollar amount the shareholder intends to invest over
a 13-month period to arrive at total investment for purposes of determining any breakpoint discount and the applicable front-end sales
charge. Each purchase the shareholder makes during that 13-month period will receive the sales charge and breakpoint discount that applies
to the projected total investment.
◾
Only
holdings of Invesco Funds on the PSS platform are eligible for inclusion in the LOI calculation and the shareholder must notify PFSI of
all eligible assets at the time of calculation.
◾
Purchases
made before the LOI is received by PSS are not adjusted under the LOI, and the LOI will not reduce any sales charge previously paid. Sales
charges will be automatically adjusted if the total purchases required by the LOI are not met.
◾
If
an employer maintaining a SEP IRA plan, SIMPLE IRA plan or non-IRA PDP on the PSS platform has elected to establish or change ROA for
the accounts associated with the plan to a plan-level grouping, LOIs will also be at the plan-level and may only be established by the
employer. LOIs are not available to PDP IRA plans on the PSS platform with plan-level grouping for purposes of ROA, but are available
to any participating employee that elects shareholder-level grouping for purposes of ROA.
Sales
Charge Waivers
Sales
charges are waived for the following shareholders and in the following
situations:
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment.
◾
Shares
purchased with the proceeds of redeemed shares of the same fund family so long as the following conditions are met: 1) the proceeds are
from the sale of shares within 90 days of the purchase, 2) the sale and purchase are made in the same share class and the same account
or the purchase is made in an individual retirement account with proceeds from liquidations in a non-retirement account, and 3) the redeemed
shares were subject to a front-end or deferred sales load, Automated transactions (i.e. systematic purchases and withdrawals), full or
partial transfers or rollovers of retirement accounts, and purchases made after shares are automatically sold to pay account maintenance
fees are not eligible for this sales charge waiver.
◾
Shares
exchanged into Class A shares from another share class so long as the exchange is into the same fund and was initiated at the discretion
of PFSI. PFSI is responsible for any remaining CDSC due to the fund company, if applicable. Any future purchases are subject to the applicable
sales charge as disclosed in the prospectus.
Policies
Regarding Fund Purchases Through PFSI That Are Not Held
on the PSS Platform
A-9 The
Invesco Funds
◾
Class
R shares
are available through PFSI only in 401(k) plans covering a business owner with no employees, commonly referred to as a one-participant
401(k) plan or solo 401(k).
UBS
Financial Services Inc. (“UBS”)
Pursuant
to an agreement with the Distributor, UBS may offer Class Y
shares
to its retail brokerage clients whose shares are held in omnibus
accounts at UBS, or its designee. For these clients, UBS may charge commissions or transaction fees with respect to brokerage transactions
in Class Y shares. The
minimum investment for Class Y shares is waived for transactions through such brokerage platforms at UBS. Please contact your UBS representative
for more information about these fees and other eligibility requirements.
Qualifying
for Reduced Sales Charges and Sales Charge Exceptions
The
following types of accounts qualify for reduced sales charges or sales charge exceptions under ROAs and LOIs:
1.
an
individual account owner;
2.
immediate
family of the individual account owner (which includes the individual’s spouse or domestic partner; the individual’s children,
step-children or grandchildren; the spouse or domestic partner of the individual’s children, step-children or grandchildren; the
individual’s parents and step-parents; the parents or step-parents of the individual’s spouse or domestic partner; the individual’s
grandparents; and the individual’s siblings);
3.
a
Retirement and Benefit Plan so long as the plan is established exclusively for the benefit of an individual account owner; and
4.
a
Coverdell Education Savings Account (Coverdell ESA), maintained pursuant to Section 530 of the Code (in either case, the account
must be established by an individual account owner or have an individual account owner named as the beneficiary thereof).
Alternatively,
an Employer Sponsored Retirement and Benefit Plan (but not including
plans utilizing the Invesco 403(b)(7) Custodial Account program, or the individual custodial accounts thereunder) or Employer Sponsored
IRA may be eligible to purchase shares pursuant to a ROA at the plan level, and receive a reduced applicable initial sales charge for
a new purchase based on the total value of the current purchase and the value of other shares owned by the plan’s participants if:
a)
the
employer or plan sponsor submits all contributions for all participating employees in a single contribution transmittal (the Invesco Funds
will not accept separate contributions submitted with respect to individual participants);
b)
each
transmittal is accompanied by checks or wire transfers; and
c)
if
the Invesco Funds are expected to carry separate accounts in the names of each of the plan participants, (i) the employer or plan
sponsor notifies Invesco Distributors or its designee in writing that the separate accounts of all plan participants should be linked,
and (ii) all new participant accounts are established by submitting an appropriate Account Application on behalf of each new participant
with the contribution transmittal.
Participant
accounts in a retirement plan that are eligible to purchase shares
pursuant to a ROA at the plan level may not also be considered eligible to do so for the benefit of an individual account owner.
In
all instances, it is the purchaser’s responsibility to notify Invesco Distributors
or its designee of any relationship or other facts qualifying the purchaser as eligible for reduced sales charges and/or sales charge
exceptions and to provide all necessary documentation of such facts in order to qualify for reduced sales charges or sales charge exceptions.
For additional information on linking accounts to qualify for ROA or LOI, please see the Funds’ SAI.
Purchases
of Class A shares of Invesco Conservative Income Fund, Invesco
Government Money Market Fund and Invesco Short Term Municipal Fund, Class AX shares or Invesco Cash Reserve Shares of Invesco Government
Money Market Fund and Invesco U.S. Government Money Portfolio, as applicable, or Investor Class shares of any Fund will not be
taken
into account in determining whether a purchase qualifies for a reduction in initial sales charges pursuant to ROAs or LOIs.
Rights
of Accumulation
Purchasers
that qualify for ROA may combine new purchases of Class A shares of a Fund with shares of the Fund or other open-end Invesco Funds
currently owned (Class A, C, IB, IC, P, R, S or Y) for the purpose of qualifying for the lower initial sales charge rates that apply
to larger purchases. The applicable initial sales charge for the new purchase will be based on the total of your current purchase and
the value of other shares owned based on their current public offering price. The Funds’ transfer agent may automatically link certain
accounts registered in the same name with the same taxpayer identification number for the purpose of qualifying you for lower initial
sales charge rates.
Letters
of Intent
Under
a LOI, you commit to purchase a specified dollar amount of Class A shares of one or more Funds during a 13-month period. The amount
you agree to purchase determines the initial sales charge you pay. If the full amount committed to in the LOI is not invested by the end
of the 13-month period, your account will generally be assessed the higher initial sales charge that would normally be applicable to the
total amount actually invested. Shares equal in value to 5% of the intended purchase amount will be held in escrow for this purpose.
Reinstatement
Following Redemption
If
you redeem any class of shares of a Fund, you may reinvest all or a portion of the proceeds from the redemption (and may include that
amount necessary to acquire a fractional Share to round off his or her purchase to the next full Share) in the same share class of any
Fund within 180 days of the redemption without paying an initial sales charge. Class P, S, and Y redemptions may be reinvested into Class
A shares without an initial sales charge.
This
reinstatement privilege does not apply to a purchase made through a
regularly scheduled automatic investment plan, such as a purchase by a regularly scheduled payroll deduction or transfer from a bank account.
This
reinstatement privilege shall be suspended for the period of time in which
a purchase block is in place on a shareholder’s account. Please see “Purchase Blocking Policy” discussed below.
In
order to take advantage of this reinstatement privilege, you must inform
your financial adviser or the Funds’ transfer agent that you wish to do so at the time of your reinvestment.
Contingent
Deferred Sales Charges (CDSCs)
CDSCs
on Class A Shares and Invesco Cash Reserve Shares
Any
shares of a Large Purchase of Class A shares redeemed prior to 18 months after the date of purchase will be subject to a CDSC of 1% with
the exception of Class A shares of Invesco Conservative Income Fund and Invesco Short Term Municipal Fund which do not have CDSCs on redemptions.
If
Invesco Distributors pays a concession to a financial intermediary in connection
with a Large Purchase of Class A shares by an Employer Sponsored Retirement and Benefit Plan or SIMPLE IRA Plan, the Class A shares will
be subject to a 1% CDSC if all of the Employer Sponsored Retirement and Benefit Plan’s or SIMPLE IRA’s shares are redeemed
within one year from the date of initial purchase.
If
you acquire Invesco Cash Reserve Shares or Class A shares of Invesco
Government Money Market Fund or Invesco Cash Reserve Shares of Invesco U.S. Government Money Portfolio through an exchange involving Class
A shares that were subject to a CDSC, the shares acquired as a result of the exchange will continue to be subject to that same CDSC.
CDSCs
on Class C Shares
Class
C shares are subject to a CDSC; however, the CDSC shall not apply to the purchases of Class C shares where the selling broker-dealer was
not paid a commission at the time of purchase. If you redeem your shares during the first year since your purchase has been made you will
be
A-10 The
Invesco Funds
assessed
a CDSC as disclosed in the “Fees and Expenses - Shareholder Fees” table in the prospectus, unless you qualify for one of the
CDSC exceptions outlined below.
CDSCs
on Class C Shares – Employer Sponsored Retirement and Benefit Plans and Employer Sponsored IRAs
Class
C shares are subject to a 1.00% CDSC at the time of redemption if all of the Employer Sponsored Retirement and Benefit Plan’s or
Employer Sponsored IRA’s shares are redeemed within one year from the date of initial purchase.
CDSCs
on Class C Shares of Invesco Short Term Bond Fund
Effective
November 1, 2021, Class C shares of Invesco Short Term Bond Fund are subject to a CDSC. If you acquire Class C shares of any other Fund
as a result of an exchange involving Class C shares of Invesco Short Term Bond Fund that were not subject to a CDSC prior to November
1, 2021, then the shares acquired as a result of the exchange will not be subject to a CDSC.
Computing
a CDSC
The
CDSC on redemptions of shares is computed based on the lower of their original purchase price or current net asset value, net of reinvested
dividends and capital gains distributions. In determining whether to charge a CDSC, shares are accounted for on a first-in, first-out
basis, which means that you will redeem shares on which there is no CDSC first, and then shares in the order of their purchase.
CDSC
Exceptions
Investors
who own shares that are otherwise subject to a CDSC will not pay a CDSC in the following circumstances:
◾
If
you participate in the Systematic Redemption Plan and withdraw up to 12% of the value of your shares that are subject to a CDSC in any
twelve-month period.
◾
If
you redeem shares to pay account fees.
◾
If
you are the executor, administrator or beneficiary of an estate or are otherwise entitled to assets remaining in an account following
the death or post-purchase disability of a shareholder or beneficial owner and you choose to redeem those shares.
There
are other circumstances under which you may be able to redeem shares
without paying CDSCs. For additional information about such circumstances, please see the Appendix entitled “Purchase, Redemption
and Pricing of Shares” in each Fund’s SAI.
Shares
acquired through the reinvestment of dividends and distributions are
not subject to CDSCs.
The
following share classes are sold without a CDSC:
◾
Class
A2 shares of Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund
◾
Class
A shares of Invesco Government Money Market Fund
◾
Invesco
Cash Reserve Shares of Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio
◾
Investor
Class shares of any Fund
◾
Class
P shares of Invesco Summit Fund
◾
Class
R5 and R6 shares of any Fund
◾
Class
R shares of any Fund
◾
Class
S shares of Invesco Charter Fund, Invesco Select Risk: Moderately Conservative Investor Fund, Invesco Select Risk: Growth Investor Fund,
Invesco Select Risk: Moderate Investor Fund and Invesco Summit Fund
◾
Class
Y shares of any Fund
Purchasing
Shares and Shareholder Eligibility
Invesco
Premier U.S. Government Money Portfolio
For
Invesco Premier U.S. Government Money Portfolio, you may purchase shares using one of the options below. Unless the Fund closes early
on a business day, the Fund’s transfer agent will generally accept any purchase order placed until 5:00 p.m. Eastern Time on a business
day and may accept a purchase order placed until 5:30 p.m. Eastern Time on a business
day.
If you wish to place an order between 5:00 p.m. and 5:30 p.m. Eastern Time on a business day, you must place such order by telephone;
however, the Fund’s transfer agent reserves the right to reject or limit the amount of orders placed during this time. If the Fund
closes early on a business day, the Fund’s transfer agent must receive your purchase order prior to such closing time. Purchase
orders will not be processed unless the account application and purchase payment are received in good order. In accordance with the USA
PATRIOT Act, if you fail to provide all the required information requested in the current account application, your purchase order will
not be processed. Additionally, federal law requires that the Fund verifies and records your identifying information.
Invesco
Premier Portfolio
Only
accounts beneficially owned by natural persons will be permitted to retain their shares. The Fund has implemented policies and procedures
reasonably designed to limit all beneficial owners of the Fund to natural persons, and investments in the Fund are limited to accounts
beneficially owned by natural persons. Natural persons may invest in the Fund through certain tax-advantaged savings accounts, trusts
and other retirement and investment accounts, which may include, among others: participant-directed defined contribution plans; individual
retirement accounts; simplified employee pension arrangements; simple retirement accounts; custodial accounts; deferred compensation plans
for government or tax-exempt organization employees; Archer medical savings accounts; college savings plans; health savings account plans;
ordinary trusts and estates of natural persons; or certain other retirement and investment accounts with ultimate investment authority
held by the natural person beneficial owner, notwithstanding having an institutional decision maker making day-to-day decisions (e.g.,
a plan sponsor in certain retirement arrangements or an investment adviser managing discretionary investment accounts).
Further,
financial intermediaries may only submit purchase orders if they have
implemented policies and procedures reasonably designed to limit all investors on behalf of whom they submit orders to accounts beneficially
owned by natural persons. Financial intermediaries may be required to provide a written statement or other representation that they have
in place, and operate in compliance with, such policies and procedures prior to submitting purchase orders. Such policies and procedures
may include provisions for the financial intermediary to promptly report to the Fund or the transfer agent the identification of any shareholder
of the Fund that does not qualify as a natural person of whom they are aware and promptly take steps to redeem any such shareholder’s
shares of the Fund upon request by the Fund or the transfer agent, in such manner as it may reasonably request. The Fund may involuntarily
redeem any such shareholder who does not voluntarily redeem their shares.
Natural
persons may purchase shares using one of the options below. For
all classes of the Fund, other than Investor Class shares, unless the Fund closes early on a business day, the Fund’s transfer agent
will generally accept any purchase order placed until 5:00 p.m. Eastern Time on a business day and may accept a purchase order placed
until 5:30 p.m. Eastern Time on a business day. If you wish to place an order between 5:00 p.m. and 5:30 p.m. Eastern Time on a business
day, you must place such order by telephone; or send your request by a pre-arranged Liquidity Link data transmission however, the Fund’s
transfer agent reserves the right to reject or limit the amount of orders placed during this time. For Investor Class shares of the Fund,
unless the Fund closes early on a business day, the Fund’s transfer agent will generally accept any purchase order placed until
4:00 p.m. Eastern Time on a business day and may accept a purchase order placed until 4:30 p.m. Eastern Time on a business day. If you
wish to place an order between 4:00 p.m. and 4:30 p.m. Eastern Time on a business day, you must place such order by telephone; however,
the Fund’s transfer agent reserves the right to reject or limit the amount of orders placed during this time. If the Fund closes
early on a business day, the Fund’s transfer agent must receive your purchase order prior to such closing time. Purchase orders
will not be processed unless the account application and purchase payment are received in good order. In accordance with the USA PATRIOT
Act, if you fail to provide all the required information requested in the current account application, your purchase order will not be
A-11 The
Invesco Funds
processed.
Additionally, federal law requires that the Fund verify and record your identifying information.
Minimum Investments
There
are no minimum investments for Class P or S shares for fund accounts. The minimum investments for Class A, C, R, Y, Investor Class and
Invesco Cash Reserve shares for fund accounts are as follows:
|
Type
of Account |
Initial
Investment
Per
Fund |
Additional
Investments
Per
Fund |
|
Asset
or fee-based accounts managed by your financial
adviser
|
None
|
None
|
|
| ||
|
Employer
Sponsored Retirement and Benefit Plans and
Employer
Sponsored IRAs |
None
|
None
|
|
| ||
|
IRAs
and Coverdell ESAs if the new investor is
purchasing
shares through a systematic purchase plan |
$25
|
$25
|
|
| ||
|
All
other accounts if the investor is purchasing shares
through
a systematic purchase plan |
50
|
50
|
|
| ||
|
IRAs
and Coverdell ESAs |
250
|
25
|
|
| ||
|
All
other accounts |
1,000
|
50
|
|
| ||
Invesco
Distributors or its designee has the discretion to accept orders on behalf of clients for lesser amounts.
The
minimum investments for Class R5 and R6 shares are as follows:
There
is no minimum initial investment for an Employer Sponsored Retirement
and Benefit Plan investing through a retirement platform that administers at least $2.5 billion in retirement plan assets. All other Employer
Sponsored Retirement and Benefit Plans must meet a minimum initial investment of at least $1 million in each Fund in which it invests.
The
minimum initial investment in each share class for all other institutional
investors is $1 million, unless such investment is made by (i) an investment company, as defined under the 1940 Act, as amended, that
is part of a family of investment companies which own in the aggregate at least $100 million in securities, or (ii) an account established
with a 529 college savings plan managed by Invesco, in which case there is no minimum initial investment.
There
are no minimum investment amounts for Class R6 shares held through
retail omnibus accounts where the intermediary:
◾
generally
charges an asset-based fee or commission in addition to those described in this prospectus; and
◾
maintains
Class R6 shares and makes them available to retail investors.
A
financial intermediary may impose different investment minimums than
those set forth above. The Fund is not responsible for any investment minimums imposed by financial intermediaries or for notifying shareholders
of any changes to them. See “Waivers Available Through Certain Financial Intermediaries and Other Financial Intermediary-Specific
Arrangements” for more information on certain intermediary-specific investment minimums. Please consult with your financial intermediary
if you have any questions regarding their policies.
How
to Purchase Shares*
|
|
Opening
An Account |
Adding
To An Account |
|
Through
a
Financial
Adviser
or
Financial
Intermediary*
|
Contact
your financial adviser or
financial
intermediary. |
Contact
your financial adviser or
financial
intermediary. |
|
By
Mail |
Mail
completed account application
and
check to the Funds’ transfer
agent,
Invesco
Investment Services, Inc.
P.O.
Box 219078,
Kansas
City, MO 64121-9078.
The
Funds’ transfer agent does NOT
accept
the following types of
payments:
Credit Card Checks,
Temporary/Starter
Checks, Third
Party
Checks, and Cash. |
Mail
your check and the remittance
slip
from your confirmation
statement
to the Funds’ transfer
agent.
The Funds’ transfer agent
does
NOT accept the following
types
of payments: Credit Card
Checks,
Temporary/Starter Checks,
Third
Party Checks, and Cash. |
|
|
Opening
An Account |
Adding
To An Account |
|
By
Wire* |
Mail
completed account application
to
the Funds’ transfer agent. Call
the
Funds’ transfer agent at (800)
959-4246
to receive a reference
number.
Then, use the wire
instructions
provided below. |
Call
the Funds’ transfer agent to
receive
a reference number. Then,
use
the wire instructions provided
below.
|
|
Wire
Instructions |
Beneficiary
Bank ABA/Routing #: 011001234
Beneficiary
Account Number: 729639
Beneficiary
Account Name: Invesco Investment Services, Inc.
RFB:
Fund Name, Reference #
OBI:
Your Name, Account # | |
|
By
Telephone* |
Open
your account using one of the
methods
described above. |
The
Bank Account Information
option
on your completed account
application
or complete a
Systematic
Options and Bank
Information
Form. Mail the
application
or form to the Funds’
transfer
agent. Once the Funds’
transfer
agent has received the
form,
call the Funds’ transfer agent
at
the number below to place your
purchase
order. For Class R5 and
R6
shares, call the Funds’ transfer
agent
at (800) 959-4246 and wire
payment
for your purchase order in
accordance
with the wire
instructions
listed above. |
|
Automated
Investor
Line |
Open
your account using one of the
methods
described above. |
Call
the Funds’ transfer agent’s
24-hour
Automated Investor Line at
1-800-246-5463.
You may place
your
order after you have provided
the
bank instructions that will be
requested.
|
|
By
Internet |
Open
your account using one of the
methods
described above. |
Access
your account at
www.invesco.com/us.
The proper
bank
instructions must have been
provided
on your account. You may
not
purchase shares in Retirement
and
Benefit Plans on the internet. |
|
*Class
R5 and R6 shares may only be purchased through a financial intermediary or by
telephone
at (800) 959-4246. | ||
Non-retirement
retail investors, including high net worth investors investing
directly or through a financial intermediary, are not eligible for Class R5 shares. IRAs and Employer Sponsored IRAs are also not eligible
for Class R5 shares. If you hold your shares through a financial intermediary, the terms by which you purchase, redeem and exchange shares
may differ than the terms in this prospectus depending upon the policies and procedures of your financial intermediary.
Purchase
orders will not be processed unless the account application and
purchase payment are received in good order. In accordance with the USA PATRIOT Act, if you fail to provide all the required information
requested in the current account application, your purchase order will not be processed. Additionally, federal law requires that the Funds
verify and record your identifying information.
Systematic
Purchase Plan (Available for all classes except Class R5 and R6 shares)
You
can arrange for periodic investments in any of the Funds by authorizing the Funds’ transfer agent to withdraw the amount of your
investment from your bank account on a day or dates you specify and in an amount of at least $25 per Fund for IRAs and Coverdell ESAs,
and at least $50 per Fund for all other types of accounts (a Systematic Purchase Plan). You may stop the Systematic Purchase Plan at any
time by giving the Funds’ transfer agent notice ten days prior to your next scheduled withdrawal. Certain financial advisers and
other financial intermediaries may also offer systematic purchase plans.
A-12 The
Invesco Funds
Dollar
Cost Averaging (Available for all classes except Class R5 and R6 shares)
Dollar
Cost Averaging allows you to make automatic periodic exchanges, if permitted, from one Fund to another Fund or multiple other Funds. The
account from which exchanges are to be made must have a minimum balance of $5,000 before you can use this option. Exchanges will occur
on (or about) the day of the month you specify, in the amount you specify. Dollar Cost Averaging cannot be set up for the 29th through
the 31st of the month. The minimum amount you can exchange to another Fund is $50. Your financial intermediary may offer alternative dollar
cost averaging programs with different requirements.
Automatic
Dividend and Distribution Investment
Your
dividends and distributions may be paid in cash or reinvested in the same Fund or another Fund without paying an initial sales charge.
Unless
you specify otherwise, your dividends and distributions will automatically
be reinvested in the same Fund. You must comply with the following requirements to be eligible to invest your dividends and distributions
in shares of another Fund:
◾
Your
account balance in the Fund paying the dividend or distribution must be at least $5,000; and
◾
Your
account balance in the Fund receiving the dividend or distribution must be at least $500.
If
you elect to receive your distributions by check, and the distribution amount
is $25 or less, then the amount will be automatically reinvested in the same Fund and no check will be issued. If you have elected to
receive distributions by check, and the postal service is unable to deliver checks to your address of record, then your distribution election
may be converted to having all subsequent distributions reinvested in the same Fund and no checks will be issued. With respect to certain
account types, if your check remains uncashed for six months, the Fund generally reserves the right to reinvest your distribution check
in your account at the then applicable NAV and to reinvest all subsequent distributions in shares of the Fund. Such checks will be reinvested
into the same share class of the Fund. You should contact the Funds’ transfer agent to change your distribution option, and your
request to do so must be received by the Funds’ transfer agent before the record date for a distribution in order to be effective
for that distribution. No interest will accrue on amounts represented by uncashed distribution checks.
Redeeming
Shares*
The
Funds’ transfer agent or authorized intermediary, if applicable, must receive your call before the Funds’ net asset value
determination (as defined by the applicable Fund) in order to effect the redemption at that day’s net asset value.
Your
broker or financial intermediary may charge service fees for handling
redemption transactions.
|
How
to Redeem Shares | |
|
Through
a Financial
Adviser
or Financial
Intermediary*
|
Contact
your financial adviser or financial intermediary. The Funds’
transfer
agent must receive your financial adviser’s or financial
intermediary’s
call before the Funds’ net asset value determination
(as
defined by the applicable Fund) in order to effect the redemption
at
that day’s net asset value. Please contact your financial adviser or
financial
intermediary with respect to reporting of cost basis and
available
elections for your account. |
|
By
Mail |
Send
a written request to the Funds’ transfer agent which includes: |
|
|
▪ Original
signatures of all registered owners/trustees;
▪ The
dollar value or number of shares that you wish to redeem;
▪ The
name of the Fund(s) and your account number;
▪ The
cost basis method or specific shares you wish to redeem for
tax
reporting purposes, if different than the method already on
record;
and |
|
|
▪ Signature
guarantees, if necessary (see below).
The
Funds’ transfer agent may require that you provide additional
documentation,
or information, such as corporate resolutions or
powers
of attorney, if applicable. If you are redeeming from a
Retirement
and Benefit Plan, you must complete the appropriate
distribution
form. |
|
How
to Redeem Shares | |
|
By
Telephone* |
Call
the Funds’ transfer agent at 1-800-959-4246. You will be
allowed
to redeem by telephone if:
▪ Your
redemption proceeds are to be mailed to your address on
record
(and there has been no change in your address of record
within
the last 15 days) or transferred electronically to a
pre-authorized
checking account;
▪ You
can provide proper identification information;
▪ Your
redemption proceeds do not exceed $250,000 per Fund; and
▪ You
have not previously declined the telephone redemption
privilege.
|
|
|
You
may, in limited circumstances, initiate a redemption from an
Invesco
IRA by telephone. Redemptions from Employer Sponsored
Retirement
and Benefit Plans and Employer Sponsored IRAs may be
initiated
only in writing and require the completion of the appropriate
distribution
form, as well as employer authorization. You must call the
Funds’
transfer agent before the Funds’ net asset value
determination
(as defined by the applicable Fund) in order to effect
the
redemption at that day’s net asset value. |
|
Automated
Investor Line |
Call
the Funds’ transfer agent’s 24-hour Automated Investor Line at
1-800-246-5463.
You may place your redemption order after you
have
provided the bank instructions that will be requested. |
|
By
Internet |
Place
your redemption request at www.invesco.com/us. You will be
allowed
to redeem by Internet if:
▪ You
can provide proper identification information;
▪ Your
redemption proceeds do not exceed $250,000 per Fund; and
▪ You
have already provided proper bank information.
Redemptions
from Employer Sponsored Retirement and Benefit
Plans
and Employer Sponsored IRAs may be initiated only in writing
and
require the completion of the appropriate distribution form, as
well
as employer authorization. |
|
*Class
R5 and R6 shares may only be redeemed through a financial intermediary or by
telephone
at (800) 959-4246. | |
Timing
and Method of Payment
The
Funds’ transfer agent typically expects to pay redemption proceeds to redeeming shareholders within one business day after a redemption
request is received in good order, regardless of the method a Fund uses to make such payment. However, a Fund may take up to seven days
to process a redemption request. “Good order” means that all necessary information and documentation related to the redemption
request have been provided to the Funds’ transfer agent or authorized intermediary, if applicable. If your request is not in good
order, the Funds’ transfer agent may require additional documentation in order to redeem your shares. If you redeem shares recently
purchased by check or ACH, you may be required to wait up to ten calendar days before your redemption proceeds are sent. This delay is
necessary to ensure that the purchase has cleared. You can avoid the check hold period if you pay for your shares with a certified check,
a cashier’s check or a federal wire. Payment may be postponed under unusual circumstances, as allowed by the SEC, such as when the
NYSE restricts or suspends trading.
In
addition, a temporary hold may be placed on the disbursement of redemption
proceeds from an account if there is a reasonable belief that financial exploitation of a Specified Adult (as defined below) has occurred,
is occurring, has been attempted, or will be attempted. Notice of such a delay will be provided in accordance with regulatory requirements.
This temporary hold will be for an initial period of no more than 15 business days while an internal review is performed. Should the internal
review support the belief that financial exploitation has occurred, is occurring, has been attempted or will be attempted, the temporary
hold may be extended for up to 10 additional business days. Both the initial and subsequent hold on the disbursement may be terminated
or extended by a state regulator or an agency or court of competent jurisdiction. For purposes of this paragraph, the term “Specified
Adult” refers to an individual who is (a) a natural person age 65 and older, or (b) a natural person age 18 and older who is reasonably
believed to have a mental or physical impairment that renders the individual unable to protect his or her own interests.
If
you redeem by telephone, the Funds’ transfer agent will transmit the amount
of redemption proceeds electronically to your pre-authorized bank account. Redemption checks are mailed to your address of record, via
first
A-13 The
Invesco Funds
class
U.S. mail, unless you make other arrangements with the Funds’ transfer agent.
The
Funds’ transfer agent uses reasonable procedures to confirm that instructions
communicated via telephone and the Internet are genuine, and the Funds and the Funds’ transfer agent are not liable for losses arising
from actions taken in accordance with instructions that are reasonably believed to be genuine.
A
Fund typically expects to use holdings of cash and cash equivalents and
sales of portfolio assets to meet redemption requests, both regularly and in stressed market conditions. The Funds also have the ability
to redeem in kind as further described below under “Redemptions in Kind.” Certain Funds have a line of credit,
as disclosed in such Funds’ principal investment strategy
and risk disclosures that may be used to meet redemptions in stressed market conditions.
Expedited
Redemptions (for Invesco Cash Reserve Shares of Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio only)
If
you place your redemption order by telephone, before 11:30 a.m. Eastern Time and request an expedited redemption, the Funds’ transfer
agent will transmit payment of redemption proceeds on that same day via federal wire to a bank of record on your account. If the Funds’
transfer agent receives your redemption order after 11:30 a.m. Eastern Time and before the close of the customary trading session of the
NYSE, it will transmit payment on the next business day.
Suspension
of Redemptions
The
right of redemption may be suspended or the date of payment postponed when (a) trading on the NYSE is restricted, as determined by applicable
rules and regulations of the SEC, (b) the NYSE is closed for other than customary weekend and holiday closings, (c) the SEC has by order
permitted such suspension, or (d) an emergency as determined by the SEC exists making disposition of portfolio securities or the valuation
of the net assets of the Fund not reasonably practicable. With respect to Invesco Government Money Market Fund, Invesco U.S. Government
Money Portfolio, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio, in the event that the Fund, at the end
of a business day, has invested less than 10% of its total assets in weekly liquid assets or, with respect to the retail and government
money market funds, the Fund’s price per share as computed for the purpose of distribution, redemption and repurchase, rounded to
the nearest 1%, has deviated from the stable price established by the Fund’s Board of Trustees (“Board”) or the Board,
including a majority of trustees who are not interested persons as defined in the 1940 Act, determines that such a deviation is likely
to occur, and the Board, including a majority of trustees who are not interested persons of the Fund, irrevocably has approved the liquidation
of the Fund, the Fund’s Board has the authority to suspend redemptions of Fund shares.
Liquidity
Fees and Redemption Gates
For
Invesco Premier Portfolio, if the Fund’s weekly liquid assets fall below 30% of its total assets, the Board, in its discretion,
may impose liquidity fees of up to 2% of the value of the shares redeemed and/or suspend redemptions (redemption gates). In addition,
if any such Fund’s weekly liquid assets falls below 10% of its total assets at the end of any business day, the Fund must impose
a 1% liquidity fee on shareholder redemptions unless the Board determines that not doing so is in the best interests of the Fund.
Liquidity
fees and redemption gates are most likely to be imposed, if at all,
during times of extraordinary market stress. In the event that a liquidity fee or redemption gate is imposed, the Board expects that for
the duration of its implementation and the day after which such gate or fee is terminated, the Fund would strike only one net asset value
per day, at the Fund’s last scheduled net asset value calculation time.
The
imposition and termination of a liquidity fee or redemption gate will be
reported by a Fund to the SEC on Form N-CR. Such information will also be available on the Fund’s website. In addition, a Fund will
communicate such action through a supplement to its registration statement and may further communicate such action through a press release
or by other means. If a liquidity fee is applied by the Board, it will be charged on all
redemption
orders submitted after the effective time of the imposition of the fee by the Board. Liquidity fees would reduce the amount you receive
upon redemption of your shares. In the event a Fund imposes a redemption gate, the Fund or any financial intermediary on its behalf will
not accept redemption requests until the Fund provides notice that the redemption gate has been terminated.
Redemption
requests submitted while a redemption gate is imposed will be cancelled
without further notice. If shareholders still wish to redeem their shares after a redemption gate has been lifted, they will need to submit
a new redemption request.
Liquidity
fees and redemption gates will generally be used to assist a Fund
to help preserve its market–based NAV per share. It is possible that a liquidity fee will be returned to shareholders in the form
of a distribution. The Board may, in its discretion, terminate a liquidity fee or redemption gate at any time if it believes such action
to be in the best interest of a Fund. Also, liquidity fees and redemption gates will automatically terminate at the beginning of the next
business day once a Fund’s weekly liquid assets reach at least 30% of its total assets. Redemption gates may only last up to 10
business days in any 90-day period. When a fee or a gate is in place, the Fund may elect not to permit the purchase of shares or to subject
the purchase of shares to certain conditions, which may include affirmation of the purchaser’s knowledge that a fee or a gate is
in effect. When a fee or a gate is in place, shareholders will not be permitted to exchange into or out of a Fund.
There
is some degree of uncertainty with respect to the tax treatment of liquidity
fees received by a Fund, and such tax treatment may be the subject to future IRS guidance. If a Fund receives liquidity fees, it will
consider the appropriate tax treatment of such fees to the Fund at such time.
Financial
intermediaries are required to promptly take the steps requested
by the Funds or their designees to impose or help to implement a liquidity fee or redemption gate as requested from time to time, including
the rejection of orders due to the imposition of a fee or gate or the prompt re-confirmation of orders following a notification regarding
the implementation of a fee or gate. If a liquidity fee is imposed, these steps are expected to include the submission of separate, rather
than combined, purchase and redemption orders from the time of the effectiveness of the liquidity fee or redemption gate and the submission
of such order information to the Fund or its designee prior to the next calculation of a Fund’s net asset value. Unless otherwise
agreed to between a Fund and financial intermediary, the Fund will withhold liquidity fees on behalf of financial intermediaries. With
regard to such orders, a redemption request that a Fund determines in its sole discretion has been received in good order by the Fund
or its designated agent prior to the imposition of a liquidity fee or redemption gate may be paid by the Fund despite the imposition of
a redemption gate or without the deduction of a liquidity fee. If a liquidity fee is imposed during the day, an intermediary who receives
both purchase and redemption orders from a single account holder is not required to net the purchase and redemption orders. However, the
intermediary is permitted to apply the liquidity fee to the net amount of redemptions (even if the purchase order was received prior to
the time the liquidity fee was imposed).
Where
a Financial Intermediary serves as a Fund’s agent for the purpose
of receiving orders, trades that are not transmitted to the Fund by the Financial Intermediary before the time required by the Fund or
the transfer agent may, in the Fund’s discretion, be processed on an as-of basis, and any cost or loss to the Fund or transfer agent
or their affiliates, from such transactions shall be borne exclusively by the Financial Intermediary.
Systematic
Withdrawals (Available for all classes except Class R5 and R6 shares)
You
may arrange for regular periodic withdrawals from your account in amounts equal to or greater than $50 per Fund. The Funds’ transfer
agent will redeem the appropriate number of shares from your account to provide redemption proceeds in the amount requested. You must
have a total account balance of at least $5,000 in order to establish a Systematic Redemption Plan, unless you are establishing a Required
Minimum
A-14 The
Invesco Funds
Distribution
for a Retirement and Benefit Plan. You can stop this plan at any time by giving ten days’ prior notice to the Funds’ transfer
agent.
Check
Writing
The
Funds’ transfer agent provides check writing privileges for accounts in the following Funds and share classes:
◾
Invesco
Government Money Market Fund, Invesco Cash Reserve Shares, Class AX shares, Class Y shares and Investor Class shares
◾
Invesco
U.S. Government Money Portfolio, Invesco Cash Reserve Shares and Class Y shares
◾
Invesco
Premier Portfolio, Investor Class shares
◾
Invesco
Premier U.S. Government Money Portfolio, Investor Class shares
You
may redeem shares of these Funds by writing checks in amounts of $250
or more if you have subscribed to the service by completing a Check Writing authorization form.
Check
writing privileges are not available for Retirement and Benefit Plans.
Checks are not eligible to be converted to ACH by the payee. You may not give authorization to a payee by phone to debit your account
by ACH for a debt owed to the payee.
If
you do not have a sufficient number of shares in your account to cover
the amount of the check and any applicable deferred sales charge, the check will be returned and no shares will be redeemed. Because it
is not possible to determine your account’s value in advance, you should not write a check for the entire value of your account
or try to close your account by writing a check.
A
check writing redemption request which is verifiably submitted to a Fund’s
agent before a liquidity fee or redemption gate is imposed will be considered a valid redemption and will be processed normally.
Signature
Guarantees
The
Funds’ transfer agent requires a signature guarantee in the following circumstances:
◾
When
your redemption proceeds exceed $250,000 per Fund.
◾
When
you request that redemption proceeds be paid to someone other than the registered owner of the account.
◾
When
you request that redemption proceeds be sent somewhere other than the address of record or bank of record on the account.
◾
When
you request that redemption proceeds be sent to a new address or an address that changed in the last 15 days.
The
Funds’ transfer agent will accept a guarantee of your signature by a number
of different types of financial institutions. Call the Funds’ transfer agent for additional information. Some institutions have
transaction amount maximums for these guarantees. Please check with the guarantor institution to determine whether the signature guarantee
offered will be sufficient to cover the value of your transaction request.
Redemptions
in Kind
Although
the Funds generally intend to pay redemption proceeds solely in cash, the Funds reserve the right to determine, in their sole discretion,
whether to satisfy redemption requests by making payment in securities or other property (known as a redemption in kind). Redemptions
in kind may result in transaction costs and/or market fluctuations associated with liquidating or holding the securities, respectively.
Purchases-in-Kind
You
may purchase shares of a Fund by transferring securities to a Fund in exchange for Fund shares (“in-kind purchases”). In-kind
purchases may be made only upon the Funds’ approval and determination that the securities are acceptable investments for the Fund
and are purchased consistent with the Fund’s procedures relating to in-kind purchases. The Funds reserve the right to amend or terminate
this practice at any time. You must call the Funds at (800) 959-4246 before sending any securities. Please see the SAI for additional
details.
Redemptions
by Large Shareholders
At
times, the Fund may experience adverse effects when certain large shareholders redeem large amounts of shares of the Fund. Large redemptions
may cause the Fund to sell portfolio securities at times when it would not otherwise do so. In addition, these transactions may also
accelerate
the realization of taxable income to shareholders (if applicable) if such sales of investments resulted in gains and may also increase
transaction costs and/or increase in the Fund’s expense ratio. When experiencing a redemption by a large shareholder, the Fund may
delay payment of the redemption request up to seven days to provide the investment manager with time to determine if the Fund can redeem
the request-in-kind or to consider other alternatives to lessen the harm to remaining shareholders. Under certain circumstances, however,
the Fund may be unable to delay a redemption request, which could result in the automatic processing of a large redemption that is detrimental
to the Fund and its remaining shareholders.
Redemptions
Initiated by the Funds
If
your account (Class A, C, P, S and Investor Class shares only) has been open at least one year, you have not made an additional purchase
in the account during the past six calendar months, and the value of your account falls below $500 for three consecutive months, the Funds
have the right to redeem the account after giving you 60 days’ prior written notice. You may avoid having your account redeemed
during the notice period by bringing the account value up to $500 or by initiating a Systematic Purchase Plan.
A
financial intermediary may have a different policy regarding redemptions
of accounts with small balances. The Fund is not responsible for any small account balance policies imposed by financial intermediaries
or for notifying shareholders of any changes to them. See “Waivers Available Through Certain Financial Intermediaries and Other
Financial Intermediary-Specific Arrangements” for more information on certain intermediary-specific small account balance policies.
Please consult with your financial intermediary if you have any questions regarding their policies.
If
a Fund determines that you have not provided a correct Social Security
or other tax identification number on your account application, or the Fund is not able to verify your identity as required by law, the
Fund may, at its discretion, redeem the account and distribute the proceeds to you.
In
order to separate retail investors (natural persons) and non-retail investors,
the Invesco Premier Portfolio reserve the right to redeem shares in any account that the Funds cannot confirm to their satisfaction are
beneficially owned by natural persons. The Funds will provide advance written notice of their intent to make any such involuntary redemptions.
The Funds reserve the right to redeem shares in any account that they cannot confirm to their satisfaction are beneficially owned by natural
persons, after providing advance notice.
Neither
a Fund nor its investment adviser will be responsible for any loss
in an investor’s account or tax liability resulting from an involuntary redemption.
Minimum
Account Balance (Available for all classes except Class R5 and R6 shares)
A
low balance fee of $12 per year may be deducted in the fourth quarter of each year from all accounts held in the Funds (each a Fund Account)
with a value less than the low balance amount (the Low Balance Amount) as determined from time to time by the Funds and the Adviser. The
Funds and the Adviser generally expect the Low Balance Amount to be $750, but such amount may be adjusted for any year depending on various
factors, including market conditions. The Low Balance Amount and the date on which it will be deducted from any Fund Account will be posted
on our website, www.invesco.com/us, on or about November 1 of each year. This fee will be payable to the Funds’ transfer agent by
redeeming from a Fund Account sufficient shares owned by a shareholder and will be used by the Funds’ transfer agent to offset amounts
that would otherwise be payable by the Funds to the Funds’ transfer agent under the Funds’ transfer agency agreement with
the Funds’ transfer agent. The low balance fee does not apply to participant accounts in advisory programs or to Employer Sponsored
Retirement and Benefit Plans.
Exchanging
Shares
You
may, under certain circumstances, exchange shares in one Fund for those of another Fund. An exchange is the purchase of shares in one
Fund which is paid for with the proceeds from a redemption of shares of another
A-15 The
Invesco Funds
Fund
effectuated on the same day. Any gain on the transaction may be subject to federal income tax. Accordingly, the procedures and processes
applicable to redemptions of Fund shares, as discussed under the heading “Redeeming Shares” above, will apply. Before requesting
an exchange, review the prospectus of the Fund you wish to acquire.
All
exchanges are subject to the limitations set forth in the prospectuses of
the Funds. If you wish to exchange shares of one Fund for those of another Fund, you must consult the prospectus of the Fund whose shares
you wish to acquire to determine whether the Fund is offering shares to new investors and whether you are eligible to acquire shares of
that Fund.
Permitted
Exchanges
Except
as otherwise provided herein or in the SAI, you generally may exchange your shares for shares of the same class of another Fund. The following
table shows generally permitted exchanges from one Fund to another Fund (exceptions listed below under “Exchanges Not Permitted”):
|
Exchange
From |
Exchange
To |
|
Invesco
Cash Reserve Shares |
Class
A, C, R, Investor Class |
|
| |
|
Class
A |
Class
A, Investor Class, Invesco Cash Reserve Shares* |
|
| |
|
Class
A2 |
Class
A, Investor Class, Invesco Cash Reserve Shares |
|
| |
|
Class
AX |
Class
A, AX, Investor Class, Invesco Cash Reserve Shares |
|
| |
|
Investor
Class |
Class
A, Investor Class |
|
| |
|
Class
P |
Class
A, Invesco Cash Reserve Shares |
|
| |
|
Class
S |
Class
A, S, Invesco Cash Reserve Shares |
|
| |
|
Class
C |
Class
C* |
|
| |
|
Class
CX |
Class
C, CX |
|
| |
|
Class
R |
Class
R* |
|
| |
|
Class
R5 |
Class
R5 |
|
| |
|
Class
R6 |
Class
R6 |
|
| |
|
Class
Y |
Class
Y* |
|
|
|
|
* You
may exchange Class Y shares of Invesco U.S. Government Money Portfolio for Class A, C
or
R shares of any other Fund as long as you are otherwise eligible for such share class. If you
exchange
Class Y shares of Invesco U.S. Government Money Portfolio for Class A, C or R shares
of
any other Fund, you may exchange those Class A, C or R shares back into Class Y shares of
Invesco
U.S. Government Money Portfolio, but not Class Y shares of any other Fund. | |
Exchanges
into Invesco Senior Loan Fund
Invesco
Senior Loan Fund is a closed-end interval fund that continuously offers its shares pursuant to the terms and conditions of its prospectus.
The Adviser is the investment adviser for the Invesco Senior Loan Fund. As with the Invesco Funds, you generally may exchange your shares
of Class A (Invesco Cash Reserve Shares of Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio) or Class
C of any Invesco Fund for shares of Class A or Class C, respectively, of Invesco Senior Loan Fund. Please refer to the prospectus for
the Invesco Senior Loan Fund for more information, including limitations on exchanges out of Invesco Senior Loan Fund.
Exchanges
Not Permitted
The
following exchanges are not permitted:
◾
Investor
Class shares cannot be exchanged for Class A shares of any Fund which offers Investor Class shares.
◾
Class A2
shares of Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund cannot be exchanged for Class A shares
of those Funds.
◾
Invesco
Cash Reserve Shares cannot be exchanged for Class C or R shares if the shares being exchanged were acquired by exchange from Class A
shares of any Fund.
◾
All
existing systematic exchanges and reallocations will cease and these options will no longer be available on all 403(b) prototype plans.
◾
Class
A, C or R shares of a Fund acquired by exchange of Class Y shares of Invesco U.S. Government Money Portfolio cannot be exchanged for Class
Y shares of any Fund, except Class Y shares of Invesco U.S. Government Money Portfolio.
Exchange
Conditions
Shares
must have been held for at least one day prior to the exchange with the exception of dividends and distributions that are reinvested.
Under
unusual market conditions, a Fund may delay the exchange of shares
for up to five business days if it determines that it would be materially disadvantaged by the immediate transfer of exchange proceeds.
The exchange privilege is not an option or right to purchase shares. Any of the participating Funds or the distributor may modify or terminate
this privilege at any time.
Initial
Sales Charges, CDSCs and 12b-1 Fees Applicable to Exchanges
You
may be required to pay an initial sales charge when exchanging from a Fund with a lower initial sales charge than the one into which you
are exchanging. If you exchange into shares that are subject to a CDSC, the Funds’ transfer agent will begin the holding period
for purposes of calculating the CDSC on the date you made your initial purchase.
In
addition, as a result of differences in the forms of distribution plans among
the Funds, certain exchanges of Class A shares, Class C shares, and Class R shares of a Fund for the same class of shares of another Fund
may result in investors paying a higher or a lower 12b-1 fee on the Fund being exchanged into. Please refer to the prospectus fee table
and financial highlights table and the SAI for more information on the fees and expenses, including applicable 12b-1 fees, of the Fund
you wish to acquire.
Share
Class Conversions
Shares
of one class of a Fund may be converted into shares of another class of the same Fund, provided that you are eligible to buy that share
class. Investors who hold Fund shares through a financial intermediary that does not have an agreement to make certain share classes of
the Funds available or that cannot systematically support the conversion may not be eligible to convert their shares. Furthermore, your
financial intermediary may have discretion to effect a conversion on your behalf. Consult with your financial intermediary for details.
Any CDSC associated with the converting shares will be assessed immediately prior to the conversion to the new share class. The conversion
of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes and no gain
or loss will be reported on the transaction. See the applicable prospectus for share class information.
Fees
and expenses differ between share classes. You should read the prospectus
for the share class into which you are seeking to convert your shares prior to the conversion.
Automatic
Conversion of Class C and Class CX Shares
Class
C and Class CX shares held for eight years after purchase are eligible for automatic conversion into Class A and Class AX shares of the
same Fund, respectively, except that for the Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio, the Funds’
Class C and/or Class CX shares would be eligible to automatically convert into the Fund’s Invesco Cash Reserve Share Class and all
existing Class C shares of Invesco Short Term Municipal Fund will automatically convert to Class A shares of that Fund at the end of June
2022 (the Conversion Feature). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month
following the eighth anniversary after a purchase of Class C or Class CX shares (the Conversion Date). The first conversion of Class C
and Class CX shares to Class A and Class AX shares under this policy would occur at the end of December 2020 for all Class C and Class
CX shares that were held for more than eight years as of November 30, 2020.
Automatic
conversions pursuant to the Conversion Feature will be on the basis
of the NAV per share, without the imposition of any sales charge (including a CDSC), fee or other charge. All such automatic conversions
of Class C and Class CX shares will constitute tax-free exchanges for federal income tax purposes.
Class
C and Class CX shares of a Fund acquired through a reinvestment of
dividends and distributions will convert to Class A and Class AX shares, respectively, of the Fund (or Invesco Cash Reserve shares for
Invesco
A-16 The
Invesco Funds
Government
Money Market Fund) on the Conversion Date pro rata with the converting Class C and Class CX shares of that Fund that were not acquired
through reinvestment of dividends and distributions.
Class
C or Class CX shares held through a financial intermediary in existing
omnibus Employer Sponsored Retirement and Benefit Plans and other omnibus accounts may be converted pursuant to the Conversion Feature
by the financial intermediary once it is determined that the Class C or Class CX shares have been held for the required holding period.
It is the financial intermediary’s (and not the Fund’s) responsibility to keep records and to ensure that the shareholder
is credited with the proper holding period as the Fund and its agents may not have transparency into how long a shareholder has held Class
C or Class CX shares for purposes of determining whether such Class C or Class CX shares are eligible to automatically convert pursuant
to the Conversion Feature. In order to determine eligibility for automatic conversion in these circumstances, it is the responsibility
of the shareholder or their financial intermediary to determine that the shareholder is eligible to exercise the Conversion Feature, and
the shareholder or their financial intermediary may be required to maintain records that substantiate the holding period of Class C or
Class CX shares.
In
addition, a financial intermediary may sponsor and/or control programs
or platforms that impose a different conversion schedule or eligibility requirements for conversions of Class C or Class CX shares. In
these cases, Class C and Class CX shares of certain shareholders may not be eligible for automatic conversion pursuant to the Conversion
Feature as described above. The Fund has no responsibility for overseeing, monitoring or implementing a financial intermediary’s
process for determining whether a shareholder meets the required holding period for automatic conversion. Please consult with your financial
intermediary if you have any questions regarding the Conversion Feature.
Share
Class Conversions Not Permitted
The
following share class conversions are not permitted:
◾
Conversions
into Class A from Class A2 of the same Fund.
◾
Conversions
into Class A2, Class AX, Class CX, Class P or Class S of the same Fund.
Rights
Reserved by the Funds
Each
Fund and its agents reserve the right at any time to:
◾
Reject
or cancel all or any part of any purchase or exchange order.
◾
Modify
any terms or conditions related to the purchase, redemption or exchange of shares of any Fund.
◾
Reject
or cancel any request to establish a Systematic Purchase Plan or Systematic Redemption Plan.
◾
Modify
or terminate any sales charge waivers or exceptions.
◾
Suspend,
change or withdraw all or any part of the offering made by this prospectus.
Excessive
Short-Term Trading Activity (Market Timing) Disclosures
While
the Funds provide their shareholders with daily liquidity, their investment programs are designed to serve long-term investors and are
not designed to accommodate excessive short-term trading activity in violation of our policies described below. Excessive short-term trading
activity in the Funds’ shares (i.e., a purchase of Fund shares followed shortly thereafter by a redemption of such shares, or vice
versa) may hurt the long-term performance of certain Funds by requiring them to maintain an excessive amount of cash or to liquidate portfolio
holdings at a disadvantageous time, thus interfering with the efficient management of such Funds by causing them to incur increased brokerage
and administrative costs. Where excessive short-term trading activity seeks to take advantage of arbitrage opportunities from stale prices
for portfolio securities, the value of Fund shares held by long-term investors may be diluted. The Board has adopted policies and procedures
designed to discourage excessive or short-term trading of Fund shares for all Funds except the money market funds, Invesco Conservative
Income Fund, and Invesco Short Term Municipal Fund. However, there is the risk that these Funds’ policies and procedures will prove
ineffective in whole or in part to detect or prevent excessive or
short-term
trading. These Funds may alter their policies at any time without prior notice to shareholders if the Adviser believes the change would
be in the best interests of long-term shareholders.
Invesco
and certain of its corporate affiliates (Invesco and such affiliates,
collectively, the Invesco Affiliates) currently use the following tools designed to discourage excessive short-term trading in the retail
Funds:
◾
Trade
activity monitoring.
◾
Discretion
to reject orders.
◾
Purchase
blocking.
◾
The
use of fair value pricing consistent with the valuation policy approved by the Board and related procedures.
Each
of these tools is described in more detail below. Although these tools
are designed to discourage excessive short-term trading, you should understand that none of these tools alone nor all of them taken together
eliminate the possibility that excessive short-term trading activity in the Funds will occur. Moreover, each of these tools involves judgments
that are inherently subjective. Invesco Affiliates seek to make these judgments to the best of their abilities in a manner that they believe
is consistent with long-term shareholder interests.
Money
Market Funds. The Boards of Invesco Government Money Market Fund,
Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio (the money market
funds) have not adopted any policies and procedures that would limit frequent purchases and redemptions of such Funds’ shares. The
Boards of the money market funds considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal. Nonetheless, to the extent that a money market fund must maintain additional cash and/or
securities with short-term durations in greater amounts than may otherwise be required or borrow to honor redemption requests, the money
market fund’s yield could be negatively impacted.
The
Boards of the money market funds do not believe that it is appropriate
to adopt any such policies and procedures for the money market funds for the following reasons:
◾
The
money market funds are offered to investors as cash management vehicles; therefore, investors should be able to purchase and redeem shares
regularly and frequently.
◾
One
of the advantages of a money market fund as compared to other investment options is liquidity. Any policy that diminishes the liquidity
of the money market funds will be detrimental to the continuing operations of such Funds.
◾
With
respect to the money market funds maintaining a constant net asset value, the money market funds’ portfolio securities are valued
on the basis of amortized cost, and such Funds seek to maintain a constant net asset value. As a result, the money market funds are not
subject to price arbitrage opportunities.
◾
With
respect to the money market funds maintaining a constant net asset value, because such Funds seek to maintain a constant net asset value,
investors are more likely to expect to receive the amount they originally invested in the Funds upon redemption than other mutual funds.
Invesco
Conservative Income Fund. The Board of Invesco Conservative Income
Fund has not adopted any policies and procedures that would limit frequent purchases and redemptions of such Fund’s shares. The
Board of Invesco Conservative Income Fund considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal especially in light of the reasons for not having such a policy as described below. Nonetheless,
to the extent that the Fund must maintain additional cash and/or securities with short-term durations in greater amounts than may otherwise
be required or borrow to honor redemption requests, the Fund’s yield could be negatively impacted.
The
Board of the Invesco Conservative Income Fund does not believe that
it is appropriate to adopt any such policies and procedures for the Fund for the following reasons:
◾
The
Fund is offered to investors as a cash management vehicle; investors perceive an investment in the Fund as an alternative to cash and
must be able to purchase and redeem shares regularly and frequently.
A-17 The
Invesco Funds
◾
One
of the advantages of the Fund as compared to other investment options is liquidity. Any policy that diminishes the liquidity of the Fund
will be detrimental to the continuing operations of the Fund.
Excessive
trading activity in the Fund’s shares may cause the Fund to incur
increased brokerage and administrative costs.
The
Fund and its agent reserve the right at any time to reject or cancel any
part of any purchase order. This could occur if the Fund determines that such purchase may disrupt the Fund’s operation or performance.
Invesco
Short Term Municipal Fund. The Board of Invesco Short Term Municipal
Fund has not adopted any policies and procedures that would limit frequent purchases and redemptions of such Fund’s shares. The
Board of Invesco Short Term Municipal Fund considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal, especially in light of the reasons for not having such a policy as described below. Nonetheless,
to the extent that the Fund must maintain additional cash and/or securities with short-term durations in greater amounts than may otherwise
be required or borrow to honor redemption requests, the Fund’s yield could be negatively impacted.
The
Board of Invesco Short Term Municipal Fund does not believe that it is
appropriate to adopt any such policies and procedures for the Fund for the following reasons:
◾
The
Fund is designed to address the needs of retail investors who seek liquidity in their investment and seek the ability to purchase and
redeem shares at any time.
◾
Any
policy that diminishes the ability of shareholders to purchase and redeem shares of the Fund will be detrimental to the continuing operations
of the Fund.
◾
The
Fund generally invests in short duration liquid investment grade municipal securities.
Excessive
trading activity in the Fund’s shares may cause the Fund to incur
increased brokerage and administrative costs. The Fund and its agent reserve the right at any time to reject or cancel any part of any
purchase order. This could occur if the Fund determines that such purchase may disrupt the Fund’s operation or performance.
Trade
Activity Monitoring
Invesco
Affiliates monitor selected trades on a daily basis in an effort to detect excessive short-term trading activities. If, as a result of
this monitoring, Invesco Affiliates believe that a shareholder has engaged in excessive short-term trading, they will seek to act in a
manner that they believe is consistent with the best interests of long-term investors, which may include taking steps such as (i) asking
the shareholder to take action to stop such activities or (ii) refusing to process future purchases or exchanges related to such activities
in the shareholder’s accounts other than exchanges into a money market fund. Invesco Affiliates will use reasonable efforts to apply
the Funds’ policies uniformly given the practical limitations described above.
The
ability of Invesco Affiliates to monitor trades that are made through accounts
that are maintained by intermediaries (rather than the Funds’ transfer agent) and through conduit investment vehicles may be limited
or non-existent.
Discretion
to Reject Orders
If
a Fund or an Invesco Affiliate determines, in its sole discretion, that your short-term trading activity is excessive, the Fund may, in
its sole discretion, reject any additional purchase and exchange orders. This discretion may be exercised with respect to purchase or
exchange orders placed directly with the Funds’ transfer agent or through a financial intermediary.
Purchase
Blocking Policy
The
Funds (except those listed below) have adopted a policy under which any shareholder redeeming shares having a value of $50,000 or more
from a Fund on any trading day will be precluded from investing in that Fund for 30 calendar days after the redemption transaction date.
The policy applies to redemptions and purchases that are part of exchange transactions. Under the purchase blocking policy, certain purchases
will not be prevented and certain redemptions will not trigger a purchase block, such as: purchases
and redemptions
of shares having a value of less than $50,000; systematic purchase, redemption and exchange account options; transfers of shares within
the same Fund; non-discretionary rebalancing in fund-of-funds; asset allocation features; fee-based accounts; account maintenance fees;
small balance account fees; plan-level omnibus Retirement and Benefit Plans; death and disability and hardship distributions; loan transactions;
transfers of assets; Retirement and Benefit Plan rollovers; IRA conversions and re-characterizations; and mandatory distributions from
Retirement and Benefit Plans.
The
Funds reserve the right to modify any of the parameters (including those
not listed above) of the purchase blocking policy at any time. Further, the purchase blocking policy may be waived with respect to specific
shareholder accounts in those instances where the Adviser determines that its surveillance procedures are adequate to detect frequent
trading in Fund shares.
If
an account is maintained by a financial intermediary whose systems are
unable to apply Invesco’s purchase blocking policy, the Adviser will accept the establishment of an account only if the Adviser
believes the policies and procedures are reasonably designed to enforce the frequent trading policies of the Funds. You should refer to
disclosures provided by the financial intermediary with which you have an account to determine the specific trading restrictions that
apply to you. If the Adviser identifies any activity that may constitute frequent trading, it reserves the right to contact the intermediary
and request that the intermediary either provide information regarding an account owner’s transactions or restrict the account owner’s
trading. There is no guarantee that all instances of frequent trading in Fund shares will be prevented.
The
purchase blocking policy does not apply to Invesco Conservative Income
Fund, Invesco Short Term Municipal Fund, Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government
Money Portfolio and Invesco U.S. Government Money Portfolio.
Pricing
of Shares
Determination
of Net Asset Value
The
price of each Fund’s shares is the Fund’s net asset value per share. The Funds (except Invesco Government Money Market Fund,
Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio) value portfolio
securities for which market quotations are readily available at market value. Securities and other assets quoted in foreign currencies
are valued in U.S. dollars based on the prevailing exchange rates on that day. The Funds (except Invesco Government Money Market Fund,
Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio) value securities
and assets for which market quotations are unavailable at their “fair value,” which is described below. Invesco Government
Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio
value portfolio securities on the basis of amortized cost, which approximates market value. This method of valuation is designed to enable
a Fund to price its shares at $1.00 per share. The Funds cannot guarantee their net asset value will always remain at $1.00 per share.
Securities and other assets quoted in foreign currencies are valued in U.S. dollars based on the prevailing exchange rates on that day.
The Fund values securities and assets for which market quotations are unavailable at their “fair value,” which is described
below.
Even
when market quotations are available, they may be stale or not
representative of market value in the Adviser’s judgment (“unreliable”)
because the security is not traded frequently, trading on the security
ceased before the close of the trading market or issuer specific events occurred after the security ceased trading or because of the passage
of time between the close of the market on which the security trades and the close of the NYSE and when the Fund calculates its net asset
value. Issuer specific events may cause the last market quotation to be unreliable. Such events may include a merger or insolvency, events
that affect a geographical area or an industry segment, such as political events or natural disasters, or market events, such as a significant
movement in the U.S. market. Where
A-18 The
Invesco Funds
the Adviser
determines that the closing price of the security is stale or unreliable, the Adviser will value the security at its fair value.
A
fair value price is an estimated price that requires consideration of all appropriate factors, including indications of fair value available
from pricing services. Fair value pricing involves judgment and a Fund that uses fair value methodologies may value securities higher
or lower than another Fund using market quotations or its own fair value methodologies to price the same securities. Investors who purchase
or redeem Fund shares on days when the Fund is holding fair-valued securities may receive a greater or lesser number of shares, or higher
or lower redemption proceeds, than they would have received if the Fund had not fair-valued the security or had used a different methodology.
The
Board has designated the Adviser to perform the daily determination
of fair value prices in accordance with Board approved
policies and related procedures,
subject to the Board’s oversight. Fair value pricing methods
and pricing services can change from time to time.
The
intended effect of applying fair value pricing is to compute an NAV that
accurately reflects the value of a Fund’s portfolio at the time that the NAV is calculated. An additional intended effect is to
discourage those seeking to take advantage of arbitrage opportunities resulting from “stale” prices and to mitigate the dilutive
impact of any such arbitrage. However, the application of fair value pricing cannot eliminate the possibility that arbitrage opportunities
will exist.
Specific
types of securities are valued as follows:
Senior
Secured Floating Rate Loans and Senior Secured Floating Rate Debt
Securities. Senior secured floating rate loans and senior secured
floating rate debt securities are fair valued using evaluated quotes provided by an independent pricing service. Evaluated quotes provided
by the pricing service may reflect appropriate factors such as market quotes, ratings, tranche type, industry, company performance, spread,
individual trading characteristics, institution-size trading in similar groups of securities and other market data.
Domestic
Exchange Traded Equity Securities. Market quotations are generally
available and reliable for domestic exchange traded equity securities. If market quotations are not available or are unreliable, the Adviser
will value the security at fair value in good faith using the valuation policy approved by the Board and related procedures.
Foreign
Securities. If market quotations are available and reliable for
foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign
securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular
security and the close of the customary trading session on the NYSE events occur that are significant and may make the closing price unreliable,
the Fund may fair value the security. If an issuer specific event has occurred that the Adviser determines, in its judgment, is likely
to have affected the closing price of a foreign security, it will price the security at fair value. The Adviser also relies on a screening
process from a pricing vendor to indicate the degree of certainty, based on historical data, that the closing price in the principal market
where a foreign security trades is not the current market value as of the close of the NYSE. For foreign securities where the Adviser
believes, at the approved degree of certainty, that the price is not reflective of current market value, the Adviser will use the indication
of fair value from the pricing service to determine the fair value of the security. The pricing vendor, pricing methodology or degree
of certainty may change from time to time.
Fund
securities primarily traded on foreign markets may trade on days that
are not business days of the Fund. Because the net asset value of Fund shares is determined only on business days of the Fund, the value
of the portfolio securities of a Fund that invests in foreign securities may change on days when you will not be able to purchase or redeem
shares of the Fund.
Fixed
Income Securities. Fixed income securities, such as government,
corporate, asset-backed and municipal bonds, convertible securities, including high yield or junk bonds, and loans, generally are valued
on the basis of prices provided by independent pricing services. Prices provided by the pricing services may be determined without exclusive
reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in
similar
groups of securities, developments related to special securities, dividend rate, maturity and other market data. Pricing services generally
value fixed income securities assuming orderly transactions of institutional round lot size, but a Fund may hold or transact in the same
securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Prices received from pricing
services are fair value prices. In addition, if the price provided by the pricing service and independent quoted prices are unreliable,
the Adviser will fair value the security using the valuation policy approved by the Board and related procedures.
Short-term
Securities. Invesco Government Money Market Fund, Invesco Premier
Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio value all their securities at amortized
cost. Invesco Limited Term Municipal Income Fund values variable rate securities that have an unconditional demand or put feature exercisable
within seven days or less at par, which reflects the market value of such securities.
Futures
and Options. Futures contracts are valued at the final settlement
price set by the exchange on which they are principally traded. U.S.
exchange-traded options are valued at the mean between the last
bid and asked prices from the exchange on which they principally trade. Non-U.S. exchange-traded options are valued at the final settlement
price set by
the exchange on which they trade. Options not listed on an exchange and swaps generally are valued using pricing provided from independent
pricing services.
Swap
Agreements. Swap Agreements are fair valued using an evaluated
quote provided by an independent pricing service. Evaluated quotes provided by the pricing service are based on a model that may include
end of day net present values, spreads, ratings, industry and company performance.
Open-end
Funds. If a Fund invests in other open-end funds, other than open-end
funds that are exchange traded, the investing Fund will calculate its net asset value using the net asset value of the underlying fund
in which it invests, and the prospectuses for such open-end funds explain the circumstances under which they will use fair value pricing
and the effects of using fair value pricing.
Each
Fund, except for Invesco Government Money Market Fund, Invesco Premier
Portfolio and Invesco Premier U.S. Government Money Portfolio, generally determines the net asset value of its shares on each day the
NYSE is open for trading (a business day) as of approximately 4:00 p.m. Eastern Time (the customary close of regular trading) or earlier
in the case of a scheduled early close. In the event of an unscheduled early close of the NYSE, each Fund, except for Invesco Government
Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio, generally still will determine the net
asset value of its shares as of 4:00 p.m. Eastern Time on that business day. Portfolio securities traded on the NYSE would be valued at
their closing prices unless the Adviser determines
that a “fair value” adjustment is appropriate due to subsequent events occurring after an early close consistent with the
valuation policy approved
by the Board and related procedures. Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government
Money Portfolio will generally determine the net asset value of their shares at 5:30 p.m. Eastern Time on each business day. A business
day for Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio is any day
that (1) both the Federal Reserve Bank of New York and a Fund’s custodian are open for business and (2) the primary trading markets
for the Fund’s portfolio instruments are open and the Fund’s management believes there is an adequate market to meet purchase
and redemption requests. Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money
Portfolio are authorized not to open for trading on a day that is otherwise a business day if the Securities Industry and Financial Markets
Association (SIFMA) recommends that government securities dealers not open for trading; any such day will not be considered a business
day. Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio, Invesco
U.S. Government Money Portfolio also may close early on a business day if SIFMA recommends that government securities dealers close early.
If
A-19 The
Invesco Funds
Invesco
Government Money Market Fund, Invesco Premier Portfolio or Invesco Premier U.S. Government Money Portfolio uses its discretion to
close early on a business day, the Fund will calculate its net asset value as of the time of such closing Invesco Premier Portfolio and
Invesco U.S. Government Money Portfolio are authorized to not open for trading on a day that is otherwise a business day if the NYSE recommends
that government securities dealers not open for trading; any such day will not be considered a business day. Invesco Premier Portfolio
also may close early on a business day if the NYSE recommends that government securities dealers close early.
For
financial reporting purposes and shareholder transactions on the last
day of the fiscal quarter, transactions are normally accounted for on a trade date basis. For purposes of executing shareholder transactions
in the normal course of business (other than shareholder transactions at a fiscal period-end), each Fund’s portfolio securities
transactions are recorded no later than the first business day following the trade date.
The
Invesco Advantage International Fund, Invesco Balanced-Risk Allocation
Fund, Invesco Balanced-Risk Commodity Strategy Fund, Invesco Fundamental Alternatives Fund, Invesco Global Allocation Fund, Invesco Global
Strategic Income Fund, Invesco Gold & Special Minerals Fund, Invesco High Yield Bond Factor Fund, Invesco International Bond Fund
and Invesco Macro Allocation Strategy Fund may each invest up to 25% of their total assets in shares of their respective subsidiaries
(the Subsidiaries). The Subsidiaries offer to redeem all or a portion of their shares at the current net asset value per share every regular
business day. The value of shares of the Subsidiaries will fluctuate with the value of the respective Subsidiary’s portfolio investments.
The Subsidiaries price their portfolio investments pursuant to the same pricing and valuation methodologies and procedures used by the
Funds, which require, among other things, that each of the Subsidiaries’ portfolio investments be marked-to-market (that is, the
value on each of the Subsidiaries’ books changes) each business day to reflect changes in the market value of the investment.
Each
Fund’s current net asset value per share is made available on the Funds’
website at www.invesco.com/us.
Fair
Value Pricing
Securities
owned by a Fund (except Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio
and Invesco U.S. Government Money Portfolio) are to be valued at current market value if market quotations are readily available. All
other securities and assets of a Fund for which market quotations are not readily available are to be valued at fair value determined
in good faith consistent with the valuation policy approved by the Board and related procedures. An effect of fair value pricing may be
to reduce the ability of frequent traders to take advantage of arbitrage opportunities resulting from potentially “stale”
prices of portfolio holdings. However, it cannot eliminate the possibility of frequent trading.
The
price a Fund could receive upon the sale of any investment may differ
from the Adviser's valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair
valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions
(i.e., publicly traded company multiples, growth rate, time to exit), to determine a methodology that will result in a valuation that
the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value
from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and
the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the
investment.
Timing
of Orders
Each
Fund prices purchase, exchange and redemption orders at the net asset value next calculated by the Fund after the Fund’s transfer
agent, authorized agent or designee receives an order in good order for the Fund. Purchase, exchange and redemption orders must be received
prior to the close of business on a business day, as defined by the applicable Fund, to receive that day’s net asset value. Any
applicable sales charges are applied at the time an order is processed.
Currently,
certain financial intermediaries may serve as agents for the Funds
and accept orders on their behalf. Where a financial intermediary serves as agent, the order is priced at the Fund’s net asset value
next calculated after it is accepted by the financial intermediary. In such cases, if requested by a Fund, the financial intermediary
is responsible for providing information with regard to the time that such order for purchase, redemption or exchange was received. Orders
submitted through a financial intermediary that has not received authorization to accept orders on a Fund’s behalf are priced at
the Fund’s net asset value next calculated by the Fund after it receives the order from the financial intermediary and accepts it,
which may not occur on the day submitted to the financial intermediary.
Additional
Information Regarding Deferred Tax Liability (only applicable to the Invesco Steelpath Funds)
In
calculating the Fund’s daily NAV, the Fund will, among other things, account for its deferred tax liability and/or asset balances.
As a result, any deferred tax liability and/or asset is reflected in the Fund’s daily NAV.
The
Fund will accrue a deferred income tax liability balance, at the U.S. federal
corporate income tax rate plus an estimated state and local income tax rate for its future tax liability associated with MLP distributions
considered to be a return of capital, as well as for its future tax liability associated with the capital appreciation of its investments.
The Fund’s current and deferred tax liability, if any, will depend upon the Fund’s net investment gains and losses and realized
and unrealized gains and losses on investments and therefore may vary greatly from year to year depending on the nature of the Fund’s
investments, the performance of those investments and general market conditions. Any deferred tax liability balance will reduce the Fund’s
NAV. Upon the Fund’s sale of an MLP security, the Fund may be liable for previously deferred taxes.
The
Fund will accrue, in accordance with generally accepted accounting principles,
a deferred tax asset balance, which reflects an estimate of the Fund’s future tax benefit associated with net operating losses and
unrealized losses. Any deferred tax asset balance will increase the Fund’s NAV. To the extent the Fund has a deferred tax asset
balance, the Fund will assess, in accordance with generally accepted accounting principles, whether a valuation allowance, which would
offset the value of some or all of the Fund’s deferred tax asset balance, is required. Pursuant to Financial Accounting Standards
Board Accounting Standards Codification 740 (FASB ASC 740), the Fund will assess a valuation allowance to reduce some or all of the deferred
tax asset balance if, based on the weight of all available evidence, both negative and positive, it is more likely than not that some
or all of the deferred tax asset will not be realized. The Fund will use judgment in considering the relative impact of negative and positive
evidence. The weight given to the potential effect of negative and positive evidence will be commensurate with the extent to which such
evidence can be objectively verified. The Fund’s assessment considers, among other matters, the nature, frequency and severity of
current and cumulative losses, the duration of statutory carry forward periods and the associated risk that operating loss and capital
loss carry forwards may be limited or expire unused, and unrealized gains and losses on investments. Consideration is also given to market
cycles, the severity and duration of historical deferred tax assets, the impact of redemptions, and the level of MLP distributions. The
Fund will assess whether a valuation allowance is required to offset some or all of any deferred tax asset in connection with the calculation
of the Fund’s NAV per share each day; however, to the extent the final valuation allowance differs from the estimates the Fund used
in calculating the Fund’s daily NAV, the application of such final valuation allowance could have a material impact on the Fund’s
NAV.
The
Fund’s deferred tax asset and/or liability balances are estimated using
estimates of effective tax rates expected to apply to taxable income in the years such balances are realized. The Fund will rely to some
extent on information provided by MLPs in determining the extent to which distributions received from MLPs constitute a return of capital,
which may not be provided to the Fund on a timely basis, to estimate the Fund’s deferred tax liability and/or asset balances for
purposes of financial statement reporting and determining its NAV. If such information is not
A-20 The
Invesco Funds
received
from such MLPs on a timely basis, the Fund will estimate the extent to which distributions received from MLPs constitute a return of capital
based on average historical tax characterization of distributions made by MLPs. The Fund’s estimates regarding its deferred tax
liability and/or asset balances are made in good faith; however, the daily estimate of the Fund’s deferred tax liability and/or
asset balances used to calculate the Fund’s NAV could vary dramatically from the Fund’s actual tax liability. Actual income
tax expense, if any, will be incurred over many years, depending on if and when investment gains and losses are realized, the then-current
basis of the Fund’s assets and other factors. As a result, the determination of the Fund’s actual tax liability may have a
material impact on the Fund’s NAV. The Fund’s daily NAV calculation will be based on then current estimates and assumptions
regarding the Fund’s deferred tax liability and/or asset balances and any applicable valuation allowance, based on all information
available to the Fund at such time. From time to time, the Fund may modify its estimates or assumptions regarding its deferred tax liability
and/or asset balances and any applicable valuation allowance as new information becomes available. Modifications of the Fund’s estimates
or assumptions regarding its deferred tax liability and/or asset balances and any applicable valuation allowance, changes in generally
accepted accounting principles or related guidance or interpretations thereof, limitations imposed on net operating losses (if any) and
changes in applicable tax law could result in increases or decreases in the Fund’s NAV per share, which could be material.
Taxes
(applicable to all Funds except for the Invesco SteelPath Funds and Invesco Master Loan Fund)
A
Fund intends to qualify each year as a regulated investment company (RIC) and, as such, is not subject to entity-level tax on the income
and gain it distributes to shareholders. If you are a taxable investor, dividends and distributions you receive from a Fund generally
are taxable to you whether you reinvest distributions in additional Fund shares or take them in cash. Every year, you will be sent information
showing the amount of dividends and distributions you received from a Fund during the prior calendar year. In addition, investors in taxable
accounts should be aware of the following basic tax points as supplemented below where relevant:
Fund Tax
Basics
◾
A
Fund earns income generally in the form of dividends or interest on its investments. This income, less expenses incurred in the operation
of a Fund, constitutes the Fund’s net investment income from which dividends may be paid to you. If you are a taxable investor,
distributions of net investment income generally are taxable to you as ordinary income.
◾
Distributions
of net short-term capital gains are taxable to you as ordinary income. A Fund with a high portfolio turnover rate (a measure of how frequently
assets within a Fund are bought and sold) is more likely to generate short-term capital gains than a Fund with a low portfolio turnover
rate.
◾
Distributions
of net long-term capital gains are taxable to you as long-term capital gains no matter how long you have owned your Fund shares.
◾
A
portion of income dividends paid by a Fund to you may be reported as qualified dividend income eligible for taxation by individual shareholders
at long-term capital gain rates, provided certain holding period requirements are met. These reduced rates generally are available for
dividends derived from a Fund’s investment in stocks of domestic corporations and qualified foreign corporations. In the case of
a Fund that invests primarily in debt securities, either none or only a nominal portion of the dividends paid by the Fund will be eligible
for taxation at these reduced rates.
◾
The
use of derivatives by a Fund may cause the Fund to realize higher amounts of ordinary income or short-term capital gain, distributions
from which are taxable to individual shareholders at ordinary income tax rates rather than at the more favorable tax rates for long-term
capital gain.
◾
Distributions
declared to shareholders with a record date in October, November or December—if paid to you by the end of January—are taxable
for federal income tax purposes as if received in December.
◾
Any
long-term or short-term capital gains realized on the sale or redemption of your Fund shares will be subject to federal income tax. For
tax
purposes an exchange of your shares for shares of another Fund is the same as a sale. An exchange occurs when the purchase of shares of
a Fund is made using the proceeds from a redemption of shares of another Fund and is effectuated on the same day as the redemption. Your
gain or loss is calculated by subtracting from the gross proceeds your cost basis. Gross proceeds and, for shares acquired on or after
January 1, 2012 and disposed of after that date, cost basis will be reported to you and the Internal Revenue Service (IRS). Cost
basis will be calculated using the Fund’s default method of average cost, unless you instruct the Fund to use a different calculation
method. As a service to you, the Fund will continue to provide to you (but not the IRS) cost basis information for shares acquired before
2012, when available, using the average cost method. Shareholders should carefully review the cost basis information provided by a Fund
and make any additional basis, holding period or other adjustments that are required when reporting these amounts on their federal income
tax returns. If you hold your Fund shares through a broker (or other nominee), please contact that broker (nominee) with respect to reporting
of cost basis and available elections for your account. For more information about the cost basis methods offered by Invesco, please refer
to the Tax Center located under the Account Access & Forms menu of our website at www.Invesco.com/us.
◾
The
conversion of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes
and no gain or loss will be reported on the transaction. This is true whether the conversion occurs automatically pursuant to the terms
of the class or is initiated by the shareholder.
◾
At
the time you purchase your Fund shares, the Fund’s net asset value may reflect undistributed income or undistributed capital gains.
A subsequent distribution to you of such amounts, although constituting a return of your investment, would be taxable. Buying shares in
a Fund just before it declares an income dividend or capital gains distribution is sometimes known as “buying a dividend.”
In addition, a Fund’s net asset value may, at any time, reflect net unrealized appreciation, which may result in future taxable
distributions to you.
◾
By
law, if you do not provide a Fund with your proper taxpayer identification number and certain required certifications, you may be subject
to backup withholding on any distributions of income, capital gains, or proceeds from the sale of your shares. A Fund also must withhold
if the IRS instructs it to do so. When withholding is required, the amount will be 24% of any distributions or proceeds paid.
◾
An
additional 3.8% Medicare tax is imposed on certain net investment income (including ordinary dividends and capital gain distributions
received from a Fund and net gains from redemptions or other taxable dispositions of Fund shares) of U.S. individuals, estates and trusts
to the extent that such person’s “modified adjusted gross income” (in the case of an individual) or “adjusted
gross income” (in the case of an estate or trust) exceeds a threshold amount. This Medicare tax, if applicable, is reported by you
on, and paid with, your federal income tax return.
◾
You
will not be required to include the portion of dividends paid by a Fund derived from interest on U.S. government obligations in your
gross income for purposes of personal and, in some cases, corporate income taxes in many state and local tax jurisdictions. The percentage
of dividends that constitutes dividends derived from interest on federal obligations will be determined annually. This percentage may
differ from the actual percentage of interest received by the Fund on federal obligations for the particular days on which you hold shares.
◾
Fund
distributions and gains from sale or exchange of your Fund shares generally are subject to state and local income taxes.
◾
If
a Fund qualifies to pass through to you the tax benefits from foreign taxes it pays on its investments, and elects to do so, then any
foreign taxes it pays on these investments may be passed through to you. You will then be required to include your pro-rata share of these
taxes in gross income, even though not actually received by you, and will be entitled either to deduct your share of these taxes in computing
your taxable income, or to claim a foreign tax credit for these taxes against your U.S. federal income tax.
A-21 The
Invesco Funds
◾
Foreign
investors should be aware that U.S. withholding, special certification requirements to avoid U.S. backup withholding and claim
any treaty benefits, and estate taxes may apply to an investment in a Fund.
◾
Under
the Foreign Account Tax Compliance Act (FATCA), a Fund will be required to withhold a 30% tax on income dividends made by the Fund to
certain foreign entities, referred to as foreign financial institutions or non-financial foreign entities, that fail to comply (or be
deemed compliant) with extensive reporting and withholding requirements designed to inform the U.S. Department of the Treasury of U.S.-owned
foreign investment accounts. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide otherwise (which
is not expected). A Fund may disclose the information that it receives from its shareholders to the IRS, non-U.S. taxing authorities or
other parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that is a shareholder
of a Fund fails to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.
◾
If
a Fund invests in an underlying fund taxed as a RIC, please see any relevant section below for more information regarding the Fund’s
investment in such underlying fund.
The
above discussion concerning the taxability of Fund dividends and distributions and of redemptions and exchanges of Fund shares is inapplicable
to investors holding shares through a tax-advantaged arrangement, such as Retirement and Benefit Plans or 529 college savings plans. Such
investors should refer to the applicable account documents/program description for that arrangement for more information regarding the
tax consequences of holding and redeeming Fund shares.
Funds
Investing in Municipal Securities
◾
You
will not be required to include the “exempt-interest” portion of dividends paid by the Fund in either your gross income for
federal income tax purposes or your net investment income subject to the additional 3.8% Medicare tax. You will be required to report
the receipt of exempt-interest dividends and other tax-exempt interest on your federal income tax returns. The percentage of dividends
that constitutes exempt-interest dividends will be determined annually. This percentage may differ from the actual percentage of exempt
interest received by the Fund for the particular days in which you hold shares.
◾
A
Fund may invest in municipal securities the interest on which constitutes an item of tax preference and could give rise to a federal alternative
minimum tax liability for noncorporate shareholders, unless such municipal securities were issued in 2009 or 2010.
◾
Exempt-interest
dividends from interest earned on municipal securities of a state, or its political subdivisions, generally are exempt from that state’s
personal income tax. Most states, however, do not grant tax-free treatment to interest from municipal securities of other states.
◾
A
Fund may invest a portion of its assets in securities that pay income that is not tax-exempt. To the extent that dividends paid by a Fund
are derived from taxable investments or realized capital gains, they will be taxable as ordinary income or long-term capital gains.
◾
A
Fund may distribute to you any market discount and net short-term capital gains from the sale of its portfolio securities. If you are
a taxable investor, Fund distributions from this income are taxable to you as ordinary income, and generally will neither qualify for
the dividends-received deduction in the case of corporate shareholders nor as qualified dividend income subject to reduced rates of taxation
in the case of noncorporate shareholders.
◾
Exempt-interest
dividends from a Fund are taken into account when determining the taxable portion of your social security or railroad retirement benefits,
may be subject to state and local income taxes, may affect the deductibility of interest on certain indebtedness, and may have other collateral
federal income tax consequences for you.
◾
There
are risks that: (a) a security issued as tax-exempt may be reclassified by the IRS or a state tax authority as taxable and/or (b) future
legislative,
administrative or court actions could adversely impact the qualification of income from a tax-exempt security as tax-free. Such reclassifications
or actions could cause interest from a security to become taxable, possibly retroactively, subjecting you to increased tax liability.
In addition, such reclassifications or actions could cause the value of a security, and therefore, the value of the Fund’s shares,
to decline.
Money
Market Funds
◾
A
Fund does not anticipate realizing any long-term capital gains.
◾
If
a Fund expects to maintain a stable net asset value of $1.00 per share, investors should not have any gain or loss on sale or exchange
of Fund shares (unless the investor incurs a liquidity fee on such sale or exchange). See “Liquidity Fees and Redemption Gates.”
◾
There
is some degree of uncertainty with respect to the tax treatment of liquidity fees received by a Fund, and such tax treatment may be the
subject of future IRS guidance. If a Fund receives liquidity fees, it will consider the appropriate tax treatment of such fees to the
Fund at such time.
◾
Unless
you choose to adopt a simplified “NAV method” of accounting (described below), any capital gain or loss on the sale or exchange
of Fund shares (as noted above) generally will be treated either as short-term if you held your Fund shares for one year or less, or long-term
if you held your Fund shares longer. If you elect to adopt the NAV method of accounting, rather than computing gain or loss on every taxable
disposition of Fund shares as described above, you would determine your gain or loss based on the change in the aggregate value of your
Fund shares during a computation period (such as your taxable year), reduced by your net investment (purchases minus sales) in those shares
during that period. Under the NAV method, any resulting net capital gain or loss would be treated as short-term capital gain or loss.
Funds
Investing in Real Estate Securities
◾
Because
of “noncash” expenses such as property depreciation, the cash flow of a REIT that owns properties will exceed its taxable
income. The REIT, and in turn a Fund, may distribute this excess cash to shareholders. Such a distribution is classified as a return of
capital. Return of capital distributions generally are not taxable to you. Your cost basis in your Fund shares will be decreased by the
amount of any return of capital. Any return of capital distributions in excess of your cost basis will be treated as capital gains.
◾
Dividends
paid to shareholders from the Funds’ investments in U.S. REITs generally will not qualify for taxation at long-term capital gain
rates applicable to qualified dividend income.
◾
The
Fund may derive “excess inclusion income” from certain equity interests in mortgage pooling vehicles either directly or through
an investment in a U.S. REIT. Please see the SAI for a discussion of the risks and special tax consequences to shareholders in the event
the Fund realizes excess inclusion income in excess of certain threshold amounts.
◾
Under
the Tax Cuts and Jobs Act, “qualified REIT dividends” (i.e., ordinary REIT dividends other than capital gain dividends and
portions of REIT dividends designated as qualified dividend income) are treated as eligible for a 20% deduction by noncorporate taxpayers.
The Fund may choose to report the special character of “qualified REIT dividends” to a shareholder, provided both the Fund
and a shareholder meet certain holding period requirements with respect to their shares.
◾
The
Fund’s foreign shareholders should see the SAI for a discussion of the risks and special tax consequences to them from a sale of
a U.S. real property interest by a REIT in which the Fund invests.
Funds
Investing in Partnerships
◾
Taxes,
penalties, and interest associated with an audit of a partnership
are generally required to be assessed and collected at the partnership level. Therefore, an adverse federal income tax audit of a partnership
that a Fund invests in (including MLPs taxed as partnerships) could result in the Fund being required to pay federal income tax. A Fund
may have little input in any audit asserted against a partnership and may be contractually or legally obligated to make payments in regard
to deficiencies asserted without the ability to put forward an independent defense. Accordingly,
A-22 The
Invesco Funds
even
if a partnership in which the Fund invests were to remain classified as a partnership (instead of as a corporation), it could be required
to pay additional taxes, interest and penalties as a result of an audit adjustment, and the Fund, as a direct or indirect partner of such
partnership, could be required to bear the economic burden of those taxes, interest and penalties, which would reduce the value of Fund
shares.
◾
Under
the Tax Cuts and Jobs Act “qualified publicly traded partnership income” is treated as eligible for a 20% deduction by noncorporate
taxpayers. The legislation does not contain a provision permitting a RIC, such as a Fund, to pass the special character of this income
through to its shareholders. It is uncertain whether a future technical corrections bill or regulations issued by the IRS will address
this issue to enable a Fund to pass through the special character of “qualified publicly traded partnership income” to its
shareholders.
◾
Some
amounts received by a Fund from the MLPs in which it invests likely will be treated as returns of capital to such Fund because of accelerated
deductions available to the MLPs. The receipt of returns of capital from the MLPs in which a Fund invests could cause some or all of the
Fund’s distributions to be classified as a return of capital. Return of capital distributions generally are not taxable to you.
Your cost basis in your Fund shares will be decreased by the amount of any return of capital. Any return of capital distributions in excess
of your cost basis will be treated as capital gains.
Funds
Investing in Commodities
◾
The
Funds’ strategies of investing through their respective Subsidiary in derivatives and other financially linked instruments whose
performance is expected to correspond to the commodity markets may cause the Funds to recognize more ordinary income and short-term capital
gains taxable as ordinary income than would be the case if the Funds invested directly in commodities.
◾
The
Funds must meet certain requirements under the Code for favorable tax treatment as a RIC, including asset diversification and income requirements.
The IRS has issued a revenue ruling which holds that income derived from commodity-linked swaps is not qualifying income for purposes
of the Income Requirement. In a subsequent revenue ruling, as well as in a number of follow-on private letter rulings (upon which only
the fund that received the private letter ruling may rely), the IRS provides that income from certain alternative investments which create
commodity exposure, such as certain commodity-linked or structured notes or a corporate subsidiary that invests in commodities, may be
considered qualifying income under the Code. However, the portion of such rulings relating to the treatment of a corporation as a regulated
investment company that require a determination of whether a financial instrument or position is a security under section 2(a)(36) of
the 1940 Act was revoked because of changes in the IRS’s position.
(A financial instrument or position that constitutes a security
under section 2(a)(36) of the 1940 Act generates qualifying income for a corporation taxed as a regulated investment company.) The Funds
intend to treat the income each derives from commodity-linked notes as qualifying income based on an opinion from counsel confirming that
income from such investments should be qualifying income because such commodity-linked notes constitute securities under section 2(a)(36)
of the 1940 Act. Each Subsidiary will be classified for federal income tax purposes as a controlled foreign corporation (CFC) with respect
to the Fund. As such, the Fund will be required to include in its gross income each year amounts earned by the Subsidiary during that
year (“Subpart F” income), whether or not such earnings are distributed by the Subsidiary to the Fund (deemed inclusions).
Treasury Regulations also permit the Fund to treat such deemed inclusions of “Subpart F” income from the Subsidiary as qualifying
income to the Fund, even if the Subsidiary does not make a distribution of such income. Consequently, the Fund and the Subsidiary reserve
the right to rely on deemed inclusions being treated as qualifying income to the Fund consistent with recently released Treasury Regulations.
If, contrary to the opinion of counsel or other guidance issued by the IRS, the IRS were to determine that income from direct investment
in commodity-linked notes is non-qualifying, a Fund might fail to satisfy
the
income requirement. In lieu of disqualification, the Funds are permitted to pay a tax for certain failures to satisfy the asset diversification
or income requirements, which, in general, are limited to those due to reasonable cause and not willful neglect. The Funds intend to limit
their investments in their respective Subsidiary to no more than 25% of the value of each Fund’s total assets in order to satisfy
the asset diversification requirement.
Funds
Investing in Foreign Currencies
◾
The
Funds may realize gains from the sale or other disposition of foreign currencies (including but not limited to gains from options, futures
or forward contracts) derived from investing in securities or foreign currencies. The U.S. Treasury Department is authorized to issue
regulations on whether the realization of such foreign currency gains is qualified income for the Funds. If such regulations are issued,
each Fund may not qualify as a RIC and/or the Fund may change its investment policy. As of the date of this prospectus, no regulations
have been issued pursuant to this authorization. It is possible, however, that such regulations may be issued in the future. Additionally,
the IRS has not issued any guidance on how to apply the asset diversification test to such foreign currency positions. Thus, the IRS’
determination as to how to treat such foreign currency positions for purposes of satisfying the asset diversification test might differ
from that of each Fund resulting in the Fund’s failure to qualify as a RIC. In lieu of disqualification, each Fund is permitted
to pay a tax for certain failures to satisfy the asset diversification or income requirements, which, in general, are limited to those
due to reasonable cause and not willful neglect.
◾
The
Funds’ transactions in foreign currencies may give rise to ordinary income or loss to the extent such income or loss results from
fluctuations in the value of the foreign currency concerned. This treatment could increase or decrease the Funds' ordinary income distributions
to you, and may cause some or all of the Funds' previously distributed income to be classified as a return of capital. Return of capital
distributions generally are not taxable to you. Your cost basis in your Fund shares will be decreased by the amount of any return of capital.
Any return of capital distributions in excess of your cost basis will be treated as capital gains.
This
discussion of “Taxes” is for general information only and not
tax advice. All investors should consult their own tax advisers as to the federal, state, local and foreign tax provisions applicable
to them.
Taxes
(applicable to the Invesco SteelPath Funds
only)
Although
the Code generally provides that a RIC does not pay an entity-level income tax, provided that it distributes all or substantially all
of its income, the Fund is not and does not anticipate becoming eligible to elect to be treated as a RIC because most or substantially
all of the Fund’s investments will consist of investments in MLP securities. The RIC tax rules therefore have no application to
the Fund or to its shareholders. As a result, the Fund is treated as a regular corporation, or “C” corporation, for U.S. federal
income tax purposes, and generally is subject to U.S. federal income tax on its taxable income at the corporate income tax rate. In addition,
as a regular corporation, the Fund will be subject to state and local taxes by reason of its tax status and its investments in MLPs. Therefore,
the Fund may have to pay federal, multiple state, and local taxes, which would reduce the Fund’s cash available to make distributions
to shareholders. An estimate for federal, state, and local tax liabilities will reduce the fund’s net asset value. The extent to
which the Fund is required to pay U.S. federal, state or local corporate income, franchise or other corporate taxes could materially reduce
the Fund’s cash available to make distributions to shareholders. In addition, investors in taxable accounts should be aware of the
following basic tax points as supplemented below where relevant:
Fund
Tax Basics
◾
The
Fund intends to invest a significant portion of its assets in MLPs, which are generally treated as partnerships for U.S. federal income
tax purposes. To the extent that the Fund invests in equity securities of an MLP, the Fund will be a partner in such MLP. Accordingly,
the Fund will be
A-23 The
Invesco Funds
required
to take into account the Fund’s allocable share of the income, gains, losses, deductions, and credits recognized by each such MLP,
regardless of whether the MLP distributes cash to the Fund. MLP distributions to partners, such as the Fund, are not taxable unless the
cash amount (or in certain cases, the fair market value of marketable securities) distributed exceeds the Fund’s basis in its MLP
interest. The Fund expects that the cash distributions it will receive with respect to its investments in equity securities of MLPs will
exceed the net taxable income allocated to the Fund from such MLPs because of tax deductions such as depreciation, amortization and depletion
that will be allocated to the Fund from the MLPs. No assurance, however, can be given in this regard. If this expectation is not realized,
the Fund will have a larger corporate income tax expense than expected, which will result in less cash available for distribution to shareholders.
◾
The
Fund will recognize gain or loss on the sale, exchange or other taxable disposition of its portfolio assets, including equity securities
of MLPs, equal to the difference between the amount realized by the Fund on the sale, exchange or other taxable disposition and the Fund’s
adjusted tax basis in such assets. Any such gain will be subject to U.S. federal income tax at the corporate income tax rate, regardless
of how long the Fund has held such assets since preferential capital gain rates do not apply to regular corporations such as the Fund.
The amount realized by the Fund in any case generally will be the amount paid by the purchaser of the assets plus, in the case of MLP
equity securities, the Fund’s allocable share, if any, of the MLP’s debt that will be allocated to the purchaser as a result
of the sale, exchange or other taxable disposition. The Fund’s tax basis in its equity securities in an MLP generally is equal to
the amount the Fund paid for the equity securities, (i) increased by the Fund’s allocable share of the MLP’s net taxable income
and certain MLP debt, if any, and (ii) decreased by the Fund’s allocable share of the MLP’s net losses and any distributions
received by the Fund from the MLP. Although any distribution by an MLP to the Fund in excess of the Fund’s allocable share of such
MLP’s net taxable income may create a temporary economic benefit to the Fund, net of a deferred tax liability, such distribution
will decrease the Fund’s tax basis in its MLP investment and will therefore increase the amount of gain (or decrease the amount
of loss) that will be recognized on the sale of an equity security in the MLP by the Fund. To the extent that the Fund has a net capital
loss in any year, the net capital loss can be carried back three taxable years and forward five taxable years to reduce the Fund’s
capital gains in such years. In the event a capital loss carryover cannot be utilized in the carryover periods, the Fund’s federal
income tax liability may be higher than expected, which will result in less cash available to distribute to shareholders.
◾
Distributions
by the Fund of cash or property in respect of the shares (other than certain distributions in redemption of shares) will be treated as
dividends for U.S. federal income tax purposes to the extent paid from the Fund’s current or accumulated earnings and profits (as
determined under U.S. federal income tax principles). Generally, the Fund’s earnings and profits are computed based upon the Fund’s
taxable income (loss), with certain specified adjustments. Any such dividend likely will be eligible for the dividends-received deduction
if received by an otherwise qualifying corporate U.S. shareholder that meets certain holding period and other requirements for the dividends-received
deduction. Dividends paid by the Fund to certain non-corporate U.S. shareholders (including individuals), generally are eligible for U.S.
federal income taxation at the rates generally applicable to long-term capital gains for individuals provided that the U.S. shareholder
receiving the dividend satisfies applicable holding period and other requirements. Otherwise, dividends paid by the Fund to non-corporate
U.S. Shareholders (including individuals) will be taxable at ordinary income rates.
◾
If
the amount of a Fund distribution exceeds the Fund’s current and accumulated earnings and profits, such excess will be treated first
as a tax-deferred return of capital to the extent of, and in reduction of, a shareholder’s tax basis in the shares, and thereafter
as capital gain to the extent the shareholder held the shares as a capital asset. Any such capital gain will be long-term capital gain
if such shareholder has held the applicable shares for more than one year. The portion of the distribution
received
by a shareholder from the Fund that is treated as a return of capital will decrease the shareholder’s tax basis in his or her Fund
shares (but not below zero), which will result in an increase in the amount of gain (or decrease in the amount of loss) that will be recognized
by the shareholder for tax purposes on the later sale of such Fund shares.
◾
The
Fund anticipates that the cash distributions it will receive with respect to its investments in equity securities of MLPs and which it
will distribute to its shareholders will exceed the Fund’s current and accumulated earnings and profits. Accordingly, the Fund expects
that only a part of its distributions to shareholders with respect to the shares will be treated as dividends for U.S. federal income
tax purposes. No assurance, however, can be given in this regard.
◾
Special
rules may apply to the calculation of the Fund’s earnings and profits. For example, the Fund’s earnings and profits will be
calculated using the straight-line depreciation method rather than the accelerated depreciation method. This difference in treatment may,
for example, result in the Fund’s earnings and profits being higher than the Fund’s taxable income or loss in a particular
year if the MLPs in which the Fund invests calculate their income using accelerated depreciation. Because of these special earnings profits
rules, the Fund may make distributions in a particular year out of earnings and profits (treated as dividends) in excess of the amount
of the Fund’s taxable income or loss for such year, which means that a larger percentage of the Fund ’s distributions could
be taxable to shareholders as ordinary income instead of tax-deferred return of capital or capital gain.
◾
Shareholders
that receive distributions in shares rather than in cash will be treated for U.S. federal income tax purposes as having (i) received a
cash distribution equal to the fair market value of the shares received and (ii) reinvested such amount in shares.
◾
A
redemption of shares will be treated as a sale or exchange of such shares, provided the redemption is not essentially equivalent to a
dividend, is a substantially disproportionate redemption, is a complete redemption of a shareholder’s entire interest in the Fund,
or is in partial liquidation of such Fund. Redemptions that do not qualify for sale or exchange treatment will be treated as distributions
as described above. Upon a redemption treated as a sale or exchange under these rules, a shareholder generally will recognize capital
gain or loss equal to the difference between the adjusted tax basis of his or her shares and the amount received when they are sold.
◾
If
the Fund is required to sell portfolio securities to meet redemption requests, the Fund may recognize income and gains for U.S. federal,
state and local income and other tax purposes, which may result in the imposition of corporate income or other taxes on the Fund and may
increase the Fund’s current and accumulated earnings and profits, which will result in a greater portion of distributions to Fund
shareholders being treated as dividends. Any long-term or short-term capital gains realized on sale or redemption of your Fund shares
will be subject to federal income tax. For tax purposes an exchange of your shares for shares of another Fund is the same as a sale. An
exchange occurs when the purchase of shares of a Fund is made using the proceeds from a redemption of shares of another Fund and is effectuated
on the same day as the redemption. Your gain or loss is calculated by subtracting from the gross proceeds your cost basis. Gross proceeds
and, for shares acquired on or after January 1, 2012 and disposed of after that date, cost basis will be reported to you and the IRS.
Cost basis will be calculated using the Fund’s default method of first-in, first-out (FIFO), unless you instruct the Fund to use
a different calculation method. Shareholders should carefully review the cost basis information provided by a Fund and make any additional
basis, holding period or other adjustments that are required when reporting these amounts on their federal income tax returns. If you
hold your Fund shares through a broker (or other nominee), please contact that broker (nominee) with respect to reporting of cost basis
and available elections for your account. For more information about the cost basis methods offered by Invesco, please refer to the Tax
Center located under the Account Access & Forms menu of our website at www.invesco.com/us.
A-24 The
Invesco Funds
◾
The
conversion of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes
and no gain or loss will be reported on the transaction. This is true whether the conversion occurs automatically pursuant to the terms
of the class or is initiated by the shareholder.
◾
At
the time you purchase your Fund shares, the Fund’s net asset value may reflect undistributed income. A subsequent distribution to
you of such amounts, although constituting a return of your investment, would be taxable. Buying shares in a Fund just before it declares
an income dividend is sometimes known as “buying a dividend.” In addition, a Fund’s net asset value may, at any time,
reflect net unrealized appreciation, which may result in future taxable distributions to you.
◾
By
law, if you do not provide a Fund with your proper taxpayer identification number and certain required certifications, you may be subject
to backup withholding on any distributions of income, capital gains, or proceeds from the sale of your shares. A Fund also must withhold
if the IRS instructs it to do so. When withholding is required, the amount will be 24% of any distributions or proceeds paid.
◾
A
3.8% Medicare tax is imposed on certain net investment income (including ordinary dividends received from a Fund and net gains from redemptions
or other taxable dispositions of Fund shares) of U.S. individuals, estates and trusts to the extent that such person’s “modified
adjusted gross income” (in the case of an individual) or “adjusted gross income” (in the case of an estate or trust)
exceeds a threshold amount. This Medicare tax, if applicable, is reported by you on, and paid with, your federal income tax return.
◾
Fund
distributions and gains from sale or exchange of your Fund shares generally are subject to state and local income taxes.
◾
Foreign
investors should be aware that U.S. withholding, special certification requirements to avoid U.S. backup withholding and claim any treaty
benefits, and estate taxes may apply to an investment in a Fund.
◾
Under
the Foreign Account Tax Compliance Act (FATCA), a Fund will be required to withhold a 30% tax on income dividends made by the Fund to
certain foreign entities, referred to as foreign financial institutions or non-financial foreign entities, that fail to comply (or be
deemed compliant) with extensive reporting and withholding requirements designed to inform the U.S. Department of the Treasury of U.S.-owned
foreign investment accounts. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide otherwise (which
is not expected). A Fund may disclose the information that it receives from its shareholders to the IRS, non-U.S. taxing authorities or
other parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that is a shareholder
of a Fund fails to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.
◾
Taxes,
penalties, and interest associated with an audit of a partnership are generally required to be assessed and collected at the partnership
level. Therefore, an adverse federal income tax audit of an MLP taxed as a partnership that the Fund invests in could result in the Fund
being required to pay federal income tax. The Fund may have little input in any audit asserted against an MLP and may be contractually
or legally obligated to make payments in regard to deficiencies asserted without the ability to put forward an independent defense. Accordingly,
even if an MLP in which the Fund invests were to remain classified as a partnership, it could be required to pay additional taxes, interest
and penalties as a result of an audit adjustment, and the Fund, as a direct or indirect partner of such MLP, could be required to bear
the economic burden of those taxes, interest and penalties, which would reduce the value of Fund shares.
◾
Under
the Tax Cuts and Jobs Act certain “qualified publicly traded partnership income” (e.g., certain income from certain of the
MLPs in which the Fund invests) is treated as eligible for a 20% deduction by noncorporate taxpayers. The Tax Cuts and Jobs Act does not
contain a provision permitting an entity, such as the Fund, to benefit from this
deduction
(since the Fund is taxed as a “C” corporation) or pass the special character of this income through to its shareholders. Qualified
publicly traded partnership income allocated to a noncorporate investor investing directly in an MLP might, however, be eligible for the
deduction.
The
above discussion concerning the taxability of Fund dividends and distributions
and of redemptions and exchanges of Fund shares is inapplicable to investors holding shares through a tax-advantaged arrangement, such
as Retirement and Benefit Plans or 529 college savings plans. Such investors should refer to the applicable account documents/program
description for that arrangement for more information regarding the tax consequences of holding and redeeming Fund shares.
This
discussion of “Taxes” is for general information only and not
tax advice. All investors should consult their own tax advisers as to the federal, state, local and foreign tax provisions applicable
to them.
Federal
Income Taxes (applicable to Invesco Master Loan Fund only)
United
States Taxes
The
Fund is classified as a partnership and will not be a regulated investment company for US federal income tax purposes. As a partnership,
the Fund is not a taxable entity for federal income tax purposes and, subject to the application of the partnership audit rules described
below, incurs no federal income tax liability. Each Investor is required to take into account its proportionate share of items of income,
gain, loss and deduction of the partnership in computing its federal income tax liability regardless of whether or not cash or property
distributions are then made by the Fund. Following the close of the Fund’s taxable year end, Investors will receive a tax statement
entitled Schedule K-1 Partner’s Share of Income, Deductions, Credits, etc., which reports the tax status of their distributive share
of the Fund’s items for the previous year.
Taxation
of Distributions, Sales and Exchanges
In
general, distributions of money by the Fund to an Investor will represent a non-taxable return of capital up to the amount of an Investor’s
adjusted tax basis in its shares. An Investor will recognize gain to the extent that any money distributed by the Fund exceeds the Investor’s
adjusted tax basis in its shares. In the case of a non-taxable return of capital by the Fund to an Investor, other than in liquidation
of the Investor’s interest in the Fund, the tax basis of his shares will be reduced (but not below zero) and will result in an increase
in the amount of gain (or decrease in the amount of loss) that will be recognized by the Investor on the later sale of its shares. A distribution
in partial or complete redemption of your shares in the Fund is taxable as a sale or exchange only to the extent the amount of money received
exceeds the tax basis of your entire interest in the Fund. Any loss may be recognized only if you redeem your entire interest in the Fund
for money.
When
you sell shares of the Fund, you may have a capital gain or loss.
Derivatives
The
use of derivatives by the Fund may cause the Fund to realize higher amounts of ordinary income or short-term capital gain, allocations
of which are taxable to individual Investors at ordinary income tax rates rather than at the more favorable tax rates for long-term capital
gain. Changes in government regulation of derivative instruments could affect the character, timing and amount of the Fund’s taxable
income or gains, and may limit the Fund from using certain types of derivative instruments as part of its investment strategy.
Risk
of Audit of the Fund
Under
the partnership audit rules, which are generally applicable to tax years beginning after December 31, 2017, the Internal Revenue Service
(“IRS”) may collect any taxes resulting from audit adjustments to the Fund’s income tax returns (including any applicable
penalties and interest) directly from the Fund. In that case, current Investors would bear some or all of the
A-25 The
Invesco Funds
tax liability
resulting from such audit adjustment, even if they did not own interests in the Fund during the tax year under audit. The Fund may have
the ability to shift any such tax liability to the Investors in accordance with their interests in the Fund during the year under audit,
but there can be no assurance that the Fund will be able to do so under all circumstances. For taxable years not subject to the new audit
rules, items of Fund income, gain, loss, deduction and credit will be determined at the Fund level in a unified audit. NO REPRESENTATION
OR WARRANTY OF ANY KIND IS MADE WITH RESPECT TO THE TAXATION, DEDUCTIBILITY OR CAPITALIZATION OF ANY ITEM BY THE FUND OR INVESTOR. In
addition, the “partnership representative” (tax matters partner, for taxable years before the partnership audit rules become
effective) will have the sole authority to act on the Fund’s behalf for purposes of, among other things, federal income tax audits
and judicial review of administrative adjustments by the IRS, and any such actions will be binding on the Fund and all of the Investors.
Unrelated
Business Taxable Income
An
allocable share of a tax-exempt Investor’s income will be “unrelated business taxable income” (“UBTI”) to
the extent that the Fund borrows money to acquire property or invests in assets that produce UBTI.
Medicare
Tax
An
additional 3.8% Medicare tax is imposed on certain net investment income of US individuals, estates and trusts to the extent that such
person’s “modified adjusted gross income” (in the case of an individual) or “adjusted gross income” (in
the case of an estate or trust) exceeds a threshold amount. “Net investment income,” for these purposes, means investment
income (including (i) net gains from the taxable disposition of shares of a Fund to the extent the net gain would be taken into account
by the Investor if the Fund sold all of its property for fair market value immediately before the disposition of the shares of the Fund,
and (ii) an allocable share of a Fund’s interest, dividends and net gains) reduced by the deductions properly allocable to such
income. This Medicare tax, if applicable, is reported by Investors on, and paid with, the Investor’s federal income tax return.
State,
Local and Non-US Tax Matters
An
Investor’s distributive share of the Fund’s income, and gains from the sale or exchange of an Investor’s Fund shares,
generally are subject to state and local taxes in the jurisdiction in which the Investor resides or is otherwise subject to tax.
Prospective
investors should consider their individual state and local tax consequences
of an investment in the Fund.
Tax
Considerations for Non-US Investors
If,
as anticipated, the Fund is not deemed to be engaged in a US trade or business, the Fund generally will be required to withhold tax on
the distributive share of certain items of gross income from US sources allocated to non-US Investors at a 30% (or lower treaty) rate.
Certain categories of income, including portfolio interest, are not subject to US withholding tax. Capital gains (other than gain realized
on disposition of US real property interests) are not subject to US withholding tax unless the non-US Investor is a nonresident alien
individual present in the United States for a period or periods aggregating 183 days or more during the taxable year. If, on the other
hand, the Fund derives income which is effectively connected with a US trade or business carried on by the Fund, this 30% tax will not
apply to such effectively connected income of the Fund, and the Fund generally will be required to withhold tax from the amount of effectively
connected income allocable to non-US Investors at the highest rate of tax applicable to US residents, and non-US Investors generally would
be required to file US income tax returns and be subject to US income tax on a net basis. Gain or loss on a sale of shares will be treated
as effectively connected with a U.S. trade or business to the extent that a foreign corporation or foreign individual that owns the shares
(whether directly or indirectly through other partnerships) would have had effectively connected gain or loss had the partnership sold
its underlying assets and applicable US
withholding
tax will apply. Non-US Investors may be subject to US estate tax and are subject to special US tax certification requirements.
Other
Reporting and Withholding Requirements
Under
the Foreign Account Tax Compliance Act (“FATCA”), the Fund will be required to withhold at a 30% rate on certain US source
payments (such as interest and dividends) to certain Investors if the Investor fails to provide the Fund with the information which identifies
its direct and indirect US ownership. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide otherwise (which
is not expected). A Fund may disclose the information that it receives from an Investor to the IRS, non-US taxing authorities or other
parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that is an Investor fails
to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.
For
a more complete discussion of the federal income tax consequences
of investing in the Fund, see the Statement of Additional Information.
This
discussion of “Federal Income Taxes” is not intended or written
to be used as tax advice. Because everyone’s tax situation is unique, Investors should consult their tax professional about federal,
state, local and foreign tax consequences before making an investment in the Fund.
Payments
to Financial Intermediaries – All Share Classes except Class R6 shares
The
financial adviser or intermediary through which you purchase your shares may receive all or a portion of the sales charges and distribution
fees discussed above. In addition to those payments, Invesco Distributors and other Invesco Affiliates, may make additional cash payments
to financial intermediaries in connection with the promotion and sale of shares of the Funds. These additional cash payments may include
cash payments and other payments for certain marketing and support services. Invesco Affiliates make these payments from their own resources,
from Invesco Distributors’ retention of initial sales charges and from payments to Invesco Distributors made by the Funds under
their 12b-1 plans. In the context of this prospectus, “financial intermediaries” include any broker, dealer, bank (including
bank trust departments), registered investment adviser, financial planner, retirement plan administrator, insurance company and any other
financial intermediary having a selling, administration or similar agreement with Invesco Affiliates.
The
benefits Invesco Affiliates receive when they make these payments include,
among other things, placing the Funds on the financial intermediary’s fund sales system, and access (in some cases on a preferential
basis over other competitors) to individual members of the financial intermediary’s sales force or to the financial intermediary’s
management. These payments are sometimes referred to as “shelf space” payments because the payments compensate the financial
intermediary for including the Funds in its fund sales system (on its “sales shelf”). Invesco Affiliates compensate financial
intermediaries differently depending typically on the level and/or type of considerations provided by the financial intermediary. The
payments Invesco Affiliates make may be calculated based on sales of shares of the Funds (Sales-Based Payments), in which case the total
amount of such payments shall not exceed 0.25% (0.10% for Class R5 shares) of the public offering price of all shares sold by the financial
intermediary during the particular period. Payments may also be calculated based on the average daily net assets of the applicable Funds
attributable to that particular financial intermediary (Asset-Based Payments), in which case the total amount of such cash payments shall
not exceed 0.25% per annum of those assets during a defined period. Sales-Based Payments primarily create incentives to make new sales
of shares of the Funds and Asset-Based Payments primarily create incentives to retain previously sold shares of the Funds in investor
accounts. Invesco Affiliates
A-26 The
Invesco Funds
may pay a financial
intermediary either or both Sales-Based Payments and Asset-Based Payments.
Invesco
Affiliates are motivated to make these payments as they promote
the sale of Fund shares and the retention of those investments by clients of the financial intermediaries. To the extent financial intermediaries
sell more shares of the Funds or retain shares of the Funds in their clients’ accounts, Invesco Affiliates benefit from the incremental
management and other fees paid to Invesco Affiliates by the Funds with respect to those assets.
The
Funds’ transfer agent may make payments to certain financial intermediaries
for certain administrative services, including record keeping and sub-accounting of shareholder accounts pursuant to a sub-transfer agency,
omnibus account service or sub-accounting agreement. All fees payable by Invesco Affiliates under this category of services are charged
back to the Funds, subject to certain limitations approved by the Board.
You
can find further details in the Fund’s SAI about these payments and the
services provided by financial intermediaries. In certain cases these payments could be significant to the financial intermediaries. Your
financial adviser may charge you additional fees or commissions other than those disclosed in this prospectus. You can ask your financial
adviser about any payments it receives from Invesco Affiliates or the Funds, as well as about fees and/or commissions it charges.
Important
Notice Regarding Delivery of Security Holder Documents
To
reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address
(Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not
want the mailing of these documents to be combined with those for other members of your household, please contact the Funds’ transfer
agent at 800-959-4246 or contact your financial institution. The Funds’ transfer agent will begin sending you individual copies
for each account within thirty days after receiving your request.
A-27 The
Invesco Funds
Obtaining Additional Information
More information
may be obtained free of charge upon request. The SAI, a current version of which is on file with the SEC, contains more details about
the Fund and is incorporated by reference into this prospectus (is legally a part of this prospectus). Annual and semi-annual reports
to shareholders contain additional information about the Fund’s investments. The Fund’s annual report also discusses the market
conditions and investment strategies that significantly affected the Fund’s performance during its last fiscal year. The Fund also
files its complete schedule of portfolio holdings with the SEC for the 1st and 3rd quarters of each fiscal year as an exhibit to its reports
on Form N-PORT.
If
you have questions about an Invesco Fund or your account, or you wish to obtain a free copy of the Fund’s current SAI, annual or
semi-annual reports or Form N-PORT, please contact us.
|
By
Mail: |
Invesco
Investment Services, Inc.
P.O.
Box 219078
Kansas
City, MO 64121-9078 |
|
By
Telephone: |
(800)
959-4246 |
|
On
the Internet: |
You
can send us a request by e-mail or
download
prospectuses, SAIs, annual or
semi-annual
reports via our website:
www.invesco.com/us
|
Reports
and other information about the Fund are available on the EDGAR Database on the SEC's Internet site at http://www.sec.gov, and copies
of this information may be obtained, after paying a duplicating fee, by electronic request at the following e-mail address: publicinfo@sec.gov.
|
Invesco
Discovery Fund
SEC 1940 Act file
number: 811-09913 |
|
invesco.com/us
|
O-DIS-PRO-1
|
Prospectus
December
16,
2022
Class:
A (VADAX ), C (VADCX ),
R (VADRX ), Y (VADDX ),
R6 (VADFX )
Invesco
Equally-Weighted S&P 500 Fund
As
with all other mutual fund securities, the U.S. Securities and Exchange Commission (SEC) has not approved or disapproved these securities
or passed upon the adequacy of this prospectus. Any representation to the contrary is a criminal offense.
An
investment in the Fund:
◾
is
not FDIC insured;
◾
may
lose value; and
◾
is
not guaranteed by a bank.
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8
| |
|
| |
|
A-1
| |
|
A-1
| |
|
A-2
| |
|
A-3
| |
|
A-3
| |
|
A-10
| |
|
A-11
| |
|
A-13
| |
|
A-15
| |
|
A-17
| |
|
A-17
| |
|
A-18
| |
|
A-21
| |
|
A-23
| |
|
A-25
| |
|
A-26
| |
|
A-27
| |
|
| |
|
Back
Cover |
Invesco
Equally-Weighted S&P 500 Fund
The
Fund’s investment objective is total return through growth of capital and current income.
This
table describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund.
The
table and Examples below do not reflect any transaction fees
that may be charged by financial intermediaries or commissions that a shareholder may be required to pay directly to its financial intermediary
when buying or selling Class Y or Class R6 shares.
You
may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000
in the Invesco Funds. More information about these and other discounts is available from your financial professional and
in the section “Shareholder Account Information – Initial Sales Charges (Class A Shares Only)” on page A-3 of the prospectus
and the section “Purchase, Redemption and Pricing of Shares – Purchase and Redemption of Shares” on page L-1 of the
statement of additional information (SAI).
|
Class:
|
A
|
C
|
R
|
Y
|
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
|
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
R6 |
$
|
$
|
$
|
$
|
|
| ||||
|
|
1
Year |
3
Years |
5
Years |
10
Years |
|
Class
A |
$
|
$
|
$
|
$
|
|
| ||||
|
Class
C |
$
|
$
|
$
|
$
|
|
| ||||
|
Class
R |
$
|
$
|
$
|
$
|
|
| ||||
|
Class
Y |
$
|
$
|
$
|
$
|
|
| ||||
|
Class
R6 |
$
|
$
|
$
|
$
|
|
| ||||
The
Fund invests, under normal circumstances, all, or substantially all, of its net assets in common stocks represented in the S&P 500®
Equal Weight Index (the Underlying Index), and in derivatives and other instruments that have economic characteristics similar to such
securities. The Underlying Index is an equal-weighted version of the S&P 500®
Index, which measures the performance of equity securities of larger U.S. companies.
“Equal weighting”
means that, unlike the S&P 500®
Index, which employs a float-adjusted market capitalization weighted methodology, the Underlying Index assigns each component security
the same weight.
In
seeking to track the investment results
(before fees and expenses) of the Underlying Index, the portfolio managers primarily utilize a “full replication” methodology,
pursuant to which the Fund generally invests in all of the securities comprising the Underlying Index in proportion to their weightings
in the Underlying Index.
The
Underlying Index is typically rebalanced quarterly and constituent changes
are incorporated in the Underlying Index as and when they are made to the S&P 500®
Index. The Fund is generally rebalanced in accordance with the Underlying Index. Constituent changes are generally incorporated in the
Fund as and when they are made to the Underlying Index.
The
Fund can invest in derivative instruments including futures contracts.
The
Fund can use futures contracts, including index futures, to seek exposure
to certain equity securities represented in the Underlying Index while managing cash balances.
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, natural or environmental disasters, widespread disease or other public health issues, war, military conflict, acts of terrorism
or adverse investor sentiment generally. During a general downturn in the financial markets, multiple asset classes may decline in
1 Invesco
Equally-Weighted S&P 500 Fund
value.
When markets perform well, there can be no assurance that specific investments held by the Fund will rise in value.
Investing
in Stocks Risk. The value of the Fund’s portfolio may be
affected by changes in the stock markets. Stock markets may experience significant short-term volatility and may fall 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.
Index
Risk. Unlike many investment companies, the Fund does not utilize
an investing strategy that seeks returns in excess of its Underlying Index. Therefore, the Fund would not necessarily buy or sell a security
unless that security is added to or removed from, respectively, the Underlying Index, even if that security generally is underperforming.
Additionally, the Fund generally rebalances its portfolio in accordance with the Underlying Index, and, therefore, any changes to the
Underlying Index’s rebalance schedule will typically result in corresponding changes to the Fund’s rebalance schedule.
Derivatives
Risk. The value of a derivative instrument depends largely on (and
is derived from) the value of an underlying security, currency, commodity, interest rate, index or other asset (each referred to as an
underlying asset). In addition to risks relating to the underlying assets, the use of derivatives may include other, possibly greater,
risks, including counterparty, leverage and liquidity risks. Counterparty risk is the risk that the counterparty to the derivative contract
will default on its obligation to pay the Fund the amount owed or otherwise perform under the derivative contract. Derivatives create
leverage risk because they do not require payment up front equal to the economic exposure created by holding a position in the derivative.
As a result, an adverse change in the value of the underlying asset could result in the Fund sustaining a loss that is substantially greater
than the amount invested in the derivative or the anticipated value of the underlying asset, which may make the Fund’s returns more
volatile and increase the risk of loss. Derivative instruments may also be less liquid than more traditional investments and the Fund
may be unable to sell or close out its derivative positions at a desirable time or price. This risk may be more acute under adverse market
conditions, during which the Fund may be most in need of liquidating its derivative positions. Derivatives may also be harder to value,
less tax efficient and subject to changing government regulation that could impact the Fund’s ability to use certain derivatives
or their cost. Derivatives strategies may not always be successful. For example, derivatives used for hedging or to gain or limit exposure
to a particular market segment may not provide the expected benefits, particularly during adverse market conditions.
Non-Correlation
Risk. The Fund’s return may not match the return of the Underlying
Index for a number of reasons. For example, the Fund incurs operating expenses not applicable to the Underlying Index, and incurs costs
in buying and selling securities, especially when rebalancing and reconstituting the Fund’s securities holdings to reflect changes
in the composition of the Underlying Index. In addition, the performance of the Fund and the Underlying Index may vary due to asset valuation
differences
and differences
between the Fund’s portfolio and the Underlying Index resulting from legal restrictions, costs or liquidity constraints.
Fund
performance reflects any applicable fee waivers and expense reimbursements.
Performance returns would be lower without applicable fee waivers and expense reimbursements.
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, 2021)
|
|
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
R61 |
|
|
|
|
|
| ||||
|
S&P
500®
Index expenses
or taxes) |
|
|
|
|
|
| ||||
|
S&P
500®
Equal Weight Index (reflects no deduction
for
fees, expenses or taxes) |
|
|
|
|
|
| ||||
|
Lipper
Multi-Cap Core Funds Index |
|
|
|
|
|
| ||||
1
2 Invesco
Equally-Weighted S&P 500 Fund
Management
of the Fund
Investment
Adviser: Invesco Advisers, Inc.
Investment
Sub-Adviser: Invesco Capital Management LLC
|
Portfolio
Managers |
Title
|
Length
of Service on the Fund |
|
Peter
Hubbard |
Portfolio
Manager |
2020
|
|
| ||
|
Pratik
Doshi, CFA |
Portfolio
Manager |
2020
|
|
| ||
|
Michael
Jeanette |
Portfolio
Manager |
2020
|
|
| ||
|
Tony
Seisser |
Portfolio
Manager |
2020
|
|
| ||
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 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 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 R6 shares, the minimum
initial investment is $1 million, unless such investment is made by (i) an investment company, as defined under the Investment Company
Act of 1940, as amended (1940 Act), that is part of a family of investment companies which own in the aggregate at least $100 million
in securities, or (ii) an account established with a 529 college savings plan managed by Invesco, in which case there is no minimum initial
investment.
There
are no minimum investment amounts for Class R6 shares held through
retail omnibus accounts maintained by an intermediary, such as a broker, that (i) generally charges an asset-based fee or commission in
addition to those described in this prospectus, and (ii) maintains Class R6 shares and makes them available to retail investors.
Tax
Information
The
Fund’s distributions generally are taxable to you as ordinary income, capital gains, or some combination of both, unless you are
investing through a tax-advantaged arrangement, such as a 401(k) plan, 529 college savings plan or individual retirement account. Any
distributions from a 401(k) plan or individual retirement account may be taxed as ordinary income when withdrawn from such plan or account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund, the Fund’s distributor
or its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict
of interest by influencing the broker-dealer or other intermediary and your salesperson or financial
adviser
to recommend the Fund over another investment. Ask your salesperson or financial adviser or visit your financial intermediary’s
website for more information.
Investment Objective(s), Strategies, Risks and Portfolio Holdings
Objective(s)
and Strategies
The
Fund’s investment objective is total return through growth of capital and current income. The Fund’s investment objective
may be changed by the Board of Trustees (the Board) without shareholder approval.
The
Fund invests, under normal circumstances, all, or substantially all, of
its net assets in common stocks represented in the Underlying Index, and in derivatives and other instruments that have economic characteristics
similar to such securities. The Underlying Index is an equal-weighted version of the S&P 500®
Index, which measures the performance of equity securities of larger U.S. companies.
“Equal weighting”
means that, unlike the S&P 500®
Index, which employs a float-adjusted market capitalization weighted methodology, the Underlying Index assigns each component security
the same weight.
In
seeking to track the investment results
(before fees and expenses) of
the Underlying Index, the portfolio managers primarily utilize a “full replication” methodology pursuant to which the Fund
generally invests in all of the securities comprising its Underlying Index in approximately the same proportions as the weightings of
the securities in the Underlying Index. However, under various circumstances, it may not be possible or practicable to purchase all of
those securities in those same weightings. In those circumstances, the portfolio managers may purchase a sample of securities in its Underlying
Index.
A
“sampling” methodology means that the portfolio managers use a quantitative
analysis to select securities from the Underlying Index universe to obtain a representative sample of securities that have, in the aggregate,
investment characteristics similar to the Underlying Index in terms of key risk factors, performance attributes and other characteristics.
These include industry weightings, market capitalization, return variability, earnings valuation, yield and other financial characteristics
of securities. When employing a sampling methodology, the portfolio managers base the quantity of holdings in the Fund on a number of
factors, including asset size of the Fund, and generally expects the Fund to hold less than the total number of securities in the Underlying
Index. However, the portfolio managers reserve the right to invest the Fund in as many securities as they believe necessary to achieve
the Fund’s investment objective.
There
also may be instances in which the Adviser may choose to (i) overweight
or underweight a security in the Underlying Index, (ii) purchase securities not contained in the Underlying Index that the Adviser believes
are appropriate to substitute for certain securities in the Underlying Index, or (iii) utilize various combinations of other available
investment techniques in seeking to track the Underlying Index.
The
Fund may sell securities included in the Underlying Index in anticipation
of their removal from the Underlying Index, or purchase securities not included in the Underlying Index in anticipation of their addition
to the Underlying Index.
The
Underlying Index is typically rebalanced quarterly, generally after the close
of trading on the third Friday of March, June, September and December. The reference date of closing prices used for the reweighting is
the second Friday of the reweighting month. Constituent changes are incorporated in the Underlying Index as and when they are made to
the S&P 500®
Index. The Fund is generally rebalanced in accordance with the Underlying Index. Constituent changes are generally incorporated in the
Fund as and when they are made to the Underlying Index and components, shares outstanding and investable weightings factors are as of
the reweighting date.
3 Invesco
Equally-Weighted S&P 500 Fund
The
Fund can invest in derivative instruments including futures contracts.
A
futures contract is a standardized agreement between two parties to buy
or sell a specified quantity of an underlying asset at a specified price at a specified future time. The value of the futures contract
tends to increase and decrease in tandem with the value of the underlying asset. Futures contracts are bilateral agreements, with both
the purchaser and the seller equally obligated to complete the transaction. Depending on the terms of the particular contract, futures
contracts are settled by purchasing an offsetting contract, physically delivering the underlying asset on the settlement date or paying
a cash settlement amount on the settlement date. The Fund can use futures contracts, including index futures, to seek exposure to certain
equity securities represented in the Underlying Index while managing cash balances.
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 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. Because the Fund is passively managed, such circumstances may also impact the Fund to a greater
degree than mutual funds with investment advisers that actively manage their portfolio assets to take advantage of or defend against market
events. 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.
◾
COVID-19.
The “COVID-19” strain of coronavirus has resulted in instances of market closures and dislocations, extreme volatility, liquidity
constraints and increased trading costs. Efforts to contain its spread have resulted in travel restrictions, disruptions of healthcare
systems, business operations (including business closures) and supply chains, layoffs, lower consumer demand and employee availability,
and defaults and credit downgrades, among other significant economic impacts that have disrupted global economic activity across many
industries. Such economic impacts may exacerbate other pre-existing political, social and economic risks locally or globally and cause
general concern and uncertainty. The full economic impact and ongoing effects of COVID-19 (or other future epidemics or pandemics) at
the macro-level and on individual businesses are unpredictable and may result in significant and prolonged effects on the Fund’s
performance.
Investing
in Stocks Risk. Common stock represents an ownership interest in
a company. It ranks below preferred stock and debt securities in claims for dividends and in claims for assets of the issuer in a liquidation
or bankruptcy. Common stocks may be exchange-traded or over-the-counter securities. Over-the-counter securities may be less liquid than
exchange-traded securities.
The
value of the Fund’s portfolio may be affected by changes in the stock
markets. Stocks and other equity securities fluctuate in price in response to changes to equity markets in general. Stock markets may
experience significant short-term volatility and may fall or rise sharply at times. Adverse events in any part of the equity or fixed-income
markets may have unexpected negative effects on other market segments. Different stock markets may behave differently from each other
and U.S. stock markets may move in the opposite direction from one or more foreign stock markets.
The
prices of individual stocks generally do not all move in the same direction
at the same time. However, individual stock prices tend to go up and down more dramatically than those of certain other types of investments,
such as bonds. A variety of factors can negatively affect the price of a particular company’s stock. These factors may include,
but are not limited to: poor earnings reports, a loss of customers, litigation against the company, general unfavorable performance of
the company’s sector or industry, or changes in government regulations affecting the company or its industry. To the extent that
securities of a particular type are emphasized (for example foreign stocks, stocks of small- or mid-cap companies, growth or value stocks,
or stocks of companies in a particular industry), their share values may fluctuate more in response to events affecting the market for
those types of securities.
Index
Risk. Unlike many investment companies that are “actively
managed,” the Fund is a “passive” investor and therefore does not utilize an investing strategy that seeks returns in
excess of the Underlying Index. Therefore, the Fund would not necessarily buy or sell a security unless that security is added to or removed
from, respectively, the Underlying Index, even if that security generally is underperforming. If a specific security is removed from the
Underlying Index, the Fund may be forced to sell such security at an inopportune time or for a price lower than the security’s current
market value. The Underlying Index may not contain the appropriate mix of securities for any particular economic cycle. Additionally,
the Fund generally rebalances its portfolio in accordance with the Underlying Index, and, therefore, any changes to the Underlying Index’s
rebalance schedule will typically result in corresponding changes to the Fund’s rebalance schedule. Further, unlike with an actively
managed fund, the Adviser does not use techniques or defensive strategies designed to lessen the impact of periods of market volatility
or market decline. This means that, based on certain market and economic conditions, the Fund’s performance could be lower than
other types of mutual funds with investment advisers that
4 Invesco
Equally-Weighted S&P 500 Fund
actively
manage their portfolio assets to take advantage of or defend against market events.
Derivatives
Risk. A derivative is an instrument whose value depends largely
on (and is derived from) the value of an underlying security, currency, commodity, interest rate, index or other asset (each referred
to as an underlying asset). In addition to risks relating to the underlying assets, the use of derivatives may include other, possibly
greater, risks, which are described below.
◾
Counterparty
Risk. Certain derivatives do not trade on an established exchange
(referred to as over-the-counter (OTC) derivatives) and are simply financial contracts between the Fund and a counterparty. When the Fund
is owed money on an OTC derivative, the Fund is dependent on the counterparty to pay or, in some cases, deliver the underlying asset,
unless the Fund can otherwise sell its derivative contract to a third party prior to its expiration. Many counterparties are financial
institutions such as banks and broker-dealers and their creditworthiness (and ability to pay or perform) may be negatively impacted by
factors affecting financial institutions generally. In addition, in the event that a counterparty becomes bankrupt or insolvent, the Fund’s
ability to recover the collateral that the Fund has on deposit with the counterparty could be delayed or impaired. For derivatives traded
on a centralized exchange, the Fund generally is dependent upon the solvency of the relevant exchange clearing house (which acts as a
guarantor for each contractual obligation under such derivatives) for payment on derivative instruments for which the Fund is owed money.
◾
Leverage
Risk. Many derivatives do not require a payment up front equal
to the economic exposure created by holding a position in the derivative, which creates a form of leverage. As a result, an adverse change
in the value of the underlying asset could result in the Fund sustaining a loss that is substantially greater than the amount invested
in the derivative or the anticipated value of the underlying asset. In addition,
some derivatives have the potential for unlimited loss, regardless
of the size of the Fund’s initial investment. Leverage may therefore make the Fund’s returns more volatile and increase
the risk of loss. In certain market conditions, losses on derivative
instruments can grow larger while the value of the Fund’s other assets fall, resulting in the Fund’s derivative positions
becoming a larger percentage of the Fund’s investments.
◾
Liquidity
Risk. There is a smaller pool of buyers and sellers for certain
derivatives, particularly OTC derivatives, than more traditional investments such as stocks. These buyers and sellers are often financial
institutions that may be unable or unwilling to buy or sell derivatives during times of financial or market stress. Derivative instruments
may therefore be less liquid than more traditional investments and the Fund may be unable to sell or exit its derivative positions at
a desirable time or price. This risk may be more acute under adverse market conditions, during which the Fund may be most in need of liquidating
its derivative positions. To the extent that the Fund is unable to exit a derivative position because of market illiquidity, the Fund
may not be able to prevent further losses of value in its derivatives holdings and the liquidity of the Fund and its ability to meet redemption
requests may be impaired to the extent that a substantial portion of the Fund’s otherwise liquid assets must be used as margin.
Another consequence of illiquidity is that the Fund may be required to hold a derivative instrument to maturity and take or make delivery
of the underlying asset that the Adviser would otherwise avoid.
◾
Futures
Contracts Risk. The volatility of futures contracts prices has
been historically greater than the volatility of stocks and bonds. The liquidity of the futures market depends on participants entering
into offsetting transactions rather than making or taking delivery. To the extent participants decide to make or take delivery, liquidity
in the futures market could be reduced. In addition, futures exchanges often
impose
a maximum permissible price movement on each futures contract for each trading session. The Fund may be disadvantaged if it is prohibited
from executing a trade outside the daily permissible price movement.
◾
Other
Risks. Compared to other types of investments, derivatives may
be harder to value and may also be less tax efficient, as described under the “Taxes” section of the prospectus. In addition,
changes in government regulation of derivative instruments could affect the character, timing and amount of the Fund’s taxable income
or gains, and may limit or prevent the Fund from using certain types of derivative instruments as a part of its investment strategy, which
could make the investment strategy more costly to implement or require the Fund to change its investment strategy. Derivatives strategies
may not always be successful. For example, to the extent that the Fund uses derivatives for hedging or to gain or limit exposure to a
particular market or market segment, there may be imperfect correlation between the value of the derivative instrument and the value of
the instrument being hedged or the relevant market or market segment, in which case the Fund may not realize the intended benefits. There
is also the risk that during adverse market conditions, an instrument which would usually operate as a hedge provides no hedging benefits
at all. The Fund’s use of derivatives may be limited by the requirements for taxation of the Fund as a regulated investment company.
Non-Correlation
Risk. The Fund’s returns may not match the return of the
Underlying Index (that is, it may experience tracking error) for a number of reasons. For example, the Fund incurs operating expenses
not applicable to the Underlying Index and incurs costs in buying and selling securities, especially when rebalancing the Fund’s
securities holdings to reflect changes in the composition of the Underlying Index. To the extent that the Fund has recently commenced
operations and/or otherwise has a relatively small amount of assets, such transaction costs could have a proportionally greater impact
on the Fund. Additionally, if the Fund uses a sampling approach, it may result in returns for the Fund that are not as well-correlated
with the return of the Underlying Index as would be the case if the Fund purchased all of the securities in the Underlying Index in the
proportions represented in the Underlying Index.
The
performance of the Fund and the Underlying Index may vary due to asset
valuation differences and differences between the Fund’s portfolio and the Underlying Index resulting from legal restrictions, costs
or liquidity constraints. The Fund’s transactions, which are principally in cash and therefore could be subject to incurring higher
costs in buying or selling securities, may also contribute to tracking error. The Fund may fair value certain of the securities it holds.
To the extent the Fund calculates its NAV based on fair value prices, the Fund’s ability to track the Underlying Index may be adversely
affected. Since the Underlying Index is not subject to the tax diversification requirements to which the Fund must adhere, the Fund may
be required to deviate its investments from the securities contained in, and relative weightings of, the Underlying Index. The Fund may
not invest in certain securities included in the Underlying Index due to liquidity constraints. Liquidity constraints also may delay the
Fund’s purchase or sale of securities included in the Underlying Index. For tax efficiency purposes, the Fund may sell certain securities
to realize losses, causing it to deviate from the Underlying Index.
The
Fund generally attempts to remain fully invested in the constituents of
the Underlying Index. However, the Adviser may not fully invest the Fund at times, either as a result of cash flows into the Fund, to
retain a reserve of cash to meet redemptions and expenses, or because of low assets (particularly when the Fund is new and has operated
only for a short period).
The
investment activities of one or more of the Adviser’s affiliates, including
other subsidiaries of the Adviser’s parent company, Invesco Ltd., for their proprietary accounts and for client accounts also may
adversely impact the Fund’s ability to track the Underlying Index. For example, in regulated industries, certain emerging or international
markets and under
5 Invesco
Equally-Weighted S&P 500 Fund
corporate
and regulatory ownership definitions, there may be limits on the aggregate amount of investment by affiliated investors that may not be
exceeded, or that may not be exceeded without the grant of a license or other regulatory or corporate consent, or, if exceeded, may cause
the Adviser, the Fund or other client accounts to suffer disadvantages or business restrictions. As a result, the Fund may be restricted
in its ability to acquire particular securities due to positions held by the Fund and the Adviser’s affiliates.
Sampling
Risk. The use of a representative sampling approach may result
in the Fund holding a smaller number of securities than are in the Underlying Index. As a result, an adverse development to an issuer
of securities that the Fund holds could result in a greater decline in NAV than would be the case if the Fund held all of the securities
in the Underlying Index. To the extent the assets in the Fund are smaller, these risks will be greater. In addition, by sampling the securities
in the Underlying Index, the Fund faces the risk that the securities selected for the Fund, in the aggregate, will not provide investment
performance matching that of the Underlying Index, thereby increasing tracking error.
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 1555 Peachtree Street, N.E., Atlanta, Georgia 30309. The Adviser, as successor in interest to multiple
investment advisers, has been an investment adviser since 1976.
Sub-Advisers.
Invesco Capital Management LLC (Invesco Capital or the Sub-Adviser) serves as the Fund’s investment sub-adviser. Invesco Capital,
an affiliate of the Adviser, incorporated in 2003, is located at 3500 Lacey Road, Suite 700, Downers Grove, Illinois 60515. Invesco Capital
is a registered investment adviser that serves as the investment adviser to the Invesco family of ETFs, with combined assets under management
of $170.5 billion as of October 31, 2022. Invesco Capital provides portfolio management services to the Fund.
In
addition, Invesco has entered into one or more Sub-Advisory Agreements
with certain affiliates to serve as sub-advisers to the Fund (the Sub-Advisers). Invesco may appoint the Sub-Advisers from time to time
to provide discretionary investment management services, investment advice, and/or order execution services to the Fund. The Sub-Advisers
and the Sub-Advisory Agreements are described in the SAI.
Exclusion
of Adviser from Commodity Pool Operator Definition
With
respect to the Fund, the Adviser has claimed an exclusion from the definition of “commodity pool operator” (CPO) under the
Commodity Exchange Act (CEA) and the rules of the Commodity Futures Trading Commission (CFTC) and, therefore, is not subject to CFTC registration
or regulation as a CPO. In addition, the Adviser is relying upon a related exclusion from the definition of “commodity trading advisor”
(CTA) under the CEA and the rules of the CFTC with respect to the Fund.
The
terms of the CPO exclusion require the Fund, among other things, to
adhere to certain limits on its investments in “commodity interests.” Commodity interests include commodity futures, commodity
options and swaps, which in turn include non-deliverable forwards. The Fund is permitted to invest in these instruments as further described
in the Fund’s SAI. However, the Fund is not intended as a vehicle for trading in the
commodity
futures, commodity options or swaps markets. The CFTC has neither reviewed nor approved the Adviser’s reliance on these exclusions,
or the Fund, its investment strategies or this prospectus.
Adviser
Compensation
During
the fiscal year ended August 31, 2022, the Adviser received compensation of 0.10% of the Fund’s average daily net assets, after
fee waiver and/or expense reimbursement, if any.
Invesco,
not the Fund, pays sub-advisory fees, 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
Investment
management decisions for the Fund are made by the investment management team at Invesco Capital.
The
following individuals are jointly and primarily responsible for the day-to-day
management of the Fund’s portfolio:
◾
Peter
Hubbard, Portfolio Manager, who has been responsible for the Fund since 2020 and has been associated with Invesco Capital and/or its affiliates
since 2005.
◾
Pratik
Doshi, CFA, Portfolio Manager, who has been responsible for the Fund since 2020 and has been associated with Invesco Capital and/or its
affiliates since 2018. From 2016 to 2018, Mr. Doshi earned his MBA from the University of Chicago. From 2014 to 2016, he was employed
by Bank of America-Merrill Lynch where he served as a vice president.
◾
Michael
Jeanette, Portfolio Manager, who has been responsible for the Fund since 2020 and has been associated with Invesco Capital and/or its
affiliates since 2008.
◾
Tony
Seisser, Portfolio Manager, who has been responsible for the Fund since 2020 and has been associated with Invesco Capital and/or its affiliates
since 2013.
More
information on the portfolio managers may be found at www.invesco.com/us.
The website is not part of this prospectus.
The
Fund’s SAI provides additional information about the portfolio managers’
investments in the Fund, a description of the compensation structure and information regarding other accounts managed.
Other Information
Sales
Charges
Purchases
of Class A shares of the Fund are subject to the maximum 5.50% initial sales charge as listed under the heading “Category I Initial
Sales Charges” in the “Shareholder Account Information—Initial Sales Charges (Class A Shares Only)” section of
the prospectus. Purchases of Class C shares are subject to a contingent deferred sales charge (CDSC) if you sell Class C shares within
one year of purchase; however, the CDSC shall not apply to the purchases of Class C shares where the selling broker-dealer was not paid
a commission at the time of purchase. For more information on CDSCs, see the “Shareholder Account Information—Contingent Deferred
Sales Charges (CDSCs)” section of this prospectus.
Dividends
and Distributions
The
Fund expects, based on its investment objective and strategies, that its distributions, if any, will consist of ordinary income, capital
gains, or some combination of both.
Dividends
The
Fund generally declares and pays dividends from net investment income, if any, annually.
6 Invesco
Equally-Weighted S&P 500 Fund
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.
Disclaimers
The
Underlying Index is a product of S&P Dow Jones Indices LLC or its affiliates
(“SPDJI”) and has been licensed for use by Invesco. Standard & Poor’s®
and S&P®
are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones®
is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”). These trademarks have been licensed for use by
SPDJI and sublicensed for certain purposes by Invesco. It is not possible to invest directly in an index. The Fund is not sponsored, endorsed,
sold or promoted by SPDJI, Dow Jones, S&P, any of their respective affiliates (collectively, “S&P Dow Jones Indices”).
S&P Dow Jones Indices does not make any representation or warranty, express or implied, to the owners of the Fund or any member of
the public regarding the advisability of investing in securities generally or in the Fund particularly or the ability of the Underlying
Index to track general market performance. Past performance of an index is not an indication or guarantee of future results. S&P Dow
Jones Indices’ only relationship to Invesco with respect to the Underlying Index is the licensing of the Index and certain trademarks,
service marks and/or trade names of S&P Dow Jones Indices and/or its licensors. The Underlying Index is determined, composed and calculated
by S&P Dow Jones Indices without regard to Invesco or the Fund. S&P Dow Jones Indices has no obligation to take the needs of Invesco
or the owners of the Fund into consideration in determining, composing or calculating the Underlying Index. S&P Dow Jones Indices
is not responsible for and has not participated in the determination of the prices, and amount of the Fund or the timing of the issuance
or sale of the Fund or in the determination or calculation of the equation by which the Fund is to be converted into cash, surrendered
or redeemed, as the case may be. S&P Dow Jones Indices has no obligation or liability in connection with the administration, marketing
or trading of the Fund. There is no assurance that investment products based on the Underlying Index will accurately track index performance
or provide positive investment returns. S&P Dow Jones Indices LLC is not an investment or tax advisor. A tax advisor should be consulted
to evaluate the impact of any tax-exempt securities on portfolios and the tax consequences of making any particular investment decision.
Inclusion of a security within an index is not a recommendation by S&P Dow Jones Indices to buy, sell, or hold such security, nor
is it considered to be investment advice.
S&P
DOW JONES INDICES DOES NOT GUARANTEE THE ADEQUACY, ACCURACY, TIMELINESS
AND/OR THE COMPLETENESS OF THE UNDERLYING INDEX OR ANY DATA RELATED THERETO OR ANY COMMUNICATION, INCLUDING BUT NOT LIMITED TO, ORAL OR
WRITTEN COMMUNICATION (INCLUDING ELECTRONIC COMMUNICATIONS) WITH RESPECT THERETO. S&P DOW JONES INDICES SHALL NOT BE SUBJECT TO ANY
DAMAGES OR LIABILITY FOR ANY ERRORS, OMISSIONS, OR DELAYS THEREIN. S&P DOW JONES INDICES MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND
EXPRESSLY DISCLAIMS ALL WARRANTIES, OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE OR AS TO RESULTS TO BE OBTAINED BY INVESCO,
OWNERS OF THE FUND, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE UNDERLYING INDEX OR WITH RESPECT TO ANY DATA RELATED THERETO. WITHOUT
LIMITING ANY OF THE FOREGOING, IN NO EVENT WHATSOEVER SHALL S&P DOW JONES INDICES BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL,
PUNITIVE,
OR CONSEQUENTIAL DAMAGES INCLUDING BUT NOT LIMITED TO, LOSS OF PROFITS, TRADING LOSSES, LOST TIME OR GOODWILL, EVEN IF THEY HAVE BEEN
ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, WHETHER IN CONTRACT, TORT, STRICT LIABILITY, OR OTHERWISE. THERE ARE NO THIRD PARTY BENEFICIARIES
OF ANY AGREEMENTS OR ARRANGEMENTS BETWEEN S&P DOW JONES INDICES AND INVESCO, OTHER THAN THE LICENSORS OF S&P DOW JONES INDICES.
The
Adviser, Sub-Adviser and their affiliates (collectively, the Adviser Parties)
do not guarantee the accuracy and/or the completeness of the Underlying Index or any data included therein, and the Adviser Parties shall
have no liability for any errors, omissions, restatements, re-calculations or interruptions therein.
The
Adviser Parties make no warranty, express or implied, as to results to
be obtained by the Fund, owners of shares of the Fund, or any other person or entity from the use of the Underlying Index or any data
included therein. The Adviser Parties make no express or implied warranties and expressly disclaim all warranties of merchantability or
fitness for a particular purpose or use with respect to the Underlying Index or any data included therein. Without limiting any of the
foregoing, in no event shall the Adviser Parties have any liability for any special, punitive, direct, indirect or consequential damages
(including lost profits) arising out of matters relating to the use of the Underlying Index, even if notified of the possibility of such
damages.
7 Invesco
Equally-Weighted S&P 500 Fund
Financial Highlights
The financial
highlights show the Fund’s financial history for the past five fiscal years or, if shorter, the period of operations of the Fund
or any of its share classes. The financial highlights table is intended to help you understand the Fund’s financial performance.
Certain information reflects financial results for a single Fund share.
The
total returns in the table represent the rate that an investor would have
earned (or lost) on an investment in the Fund (assuming reinvestment of all dividends and distributions).
This
information has been audited by PricewaterhouseCoopers LLP, an independent
registered public accounting firm, whose report, along with the Fund’s financial statements, is included in the Fund’s annual
report, which is available upon request.
|
|
Net
asset
value,
beginning
of
period |
Net
investment
income(a)
|
Net
gains
(losses)
on
securities
(both
realized
and
unrealized)
|
Total
from
investment
operations
|
Dividends
from
net
investment
income
|
Distributions
from
net
realized
gains
|
Total
distributions
|
Net
asset
value,
end
of
period |
Total
return
(b)
|
Net
assets,
end
of period
(000's
omitted) |
Ratio
of
expenses
to
average
net
assets
with
fee waivers
and/or
expenses
absorbed
|
Ratio
of
expenses
to
average net
assets
without
fee
waivers
and/or
expenses
absorbed
|
Ratio
of net
investment
income
to
average
net
assets |
Portfolio
turnover
(c)
|
|
Class
A | ||||||||||||||
|
Year
ended 08/31/22 |
$82.72
|
$0.90
|
$(7.40)
|
$(6.50)
|
$(0.93)
|
$(6.78)
|
$(7.71)
|
$68.51
|
(8.85)%
|
$2,670,328
|
0.53%
|
0.53%
|
1.18%
|
24%
|
|
Year
ended 08/31/21 |
62.02
|
0.82
|
24.05
|
24.87
|
(0.99)
|
(3.18)
|
(4.17)
|
82.72
|
41.81
|
2,971,521
|
0.52
|
0.52
|
1.13
|
23
|
|
Year
ended 08/31/20 |
60.01
|
0.99
|
3.88
|
4.87
|
(1.03)
|
(1.83)
|
(2.86)
|
62.02
|
8.08(d)
|
2,182,945
|
0.53
|
0.53
|
1.67
|
26
|
|
Year
ended 08/31/19 |
64.04
|
0.92
|
(1.38)
|
(0.46)
|
(0.82)
|
(2.75)
|
(3.57)
|
60.01
|
(0.09)
|
2,235,827
|
0.52
|
0.52
|
1.55
|
22
|
|
Year
ended 08/31/18 |
56.49
|
0.75
|
8.45
|
9.20
|
(0.81)
|
(0.84)
|
(1.65)
|
64.04
|
16.52
|
2,293,892
|
0.53
|
0.53
|
1.23
|
20
|
|
| ||||||||||||||
|
Class
C | ||||||||||||||
|
Year
ended 08/31/22 |
78.47
|
0.31
|
(7.00)
|
(6.69)
|
(0.35)
|
(6.78)
|
(7.13)
|
64.65
|
(9.53)
|
689,583
|
1.28
|
1.28
|
0.43
|
24
|
|
Year
ended 08/31/21 |
58.96
|
0.30
|
22.86
|
23.16
|
(0.47)
|
(3.18)
|
(3.65)
|
78.47
|
40.82(e)
|
945,674
|
1.21(e)
|
1.21(e)
|
0.44(e)
|
23
|
|
Year
ended 08/31/20 |
57.18
|
0.52
|
3.66
|
4.18
|
(0.57)
|
(1.83)
|
(2.40)
|
58.96
|
7.27(d)
|
879,154
|
1.28
|
1.28
|
0.92
|
26
|
|
Year
ended 08/31/19 |
61.18
|
0.46
|
(1.31)
|
(0.85)
|
(0.40)
|
(2.75)
|
(3.15)
|
57.18
|
(0.83)
|
1,083,024
|
1.27
|
1.27
|
0.80
|
22
|
|
Year
ended 08/31/18 |
54.05
|
0.32
|
8.09
|
8.41
|
(0.44)
|
(0.84)
|
(1.28)
|
61.18
|
15.75(e)
|
1,252,161
|
1.21(e)
|
1.21(e)
|
0.55(e)
|
20
|
|
| ||||||||||||||
|
Class
R | ||||||||||||||
|
Year
ended 08/31/22 |
82.12
|
0.70
|
(7.34)
|
(6.64)
|
(0.73)
|
(6.78)
|
(7.51)
|
67.97
|
(9.08)
|
146,993
|
0.78
|
0.78
|
0.93
|
24
|
|
Year
ended 08/31/21 |
61.60
|
0.63
|
23.88
|
24.51
|
(0.81)
|
(3.18)
|
(3.99)
|
82.12
|
41.44
|
147,581
|
0.77
|
0.77
|
0.88
|
23
|
|
Year
ended 08/31/20 |
59.63
|
0.83
|
3.84
|
4.67
|
(0.87)
|
(1.83)
|
(2.70)
|
61.60
|
7.80(d)
|
127,559
|
0.78
|
0.78
|
1.42
|
26
|
|
Year
ended 08/31/19 |
63.64
|
0.77
|
(1.36)
|
(0.59)
|
(0.67)
|
(2.75)
|
(3.42)
|
59.63
|
(0.33)
|
135,225
|
0.77
|
0.77
|
1.30
|
22
|
|
Year
ended 08/31/18 |
56.15
|
0.59
|
8.42
|
9.01
|
(0.68)
|
(0.84)
|
(1.52)
|
63.64
|
16.25
|
137,036
|
0.78
|
0.78
|
0.98
|
20
|
|
| ||||||||||||||
|
Class
Y | ||||||||||||||
|
Year
ended 08/31/22 |
83.74
|
1.10
|
(7.50)
|
(6.40)
|
(1.12)
|
(6.78)
|
(7.90)
|
69.44
|
(8.64)
|
2,248,749
|
0.28
|
0.28
|
1.43
|
24
|
|
Year
ended 08/31/21 |
62.74
|
1.01
|
24.32
|
25.33
|
(1.15)
|
(3.18)
|
(4.33)
|
83.74
|
42.15
|
2,671,007
|
0.27
|
0.27
|
1.38
|
23
|
|
Year
ended 08/31/20 |
60.67
|
1.15
|
3.93
|
5.08
|
(1.18)
|
(1.83)
|
(3.01)
|
62.74
|
8.35(d)
|
2,106,008
|
0.28
|
0.28
|
1.92
|
26
|
|
Year
ended 08/31/19 |
64.71
|
1.08
|
(1.40)
|
(0.32)
|
(0.97)
|
(2.75)
|
(3.72)
|
60.67
|
0.18
|
2,902,956
|
0.27
|
0.27
|
1.80
|
22
|
|
Year
ended 08/31/18 |
57.06
|
0.91
|
8.53
|
9.44
|
(0.95)
|
(0.84)
|
(1.79)
|
64.71
|
16.80
|
3,444,820
|
0.28
|
0.28
|
1.48
|
20
|
|
| ||||||||||||||
|
Class
R6 | ||||||||||||||
|
Year
ended 08/31/22 |
83.90
|
1.18
|
(7.51)
|
(6.33)
|
(1.20)
|
(6.78)
|
(7.98)
|
69.59
|
(8.54)
|
561,218
|
0.19
|
0.19
|
1.52
|
24
|
|
Year
ended 08/31/21 |
62.86
|
1.09
|
24.36
|
25.45
|
(1.23)
|
(3.18)
|
(4.41)
|
83.90
|
42.30
|
910,010
|
0.16
|
0.16
|
1.49
|
23
|
|
Year
ended 08/31/20 |
60.78
|
1.22
|
3.94
|
5.16
|
(1.25)
|
(1.83)
|
(3.08)
|
62.86
|
8.47(d)
|
740,456
|
0.16
|
0.16
|
2.04
|
26
|
|
Year
ended 08/31/19 |
64.83
|
1.15
|
(1.40)
|
(0.25)
|
(1.05)
|
(2.75)
|
(3.80)
|
60.78
|
0.29
|
1,024,706
|
0.16
|
0.16
|
1.91
|
22
|
|
Year
ended 08/31/18 |
57.15
|
0.98
|
8.56
|
9.54
|
(1.02)
|
(0.84)
|
(1.86)
|
64.83
|
16.96
|
1,000,614
|
0.16
|
0.16
|
1.60
|
20
|
|
| ||||||||||||||
|
(a)
|
Calculated
using average shares outstanding. |
|
(b)
|
Includes
adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value
for financial reporting purposes and the returns
based
upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges
and is not annualized for periods less than one
year,
if applicable. |
|
(c)
|
Portfolio
turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
|
(d)
|
Amount
includes the effect of the Adviser pay-in for an economic loss as a result of a delay in rebalancing to the Index that occurred on April
24, 2020. Had the pay-in not been made, the total
return
would have been 6.49%, 5.61%, 6.21%, 6.78% and 6.90% for Class A, Class C, Class R, Class Y and Class R6 shares, respectively.
|
|
(e)
|
The
total return, ratio of expenses to average net assets and ratio of net investment income (loss) to average net assets reflect actual 12b-1
fees of 0.93% and 0.94% for the years ended
August
31, 2021 and 2018, respectively. |
8 Invesco
Equally-Weighted S&P 500 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 all of the Invesco Funds and their share classes that have different fees and expenses.
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 |
|
|
▪ 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) |
A-1 The
Invesco Funds
MCF—12/22
|
Share
Classes |
|
|
|
|
|
Class
A |
Class
C |
Class
R |
Class
Y |
Class
R5 and R6 |
|
|
▪ 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 International Core Equity 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 a specific
Fund may make additional purchases into Class AX and CX, respectively, of such specific Fund. All references in this “Shareholder
Account Information” section of this prospectus to Class A, C or R shares of the Invesco Funds shall include Class AX
(excluding Invesco Government Money Market Fund), or CX shares, respectively, of the Invesco Funds, unless otherwise noted. All references
in this “Shareholder Account Information” section of this prospectus to Invesco Cash Reserve Shares of Invesco Government
Money Market Fund shall include Class AX shares of Invesco Government Money Market Fund, unless otherwise noted.
Class P
Shares
In
addition to the other share classes discussed herein, the Invesco Summit Fund offers Class P shares, which were historically sold
only through the AIM Summit Investors Plans I and II (each a Plan and, collectively, the Summit Plans). Class P shares are sold with
no initial sales charge and have a 12b-1 fee of 0.10%. However, Class P shares are not sold to members of the general public. Only
shareholders who had accounts in the Summit Plans at the close of business on December 8, 2006 may purchase Class P shares and
only until the total of their combined investments in the Summit Plans and in Class P shares directly equals the face amount of their
former Plan under the 30 year extended investment option. The face amount of a Plan is the combined total of all scheduled monthly
investments under the Plan. For a Plan with a scheduled monthly investment of $100.00, the face amount would have been $36,000.00 under
the 30 year extended investment option.
Class R
Shares
Class R
shares are intended for 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 (except for the Invesco Master Loan Fund) are available for use by Employer Sponsored Retirement and Benefit
Plans, held either at the plan level or through omnibus accounts, that generally process no more than one net redemption and one net purchase
transaction each day.
Class
R5 and R6 shares of the Funds are also available to institutional investors.
Institutional investors are: banks, trust companies, collective trust funds, entities acting for the account of a public entity (e.g.,
Taft-Hartley funds, states, cities or government agencies), funds of funds or other pooled investment vehicles, 529 college savings plans,
financial intermediaries and corporations investing for their own accounts, endowments and foundations. For information regarding investment
minimums for Class R5 and R6 shares, please see “Minimum Investments” below.
Class
R6 shares of the Funds are also available through an intermediary that
has agreed with Invesco Distributors, Inc. to make such shares
A-2 The
Invesco Funds
available
for use in retail omnibus accounts that generally process no more than one net redemption and one net purchase transaction each day.
The
Invesco Master Loan Fund is only available for purchase by other Funds
in the Invesco fund family and other Invesco pooled investment vehicles.
Shareholders
eligible to purchase Class R6 Shares must meet the requirements
specified by their intermediary. Not all intermediaries offer Class R6 Shares to their customers.
Class S
Shares
Class S
shares are limited to investors who purchase shares with the proceeds received from a systematic contractual investment plan redemption
within the 12 months prior to purchasing Class S shares, and who purchase through an approved financial intermediary that has
an agreement with the distributor to sell Class S shares. Class S shares are not otherwise sold to members of the general public.
An investor purchasing Class S shares will not pay an initial sales charge. The investor will no longer be eligible to purchase additional
Class S shares at that point where the value of the contributions to the prior systematic contractual investment plan combined with
the subsequent Class S share contributions equals the face amount of what would have been the investor’s systematic contractual
investment plan under the 30-year investment option. The face amount of a systematic contractual investment plan is the combined total
of all scheduled monthly investments under that plan. For a plan with a scheduled monthly investment of $100.00, the face amount would
have been $36,000.00 under the 30-year extended investment option.
Class Y
Shares
Class
Y shares are available to (i) investors who purchase through an account that is charged an asset-based fee or commission by a financial
intermediary, including through brokerage platforms, where a broker is acting as the investor’s agent, that may require the payment
by the investor of a commission and/or other form of compensation to that broker, (ii) endowments, foundations, or Employer Sponsored
Retirement and Benefit Plans (with the exception of “Solo 401(k)” Plans and 403(b) custodial accounts held directly at Invesco),
(iii) banks or bank trust departments acting on their own behalf or as trustee or manager for trust accounts, or (iv) any current, former
or retired trustee, director, officer or employee (or immediate family members of a current, former or retired trustee, director, officer
or employee) of any Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
Subject
to any conditions or limitations imposed on the servicing of Class
Y shares by your financial adviser, if you received Class Y shares as a result of a merger or reorganization of a predecessor fund into
any of the Funds, you will be permitted to make additional Class Y share purchases. In addition, you will be permitted to make additional
Class Y shares purchases if you owned Class Y shares in a “Solo 401(k)” Plan or 403(b) custodial account held directly at
Invesco if you held such shares in your account on or prior to May 24, 2019.
Investor
Class Shares
Investor
Class shares are sold with no initial sales charge and have a maximum 12b-1 fee of 0.25%. Only the following persons may purchase Investor
Class shares:
◾
Investors
who established accounts prior to April 1, 2002, in Investor Class shares with Invesco Distributors, Inc. (Invesco Distributors) who have
continuously maintained an account in Investor Class shares (this includes anyone listed in the registration of an account, such as a
joint owner, trustee or custodian, and immediate family members of such persons) without a designated intermediary. These investors are
referred to as “Investor Class grandfathered investors.”
◾
Customers
of a financial intermediary that has had an agreement with the Funds’ distributor or any Funds that offered Investor Class shares
prior to April 1, 2002, that has continuously maintained such agreement. These intermediaries are referred to as “Investor
Class grandfathered intermediaries.”
◾
Any
current, former or retired trustee, director, officer or employee (or immediate family member of a current, former or retired trustee,
director, officer or employee) of any Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
For
additional shareholder eligibility requirements with respect to Invesco
Premier Portfolio, please see “Shareholder Account Information – Purchasing Shares and Shareholder Eligibility – Invesco
Premier Portfolio.”
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.
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 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
A-4 The
Invesco Funds
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.
Merrill
Lynch
Shareholders
purchasing Fund shares through a Merrill
Lynch platform
or account will be eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at Merrill Lynch
◾
Employer-sponsored
retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to fund those plans,
provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the plan;
◾
Shares
purchased by a 529 Plan (does not include 529 Plan unit or 529-specific share classes or equivalents);
◾
Shares
purchased through a Merrill Lynch affiliated investment advisory program;
◾
Shares
exchanged due to the holdings moving from a Merrill Lynch affiliated investment advisory program to a Merrill Lynch brokerage (non-advisory)
account pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers;
◾
Shares
purchased by third party investment advisors on behalf of their advisory clients through Merrill Lynch’s platform;
◾
Shares
of funds purchased through the Merrill Edge Self-Directed platform (if applicable);
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not
any other fund within the fund family);
◾
Shares
exchanged from Class C (i.e.
level-load) shares of the same fund pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers;
◾
Employees
and registered representatives of Merrill Lynch or its affiliates and their family members;
◾
Directors
or Trustees of the Fund, and employees of the Fund’s investment adviser or any of its affiliates, as described in this prospectus;
and
◾
Eligible
shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days
following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to
a front-end or deferred sales load (known as Rights of Reinstatement). Automated transactions (i.e. systematic purchases and withdrawals)
and purchases made after shares are automatically sold to pay Merrill Lynch’s account maintenance fees are not eligible for reinstatement.
◾
CDSC
Waivers on A and C Shares available at Merrill Lynch
◾
Death
or disability of the shareholder;
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund’s prospectus;
◾
Return
of excess contributions from an IRA Account;
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts pursuant to the Internal Revenue Code;
◾
Shares
sold to pay Merrill Lynch fees but only if the transaction is initiated by Merrill Lynch;
◾
Shares
acquired through a right of reinstatement;
◾
Shares
held in retirement brokerage accounts, that are converted to a lower cost share class due to transfer to a fee based account or platform
(applicable to A and C shares only); and
◾
Shares
received through an exchange due to the holdings moving from a Merrill Lynch affiliated investment advisory program to a Merrill Lynch
brokerage (non-advisory) account pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers.
◾
Front-end
load Discounts Available at Merrill Lynch: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this prospectus;
◾
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts as described in the Fund’s prospectus will be automatically
calculated based on the aggregated holding of fund family assets held by accounts (including 529 program holdings, where applicable) within
the purchaser’s household at Merrill Lynch. Eligible fund family assets not held at Merrill Lynch may be included in the ROA calculation
only if the shareholder notifies his or her financial advisor about such assets; and
◾
Letters
of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Merrill Lynch, over
a 13-month period of time (if applicable).
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).
A-5 The
Invesco Funds
Morgan
Stanley Wealth Management
Shareholders
purchasing Fund shares through a Morgan Stanley
Wealth Management transactional brokerage account will be eligible
only for the following front-end sales charge waivers with respect to Class A shares, which may differ from and may be more limited than
those disclosed elsewhere in this Fund’s Prospectus or SAI.
◾
Front-end
Sales Charge Waivers on Class A Shares available at Morgan Stanley Wealth Management
◾
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and
defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs, SAR-SEPs
or Keogh plans;
◾
Morgan
Stanley employee and employee-related accounts according to Morgan Stanley’s account linking rules;
◾
Shares
purchased through reinvestment of dividends and capital gains distributions when purchasing shares of the same fund;
◾
Shares
purchased through a Morgan Stanley self-directed brokerage account;
◾
Class
C (i.e., level-load) shares that are no longer subject to a contingent deferred sales charge and are converted to Class A shares of the
same fund pursuant to Morgan Stanley Wealth Management’s share class conversion program; and
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (i) the repurchase occurs within 90 days following the
redemption, (ii) the redemption and purchase occur in the same account, and (iii) redeemed shares were subject to a front-end or deferred
sales charge.
Raymond
James Financial Services, Inc.
Shareholders
purchasing Fund shares through a Raymond
James Financial Services, Inc., Raymond James affiliates and each
entity’s affiliates (Raymond James) platform or account, or through an introducing broker-dealer or independent registered investment
adviser for which Raymond James provides trade execution, clearance, and/or custody services, will be eligible only for the following
load waivers (front-end sales charge waivers and contingent deferred, or back-end, sales charge waivers) and discounts, which may differ
from those disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
sales load waivers on Class A shares available at Raymond James
◾
Shares
purchased in an investment advisory program.
◾
Shares
purchased within the same fund family through a systematic reinvestment of capital gains distributions and dividend distributions.
◾
Employees
and registered representatives of Raymond James or its affiliates and their family members as designated by Raymond James.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (known as Rights of Reinstatement).
◾
A
shareholder in the Fund’s Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate
share class) of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures
of Raymond James.
◾
CDSC
Waivers on Classes A and C shares available at Raymond James
◾
Death
or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the fund’s prospectus.
◾
Return
of excess contributions from an IRA Account.
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based
on applicable IRS regulations as described in the fund’s prospectus.
◾
Shares
sold to pay Raymond James fees but only if the transaction is initiated by Raymond James.
◾
Shares
acquired through a right of reinstatement.
◾
Front-end
load discounts available at Raymond James: breakpoints, rights of accumulation, and/or letters of intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of
fund family assets held by accounts within the purchaser’s household at Raymond James. Eligible fund family assets not held at Raymond
James may be included in the calculation of rights of accumulation only if the shareholder notifies his or her financial advisor about
such assets.
◾
Letters
of intent which allow for breakpoint discounts based on anticipated purchases within a fund family, over a 13-month time period. Eligible
fund family assets not held at Raymond James may be included in the calculation of letters of intent only if the shareholder notifies
his or her financial advisor about such assets.
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.
A-6 The
Invesco Funds
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.
◾
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.
Oppenheimer
& Co. Inc. (“OPCO”)
Shareholders
purchasing Fund shares through an OPCO
platform or account are eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund's prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at OPCO
◾
Employer-sponsored
retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to
fund
those plans, provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the
plan
◾
Shares
purchased by or through a 529 Plan
◾
Shares
purchased through an OPCO affiliated investment advisory program
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not
any other fund within the fund family)
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (known as Rights of Reinstatement).
◾
A
shareholder in the Fund's Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate share
class) of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures of OPCO
◾
Employees
and registered representatives of OPCO or its affiliates and their family members
◾
Directors
or Trustees of the Fund, and employees of the Fund's investment adviser or any of its affiliates, as described in this prospectus
◾
CDSC
Waivers on A and C Shares available at OPCO
◾
Death
or disability of the shareholder
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund's prospectus
◾
Return
of excess contributions from an IRA Account
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based
on applicable IRS regulations as described in the prospectus
◾
Shares
sold to pay OPCO fees but only if the transaction is initiated by OPCO Shares acquired through a right of reinstatement
◾
Front-end
load Discounts Available at OPCO: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding
of fund family assets held by accounts within the purchaser's household at OPCO. Eligible fund family assets not held at OPCO may be included
in the ROA calculation only if the shareholder notifies his or her financial advisor about such assets.
Robert
W. Baird & Co. Incorporated (“Baird”)
Shareholders
purchasing fund shares through a Baird
platform or account will only be eligible for the following sales charge waivers (front-end sales charge waivers and CDSC waivers) and
discounts, which may differ from those disclosed elsewhere in this prospectus or the SAI.
◾
Front-End
Sales Charge Waivers on Class A-shares Available at Baird
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund.
◾
Shares
purchased by employees and registered representatives of Baird or its affiliate and their family members as designated by Baird.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales charge (known as rights of reinstatement).
◾
A
shareholder in the Fund’s Class C Shares will have their shares converted at net asset value to Class A shares of the fund if the
shares are no longer subject to CDSC and the conversion is in line with the policies and procedures of Baird.
◾
Employer-sponsored
retirement plans or charitable accounts in a transactional brokerage account at Baird, including 401(k) plans, 457 plans, employer-sponsored
403(b) plans, profit sharing and money
A-7 The
Invesco Funds
purchase
pension plans and defined benefit plans. For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs,
Simple IRAs or SAR-SEPs.
◾
CDSC
Waivers on Classes A and C shares Available at Baird
◾
Shares
sold due to death or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund’s Prospectus.
◾
Return
of excess contributions from an IRA Account.
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching age 72 as described in
the Fund’s prospectus.
◾
Shares
sold to pay Baird fees but only if the transaction is initiated by Baird.
◾
Shares
acquired through a right of reinstatement.
◾
Front-End
Sales Charge Discounts Available at Baird: Breakpoints, Rights of Accumulation and/or letters of intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of
fund family assets held by accounts within the purchaser’s household at Baird. Eligible fund family assets not held at Baird may
be included in the rights of accumulation calculation only if the shareholder notifies his or her financial advisor about such assets.
◾
Letters
of Intent (LOI) allow for breakpoint discounts based on anticipated purchases of within a fund family through Baird, over a 13-month period
of time.
Edward
D. Jones & Co., L.P. (“Edward Jones”)
Policies
Regarding Transactions Through Edward Jones
The
following information has been provided by Edward Jones:
The
following information supersedes prior information with respect to transactions
and positions held in fund shares through an Edward Jones system. Shareholders purchasing Fund shares through the Edward
Jones commission
and fee-based platforms will be eligible for the following load waivers (front- end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund's prospectus or statement of additional
information (“SAI”). 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 (including holdings of 529 Plans where Invesco serves as primary distributor), 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.
◾
Front-end
sales load waivers on Class A shares available at Edward Jones
◾
Associates
of Edward Jones and its affiliates and their family members who are 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: 1) the proceeds are
from the sale of shares within 60 days of the purchase, and 2) the sale and purchase are made in the same share class and the same account
or the purchase is made in an individual retirement account with proceeds from liquidations in a non-retirement account.
◾
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.
◾
CDSC
Waivers on Classes A and C shares available at Edward Jones
◾
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
sold 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 the qualified age based on applicable IRS regulations.
◾
Shares
sold 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 Minimum Balances, as described below.
◾
Front-end
load discounts available at Edward Jones: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoint
pricing, otherwise known as volume pricing, at dollar thresholds as described in the prospectus.
◾
Rights
of Accumulation (“ROA”) which entitles the shareholder to the applicable sales charge on a purchase of Class A shares will
be determined by taking into account all share classes (except certain money market funds and any assets held in group retirement plans)
of Invesco Funds (including holdings of 529 Plans where Invesco serves as primary distributor) 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).
◾
Letters
of Intent (“LOI”) allow shareholders to receive 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.
Other
Important Information Regarding Transactions Through Edward
Jones
Minimum
Purchase Amounts
•
Initial
purchase minimum: $250
•
Subsequent
purchase minimum: none
A-8 The
Invesco Funds
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.
Stifel,
Nicolaus & Company (“Stifel”)
Shareholders
purchasing Fund shares through a Stifel
platform or account will be eligible only for the following front-end sales charge waivers and discounts, which may differ from those
disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at Stifel: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this 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 Stifel. Eligible
fund family assets not held at Stifel may be included in the ROA calculation only if the shareholder notifies his or her financial advisor
about such assets; and
◾
Letters
of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Stifel, over a 13-month
period of time (if applicable).
◾
Shares
converted from Class C (i.e. level-load) shares of the same fund pursuant to Stifel policies relating to sales load discounts and waivers.
PFS
Investments Inc. (“PFSI”)
Policies
Regarding Transactions Through PFSI
The
following information supersedes all prior information with respect to transactions and positions held in fund shares purchased through
PFSI and held on the mutual fund platform of its affiliate, Primerica Shareholder Services (“PSS”). Clients of PFSI (also
referred to as “shareholders”) purchasing fund shares on the PSS platform are eligible only for the following share classes,
sales charge discounts (also referred to as “breakpoints”) and waivers, which can differ from share classes, discounts and
waivers described elsewhere in this prospectus or the related statement of additional information (“SAI”) or through another
broker-dealer. In all instances, it is the shareholder’s responsibility to inform PFSI at the time of a purchase of all holdings
of Invesco Funds on the PSS platform, or other facts qualifying the purchaser for discounts or waivers. PFSI may request reasonable documentation
of such facts, and condition the granting of any discount or waiver on the timely receipt of such documents. Shareholders should contact
PSS if they have questions regarding their eligibility for these discounts and waivers.
Share
Classes
◾
Class
A shares: in non-retirement accounts, individual retirement accounts (IRA), SEP IRAs, SIMPLE IRAs, Keogh Plans, and all other account
types unless expressly provided for below.
◾
Class
C shares: only in accounts with existing Class C share holdings.
Breakpoints
◾
Breakpoint
pricing at dollar thresholds as described in the prospectus of the fund you are purchasing.
Rights
of Accumulation (“ROA”)
◾
The
applicable sales charge on a purchase of Class A shares is determined by taking into account all share classes (except any assets held
in group retirement plans) of Invesco Funds held by the shareholder on the PSS Platform. The inclusion of eligible fund family assets
in the ROA calculation is dependent on the shareholder notifying PFSI of such assets at the time of calculation. Shares of money market
funds are
included
only if such shares were acquired in exchange for shares of another Invesco Fund purchased with a sales charge. No shares of Invesco Funds
held by the shareholder away from the PSS platform will be granted ROA with shares of any Invesco Fund purchased on the PSS platform.
◾
Any
SEP IRA plan, any SIMPLE IRA plan or any Payroll Deduction plan (“PDP”) on the PSS platform will be defaulted to plan-level
grouping for purposes of ROA, which allows each participating employee ROA with all other eligible shares held in plan accounts on the
PSS platform. At any time, a participating employee may elect to exercise a one-time option to change grouping for purposes of ROA to
shareholder- level grouping, which allows the plan account of the electing employee ROA with her other eligible holdings on the PSS platform,
but not with all other eligible participant holdings in the plan. Eligible shares held in plan accounts electing shareholder-level grouping
will not be available for purposes of ROA to plan accounts electing plan-level grouping.
◾
ROA
is determined by calculating the higher of cost minus redemptions or current market value (current shares x NAV).
Letter
of Intent (“LOI”)
◾
By
executing a LOI, shareholders can receive the sales charge and breakpoint discounts for purchases shareholders intend to make over a 13-month
period through PFSI, from the date PSS receives the LOI. The purchase price of the LOI is determined by calculating the higher of cost
or market value of qualifying holdings at LOI initiation in combination with the dollar amount the shareholder intends to invest over
a 13-month period to arrive at total investment for purposes of determining any breakpoint discount and the applicable front-end sales
charge. Each purchase the shareholder makes during that 13-month period will receive the sales charge and breakpoint discount that applies
to the projected total investment.
◾
Only
holdings of Invesco Funds on the PSS platform are eligible for inclusion in the LOI calculation and the shareholder must notify PFSI of
all eligible assets at the time of calculation.
◾
Purchases
made before the LOI is received by PSS are not adjusted under the LOI, and the LOI will not reduce any sales charge previously paid. Sales
charges will be automatically adjusted if the total purchases required by the LOI are not met.
◾
If
an employer maintaining a SEP IRA plan, SIMPLE IRA plan or non-IRA PDP on the PSS platform has elected to establish or change ROA for
the accounts associated with the plan to a plan-level grouping, LOIs will also be at the plan-level and may only be established by the
employer. LOIs are not available to PDP IRA plans on the PSS platform with plan-level grouping for purposes of ROA, but are available
to any participating employee that elects shareholder-level grouping for purposes of ROA.
Sales
Charge Waivers
Sales
charges are waived for the following shareholders and in the following
situations:
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment.
◾
Shares
purchased with the proceeds of redeemed shares of the same fund family so long as the following conditions are met: 1) the proceeds are
from the sale of shares within 90 days of the purchase, 2) the sale and purchase are made in the same share class and the same account
or the purchase is made in an individual retirement account with proceeds from liquidations in a non-retirement account, and 3) the redeemed
shares were subject to a front-end or deferred sales load, Automated transactions (i.e. systematic purchases and withdrawals), full or
partial transfers or rollovers of retirement accounts, and purchases made after shares are automatically sold to pay account maintenance
fees are not eligible for this sales charge waiver.
◾
Shares
exchanged into Class A shares from another share class so long as the exchange is into the same fund and was initiated at the discretion
of PFSI. PFSI is responsible for any remaining CDSC due to the fund company, if applicable. Any future purchases are subject to the applicable
sales charge as disclosed in the prospectus.
Policies
Regarding Fund Purchases Through PFSI That Are Not Held
on the PSS Platform
A-9 The
Invesco Funds
◾
Class
R shares
are available through PFSI only in 401(k) plans covering a business owner with no employees, commonly referred to as a one-participant
401(k) plan or solo 401(k).
UBS
Financial Services Inc. (“UBS”)
Pursuant
to an agreement with the Distributor, UBS may offer Class Y
shares
to its retail brokerage clients whose shares are held in omnibus
accounts at UBS, or its designee. For these clients, UBS may charge commissions or transaction fees with respect to brokerage transactions
in Class Y shares. The
minimum investment for Class Y shares is waived for transactions through such brokerage platforms at UBS. Please contact your UBS representative
for more information about these fees and other eligibility requirements.
Qualifying
for Reduced Sales Charges and Sales Charge Exceptions
The
following types of accounts qualify for reduced sales charges or sales charge exceptions under ROAs and LOIs:
1.
an
individual account owner;
2.
immediate
family of the individual account owner (which includes the individual’s spouse or domestic partner; the individual’s children,
step-children or grandchildren; the spouse or domestic partner of the individual’s children, step-children or grandchildren; the
individual’s parents and step-parents; the parents or step-parents of the individual’s spouse or domestic partner; the individual’s
grandparents; and the individual’s siblings);
3.
a
Retirement and Benefit Plan so long as the plan is established exclusively for the benefit of an individual account owner; and
4.
a
Coverdell Education Savings Account (Coverdell ESA), maintained pursuant to Section 530 of the Code (in either case, the account
must be established by an individual account owner or have an individual account owner named as the beneficiary thereof).
Alternatively,
an Employer Sponsored Retirement and Benefit Plan (but not including
plans utilizing the Invesco 403(b)(7) Custodial Account program, or the individual custodial accounts thereunder) or Employer Sponsored
IRA may be eligible to purchase shares pursuant to a ROA at the plan level, and receive a reduced applicable initial sales charge for
a new purchase based on the total value of the current purchase and the value of other shares owned by the plan’s participants if:
a)
the
employer or plan sponsor submits all contributions for all participating employees in a single contribution transmittal (the Invesco Funds
will not accept separate contributions submitted with respect to individual participants);
b)
each
transmittal is accompanied by checks or wire transfers; and
c)
if
the Invesco Funds are expected to carry separate accounts in the names of each of the plan participants, (i) the employer or plan
sponsor notifies Invesco Distributors or its designee in writing that the separate accounts of all plan participants should be linked,
and (ii) all new participant accounts are established by submitting an appropriate Account Application on behalf of each new participant
with the contribution transmittal.
Participant
accounts in a retirement plan that are eligible to purchase shares
pursuant to a ROA at the plan level may not also be considered eligible to do so for the benefit of an individual account owner.
In
all instances, it is the purchaser’s responsibility to notify Invesco Distributors
or its designee of any relationship or other facts qualifying the purchaser as eligible for reduced sales charges and/or sales charge
exceptions and to provide all necessary documentation of such facts in order to qualify for reduced sales charges or sales charge exceptions.
For additional information on linking accounts to qualify for ROA or LOI, please see the Funds’ SAI.
Purchases
of Class A shares of Invesco Conservative Income Fund, Invesco
Government Money Market Fund and Invesco Short Term Municipal Fund, Class AX shares or Invesco Cash Reserve Shares of Invesco Government
Money Market Fund and Invesco U.S. Government Money Portfolio, as applicable, or Investor Class shares of any Fund will not be
taken
into account in determining whether a purchase qualifies for a reduction in initial sales charges pursuant to ROAs or LOIs.
Rights
of Accumulation
Purchasers
that qualify for ROA may combine new purchases of Class A shares of a Fund with shares of the Fund or other open-end Invesco Funds
currently owned (Class A, C, IB, IC, P, R, S or Y) for the purpose of qualifying for the lower initial sales charge rates that apply
to larger purchases. The applicable initial sales charge for the new purchase will be based on the total of your current purchase and
the value of other shares owned based on their current public offering price. The Funds’ transfer agent may automatically link certain
accounts registered in the same name with the same taxpayer identification number for the purpose of qualifying you for lower initial
sales charge rates.
Letters
of Intent
Under
a LOI, you commit to purchase a specified dollar amount of Class A shares of one or more Funds during a 13-month period. The amount
you agree to purchase determines the initial sales charge you pay. If the full amount committed to in the LOI is not invested by the end
of the 13-month period, your account will generally be assessed the higher initial sales charge that would normally be applicable to the
total amount actually invested. Shares equal in value to 5% of the intended purchase amount will be held in escrow for this purpose.
Reinstatement
Following Redemption
If
you redeem any class of shares of a Fund, you may reinvest all or a portion of the proceeds from the redemption (and may include that
amount necessary to acquire a fractional Share to round off his or her purchase to the next full Share) in the same share class of any
Fund within 180 days of the redemption without paying an initial sales charge. Class P, S, and Y redemptions may be reinvested into Class
A shares without an initial sales charge.
This
reinstatement privilege does not apply to a purchase made through a
regularly scheduled automatic investment plan, such as a purchase by a regularly scheduled payroll deduction or transfer from a bank account.
This
reinstatement privilege shall be suspended for the period of time in which
a purchase block is in place on a shareholder’s account. Please see “Purchase Blocking Policy” discussed below.
In
order to take advantage of this reinstatement privilege, you must inform
your financial adviser or the Funds’ transfer agent that you wish to do so at the time of your reinvestment.
Contingent
Deferred Sales Charges (CDSCs)
CDSCs
on Class A Shares and Invesco Cash Reserve Shares
Any
shares of a Large Purchase of Class A shares redeemed prior to 18 months after the date of purchase will be subject to a CDSC of 1% with
the exception of Class A shares of Invesco Conservative Income Fund and Invesco Short Term Municipal Fund which do not have CDSCs on redemptions.
If
Invesco Distributors pays a concession to a financial intermediary in connection
with a Large Purchase of Class A shares by an Employer Sponsored Retirement and Benefit Plan or SIMPLE IRA Plan, the Class A shares will
be subject to a 1% CDSC if all of the Employer Sponsored Retirement and Benefit Plan’s or SIMPLE IRA’s shares are redeemed
within one year from the date of initial purchase.
If
you acquire Invesco Cash Reserve Shares or Class A shares of Invesco
Government Money Market Fund or Invesco Cash Reserve Shares of Invesco U.S. Government Money Portfolio through an exchange involving Class
A shares that were subject to a CDSC, the shares acquired as a result of the exchange will continue to be subject to that same CDSC.
CDSCs
on Class C Shares
Class
C shares are subject to a CDSC; however, the CDSC shall not apply to the purchases of Class C shares where the selling broker-dealer was
not paid a commission at the time of purchase. If you redeem your shares during the first year since your purchase has been made you will
be
A-10 The
Invesco Funds
assessed
a CDSC as disclosed in the “Fees and Expenses - Shareholder Fees” table in the prospectus, unless you qualify for one of the
CDSC exceptions outlined below.
CDSCs
on Class C Shares – Employer Sponsored Retirement and Benefit Plans and Employer Sponsored IRAs
Class
C shares are subject to a 1.00% CDSC at the time of redemption if all of the Employer Sponsored Retirement and Benefit Plan’s or
Employer Sponsored IRA’s shares are redeemed within one year from the date of initial purchase.
CDSCs
on Class C Shares of Invesco Short Term Bond Fund
Effective
November 1, 2021, Class C shares of Invesco Short Term Bond Fund are subject to a CDSC. If you acquire Class C shares of any other Fund
as a result of an exchange involving Class C shares of Invesco Short Term Bond Fund that were not subject to a CDSC prior to November
1, 2021, then the shares acquired as a result of the exchange will not be subject to a CDSC.
Computing
a CDSC
The
CDSC on redemptions of shares is computed based on the lower of their original purchase price or current net asset value, net of reinvested
dividends and capital gains distributions. In determining whether to charge a CDSC, shares are accounted for on a first-in, first-out
basis, which means that you will redeem shares on which there is no CDSC first, and then shares in the order of their purchase.
CDSC
Exceptions
Investors
who own shares that are otherwise subject to a CDSC will not pay a CDSC in the following circumstances:
◾
If
you participate in the Systematic Redemption Plan and withdraw up to 12% of the value of your shares that are subject to a CDSC in any
twelve-month period.
◾
If
you redeem shares to pay account fees.
◾
If
you are the executor, administrator or beneficiary of an estate or are otherwise entitled to assets remaining in an account following
the death or post-purchase disability of a shareholder or beneficial owner and you choose to redeem those shares.
There
are other circumstances under which you may be able to redeem shares
without paying CDSCs. For additional information about such circumstances, please see the Appendix entitled “Purchase, Redemption
and Pricing of Shares” in each Fund’s SAI.
Shares
acquired through the reinvestment of dividends and distributions are
not subject to CDSCs.
The
following share classes are sold without a CDSC:
◾
Class
A2 shares of Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund
◾
Class
A shares of Invesco Government Money Market Fund
◾
Invesco
Cash Reserve Shares of Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio
◾
Investor
Class shares of any Fund
◾
Class
P shares of Invesco Summit Fund
◾
Class
R5 and R6 shares of any Fund
◾
Class
R shares of any Fund
◾
Class
S shares of Invesco Charter Fund, Invesco Select Risk: Moderately Conservative Investor Fund, Invesco Select Risk: Growth Investor Fund,
Invesco Select Risk: Moderate Investor Fund and Invesco Summit Fund
◾
Class
Y shares of any Fund
Purchasing
Shares and Shareholder Eligibility
Invesco
Premier U.S. Government Money Portfolio
For
Invesco Premier U.S. Government Money Portfolio, you may purchase shares using one of the options below. Unless the Fund closes early
on a business day, the Fund’s transfer agent will generally accept any purchase order placed until 5:00 p.m. Eastern Time on a business
day and may accept a purchase order placed until 5:30 p.m. Eastern Time on a business
day.
If you wish to place an order between 5:00 p.m. and 5:30 p.m. Eastern Time on a business day, you must place such order by telephone;
however, the Fund’s transfer agent reserves the right to reject or limit the amount of orders placed during this time. If the Fund
closes early on a business day, the Fund’s transfer agent must receive your purchase order prior to such closing time. Purchase
orders will not be processed unless the account application and purchase payment are received in good order. In accordance with the USA
PATRIOT Act, if you fail to provide all the required information requested in the current account application, your purchase order will
not be processed. Additionally, federal law requires that the Fund verifies and records your identifying information.
Invesco
Premier Portfolio
Only
accounts beneficially owned by natural persons will be permitted to retain their shares. The Fund has implemented policies and procedures
reasonably designed to limit all beneficial owners of the Fund to natural persons, and investments in the Fund are limited to accounts
beneficially owned by natural persons. Natural persons may invest in the Fund through certain tax-advantaged savings accounts, trusts
and other retirement and investment accounts, which may include, among others: participant-directed defined contribution plans; individual
retirement accounts; simplified employee pension arrangements; simple retirement accounts; custodial accounts; deferred compensation plans
for government or tax-exempt organization employees; Archer medical savings accounts; college savings plans; health savings account plans;
ordinary trusts and estates of natural persons; or certain other retirement and investment accounts with ultimate investment authority
held by the natural person beneficial owner, notwithstanding having an institutional decision maker making day-to-day decisions (e.g.,
a plan sponsor in certain retirement arrangements or an investment adviser managing discretionary investment accounts).
Further,
financial intermediaries may only submit purchase orders if they have
implemented policies and procedures reasonably designed to limit all investors on behalf of whom they submit orders to accounts beneficially
owned by natural persons. Financial intermediaries may be required to provide a written statement or other representation that they have
in place, and operate in compliance with, such policies and procedures prior to submitting purchase orders. Such policies and procedures
may include provisions for the financial intermediary to promptly report to the Fund or the transfer agent the identification of any shareholder
of the Fund that does not qualify as a natural person of whom they are aware and promptly take steps to redeem any such shareholder’s
shares of the Fund upon request by the Fund or the transfer agent, in such manner as it may reasonably request. The Fund may involuntarily
redeem any such shareholder who does not voluntarily redeem their shares.
Natural
persons may purchase shares using one of the options below. For
all classes of the Fund, other than Investor Class shares, unless the Fund closes early on a business day, the Fund’s transfer agent
will generally accept any purchase order placed until 5:00 p.m. Eastern Time on a business day and may accept a purchase order placed
until 5:30 p.m. Eastern Time on a business day. If you wish to place an order between 5:00 p.m. and 5:30 p.m. Eastern Time on a business
day, you must place such order by telephone; or send your request by a pre-arranged Liquidity Link data transmission however, the Fund’s
transfer agent reserves the right to reject or limit the amount of orders placed during this time. For Investor Class shares of the Fund,
unless the Fund closes early on a business day, the Fund’s transfer agent will generally accept any purchase order placed until
4:00 p.m. Eastern Time on a business day and may accept a purchase order placed until 4:30 p.m. Eastern Time on a business day. If you
wish to place an order between 4:00 p.m. and 4:30 p.m. Eastern Time on a business day, you must place such order by telephone; however,
the Fund’s transfer agent reserves the right to reject or limit the amount of orders placed during this time. If the Fund closes
early on a business day, the Fund’s transfer agent must receive your purchase order prior to such closing time. Purchase orders
will not be processed unless the account application and purchase payment are received in good order. In accordance with the USA PATRIOT
Act, if you fail to provide all the required information requested in the current account application, your purchase order will not be
A-11 The
Invesco Funds
processed.
Additionally, federal law requires that the Fund verify and record your identifying information.
Minimum Investments
There
are no minimum investments for Class P or S shares for fund accounts. The minimum investments for Class A, C, R, Y, Investor Class and
Invesco Cash Reserve shares for fund accounts are as follows:
|
Type
of Account |
Initial
Investment
Per
Fund |
Additional
Investments
Per
Fund |
|
Asset
or fee-based accounts managed by your financial
adviser
|
None
|
None
|
|
| ||
|
Employer
Sponsored Retirement and Benefit Plans and
Employer
Sponsored IRAs |
None
|
None
|
|
| ||
|
IRAs
and Coverdell ESAs if the new investor is
purchasing
shares through a systematic purchase plan |
$25
|
$25
|
|
| ||
|
All
other accounts if the investor is purchasing shares
through
a systematic purchase plan |
50
|
50
|
|
| ||
|
IRAs
and Coverdell ESAs |
250
|
25
|
|
| ||
|
All
other accounts |
1,000
|
50
|
|
| ||
Invesco
Distributors or its designee has the discretion to accept orders on behalf of clients for lesser amounts.
The
minimum investments for Class R5 and R6 shares are as follows:
There
is no minimum initial investment for an Employer Sponsored Retirement
and Benefit Plan investing through a retirement platform that administers at least $2.5 billion in retirement plan assets. All other Employer
Sponsored Retirement and Benefit Plans must meet a minimum initial investment of at least $1 million in each Fund in which it invests.
The
minimum initial investment in each share class for all other institutional
investors is $1 million, unless such investment is made by (i) an investment company, as defined under the 1940 Act, as amended, that
is part of a family of investment companies which own in the aggregate at least $100 million in securities, or (ii) an account established
with a 529 college savings plan managed by Invesco, in which case there is no minimum initial investment.
There
are no minimum investment amounts for Class R6 shares held through
retail omnibus accounts where the intermediary:
◾
generally
charges an asset-based fee or commission in addition to those described in this prospectus; and
◾
maintains
Class R6 shares and makes them available to retail investors.
A
financial intermediary may impose different investment minimums than
those set forth above. The Fund is not responsible for any investment minimums imposed by financial intermediaries or for notifying shareholders
of any changes to them. See “Waivers Available Through Certain Financial Intermediaries and Other Financial Intermediary-Specific
Arrangements” for more information on certain intermediary-specific investment minimums. Please consult with your financial intermediary
if you have any questions regarding their policies.
How
to Purchase Shares*
|
|
Opening
An Account |
Adding
To An Account |
|
Through
a
Financial
Adviser
or
Financial
Intermediary*
|
Contact
your financial adviser or
financial
intermediary. |
Contact
your financial adviser or
financial
intermediary. |
|
By
Mail |
Mail
completed account application
and
check to the Funds’ transfer
agent,
Invesco
Investment Services, Inc.
P.O.
Box 219078,
Kansas
City, MO 64121-9078.
The
Funds’ transfer agent does NOT
accept
the following types of
payments:
Credit Card Checks,
Temporary/Starter
Checks, Third
Party
Checks, and Cash. |
Mail
your check and the remittance
slip
from your confirmation
statement
to the Funds’ transfer
agent.
The Funds’ transfer agent
does
NOT accept the following
types
of payments: Credit Card
Checks,
Temporary/Starter Checks,
Third
Party Checks, and Cash. |
|
|
Opening
An Account |
Adding
To An Account |
|
By
Wire* |
Mail
completed account application
to
the Funds’ transfer agent. Call
the
Funds’ transfer agent at (800)
959-4246
to receive a reference
number.
Then, use the wire
instructions
provided below. |
Call
the Funds’ transfer agent to
receive
a reference number. Then,
use
the wire instructions provided
below.
|
|
Wire
Instructions |
Beneficiary
Bank ABA/Routing #: 011001234
Beneficiary
Account Number: 729639
Beneficiary
Account Name: Invesco Investment Services, Inc.
RFB:
Fund Name, Reference #
OBI:
Your Name, Account # | |
|
By
Telephone* |
Open
your account using one of the
methods
described above. |
The
Bank Account Information
option
on your completed account
application
or complete a
Systematic
Options and Bank
Information
Form. Mail the
application
or form to the Funds’
transfer
agent. Once the Funds’
transfer
agent has received the
form,
call the Funds’ transfer agent
at
the number below to place your
purchase
order. For Class R5 and
R6
shares, call the Funds’ transfer
agent
at (800) 959-4246 and wire
payment
for your purchase order in
accordance
with the wire
instructions
listed above. |
|
Automated
Investor
Line |
Open
your account using one of the
methods
described above. |
Call
the Funds’ transfer agent’s
24-hour
Automated Investor Line at
1-800-246-5463.
You may place
your
order after you have provided
the
bank instructions that will be
requested.
|
|
By
Internet |
Open
your account using one of the
methods
described above. |
Access
your account at
www.invesco.com/us.
The proper
bank
instructions must have been
provided
on your account. You may
not
purchase shares in Retirement
and
Benefit Plans on the internet. |
|
*Class
R5 and R6 shares may only be purchased through a financial intermediary or by
telephone
at (800) 959-4246. | ||
Non-retirement
retail investors, including high net worth investors investing
directly or through a financial intermediary, are not eligible for Class R5 shares. IRAs and Employer Sponsored IRAs are also not eligible
for Class R5 shares. If you hold your shares through a financial intermediary, the terms by which you purchase, redeem and exchange shares
may differ than the terms in this prospectus depending upon the policies and procedures of your financial intermediary.
Purchase
orders will not be processed unless the account application and
purchase payment are received in good order. In accordance with the USA PATRIOT Act, if you fail to provide all the required information
requested in the current account application, your purchase order will not be processed. Additionally, federal law requires that the Funds
verify and record your identifying information.
Systematic
Purchase Plan (Available for all classes except Class R5 and R6 shares)
You
can arrange for periodic investments in any of the Funds by authorizing the Funds’ transfer agent to withdraw the amount of your
investment from your bank account on a day or dates you specify and in an amount of at least $25 per Fund for IRAs and Coverdell ESAs,
and at least $50 per Fund for all other types of accounts (a Systematic Purchase Plan). You may stop the Systematic Purchase Plan at any
time by giving the Funds’ transfer agent notice ten days prior to your next scheduled withdrawal. Certain financial advisers and
other financial intermediaries may also offer systematic purchase plans.
A-12 The
Invesco Funds
Dollar
Cost Averaging (Available for all classes except Class R5 and R6 shares)
Dollar
Cost Averaging allows you to make automatic periodic exchanges, if permitted, from one Fund to another Fund or multiple other Funds. The
account from which exchanges are to be made must have a minimum balance of $5,000 before you can use this option. Exchanges will occur
on (or about) the day of the month you specify, in the amount you specify. Dollar Cost Averaging cannot be set up for the 29th through
the 31st of the month. The minimum amount you can exchange to another Fund is $50. Your financial intermediary may offer alternative dollar
cost averaging programs with different requirements.
Automatic
Dividend and Distribution Investment
Your
dividends and distributions may be paid in cash or reinvested in the same Fund or another Fund without paying an initial sales charge.
Unless
you specify otherwise, your dividends and distributions will automatically
be reinvested in the same Fund. You must comply with the following requirements to be eligible to invest your dividends and distributions
in shares of another Fund:
◾
Your
account balance in the Fund paying the dividend or distribution must be at least $5,000; and
◾
Your
account balance in the Fund receiving the dividend or distribution must be at least $500.
If
you elect to receive your distributions by check, and the distribution amount
is $25 or less, then the amount will be automatically reinvested in the same Fund and no check will be issued. If you have elected to
receive distributions by check, and the postal service is unable to deliver checks to your address of record, then your distribution election
may be converted to having all subsequent distributions reinvested in the same Fund and no checks will be issued. With respect to certain
account types, if your check remains uncashed for six months, the Fund generally reserves the right to reinvest your distribution check
in your account at the then applicable NAV and to reinvest all subsequent distributions in shares of the Fund. Such checks will be reinvested
into the same share class of the Fund. You should contact the Funds’ transfer agent to change your distribution option, and your
request to do so must be received by the Funds’ transfer agent before the record date for a distribution in order to be effective
for that distribution. No interest will accrue on amounts represented by uncashed distribution checks.
Redeeming
Shares*
The
Funds’ transfer agent or authorized intermediary, if applicable, must receive your call before the Funds’ net asset value
determination (as defined by the applicable Fund) in order to effect the redemption at that day’s net asset value.
Your
broker or financial intermediary may charge service fees for handling
redemption transactions.
|
How
to Redeem Shares | |
|
Through
a Financial
Adviser
or Financial
Intermediary*
|
Contact
your financial adviser or financial intermediary. The Funds’
transfer
agent must receive your financial adviser’s or financial
intermediary’s
call before the Funds’ net asset value determination
(as
defined by the applicable Fund) in order to effect the redemption
at
that day’s net asset value. Please contact your financial adviser or
financial
intermediary with respect to reporting of cost basis and
available
elections for your account. |
|
By
Mail |
Send
a written request to the Funds’ transfer agent which includes: |
|
|
▪ Original
signatures of all registered owners/trustees;
▪ The
dollar value or number of shares that you wish to redeem;
▪ The
name of the Fund(s) and your account number;
▪ The
cost basis method or specific shares you wish to redeem for
tax
reporting purposes, if different than the method already on
record;
and |
|
|
▪ Signature
guarantees, if necessary (see below).
The
Funds’ transfer agent may require that you provide additional
documentation,
or information, such as corporate resolutions or
powers
of attorney, if applicable. If you are redeeming from a
Retirement
and Benefit Plan, you must complete the appropriate
distribution
form. |
|
How
to Redeem Shares | |
|
By
Telephone* |
Call
the Funds’ transfer agent at 1-800-959-4246. You will be
allowed
to redeem by telephone if:
▪ Your
redemption proceeds are to be mailed to your address on
record
(and there has been no change in your address of record
within
the last 15 days) or transferred electronically to a
pre-authorized
checking account;
▪ You
can provide proper identification information;
▪ Your
redemption proceeds do not exceed $250,000 per Fund; and
▪ You
have not previously declined the telephone redemption
privilege.
|
|
|
You
may, in limited circumstances, initiate a redemption from an
Invesco
IRA by telephone. Redemptions from Employer Sponsored
Retirement
and Benefit Plans and Employer Sponsored IRAs may be
initiated
only in writing and require the completion of the appropriate
distribution
form, as well as employer authorization. You must call the
Funds’
transfer agent before the Funds’ net asset value
determination
(as defined by the applicable Fund) in order to effect
the
redemption at that day’s net asset value. |
|
Automated
Investor Line |
Call
the Funds’ transfer agent’s 24-hour Automated Investor Line at
1-800-246-5463.
You may place your redemption order after you
have
provided the bank instructions that will be requested. |
|
By
Internet |
Place
your redemption request at www.invesco.com/us. You will be
allowed
to redeem by Internet if:
▪ You
can provide proper identification information;
▪ Your
redemption proceeds do not exceed $250,000 per Fund; and
▪ You
have already provided proper bank information.
Redemptions
from Employer Sponsored Retirement and Benefit
Plans
and Employer Sponsored IRAs may be initiated only in writing
and
require the completion of the appropriate distribution form, as
well
as employer authorization. |
|
*Class
R5 and R6 shares may only be redeemed through a financial intermediary or by
telephone
at (800) 959-4246. | |
Timing
and Method of Payment
The
Funds’ transfer agent typically expects to pay redemption proceeds to redeeming shareholders within one business day after a redemption
request is received in good order, regardless of the method a Fund uses to make such payment. However, a Fund may take up to seven days
to process a redemption request. “Good order” means that all necessary information and documentation related to the redemption
request have been provided to the Funds’ transfer agent or authorized intermediary, if applicable. If your request is not in good
order, the Funds’ transfer agent may require additional documentation in order to redeem your shares. If you redeem shares recently
purchased by check or ACH, you may be required to wait up to ten calendar days before your redemption proceeds are sent. This delay is
necessary to ensure that the purchase has cleared. You can avoid the check hold period if you pay for your shares with a certified check,
a cashier’s check or a federal wire. Payment may be postponed under unusual circumstances, as allowed by the SEC, such as when the
NYSE restricts or suspends trading.
In
addition, a temporary hold may be placed on the disbursement of redemption
proceeds from an account if there is a reasonable belief that financial exploitation of a Specified Adult (as defined below) has occurred,
is occurring, has been attempted, or will be attempted. Notice of such a delay will be provided in accordance with regulatory requirements.
This temporary hold will be for an initial period of no more than 15 business days while an internal review is performed. Should the internal
review support the belief that financial exploitation has occurred, is occurring, has been attempted or will be attempted, the temporary
hold may be extended for up to 10 additional business days. Both the initial and subsequent hold on the disbursement may be terminated
or extended by a state regulator or an agency or court of competent jurisdiction. For purposes of this paragraph, the term “Specified
Adult” refers to an individual who is (a) a natural person age 65 and older, or (b) a natural person age 18 and older who is reasonably
believed to have a mental or physical impairment that renders the individual unable to protect his or her own interests.
If
you redeem by telephone, the Funds’ transfer agent will transmit the amount
of redemption proceeds electronically to your pre-authorized bank account. Redemption checks are mailed to your address of record, via
first
A-13 The
Invesco Funds
class
U.S. mail, unless you make other arrangements with the Funds’ transfer agent.
The
Funds’ transfer agent uses reasonable procedures to confirm that instructions
communicated via telephone and the Internet are genuine, and the Funds and the Funds’ transfer agent are not liable for losses arising
from actions taken in accordance with instructions that are reasonably believed to be genuine.
A
Fund typically expects to use holdings of cash and cash equivalents and
sales of portfolio assets to meet redemption requests, both regularly and in stressed market conditions. The Funds also have the ability
to redeem in kind as further described below under “Redemptions in Kind.” Certain Funds have a line of credit,
as disclosed in such Funds’ principal investment strategy
and risk disclosures that may be used to meet redemptions in stressed market conditions.
Expedited
Redemptions (for Invesco Cash Reserve Shares of Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio only)
If
you place your redemption order by telephone, before 11:30 a.m. Eastern Time and request an expedited redemption, the Funds’ transfer
agent will transmit payment of redemption proceeds on that same day via federal wire to a bank of record on your account. If the Funds’
transfer agent receives your redemption order after 11:30 a.m. Eastern Time and before the close of the customary trading session of the
NYSE, it will transmit payment on the next business day.
Suspension
of Redemptions
The
right of redemption may be suspended or the date of payment postponed when (a) trading on the NYSE is restricted, as determined by applicable
rules and regulations of the SEC, (b) the NYSE is closed for other than customary weekend and holiday closings, (c) the SEC has by order
permitted such suspension, or (d) an emergency as determined by the SEC exists making disposition of portfolio securities or the valuation
of the net assets of the Fund not reasonably practicable. With respect to Invesco Government Money Market Fund, Invesco U.S. Government
Money Portfolio, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio, in the event that the Fund, at the end
of a business day, has invested less than 10% of its total assets in weekly liquid assets or, with respect to the retail and government
money market funds, the Fund’s price per share as computed for the purpose of distribution, redemption and repurchase, rounded to
the nearest 1%, has deviated from the stable price established by the Fund’s Board of Trustees (“Board”) or the Board,
including a majority of trustees who are not interested persons as defined in the 1940 Act, determines that such a deviation is likely
to occur, and the Board, including a majority of trustees who are not interested persons of the Fund, irrevocably has approved the liquidation
of the Fund, the Fund’s Board has the authority to suspend redemptions of Fund shares.
Liquidity
Fees and Redemption Gates
For
Invesco Premier Portfolio, if the Fund’s weekly liquid assets fall below 30% of its total assets, the Board, in its discretion,
may impose liquidity fees of up to 2% of the value of the shares redeemed and/or suspend redemptions (redemption gates). In addition,
if any such Fund’s weekly liquid assets falls below 10% of its total assets at the end of any business day, the Fund must impose
a 1% liquidity fee on shareholder redemptions unless the Board determines that not doing so is in the best interests of the Fund.
Liquidity
fees and redemption gates are most likely to be imposed, if at all,
during times of extraordinary market stress. In the event that a liquidity fee or redemption gate is imposed, the Board expects that for
the duration of its implementation and the day after which such gate or fee is terminated, the Fund would strike only one net asset value
per day, at the Fund’s last scheduled net asset value calculation time.
The
imposition and termination of a liquidity fee or redemption gate will be
reported by a Fund to the SEC on Form N-CR. Such information will also be available on the Fund’s website. In addition, a Fund will
communicate such action through a supplement to its registration statement and may further communicate such action through a press release
or by other means. If a liquidity fee is applied by the Board, it will be charged on all
redemption
orders submitted after the effective time of the imposition of the fee by the Board. Liquidity fees would reduce the amount you receive
upon redemption of your shares. In the event a Fund imposes a redemption gate, the Fund or any financial intermediary on its behalf will
not accept redemption requests until the Fund provides notice that the redemption gate has been terminated.
Redemption
requests submitted while a redemption gate is imposed will be cancelled
without further notice. If shareholders still wish to redeem their shares after a redemption gate has been lifted, they will need to submit
a new redemption request.
Liquidity
fees and redemption gates will generally be used to assist a Fund
to help preserve its market–based NAV per share. It is possible that a liquidity fee will be returned to shareholders in the form
of a distribution. The Board may, in its discretion, terminate a liquidity fee or redemption gate at any time if it believes such action
to be in the best interest of a Fund. Also, liquidity fees and redemption gates will automatically terminate at the beginning of the next
business day once a Fund’s weekly liquid assets reach at least 30% of its total assets. Redemption gates may only last up to 10
business days in any 90-day period. When a fee or a gate is in place, the Fund may elect not to permit the purchase of shares or to subject
the purchase of shares to certain conditions, which may include affirmation of the purchaser’s knowledge that a fee or a gate is
in effect. When a fee or a gate is in place, shareholders will not be permitted to exchange into or out of a Fund.
There
is some degree of uncertainty with respect to the tax treatment of liquidity
fees received by a Fund, and such tax treatment may be the subject to future IRS guidance. If a Fund receives liquidity fees, it will
consider the appropriate tax treatment of such fees to the Fund at such time.
Financial
intermediaries are required to promptly take the steps requested
by the Funds or their designees to impose or help to implement a liquidity fee or redemption gate as requested from time to time, including
the rejection of orders due to the imposition of a fee or gate or the prompt re-confirmation of orders following a notification regarding
the implementation of a fee or gate. If a liquidity fee is imposed, these steps are expected to include the submission of separate, rather
than combined, purchase and redemption orders from the time of the effectiveness of the liquidity fee or redemption gate and the submission
of such order information to the Fund or its designee prior to the next calculation of a Fund’s net asset value. Unless otherwise
agreed to between a Fund and financial intermediary, the Fund will withhold liquidity fees on behalf of financial intermediaries. With
regard to such orders, a redemption request that a Fund determines in its sole discretion has been received in good order by the Fund
or its designated agent prior to the imposition of a liquidity fee or redemption gate may be paid by the Fund despite the imposition of
a redemption gate or without the deduction of a liquidity fee. If a liquidity fee is imposed during the day, an intermediary who receives
both purchase and redemption orders from a single account holder is not required to net the purchase and redemption orders. However, the
intermediary is permitted to apply the liquidity fee to the net amount of redemptions (even if the purchase order was received prior to
the time the liquidity fee was imposed).
Where
a Financial Intermediary serves as a Fund’s agent for the purpose
of receiving orders, trades that are not transmitted to the Fund by the Financial Intermediary before the time required by the Fund or
the transfer agent may, in the Fund’s discretion, be processed on an as-of basis, and any cost or loss to the Fund or transfer agent
or their affiliates, from such transactions shall be borne exclusively by the Financial Intermediary.
Systematic
Withdrawals (Available for all classes except Class R5 and R6 shares)
You
may arrange for regular periodic withdrawals from your account in amounts equal to or greater than $50 per Fund. The Funds’ transfer
agent will redeem the appropriate number of shares from your account to provide redemption proceeds in the amount requested. You must
have a total account balance of at least $5,000 in order to establish a Systematic Redemption Plan, unless you are establishing a Required
Minimum
A-14 The
Invesco Funds
Distribution
for a Retirement and Benefit Plan. You can stop this plan at any time by giving ten days’ prior notice to the Funds’ transfer
agent.
Check
Writing
The
Funds’ transfer agent provides check writing privileges for accounts in the following Funds and share classes:
◾
Invesco
Government Money Market Fund, Invesco Cash Reserve Shares, Class AX shares, Class Y shares and Investor Class shares
◾
Invesco
U.S. Government Money Portfolio, Invesco Cash Reserve Shares and Class Y shares
◾
Invesco
Premier Portfolio, Investor Class shares
◾
Invesco
Premier U.S. Government Money Portfolio, Investor Class shares
You
may redeem shares of these Funds by writing checks in amounts of $250
or more if you have subscribed to the service by completing a Check Writing authorization form.
Check
writing privileges are not available for Retirement and Benefit Plans.
Checks are not eligible to be converted to ACH by the payee. You may not give authorization to a payee by phone to debit your account
by ACH for a debt owed to the payee.
If
you do not have a sufficient number of shares in your account to cover
the amount of the check and any applicable deferred sales charge, the check will be returned and no shares will be redeemed. Because it
is not possible to determine your account’s value in advance, you should not write a check for the entire value of your account
or try to close your account by writing a check.
A
check writing redemption request which is verifiably submitted to a Fund’s
agent before a liquidity fee or redemption gate is imposed will be considered a valid redemption and will be processed normally.
Signature
Guarantees
The
Funds’ transfer agent requires a signature guarantee in the following circumstances:
◾
When
your redemption proceeds exceed $250,000 per Fund.
◾
When
you request that redemption proceeds be paid to someone other than the registered owner of the account.
◾
When
you request that redemption proceeds be sent somewhere other than the address of record or bank of record on the account.
◾
When
you request that redemption proceeds be sent to a new address or an address that changed in the last 15 days.
The
Funds’ transfer agent will accept a guarantee of your signature by a number
of different types of financial institutions. Call the Funds’ transfer agent for additional information. Some institutions have
transaction amount maximums for these guarantees. Please check with the guarantor institution to determine whether the signature guarantee
offered will be sufficient to cover the value of your transaction request.
Redemptions
in Kind
Although
the Funds generally intend to pay redemption proceeds solely in cash, the Funds reserve the right to determine, in their sole discretion,
whether to satisfy redemption requests by making payment in securities or other property (known as a redemption in kind). Redemptions
in kind may result in transaction costs and/or market fluctuations associated with liquidating or holding the securities, respectively.
Purchases-in-Kind
You
may purchase shares of a Fund by transferring securities to a Fund in exchange for Fund shares (“in-kind purchases”). In-kind
purchases may be made only upon the Funds’ approval and determination that the securities are acceptable investments for the Fund
and are purchased consistent with the Fund’s procedures relating to in-kind purchases. The Funds reserve the right to amend or terminate
this practice at any time. You must call the Funds at (800) 959-4246 before sending any securities. Please see the SAI for additional
details.
Redemptions
by Large Shareholders
At
times, the Fund may experience adverse effects when certain large shareholders redeem large amounts of shares of the Fund. Large redemptions
may cause the Fund to sell portfolio securities at times when it would not otherwise do so. In addition, these transactions may also
accelerate
the realization of taxable income to shareholders (if applicable) if such sales of investments resulted in gains and may also increase
transaction costs and/or increase in the Fund’s expense ratio. When experiencing a redemption by a large shareholder, the Fund may
delay payment of the redemption request up to seven days to provide the investment manager with time to determine if the Fund can redeem
the request-in-kind or to consider other alternatives to lessen the harm to remaining shareholders. Under certain circumstances, however,
the Fund may be unable to delay a redemption request, which could result in the automatic processing of a large redemption that is detrimental
to the Fund and its remaining shareholders.
Redemptions
Initiated by the Funds
If
your account (Class A, C, P, S and Investor Class shares only) has been open at least one year, you have not made an additional purchase
in the account during the past six calendar months, and the value of your account falls below $500 for three consecutive months, the Funds
have the right to redeem the account after giving you 60 days’ prior written notice. You may avoid having your account redeemed
during the notice period by bringing the account value up to $500 or by initiating a Systematic Purchase Plan.
A
financial intermediary may have a different policy regarding redemptions
of accounts with small balances. The Fund is not responsible for any small account balance policies imposed by financial intermediaries
or for notifying shareholders of any changes to them. See “Waivers Available Through Certain Financial Intermediaries and Other
Financial Intermediary-Specific Arrangements” for more information on certain intermediary-specific small account balance policies.
Please consult with your financial intermediary if you have any questions regarding their policies.
If
a Fund determines that you have not provided a correct Social Security
or other tax identification number on your account application, or the Fund is not able to verify your identity as required by law, the
Fund may, at its discretion, redeem the account and distribute the proceeds to you.
In
order to separate retail investors (natural persons) and non-retail investors,
the Invesco Premier Portfolio reserve the right to redeem shares in any account that the Funds cannot confirm to their satisfaction are
beneficially owned by natural persons. The Funds will provide advance written notice of their intent to make any such involuntary redemptions.
The Funds reserve the right to redeem shares in any account that they cannot confirm to their satisfaction are beneficially owned by natural
persons, after providing advance notice.
Neither
a Fund nor its investment adviser will be responsible for any loss
in an investor’s account or tax liability resulting from an involuntary redemption.
Minimum
Account Balance (Available for all classes except Class R5 and R6 shares)
A
low balance fee of $12 per year may be deducted in the fourth quarter of each year from all accounts held in the Funds (each a Fund Account)
with a value less than the low balance amount (the Low Balance Amount) as determined from time to time by the Funds and the Adviser. The
Funds and the Adviser generally expect the Low Balance Amount to be $750, but such amount may be adjusted for any year depending on various
factors, including market conditions. The Low Balance Amount and the date on which it will be deducted from any Fund Account will be posted
on our website, www.invesco.com/us, on or about November 1 of each year. This fee will be payable to the Funds’ transfer agent by
redeeming from a Fund Account sufficient shares owned by a shareholder and will be used by the Funds’ transfer agent to offset amounts
that would otherwise be payable by the Funds to the Funds’ transfer agent under the Funds’ transfer agency agreement with
the Funds’ transfer agent. The low balance fee does not apply to participant accounts in advisory programs or to Employer Sponsored
Retirement and Benefit Plans.
Exchanging
Shares
You
may, under certain circumstances, exchange shares in one Fund for those of another Fund. An exchange is the purchase of shares in one
Fund which is paid for with the proceeds from a redemption of shares of another
A-15 The
Invesco Funds
Fund
effectuated on the same day. Any gain on the transaction may be subject to federal income tax. Accordingly, the procedures and processes
applicable to redemptions of Fund shares, as discussed under the heading “Redeeming Shares” above, will apply. Before requesting
an exchange, review the prospectus of the Fund you wish to acquire.
All
exchanges are subject to the limitations set forth in the prospectuses of
the Funds. If you wish to exchange shares of one Fund for those of another Fund, you must consult the prospectus of the Fund whose shares
you wish to acquire to determine whether the Fund is offering shares to new investors and whether you are eligible to acquire shares of
that Fund.
Permitted
Exchanges
Except
as otherwise provided herein or in the SAI, you generally may exchange your shares for shares of the same class of another Fund. The following
table shows generally permitted exchanges from one Fund to another Fund (exceptions listed below under “Exchanges Not Permitted”):
|
Exchange
From |
Exchange
To |
|
Invesco
Cash Reserve Shares |
Class
A, C, R, Investor Class |
|
| |
|
Class
A |
Class
A, Investor Class, Invesco Cash Reserve Shares* |
|
| |
|
Class
A2 |
Class
A, Investor Class, Invesco Cash Reserve Shares |
|
| |
|
Class
AX |
Class
A, AX, Investor Class, Invesco Cash Reserve Shares |
|
| |
|
Investor
Class |
Class
A, Investor Class |
|
| |
|
Class
P |
Class
A, Invesco Cash Reserve Shares |
|
| |
|
Class
S |
Class
A, S, Invesco Cash Reserve Shares |
|
| |
|
Class
C |
Class
C* |
|
| |
|
Class
CX |
Class
C, CX |
|
| |
|
Class
R |
Class
R* |
|
| |
|
Class
R5 |
Class
R5 |
|
| |
|
Class
R6 |
Class
R6 |
|
| |
|
Class
Y |
Class
Y* |
|
|
|
|
* You
may exchange Class Y shares of Invesco U.S. Government Money Portfolio for Class A, C
or
R shares of any other Fund as long as you are otherwise eligible for such share class. If you
exchange
Class Y shares of Invesco U.S. Government Money Portfolio for Class A, C or R shares
of
any other Fund, you may exchange those Class A, C or R shares back into Class Y shares of
Invesco
U.S. Government Money Portfolio, but not Class Y shares of any other Fund. | |
Exchanges
into Invesco Senior Loan Fund
Invesco
Senior Loan Fund is a closed-end interval fund that continuously offers its shares pursuant to the terms and conditions of its prospectus.
The Adviser is the investment adviser for the Invesco Senior Loan Fund. As with the Invesco Funds, you generally may exchange your shares
of Class A (Invesco Cash Reserve Shares of Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio) or Class
C of any Invesco Fund for shares of Class A or Class C, respectively, of Invesco Senior Loan Fund. Please refer to the prospectus for
the Invesco Senior Loan Fund for more information, including limitations on exchanges out of Invesco Senior Loan Fund.
Exchanges
Not Permitted
The
following exchanges are not permitted:
◾
Investor
Class shares cannot be exchanged for Class A shares of any Fund which offers Investor Class shares.
◾
Class A2
shares of Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund cannot be exchanged for Class A shares
of those Funds.
◾
Invesco
Cash Reserve Shares cannot be exchanged for Class C or R shares if the shares being exchanged were acquired by exchange from Class A
shares of any Fund.
◾
All
existing systematic exchanges and reallocations will cease and these options will no longer be available on all 403(b) prototype plans.
◾
Class
A, C or R shares of a Fund acquired by exchange of Class Y shares of Invesco U.S. Government Money Portfolio cannot be exchanged for Class
Y shares of any Fund, except Class Y shares of Invesco U.S. Government Money Portfolio.
Exchange
Conditions
Shares
must have been held for at least one day prior to the exchange with the exception of dividends and distributions that are reinvested.
Under
unusual market conditions, a Fund may delay the exchange of shares
for up to five business days if it determines that it would be materially disadvantaged by the immediate transfer of exchange proceeds.
The exchange privilege is not an option or right to purchase shares. Any of the participating Funds or the distributor may modify or terminate
this privilege at any time.
Initial
Sales Charges, CDSCs and 12b-1 Fees Applicable to Exchanges
You
may be required to pay an initial sales charge when exchanging from a Fund with a lower initial sales charge than the one into which you
are exchanging. If you exchange into shares that are subject to a CDSC, the Funds’ transfer agent will begin the holding period
for purposes of calculating the CDSC on the date you made your initial purchase.
In
addition, as a result of differences in the forms of distribution plans among
the Funds, certain exchanges of Class A shares, Class C shares, and Class R shares of a Fund for the same class of shares of another Fund
may result in investors paying a higher or a lower 12b-1 fee on the Fund being exchanged into. Please refer to the prospectus fee table
and financial highlights table and the SAI for more information on the fees and expenses, including applicable 12b-1 fees, of the Fund
you wish to acquire.
Share
Class Conversions
Shares
of one class of a Fund may be converted into shares of another class of the same Fund, provided that you are eligible to buy that share
class. Investors who hold Fund shares through a financial intermediary that does not have an agreement to make certain share classes of
the Funds available or that cannot systematically support the conversion may not be eligible to convert their shares. Furthermore, your
financial intermediary may have discretion to effect a conversion on your behalf. Consult with your financial intermediary for details.
Any CDSC associated with the converting shares will be assessed immediately prior to the conversion to the new share class. The conversion
of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes and no gain
or loss will be reported on the transaction. See the applicable prospectus for share class information.
Fees
and expenses differ between share classes. You should read the prospectus
for the share class into which you are seeking to convert your shares prior to the conversion.
Automatic
Conversion of Class C and Class CX Shares
Class
C and Class CX shares held for eight years after purchase are eligible for automatic conversion into Class A and Class AX shares of the
same Fund, respectively, except that for the Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio, the Funds’
Class C and/or Class CX shares would be eligible to automatically convert into the Fund’s Invesco Cash Reserve Share Class and all
existing Class C shares of Invesco Short Term Municipal Fund will automatically convert to Class A shares of that Fund at the end of June
2022 (the Conversion Feature). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month
following the eighth anniversary after a purchase of Class C or Class CX shares (the Conversion Date). The first conversion of Class C
and Class CX shares to Class A and Class AX shares under this policy would occur at the end of December 2020 for all Class C and Class
CX shares that were held for more than eight years as of November 30, 2020.
Automatic
conversions pursuant to the Conversion Feature will be on the basis
of the NAV per share, without the imposition of any sales charge (including a CDSC), fee or other charge. All such automatic conversions
of Class C and Class CX shares will constitute tax-free exchanges for federal income tax purposes.
Class
C and Class CX shares of a Fund acquired through a reinvestment of
dividends and distributions will convert to Class A and Class AX shares, respectively, of the Fund (or Invesco Cash Reserve shares for
Invesco
A-16 The
Invesco Funds
Government
Money Market Fund) on the Conversion Date pro rata with the converting Class C and Class CX shares of that Fund that were not acquired
through reinvestment of dividends and distributions.
Class
C or Class CX shares held through a financial intermediary in existing
omnibus Employer Sponsored Retirement and Benefit Plans and other omnibus accounts may be converted pursuant to the Conversion Feature
by the financial intermediary once it is determined that the Class C or Class CX shares have been held for the required holding period.
It is the financial intermediary’s (and not the Fund’s) responsibility to keep records and to ensure that the shareholder
is credited with the proper holding period as the Fund and its agents may not have transparency into how long a shareholder has held Class
C or Class CX shares for purposes of determining whether such Class C or Class CX shares are eligible to automatically convert pursuant
to the Conversion Feature. In order to determine eligibility for automatic conversion in these circumstances, it is the responsibility
of the shareholder or their financial intermediary to determine that the shareholder is eligible to exercise the Conversion Feature, and
the shareholder or their financial intermediary may be required to maintain records that substantiate the holding period of Class C or
Class CX shares.
In
addition, a financial intermediary may sponsor and/or control programs
or platforms that impose a different conversion schedule or eligibility requirements for conversions of Class C or Class CX shares. In
these cases, Class C and Class CX shares of certain shareholders may not be eligible for automatic conversion pursuant to the Conversion
Feature as described above. The Fund has no responsibility for overseeing, monitoring or implementing a financial intermediary’s
process for determining whether a shareholder meets the required holding period for automatic conversion. Please consult with your financial
intermediary if you have any questions regarding the Conversion Feature.
Share
Class Conversions Not Permitted
The
following share class conversions are not permitted:
◾
Conversions
into Class A from Class A2 of the same Fund.
◾
Conversions
into Class A2, Class AX, Class CX, Class P or Class S of the same Fund.
Rights
Reserved by the Funds
Each
Fund and its agents reserve the right at any time to:
◾
Reject
or cancel all or any part of any purchase or exchange order.
◾
Modify
any terms or conditions related to the purchase, redemption or exchange of shares of any Fund.
◾
Reject
or cancel any request to establish a Systematic Purchase Plan or Systematic Redemption Plan.
◾
Modify
or terminate any sales charge waivers or exceptions.
◾
Suspend,
change or withdraw all or any part of the offering made by this prospectus.
Excessive
Short-Term Trading Activity (Market Timing) Disclosures
While
the Funds provide their shareholders with daily liquidity, their investment programs are designed to serve long-term investors and are
not designed to accommodate excessive short-term trading activity in violation of our policies described below. Excessive short-term trading
activity in the Funds’ shares (i.e., a purchase of Fund shares followed shortly thereafter by a redemption of such shares, or vice
versa) may hurt the long-term performance of certain Funds by requiring them to maintain an excessive amount of cash or to liquidate portfolio
holdings at a disadvantageous time, thus interfering with the efficient management of such Funds by causing them to incur increased brokerage
and administrative costs. Where excessive short-term trading activity seeks to take advantage of arbitrage opportunities from stale prices
for portfolio securities, the value of Fund shares held by long-term investors may be diluted. The Board has adopted policies and procedures
designed to discourage excessive or short-term trading of Fund shares for all Funds except the money market funds, Invesco Conservative
Income Fund, and Invesco Short Term Municipal Fund. However, there is the risk that these Funds’ policies and procedures will prove
ineffective in whole or in part to detect or prevent excessive or
short-term
trading. These Funds may alter their policies at any time without prior notice to shareholders if the Adviser believes the change would
be in the best interests of long-term shareholders.
Invesco
and certain of its corporate affiliates (Invesco and such affiliates,
collectively, the Invesco Affiliates) currently use the following tools designed to discourage excessive short-term trading in the retail
Funds:
◾
Trade
activity monitoring.
◾
Discretion
to reject orders.
◾
Purchase
blocking.
◾
The
use of fair value pricing consistent with the valuation policy approved by the Board and related procedures.
Each
of these tools is described in more detail below. Although these tools
are designed to discourage excessive short-term trading, you should understand that none of these tools alone nor all of them taken together
eliminate the possibility that excessive short-term trading activity in the Funds will occur. Moreover, each of these tools involves judgments
that are inherently subjective. Invesco Affiliates seek to make these judgments to the best of their abilities in a manner that they believe
is consistent with long-term shareholder interests.
Money
Market Funds. The Boards of Invesco Government Money Market Fund,
Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio (the money market
funds) have not adopted any policies and procedures that would limit frequent purchases and redemptions of such Funds’ shares. The
Boards of the money market funds considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal. Nonetheless, to the extent that a money market fund must maintain additional cash and/or
securities with short-term durations in greater amounts than may otherwise be required or borrow to honor redemption requests, the money
market fund’s yield could be negatively impacted.
The
Boards of the money market funds do not believe that it is appropriate
to adopt any such policies and procedures for the money market funds for the following reasons:
◾
The
money market funds are offered to investors as cash management vehicles; therefore, investors should be able to purchase and redeem shares
regularly and frequently.
◾
One
of the advantages of a money market fund as compared to other investment options is liquidity. Any policy that diminishes the liquidity
of the money market funds will be detrimental to the continuing operations of such Funds.
◾
With
respect to the money market funds maintaining a constant net asset value, the money market funds’ portfolio securities are valued
on the basis of amortized cost, and such Funds seek to maintain a constant net asset value. As a result, the money market funds are not
subject to price arbitrage opportunities.
◾
With
respect to the money market funds maintaining a constant net asset value, because such Funds seek to maintain a constant net asset value,
investors are more likely to expect to receive the amount they originally invested in the Funds upon redemption than other mutual funds.
Invesco
Conservative Income Fund. The Board of Invesco Conservative Income
Fund has not adopted any policies and procedures that would limit frequent purchases and redemptions of such Fund’s shares. The
Board of Invesco Conservative Income Fund considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal especially in light of the reasons for not having such a policy as described below. Nonetheless,
to the extent that the Fund must maintain additional cash and/or securities with short-term durations in greater amounts than may otherwise
be required or borrow to honor redemption requests, the Fund’s yield could be negatively impacted.
The
Board of the Invesco Conservative Income Fund does not believe that
it is appropriate to adopt any such policies and procedures for the Fund for the following reasons:
◾
The
Fund is offered to investors as a cash management vehicle; investors perceive an investment in the Fund as an alternative to cash and
must be able to purchase and redeem shares regularly and frequently.
A-17 The
Invesco Funds
◾
One
of the advantages of the Fund as compared to other investment options is liquidity. Any policy that diminishes the liquidity of the Fund
will be detrimental to the continuing operations of the Fund.
Excessive
trading activity in the Fund’s shares may cause the Fund to incur
increased brokerage and administrative costs.
The
Fund and its agent reserve the right at any time to reject or cancel any
part of any purchase order. This could occur if the Fund determines that such purchase may disrupt the Fund’s operation or performance.
Invesco
Short Term Municipal Fund. The Board of Invesco Short Term Municipal
Fund has not adopted any policies and procedures that would limit frequent purchases and redemptions of such Fund’s shares. The
Board of Invesco Short Term Municipal Fund considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal, especially in light of the reasons for not having such a policy as described below. Nonetheless,
to the extent that the Fund must maintain additional cash and/or securities with short-term durations in greater amounts than may otherwise
be required or borrow to honor redemption requests, the Fund’s yield could be negatively impacted.
The
Board of Invesco Short Term Municipal Fund does not believe that it is
appropriate to adopt any such policies and procedures for the Fund for the following reasons:
◾
The
Fund is designed to address the needs of retail investors who seek liquidity in their investment and seek the ability to purchase and
redeem shares at any time.
◾
Any
policy that diminishes the ability of shareholders to purchase and redeem shares of the Fund will be detrimental to the continuing operations
of the Fund.
◾
The
Fund generally invests in short duration liquid investment grade municipal securities.
Excessive
trading activity in the Fund’s shares may cause the Fund to incur
increased brokerage and administrative costs. The Fund and its agent reserve the right at any time to reject or cancel any part of any
purchase order. This could occur if the Fund determines that such purchase may disrupt the Fund’s operation or performance.
Trade
Activity Monitoring
Invesco
Affiliates monitor selected trades on a daily basis in an effort to detect excessive short-term trading activities. If, as a result of
this monitoring, Invesco Affiliates believe that a shareholder has engaged in excessive short-term trading, they will seek to act in a
manner that they believe is consistent with the best interests of long-term investors, which may include taking steps such as (i) asking
the shareholder to take action to stop such activities or (ii) refusing to process future purchases or exchanges related to such activities
in the shareholder’s accounts other than exchanges into a money market fund. Invesco Affiliates will use reasonable efforts to apply
the Funds’ policies uniformly given the practical limitations described above.
The
ability of Invesco Affiliates to monitor trades that are made through accounts
that are maintained by intermediaries (rather than the Funds’ transfer agent) and through conduit investment vehicles may be limited
or non-existent.
Discretion
to Reject Orders
If
a Fund or an Invesco Affiliate determines, in its sole discretion, that your short-term trading activity is excessive, the Fund may, in
its sole discretion, reject any additional purchase and exchange orders. This discretion may be exercised with respect to purchase or
exchange orders placed directly with the Funds’ transfer agent or through a financial intermediary.
Purchase
Blocking Policy
The
Funds (except those listed below) have adopted a policy under which any shareholder redeeming shares having a value of $50,000 or more
from a Fund on any trading day will be precluded from investing in that Fund for 30 calendar days after the redemption transaction date.
The policy applies to redemptions and purchases that are part of exchange transactions. Under the purchase blocking policy, certain purchases
will not be prevented and certain redemptions will not trigger a purchase block, such as: purchases
and redemptions
of shares having a value of less than $50,000; systematic purchase, redemption and exchange account options; transfers of shares within
the same Fund; non-discretionary rebalancing in fund-of-funds; asset allocation features; fee-based accounts; account maintenance fees;
small balance account fees; plan-level omnibus Retirement and Benefit Plans; death and disability and hardship distributions; loan transactions;
transfers of assets; Retirement and Benefit Plan rollovers; IRA conversions and re-characterizations; and mandatory distributions from
Retirement and Benefit Plans.
The
Funds reserve the right to modify any of the parameters (including those
not listed above) of the purchase blocking policy at any time. Further, the purchase blocking policy may be waived with respect to specific
shareholder accounts in those instances where the Adviser determines that its surveillance procedures are adequate to detect frequent
trading in Fund shares.
If
an account is maintained by a financial intermediary whose systems are
unable to apply Invesco’s purchase blocking policy, the Adviser will accept the establishment of an account only if the Adviser
believes the policies and procedures are reasonably designed to enforce the frequent trading policies of the Funds. You should refer to
disclosures provided by the financial intermediary with which you have an account to determine the specific trading restrictions that
apply to you. If the Adviser identifies any activity that may constitute frequent trading, it reserves the right to contact the intermediary
and request that the intermediary either provide information regarding an account owner’s transactions or restrict the account owner’s
trading. There is no guarantee that all instances of frequent trading in Fund shares will be prevented.
The
purchase blocking policy does not apply to Invesco Conservative Income
Fund, Invesco Short Term Municipal Fund, Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government
Money Portfolio and Invesco U.S. Government Money Portfolio.
Pricing
of Shares
Determination
of Net Asset Value
The
price of each Fund’s shares is the Fund’s net asset value per share. The Funds (except Invesco Government Money Market Fund,
Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio) value portfolio
securities for which market quotations are readily available at market value. Securities and other assets quoted in foreign currencies
are valued in U.S. dollars based on the prevailing exchange rates on that day. The Funds (except Invesco Government Money Market Fund,
Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio) value securities
and assets for which market quotations are unavailable at their “fair value,” which is described below. Invesco Government
Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio
value portfolio securities on the basis of amortized cost, which approximates market value. This method of valuation is designed to enable
a Fund to price its shares at $1.00 per share. The Funds cannot guarantee their net asset value will always remain at $1.00 per share.
Securities and other assets quoted in foreign currencies are valued in U.S. dollars based on the prevailing exchange rates on that day.
The Fund values securities and assets for which market quotations are unavailable at their “fair value,” which is described
below.
Even
when market quotations are available, they may be stale or not
representative of market value in the Adviser’s judgment (“unreliable”)
because the security is not traded frequently, trading on the security
ceased before the close of the trading market or issuer specific events occurred after the security ceased trading or because of the passage
of time between the close of the market on which the security trades and the close of the NYSE and when the Fund calculates its net asset
value. Issuer specific events may cause the last market quotation to be unreliable. Such events may include a merger or insolvency, events
that affect a geographical area or an industry segment, such as political events or natural disasters, or market events, such as a significant
movement in the U.S. market. Where
A-18 The
Invesco Funds
the Adviser
determines that the closing price of the security is stale or unreliable, the Adviser will value the security at its fair value.
A
fair value price is an estimated price that requires consideration of all appropriate factors, including indications of fair value available
from pricing services. Fair value pricing involves judgment and a Fund that uses fair value methodologies may value securities higher
or lower than another Fund using market quotations or its own fair value methodologies to price the same securities. Investors who purchase
or redeem Fund shares on days when the Fund is holding fair-valued securities may receive a greater or lesser number of shares, or higher
or lower redemption proceeds, than they would have received if the Fund had not fair-valued the security or had used a different methodology.
The
Board has designated the Adviser to perform the daily determination
of fair value prices in accordance with Board approved
policies and related procedures,
subject to the Board’s oversight. Fair value pricing methods
and pricing services can change from time to time.
The
intended effect of applying fair value pricing is to compute an NAV that
accurately reflects the value of a Fund’s portfolio at the time that the NAV is calculated. An additional intended effect is to
discourage those seeking to take advantage of arbitrage opportunities resulting from “stale” prices and to mitigate the dilutive
impact of any such arbitrage. However, the application of fair value pricing cannot eliminate the possibility that arbitrage opportunities
will exist.
Specific
types of securities are valued as follows:
Senior
Secured Floating Rate Loans and Senior Secured Floating Rate Debt
Securities. Senior secured floating rate loans and senior secured
floating rate debt securities are fair valued using evaluated quotes provided by an independent pricing service. Evaluated quotes provided
by the pricing service may reflect appropriate factors such as market quotes, ratings, tranche type, industry, company performance, spread,
individual trading characteristics, institution-size trading in similar groups of securities and other market data.
Domestic
Exchange Traded Equity Securities. Market quotations are generally
available and reliable for domestic exchange traded equity securities. If market quotations are not available or are unreliable, the Adviser
will value the security at fair value in good faith using the valuation policy approved by the Board and related procedures.
Foreign
Securities. If market quotations are available and reliable for
foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign
securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular
security and the close of the customary trading session on the NYSE events occur that are significant and may make the closing price unreliable,
the Fund may fair value the security. If an issuer specific event has occurred that the Adviser determines, in its judgment, is likely
to have affected the closing price of a foreign security, it will price the security at fair value. The Adviser also relies on a screening
process from a pricing vendor to indicate the degree of certainty, based on historical data, that the closing price in the principal market
where a foreign security trades is not the current market value as of the close of the NYSE. For foreign securities where the Adviser
believes, at the approved degree of certainty, that the price is not reflective of current market value, the Adviser will use the indication
of fair value from the pricing service to determine the fair value of the security. The pricing vendor, pricing methodology or degree
of certainty may change from time to time.
Fund
securities primarily traded on foreign markets may trade on days that
are not business days of the Fund. Because the net asset value of Fund shares is determined only on business days of the Fund, the value
of the portfolio securities of a Fund that invests in foreign securities may change on days when you will not be able to purchase or redeem
shares of the Fund.
Fixed
Income Securities. Fixed income securities, such as government,
corporate, asset-backed and municipal bonds, convertible securities, including high yield or junk bonds, and loans, generally are valued
on the basis of prices provided by independent pricing services. Prices provided by the pricing services may be determined without exclusive
reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in
similar
groups of securities, developments related to special securities, dividend rate, maturity and other market data. Pricing services generally
value fixed income securities assuming orderly transactions of institutional round lot size, but a Fund may hold or transact in the same
securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Prices received from pricing
services are fair value prices. In addition, if the price provided by the pricing service and independent quoted prices are unreliable,
the Adviser will fair value the security using the valuation policy approved by the Board and related procedures.
Short-term
Securities. Invesco Government Money Market Fund, Invesco Premier
Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio value all their securities at amortized
cost. Invesco Limited Term Municipal Income Fund values variable rate securities that have an unconditional demand or put feature exercisable
within seven days or less at par, which reflects the market value of such securities.
Futures
and Options. Futures contracts are valued at the final settlement
price set by the exchange on which they are principally traded. U.S.
exchange-traded options are valued at the mean between the last
bid and asked prices from the exchange on which they principally trade. Non-U.S. exchange-traded options are valued at the final settlement
price set by
the exchange on which they trade. Options not listed on an exchange and swaps generally are valued using pricing provided from independent
pricing services.
Swap
Agreements. Swap Agreements are fair valued using an evaluated
quote provided by an independent pricing service. Evaluated quotes provided by the pricing service are based on a model that may include
end of day net present values, spreads, ratings, industry and company performance.
Open-end
Funds. If a Fund invests in other open-end funds, other than open-end
funds that are exchange traded, the investing Fund will calculate its net asset value using the net asset value of the underlying fund
in which it invests, and the prospectuses for such open-end funds explain the circumstances under which they will use fair value pricing
and the effects of using fair value pricing.
Each
Fund, except for Invesco Government Money Market Fund, Invesco Premier
Portfolio and Invesco Premier U.S. Government Money Portfolio, generally determines the net asset value of its shares on each day the
NYSE is open for trading (a business day) as of approximately 4:00 p.m. Eastern Time (the customary close of regular trading) or earlier
in the case of a scheduled early close. In the event of an unscheduled early close of the NYSE, each Fund, except for Invesco Government
Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio, generally still will determine the net
asset value of its shares as of 4:00 p.m. Eastern Time on that business day. Portfolio securities traded on the NYSE would be valued at
their closing prices unless the Adviser determines
that a “fair value” adjustment is appropriate due to subsequent events occurring after an early close consistent with the
valuation policy approved
by the Board and related procedures. Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government
Money Portfolio will generally determine the net asset value of their shares at 5:30 p.m. Eastern Time on each business day. A business
day for Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio is any day
that (1) both the Federal Reserve Bank of New York and a Fund’s custodian are open for business and (2) the primary trading markets
for the Fund’s portfolio instruments are open and the Fund’s management believes there is an adequate market to meet purchase
and redemption requests. Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money
Portfolio are authorized not to open for trading on a day that is otherwise a business day if the Securities Industry and Financial Markets
Association (SIFMA) recommends that government securities dealers not open for trading; any such day will not be considered a business
day. Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio, Invesco
U.S. Government Money Portfolio also may close early on a business day if SIFMA recommends that government securities dealers close early.
If
A-19 The
Invesco Funds
Invesco
Government Money Market Fund, Invesco Premier Portfolio or Invesco Premier U.S. Government Money Portfolio uses its discretion to
close early on a business day, the Fund will calculate its net asset value as of the time of such closing Invesco Premier Portfolio and
Invesco U.S. Government Money Portfolio are authorized to not open for trading on a day that is otherwise a business day if the NYSE recommends
that government securities dealers not open for trading; any such day will not be considered a business day. Invesco Premier Portfolio
also may close early on a business day if the NYSE recommends that government securities dealers close early.
For
financial reporting purposes and shareholder transactions on the last
day of the fiscal quarter, transactions are normally accounted for on a trade date basis. For purposes of executing shareholder transactions
in the normal course of business (other than shareholder transactions at a fiscal period-end), each Fund’s portfolio securities
transactions are recorded no later than the first business day following the trade date.
The
Invesco Advantage International Fund, Invesco Balanced-Risk Allocation
Fund, Invesco Balanced-Risk Commodity Strategy Fund, Invesco Fundamental Alternatives Fund, Invesco Global Allocation Fund, Invesco Global
Strategic Income Fund, Invesco Gold & Special Minerals Fund, Invesco High Yield Bond Factor Fund, Invesco International Bond Fund
and Invesco Macro Allocation Strategy Fund may each invest up to 25% of their total assets in shares of their respective subsidiaries
(the Subsidiaries). The Subsidiaries offer to redeem all or a portion of their shares at the current net asset value per share every regular
business day. The value of shares of the Subsidiaries will fluctuate with the value of the respective Subsidiary’s portfolio investments.
The Subsidiaries price their portfolio investments pursuant to the same pricing and valuation methodologies and procedures used by the
Funds, which require, among other things, that each of the Subsidiaries’ portfolio investments be marked-to-market (that is, the
value on each of the Subsidiaries’ books changes) each business day to reflect changes in the market value of the investment.
Each
Fund’s current net asset value per share is made available on the Funds’
website at www.invesco.com/us.
Fair
Value Pricing
Securities
owned by a Fund (except Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio
and Invesco U.S. Government Money Portfolio) are to be valued at current market value if market quotations are readily available. All
other securities and assets of a Fund for which market quotations are not readily available are to be valued at fair value determined
in good faith consistent with the valuation policy approved by the Board and related procedures. An effect of fair value pricing may be
to reduce the ability of frequent traders to take advantage of arbitrage opportunities resulting from potentially “stale”
prices of portfolio holdings. However, it cannot eliminate the possibility of frequent trading.
The
price a Fund could receive upon the sale of any investment may differ
from the Adviser's valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair
valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions
(i.e., publicly traded company multiples, growth rate, time to exit), to determine a methodology that will result in a valuation that
the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value
from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and
the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the
investment.
Timing
of Orders
Each
Fund prices purchase, exchange and redemption orders at the net asset value next calculated by the Fund after the Fund’s transfer
agent, authorized agent or designee receives an order in good order for the Fund. Purchase, exchange and redemption orders must be received
prior to the close of business on a business day, as defined by the applicable Fund, to receive that day’s net asset value. Any
applicable sales charges are applied at the time an order is processed.
Currently,
certain financial intermediaries may serve as agents for the Funds
and accept orders on their behalf. Where a financial intermediary serves as agent, the order is priced at the Fund’s net asset value
next calculated after it is accepted by the financial intermediary. In such cases, if requested by a Fund, the financial intermediary
is responsible for providing information with regard to the time that such order for purchase, redemption or exchange was received. Orders
submitted through a financial intermediary that has not received authorization to accept orders on a Fund’s behalf are priced at
the Fund’s net asset value next calculated by the Fund after it receives the order from the financial intermediary and accepts it,
which may not occur on the day submitted to the financial intermediary.
Additional
Information Regarding Deferred Tax Liability (only applicable to the Invesco Steelpath Funds)
In
calculating the Fund’s daily NAV, the Fund will, among other things, account for its deferred tax liability and/or asset balances.
As a result, any deferred tax liability and/or asset is reflected in the Fund’s daily NAV.
The
Fund will accrue a deferred income tax liability balance, at the U.S. federal
corporate income tax rate plus an estimated state and local income tax rate for its future tax liability associated with MLP distributions
considered to be a return of capital, as well as for its future tax liability associated with the capital appreciation of its investments.
The Fund’s current and deferred tax liability, if any, will depend upon the Fund’s net investment gains and losses and realized
and unrealized gains and losses on investments and therefore may vary greatly from year to year depending on the nature of the Fund’s
investments, the performance of those investments and general market conditions. Any deferred tax liability balance will reduce the Fund’s
NAV. Upon the Fund’s sale of an MLP security, the Fund may be liable for previously deferred taxes.
The
Fund will accrue, in accordance with generally accepted accounting principles,
a deferred tax asset balance, which reflects an estimate of the Fund’s future tax benefit associated with net operating losses and
unrealized losses. Any deferred tax asset balance will increase the Fund’s NAV. To the extent the Fund has a deferred tax asset
balance, the Fund will assess, in accordance with generally accepted accounting principles, whether a valuation allowance, which would
offset the value of some or all of the Fund’s deferred tax asset balance, is required. Pursuant to Financial Accounting Standards
Board Accounting Standards Codification 740 (FASB ASC 740), the Fund will assess a valuation allowance to reduce some or all of the deferred
tax asset balance if, based on the weight of all available evidence, both negative and positive, it is more likely than not that some
or all of the deferred tax asset will not be realized. The Fund will use judgment in considering the relative impact of negative and positive
evidence. The weight given to the potential effect of negative and positive evidence will be commensurate with the extent to which such
evidence can be objectively verified. The Fund’s assessment considers, among other matters, the nature, frequency and severity of
current and cumulative losses, the duration of statutory carry forward periods and the associated risk that operating loss and capital
loss carry forwards may be limited or expire unused, and unrealized gains and losses on investments. Consideration is also given to market
cycles, the severity and duration of historical deferred tax assets, the impact of redemptions, and the level of MLP distributions. The
Fund will assess whether a valuation allowance is required to offset some or all of any deferred tax asset in connection with the calculation
of the Fund’s NAV per share each day; however, to the extent the final valuation allowance differs from the estimates the Fund used
in calculating the Fund’s daily NAV, the application of such final valuation allowance could have a material impact on the Fund’s
NAV.
The
Fund’s deferred tax asset and/or liability balances are estimated using
estimates of effective tax rates expected to apply to taxable income in the years such balances are realized. The Fund will rely to some
extent on information provided by MLPs in determining the extent to which distributions received from MLPs constitute a return of capital,
which may not be provided to the Fund on a timely basis, to estimate the Fund’s deferred tax liability and/or asset balances for
purposes of financial statement reporting and determining its NAV. If such information is not
A-20 The
Invesco Funds
received
from such MLPs on a timely basis, the Fund will estimate the extent to which distributions received from MLPs constitute a return of capital
based on average historical tax characterization of distributions made by MLPs. The Fund’s estimates regarding its deferred tax
liability and/or asset balances are made in good faith; however, the daily estimate of the Fund’s deferred tax liability and/or
asset balances used to calculate the Fund’s NAV could vary dramatically from the Fund’s actual tax liability. Actual income
tax expense, if any, will be incurred over many years, depending on if and when investment gains and losses are realized, the then-current
basis of the Fund’s assets and other factors. As a result, the determination of the Fund’s actual tax liability may have a
material impact on the Fund’s NAV. The Fund’s daily NAV calculation will be based on then current estimates and assumptions
regarding the Fund’s deferred tax liability and/or asset balances and any applicable valuation allowance, based on all information
available to the Fund at such time. From time to time, the Fund may modify its estimates or assumptions regarding its deferred tax liability
and/or asset balances and any applicable valuation allowance as new information becomes available. Modifications of the Fund’s estimates
or assumptions regarding its deferred tax liability and/or asset balances and any applicable valuation allowance, changes in generally
accepted accounting principles or related guidance or interpretations thereof, limitations imposed on net operating losses (if any) and
changes in applicable tax law could result in increases or decreases in the Fund’s NAV per share, which could be material.
Taxes
(applicable to all Funds except for the Invesco SteelPath Funds and Invesco Master Loan Fund)
A
Fund intends to qualify each year as a regulated investment company (RIC) and, as such, is not subject to entity-level tax on the income
and gain it distributes to shareholders. If you are a taxable investor, dividends and distributions you receive from a Fund generally
are taxable to you whether you reinvest distributions in additional Fund shares or take them in cash. Every year, you will be sent information
showing the amount of dividends and distributions you received from a Fund during the prior calendar year. In addition, investors in taxable
accounts should be aware of the following basic tax points as supplemented below where relevant:
Fund Tax
Basics
◾
A
Fund earns income generally in the form of dividends or interest on its investments. This income, less expenses incurred in the operation
of a Fund, constitutes the Fund’s net investment income from which dividends may be paid to you. If you are a taxable investor,
distributions of net investment income generally are taxable to you as ordinary income.
◾
Distributions
of net short-term capital gains are taxable to you as ordinary income. A Fund with a high portfolio turnover rate (a measure of how frequently
assets within a Fund are bought and sold) is more likely to generate short-term capital gains than a Fund with a low portfolio turnover
rate.
◾
Distributions
of net long-term capital gains are taxable to you as long-term capital gains no matter how long you have owned your Fund shares.
◾
A
portion of income dividends paid by a Fund to you may be reported as qualified dividend income eligible for taxation by individual shareholders
at long-term capital gain rates, provided certain holding period requirements are met. These reduced rates generally are available for
dividends derived from a Fund’s investment in stocks of domestic corporations and qualified foreign corporations. In the case of
a Fund that invests primarily in debt securities, either none or only a nominal portion of the dividends paid by the Fund will be eligible
for taxation at these reduced rates.
◾
The
use of derivatives by a Fund may cause the Fund to realize higher amounts of ordinary income or short-term capital gain, distributions
from which are taxable to individual shareholders at ordinary income tax rates rather than at the more favorable tax rates for long-term
capital gain.
◾
Distributions
declared to shareholders with a record date in October, November or December—if paid to you by the end of January—are taxable
for federal income tax purposes as if received in December.
◾
Any
long-term or short-term capital gains realized on the sale or redemption of your Fund shares will be subject to federal income tax. For
tax
purposes an exchange of your shares for shares of another Fund is the same as a sale. An exchange occurs when the purchase of shares of
a Fund is made using the proceeds from a redemption of shares of another Fund and is effectuated on the same day as the redemption. Your
gain or loss is calculated by subtracting from the gross proceeds your cost basis. Gross proceeds and, for shares acquired on or after
January 1, 2012 and disposed of after that date, cost basis will be reported to you and the Internal Revenue Service (IRS). Cost
basis will be calculated using the Fund’s default method of average cost, unless you instruct the Fund to use a different calculation
method. As a service to you, the Fund will continue to provide to you (but not the IRS) cost basis information for shares acquired before
2012, when available, using the average cost method. Shareholders should carefully review the cost basis information provided by a Fund
and make any additional basis, holding period or other adjustments that are required when reporting these amounts on their federal income
tax returns. If you hold your Fund shares through a broker (or other nominee), please contact that broker (nominee) with respect to reporting
of cost basis and available elections for your account. For more information about the cost basis methods offered by Invesco, please refer
to the Tax Center located under the Account Access & Forms menu of our website at www.Invesco.com/us.
◾
The
conversion of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes
and no gain or loss will be reported on the transaction. This is true whether the conversion occurs automatically pursuant to the terms
of the class or is initiated by the shareholder.
◾
At
the time you purchase your Fund shares, the Fund’s net asset value may reflect undistributed income or undistributed capital gains.
A subsequent distribution to you of such amounts, although constituting a return of your investment, would be taxable. Buying shares in
a Fund just before it declares an income dividend or capital gains distribution is sometimes known as “buying a dividend.”
In addition, a Fund’s net asset value may, at any time, reflect net unrealized appreciation, which may result in future taxable
distributions to you.
◾
By
law, if you do not provide a Fund with your proper taxpayer identification number and certain required certifications, you may be subject
to backup withholding on any distributions of income, capital gains, or proceeds from the sale of your shares. A Fund also must withhold
if the IRS instructs it to do so. When withholding is required, the amount will be 24% of any distributions or proceeds paid.
◾
An
additional 3.8% Medicare tax is imposed on certain net investment income (including ordinary dividends and capital gain distributions
received from a Fund and net gains from redemptions or other taxable dispositions of Fund shares) of U.S. individuals, estates and trusts
to the extent that such person’s “modified adjusted gross income” (in the case of an individual) or “adjusted
gross income” (in the case of an estate or trust) exceeds a threshold amount. This Medicare tax, if applicable, is reported by you
on, and paid with, your federal income tax return.
◾
You
will not be required to include the portion of dividends paid by a Fund derived from interest on U.S. government obligations in your
gross income for purposes of personal and, in some cases, corporate income taxes in many state and local tax jurisdictions. The percentage
of dividends that constitutes dividends derived from interest on federal obligations will be determined annually. This percentage may
differ from the actual percentage of interest received by the Fund on federal obligations for the particular days on which you hold shares.
◾
Fund
distributions and gains from sale or exchange of your Fund shares generally are subject to state and local income taxes.
◾
If
a Fund qualifies to pass through to you the tax benefits from foreign taxes it pays on its investments, and elects to do so, then any
foreign taxes it pays on these investments may be passed through to you. You will then be required to include your pro-rata share of these
taxes in gross income, even though not actually received by you, and will be entitled either to deduct your share of these taxes in computing
your taxable income, or to claim a foreign tax credit for these taxes against your U.S. federal income tax.
A-21 The
Invesco Funds
◾
Foreign
investors should be aware that U.S. withholding, special certification requirements to avoid U.S. backup withholding and claim
any treaty benefits, and estate taxes may apply to an investment in a Fund.
◾
Under
the Foreign Account Tax Compliance Act (FATCA), a Fund will be required to withhold a 30% tax on income dividends made by the Fund to
certain foreign entities, referred to as foreign financial institutions or non-financial foreign entities, that fail to comply (or be
deemed compliant) with extensive reporting and withholding requirements designed to inform the U.S. Department of the Treasury of U.S.-owned
foreign investment accounts. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide otherwise (which
is not expected). A Fund may disclose the information that it receives from its shareholders to the IRS, non-U.S. taxing authorities or
other parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that is a shareholder
of a Fund fails to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.
◾
If
a Fund invests in an underlying fund taxed as a RIC, please see any relevant section below for more information regarding the Fund’s
investment in such underlying fund.
The
above discussion concerning the taxability of Fund dividends and distributions and of redemptions and exchanges of Fund shares is inapplicable
to investors holding shares through a tax-advantaged arrangement, such as Retirement and Benefit Plans or 529 college savings plans. Such
investors should refer to the applicable account documents/program description for that arrangement for more information regarding the
tax consequences of holding and redeeming Fund shares.
Funds
Investing in Municipal Securities
◾
You
will not be required to include the “exempt-interest” portion of dividends paid by the Fund in either your gross income for
federal income tax purposes or your net investment income subject to the additional 3.8% Medicare tax. You will be required to report
the receipt of exempt-interest dividends and other tax-exempt interest on your federal income tax returns. The percentage of dividends
that constitutes exempt-interest dividends will be determined annually. This percentage may differ from the actual percentage of exempt
interest received by the Fund for the particular days in which you hold shares.
◾
A
Fund may invest in municipal securities the interest on which constitutes an item of tax preference and could give rise to a federal alternative
minimum tax liability for noncorporate shareholders, unless such municipal securities were issued in 2009 or 2010.
◾
Exempt-interest
dividends from interest earned on municipal securities of a state, or its political subdivisions, generally are exempt from that state’s
personal income tax. Most states, however, do not grant tax-free treatment to interest from municipal securities of other states.
◾
A
Fund may invest a portion of its assets in securities that pay income that is not tax-exempt. To the extent that dividends paid by a Fund
are derived from taxable investments or realized capital gains, they will be taxable as ordinary income or long-term capital gains.
◾
A
Fund may distribute to you any market discount and net short-term capital gains from the sale of its portfolio securities. If you are
a taxable investor, Fund distributions from this income are taxable to you as ordinary income, and generally will neither qualify for
the dividends-received deduction in the case of corporate shareholders nor as qualified dividend income subject to reduced rates of taxation
in the case of noncorporate shareholders.
◾
Exempt-interest
dividends from a Fund are taken into account when determining the taxable portion of your social security or railroad retirement benefits,
may be subject to state and local income taxes, may affect the deductibility of interest on certain indebtedness, and may have other collateral
federal income tax consequences for you.
◾
There
are risks that: (a) a security issued as tax-exempt may be reclassified by the IRS or a state tax authority as taxable and/or (b) future
legislative,
administrative or court actions could adversely impact the qualification of income from a tax-exempt security as tax-free. Such reclassifications
or actions could cause interest from a security to become taxable, possibly retroactively, subjecting you to increased tax liability.
In addition, such reclassifications or actions could cause the value of a security, and therefore, the value of the Fund’s shares,
to decline.
Money
Market Funds
◾
A
Fund does not anticipate realizing any long-term capital gains.
◾
If
a Fund expects to maintain a stable net asset value of $1.00 per share, investors should not have any gain or loss on sale or exchange
of Fund shares (unless the investor incurs a liquidity fee on such sale or exchange). See “Liquidity Fees and Redemption Gates.”
◾
There
is some degree of uncertainty with respect to the tax treatment of liquidity fees received by a Fund, and such tax treatment may be the
subject of future IRS guidance. If a Fund receives liquidity fees, it will consider the appropriate tax treatment of such fees to the
Fund at such time.
◾
Unless
you choose to adopt a simplified “NAV method” of accounting (described below), any capital gain or loss on the sale or exchange
of Fund shares (as noted above) generally will be treated either as short-term if you held your Fund shares for one year or less, or long-term
if you held your Fund shares longer. If you elect to adopt the NAV method of accounting, rather than computing gain or loss on every taxable
disposition of Fund shares as described above, you would determine your gain or loss based on the change in the aggregate value of your
Fund shares during a computation period (such as your taxable year), reduced by your net investment (purchases minus sales) in those shares
during that period. Under the NAV method, any resulting net capital gain or loss would be treated as short-term capital gain or loss.
Funds
Investing in Real Estate Securities
◾
Because
of “noncash” expenses such as property depreciation, the cash flow of a REIT that owns properties will exceed its taxable
income. The REIT, and in turn a Fund, may distribute this excess cash to shareholders. Such a distribution is classified as a return of
capital. Return of capital distributions generally are not taxable to you. Your cost basis in your Fund shares will be decreased by the
amount of any return of capital. Any return of capital distributions in excess of your cost basis will be treated as capital gains.
◾
Dividends
paid to shareholders from the Funds’ investments in U.S. REITs generally will not qualify for taxation at long-term capital gain
rates applicable to qualified dividend income.
◾
The
Fund may derive “excess inclusion income” from certain equity interests in mortgage pooling vehicles either directly or through
an investment in a U.S. REIT. Please see the SAI for a discussion of the risks and special tax consequences to shareholders in the event
the Fund realizes excess inclusion income in excess of certain threshold amounts.
◾
Under
the Tax Cuts and Jobs Act, “qualified REIT dividends” (i.e., ordinary REIT dividends other than capital gain dividends and
portions of REIT dividends designated as qualified dividend income) are treated as eligible for a 20% deduction by noncorporate taxpayers.
The Fund may choose to report the special character of “qualified REIT dividends” to a shareholder, provided both the Fund
and a shareholder meet certain holding period requirements with respect to their shares.
◾
The
Fund’s foreign shareholders should see the SAI for a discussion of the risks and special tax consequences to them from a sale of
a U.S. real property interest by a REIT in which the Fund invests.
Funds
Investing in Partnerships
◾
Taxes,
penalties, and interest associated with an audit of a partnership
are generally required to be assessed and collected at the partnership level. Therefore, an adverse federal income tax audit of a partnership
that a Fund invests in (including MLPs taxed as partnerships) could result in the Fund being required to pay federal income tax. A Fund
may have little input in any audit asserted against a partnership and may be contractually or legally obligated to make payments in regard
to deficiencies asserted without the ability to put forward an independent defense. Accordingly,
A-22 The
Invesco Funds
even
if a partnership in which the Fund invests were to remain classified as a partnership (instead of as a corporation), it could be required
to pay additional taxes, interest and penalties as a result of an audit adjustment, and the Fund, as a direct or indirect partner of such
partnership, could be required to bear the economic burden of those taxes, interest and penalties, which would reduce the value of Fund
shares.
◾
Under
the Tax Cuts and Jobs Act “qualified publicly traded partnership income” is treated as eligible for a 20% deduction by noncorporate
taxpayers. The legislation does not contain a provision permitting a RIC, such as a Fund, to pass the special character of this income
through to its shareholders. It is uncertain whether a future technical corrections bill or regulations issued by the IRS will address
this issue to enable a Fund to pass through the special character of “qualified publicly traded partnership income” to its
shareholders.
◾
Some
amounts received by a Fund from the MLPs in which it invests likely will be treated as returns of capital to such Fund because of accelerated
deductions available to the MLPs. The receipt of returns of capital from the MLPs in which a Fund invests could cause some or all of the
Fund’s distributions to be classified as a return of capital. Return of capital distributions generally are not taxable to you.
Your cost basis in your Fund shares will be decreased by the amount of any return of capital. Any return of capital distributions in excess
of your cost basis will be treated as capital gains.
Funds
Investing in Commodities
◾
The
Funds’ strategies of investing through their respective Subsidiary in derivatives and other financially linked instruments whose
performance is expected to correspond to the commodity markets may cause the Funds to recognize more ordinary income and short-term capital
gains taxable as ordinary income than would be the case if the Funds invested directly in commodities.
◾
The
Funds must meet certain requirements under the Code for favorable tax treatment as a RIC, including asset diversification and income requirements.
The IRS has issued a revenue ruling which holds that income derived from commodity-linked swaps is not qualifying income for purposes
of the Income Requirement. In a subsequent revenue ruling, as well as in a number of follow-on private letter rulings (upon which only
the fund that received the private letter ruling may rely), the IRS provides that income from certain alternative investments which create
commodity exposure, such as certain commodity-linked or structured notes or a corporate subsidiary that invests in commodities, may be
considered qualifying income under the Code. However, the portion of such rulings relating to the treatment of a corporation as a regulated
investment company that require a determination of whether a financial instrument or position is a security under section 2(a)(36) of
the 1940 Act was revoked because of changes in the IRS’s position.
(A financial instrument or position that constitutes a security
under section 2(a)(36) of the 1940 Act generates qualifying income for a corporation taxed as a regulated investment company.) The Funds
intend to treat the income each derives from commodity-linked notes as qualifying income based on an opinion from counsel confirming that
income from such investments should be qualifying income because such commodity-linked notes constitute securities under section 2(a)(36)
of the 1940 Act. Each Subsidiary will be classified for federal income tax purposes as a controlled foreign corporation (CFC) with respect
to the Fund. As such, the Fund will be required to include in its gross income each year amounts earned by the Subsidiary during that
year (“Subpart F” income), whether or not such earnings are distributed by the Subsidiary to the Fund (deemed inclusions).
Treasury Regulations also permit the Fund to treat such deemed inclusions of “Subpart F” income from the Subsidiary as qualifying
income to the Fund, even if the Subsidiary does not make a distribution of such income. Consequently, the Fund and the Subsidiary reserve
the right to rely on deemed inclusions being treated as qualifying income to the Fund consistent with recently released Treasury Regulations.
If, contrary to the opinion of counsel or other guidance issued by the IRS, the IRS were to determine that income from direct investment
in commodity-linked notes is non-qualifying, a Fund might fail to satisfy
the
income requirement. In lieu of disqualification, the Funds are permitted to pay a tax for certain failures to satisfy the asset diversification
or income requirements, which, in general, are limited to those due to reasonable cause and not willful neglect. The Funds intend to limit
their investments in their respective Subsidiary to no more than 25% of the value of each Fund’s total assets in order to satisfy
the asset diversification requirement.
Funds
Investing in Foreign Currencies
◾
The
Funds may realize gains from the sale or other disposition of foreign currencies (including but not limited to gains from options, futures
or forward contracts) derived from investing in securities or foreign currencies. The U.S. Treasury Department is authorized to issue
regulations on whether the realization of such foreign currency gains is qualified income for the Funds. If such regulations are issued,
each Fund may not qualify as a RIC and/or the Fund may change its investment policy. As of the date of this prospectus, no regulations
have been issued pursuant to this authorization. It is possible, however, that such regulations may be issued in the future. Additionally,
the IRS has not issued any guidance on how to apply the asset diversification test to such foreign currency positions. Thus, the IRS’
determination as to how to treat such foreign currency positions for purposes of satisfying the asset diversification test might differ
from that of each Fund resulting in the Fund’s failure to qualify as a RIC. In lieu of disqualification, each Fund is permitted
to pay a tax for certain failures to satisfy the asset diversification or income requirements, which, in general, are limited to those
due to reasonable cause and not willful neglect.
◾
The
Funds’ transactions in foreign currencies may give rise to ordinary income or loss to the extent such income or loss results from
fluctuations in the value of the foreign currency concerned. This treatment could increase or decrease the Funds' ordinary income distributions
to you, and may cause some or all of the Funds' previously distributed income to be classified as a return of capital. Return of capital
distributions generally are not taxable to you. Your cost basis in your Fund shares will be decreased by the amount of any return of capital.
Any return of capital distributions in excess of your cost basis will be treated as capital gains.
This
discussion of “Taxes” is for general information only and not
tax advice. All investors should consult their own tax advisers as to the federal, state, local and foreign tax provisions applicable
to them.
Taxes
(applicable to the Invesco SteelPath Funds
only)
Although
the Code generally provides that a RIC does not pay an entity-level income tax, provided that it distributes all or substantially all
of its income, the Fund is not and does not anticipate becoming eligible to elect to be treated as a RIC because most or substantially
all of the Fund’s investments will consist of investments in MLP securities. The RIC tax rules therefore have no application to
the Fund or to its shareholders. As a result, the Fund is treated as a regular corporation, or “C” corporation, for U.S. federal
income tax purposes, and generally is subject to U.S. federal income tax on its taxable income at the corporate income tax rate. In addition,
as a regular corporation, the Fund will be subject to state and local taxes by reason of its tax status and its investments in MLPs. Therefore,
the Fund may have to pay federal, multiple state, and local taxes, which would reduce the Fund’s cash available to make distributions
to shareholders. An estimate for federal, state, and local tax liabilities will reduce the fund’s net asset value. The extent to
which the Fund is required to pay U.S. federal, state or local corporate income, franchise or other corporate taxes could materially reduce
the Fund’s cash available to make distributions to shareholders. In addition, investors in taxable accounts should be aware of the
following basic tax points as supplemented below where relevant:
Fund
Tax Basics
◾
The
Fund intends to invest a significant portion of its assets in MLPs, which are generally treated as partnerships for U.S. federal income
tax purposes. To the extent that the Fund invests in equity securities of an MLP, the Fund will be a partner in such MLP. Accordingly,
the Fund will be
A-23 The
Invesco Funds
required
to take into account the Fund’s allocable share of the income, gains, losses, deductions, and credits recognized by each such MLP,
regardless of whether the MLP distributes cash to the Fund. MLP distributions to partners, such as the Fund, are not taxable unless the
cash amount (or in certain cases, the fair market value of marketable securities) distributed exceeds the Fund’s basis in its MLP
interest. The Fund expects that the cash distributions it will receive with respect to its investments in equity securities of MLPs will
exceed the net taxable income allocated to the Fund from such MLPs because of tax deductions such as depreciation, amortization and depletion
that will be allocated to the Fund from the MLPs. No assurance, however, can be given in this regard. If this expectation is not realized,
the Fund will have a larger corporate income tax expense than expected, which will result in less cash available for distribution to shareholders.
◾
The
Fund will recognize gain or loss on the sale, exchange or other taxable disposition of its portfolio assets, including equity securities
of MLPs, equal to the difference between the amount realized by the Fund on the sale, exchange or other taxable disposition and the Fund’s
adjusted tax basis in such assets. Any such gain will be subject to U.S. federal income tax at the corporate income tax rate, regardless
of how long the Fund has held such assets since preferential capital gain rates do not apply to regular corporations such as the Fund.
The amount realized by the Fund in any case generally will be the amount paid by the purchaser of the assets plus, in the case of MLP
equity securities, the Fund’s allocable share, if any, of the MLP’s debt that will be allocated to the purchaser as a result
of the sale, exchange or other taxable disposition. The Fund’s tax basis in its equity securities in an MLP generally is equal to
the amount the Fund paid for the equity securities, (i) increased by the Fund’s allocable share of the MLP’s net taxable income
and certain MLP debt, if any, and (ii) decreased by the Fund’s allocable share of the MLP’s net losses and any distributions
received by the Fund from the MLP. Although any distribution by an MLP to the Fund in excess of the Fund’s allocable share of such
MLP’s net taxable income may create a temporary economic benefit to the Fund, net of a deferred tax liability, such distribution
will decrease the Fund’s tax basis in its MLP investment and will therefore increase the amount of gain (or decrease the amount
of loss) that will be recognized on the sale of an equity security in the MLP by the Fund. To the extent that the Fund has a net capital
loss in any year, the net capital loss can be carried back three taxable years and forward five taxable years to reduce the Fund’s
capital gains in such years. In the event a capital loss carryover cannot be utilized in the carryover periods, the Fund’s federal
income tax liability may be higher than expected, which will result in less cash available to distribute to shareholders.
◾
Distributions
by the Fund of cash or property in respect of the shares (other than certain distributions in redemption of shares) will be treated as
dividends for U.S. federal income tax purposes to the extent paid from the Fund’s current or accumulated earnings and profits (as
determined under U.S. federal income tax principles). Generally, the Fund’s earnings and profits are computed based upon the Fund’s
taxable income (loss), with certain specified adjustments. Any such dividend likely will be eligible for the dividends-received deduction
if received by an otherwise qualifying corporate U.S. shareholder that meets certain holding period and other requirements for the dividends-received
deduction. Dividends paid by the Fund to certain non-corporate U.S. shareholders (including individuals), generally are eligible for U.S.
federal income taxation at the rates generally applicable to long-term capital gains for individuals provided that the U.S. shareholder
receiving the dividend satisfies applicable holding period and other requirements. Otherwise, dividends paid by the Fund to non-corporate
U.S. Shareholders (including individuals) will be taxable at ordinary income rates.
◾
If
the amount of a Fund distribution exceeds the Fund’s current and accumulated earnings and profits, such excess will be treated first
as a tax-deferred return of capital to the extent of, and in reduction of, a shareholder’s tax basis in the shares, and thereafter
as capital gain to the extent the shareholder held the shares as a capital asset. Any such capital gain will be long-term capital gain
if such shareholder has held the applicable shares for more than one year. The portion of the distribution
received
by a shareholder from the Fund that is treated as a return of capital will decrease the shareholder’s tax basis in his or her Fund
shares (but not below zero), which will result in an increase in the amount of gain (or decrease in the amount of loss) that will be recognized
by the shareholder for tax purposes on the later sale of such Fund shares.
◾
The
Fund anticipates that the cash distributions it will receive with respect to its investments in equity securities of MLPs and which it
will distribute to its shareholders will exceed the Fund’s current and accumulated earnings and profits. Accordingly, the Fund expects
that only a part of its distributions to shareholders with respect to the shares will be treated as dividends for U.S. federal income
tax purposes. No assurance, however, can be given in this regard.
◾
Special
rules may apply to the calculation of the Fund’s earnings and profits. For example, the Fund’s earnings and profits will be
calculated using the straight-line depreciation method rather than the accelerated depreciation method. This difference in treatment may,
for example, result in the Fund’s earnings and profits being higher than the Fund’s taxable income or loss in a particular
year if the MLPs in which the Fund invests calculate their income using accelerated depreciation. Because of these special earnings profits
rules, the Fund may make distributions in a particular year out of earnings and profits (treated as dividends) in excess of the amount
of the Fund’s taxable income or loss for such year, which means that a larger percentage of the Fund ’s distributions could
be taxable to shareholders as ordinary income instead of tax-deferred return of capital or capital gain.
◾
Shareholders
that receive distributions in shares rather than in cash will be treated for U.S. federal income tax purposes as having (i) received a
cash distribution equal to the fair market value of the shares received and (ii) reinvested such amount in shares.
◾
A
redemption of shares will be treated as a sale or exchange of such shares, provided the redemption is not essentially equivalent to a
dividend, is a substantially disproportionate redemption, is a complete redemption of a shareholder’s entire interest in the Fund,
or is in partial liquidation of such Fund. Redemptions that do not qualify for sale or exchange treatment will be treated as distributions
as described above. Upon a redemption treated as a sale or exchange under these rules, a shareholder generally will recognize capital
gain or loss equal to the difference between the adjusted tax basis of his or her shares and the amount received when they are sold.
◾
If
the Fund is required to sell portfolio securities to meet redemption requests, the Fund may recognize income and gains for U.S. federal,
state and local income and other tax purposes, which may result in the imposition of corporate income or other taxes on the Fund and may
increase the Fund’s current and accumulated earnings and profits, which will result in a greater portion of distributions to Fund
shareholders being treated as dividends. Any long-term or short-term capital gains realized on sale or redemption of your Fund shares
will be subject to federal income tax. For tax purposes an exchange of your shares for shares of another Fund is the same as a sale. An
exchange occurs when the purchase of shares of a Fund is made using the proceeds from a redemption of shares of another Fund and is effectuated
on the same day as the redemption. Your gain or loss is calculated by subtracting from the gross proceeds your cost basis. Gross proceeds
and, for shares acquired on or after January 1, 2012 and disposed of after that date, cost basis will be reported to you and the IRS.
Cost basis will be calculated using the Fund’s default method of first-in, first-out (FIFO), unless you instruct the Fund to use
a different calculation method. Shareholders should carefully review the cost basis information provided by a Fund and make any additional
basis, holding period or other adjustments that are required when reporting these amounts on their federal income tax returns. If you
hold your Fund shares through a broker (or other nominee), please contact that broker (nominee) with respect to reporting of cost basis
and available elections for your account. For more information about the cost basis methods offered by Invesco, please refer to the Tax
Center located under the Account Access & Forms menu of our website at www.invesco.com/us.
A-24 The
Invesco Funds
◾
The
conversion of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes
and no gain or loss will be reported on the transaction. This is true whether the conversion occurs automatically pursuant to the terms
of the class or is initiated by the shareholder.
◾
At
the time you purchase your Fund shares, the Fund’s net asset value may reflect undistributed income. A subsequent distribution to
you of such amounts, although constituting a return of your investment, would be taxable. Buying shares in a Fund just before it declares
an income dividend is sometimes known as “buying a dividend.” In addition, a Fund’s net asset value may, at any time,
reflect net unrealized appreciation, which may result in future taxable distributions to you.
◾
By
law, if you do not provide a Fund with your proper taxpayer identification number and certain required certifications, you may be subject
to backup withholding on any distributions of income, capital gains, or proceeds from the sale of your shares. A Fund also must withhold
if the IRS instructs it to do so. When withholding is required, the amount will be 24% of any distributions or proceeds paid.
◾
A
3.8% Medicare tax is imposed on certain net investment income (including ordinary dividends received from a Fund and net gains from redemptions
or other taxable dispositions of Fund shares) of U.S. individuals, estates and trusts to the extent that such person’s “modified
adjusted gross income” (in the case of an individual) or “adjusted gross income” (in the case of an estate or trust)
exceeds a threshold amount. This Medicare tax, if applicable, is reported by you on, and paid with, your federal income tax return.
◾
Fund
distributions and gains from sale or exchange of your Fund shares generally are subject to state and local income taxes.
◾
Foreign
investors should be aware that U.S. withholding, special certification requirements to avoid U.S. backup withholding and claim any treaty
benefits, and estate taxes may apply to an investment in a Fund.
◾
Under
the Foreign Account Tax Compliance Act (FATCA), a Fund will be required to withhold a 30% tax on income dividends made by the Fund to
certain foreign entities, referred to as foreign financial institutions or non-financial foreign entities, that fail to comply (or be
deemed compliant) with extensive reporting and withholding requirements designed to inform the U.S. Department of the Treasury of U.S.-owned
foreign investment accounts. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide otherwise (which
is not expected). A Fund may disclose the information that it receives from its shareholders to the IRS, non-U.S. taxing authorities or
other parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that is a shareholder
of a Fund fails to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.
◾
Taxes,
penalties, and interest associated with an audit of a partnership are generally required to be assessed and collected at the partnership
level. Therefore, an adverse federal income tax audit of an MLP taxed as a partnership that the Fund invests in could result in the Fund
being required to pay federal income tax. The Fund may have little input in any audit asserted against an MLP and may be contractually
or legally obligated to make payments in regard to deficiencies asserted without the ability to put forward an independent defense. Accordingly,
even if an MLP in which the Fund invests were to remain classified as a partnership, it could be required to pay additional taxes, interest
and penalties as a result of an audit adjustment, and the Fund, as a direct or indirect partner of such MLP, could be required to bear
the economic burden of those taxes, interest and penalties, which would reduce the value of Fund shares.
◾
Under
the Tax Cuts and Jobs Act certain “qualified publicly traded partnership income” (e.g., certain income from certain of the
MLPs in which the Fund invests) is treated as eligible for a 20% deduction by noncorporate taxpayers. The Tax Cuts and Jobs Act does not
contain a provision permitting an entity, such as the Fund, to benefit from this
deduction
(since the Fund is taxed as a “C” corporation) or pass the special character of this income through to its shareholders. Qualified
publicly traded partnership income allocated to a noncorporate investor investing directly in an MLP might, however, be eligible for the
deduction.
The
above discussion concerning the taxability of Fund dividends and distributions
and of redemptions and exchanges of Fund shares is inapplicable to investors holding shares through a tax-advantaged arrangement, such
as Retirement and Benefit Plans or 529 college savings plans. Such investors should refer to the applicable account documents/program
description for that arrangement for more information regarding the tax consequences of holding and redeeming Fund shares.
This
discussion of “Taxes” is for general information only and not
tax advice. All investors should consult their own tax advisers as to the federal, state, local and foreign tax provisions applicable
to them.
Federal
Income Taxes (applicable to Invesco Master Loan Fund only)
United
States Taxes
The
Fund is classified as a partnership and will not be a regulated investment company for US federal income tax purposes. As a partnership,
the Fund is not a taxable entity for federal income tax purposes and, subject to the application of the partnership audit rules described
below, incurs no federal income tax liability. Each Investor is required to take into account its proportionate share of items of income,
gain, loss and deduction of the partnership in computing its federal income tax liability regardless of whether or not cash or property
distributions are then made by the Fund. Following the close of the Fund’s taxable year end, Investors will receive a tax statement
entitled Schedule K-1 Partner’s Share of Income, Deductions, Credits, etc., which reports the tax status of their distributive share
of the Fund’s items for the previous year.
Taxation
of Distributions, Sales and Exchanges
In
general, distributions of money by the Fund to an Investor will represent a non-taxable return of capital up to the amount of an Investor’s
adjusted tax basis in its shares. An Investor will recognize gain to the extent that any money distributed by the Fund exceeds the Investor’s
adjusted tax basis in its shares. In the case of a non-taxable return of capital by the Fund to an Investor, other than in liquidation
of the Investor’s interest in the Fund, the tax basis of his shares will be reduced (but not below zero) and will result in an increase
in the amount of gain (or decrease in the amount of loss) that will be recognized by the Investor on the later sale of its shares. A distribution
in partial or complete redemption of your shares in the Fund is taxable as a sale or exchange only to the extent the amount of money received
exceeds the tax basis of your entire interest in the Fund. Any loss may be recognized only if you redeem your entire interest in the Fund
for money.
When
you sell shares of the Fund, you may have a capital gain or loss.
Derivatives
The
use of derivatives by the Fund may cause the Fund to realize higher amounts of ordinary income or short-term capital gain, allocations
of which are taxable to individual Investors at ordinary income tax rates rather than at the more favorable tax rates for long-term capital
gain. Changes in government regulation of derivative instruments could affect the character, timing and amount of the Fund’s taxable
income or gains, and may limit the Fund from using certain types of derivative instruments as part of its investment strategy.
Risk
of Audit of the Fund
Under
the partnership audit rules, which are generally applicable to tax years beginning after December 31, 2017, the Internal Revenue Service
(“IRS”) may collect any taxes resulting from audit adjustments to the Fund’s income tax returns (including any applicable
penalties and interest) directly from the Fund. In that case, current Investors would bear some or all of the
A-25 The
Invesco Funds
tax liability
resulting from such audit adjustment, even if they did not own interests in the Fund during the tax year under audit. The Fund may have
the ability to shift any such tax liability to the Investors in accordance with their interests in the Fund during the year under audit,
but there can be no assurance that the Fund will be able to do so under all circumstances. For taxable years not subject to the new audit
rules, items of Fund income, gain, loss, deduction and credit will be determined at the Fund level in a unified audit. NO REPRESENTATION
OR WARRANTY OF ANY KIND IS MADE WITH RESPECT TO THE TAXATION, DEDUCTIBILITY OR CAPITALIZATION OF ANY ITEM BY THE FUND OR INVESTOR. In
addition, the “partnership representative” (tax matters partner, for taxable years before the partnership audit rules become
effective) will have the sole authority to act on the Fund’s behalf for purposes of, among other things, federal income tax audits
and judicial review of administrative adjustments by the IRS, and any such actions will be binding on the Fund and all of the Investors.
Unrelated
Business Taxable Income
An
allocable share of a tax-exempt Investor’s income will be “unrelated business taxable income” (“UBTI”) to
the extent that the Fund borrows money to acquire property or invests in assets that produce UBTI.
Medicare
Tax
An
additional 3.8% Medicare tax is imposed on certain net investment income of US individuals, estates and trusts to the extent that such
person’s “modified adjusted gross income” (in the case of an individual) or “adjusted gross income” (in
the case of an estate or trust) exceeds a threshold amount. “Net investment income,” for these purposes, means investment
income (including (i) net gains from the taxable disposition of shares of a Fund to the extent the net gain would be taken into account
by the Investor if the Fund sold all of its property for fair market value immediately before the disposition of the shares of the Fund,
and (ii) an allocable share of a Fund’s interest, dividends and net gains) reduced by the deductions properly allocable to such
income. This Medicare tax, if applicable, is reported by Investors on, and paid with, the Investor’s federal income tax return.
State,
Local and Non-US Tax Matters
An
Investor’s distributive share of the Fund’s income, and gains from the sale or exchange of an Investor’s Fund shares,
generally are subject to state and local taxes in the jurisdiction in which the Investor resides or is otherwise subject to tax.
Prospective
investors should consider their individual state and local tax consequences
of an investment in the Fund.
Tax
Considerations for Non-US Investors
If,
as anticipated, the Fund is not deemed to be engaged in a US trade or business, the Fund generally will be required to withhold tax on
the distributive share of certain items of gross income from US sources allocated to non-US Investors at a 30% (or lower treaty) rate.
Certain categories of income, including portfolio interest, are not subject to US withholding tax. Capital gains (other than gain realized
on disposition of US real property interests) are not subject to US withholding tax unless the non-US Investor is a nonresident alien
individual present in the United States for a period or periods aggregating 183 days or more during the taxable year. If, on the other
hand, the Fund derives income which is effectively connected with a US trade or business carried on by the Fund, this 30% tax will not
apply to such effectively connected income of the Fund, and the Fund generally will be required to withhold tax from the amount of effectively
connected income allocable to non-US Investors at the highest rate of tax applicable to US residents, and non-US Investors generally would
be required to file US income tax returns and be subject to US income tax on a net basis. Gain or loss on a sale of shares will be treated
as effectively connected with a U.S. trade or business to the extent that a foreign corporation or foreign individual that owns the shares
(whether directly or indirectly through other partnerships) would have had effectively connected gain or loss had the partnership sold
its underlying assets and applicable US
withholding
tax will apply. Non-US Investors may be subject to US estate tax and are subject to special US tax certification requirements.
Other
Reporting and Withholding Requirements
Under
the Foreign Account Tax Compliance Act (“FATCA”), the Fund will be required to withhold at a 30% rate on certain US source
payments (such as interest and dividends) to certain Investors if the Investor fails to provide the Fund with the information which identifies
its direct and indirect US ownership. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide otherwise (which
is not expected). A Fund may disclose the information that it receives from an Investor to the IRS, non-US taxing authorities or other
parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that is an Investor fails
to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.
For
a more complete discussion of the federal income tax consequences
of investing in the Fund, see the Statement of Additional Information.
This
discussion of “Federal Income Taxes” is not intended or written
to be used as tax advice. Because everyone’s tax situation is unique, Investors should consult their tax professional about federal,
state, local and foreign tax consequences before making an investment in the Fund.
Payments
to Financial Intermediaries – All Share Classes except Class R6 shares
The
financial adviser or intermediary through which you purchase your shares may receive all or a portion of the sales charges and distribution
fees discussed above. In addition to those payments, Invesco Distributors and other Invesco Affiliates, may make additional cash payments
to financial intermediaries in connection with the promotion and sale of shares of the Funds. These additional cash payments may include
cash payments and other payments for certain marketing and support services. Invesco Affiliates make these payments from their own resources,
from Invesco Distributors’ retention of initial sales charges and from payments to Invesco Distributors made by the Funds under
their 12b-1 plans. In the context of this prospectus, “financial intermediaries” include any broker, dealer, bank (including
bank trust departments), registered investment adviser, financial planner, retirement plan administrator, insurance company and any other
financial intermediary having a selling, administration or similar agreement with Invesco Affiliates.
The
benefits Invesco Affiliates receive when they make these payments include,
among other things, placing the Funds on the financial intermediary’s fund sales system, and access (in some cases on a preferential
basis over other competitors) to individual members of the financial intermediary’s sales force or to the financial intermediary’s
management. These payments are sometimes referred to as “shelf space” payments because the payments compensate the financial
intermediary for including the Funds in its fund sales system (on its “sales shelf”). Invesco Affiliates compensate financial
intermediaries differently depending typically on the level and/or type of considerations provided by the financial intermediary. The
payments Invesco Affiliates make may be calculated based on sales of shares of the Funds (Sales-Based Payments), in which case the total
amount of such payments shall not exceed 0.25% (0.10% for Class R5 shares) of the public offering price of all shares sold by the financial
intermediary during the particular period. Payments may also be calculated based on the average daily net assets of the applicable Funds
attributable to that particular financial intermediary (Asset-Based Payments), in which case the total amount of such cash payments shall
not exceed 0.25% per annum of those assets during a defined period. Sales-Based Payments primarily create incentives to make new sales
of shares of the Funds and Asset-Based Payments primarily create incentives to retain previously sold shares of the Funds in investor
accounts. Invesco Affiliates
A-26 The
Invesco Funds
may pay a financial
intermediary either or both Sales-Based Payments and Asset-Based Payments.
Invesco
Affiliates are motivated to make these payments as they promote
the sale of Fund shares and the retention of those investments by clients of the financial intermediaries. To the extent financial intermediaries
sell more shares of the Funds or retain shares of the Funds in their clients’ accounts, Invesco Affiliates benefit from the incremental
management and other fees paid to Invesco Affiliates by the Funds with respect to those assets.
The
Funds’ transfer agent may make payments to certain financial intermediaries
for certain administrative services, including record keeping and sub-accounting of shareholder accounts pursuant to a sub-transfer agency,
omnibus account service or sub-accounting agreement. All fees payable by Invesco Affiliates under this category of services are charged
back to the Funds, subject to certain limitations approved by the Board.
You
can find further details in the Fund’s SAI about these payments and the
services provided by financial intermediaries. In certain cases these payments could be significant to the financial intermediaries. Your
financial adviser may charge you additional fees or commissions other than those disclosed in this prospectus. You can ask your financial
adviser about any payments it receives from Invesco Affiliates or the Funds, as well as about fees and/or commissions it charges.
Important
Notice Regarding Delivery of Security Holder Documents
To
reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address
(Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not
want the mailing of these documents to be combined with those for other members of your household, please contact the Funds’ transfer
agent at 800-959-4246 or contact your financial institution. The Funds’ transfer agent will begin sending you individual copies
for each account within thirty days after receiving your request.
A-27 The
Invesco Funds
Obtaining Additional Information
More information
may be obtained free of charge upon request. The SAI, a current version of which is on file with the SEC, contains more details about
the Fund and is incorporated by reference into this prospectus (is legally a part of this prospectus). Annual and semi-annual reports
to shareholders contain additional information about the Fund’s investments. The Fund’s annual report also discusses the market
conditions and investment strategies that significantly affected the Fund’s performance during its last fiscal year. The Fund also
files its complete schedule of portfolio holdings with the SEC for the 1st and 3rd quarters of each fiscal year as an exhibit to its reports
on Form N-PORT.
If
you have questions about an Invesco Fund or your account, or you wish to obtain a free copy of the Fund’s current SAI, annual or
semi-annual reports or Form N-PORT, please contact us.
|
By
Mail: |
Invesco
Investment Services, Inc.
P.O.
Box 219078
Kansas
City, MO 64121-9078 |
|
By
Telephone: |
(800)
959-4246 |
|
On
the Internet: |
You
can send us a request by e-mail or
download
prospectuses, SAIs, annual or
semi-annual
reports via our website:
www.invesco.com/us
|
Reports
and other information about the Fund are available on the EDGAR Database on the SEC's Internet site at http://www.sec.gov, and copies
of this information may be obtained, after paying a duplicating fee, by electronic request at the following e-mail address: publicinfo@sec.gov.
|
Invesco
Equally-Weighted S&P 500 Fund
SEC 1940 Act file
number: 811-09913 |
|
invesco.com/us
|
MS-EWSP-PRO-1
|
Prospectus
December
16,
2022
Class:
A (ACEIX ), C (ACERX ),
R (ACESX ), Y (ACETX ),
R5 (ACEKX ), R6 (IEIFX )
Invesco
Equity and Income Fund
As
with all other mutual fund securities, the U.S. Securities and Exchange Commission (SEC) has not approved or disapproved these securities
or passed upon the adequacy of this prospectus. Any representation to the contrary is a criminal offense.
An
investment in the Fund:
◾
is
not FDIC insured;
◾
may
lose value; and
◾
is
not guaranteed by a bank.
Table of Contents
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A-1
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A-1
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A-2
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A-3
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A-3
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A-10
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A-11
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A-13
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A-15
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A-17
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A-17
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A-18
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A-21
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A-23
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A-25
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A-26
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A-27
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Back
Cover |
Invesco
Equity and Income Fund
The
Fund’s investment objective is current income
and, secondarily,
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) |
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Maximum
Deferred Sales Charge (Load) (as a
percentage
of original purchase price or
redemption
proceeds, whichever is less) |
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Class:
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A
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C
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R
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Y
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R5
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R6
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Management
Fees |
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Distribution
and/or Service (12b-1) Fees |
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Other
Expenses |
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Acquired
Fund Fees and Expenses |
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Total
Annual Fund Operating Expenses |
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1
The
Example assumes that you invest $10,000 in the Fund for the time periods
indicated and then redeem all of your shares at the end of those periods. This Example does not include commissions and/or other forms
of compensation that investors may pay on transactions in Class Y and Class R6 shares. The Example also assumes that your investment has
a 5% return each year and that the Fund’s operating expenses remain the same.
Although
your actual costs may be higher or lower, based on these assumptions,
your costs would be:
|
|
1
Year |
3
Years |
5
Years |
10
Years |
|
Class
A |
$
|
$
|
$
|
$
|
|
| ||||
|
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 equity and income
securities, and in derivatives and other instruments that have economic characteristics similar to such securities.
The
Fund may invest in securities of issuers of all capitalization sizes; however,
a substantial number of the issuers in which the Fund invests are large-capitalization issuers.
The
Fund invests, under normal circumstances, at least 65% of its net assets
in income-producing equity investments, including dividend paying common or preferred stocks, interest paying convertible debentures or
bonds, or zero coupon convertible securities (on which the Fund accrues income for tax and accounting purposes, but receives no cash).
The
Fund may invest in income-producing equity instruments (subject to
the 65% policy above), debt securities and warrants or rights to acquire such securities, in such proportions as economic conditions indicate
would best accomplish the Fund’s objectives. It is the current operating policy of the Fund to invest in debt securities rated investment
grade. This operating policy does not apply to convertible securities, which are selected primarily on the basis of their equity characteristics.
The
Fund also invests in U.S. Government obligations, including Treasury
bills and notes, and obligations issued or guaranteed by the U.S. Government or its agencies or instrumentalities.
The
Fund may invest up to 15% of its net assets in real estate investment
trusts (REITs).
The
Fund may invest up to 25% of its net assets in securities of foreign issuers,
which may include depositary receipts.
The
Fund can invest in derivative instruments including forward foreign currency
contracts, futures contracts and options.
The
Fund can use forward foreign currency contracts to hedge against adverse
movements in the foreign currencies in which portfolio securities are denominated.
The
Fund can use futures contracts to seek exposure to certain asset classes,
to hedge against adverse movements in the foreign currencies in which portfolio securities are denominated and to manage duration.
The
Fund can use options to seek alpha (return on investments in excess
of the Russell 1000®
Value Index) or to mitigate risk and to hedge against adverse movements in the foreign currencies in which portfolio securities are denominated.
In
selecting securities, Invesco Advisers, Inc. (Invesco or the Adviser) focuses
on a security’s potential for income with safety of principal and long-term growth of capital. The Adviser emphasizes a value style
of investing, which focuses on undervalued companies with characteristics for improved valuations. The Adviser looks for catalysts for
change that may
1 Invesco
Equity and Income Fund
positively
impact a company. This catalyst could come from within the company in the form of new management, operational enhancements, restructuring
or reorganization. It could also be an external factor, such as an improvement in industry conditions or a regulatory change. The aim
is to uncover these catalyst for change, and then benefit from potential stock price appreciation of the change taking place at the company.
The
Fund may dispose of a security when, in the opinion of the Adviser, the
security reaches the Adviser’s estimate of fair value or when the Adviser identifies a more attractive investment opportunity.
In
attempting to meet its investment objective or to manage subscription
and redemption requests, the Fund may engage in active and frequent trading of portfolio securities.
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, natural or environmental disasters, widespread disease or other public health issues, war, military conflict, acts of terrorism
or adverse investor sentiment generally. 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.
Investing
in Stocks Risk. The value of the Fund’s portfolio may be
affected by changes in the stock markets. Stock markets may experience significant short-term volatility and may fall 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.
Debt
Securities Risk. The prices of debt securities held by the Fund
will be affected by changes in interest rates, the creditworthiness of the issuer and other factors. An increase in prevailing interest
rates typically causes the value of existing debt securities to fall and often has a greater impact on longer-duration debt securities
and higher quality debt securities. Falling interest rates will cause the Fund to reinvest the proceeds of debt securities that have been
repaid by the issuer at lower interest rates. Falling interest rates may also reduce the Fund’s distributable income because interest
payments on floating rate debt instruments held by the Fund will decline. The Fund could lose money on investments in debt securities
if the issuer or
borrower
fails to meet its obligations to make interest payments and/or to repay principal in a timely manner. Changes in an issuer’s financial
strength, the market’s perception of such strength or in the credit rating of the issuer or the security may affect the value of
debt securities. The Adviser’s credit analysis may fail to anticipate such changes, which could result in buying a debt security
at an inopportune time or failing to sell a debt security in advance of a price decline or other credit event.
Preferred
Securities Risk. Preferred securities are subject to issuer-specific
and market risks applicable generally to equity securities. Preferred securities also may be subordinated to bonds or other debt instruments,
subjecting them to a greater risk of non-payment, may be less liquid than many other securities, such as common stocks, and generally
offer no voting rights with respect to the issuer.
Convertible
Securities Risk. The market values of convertible securities are
affected by market interest rates, the risk of actual issuer default on interest or principal payments and the value of the underlying
common stock into which the convertible security may be converted. Additionally, a convertible security is subject to the same types of
market and issuer risks that apply to the underlying common stock. In addition, certain convertible securities are subject to involuntary
conversions and may undergo principal write-downs upon the occurrence of certain triggering events, and, as a result, are subject to an
increased risk of loss. Convertible securities may be rated below investment grade, which are considered to have more speculative characteristics
and greater susceptibility to default or decline in market value than investment grade securities.
U.S.
Government Obligations Risk. Obligations of U.S. Government agencies
and authorities receive varying levels of support and may not be backed by the full faith and credit of the U.S. Government, which could
affect the Fund’s ability to recover should they default. No assurance can be given that the U.S. Government will provide financial
support to its agencies and authorities if it is not obligated by law to do so.
Zero
Coupon or Pay-In-Kind Securities Risk. The value, interest rates,
and liquidity of non-cash paying instruments, such as zero coupon and pay-in-kind securities, are subject to greater fluctuation than
other types of securities. The higher yields and interest rates on pay-in-kind securities reflect the payment deferral and increased credit
risk associated with such instruments and that such investments may represent a higher credit risk than loans that periodically pay interest.
Small-
and Mid-Capitalization Companies Risk. Investing in securities
of small- and mid-capitalization companies involves greater risk than customarily is associated with investing in larger, more established
companies. Stocks of small- and mid-capitalization companies tend to be more vulnerable to changing market conditions, may have little
or no operating history or track record of success, and may have more limited product lines and markets, less experienced management and
fewer financial resources than larger companies. These companies’ securities may be more volatile and less liquid than those of
more established companies. They may be more sensitive to changes in a company’s earnings expectations and may experience more abrupt
and erratic price movements. Smaller companies’ securities often trade in lower volumes and in many instances, are traded over-the-counter
or on a regional securities exchange, where the frequency and volume of trading is substantially less than is typical for securities of
larger companies traded on national securities exchanges. Therefore, the securities of smaller companies may be subject to wider price
fluctuations and it might be harder for the Fund to dispose of its holdings at an acceptable price when it wants to sell them. Since small-
and mid-cap companies typically reinvest a high proportion of their earnings in their business, they may not pay dividends for some time,
particularly if they are newer companies. It may take a substantial period of time to realize a gain on an investment in a small- or mid-cap
company, if any gain is realized at all.
Rights
and Warrants Risk. Warrants may be significantly less valuable
or worthless on their expiration date and may also be postponed or terminated early, resulting in a partial or total loss. Rights are
similar to warrants, but
2 Invesco
Equity and Income Fund
normally
have a short duration and are distributed directly by the issuer to its shareholders. Rights and warrants have no voting rights, receive
no dividends and have no rights with respect to the assets of the issuer. Warrants and rights are highly volatile and, therefore, more
susceptible to sharp declines in value than the underlying security might be. The market for rights or warrants may be very limited and
it may be difficult to sell them promptly at an acceptable price.
Changing
Fixed Income Market Conditions Risk. Increases
in the federal
funds and equivalent foreign rates or other changes
to monetary policy or regulatory actions may expose fixed income
markets to heightened volatility and reduced liquidity for certain fixed income investments, particularly those with longer maturities.
It is difficult to predict the impact of interest rate changes on various markets. In addition, decreases in fixed income dealer market-making
capacity may also potentially lead to heightened volatility and reduced liquidity in the fixed income markets. As a result, the value
of the Fund’s investments and share price may decline. Changes in central bank policies could also result in higher than normal
redemptions by shareholders, which could potentially increase the Fund’s portfolio turnover rate and transaction costs.
Foreign
Securities Risk. The Fund's foreign investments may be adversely
affected by political and social instability, changes in economic or taxation policies, difficulty in enforcing obligations, decreased
liquidity or increased volatility. 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. There may be less public information available about foreign companies than U.S. companies, making it difficult
to evaluate those foreign companies. 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.
Depositary
Receipts Risk. Investing in depositary receipts involves the same
risks as direct investments in foreign securities. In addition, the underlying issuers of certain depositary receipts are under no obligation
to distribute shareholder communications or pass through any voting rights with respect to the deposited securities to the holders of
such receipts. The Fund may therefore receive less timely information or have less control than if it invested directly in the foreign
issuer.
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. 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.
REIT
Risk/Real Estate Risk. Investments in real estate related instruments
may be adversely affected by economic, legal, cultural, environmental or technological factors that affect property values, rents or occupancies.
Shares of real estate related companies, which tend to be small- and mid-cap companies, may be more volatile and less liquid than larger
companies. If a real estate related company defaults on certain types of debt obligations held by the Fund, the Fund may acquire real
estate directly, which involves additional risks such as environmental liabilities; difficulty in valuing and selling the real estate;
and economic or regulatory changes.
Derivatives
Risk. The value of a derivative instrument depends largely on (and
is derived from) the value of an underlying security, currency,
commodity,
interest rate, index or other asset (each referred to as an underlying asset). In addition to risks relating to the underlying assets,
the use of derivatives may include other, possibly greater, risks, including counterparty, leverage and liquidity risks. Counterparty
risk is the risk that the counterparty to the derivative contract will default on its obligation to pay the Fund the amount owed or otherwise
perform under the derivative contract. Derivatives create leverage risk because they do not require payment up front equal to the economic
exposure created by holding a position in the derivative. As a result, an adverse change in the value of the underlying asset could result
in the Fund sustaining a loss that is substantially greater than the amount invested in the derivative or the anticipated value of the
underlying asset, which may make the Fund’s returns more volatile and increase the risk of loss. Derivative instruments may also
be less liquid than more traditional investments and the Fund may be unable to sell or close out its derivative positions at a desirable
time or price. This risk may be more acute under adverse market conditions, during which the Fund may be most in need of liquidating its
derivative positions. Derivatives may also be harder to value, less tax efficient and subject to changing government regulation that could
impact the Fund’s ability to use certain derivatives or their cost. Derivatives strategies may not always be successful. For example,
derivatives used for hedging or to gain or limit exposure to a particular market segment may not provide the expected benefits, particularly
during adverse market conditions.
Active
Trading Risk. Active trading of portfolio securities may result
in added expenses, a lower return and increased tax liability.
Value Investing
Risk. Value investing entails the risk that if the market does
not recognize that a selected security is undervalued, the prices of that security might not appreciate as anticipated. A value approach
could also result in fewer investments that increase rapidly during times of market gains and could cause a fund to underperform funds
that use a growth or non-value approach to investing. Value investing has gone in and out of favor during past market cycles and when
value investing is out of favor or when markets are unstable, the securities of “value” companies may underperform the securities
of “growth” companies or the overall stock market.
Management
Risk. The Fund is actively managed and depends heavily on the Adviser’s
judgment about markets, interest rates or the attractiveness, relative values, liquidity, or potential appreciation of particular investments
made for the Fund’s portfolio. The Fund could experience losses if these judgments prove to be incorrect. Additionally, legislative,
regulatory, or tax developments may adversely affect management of the Fund and, therefore, the ability of the Fund to achieve its investment
objective.
Fund
performance reflects any applicable fee waivers and expense reimbursements.
Performance returns would be lower without applicable fee waivers and expense reimbursements.
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.
3 Invesco
Equity and Income Fund
|
Class
A |
Period
Ended |
Returns
|
|
|
|
-
|
|
|
|
|
|
|
|
-
|
Average Annual Total Returns (for the periods ended December 31, 2021)
|
|
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
R61 |
|
|
|
|
|
| ||||
|
Russell
1000®
Value Index for
fees, expenses or taxes) |
|
|
|
|
|
| ||||
|
Bloomberg
U.S. Government/Credit Index (reflects
no
deduction for fees, expenses or taxes) |
|
-
|
|
|
|
| ||||
|
Lipper
Mixed-Asset Target Allocation Growth Funds
Index
|
|
|
|
|
|
| ||||
1
Management
of the Fund
Investment
Adviser: Invesco Advisers, Inc.
|
Portfolio
Managers |
Title
|
Length
of Service on the Fund |
|
Brian
Jurkash |
Portfolio
Manager (co-lead) |
2015
|
|
| ||
|
Matthew
Titus, CFA |
Portfolio
Manager (co-lead) |
2016
|
|
| ||
|
Chuck
Burge |
Portfolio
Manager |
2010
|
|
| ||
|
Sergio
Marcheli |
Portfolio
Manager |
2010
(predecessor fund 2003)* |
|
| ||
*Predecessor
fund refers to the Van Kampen Equity and Income Fund, which was
reorganized into the Fund after the close of business on June 1, 2010.
Purchase
and Sale of Fund Shares
You
may purchase, redeem or exchange shares of the Fund on any business day through your financial adviser or by telephone at 800-959-4246.
Shares of the Fund, other than Class R5 and Class R6 shares, may also be purchased, redeemed or exchanged on any business day through
our website at www.invesco.com/us or by mail to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.
The
minimum investments for Class A, C, R and Y shares for fund accounts
are as follows:
|
Type
of Account |
Initial
Investment
Per
Fund |
Additional
Investments
Per
Fund |
|
Asset
or fee-based accounts managed by your financial adviser |
None
|
None
|
|
| ||
|
Employer
Sponsored Retirement and Benefit Plans and
Employer
Sponsored IRAs |
None
|
None
|
|
| ||
|
IRAs
and Coverdell ESAs if the new investor is purchasing
shares
through a systematic purchase plan |
$25
|
$25
|
|
| ||
|
All
other types of accounts if the investor is purchasing shares
through
a systematic purchase plan |
50
|
50
|
|
| ||
|
IRAs
and Coverdell ESAs |
250
|
25
|
|
| ||
|
All
other accounts |
1,000
|
50
|
|
| ||
With
respect to Class R5 and Class R6 shares, there is no minimum initial
investment for Employer Sponsored Retirement and Benefit Plans investing through a retirement platform that administers at least $2.5
billion in retirement plan assets. All other Employer Sponsored Retirement and Benefit Plans must meet a minimum initial investment of
at least $1 million in each Fund in which it invests.
For
all other institutional investors purchasing Class R5 or Class R6 shares,
the minimum initial investment in each share class is $1 million, unless such investment is made by (i) an investment company, as defined
under the Investment Company Act of 1940, as amended (1940 Act), that is part of a family of investment companies which own in the aggregate
at least $100 million in securities, or (ii) an account established with a 529 college savings plan managed by Invesco, in which case
there is no minimum initial investment.
There
are no minimum investment amounts for Class R6 shares held through
retail omnibus accounts maintained by an intermediary, such as a broker, that (i) generally charges an asset-based fee or commission in
addition to those described in this prospectus, and (ii) maintains Class R6 shares and makes them available to retail investors.
Tax
Information
The
Fund’s distributions generally are taxable to you as ordinary income, capital gains, or some combination of both, unless you are
investing through a tax-advantaged arrangement, such as a 401(k) plan, 529 college savings plan or individual retirement account. Any
distributions from a 401(k) plan or individual retirement account may be taxed as ordinary income when withdrawn from such plan or account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund, the Fund’s distributor
or its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict
of interest by influencing the broker-dealer or other intermediary and your salesperson or financial adviser to recommend the Fund over
another investment. Ask your salesperson or financial adviser or visit your financial intermediary’s website for more information.
Investment Objective(s), Strategies, Risks and Portfolio Holdings
Objective(s)
and Strategies
The
Fund’s investment objective is current income and, secondarily, 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 equity and income
4 Invesco
Equity and Income Fund
securities,
and in derivatives and other instruments that have economic characteristics similar to such securities.
The
Fund may invest in securities of issuers of all capitalization sizes; however,
a substantial number of the issuers in which the Fund invests are large-capitalization issuers.
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 largest and smallest capitalized companies included in the Russell
1000®
Index during the most recent 11-month period (based on month-end
data) plus the most recent data during the current month.
The
Fund invests, under normal circumstances, at least 65% of its net assets
in income-producing equity investments. Income-producing equity investments are dividend paying common or preferred stocks, interest paying
convertible debentures or bonds, or zero coupon convertible securities (on which the Fund accrues income for tax and accounting purposes,
but receives no cash).
The
Fund may invest in income-producing equity instruments (subject to
the 65% policy above), debt securities and warrants or rights to acquire such securities, in such proportions as economic conditions indicate
would best accomplish the Fund’s objectives. It is the current operating policy of the Fund to invest in debt securities rated investment
grade. Investment grade securities are: (i) securities rated BBB- or higher by S&P Global Ratings (S&P) or Baa3 or higher by Moody’s
Investors Service, Inc. (Moody’s) or an equivalent rating by another nationally recognized statistical rating organization (NRSRO),
(ii) securities with comparable short-term NRSRO ratings, or (iii) unrated securities determined by the Adviser to be of comparable quality,
each at the time of purchase. This operating policy does not apply to convertible securities which are selected primarily on the basis
of their equity characteristics.
The
Fund also invests in U.S. Government obligations, including Treasury
bills and notes, and obligations issued or guaranteed by the U.S. Government or its agencies or instrumentalities.
The
Fund may invest up to 15% of its net assets in REITs. REITs pool investors’
funds for investment primarily in commercial real estate properties or real estate related loans. REITs generally derive their income
from rents on the underlying properties or interest on the underlying loans, and their value is impacted by changes in the value of the
underlying property or changes in interest rates affecting the underlying loans owned by the REITs.
The
Fund may invest up to 25% of its net assets in securities of foreign issuers
or depositary receipts. A depositary receipt is generally issued by a bank or financial institution and represents an ownership interest
in the common stock or other equity securities of a foreign company.
The
Fund can invest in derivative instruments including forward foreign currency
contracts, futures contracts and options.
A
forward foreign currency contract is an agreement between parties to exchange
a specified amount of currency at a specified future time at a specified rate. The Fund can use forward foreign currency contracts to
hedge against adverse movements in the foreign currencies in which portfolio securities are denominated.
A
futures contract is a standardized agreement between two parties to buy
or sell a specified quantity of an underlying asset at a specified price at a specified future time. The value of the futures contract
tends to increase and decrease in tandem with the value of the underlying asset. Futures contracts are bilateral agreements, with both
the purchaser and the seller equally obligated to complete the transaction. Depending on the terms of the particular contract, futures
contracts are settled by purchasing an offsetting contract, physically delivering the underlying asset on the settlement date or paying
of a cash settlement amount on the settlement date. The Fund can use futures contracts to seek exposure to certain asset classes, to hedge
against adverse movements in the foreign currencies in which portfolio securities are denominated and to manage the duration of the Fund.
An
option is a derivative financial instrument that reflects a contract between
two parties for a future transaction on an asset at a reference price. The buyer of the option gains the right, but not the obligation,
to engage in that transaction, while the seller incurs the corresponding obligation to fulfill the transaction. The price of an option
derives from the difference between the reference price and the value of the underlying asset (commonly a stock, a bond, a currency or
a futures contract) plus a premium based on the time remaining until the expiration of the option. Other types of options exist, and options
can in principle be created for any type of valuable asset. The Fund can use options to seek alpha (return on investments in excess of
the Russell 1000®
Value Index) or to mitigate risk and to hedge against adverse movements in the foreign currencies in which portfolio securities are denominated.
In
selecting securities, the Adviser focuses on a security’s potential for income
with safety of principal and long-term growth of capital. The Adviser emphasizes a value style of investing, which focuses on undervalued
companies with characteristics for improved valuations. The Adviser looks for catalysts for change that may positively impact
a company. This catalyst could come from within the company in the form of new management, operational enhancements, restructuring or
reorganization. It could also be an external factor, such as an improvement in industry conditions or a regulatory change. The aim is
to uncover these catalyst for change, and then benefit from potential stock price appreciation of the change taking place at the company.
The
Fund may dispose of a security when, in the opinion of the Adviser, the
security reaches the Adviser’s estimate of fair value or when the Adviser identifies a more attractive investment opportunity.
In
attempting to meet its investment objective or to manage subscription
and redemption requests, the Fund may engage in active and frequent trading of portfolio securities.
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 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
5 Invesco
Equity and Income Fund
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.
◾
COVID-19.
The “COVID-19” strain of coronavirus has resulted in instances of market closures and dislocations, extreme volatility, liquidity
constraints and increased trading costs. Efforts to contain its spread have resulted in travel restrictions, disruptions of healthcare
systems, business operations (including business closures) and supply chains, layoffs, lower consumer demand and employee availability,
and defaults and credit downgrades, among other significant economic impacts that have disrupted global economic activity across many
industries. Such economic impacts may exacerbate other pre-existing political, social and economic risks locally or globally and cause
general concern and uncertainty. The full economic impact and ongoing effects of COVID-19 (or other future epidemics or pandemics) at
the macro-level and on individual businesses are unpredictable and may result in significant and prolonged effects on the Fund’s
performance.
Investing
in Stocks Risk. Common stock represents an ownership interest in
a company. It ranks below preferred stock and debt securities in claims for dividends and in claims for assets of the issuer in a liquidation
or bankruptcy. Common stocks may be exchange-traded or over-the-counter securities. Over-the-counter securities may be less liquid than
exchange-traded securities.
The
value of the Fund’s portfolio may be affected by changes in the stock
markets. Stocks and other equity securities fluctuate in price in response to changes to equity markets in general. Stock markets may
experience significant short-term volatility and may fall or rise sharply at times. Adverse events in any part of the equity or fixed-income
markets may have unexpected negative effects on other market segments. Different stock markets may behave differently from each other
and U.S. stock markets may move in the opposite direction from one or more foreign stock markets.
The
prices of individual stocks generally do not all move in the same direction
at the same time. However, individual stock prices tend to go up and down more dramatically than those of certain other types of investments,
such as bonds. A variety of factors can negatively affect the price of a particular company’s stock. These factors may include,
but are not limited to: poor earnings reports, a loss of customers, litigation against the company, general unfavorable performance of
the company’s sector or industry, or changes in government regulations affecting the company or its industry. To the extent that
securities of a particular type are emphasized (for example foreign stocks, stocks of small- or mid-cap companies, growth or value stocks,
or stocks of companies in a particular industry), their share values may fluctuate more in response to events affecting the market for
those types of securities.
Debt
Securities Risk. The prices of debt securities held by the Fund
will be affected by changes in interest rates, the creditworthiness of the issuer and other factors. An increase in prevailing interest
rates typically causes the value of existing debt securities to fall and often has a greater impact on longer-duration debt securities
and higher quality debt securities. Falling interest rates will cause the Fund to reinvest the proceeds of debt securities that have been
repaid by the issuer at lower interest rates. Falling interest rates may also reduce the Fund’s distributable income because interest
payments on floating rate debt instruments held by the Fund will decline. The Fund could lose money on investments in debt securities
if the issuer or borrower fails to meet its obligations to make interest payments and/or to repay principal in a timely manner. If an
issuer seeks to restructure the terms of its borrowings or the Fund is required to seek recovery upon a default in the payment of interest
or the repayment of principal, the Fund may incur additional expenses. Changes in an issuer’s financial strength, the market’s
perception of such strength or in the credit rating of the issuer or the security may affect the value of debt securities. The Adviser’s
credit analysis may fail to anticipate such changes, which could result in buying a debt security at an inopportune time or failing to
sell a debt security in advance of a price decline or other credit event.
Preferred
Securities Risk. Preferred securities are subject to issuer-specific
and market risks applicable generally to equity securities. Preferred stock has a set dividend rate and ranks ahead of common stocks and
behind debt securities in claims for dividends and for assets of the issuer in a liquidation or bankruptcy. Preferred securities also
may be subordinated to bonds or other debt instruments in an issuer’s capital structure, subjecting them to a greater risk of non-payment
than these more senior securities. For this reason, the value of preferred securities will usually react more strongly than bonds and
other debt securities to actual or perceived changes in the company’s financial condition or prospects. Preferred securities may
be less liquid than many other securities, such as common stocks, and generally offer no voting rights with respect to the issuer.
Convertible
Securities Risk. The market value of a convertible security performs
like that of a regular debt security; that is, if market interest rates rise, the value of a convertible security usually falls. In addition,
convertible securities are subject to the risk that the issuer will not be able to pay interest or dividends when due, and their market
value may change based on changes in the issuer’s credit rating or the market’s perception of the issuer’s creditworthiness.
Convertible securities can be converted into or exchanged for a set amount of common stock of an issuer within a particular period of
time at a specified price or according to a price formula. Convertible debt securities pay interest and convertible preferred stocks pay
dividends until they mature or are converted, exchanged or redeemed. Some convertible debt securities may be considered “equity
equivalents” because of the feature that makes them convertible into common stock. Since a convertible security derives a portion
of its value from the common stock into which it may be converted, a convertible security is also subject to the same types of market
and issuer risks that apply to the underlying common stock. In addition, certain convertible securities are subject to involuntary conversions
and may undergo principal write-downs upon the occurrence of certain triggering events. These convertible securities are subject to an
increased risk of loss and are generally subordinate in rank to other debt obligations of the issuer. Convertible securities may be rated
below investment grade, which are considered to have more speculative characteristics and greater susceptibility to default or decline
in market value than investment grade securities.
U.S.
Government Obligations Risk. Obligations of U.S. Government agencies
and authorities receive varying levels of support and may not be backed by the full faith and credit of the U.S. Government, which could
affect the Fund’s ability to recover should they default. No assurance can be given that the U.S. Government will provide financial
support to its agencies and authorities if it is not obligated by law to do so.
6 Invesco
Equity and Income Fund
Zero
Coupon or Pay-In-Kind Securities Risk. Zero coupon and pay-in-kind
securities may be subject to greater fluctuation in value and less liquidity in the event of adverse market conditions than comparably
rated securities paying cash interest at regular interest payment periods. Prices on non-cash-paying instruments may be more sensitive
to changes in the issuer’s financial condition, fluctuation in interest rates and market demand/supply imbalances than cash-paying
securities with similar credit ratings, and thus may be more speculative. Investors may purchase zero coupon and pay-in-kind securities
at a price below the amount payable at maturity. Because such securities do not entitle the holder to any periodic payments of interest
prior to maturity, this prevents any reinvestment of interest payments at prevailing interest rates if prevailing interest rates rise.
The higher yields and interest rates on pay-in-kind securities reflect the payment deferral and increased credit risk associated with
such instruments and that such investments may represent a higher credit risk than coupon loans. Pay-in-kind securities may have a potential
variability in valuations because their continuing accruals require continuing judgments about the collectability of the deferred payments
and the value of any associated collateral. Special tax considerations are associated with investing in certain lower-grade securities,
such as zero coupon or pay-in-kind securities.
Small-
and Mid-Capitalization Companies Risk. Investing in securities
of small- and mid-capitalization companies involves greater risk than customarily is associated with investing in larger, more established
companies. Stocks of small- and mid-capitalization companies tend to be more vulnerable to changing market conditions, may have little
or no operating history or track record of success, and may have more limited product lines and markets, less experienced management and
fewer financial resources than larger companies. These companies’ securities may be more volatile and less liquid than those of
more established companies. They may be more sensitive to changes in a company’s earnings expectations and may experience more abrupt
and erratic price movements. Smaller companies’ securities often trade in lower volumes and in many instances, are traded over-the-counter
or on a regional securities exchange, where the frequency and volume of trading is substantially less than is typical for securities of
larger companies traded on national securities exchanges. Therefore, the securities of smaller companies may be subject to wider price
fluctuations and it might be harder for the Fund to dispose of its holdings at an acceptable price when it wants to sell them. In addition,
investors might seek to trade Fund shares based on their knowledge or understanding of the value of smaller company securities (this is
sometimes referred to as “price arbitrage”), which could interfere with the efficient management of the Fund. Since small
and mid-cap companies typically reinvest a high proportion of their earnings in their business, they may not pay dividends for some time,
particularly if they are newer companies. It may take a substantial period of time to realize a gain on an investment in a small- or mid-cap
company, if any gain is realized at all. The relative sizes of companies may change over time as the securities market changes, and the
Fund is not required to sell the securities of companies whose market capitalizations have grown or decreased due to market fluctuations.
Rights
and Warrants Risk. Rights and warrants may be purchased directly
or acquired as part of other securities. Warrants are options to purchase equity securities at a specific price during a specific period
of time. The price of a warrant does not necessarily move parallel to, and is generally more volatile than, the price of the underlying
security. Warrants may be significantly less valuable or worthless on their expiration date and may also be postponed or terminated early,
resulting in a partial or total loss. Rights are similar to warrants, but normally have a short duration and are distributed directly
by the issuer to its shareholders. Rights and warrants have no voting rights, receive no dividends and have no rights with respect to
the assets of the issuer. Warrants and rights are highly volatile and, therefore, more susceptible to sharp declines in value than the
underlying security might be. The market for rights or warrants may be very limited and it may be difficult to sell them promptly at an
acceptable price.
Changing
Fixed Income Market Conditions Risk. Increases
in the federal funds and equivalent foreign rates or other changes to monetary policy or regulatory actions may expose fixed income markets
to heightened volatility and reduced liquidity for certain fixed income investments, particularly those with longer maturities. It is
difficult to predict the impact of interest rate changes on various markets. In addition, decreases in fixed income dealer market-making
capacity may also potentially lead to heightened volatility and reduced liquidity in the fixed income markets. As a result, the value
of the Fund’s investments and share price may decline. Changes in
central bank policies
could also result in higher than normal redemptions by shareholders,
which could potentially increase the Fund’s portfolio turnover rate and transaction costs and potentially lower the Fund’s
performance returns.
Foreign
Securities Risk. The value of the Fund's foreign investments may
be adversely affected by political and social instability in the home countries of the issuers of the investments, by changes in economic
or taxation policies in those countries, or by the difficulty in enforcing obligations in those countries. Foreign investments also involve
the risk of the possible seizure, nationalization or expropriation of the issuer or foreign deposits (in which the Fund could lose its
entire investments in a certain market) and the possible adoption of foreign governmental restrictions such as exchange controls. Foreign
companies generally may be subject to less stringent regulations than U.S. companies, including financial reporting requirements and auditing
and accounting controls, and may therefore be more susceptible to fraud or corruption. Also, there may be less publicly available information
about companies in certain foreign countries than about U.S. companies making it more difficult for the Adviser to evaluate those companies.
The laws of certain countries may put limits on the Fund’s ability to recover its assets held at a foreign bank if the foreign bank,
depository or issuer of a security, or any of their agents, goes bankrupt. Trading in many foreign securities may be less liquid and more
volatile than U.S. securities due to the size of the market or other factors. Changes in political and economic factors in one country
or region could adversely affect conditions in another country or region. Investments in foreign securities may also expose the Fund to
time-zone arbitrage risk. At times, the Fund may emphasize investments in a particular country or region and may be subject to greater
risks from adverse events that occur in that country or region. Unless the Fund has hedged its foreign currency exposure, foreign securities
risk also involves the risk of negative foreign currency rate fluctuations, which may cause the value of securities denominated in such
foreign currency (or other instruments through which the Fund has exposure to foreign currencies) to decline in value. Currency exchange
rates may fluctuate significantly over short periods of time. Currency hedging strategies, if used, are not always successful. For instance,
currency forward contracts, if used by the Fund, could reduce performance if there are unanticipated changes in currency exchange rates.
Depositary
Receipts Risk. Depositary receipts involve many of the same risks
as those associated with direct investment in foreign securities. In addition, the underlying issuers of certain depositary receipts,
particularly unsponsored or unregistered depositary receipts, are under no obligation to distribute shareholder communications to the
holders of such receipts or to pass through to them any voting rights with respect to the deposited securities. The Fund may therefore
receive less timely information or have less control than if it invested directly in the foreign issuer.
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
7 Invesco
Equity and Income Fund
group
of industries is available in its annual and semi-annual reports to shareholders and in its reports on Form N-PORT filed with the SEC.
REIT
Risk/Real Estate Risk. Investments in real estate related instruments
may be adversely affected by economic, legal, cultural, environmental or technological factors that affect property values, rents or occupancies.
Real estate companies, including REITs or similar structures, tend to be small- and mid-cap companies and their shares may be more volatile
and less liquid than larger companies. The value of investments in real estate related companies may be affected by the quality of management,
the ability to repay loans, the utilization of leverage and financial covenants related thereto, whether the company carries adequate
insurance and environmental factors. If a real estate related company defaults on certain types of debt obligations held by the Fund,
the Fund may acquire real estate directly, which involves additional risks such as environmental liabilities; difficulty in valuing and
selling the real estate; and economic or regulatory changes.
Derivatives
Risk. A derivative is an instrument whose value depends largely
on (and is derived from) the value of an underlying security, currency, commodity, interest rate, index or other asset (each referred
to as an underlying asset). In addition to risks relating to the underlying assets, the use of derivatives may include other, possibly
greater, risks, which are described below.
◾
Counterparty
Risk. Certain derivatives do not trade on an established exchange
(referred to as over-the-counter (OTC) derivatives) and are simply financial contracts between the Fund and a counterparty. When the Fund
is owed money on an OTC derivative, the Fund is dependent on the counterparty to pay or, in some cases, deliver the underlying asset,
unless the Fund can otherwise sell its derivative contract to a third party prior to its expiration. Many counterparties are financial
institutions such as banks and broker-dealers and their creditworthiness (and ability to pay or perform) may be negatively impacted by
factors affecting financial institutions generally. In addition, in the event that a counterparty becomes bankrupt or insolvent, the Fund’s
ability to recover the collateral that the Fund has on deposit with the counterparty could be delayed or impaired. For derivatives traded
on a centralized exchange, the Fund generally is dependent upon the solvency of the relevant exchange clearing house (which acts as a
guarantor for each contractual obligation under such derivatives) for payment on derivative instruments for which the Fund is owed money.
◾
Leverage
Risk. Many derivatives do not require a payment up front equal
to the economic exposure created by holding a position in the derivative, which creates a form of leverage. As a result, an adverse change
in the value of the underlying asset could result in the Fund sustaining a loss that is substantially greater than the amount invested
in the derivative or the anticipated value of the underlying asset. In addition,
some derivatives have the potential for unlimited loss, regardless
of the size of the Fund’s initial investment. Leverage may therefore make the Fund’s returns more volatile and increase
the risk of loss. In certain market conditions, losses on derivative
instruments can grow larger while the value of the Fund’s other assets fall, resulting in the Fund’s derivative positions
becoming a larger percentage of the Fund’s investments.
◾
Liquidity
Risk. There is a smaller pool of buyers and sellers for certain
derivatives, particularly OTC derivatives, than more traditional investments such as stocks. These buyers and sellers are often financial
institutions that may be unable or unwilling to buy or sell derivatives during times of financial or market stress. Derivative instruments
may therefore be less liquid than more traditional investments and the Fund may be unable to sell or exit its derivative positions at
a desirable time or price. This risk may be more acute under adverse market conditions, during which the Fund may be most in need of liquidating
its derivative positions. To the extent that the Fund is unable to exit a derivative position because of market
illiquidity,
the Fund may not be able to prevent further losses of value in its derivatives holdings and the liquidity of the Fund and its ability
to meet redemption requests may be impaired to the extent that a substantial portion of the Fund’s otherwise liquid assets must
be used as margin. Another consequence of illiquidity is that the Fund may be required to hold a derivative instrument to maturity and
take or make delivery of the underlying asset that the Adviser would otherwise avoid.
◾
Forward
Foreign Currency Contracts Risk. Forward foreign currency
contracts are used to lock in the U.S. dollar price of a security denominated in a foreign currency or protect against possible losses
from changes in the relative value of the U.S. dollar against a foreign currency. They are subject to the risk that anticipated
currency movements will not be accurately predicted or do not correspond accurately to changes in the value of the fund's holdings, which
could result in losses and additional transaction costs. The use of forward contracts could reduce performance if there are unanticipated
changes in currency prices. A contract to sell a foreign currency would limit any potential gain that might be realized if the value of
the currency increases. A forward foreign currency contract may also result in losses in the event of a default or bankruptcy of the counterparty.
◾
Futures
Contracts Risk. The volatility of futures contracts prices has
been historically greater than the volatility of stocks and bonds. The liquidity of the futures market depends on participants entering
into offsetting transactions rather than making or taking delivery. To the extent participants decide to make or take delivery, liquidity
in the futures market could be reduced. In addition, futures exchanges often impose a maximum permissible price movement on each futures
contract for each trading session. The Fund may be disadvantaged if it is prohibited from executing a trade outside the daily permissible
price movement.
◾
Options
Risk. If the Fund sells a put option, there is a risk that the
Fund may be required to buy the underlying investment at a disadvantageous price. If the Fund sells a call option, there is a risk that
the Fund may be required to sell the underlying investment at a disadvantageous price. If the Fund sells a call option on an investment
that the Fund owns (a “covered call”) and the investment has increased in value when the option is exercised, the Fund will
be required to sell the investment at the call price and will not be able to realize any of the investment’s value above the call
price. Options may involve economic leverage, which could result in greater price volatility than other investments.
◾
Other
Risks. Compared to other types of investments, derivatives may
be harder to value and may also be less tax efficient, as described under the “Taxes” section of the prospectus. In addition,
changes in government regulation of derivative instruments could affect the character, timing and amount of the Fund’s taxable income
or gains, and may limit or prevent the Fund from using certain types of derivative instruments as a part of its investment strategy, which
could make the investment strategy more costly to implement or require the Fund to change its investment strategy. Derivatives strategies
may not always be successful. For example, to the extent that the Fund uses derivatives for hedging or to gain or limit exposure to a
particular market or market segment, there may be imperfect correlation between the value of the derivative instrument and the value of
the instrument being hedged or the relevant market or market segment, in which case the Fund may not realize the intended benefits. There
is also the risk that during adverse market conditions, an instrument which would usually operate as a hedge provides no hedging benefits
at all. The Fund’s use of derivatives may be limited by the requirements for taxation of the Fund as a regulated investment company.
8 Invesco
Equity and Income Fund
Active
Trading Risk. Active trading of portfolio securities may result
in high brokerage costs, which may lower the Fund’s actual return. Active trading also may increase the proportion of the Fund’s
gains that are short term, which are taxed at a higher rate than long term gains.
Value
Investing Risk.
Value investing entails the risk that if the market does not recognize that a selected security is undervalued, the prices of that security
might not appreciate as anticipated. A value investing approach could also lead to acquiring fewer securities that might experience rapid
price increases during times of market advances. This could cause the investments to underperform strategies that seek capital appreciation
by employing only a growth or other non-value approach. Value investing has also gone in and out of favor during past market cycles and
is likely to continue to do so. During periods when value investing is out of favor or when markets are unstable, the securities of “value”
companies may underperform the securities of “growth” companies or the overall stock market.
Management
Risk. The Fund is actively managed and depends heavily on the Adviser’s
judgment about markets, interest rates or the attractiveness, relative values, liquidity, or potential appreciation of particular investments
made for the Fund’s portfolio. The Fund could experience losses if these judgments prove to be incorrect. There can be no guarantee
that the Adviser’s investment techniques or investment decisions will produce the desired results. Additionally, legislative, regulatory,
or tax developments may affect the investments or investment strategies available to the Adviser in connection with managing the Fund,
which may also adversely affect the ability of the Fund to achieve its investment objective.
Portfolio
Holdings
A description
of Fund policies and procedures with respect to the disclosure of Fund portfolio holdings is available in the SAI, which is available
at www.invesco.com/us.
Fund Management
The
Adviser(s)
Invesco
serves as the Fund’s investment adviser. The Adviser manages the investment operations of the Fund as well as other investment portfolios
that encompass a broad range of investment objectives, and has agreed to perform or arrange for the performance of the Fund’s day-to-day
management. The Adviser is located at 1555 Peachtree Street, N.E., Atlanta, Georgia 30309. The Adviser, as successor in interest to multiple
investment advisers, has been an investment adviser since 1976.
Sub-Advisers.
Invesco has entered into one or more Sub-Advisory Agreements with certain affiliates to serve as sub-advisers to the Fund (the Sub-Advisers).
Invesco may appoint the Sub-Advisers from time to time to provide discretionary investment management services, investment advice, and/or
order execution services to the Fund. The Sub-Advisers and the Sub-Advisory Agreements are described in the SAI.
Exclusion
of Adviser from Commodity Pool Operator Definition
With
respect to the Fund, the Adviser has claimed an exclusion from the definition of “commodity pool operator” (CPO) under the
Commodity Exchange Act (CEA) and the rules of the Commodity Futures Trading Commission (CFTC) and, therefore, is not subject to CFTC registration
or regulation as a CPO. In addition, the Adviser is relying upon a related exclusion from the definition of “commodity trading advisor”
(CTA) under the CEA and the rules of the CFTC with respect to the Fund.
The
terms of the CPO exclusion require the Fund, among other things, to
adhere to certain limits on its investments in “commodity interests.” Commodity interests include commodity futures, commodity
options and swaps, which in turn include non-deliverable forwards. The Fund is permitted to invest in these instruments as further described
in the Fund’s SAI. However, the Fund is not intended as a vehicle for trading in the
commodity
futures, commodity options or swaps markets. The CFTC has neither reviewed nor approved the Adviser’s reliance on these exclusions,
or the Fund, its investment strategies or this prospectus.
Adviser
Compensation
During
the fiscal year ended August 31, 2022, the Adviser received compensation of 0.35% of the Fund’s average daily net assets, after
fee waiver and/or expense reimbursement, if any.
A
discussion regarding the basis for the Board’s approval of the investment
advisory agreement and investment sub-advisory agreements of the Fund is available in the Fund’s most recent annual or semi-annual
report to shareholders.
Portfolio
Managers
The
following individuals are jointly and primarily responsible for the day-to-day management of the Fund’s portfolio:
◾
Brian
Jurkash (co-lead manager), Portfolio Manager, who has been responsible for the Fund since 2015 and has been associated with Invesco and/or
its affiliates since 2000.
◾
Matthew
Titus,
CFA (co-lead manager), Portfolio Manager, who has been responsible for the Fund since 2016 and has been associated with Invesco and/or
its affiliates since 2016. From 2004 to 2016, he was employed by American Century Investments, where he served as co-manager of the firm's
relative value fund and most recently served as lead manager of such fund.
◾
Chuck
Burge, Portfolio Manager, who has been responsible for the Fund since 2010 and has been associated with Invesco and/or its affiliates
since 2002.
◾
Sergio
Marcheli, Portfolio Manager, who has been responsible for the Fund since 2010 and has been associated with Invesco and/or its affiliates
since 2010. Mr. Marcheli served as Portfolio Manager of the predecessor fund since 2003.
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.
9 Invesco
Equity and Income 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, quarterly.
Capital
Gains Distributions
The
Fund generally distributes long-term and short-term capital gains (net of any available capital loss carryovers), if any, at least annually.
Capital gains distributions may vary considerably from year to year as a result of the Fund's normal investment activities and cash flows.
During a time of economic volatility, the Fund may experience capital losses and unrealized depreciation in value of investments, the
effect of which may be to reduce or eliminate capital gains distributions for a period of time. Even though the Fund may experience a
current year loss, it may nonetheless distribute prior year capital gains.
10 Invesco
Equity and Income Fund
Financial Highlights
The financial
highlights show the Fund’s financial history for the past five fiscal years or, if shorter, the period of operations of the Fund
or any of its share classes. The financial highlights table is intended to help you understand the Fund’s financial performance.
Certain information reflects financial results for a single Fund share.
The
total returns in the table represent the rate that an investor would have
earned (or lost) on an investment in the Fund (assuming reinvestment of all dividends and distributions).
This
information has been audited by PricewaterhouseCoopers LLP, an independent
registered public accounting firm, whose report, along with the Fund’s financial statements, is included in the Fund’s annual
report, which is available upon request.
|
|
Net
asset
value,
beginning
of
period |
Net
investment
income(a)
|
Net
gains
(losses)
on
securities
(both
realized
and
unrealized)
|
Total
from
investment
operations
|
Dividends
from
net
investment
income
|
Distributions
from
net
realized
gains
|
Total
distributions
|
Net
asset
value,
end
of
period |
Total
return
(b)
|
Net
assets,
end
of period
(000's
omitted) |
Ratio
of
expenses
to
average
net
assets
with
fee waivers
and/or
expenses
absorbed
|
Ratio
of
expenses
to
average net
assets
without
fee
waivers
and/or
expenses
absorbed
|
Ratio
of net
investment
income
to
average
net
assets |
Portfolio
turnover
(c)
|
|
Class
A | ||||||||||||||
|
Year
ended 08/31/22 |
$12.52
|
$0.14
|
$(0.83)
|
$(0.69)
|
$(0.16)
|
$(1.40)
|
$(1.56)
|
$10.27
|
(6.36)%
|
$9,654,157
|
0.78%
|
0.78%
|
1.25%
|
152%
|
|
Year
ended 08/31/21 |
9.83
|
0.13
|
2.87
|
3.00
|
(0.17)
|
(0.14)
|
(0.31)
|
12.52
|
31.02
|
10,841,867
|
0.78
|
0.78
|
1.10
|
127
|
|
Year
ended 08/31/20 |
10.12
|
0.17
|
0.18
|
0.35
|
(0.19)
|
(0.45)
|
(0.64)
|
9.83
|
3.53
|
9,034,006
|
0.78
|
0.79
|
1.75
|
133
|
|
Year
ended 08/31/19 |
11.10
|
0.19
|
(0.36)
|
(0.17)
|
(0.21)
|
(0.60)
|
(0.81)
|
10.12
|
(0.96)
|
9,845,902
|
0.78
|
0.79
|
1.87
|
138
|
|
Year
ended 08/31/18 |
10.96
|
0.17
|
0.70
|
0.87
|
(0.22)
|
(0.51)
|
(0.73)
|
11.10
|
8.21
|
10,151,828
|
0.77
|
0.78
|
1.55
|
129
|
|
| ||||||||||||||
|
Class
C | ||||||||||||||
|
Year
ended 08/31/22 |
12.25
|
0.06
|
(0.81)
|
(0.75)
|
(0.07)
|
(1.40)
|
(1.47)
|
10.03
|
(7.01)
|
275,540
|
1.53
|
1.53
|
0.50
|
152
|
|
Year
ended 08/31/21 |
9.63
|
0.04
|
2.81
|
2.85
|
(0.09)
|
(0.14)
|
(0.23)
|
12.25
|
29.94
|
362,829
|
1.53
|
1.53
|
0.35
|
127
|
|
Year
ended 08/31/20 |
9.91
|
0.10
|
0.19
|
0.29
|
(0.12)
|
(0.45)
|
(0.57)
|
9.63
|
2.87
|
402,761
|
1.53
|
1.54
|
1.00
|
133
|
|
Year
ended 08/31/19 |
10.89
|
0.12
|
(0.36)
|
(0.24)
|
(0.14)
|
(0.60)
|
(0.74)
|
9.91
|
(1.75)(d)
|
576,794
|
1.49(d)
|
1.50(d)
|
1.16(d)
|
138
|
|
Year
ended 08/31/18 |
10.76
|
0.09
|
0.69
|
0.78
|
(0.14)
|
(0.51)
|
(0.65)
|
10.89
|
7.43(d)
|
1,437,488
|
1.51(d)
|
1.52(d)
|
0.81(d)
|
129
|
|
| ||||||||||||||
|
Class
R | ||||||||||||||
|
Year
ended 08/31/22 |
12.59
|
0.11
|
(0.82)
|
(0.71)
|
(0.13)
|
(1.40)
|
(1.53)
|
10.35
|
(6.48)
|
96,887
|
1.03
|
1.03
|
1.00
|
152
|
|
Year
ended 08/31/21 |
9.89
|
0.10
|
2.88
|
2.98
|
(0.14)
|
(0.14)
|
(0.28)
|
12.59
|
30.61
|
114,169
|
1.03
|
1.03
|
0.85
|
127
|
|
Year
ended 08/31/20 |
10.17
|
0.15
|
0.19
|
0.34
|
(0.17)
|
(0.45)
|
(0.62)
|
9.89
|
3.35
|
118,249
|
1.03
|
1.04
|
1.50
|
133
|
|
Year
ended 08/31/19 |
11.16
|
0.17
|
(0.37)
|
(0.20)
|
(0.19)
|
(0.60)
|
(0.79)
|
10.17
|
(1.30)
|
148,055
|
1.03
|
1.04
|
1.62
|
138
|
|
Year
ended 08/31/18 |
11.01
|
0.14
|
0.72
|
0.86
|
(0.20)
|
(0.51)
|
(0.71)
|
11.16
|
8.00
|
203,003
|
1.02
|
1.03
|
1.30
|
129
|
|
| ||||||||||||||
|
Class
Y | ||||||||||||||
|
Year
ended 08/31/22 |
12.52
|
0.17
|
(0.83)
|
(0.66)
|
(0.19)
|
(1.40)
|
(1.59)
|
10.27
|
(6.12)
|
702,847
|
0.53
|
0.53
|
1.50
|
152
|
|
Year
ended 08/31/21 |
9.84
|
0.15
|
2.87
|
3.02
|
(0.20)
|
(0.14)
|
(0.34)
|
12.52
|
31.22
|
778,769
|
0.53
|
0.53
|
1.35
|
127
|
|
Year
ended 08/31/20 |
10.12
|
0.19
|
0.20
|
0.39
|
(0.22)
|
(0.45)
|
(0.67)
|
9.84
|
3.91
|
749,507
|
0.53
|
0.54
|
2.00
|
133
|
|
Year
ended 08/31/19 |
11.11
|
0.22
|
(0.37)
|
(0.15)
|
(0.24)
|
(0.60)
|
(0.84)
|
10.12
|
(0.81)
|
987,287
|
0.53
|
0.54
|
2.12
|
138
|
|
Year
ended 08/31/18 |
10.96
|
0.20
|
0.71
|
0.91
|
(0.25)
|
(0.51)
|
(0.76)
|
11.11
|
8.58
|
1,192,995
|
0.52
|
0.53
|
1.80
|
129
|
|
| ||||||||||||||
|
Class
R5 | ||||||||||||||
|
Year
ended 08/31/22 |
12.52
|
0.18
|
(0.82)
|
(0.64)
|
(0.20)
|
(1.40)
|
(1.60)
|
10.28
|
(5.98)
|
218,033
|
0.48
|
0.48
|
1.55
|
152
|
|
Year
ended 08/31/21 |
9.84
|
0.16
|
2.86
|
3.02
|
(0.20)
|
(0.14)
|
(0.34)
|
12.52
|
31.28
|
242,934
|
0.46
|
0.46
|
1.42
|
127
|
|
Year
ended 08/31/20 |
10.12
|
0.20
|
0.19
|
0.39
|
(0.22)
|
(0.45)
|
(0.67)
|
9.84
|
3.98
|
235,461
|
0.47
|
0.48
|
2.06
|
133
|
|
Year
ended 08/31/19 |
11.11
|
0.22
|
(0.36)
|
(0.14)
|
(0.25)
|
(0.60)
|
(0.85)
|
10.12
|
(0.75)
|
397,607
|
0.47
|
0.48
|
2.18
|
138
|
|
Year
ended 08/31/18 |
10.96
|
0.20
|
0.72
|
0.92
|
(0.26)
|
(0.51)
|
(0.77)
|
11.11
|
8.64
|
494,838
|
0.47
|
0.48
|
1.85
|
129
|
|
| ||||||||||||||
|
Class
R6 | ||||||||||||||
|
Year
ended 08/31/22 |
12.52
|
0.18
|
(0.83)
|
(0.65)
|
(0.20)
|
(1.40)
|
(1.60)
|
10.27
|
(6.01)
|
844,958
|
0.41
|
0.41
|
1.62
|
152
|
|
Year
ended 08/31/21 |
9.83
|
0.17
|
2.87
|
3.04
|
(0.21)
|
(0.14)
|
(0.35)
|
12.52
|
31.50
|
913,379
|
0.39
|
0.39
|
1.49
|
127
|
|
Year
ended 08/31/20 |
10.12
|
0.21
|
0.18
|
0.39
|
(0.23)
|
(0.45)
|
(0.68)
|
9.83
|
3.97
|
1,001,337
|
0.38
|
0.39
|
2.15
|
133
|
|
Year
ended 08/31/19 |
11.10
|
0.23
|
(0.35)
|
(0.12)
|
(0.26)
|
(0.60)
|
(0.86)
|
10.12
|
(0.56)
|
1,178,312
|
0.38
|
0.39
|
2.27
|
138
|
|
Year
ended 08/31/18 |
10.96
|
0.21
|
0.71
|
0.92
|
(0.27)
|
(0.51)
|
(0.78)
|
11.10
|
8.64
|
1,193,501
|
0.38
|
0.39
|
1.94
|
129
|
|
| ||||||||||||||
|
(a)
|
Calculated
using average shares outstanding. |
|
(b)
|
Includes
adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value
for financial reporting purposes and the returns
based
upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges
and is not annualized for periods less than one
year,
if applicable. |
|
(c)
|
Portfolio
turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
|
(d)
|
The
total return, ratio of expenses to average net assets and ratio of net investment income to average net assets reflect actual 12b-1 fees
of 0.97% and 0.99% for the years ended August 31,
2019
and 2018, respectively. |
11 Invesco
Equity and Income 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
|
0.79%
|
0.79%
|
0.79%
|
0.79%
|
0.79%
|
0.79%
|
0.79%
|
0.79%
|
0.79%
|
0.79%
|
|
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 |
(1.52%)
|
2.62%
|
6.94%
|
11.45%
|
16.14%
|
21.03%
|
26.12%
|
31.43%
|
36.97%
|
42.73%
|
|
End
of Year Balance |
$9,847.85
|
$10,262.44
|
$10,694.49
|
$11,144.73
|
$11,613.92
|
$12,102.86
|
$12,612.40
|
$13,143.38
|
$13,696.71
|
$14,273.35
|
|
Estimated
Annual Expenses |
$626.23
|
$79.44
|
$82.78
|
$86.26
|
$89.90
|
$93.68
|
$97.63
|
$101.74
|
$106.02
|
$110.48
|
|
| ||||||||||
|
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
|
0.79%
|
0.79%
|
0.79%
|
0.79%
|
0.79%
|
0.79%
|
0.79%
|
0.79%
|
0.79%
|
0.79%
|
|
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 |
4.21%
|
8.60%
|
13.17%
|
17.93%
|
22.90%
|
28.07%
|
33.46%
|
39.08%
|
44.94%
|
51.04%
|
|
End
of Year Balance |
$10,421.00
|
$10,859.72
|
$11,316.92
|
$11,793.36
|
$12,289.86
|
$12,807.26
|
$13,346.45
|
$13,908.34
|
$14,493.88
|
$15,104.07
|
|
Estimated
Annual Expenses |
$80.66
|
$84.06
|
$87.60
|
$91.29
|
$95.13
|
$99.13
|
$103.31
|
$107.66
|
$112.19
|
$116.91
|
|
| ||||||||||
|
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
|
1.54%
|
1.54%
|
1.54%
|
1.54%
|
1.54%
|
1.54%
|
1.54%
|
1.54%
|
0.79%
|
0.79%
|
|
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 |
3.46%
|
7.04%
|
10.74%
|
14.58%
|
18.54%
|
22.64%
|
26.88%
|
31.27%
|
36.80%
|
42.56%
|
|
End
of Year Balance |
$10,346.00
|
$10,703.97
|
$11,074.33
|
$11,457.50
|
$11,853.93
|
$12,264.08
|
$12,688.41
|
$13,127.43
|
$13,680.10
|
$14,256.03
|
|
Estimated
Annual Expenses |
$156.66
|
$162.08
|
$167.69
|
$173.50
|
$179.50
|
$185.71
|
$192.13
|
$198.78
|
$105.89
|
$110.35
|
|
| ||||||||||
|
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
|
1.04%
|
1.04%
|
1.04%
|
1.04%
|
1.04%
|
1.04%
|
1.04%
|
1.04%
|
1.04%
|
1.04%
|
|
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 |
3.96%
|
8.08%
|
12.36%
|
16.81%
|
21.43%
|
26.24%
|
31.24%
|
36.44%
|
41.84%
|
47.46%
|
|
End
of Year Balance |
$10,396.00
|
$10,807.68
|
$11,235.67
|
$11,680.60
|
$12,143.15
|
$12,624.02
|
$13,123.93
|
$13,643.64
|
$14,183.93
|
$14,745.61
|
|
Estimated
Annual Expenses |
$106.06
|
$110.26
|
$114.63
|
$119.16
|
$123.88
|
$128.79
|
$133.89
|
$139.19
|
$144.70
|
$150.43
|
|
| ||||||||||
|
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
|
0.54%
|
0.54%
|
0.54%
|
0.54%
|
0.54%
|
0.54%
|
0.54%
|
0.54%
|
0.54%
|
0.54%
|
|
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 |
4.46%
|
9.12%
|
13.99%
|
19.07%
|
24.38%
|
29.93%
|
35.72%
|
41.78%
|
48.10%
|
54.70%
|
|
End
of Year Balance |
$10,446.00
|
$10,911.89
|
$11,398.56
|
$11,906.94
|
$12,437.99
|
$12,992.72
|
$13,572.20
|
$14,177.52
|
$14,809.83
|
$15,470.35
|
|
Estimated
Annual Expenses |
$55.20
|
$57.67
|
$60.24
|
$62.92
|
$65.73
|
$68.66
|
$71.73
|
$74.92
|
$78.27
|
$81.76
|
|
| ||||||||||
|
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
|
0.49%
|
0.49%
|
0.49%
|
0.49%
|
0.49%
|
0.49%
|
0.49%
|
0.49%
|
0.49%
|
0.49%
|
|
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 |
4.51%
|
9.22%
|
14.15%
|
19.30%
|
24.68%
|
30.30%
|
36.18%
|
42.32%
|
48.74%
|
55.45%
|
|
End
of Year Balance |
$10,451.00
|
$10,922.34
|
$11,414.94
|
$11,929.75
|
$12,467.78
|
$13,030.08
|
$13,617.74
|
$14,231.90
|
$14,873.76
|
$15,544.56
|
|
Estimated
Annual Expenses |
$50.10
|
$52.36
|
$54.73
|
$57.19
|
$59.77
|
$62.47
|
$65.29
|
$68.23
|
$71.31
|
$74.52
|
|
| ||||||||||
|
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
|
0.42%
|
0.42%
|
0.42%
|
0.42%
|
0.42%
|
0.42%
|
0.42%
|
0.42%
|
0.42%
|
0.42%
|
|
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 |
4.58%
|
9.37%
|
14.38%
|
19.62%
|
25.10%
|
30.83%
|
36.82%
|
43.08%
|
49.64%
|
56.49%
|
|
End
of Year Balance |
$10,458.00
|
$10,936.98
|
$11,437.89
|
$11,961.75
|
$12,509.59
|
$13,082.53
|
$13,681.71
|
$14,308.34
|
$14,963.66
|
$15,648.99
|
|
Estimated
Annual Expenses |
$42.96
|
$44.93
|
$46.99
|
$49.14
|
$51.39
|
$53.74
|
$56.20
|
$58.78
|
$61.47
|
$64.29
|
|
| ||||||||||
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.
12 Invesco
Equity and Income Fund
Shareholder Account Information
In addition
to the Fund(s), the Adviser serves as investment adviser to many other Invesco mutual funds that are offered to investors (Invesco Funds
or Funds). The following information is about all of the Invesco Funds and their share classes that have different fees and expenses.
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 |
|
|
▪ 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) |
A-1 The
Invesco Funds
MCF—12/22
|
Share
Classes |
|
|
|
|
|
Class
A |
Class
C |
Class
R |
Class
Y |
Class
R5 and R6 |
|
|
▪ 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 International Core Equity 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 a specific
Fund may make additional purchases into Class AX and CX, respectively, of such specific Fund. All references in this “Shareholder
Account Information” section of this prospectus to Class A, C or R shares of the Invesco Funds shall include Class AX
(excluding Invesco Government Money Market Fund), or CX shares, respectively, of the Invesco Funds, unless otherwise noted. All references
in this “Shareholder Account Information” section of this prospectus to Invesco Cash Reserve Shares of Invesco Government
Money Market Fund shall include Class AX shares of Invesco Government Money Market Fund, unless otherwise noted.
Class P
Shares
In
addition to the other share classes discussed herein, the Invesco Summit Fund offers Class P shares, which were historically sold
only through the AIM Summit Investors Plans I and II (each a Plan and, collectively, the Summit Plans). Class P shares are sold with
no initial sales charge and have a 12b-1 fee of 0.10%. However, Class P shares are not sold to members of the general public. Only
shareholders who had accounts in the Summit Plans at the close of business on December 8, 2006 may purchase Class P shares and
only until the total of their combined investments in the Summit Plans and in Class P shares directly equals the face amount of their
former Plan under the 30 year extended investment option. The face amount of a Plan is the combined total of all scheduled monthly
investments under the Plan. For a Plan with a scheduled monthly investment of $100.00, the face amount would have been $36,000.00 under
the 30 year extended investment option.
Class R
Shares
Class R
shares are intended for 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 (except for the Invesco Master Loan Fund) are available for use by Employer Sponsored Retirement and Benefit
Plans, held either at the plan level or through omnibus accounts, that generally process no more than one net redemption and one net purchase
transaction each day.
Class
R5 and R6 shares of the Funds are also available to institutional investors.
Institutional investors are: banks, trust companies, collective trust funds, entities acting for the account of a public entity (e.g.,
Taft-Hartley funds, states, cities or government agencies), funds of funds or other pooled investment vehicles, 529 college savings plans,
financial intermediaries and corporations investing for their own accounts, endowments and foundations. For information regarding investment
minimums for Class R5 and R6 shares, please see “Minimum Investments” below.
Class
R6 shares of the Funds are also available through an intermediary that
has agreed with Invesco Distributors, Inc. to make such shares
A-2 The
Invesco Funds
available
for use in retail omnibus accounts that generally process no more than one net redemption and one net purchase transaction each day.
The
Invesco Master Loan Fund is only available for purchase by other Funds
in the Invesco fund family and other Invesco pooled investment vehicles.
Shareholders
eligible to purchase Class R6 Shares must meet the requirements
specified by their intermediary. Not all intermediaries offer Class R6 Shares to their customers.
Class S
Shares
Class S
shares are limited to investors who purchase shares with the proceeds received from a systematic contractual investment plan redemption
within the 12 months prior to purchasing Class S shares, and who purchase through an approved financial intermediary that has
an agreement with the distributor to sell Class S shares. Class S shares are not otherwise sold to members of the general public.
An investor purchasing Class S shares will not pay an initial sales charge. The investor will no longer be eligible to purchase additional
Class S shares at that point where the value of the contributions to the prior systematic contractual investment plan combined with
the subsequent Class S share contributions equals the face amount of what would have been the investor’s systematic contractual
investment plan under the 30-year investment option. The face amount of a systematic contractual investment plan is the combined total
of all scheduled monthly investments under that plan. For a plan with a scheduled monthly investment of $100.00, the face amount would
have been $36,000.00 under the 30-year extended investment option.
Class Y
Shares
Class
Y shares are available to (i) investors who purchase through an account that is charged an asset-based fee or commission by a financial
intermediary, including through brokerage platforms, where a broker is acting as the investor’s agent, that may require the payment
by the investor of a commission and/or other form of compensation to that broker, (ii) endowments, foundations, or Employer Sponsored
Retirement and Benefit Plans (with the exception of “Solo 401(k)” Plans and 403(b) custodial accounts held directly at Invesco),
(iii) banks or bank trust departments acting on their own behalf or as trustee or manager for trust accounts, or (iv) any current, former
or retired trustee, director, officer or employee (or immediate family members of a current, former or retired trustee, director, officer
or employee) of any Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
Subject
to any conditions or limitations imposed on the servicing of Class
Y shares by your financial adviser, if you received Class Y shares as a result of a merger or reorganization of a predecessor fund into
any of the Funds, you will be permitted to make additional Class Y share purchases. In addition, you will be permitted to make additional
Class Y shares purchases if you owned Class Y shares in a “Solo 401(k)” Plan or 403(b) custodial account held directly at
Invesco if you held such shares in your account on or prior to May 24, 2019.
Investor
Class Shares
Investor
Class shares are sold with no initial sales charge and have a maximum 12b-1 fee of 0.25%. Only the following persons may purchase Investor
Class shares:
◾
Investors
who established accounts prior to April 1, 2002, in Investor Class shares with Invesco Distributors, Inc. (Invesco Distributors) who have
continuously maintained an account in Investor Class shares (this includes anyone listed in the registration of an account, such as a
joint owner, trustee or custodian, and immediate family members of such persons) without a designated intermediary. These investors are
referred to as “Investor Class grandfathered investors.”
◾
Customers
of a financial intermediary that has had an agreement with the Funds’ distributor or any Funds that offered Investor Class shares
prior to April 1, 2002, that has continuously maintained such agreement. These intermediaries are referred to as “Investor
Class grandfathered intermediaries.”
◾
Any
current, former or retired trustee, director, officer or employee (or immediate family member of a current, former or retired trustee,
director, officer or employee) of any Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
For
additional shareholder eligibility requirements with respect to Invesco
Premier Portfolio, please see “Shareholder Account Information – Purchasing Shares and Shareholder Eligibility – Invesco
Premier Portfolio.”
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.
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 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
A-4 The
Invesco Funds
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.
Merrill
Lynch
Shareholders
purchasing Fund shares through a Merrill
Lynch platform
or account will be eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at Merrill Lynch
◾
Employer-sponsored
retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to fund those plans,
provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the plan;
◾
Shares
purchased by a 529 Plan (does not include 529 Plan unit or 529-specific share classes or equivalents);
◾
Shares
purchased through a Merrill Lynch affiliated investment advisory program;
◾
Shares
exchanged due to the holdings moving from a Merrill Lynch affiliated investment advisory program to a Merrill Lynch brokerage (non-advisory)
account pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers;
◾
Shares
purchased by third party investment advisors on behalf of their advisory clients through Merrill Lynch’s platform;
◾
Shares
of funds purchased through the Merrill Edge Self-Directed platform (if applicable);
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not
any other fund within the fund family);
◾
Shares
exchanged from Class C (i.e.
level-load) shares of the same fund pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers;
◾
Employees
and registered representatives of Merrill Lynch or its affiliates and their family members;
◾
Directors
or Trustees of the Fund, and employees of the Fund’s investment adviser or any of its affiliates, as described in this prospectus;
and
◾
Eligible
shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days
following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to
a front-end or deferred sales load (known as Rights of Reinstatement). Automated transactions (i.e. systematic purchases and withdrawals)
and purchases made after shares are automatically sold to pay Merrill Lynch’s account maintenance fees are not eligible for reinstatement.
◾
CDSC
Waivers on A and C Shares available at Merrill Lynch
◾
Death
or disability of the shareholder;
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund’s prospectus;
◾
Return
of excess contributions from an IRA Account;
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts pursuant to the Internal Revenue Code;
◾
Shares
sold to pay Merrill Lynch fees but only if the transaction is initiated by Merrill Lynch;
◾
Shares
acquired through a right of reinstatement;
◾
Shares
held in retirement brokerage accounts, that are converted to a lower cost share class due to transfer to a fee based account or platform
(applicable to A and C shares only); and
◾
Shares
received through an exchange due to the holdings moving from a Merrill Lynch affiliated investment advisory program to a Merrill Lynch
brokerage (non-advisory) account pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers.
◾
Front-end
load Discounts Available at Merrill Lynch: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this prospectus;
◾
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts as described in the Fund’s prospectus will be automatically
calculated based on the aggregated holding of fund family assets held by accounts (including 529 program holdings, where applicable) within
the purchaser’s household at Merrill Lynch. Eligible fund family assets not held at Merrill Lynch may be included in the ROA calculation
only if the shareholder notifies his or her financial advisor about such assets; and
◾
Letters
of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Merrill Lynch, over
a 13-month period of time (if applicable).
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).
A-5 The
Invesco Funds
Morgan
Stanley Wealth Management
Shareholders
purchasing Fund shares through a Morgan Stanley
Wealth Management transactional brokerage account will be eligible
only for the following front-end sales charge waivers with respect to Class A shares, which may differ from and may be more limited than
those disclosed elsewhere in this Fund’s Prospectus or SAI.
◾
Front-end
Sales Charge Waivers on Class A Shares available at Morgan Stanley Wealth Management
◾
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and
defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs, SAR-SEPs
or Keogh plans;
◾
Morgan
Stanley employee and employee-related accounts according to Morgan Stanley’s account linking rules;
◾
Shares
purchased through reinvestment of dividends and capital gains distributions when purchasing shares of the same fund;
◾
Shares
purchased through a Morgan Stanley self-directed brokerage account;
◾
Class
C (i.e., level-load) shares that are no longer subject to a contingent deferred sales charge and are converted to Class A shares of the
same fund pursuant to Morgan Stanley Wealth Management’s share class conversion program; and
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (i) the repurchase occurs within 90 days following the
redemption, (ii) the redemption and purchase occur in the same account, and (iii) redeemed shares were subject to a front-end or deferred
sales charge.
Raymond
James Financial Services, Inc.
Shareholders
purchasing Fund shares through a Raymond
James Financial Services, Inc., Raymond James affiliates and each
entity’s affiliates (Raymond James) platform or account, or through an introducing broker-dealer or independent registered investment
adviser for which Raymond James provides trade execution, clearance, and/or custody services, will be eligible only for the following
load waivers (front-end sales charge waivers and contingent deferred, or back-end, sales charge waivers) and discounts, which may differ
from those disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
sales load waivers on Class A shares available at Raymond James
◾
Shares
purchased in an investment advisory program.
◾
Shares
purchased within the same fund family through a systematic reinvestment of capital gains distributions and dividend distributions.
◾
Employees
and registered representatives of Raymond James or its affiliates and their family members as designated by Raymond James.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (known as Rights of Reinstatement).
◾
A
shareholder in the Fund’s Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate
share class) of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures
of Raymond James.
◾
CDSC
Waivers on Classes A and C shares available at Raymond James
◾
Death
or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the fund’s prospectus.
◾
Return
of excess contributions from an IRA Account.
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based
on applicable IRS regulations as described in the fund’s prospectus.
◾
Shares
sold to pay Raymond James fees but only if the transaction is initiated by Raymond James.
◾
Shares
acquired through a right of reinstatement.
◾
Front-end
load discounts available at Raymond James: breakpoints, rights of accumulation, and/or letters of intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of
fund family assets held by accounts within the purchaser’s household at Raymond James. Eligible fund family assets not held at Raymond
James may be included in the calculation of rights of accumulation only if the shareholder notifies his or her financial advisor about
such assets.
◾
Letters
of intent which allow for breakpoint discounts based on anticipated purchases within a fund family, over a 13-month time period. Eligible
fund family assets not held at Raymond James may be included in the calculation of letters of intent only if the shareholder notifies
his or her financial advisor about such assets.
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.
A-6 The
Invesco Funds
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.
◾
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.
Oppenheimer
& Co. Inc. (“OPCO”)
Shareholders
purchasing Fund shares through an OPCO
platform or account are eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund's prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at OPCO
◾
Employer-sponsored
retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to
fund
those plans, provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the
plan
◾
Shares
purchased by or through a 529 Plan
◾
Shares
purchased through an OPCO affiliated investment advisory program
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not
any other fund within the fund family)
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (known as Rights of Reinstatement).
◾
A
shareholder in the Fund's Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate share
class) of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures of OPCO
◾
Employees
and registered representatives of OPCO or its affiliates and their family members
◾
Directors
or Trustees of the Fund, and employees of the Fund's investment adviser or any of its affiliates, as described in this prospectus
◾
CDSC
Waivers on A and C Shares available at OPCO
◾
Death
or disability of the shareholder
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund's prospectus
◾
Return
of excess contributions from an IRA Account
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based
on applicable IRS regulations as described in the prospectus
◾
Shares
sold to pay OPCO fees but only if the transaction is initiated by OPCO Shares acquired through a right of reinstatement
◾
Front-end
load Discounts Available at OPCO: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding
of fund family assets held by accounts within the purchaser's household at OPCO. Eligible fund family assets not held at OPCO may be included
in the ROA calculation only if the shareholder notifies his or her financial advisor about such assets.
Robert
W. Baird & Co. Incorporated (“Baird”)
Shareholders
purchasing fund shares through a Baird
platform or account will only be eligible for the following sales charge waivers (front-end sales charge waivers and CDSC waivers) and
discounts, which may differ from those disclosed elsewhere in this prospectus or the SAI.
◾
Front-End
Sales Charge Waivers on Class A-shares Available at Baird
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund.
◾
Shares
purchased by employees and registered representatives of Baird or its affiliate and their family members as designated by Baird.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales charge (known as rights of reinstatement).
◾
A
shareholder in the Fund’s Class C Shares will have their shares converted at net asset value to Class A shares of the fund if the
shares are no longer subject to CDSC and the conversion is in line with the policies and procedures of Baird.
◾
Employer-sponsored
retirement plans or charitable accounts in a transactional brokerage account at Baird, including 401(k) plans, 457 plans, employer-sponsored
403(b) plans, profit sharing and money
A-7 The
Invesco Funds
purchase
pension plans and defined benefit plans. For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs,
Simple IRAs or SAR-SEPs.
◾
CDSC
Waivers on Classes A and C shares Available at Baird
◾
Shares
sold due to death or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund’s Prospectus.
◾
Return
of excess contributions from an IRA Account.
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching age 72 as described in
the Fund’s prospectus.
◾
Shares
sold to pay Baird fees but only if the transaction is initiated by Baird.
◾
Shares
acquired through a right of reinstatement.
◾
Front-End
Sales Charge Discounts Available at Baird: Breakpoints, Rights of Accumulation and/or letters of intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of
fund family assets held by accounts within the purchaser’s household at Baird. Eligible fund family assets not held at Baird may
be included in the rights of accumulation calculation only if the shareholder notifies his or her financial advisor about such assets.
◾
Letters
of Intent (LOI) allow for breakpoint discounts based on anticipated purchases of within a fund family through Baird, over a 13-month period
of time.
Edward
D. Jones & Co., L.P. (“Edward Jones”)
Policies
Regarding Transactions Through Edward Jones
The
following information has been provided by Edward Jones:
The
following information supersedes prior information with respect to transactions
and positions held in fund shares through an Edward Jones system. Shareholders purchasing Fund shares through the Edward
Jones commission
and fee-based platforms will be eligible for the following load waivers (front- end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund's prospectus or statement of additional
information (“SAI”). 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 (including holdings of 529 Plans where Invesco serves as primary distributor), 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.
◾
Front-end
sales load waivers on Class A shares available at Edward Jones
◾
Associates
of Edward Jones and its affiliates and their family members who are 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: 1) the proceeds are
from the sale of shares within 60 days of the purchase, and 2) the sale and purchase are made in the same share class and the same account
or the purchase is made in an individual retirement account with proceeds from liquidations in a non-retirement account.
◾
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.
◾
CDSC
Waivers on Classes A and C shares available at Edward Jones
◾
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
sold 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 the qualified age based on applicable IRS regulations.
◾
Shares
sold 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 Minimum Balances, as described below.
◾
Front-end
load discounts available at Edward Jones: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoint
pricing, otherwise known as volume pricing, at dollar thresholds as described in the prospectus.
◾
Rights
of Accumulation (“ROA”) which entitles the shareholder to the applicable sales charge on a purchase of Class A shares will
be determined by taking into account all share classes (except certain money market funds and any assets held in group retirement plans)
of Invesco Funds (including holdings of 529 Plans where Invesco serves as primary distributor) 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).
◾
Letters
of Intent (“LOI”) allow shareholders to receive 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.
Other
Important Information Regarding Transactions Through Edward
Jones
Minimum
Purchase Amounts
•
Initial
purchase minimum: $250
•
Subsequent
purchase minimum: none
A-8 The
Invesco Funds
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.
Stifel,
Nicolaus & Company (“Stifel”)
Shareholders
purchasing Fund shares through a Stifel
platform or account will be eligible only for the following front-end sales charge waivers and discounts, which may differ from those
disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at Stifel: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this 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 Stifel. Eligible
fund family assets not held at Stifel may be included in the ROA calculation only if the shareholder notifies his or her financial advisor
about such assets; and
◾
Letters
of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Stifel, over a 13-month
period of time (if applicable).
◾
Shares
converted from Class C (i.e. level-load) shares of the same fund pursuant to Stifel policies relating to sales load discounts and waivers.
PFS
Investments Inc. (“PFSI”)
Policies
Regarding Transactions Through PFSI
The
following information supersedes all prior information with respect to transactions and positions held in fund shares purchased through
PFSI and held on the mutual fund platform of its affiliate, Primerica Shareholder Services (“PSS”). Clients of PFSI (also
referred to as “shareholders”) purchasing fund shares on the PSS platform are eligible only for the following share classes,
sales charge discounts (also referred to as “breakpoints”) and waivers, which can differ from share classes, discounts and
waivers described elsewhere in this prospectus or the related statement of additional information (“SAI”) or through another
broker-dealer. In all instances, it is the shareholder’s responsibility to inform PFSI at the time of a purchase of all holdings
of Invesco Funds on the PSS platform, or other facts qualifying the purchaser for discounts or waivers. PFSI may request reasonable documentation
of such facts, and condition the granting of any discount or waiver on the timely receipt of such documents. Shareholders should contact
PSS if they have questions regarding their eligibility for these discounts and waivers.
Share
Classes
◾
Class
A shares: in non-retirement accounts, individual retirement accounts (IRA), SEP IRAs, SIMPLE IRAs, Keogh Plans, and all other account
types unless expressly provided for below.
◾
Class
C shares: only in accounts with existing Class C share holdings.
Breakpoints
◾
Breakpoint
pricing at dollar thresholds as described in the prospectus of the fund you are purchasing.
Rights
of Accumulation (“ROA”)
◾
The
applicable sales charge on a purchase of Class A shares is determined by taking into account all share classes (except any assets held
in group retirement plans) of Invesco Funds held by the shareholder on the PSS Platform. The inclusion of eligible fund family assets
in the ROA calculation is dependent on the shareholder notifying PFSI of such assets at the time of calculation. Shares of money market
funds are
included
only if such shares were acquired in exchange for shares of another Invesco Fund purchased with a sales charge. No shares of Invesco Funds
held by the shareholder away from the PSS platform will be granted ROA with shares of any Invesco Fund purchased on the PSS platform.
◾
Any
SEP IRA plan, any SIMPLE IRA plan or any Payroll Deduction plan (“PDP”) on the PSS platform will be defaulted to plan-level
grouping for purposes of ROA, which allows each participating employee ROA with all other eligible shares held in plan accounts on the
PSS platform. At any time, a participating employee may elect to exercise a one-time option to change grouping for purposes of ROA to
shareholder- level grouping, which allows the plan account of the electing employee ROA with her other eligible holdings on the PSS platform,
but not with all other eligible participant holdings in the plan. Eligible shares held in plan accounts electing shareholder-level grouping
will not be available for purposes of ROA to plan accounts electing plan-level grouping.
◾
ROA
is determined by calculating the higher of cost minus redemptions or current market value (current shares x NAV).
Letter
of Intent (“LOI”)
◾
By
executing a LOI, shareholders can receive the sales charge and breakpoint discounts for purchases shareholders intend to make over a 13-month
period through PFSI, from the date PSS receives the LOI. The purchase price of the LOI is determined by calculating the higher of cost
or market value of qualifying holdings at LOI initiation in combination with the dollar amount the shareholder intends to invest over
a 13-month period to arrive at total investment for purposes of determining any breakpoint discount and the applicable front-end sales
charge. Each purchase the shareholder makes during that 13-month period will receive the sales charge and breakpoint discount that applies
to the projected total investment.
◾
Only
holdings of Invesco Funds on the PSS platform are eligible for inclusion in the LOI calculation and the shareholder must notify PFSI of
all eligible assets at the time of calculation.
◾
Purchases
made before the LOI is received by PSS are not adjusted under the LOI, and the LOI will not reduce any sales charge previously paid. Sales
charges will be automatically adjusted if the total purchases required by the LOI are not met.
◾
If
an employer maintaining a SEP IRA plan, SIMPLE IRA plan or non-IRA PDP on the PSS platform has elected to establish or change ROA for
the accounts associated with the plan to a plan-level grouping, LOIs will also be at the plan-level and may only be established by the
employer. LOIs are not available to PDP IRA plans on the PSS platform with plan-level grouping for purposes of ROA, but are available
to any participating employee that elects shareholder-level grouping for purposes of ROA.
Sales
Charge Waivers
Sales
charges are waived for the following shareholders and in the following
situations:
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment.
◾
Shares
purchased with the proceeds of redeemed shares of the same fund family so long as the following conditions are met: 1) the proceeds are
from the sale of shares within 90 days of the purchase, 2) the sale and purchase are made in the same share class and the same account
or the purchase is made in an individual retirement account with proceeds from liquidations in a non-retirement account, and 3) the redeemed
shares were subject to a front-end or deferred sales load, Automated transactions (i.e. systematic purchases and withdrawals), full or
partial transfers or rollovers of retirement accounts, and purchases made after shares are automatically sold to pay account maintenance
fees are not eligible for this sales charge waiver.
◾
Shares
exchanged into Class A shares from another share class so long as the exchange is into the same fund and was initiated at the discretion
of PFSI. PFSI is responsible for any remaining CDSC due to the fund company, if applicable. Any future purchases are subject to the applicable
sales charge as disclosed in the prospectus.
Policies
Regarding Fund Purchases Through PFSI That Are Not Held
on the PSS Platform
A-9 The
Invesco Funds
◾
Class
R shares
are available through PFSI only in 401(k) plans covering a business owner with no employees, commonly referred to as a one-participant
401(k) plan or solo 401(k).
UBS
Financial Services Inc. (“UBS”)
Pursuant
to an agreement with the Distributor, UBS may offer Class Y
shares
to its retail brokerage clients whose shares are held in omnibus
accounts at UBS, or its designee. For these clients, UBS may charge commissions or transaction fees with respect to brokerage transactions
in Class Y shares. The
minimum investment for Class Y shares is waived for transactions through such brokerage platforms at UBS. Please contact your UBS representative
for more information about these fees and other eligibility requirements.
Qualifying
for Reduced Sales Charges and Sales Charge Exceptions
The
following types of accounts qualify for reduced sales charges or sales charge exceptions under ROAs and LOIs:
1.
an
individual account owner;
2.
immediate
family of the individual account owner (which includes the individual’s spouse or domestic partner; the individual’s children,
step-children or grandchildren; the spouse or domestic partner of the individual’s children, step-children or grandchildren; the
individual’s parents and step-parents; the parents or step-parents of the individual’s spouse or domestic partner; the individual’s
grandparents; and the individual’s siblings);
3.
a
Retirement and Benefit Plan so long as the plan is established exclusively for the benefit of an individual account owner; and
4.
a
Coverdell Education Savings Account (Coverdell ESA), maintained pursuant to Section 530 of the Code (in either case, the account
must be established by an individual account owner or have an individual account owner named as the beneficiary thereof).
Alternatively,
an Employer Sponsored Retirement and Benefit Plan (but not including
plans utilizing the Invesco 403(b)(7) Custodial Account program, or the individual custodial accounts thereunder) or Employer Sponsored
IRA may be eligible to purchase shares pursuant to a ROA at the plan level, and receive a reduced applicable initial sales charge for
a new purchase based on the total value of the current purchase and the value of other shares owned by the plan’s participants if:
a)
the
employer or plan sponsor submits all contributions for all participating employees in a single contribution transmittal (the Invesco Funds
will not accept separate contributions submitted with respect to individual participants);
b)
each
transmittal is accompanied by checks or wire transfers; and
c)
if
the Invesco Funds are expected to carry separate accounts in the names of each of the plan participants, (i) the employer or plan
sponsor notifies Invesco Distributors or its designee in writing that the separate accounts of all plan participants should be linked,
and (ii) all new participant accounts are established by submitting an appropriate Account Application on behalf of each new participant
with the contribution transmittal.
Participant
accounts in a retirement plan that are eligible to purchase shares
pursuant to a ROA at the plan level may not also be considered eligible to do so for the benefit of an individual account owner.
In
all instances, it is the purchaser’s responsibility to notify Invesco Distributors
or its designee of any relationship or other facts qualifying the purchaser as eligible for reduced sales charges and/or sales charge
exceptions and to provide all necessary documentation of such facts in order to qualify for reduced sales charges or sales charge exceptions.
For additional information on linking accounts to qualify for ROA or LOI, please see the Funds’ SAI.
Purchases
of Class A shares of Invesco Conservative Income Fund, Invesco
Government Money Market Fund and Invesco Short Term Municipal Fund, Class AX shares or Invesco Cash Reserve Shares of Invesco Government
Money Market Fund and Invesco U.S. Government Money Portfolio, as applicable, or Investor Class shares of any Fund will not be
taken
into account in determining whether a purchase qualifies for a reduction in initial sales charges pursuant to ROAs or LOIs.
Rights
of Accumulation
Purchasers
that qualify for ROA may combine new purchases of Class A shares of a Fund with shares of the Fund or other open-end Invesco Funds
currently owned (Class A, C, IB, IC, P, R, S or Y) for the purpose of qualifying for the lower initial sales charge rates that apply
to larger purchases. The applicable initial sales charge for the new purchase will be based on the total of your current purchase and
the value of other shares owned based on their current public offering price. The Funds’ transfer agent may automatically link certain
accounts registered in the same name with the same taxpayer identification number for the purpose of qualifying you for lower initial
sales charge rates.
Letters
of Intent
Under
a LOI, you commit to purchase a specified dollar amount of Class A shares of one or more Funds during a 13-month period. The amount
you agree to purchase determines the initial sales charge you pay. If the full amount committed to in the LOI is not invested by the end
of the 13-month period, your account will generally be assessed the higher initial sales charge that would normally be applicable to the
total amount actually invested. Shares equal in value to 5% of the intended purchase amount will be held in escrow for this purpose.
Reinstatement
Following Redemption
If
you redeem any class of shares of a Fund, you may reinvest all or a portion of the proceeds from the redemption (and may include that
amount necessary to acquire a fractional Share to round off his or her purchase to the next full Share) in the same share class of any
Fund within 180 days of the redemption without paying an initial sales charge. Class P, S, and Y redemptions may be reinvested into Class
A shares without an initial sales charge.
This
reinstatement privilege does not apply to a purchase made through a
regularly scheduled automatic investment plan, such as a purchase by a regularly scheduled payroll deduction or transfer from a bank account.
This
reinstatement privilege shall be suspended for the period of time in which
a purchase block is in place on a shareholder’s account. Please see “Purchase Blocking Policy” discussed below.
In
order to take advantage of this reinstatement privilege, you must inform
your financial adviser or the Funds’ transfer agent that you wish to do so at the time of your reinvestment.
Contingent
Deferred Sales Charges (CDSCs)
CDSCs
on Class A Shares and Invesco Cash Reserve Shares
Any
shares of a Large Purchase of Class A shares redeemed prior to 18 months after the date of purchase will be subject to a CDSC of 1% with
the exception of Class A shares of Invesco Conservative Income Fund and Invesco Short Term Municipal Fund which do not have CDSCs on redemptions.
If
Invesco Distributors pays a concession to a financial intermediary in connection
with a Large Purchase of Class A shares by an Employer Sponsored Retirement and Benefit Plan or SIMPLE IRA Plan, the Class A shares will
be subject to a 1% CDSC if all of the Employer Sponsored Retirement and Benefit Plan’s or SIMPLE IRA’s shares are redeemed
within one year from the date of initial purchase.
If
you acquire Invesco Cash Reserve Shares or Class A shares of Invesco
Government Money Market Fund or Invesco Cash Reserve Shares of Invesco U.S. Government Money Portfolio through an exchange involving Class
A shares that were subject to a CDSC, the shares acquired as a result of the exchange will continue to be subject to that same CDSC.
CDSCs
on Class C Shares
Class
C shares are subject to a CDSC; however, the CDSC shall not apply to the purchases of Class C shares where the selling broker-dealer was
not paid a commission at the time of purchase. If you redeem your shares during the first year since your purchase has been made you will
be
A-10 The
Invesco Funds
assessed
a CDSC as disclosed in the “Fees and Expenses - Shareholder Fees” table in the prospectus, unless you qualify for one of the
CDSC exceptions outlined below.
CDSCs
on Class C Shares – Employer Sponsored Retirement and Benefit Plans and Employer Sponsored IRAs
Class
C shares are subject to a 1.00% CDSC at the time of redemption if all of the Employer Sponsored Retirement and Benefit Plan’s or
Employer Sponsored IRA’s shares are redeemed within one year from the date of initial purchase.
CDSCs
on Class C Shares of Invesco Short Term Bond Fund
Effective
November 1, 2021, Class C shares of Invesco Short Term Bond Fund are subject to a CDSC. If you acquire Class C shares of any other Fund
as a result of an exchange involving Class C shares of Invesco Short Term Bond Fund that were not subject to a CDSC prior to November
1, 2021, then the shares acquired as a result of the exchange will not be subject to a CDSC.
Computing
a CDSC
The
CDSC on redemptions of shares is computed based on the lower of their original purchase price or current net asset value, net of reinvested
dividends and capital gains distributions. In determining whether to charge a CDSC, shares are accounted for on a first-in, first-out
basis, which means that you will redeem shares on which there is no CDSC first, and then shares in the order of their purchase.
CDSC
Exceptions
Investors
who own shares that are otherwise subject to a CDSC will not pay a CDSC in the following circumstances:
◾
If
you participate in the Systematic Redemption Plan and withdraw up to 12% of the value of your shares that are subject to a CDSC in any
twelve-month period.
◾
If
you redeem shares to pay account fees.
◾
If
you are the executor, administrator or beneficiary of an estate or are otherwise entitled to assets remaining in an account following
the death or post-purchase disability of a shareholder or beneficial owner and you choose to redeem those shares.
There
are other circumstances under which you may be able to redeem shares
without paying CDSCs. For additional information about such circumstances, please see the Appendix entitled “Purchase, Redemption
and Pricing of Shares” in each Fund’s SAI.
Shares
acquired through the reinvestment of dividends and distributions are
not subject to CDSCs.
The
following share classes are sold without a CDSC:
◾
Class
A2 shares of Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund
◾
Class
A shares of Invesco Government Money Market Fund
◾
Invesco
Cash Reserve Shares of Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio
◾
Investor
Class shares of any Fund
◾
Class
P shares of Invesco Summit Fund
◾
Class
R5 and R6 shares of any Fund
◾
Class
R shares of any Fund
◾
Class
S shares of Invesco Charter Fund, Invesco Select Risk: Moderately Conservative Investor Fund, Invesco Select Risk: Growth Investor Fund,
Invesco Select Risk: Moderate Investor Fund and Invesco Summit Fund
◾
Class
Y shares of any Fund
Purchasing
Shares and Shareholder Eligibility
Invesco
Premier U.S. Government Money Portfolio
For
Invesco Premier U.S. Government Money Portfolio, you may purchase shares using one of the options below. Unless the Fund closes early
on a business day, the Fund’s transfer agent will generally accept any purchase order placed until 5:00 p.m. Eastern Time on a business
day and may accept a purchase order placed until 5:30 p.m. Eastern Time on a business
day.
If you wish to place an order between 5:00 p.m. and 5:30 p.m. Eastern Time on a business day, you must place such order by telephone;
however, the Fund’s transfer agent reserves the right to reject or limit the amount of orders placed during this time. If the Fund
closes early on a business day, the Fund’s transfer agent must receive your purchase order prior to such closing time. Purchase
orders will not be processed unless the account application and purchase payment are received in good order. In accordance with the USA
PATRIOT Act, if you fail to provide all the required information requested in the current account application, your purchase order will
not be processed. Additionally, federal law requires that the Fund verifies and records your identifying information.
Invesco
Premier Portfolio
Only
accounts beneficially owned by natural persons will be permitted to retain their shares. The Fund has implemented policies and procedures
reasonably designed to limit all beneficial owners of the Fund to natural persons, and investments in the Fund are limited to accounts
beneficially owned by natural persons. Natural persons may invest in the Fund through certain tax-advantaged savings accounts, trusts
and other retirement and investment accounts, which may include, among others: participant-directed defined contribution plans; individual
retirement accounts; simplified employee pension arrangements; simple retirement accounts; custodial accounts; deferred compensation plans
for government or tax-exempt organization employees; Archer medical savings accounts; college savings plans; health savings account plans;
ordinary trusts and estates of natural persons; or certain other retirement and investment accounts with ultimate investment authority
held by the natural person beneficial owner, notwithstanding having an institutional decision maker making day-to-day decisions (e.g.,
a plan sponsor in certain retirement arrangements or an investment adviser managing discretionary investment accounts).
Further,
financial intermediaries may only submit purchase orders if they have
implemented policies and procedures reasonably designed to limit all investors on behalf of whom they submit orders to accounts beneficially
owned by natural persons. Financial intermediaries may be required to provide a written statement or other representation that they have
in place, and operate in compliance with, such policies and procedures prior to submitting purchase orders. Such policies and procedures
may include provisions for the financial intermediary to promptly report to the Fund or the transfer agent the identification of any shareholder
of the Fund that does not qualify as a natural person of whom they are aware and promptly take steps to redeem any such shareholder’s
shares of the Fund upon request by the Fund or the transfer agent, in such manner as it may reasonably request. The Fund may involuntarily
redeem any such shareholder who does not voluntarily redeem their shares.
Natural
persons may purchase shares using one of the options below. For
all classes of the Fund, other than Investor Class shares, unless the Fund closes early on a business day, the Fund’s transfer agent
will generally accept any purchase order placed until 5:00 p.m. Eastern Time on a business day and may accept a purchase order placed
until 5:30 p.m. Eastern Time on a business day. If you wish to place an order between 5:00 p.m. and 5:30 p.m. Eastern Time on a business
day, you must place such order by telephone; or send your request by a pre-arranged Liquidity Link data transmission however, the Fund’s
transfer agent reserves the right to reject or limit the amount of orders placed during this time. For Investor Class shares of the Fund,
unless the Fund closes early on a business day, the Fund’s transfer agent will generally accept any purchase order placed until
4:00 p.m. Eastern Time on a business day and may accept a purchase order placed until 4:30 p.m. Eastern Time on a business day. If you
wish to place an order between 4:00 p.m. and 4:30 p.m. Eastern Time on a business day, you must place such order by telephone; however,
the Fund’s transfer agent reserves the right to reject or limit the amount of orders placed during this time. If the Fund closes
early on a business day, the Fund’s transfer agent must receive your purchase order prior to such closing time. Purchase orders
will not be processed unless the account application and purchase payment are received in good order. In accordance with the USA PATRIOT
Act, if you fail to provide all the required information requested in the current account application, your purchase order will not be
A-11 The
Invesco Funds
processed.
Additionally, federal law requires that the Fund verify and record your identifying information.
Minimum Investments
There
are no minimum investments for Class P or S shares for fund accounts. The minimum investments for Class A, C, R, Y, Investor Class and
Invesco Cash Reserve shares for fund accounts are as follows:
|
Type
of Account |
Initial
Investment
Per
Fund |
Additional
Investments
Per
Fund |
|
Asset
or fee-based accounts managed by your financial
adviser
|
None
|
None
|
|
| ||
|
Employer
Sponsored Retirement and Benefit Plans and
Employer
Sponsored IRAs |
None
|
None
|
|
| ||
|
IRAs
and Coverdell ESAs if the new investor is
purchasing
shares through a systematic purchase plan |
$25
|
$25
|
|
| ||
|
All
other accounts if the investor is purchasing shares
through
a systematic purchase plan |
50
|
50
|
|
| ||
|
IRAs
and Coverdell ESAs |
250
|
25
|
|
| ||
|
All
other accounts |
1,000
|
50
|
|
| ||
Invesco
Distributors or its designee has the discretion to accept orders on behalf of clients for lesser amounts.
The
minimum investments for Class R5 and R6 shares are as follows:
There
is no minimum initial investment for an Employer Sponsored Retirement
and Benefit Plan investing through a retirement platform that administers at least $2.5 billion in retirement plan assets. All other Employer
Sponsored Retirement and Benefit Plans must meet a minimum initial investment of at least $1 million in each Fund in which it invests.
The
minimum initial investment in each share class for all other institutional
investors is $1 million, unless such investment is made by (i) an investment company, as defined under the 1940 Act, as amended, that
is part of a family of investment companies which own in the aggregate at least $100 million in securities, or (ii) an account established
with a 529 college savings plan managed by Invesco, in which case there is no minimum initial investment.
There
are no minimum investment amounts for Class R6 shares held through
retail omnibus accounts where the intermediary:
◾
generally
charges an asset-based fee or commission in addition to those described in this prospectus; and
◾
maintains
Class R6 shares and makes them available to retail investors.
A
financial intermediary may impose different investment minimums than
those set forth above. The Fund is not responsible for any investment minimums imposed by financial intermediaries or for notifying shareholders
of any changes to them. See “Waivers Available Through Certain Financial Intermediaries and Other Financial Intermediary-Specific
Arrangements” for more information on certain intermediary-specific investment minimums. Please consult with your financial intermediary
if you have any questions regarding their policies.
How
to Purchase Shares*
|
|
Opening
An Account |
Adding
To An Account |
|
Through
a
Financial
Adviser
or
Financial
Intermediary*
|
Contact
your financial adviser or
financial
intermediary. |
Contact
your financial adviser or
financial
intermediary. |
|
By
Mail |
Mail
completed account application
and
check to the Funds’ transfer
agent,
Invesco
Investment Services, Inc.
P.O.
Box 219078,
Kansas
City, MO 64121-9078.
The
Funds’ transfer agent does NOT
accept
the following types of
payments:
Credit Card Checks,
Temporary/Starter
Checks, Third
Party
Checks, and Cash. |
Mail
your check and the remittance
slip
from your confirmation
statement
to the Funds’ transfer
agent.
The Funds’ transfer agent
does
NOT accept the following
types
of payments: Credit Card
Checks,
Temporary/Starter Checks,
Third
Party Checks, and Cash. |
|
|
Opening
An Account |
Adding
To An Account |
|
By
Wire* |
Mail
completed account application
to
the Funds’ transfer agent. Call
the
Funds’ transfer agent at (800)
959-4246
to receive a reference
number.
Then, use the wire
instructions
provided below. |
Call
the Funds’ transfer agent to
receive
a reference number. Then,
use
the wire instructions provided
below.
|
|
Wire
Instructions |
Beneficiary
Bank ABA/Routing #: 011001234
Beneficiary
Account Number: 729639
Beneficiary
Account Name: Invesco Investment Services, Inc.
RFB:
Fund Name, Reference #
OBI:
Your Name, Account # | |
|
By
Telephone* |
Open
your account using one of the
methods
described above. |
The
Bank Account Information
option
on your completed account
application
or complete a
Systematic
Options and Bank
Information
Form. Mail the
application
or form to the Funds’
transfer
agent. Once the Funds’
transfer
agent has received the
form,
call the Funds’ transfer agent
at
the number below to place your
purchase
order. For Class R5 and
R6
shares, call the Funds’ transfer
agent
at (800) 959-4246 and wire
payment
for your purchase order in
accordance
with the wire
instructions
listed above. |
|
Automated
Investor
Line |
Open
your account using one of the
methods
described above. |
Call
the Funds’ transfer agent’s
24-hour
Automated Investor Line at
1-800-246-5463.
You may place
your
order after you have provided
the
bank instructions that will be
requested.
|
|
By
Internet |
Open
your account using one of the
methods
described above. |
Access
your account at
www.invesco.com/us.
The proper
bank
instructions must have been
provided
on your account. You may
not
purchase shares in Retirement
and
Benefit Plans on the internet. |
|
*Class
R5 and R6 shares may only be purchased through a financial intermediary or by
telephone
at (800) 959-4246. | ||
Non-retirement
retail investors, including high net worth investors investing
directly or through a financial intermediary, are not eligible for Class R5 shares. IRAs and Employer Sponsored IRAs are also not eligible
for Class R5 shares. If you hold your shares through a financial intermediary, the terms by which you purchase, redeem and exchange shares
may differ than the terms in this prospectus depending upon the policies and procedures of your financial intermediary.
Purchase
orders will not be processed unless the account application and
purchase payment are received in good order. In accordance with the USA PATRIOT Act, if you fail to provide all the required information
requested in the current account application, your purchase order will not be processed. Additionally, federal law requires that the Funds
verify and record your identifying information.
Systematic
Purchase Plan (Available for all classes except Class R5 and R6 shares)
You
can arrange for periodic investments in any of the Funds by authorizing the Funds’ transfer agent to withdraw the amount of your
investment from your bank account on a day or dates you specify and in an amount of at least $25 per Fund for IRAs and Coverdell ESAs,
and at least $50 per Fund for all other types of accounts (a Systematic Purchase Plan). You may stop the Systematic Purchase Plan at any
time by giving the Funds’ transfer agent notice ten days prior to your next scheduled withdrawal. Certain financial advisers and
other financial intermediaries may also offer systematic purchase plans.
A-12 The
Invesco Funds
Dollar
Cost Averaging (Available for all classes except Class R5 and R6 shares)
Dollar
Cost Averaging allows you to make automatic periodic exchanges, if permitted, from one Fund to another Fund or multiple other Funds. The
account from which exchanges are to be made must have a minimum balance of $5,000 before you can use this option. Exchanges will occur
on (or about) the day of the month you specify, in the amount you specify. Dollar Cost Averaging cannot be set up for the 29th through
the 31st of the month. The minimum amount you can exchange to another Fund is $50. Your financial intermediary may offer alternative dollar
cost averaging programs with different requirements.
Automatic
Dividend and Distribution Investment
Your
dividends and distributions may be paid in cash or reinvested in the same Fund or another Fund without paying an initial sales charge.
Unless
you specify otherwise, your dividends and distributions will automatically
be reinvested in the same Fund. You must comply with the following requirements to be eligible to invest your dividends and distributions
in shares of another Fund:
◾
Your
account balance in the Fund paying the dividend or distribution must be at least $5,000; and
◾
Your
account balance in the Fund receiving the dividend or distribution must be at least $500.
If
you elect to receive your distributions by check, and the distribution amount
is $25 or less, then the amount will be automatically reinvested in the same Fund and no check will be issued. If you have elected to
receive distributions by check, and the postal service is unable to deliver checks to your address of record, then your distribution election
may be converted to having all subsequent distributions reinvested in the same Fund and no checks will be issued. With respect to certain
account types, if your check remains uncashed for six months, the Fund generally reserves the right to reinvest your distribution check
in your account at the then applicable NAV and to reinvest all subsequent distributions in shares of the Fund. Such checks will be reinvested
into the same share class of the Fund. You should contact the Funds’ transfer agent to change your distribution option, and your
request to do so must be received by the Funds’ transfer agent before the record date for a distribution in order to be effective
for that distribution. No interest will accrue on amounts represented by uncashed distribution checks.
Redeeming
Shares*
The
Funds’ transfer agent or authorized intermediary, if applicable, must receive your call before the Funds’ net asset value
determination (as defined by the applicable Fund) in order to effect the redemption at that day’s net asset value.
Your
broker or financial intermediary may charge service fees for handling
redemption transactions.
|
How
to Redeem Shares | |
|
Through
a Financial
Adviser
or Financial
Intermediary*
|
Contact
your financial adviser or financial intermediary. The Funds’
transfer
agent must receive your financial adviser’s or financial
intermediary’s
call before the Funds’ net asset value determination
(as
defined by the applicable Fund) in order to effect the redemption
at
that day’s net asset value. Please contact your financial adviser or
financial
intermediary with respect to reporting of cost basis and
available
elections for your account. |
|
By
Mail |
Send
a written request to the Funds’ transfer agent which includes: |
|
|
▪ Original
signatures of all registered owners/trustees;
▪ The
dollar value or number of shares that you wish to redeem;
▪ The
name of the Fund(s) and your account number;
▪ The
cost basis method or specific shares you wish to redeem for
tax
reporting purposes, if different than the method already on
record;
and |
|
|
▪ Signature
guarantees, if necessary (see below).
The
Funds’ transfer agent may require that you provide additional
documentation,
or information, such as corporate resolutions or
powers
of attorney, if applicable. If you are redeeming from a
Retirement
and Benefit Plan, you must complete the appropriate
distribution
form. |
|
How
to Redeem Shares | |
|
By
Telephone* |
Call
the Funds’ transfer agent at 1-800-959-4246. You will be
allowed
to redeem by telephone if:
▪ Your
redemption proceeds are to be mailed to your address on
record
(and there has been no change in your address of record
within
the last 15 days) or transferred electronically to a
pre-authorized
checking account;
▪ You
can provide proper identification information;
▪ Your
redemption proceeds do not exceed $250,000 per Fund; and
▪ You
have not previously declined the telephone redemption
privilege.
|
|
|
You
may, in limited circumstances, initiate a redemption from an
Invesco
IRA by telephone. Redemptions from Employer Sponsored
Retirement
and Benefit Plans and Employer Sponsored IRAs may be
initiated
only in writing and require the completion of the appropriate
distribution
form, as well as employer authorization. You must call the
Funds’
transfer agent before the Funds’ net asset value
determination
(as defined by the applicable Fund) in order to effect
the
redemption at that day’s net asset value. |
|
Automated
Investor Line |
Call
the Funds’ transfer agent’s 24-hour Automated Investor Line at
1-800-246-5463.
You may place your redemption order after you
have
provided the bank instructions that will be requested. |
|
By
Internet |
Place
your redemption request at www.invesco.com/us. You will be
allowed
to redeem by Internet if:
▪ You
can provide proper identification information;
▪ Your
redemption proceeds do not exceed $250,000 per Fund; and
▪ You
have already provided proper bank information.
Redemptions
from Employer Sponsored Retirement and Benefit
Plans
and Employer Sponsored IRAs may be initiated only in writing
and
require the completion of the appropriate distribution form, as
well
as employer authorization. |
|
*Class
R5 and R6 shares may only be redeemed through a financial intermediary or by
telephone
at (800) 959-4246. | |
Timing
and Method of Payment
The
Funds’ transfer agent typically expects to pay redemption proceeds to redeeming shareholders within one business day after a redemption
request is received in good order, regardless of the method a Fund uses to make such payment. However, a Fund may take up to seven days
to process a redemption request. “Good order” means that all necessary information and documentation related to the redemption
request have been provided to the Funds’ transfer agent or authorized intermediary, if applicable. If your request is not in good
order, the Funds’ transfer agent may require additional documentation in order to redeem your shares. If you redeem shares recently
purchased by check or ACH, you may be required to wait up to ten calendar days before your redemption proceeds are sent. This delay is
necessary to ensure that the purchase has cleared. You can avoid the check hold period if you pay for your shares with a certified check,
a cashier’s check or a federal wire. Payment may be postponed under unusual circumstances, as allowed by the SEC, such as when the
NYSE restricts or suspends trading.
In
addition, a temporary hold may be placed on the disbursement of redemption
proceeds from an account if there is a reasonable belief that financial exploitation of a Specified Adult (as defined below) has occurred,
is occurring, has been attempted, or will be attempted. Notice of such a delay will be provided in accordance with regulatory requirements.
This temporary hold will be for an initial period of no more than 15 business days while an internal review is performed. Should the internal
review support the belief that financial exploitation has occurred, is occurring, has been attempted or will be attempted, the temporary
hold may be extended for up to 10 additional business days. Both the initial and subsequent hold on the disbursement may be terminated
or extended by a state regulator or an agency or court of competent jurisdiction. For purposes of this paragraph, the term “Specified
Adult” refers to an individual who is (a) a natural person age 65 and older, or (b) a natural person age 18 and older who is reasonably
believed to have a mental or physical impairment that renders the individual unable to protect his or her own interests.
If
you redeem by telephone, the Funds’ transfer agent will transmit the amount
of redemption proceeds electronically to your pre-authorized bank account. Redemption checks are mailed to your address of record, via
first
A-13 The
Invesco Funds
class
U.S. mail, unless you make other arrangements with the Funds’ transfer agent.
The
Funds’ transfer agent uses reasonable procedures to confirm that instructions
communicated via telephone and the Internet are genuine, and the Funds and the Funds’ transfer agent are not liable for losses arising
from actions taken in accordance with instructions that are reasonably believed to be genuine.
A
Fund typically expects to use holdings of cash and cash equivalents and
sales of portfolio assets to meet redemption requests, both regularly and in stressed market conditions. The Funds also have the ability
to redeem in kind as further described below under “Redemptions in Kind.” Certain Funds have a line of credit,
as disclosed in such Funds’ principal investment strategy
and risk disclosures that may be used to meet redemptions in stressed market conditions.
Expedited
Redemptions (for Invesco Cash Reserve Shares of Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio only)
If
you place your redemption order by telephone, before 11:30 a.m. Eastern Time and request an expedited redemption, the Funds’ transfer
agent will transmit payment of redemption proceeds on that same day via federal wire to a bank of record on your account. If the Funds’
transfer agent receives your redemption order after 11:30 a.m. Eastern Time and before the close of the customary trading session of the
NYSE, it will transmit payment on the next business day.
Suspension
of Redemptions
The
right of redemption may be suspended or the date of payment postponed when (a) trading on the NYSE is restricted, as determined by applicable
rules and regulations of the SEC, (b) the NYSE is closed for other than customary weekend and holiday closings, (c) the SEC has by order
permitted such suspension, or (d) an emergency as determined by the SEC exists making disposition of portfolio securities or the valuation
of the net assets of the Fund not reasonably practicable. With respect to Invesco Government Money Market Fund, Invesco U.S. Government
Money Portfolio, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio, in the event that the Fund, at the end
of a business day, has invested less than 10% of its total assets in weekly liquid assets or, with respect to the retail and government
money market funds, the Fund’s price per share as computed for the purpose of distribution, redemption and repurchase, rounded to
the nearest 1%, has deviated from the stable price established by the Fund’s Board of Trustees (“Board”) or the Board,
including a majority of trustees who are not interested persons as defined in the 1940 Act, determines that such a deviation is likely
to occur, and the Board, including a majority of trustees who are not interested persons of the Fund, irrevocably has approved the liquidation
of the Fund, the Fund’s Board has the authority to suspend redemptions of Fund shares.
Liquidity
Fees and Redemption Gates
For
Invesco Premier Portfolio, if the Fund’s weekly liquid assets fall below 30% of its total assets, the Board, in its discretion,
may impose liquidity fees of up to 2% of the value of the shares redeemed and/or suspend redemptions (redemption gates). In addition,
if any such Fund’s weekly liquid assets falls below 10% of its total assets at the end of any business day, the Fund must impose
a 1% liquidity fee on shareholder redemptions unless the Board determines that not doing so is in the best interests of the Fund.
Liquidity
fees and redemption gates are most likely to be imposed, if at all,
during times of extraordinary market stress. In the event that a liquidity fee or redemption gate is imposed, the Board expects that for
the duration of its implementation and the day after which such gate or fee is terminated, the Fund would strike only one net asset value
per day, at the Fund’s last scheduled net asset value calculation time.
The
imposition and termination of a liquidity fee or redemption gate will be
reported by a Fund to the SEC on Form N-CR. Such information will also be available on the Fund’s website. In addition, a Fund will
communicate such action through a supplement to its registration statement and may further communicate such action through a press release
or by other means. If a liquidity fee is applied by the Board, it will be charged on all
redemption
orders submitted after the effective time of the imposition of the fee by the Board. Liquidity fees would reduce the amount you receive
upon redemption of your shares. In the event a Fund imposes a redemption gate, the Fund or any financial intermediary on its behalf will
not accept redemption requests until the Fund provides notice that the redemption gate has been terminated.
Redemption
requests submitted while a redemption gate is imposed will be cancelled
without further notice. If shareholders still wish to redeem their shares after a redemption gate has been lifted, they will need to submit
a new redemption request.
Liquidity
fees and redemption gates will generally be used to assist a Fund
to help preserve its market–based NAV per share. It is possible that a liquidity fee will be returned to shareholders in the form
of a distribution. The Board may, in its discretion, terminate a liquidity fee or redemption gate at any time if it believes such action
to be in the best interest of a Fund. Also, liquidity fees and redemption gates will automatically terminate at the beginning of the next
business day once a Fund’s weekly liquid assets reach at least 30% of its total assets. Redemption gates may only last up to 10
business days in any 90-day period. When a fee or a gate is in place, the Fund may elect not to permit the purchase of shares or to subject
the purchase of shares to certain conditions, which may include affirmation of the purchaser’s knowledge that a fee or a gate is
in effect. When a fee or a gate is in place, shareholders will not be permitted to exchange into or out of a Fund.
There
is some degree of uncertainty with respect to the tax treatment of liquidity
fees received by a Fund, and such tax treatment may be the subject to future IRS guidance. If a Fund receives liquidity fees, it will
consider the appropriate tax treatment of such fees to the Fund at such time.
Financial
intermediaries are required to promptly take the steps requested
by the Funds or their designees to impose or help to implement a liquidity fee or redemption gate as requested from time to time, including
the rejection of orders due to the imposition of a fee or gate or the prompt re-confirmation of orders following a notification regarding
the implementation of a fee or gate. If a liquidity fee is imposed, these steps are expected to include the submission of separate, rather
than combined, purchase and redemption orders from the time of the effectiveness of the liquidity fee or redemption gate and the submission
of such order information to the Fund or its designee prior to the next calculation of a Fund’s net asset value. Unless otherwise
agreed to between a Fund and financial intermediary, the Fund will withhold liquidity fees on behalf of financial intermediaries. With
regard to such orders, a redemption request that a Fund determines in its sole discretion has been received in good order by the Fund
or its designated agent prior to the imposition of a liquidity fee or redemption gate may be paid by the Fund despite the imposition of
a redemption gate or without the deduction of a liquidity fee. If a liquidity fee is imposed during the day, an intermediary who receives
both purchase and redemption orders from a single account holder is not required to net the purchase and redemption orders. However, the
intermediary is permitted to apply the liquidity fee to the net amount of redemptions (even if the purchase order was received prior to
the time the liquidity fee was imposed).
Where
a Financial Intermediary serves as a Fund’s agent for the purpose
of receiving orders, trades that are not transmitted to the Fund by the Financial Intermediary before the time required by the Fund or
the transfer agent may, in the Fund’s discretion, be processed on an as-of basis, and any cost or loss to the Fund or transfer agent
or their affiliates, from such transactions shall be borne exclusively by the Financial Intermediary.
Systematic
Withdrawals (Available for all classes except Class R5 and R6 shares)
You
may arrange for regular periodic withdrawals from your account in amounts equal to or greater than $50 per Fund. The Funds’ transfer
agent will redeem the appropriate number of shares from your account to provide redemption proceeds in the amount requested. You must
have a total account balance of at least $5,000 in order to establish a Systematic Redemption Plan, unless you are establishing a Required
Minimum
A-14 The
Invesco Funds
Distribution
for a Retirement and Benefit Plan. You can stop this plan at any time by giving ten days’ prior notice to the Funds’ transfer
agent.
Check
Writing
The
Funds’ transfer agent provides check writing privileges for accounts in the following Funds and share classes:
◾
Invesco
Government Money Market Fund, Invesco Cash Reserve Shares, Class AX shares, Class Y shares and Investor Class shares
◾
Invesco
U.S. Government Money Portfolio, Invesco Cash Reserve Shares and Class Y shares
◾
Invesco
Premier Portfolio, Investor Class shares
◾
Invesco
Premier U.S. Government Money Portfolio, Investor Class shares
You
may redeem shares of these Funds by writing checks in amounts of $250
or more if you have subscribed to the service by completing a Check Writing authorization form.
Check
writing privileges are not available for Retirement and Benefit Plans.
Checks are not eligible to be converted to ACH by the payee. You may not give authorization to a payee by phone to debit your account
by ACH for a debt owed to the payee.
If
you do not have a sufficient number of shares in your account to cover
the amount of the check and any applicable deferred sales charge, the check will be returned and no shares will be redeemed. Because it
is not possible to determine your account’s value in advance, you should not write a check for the entire value of your account
or try to close your account by writing a check.
A
check writing redemption request which is verifiably submitted to a Fund’s
agent before a liquidity fee or redemption gate is imposed will be considered a valid redemption and will be processed normally.
Signature
Guarantees
The
Funds’ transfer agent requires a signature guarantee in the following circumstances:
◾
When
your redemption proceeds exceed $250,000 per Fund.
◾
When
you request that redemption proceeds be paid to someone other than the registered owner of the account.
◾
When
you request that redemption proceeds be sent somewhere other than the address of record or bank of record on the account.
◾
When
you request that redemption proceeds be sent to a new address or an address that changed in the last 15 days.
The
Funds’ transfer agent will accept a guarantee of your signature by a number
of different types of financial institutions. Call the Funds’ transfer agent for additional information. Some institutions have
transaction amount maximums for these guarantees. Please check with the guarantor institution to determine whether the signature guarantee
offered will be sufficient to cover the value of your transaction request.
Redemptions
in Kind
Although
the Funds generally intend to pay redemption proceeds solely in cash, the Funds reserve the right to determine, in their sole discretion,
whether to satisfy redemption requests by making payment in securities or other property (known as a redemption in kind). Redemptions
in kind may result in transaction costs and/or market fluctuations associated with liquidating or holding the securities, respectively.
Purchases-in-Kind
You
may purchase shares of a Fund by transferring securities to a Fund in exchange for Fund shares (“in-kind purchases”). In-kind
purchases may be made only upon the Funds’ approval and determination that the securities are acceptable investments for the Fund
and are purchased consistent with the Fund’s procedures relating to in-kind purchases. The Funds reserve the right to amend or terminate
this practice at any time. You must call the Funds at (800) 959-4246 before sending any securities. Please see the SAI for additional
details.
Redemptions
by Large Shareholders
At
times, the Fund may experience adverse effects when certain large shareholders redeem large amounts of shares of the Fund. Large redemptions
may cause the Fund to sell portfolio securities at times when it would not otherwise do so. In addition, these transactions may also
accelerate
the realization of taxable income to shareholders (if applicable) if such sales of investments resulted in gains and may also increase
transaction costs and/or increase in the Fund’s expense ratio. When experiencing a redemption by a large shareholder, the Fund may
delay payment of the redemption request up to seven days to provide the investment manager with time to determine if the Fund can redeem
the request-in-kind or to consider other alternatives to lessen the harm to remaining shareholders. Under certain circumstances, however,
the Fund may be unable to delay a redemption request, which could result in the automatic processing of a large redemption that is detrimental
to the Fund and its remaining shareholders.
Redemptions
Initiated by the Funds
If
your account (Class A, C, P, S and Investor Class shares only) has been open at least one year, you have not made an additional purchase
in the account during the past six calendar months, and the value of your account falls below $500 for three consecutive months, the Funds
have the right to redeem the account after giving you 60 days’ prior written notice. You may avoid having your account redeemed
during the notice period by bringing the account value up to $500 or by initiating a Systematic Purchase Plan.
A
financial intermediary may have a different policy regarding redemptions
of accounts with small balances. The Fund is not responsible for any small account balance policies imposed by financial intermediaries
or for notifying shareholders of any changes to them. See “Waivers Available Through Certain Financial Intermediaries and Other
Financial Intermediary-Specific Arrangements” for more information on certain intermediary-specific small account balance policies.
Please consult with your financial intermediary if you have any questions regarding their policies.
If
a Fund determines that you have not provided a correct Social Security
or other tax identification number on your account application, or the Fund is not able to verify your identity as required by law, the
Fund may, at its discretion, redeem the account and distribute the proceeds to you.
In
order to separate retail investors (natural persons) and non-retail investors,
the Invesco Premier Portfolio reserve the right to redeem shares in any account that the Funds cannot confirm to their satisfaction are
beneficially owned by natural persons. The Funds will provide advance written notice of their intent to make any such involuntary redemptions.
The Funds reserve the right to redeem shares in any account that they cannot confirm to their satisfaction are beneficially owned by natural
persons, after providing advance notice.
Neither
a Fund nor its investment adviser will be responsible for any loss
in an investor’s account or tax liability resulting from an involuntary redemption.
Minimum
Account Balance (Available for all classes except Class R5 and R6 shares)
A
low balance fee of $12 per year may be deducted in the fourth quarter of each year from all accounts held in the Funds (each a Fund Account)
with a value less than the low balance amount (the Low Balance Amount) as determined from time to time by the Funds and the Adviser. The
Funds and the Adviser generally expect the Low Balance Amount to be $750, but such amount may be adjusted for any year depending on various
factors, including market conditions. The Low Balance Amount and the date on which it will be deducted from any Fund Account will be posted
on our website, www.invesco.com/us, on or about November 1 of each year. This fee will be payable to the Funds’ transfer agent by
redeeming from a Fund Account sufficient shares owned by a shareholder and will be used by the Funds’ transfer agent to offset amounts
that would otherwise be payable by the Funds to the Funds’ transfer agent under the Funds’ transfer agency agreement with
the Funds’ transfer agent. The low balance fee does not apply to participant accounts in advisory programs or to Employer Sponsored
Retirement and Benefit Plans.
Exchanging
Shares
You
may, under certain circumstances, exchange shares in one Fund for those of another Fund. An exchange is the purchase of shares in one
Fund which is paid for with the proceeds from a redemption of shares of another
A-15 The
Invesco Funds
Fund
effectuated on the same day. Any gain on the transaction may be subject to federal income tax. Accordingly, the procedures and processes
applicable to redemptions of Fund shares, as discussed under the heading “Redeeming Shares” above, will apply. Before requesting
an exchange, review the prospectus of the Fund you wish to acquire.
All
exchanges are subject to the limitations set forth in the prospectuses of
the Funds. If you wish to exchange shares of one Fund for those of another Fund, you must consult the prospectus of the Fund whose shares
you wish to acquire to determine whether the Fund is offering shares to new investors and whether you are eligible to acquire shares of
that Fund.
Permitted
Exchanges
Except
as otherwise provided herein or in the SAI, you generally may exchange your shares for shares of the same class of another Fund. The following
table shows generally permitted exchanges from one Fund to another Fund (exceptions listed below under “Exchanges Not Permitted”):
|
Exchange
From |
Exchange
To |
|
Invesco
Cash Reserve Shares |
Class
A, C, R, Investor Class |
|
| |
|
Class
A |
Class
A, Investor Class, Invesco Cash Reserve Shares* |
|
| |
|
Class
A2 |
Class
A, Investor Class, Invesco Cash Reserve Shares |
|
| |
|
Class
AX |
Class
A, AX, Investor Class, Invesco Cash Reserve Shares |
|
| |
|
Investor
Class |
Class
A, Investor Class |
|
| |
|
Class
P |
Class
A, Invesco Cash Reserve Shares |
|
| |
|
Class
S |
Class
A, S, Invesco Cash Reserve Shares |
|
| |
|
Class
C |
Class
C* |
|
| |
|
Class
CX |
Class
C, CX |
|
| |
|
Class
R |
Class
R* |
|
| |
|
Class
R5 |
Class
R5 |
|
| |
|
Class
R6 |
Class
R6 |
|
| |
|
Class
Y |
Class
Y* |
|
|
|
|
* You
may exchange Class Y shares of Invesco U.S. Government Money Portfolio for Class A, C
or
R shares of any other Fund as long as you are otherwise eligible for such share class. If you
exchange
Class Y shares of Invesco U.S. Government Money Portfolio for Class A, C or R shares
of
any other Fund, you may exchange those Class A, C or R shares back into Class Y shares of
Invesco
U.S. Government Money Portfolio, but not Class Y shares of any other Fund. | |
Exchanges
into Invesco Senior Loan Fund
Invesco
Senior Loan Fund is a closed-end interval fund that continuously offers its shares pursuant to the terms and conditions of its prospectus.
The Adviser is the investment adviser for the Invesco Senior Loan Fund. As with the Invesco Funds, you generally may exchange your shares
of Class A (Invesco Cash Reserve Shares of Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio) or Class
C of any Invesco Fund for shares of Class A or Class C, respectively, of Invesco Senior Loan Fund. Please refer to the prospectus for
the Invesco Senior Loan Fund for more information, including limitations on exchanges out of Invesco Senior Loan Fund.
Exchanges
Not Permitted
The
following exchanges are not permitted:
◾
Investor
Class shares cannot be exchanged for Class A shares of any Fund which offers Investor Class shares.
◾
Class A2
shares of Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund cannot be exchanged for Class A shares
of those Funds.
◾
Invesco
Cash Reserve Shares cannot be exchanged for Class C or R shares if the shares being exchanged were acquired by exchange from Class A
shares of any Fund.
◾
All
existing systematic exchanges and reallocations will cease and these options will no longer be available on all 403(b) prototype plans.
◾
Class
A, C or R shares of a Fund acquired by exchange of Class Y shares of Invesco U.S. Government Money Portfolio cannot be exchanged for Class
Y shares of any Fund, except Class Y shares of Invesco U.S. Government Money Portfolio.
Exchange
Conditions
Shares
must have been held for at least one day prior to the exchange with the exception of dividends and distributions that are reinvested.
Under
unusual market conditions, a Fund may delay the exchange of shares
for up to five business days if it determines that it would be materially disadvantaged by the immediate transfer of exchange proceeds.
The exchange privilege is not an option or right to purchase shares. Any of the participating Funds or the distributor may modify or terminate
this privilege at any time.
Initial
Sales Charges, CDSCs and 12b-1 Fees Applicable to Exchanges
You
may be required to pay an initial sales charge when exchanging from a Fund with a lower initial sales charge than the one into which you
are exchanging. If you exchange into shares that are subject to a CDSC, the Funds’ transfer agent will begin the holding period
for purposes of calculating the CDSC on the date you made your initial purchase.
In
addition, as a result of differences in the forms of distribution plans among
the Funds, certain exchanges of Class A shares, Class C shares, and Class R shares of a Fund for the same class of shares of another Fund
may result in investors paying a higher or a lower 12b-1 fee on the Fund being exchanged into. Please refer to the prospectus fee table
and financial highlights table and the SAI for more information on the fees and expenses, including applicable 12b-1 fees, of the Fund
you wish to acquire.
Share
Class Conversions
Shares
of one class of a Fund may be converted into shares of another class of the same Fund, provided that you are eligible to buy that share
class. Investors who hold Fund shares through a financial intermediary that does not have an agreement to make certain share classes of
the Funds available or that cannot systematically support the conversion may not be eligible to convert their shares. Furthermore, your
financial intermediary may have discretion to effect a conversion on your behalf. Consult with your financial intermediary for details.
Any CDSC associated with the converting shares will be assessed immediately prior to the conversion to the new share class. The conversion
of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes and no gain
or loss will be reported on the transaction. See the applicable prospectus for share class information.
Fees
and expenses differ between share classes. You should read the prospectus
for the share class into which you are seeking to convert your shares prior to the conversion.
Automatic
Conversion of Class C and Class CX Shares
Class
C and Class CX shares held for eight years after purchase are eligible for automatic conversion into Class A and Class AX shares of the
same Fund, respectively, except that for the Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio, the Funds’
Class C and/or Class CX shares would be eligible to automatically convert into the Fund’s Invesco Cash Reserve Share Class and all
existing Class C shares of Invesco Short Term Municipal Fund will automatically convert to Class A shares of that Fund at the end of June
2022 (the Conversion Feature). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month
following the eighth anniversary after a purchase of Class C or Class CX shares (the Conversion Date). The first conversion of Class C
and Class CX shares to Class A and Class AX shares under this policy would occur at the end of December 2020 for all Class C and Class
CX shares that were held for more than eight years as of November 30, 2020.
Automatic
conversions pursuant to the Conversion Feature will be on the basis
of the NAV per share, without the imposition of any sales charge (including a CDSC), fee or other charge. All such automatic conversions
of Class C and Class CX shares will constitute tax-free exchanges for federal income tax purposes.
Class
C and Class CX shares of a Fund acquired through a reinvestment of
dividends and distributions will convert to Class A and Class AX shares, respectively, of the Fund (or Invesco Cash Reserve shares for
Invesco
A-16 The
Invesco Funds
Government
Money Market Fund) on the Conversion Date pro rata with the converting Class C and Class CX shares of that Fund that were not acquired
through reinvestment of dividends and distributions.
Class
C or Class CX shares held through a financial intermediary in existing
omnibus Employer Sponsored Retirement and Benefit Plans and other omnibus accounts may be converted pursuant to the Conversion Feature
by the financial intermediary once it is determined that the Class C or Class CX shares have been held for the required holding period.
It is the financial intermediary’s (and not the Fund’s) responsibility to keep records and to ensure that the shareholder
is credited with the proper holding period as the Fund and its agents may not have transparency into how long a shareholder has held Class
C or Class CX shares for purposes of determining whether such Class C or Class CX shares are eligible to automatically convert pursuant
to the Conversion Feature. In order to determine eligibility for automatic conversion in these circumstances, it is the responsibility
of the shareholder or their financial intermediary to determine that the shareholder is eligible to exercise the Conversion Feature, and
the shareholder or their financial intermediary may be required to maintain records that substantiate the holding period of Class C or
Class CX shares.
In
addition, a financial intermediary may sponsor and/or control programs
or platforms that impose a different conversion schedule or eligibility requirements for conversions of Class C or Class CX shares. In
these cases, Class C and Class CX shares of certain shareholders may not be eligible for automatic conversion pursuant to the Conversion
Feature as described above. The Fund has no responsibility for overseeing, monitoring or implementing a financial intermediary’s
process for determining whether a shareholder meets the required holding period for automatic conversion. Please consult with your financial
intermediary if you have any questions regarding the Conversion Feature.
Share
Class Conversions Not Permitted
The
following share class conversions are not permitted:
◾
Conversions
into Class A from Class A2 of the same Fund.
◾
Conversions
into Class A2, Class AX, Class CX, Class P or Class S of the same Fund.
Rights
Reserved by the Funds
Each
Fund and its agents reserve the right at any time to:
◾
Reject
or cancel all or any part of any purchase or exchange order.
◾
Modify
any terms or conditions related to the purchase, redemption or exchange of shares of any Fund.
◾
Reject
or cancel any request to establish a Systematic Purchase Plan or Systematic Redemption Plan.
◾
Modify
or terminate any sales charge waivers or exceptions.
◾
Suspend,
change or withdraw all or any part of the offering made by this prospectus.
Excessive
Short-Term Trading Activity (Market Timing) Disclosures
While
the Funds provide their shareholders with daily liquidity, their investment programs are designed to serve long-term investors and are
not designed to accommodate excessive short-term trading activity in violation of our policies described below. Excessive short-term trading
activity in the Funds’ shares (i.e., a purchase of Fund shares followed shortly thereafter by a redemption of such shares, or vice
versa) may hurt the long-term performance of certain Funds by requiring them to maintain an excessive amount of cash or to liquidate portfolio
holdings at a disadvantageous time, thus interfering with the efficient management of such Funds by causing them to incur increased brokerage
and administrative costs. Where excessive short-term trading activity seeks to take advantage of arbitrage opportunities from stale prices
for portfolio securities, the value of Fund shares held by long-term investors may be diluted. The Board has adopted policies and procedures
designed to discourage excessive or short-term trading of Fund shares for all Funds except the money market funds, Invesco Conservative
Income Fund, and Invesco Short Term Municipal Fund. However, there is the risk that these Funds’ policies and procedures will prove
ineffective in whole or in part to detect or prevent excessive or
short-term
trading. These Funds may alter their policies at any time without prior notice to shareholders if the Adviser believes the change would
be in the best interests of long-term shareholders.
Invesco
and certain of its corporate affiliates (Invesco and such affiliates,
collectively, the Invesco Affiliates) currently use the following tools designed to discourage excessive short-term trading in the retail
Funds:
◾
Trade
activity monitoring.
◾
Discretion
to reject orders.
◾
Purchase
blocking.
◾
The
use of fair value pricing consistent with the valuation policy approved by the Board and related procedures.
Each
of these tools is described in more detail below. Although these tools
are designed to discourage excessive short-term trading, you should understand that none of these tools alone nor all of them taken together
eliminate the possibility that excessive short-term trading activity in the Funds will occur. Moreover, each of these tools involves judgments
that are inherently subjective. Invesco Affiliates seek to make these judgments to the best of their abilities in a manner that they believe
is consistent with long-term shareholder interests.
Money
Market Funds. The Boards of Invesco Government Money Market Fund,
Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio (the money market
funds) have not adopted any policies and procedures that would limit frequent purchases and redemptions of such Funds’ shares. The
Boards of the money market funds considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal. Nonetheless, to the extent that a money market fund must maintain additional cash and/or
securities with short-term durations in greater amounts than may otherwise be required or borrow to honor redemption requests, the money
market fund’s yield could be negatively impacted.
The
Boards of the money market funds do not believe that it is appropriate
to adopt any such policies and procedures for the money market funds for the following reasons:
◾
The
money market funds are offered to investors as cash management vehicles; therefore, investors should be able to purchase and redeem shares
regularly and frequently.
◾
One
of the advantages of a money market fund as compared to other investment options is liquidity. Any policy that diminishes the liquidity
of the money market funds will be detrimental to the continuing operations of such Funds.
◾
With
respect to the money market funds maintaining a constant net asset value, the money market funds’ portfolio securities are valued
on the basis of amortized cost, and such Funds seek to maintain a constant net asset value. As a result, the money market funds are not
subject to price arbitrage opportunities.
◾
With
respect to the money market funds maintaining a constant net asset value, because such Funds seek to maintain a constant net asset value,
investors are more likely to expect to receive the amount they originally invested in the Funds upon redemption than other mutual funds.
Invesco
Conservative Income Fund. The Board of Invesco Conservative Income
Fund has not adopted any policies and procedures that would limit frequent purchases and redemptions of such Fund’s shares. The
Board of Invesco Conservative Income Fund considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal especially in light of the reasons for not having such a policy as described below. Nonetheless,
to the extent that the Fund must maintain additional cash and/or securities with short-term durations in greater amounts than may otherwise
be required or borrow to honor redemption requests, the Fund’s yield could be negatively impacted.
The
Board of the Invesco Conservative Income Fund does not believe that
it is appropriate to adopt any such policies and procedures for the Fund for the following reasons:
◾
The
Fund is offered to investors as a cash management vehicle; investors perceive an investment in the Fund as an alternative to cash and
must be able to purchase and redeem shares regularly and frequently.
A-17 The
Invesco Funds
◾
One
of the advantages of the Fund as compared to other investment options is liquidity. Any policy that diminishes the liquidity of the Fund
will be detrimental to the continuing operations of the Fund.
Excessive
trading activity in the Fund’s shares may cause the Fund to incur
increased brokerage and administrative costs.
The
Fund and its agent reserve the right at any time to reject or cancel any
part of any purchase order. This could occur if the Fund determines that such purchase may disrupt the Fund’s operation or performance.
Invesco
Short Term Municipal Fund. The Board of Invesco Short Term Municipal
Fund has not adopted any policies and procedures that would limit frequent purchases and redemptions of such Fund’s shares. The
Board of Invesco Short Term Municipal Fund considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal, especially in light of the reasons for not having such a policy as described below. Nonetheless,
to the extent that the Fund must maintain additional cash and/or securities with short-term durations in greater amounts than may otherwise
be required or borrow to honor redemption requests, the Fund’s yield could be negatively impacted.
The
Board of Invesco Short Term Municipal Fund does not believe that it is
appropriate to adopt any such policies and procedures for the Fund for the following reasons:
◾
The
Fund is designed to address the needs of retail investors who seek liquidity in their investment and seek the ability to purchase and
redeem shares at any time.
◾
Any
policy that diminishes the ability of shareholders to purchase and redeem shares of the Fund will be detrimental to the continuing operations
of the Fund.
◾
The
Fund generally invests in short duration liquid investment grade municipal securities.
Excessive
trading activity in the Fund’s shares may cause the Fund to incur
increased brokerage and administrative costs. The Fund and its agent reserve the right at any time to reject or cancel any part of any
purchase order. This could occur if the Fund determines that such purchase may disrupt the Fund’s operation or performance.
Trade
Activity Monitoring
Invesco
Affiliates monitor selected trades on a daily basis in an effort to detect excessive short-term trading activities. If, as a result of
this monitoring, Invesco Affiliates believe that a shareholder has engaged in excessive short-term trading, they will seek to act in a
manner that they believe is consistent with the best interests of long-term investors, which may include taking steps such as (i) asking
the shareholder to take action to stop such activities or (ii) refusing to process future purchases or exchanges related to such activities
in the shareholder’s accounts other than exchanges into a money market fund. Invesco Affiliates will use reasonable efforts to apply
the Funds’ policies uniformly given the practical limitations described above.
The
ability of Invesco Affiliates to monitor trades that are made through accounts
that are maintained by intermediaries (rather than the Funds’ transfer agent) and through conduit investment vehicles may be limited
or non-existent.
Discretion
to Reject Orders
If
a Fund or an Invesco Affiliate determines, in its sole discretion, that your short-term trading activity is excessive, the Fund may, in
its sole discretion, reject any additional purchase and exchange orders. This discretion may be exercised with respect to purchase or
exchange orders placed directly with the Funds’ transfer agent or through a financial intermediary.
Purchase
Blocking Policy
The
Funds (except those listed below) have adopted a policy under which any shareholder redeeming shares having a value of $50,000 or more
from a Fund on any trading day will be precluded from investing in that Fund for 30 calendar days after the redemption transaction date.
The policy applies to redemptions and purchases that are part of exchange transactions. Under the purchase blocking policy, certain purchases
will not be prevented and certain redemptions will not trigger a purchase block, such as: purchases
and redemptions
of shares having a value of less than $50,000; systematic purchase, redemption and exchange account options; transfers of shares within
the same Fund; non-discretionary rebalancing in fund-of-funds; asset allocation features; fee-based accounts; account maintenance fees;
small balance account fees; plan-level omnibus Retirement and Benefit Plans; death and disability and hardship distributions; loan transactions;
transfers of assets; Retirement and Benefit Plan rollovers; IRA conversions and re-characterizations; and mandatory distributions from
Retirement and Benefit Plans.
The
Funds reserve the right to modify any of the parameters (including those
not listed above) of the purchase blocking policy at any time. Further, the purchase blocking policy may be waived with respect to specific
shareholder accounts in those instances where the Adviser determines that its surveillance procedures are adequate to detect frequent
trading in Fund shares.
If
an account is maintained by a financial intermediary whose systems are
unable to apply Invesco’s purchase blocking policy, the Adviser will accept the establishment of an account only if the Adviser
believes the policies and procedures are reasonably designed to enforce the frequent trading policies of the Funds. You should refer to
disclosures provided by the financial intermediary with which you have an account to determine the specific trading restrictions that
apply to you. If the Adviser identifies any activity that may constitute frequent trading, it reserves the right to contact the intermediary
and request that the intermediary either provide information regarding an account owner’s transactions or restrict the account owner’s
trading. There is no guarantee that all instances of frequent trading in Fund shares will be prevented.
The
purchase blocking policy does not apply to Invesco Conservative Income
Fund, Invesco Short Term Municipal Fund, Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government
Money Portfolio and Invesco U.S. Government Money Portfolio.
Pricing
of Shares
Determination
of Net Asset Value
The
price of each Fund’s shares is the Fund’s net asset value per share. The Funds (except Invesco Government Money Market Fund,
Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio) value portfolio
securities for which market quotations are readily available at market value. Securities and other assets quoted in foreign currencies
are valued in U.S. dollars based on the prevailing exchange rates on that day. The Funds (except Invesco Government Money Market Fund,
Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio) value securities
and assets for which market quotations are unavailable at their “fair value,” which is described below. Invesco Government
Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio
value portfolio securities on the basis of amortized cost, which approximates market value. This method of valuation is designed to enable
a Fund to price its shares at $1.00 per share. The Funds cannot guarantee their net asset value will always remain at $1.00 per share.
Securities and other assets quoted in foreign currencies are valued in U.S. dollars based on the prevailing exchange rates on that day.
The Fund values securities and assets for which market quotations are unavailable at their “fair value,” which is described
below.
Even
when market quotations are available, they may be stale or not
representative of market value in the Adviser’s judgment (“unreliable”)
because the security is not traded frequently, trading on the security
ceased before the close of the trading market or issuer specific events occurred after the security ceased trading or because of the passage
of time between the close of the market on which the security trades and the close of the NYSE and when the Fund calculates its net asset
value. Issuer specific events may cause the last market quotation to be unreliable. Such events may include a merger or insolvency, events
that affect a geographical area or an industry segment, such as political events or natural disasters, or market events, such as a significant
movement in the U.S. market. Where
A-18 The
Invesco Funds
the Adviser
determines that the closing price of the security is stale or unreliable, the Adviser will value the security at its fair value.
A
fair value price is an estimated price that requires consideration of all appropriate factors, including indications of fair value available
from pricing services. Fair value pricing involves judgment and a Fund that uses fair value methodologies may value securities higher
or lower than another Fund using market quotations or its own fair value methodologies to price the same securities. Investors who purchase
or redeem Fund shares on days when the Fund is holding fair-valued securities may receive a greater or lesser number of shares, or higher
or lower redemption proceeds, than they would have received if the Fund had not fair-valued the security or had used a different methodology.
The
Board has designated the Adviser to perform the daily determination
of fair value prices in accordance with Board approved
policies and related procedures,
subject to the Board’s oversight. Fair value pricing methods
and pricing services can change from time to time.
The
intended effect of applying fair value pricing is to compute an NAV that
accurately reflects the value of a Fund’s portfolio at the time that the NAV is calculated. An additional intended effect is to
discourage those seeking to take advantage of arbitrage opportunities resulting from “stale” prices and to mitigate the dilutive
impact of any such arbitrage. However, the application of fair value pricing cannot eliminate the possibility that arbitrage opportunities
will exist.
Specific
types of securities are valued as follows:
Senior
Secured Floating Rate Loans and Senior Secured Floating Rate Debt
Securities. Senior secured floating rate loans and senior secured
floating rate debt securities are fair valued using evaluated quotes provided by an independent pricing service. Evaluated quotes provided
by the pricing service may reflect appropriate factors such as market quotes, ratings, tranche type, industry, company performance, spread,
individual trading characteristics, institution-size trading in similar groups of securities and other market data.
Domestic
Exchange Traded Equity Securities. Market quotations are generally
available and reliable for domestic exchange traded equity securities. If market quotations are not available or are unreliable, the Adviser
will value the security at fair value in good faith using the valuation policy approved by the Board and related procedures.
Foreign
Securities. If market quotations are available and reliable for
foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign
securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular
security and the close of the customary trading session on the NYSE events occur that are significant and may make the closing price unreliable,
the Fund may fair value the security. If an issuer specific event has occurred that the Adviser determines, in its judgment, is likely
to have affected the closing price of a foreign security, it will price the security at fair value. The Adviser also relies on a screening
process from a pricing vendor to indicate the degree of certainty, based on historical data, that the closing price in the principal market
where a foreign security trades is not the current market value as of the close of the NYSE. For foreign securities where the Adviser
believes, at the approved degree of certainty, that the price is not reflective of current market value, the Adviser will use the indication
of fair value from the pricing service to determine the fair value of the security. The pricing vendor, pricing methodology or degree
of certainty may change from time to time.
Fund
securities primarily traded on foreign markets may trade on days that
are not business days of the Fund. Because the net asset value of Fund shares is determined only on business days of the Fund, the value
of the portfolio securities of a Fund that invests in foreign securities may change on days when you will not be able to purchase or redeem
shares of the Fund.
Fixed
Income Securities. Fixed income securities, such as government,
corporate, asset-backed and municipal bonds, convertible securities, including high yield or junk bonds, and loans, generally are valued
on the basis of prices provided by independent pricing services. Prices provided by the pricing services may be determined without exclusive
reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in
similar
groups of securities, developments related to special securities, dividend rate, maturity and other market data. Pricing services generally
value fixed income securities assuming orderly transactions of institutional round lot size, but a Fund may hold or transact in the same
securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Prices received from pricing
services are fair value prices. In addition, if the price provided by the pricing service and independent quoted prices are unreliable,
the Adviser will fair value the security using the valuation policy approved by the Board and related procedures.
Short-term
Securities. Invesco Government Money Market Fund, Invesco Premier
Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio value all their securities at amortized
cost. Invesco Limited Term Municipal Income Fund values variable rate securities that have an unconditional demand or put feature exercisable
within seven days or less at par, which reflects the market value of such securities.
Futures
and Options. Futures contracts are valued at the final settlement
price set by the exchange on which they are principally traded. U.S.
exchange-traded options are valued at the mean between the last
bid and asked prices from the exchange on which they principally trade. Non-U.S. exchange-traded options are valued at the final settlement
price set by
the exchange on which they trade. Options not listed on an exchange and swaps generally are valued using pricing provided from independent
pricing services.
Swap
Agreements. Swap Agreements are fair valued using an evaluated
quote provided by an independent pricing service. Evaluated quotes provided by the pricing service are based on a model that may include
end of day net present values, spreads, ratings, industry and company performance.
Open-end
Funds. If a Fund invests in other open-end funds, other than open-end
funds that are exchange traded, the investing Fund will calculate its net asset value using the net asset value of the underlying fund
in which it invests, and the prospectuses for such open-end funds explain the circumstances under which they will use fair value pricing
and the effects of using fair value pricing.
Each
Fund, except for Invesco Government Money Market Fund, Invesco Premier
Portfolio and Invesco Premier U.S. Government Money Portfolio, generally determines the net asset value of its shares on each day the
NYSE is open for trading (a business day) as of approximately 4:00 p.m. Eastern Time (the customary close of regular trading) or earlier
in the case of a scheduled early close. In the event of an unscheduled early close of the NYSE, each Fund, except for Invesco Government
Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio, generally still will determine the net
asset value of its shares as of 4:00 p.m. Eastern Time on that business day. Portfolio securities traded on the NYSE would be valued at
their closing prices unless the Adviser determines
that a “fair value” adjustment is appropriate due to subsequent events occurring after an early close consistent with the
valuation policy approved
by the Board and related procedures. Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government
Money Portfolio will generally determine the net asset value of their shares at 5:30 p.m. Eastern Time on each business day. A business
day for Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio is any day
that (1) both the Federal Reserve Bank of New York and a Fund’s custodian are open for business and (2) the primary trading markets
for the Fund’s portfolio instruments are open and the Fund’s management believes there is an adequate market to meet purchase
and redemption requests. Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money
Portfolio are authorized not to open for trading on a day that is otherwise a business day if the Securities Industry and Financial Markets
Association (SIFMA) recommends that government securities dealers not open for trading; any such day will not be considered a business
day. Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio, Invesco
U.S. Government Money Portfolio also may close early on a business day if SIFMA recommends that government securities dealers close early.
If
A-19 The
Invesco Funds
Invesco
Government Money Market Fund, Invesco Premier Portfolio or Invesco Premier U.S. Government Money Portfolio uses its discretion to
close early on a business day, the Fund will calculate its net asset value as of the time of such closing Invesco Premier Portfolio and
Invesco U.S. Government Money Portfolio are authorized to not open for trading on a day that is otherwise a business day if the NYSE recommends
that government securities dealers not open for trading; any such day will not be considered a business day. Invesco Premier Portfolio
also may close early on a business day if the NYSE recommends that government securities dealers close early.
For
financial reporting purposes and shareholder transactions on the last
day of the fiscal quarter, transactions are normally accounted for on a trade date basis. For purposes of executing shareholder transactions
in the normal course of business (other than shareholder transactions at a fiscal period-end), each Fund’s portfolio securities
transactions are recorded no later than the first business day following the trade date.
The
Invesco Advantage International Fund, Invesco Balanced-Risk Allocation
Fund, Invesco Balanced-Risk Commodity Strategy Fund, Invesco Fundamental Alternatives Fund, Invesco Global Allocation Fund, Invesco Global
Strategic Income Fund, Invesco Gold & Special Minerals Fund, Invesco High Yield Bond Factor Fund, Invesco International Bond Fund
and Invesco Macro Allocation Strategy Fund may each invest up to 25% of their total assets in shares of their respective subsidiaries
(the Subsidiaries). The Subsidiaries offer to redeem all or a portion of their shares at the current net asset value per share every regular
business day. The value of shares of the Subsidiaries will fluctuate with the value of the respective Subsidiary’s portfolio investments.
The Subsidiaries price their portfolio investments pursuant to the same pricing and valuation methodologies and procedures used by the
Funds, which require, among other things, that each of the Subsidiaries’ portfolio investments be marked-to-market (that is, the
value on each of the Subsidiaries’ books changes) each business day to reflect changes in the market value of the investment.
Each
Fund’s current net asset value per share is made available on the Funds’
website at www.invesco.com/us.
Fair
Value Pricing
Securities
owned by a Fund (except Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio
and Invesco U.S. Government Money Portfolio) are to be valued at current market value if market quotations are readily available. All
other securities and assets of a Fund for which market quotations are not readily available are to be valued at fair value determined
in good faith consistent with the valuation policy approved by the Board and related procedures. An effect of fair value pricing may be
to reduce the ability of frequent traders to take advantage of arbitrage opportunities resulting from potentially “stale”
prices of portfolio holdings. However, it cannot eliminate the possibility of frequent trading.
The
price a Fund could receive upon the sale of any investment may differ
from the Adviser's valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair
valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions
(i.e., publicly traded company multiples, growth rate, time to exit), to determine a methodology that will result in a valuation that
the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value
from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and
the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the
investment.
Timing
of Orders
Each
Fund prices purchase, exchange and redemption orders at the net asset value next calculated by the Fund after the Fund’s transfer
agent, authorized agent or designee receives an order in good order for the Fund. Purchase, exchange and redemption orders must be received
prior to the close of business on a business day, as defined by the applicable Fund, to receive that day’s net asset value. Any
applicable sales charges are applied at the time an order is processed.
Currently,
certain financial intermediaries may serve as agents for the Funds
and accept orders on their behalf. Where a financial intermediary serves as agent, the order is priced at the Fund’s net asset value
next calculated after it is accepted by the financial intermediary. In such cases, if requested by a Fund, the financial intermediary
is responsible for providing information with regard to the time that such order for purchase, redemption or exchange was received. Orders
submitted through a financial intermediary that has not received authorization to accept orders on a Fund’s behalf are priced at
the Fund’s net asset value next calculated by the Fund after it receives the order from the financial intermediary and accepts it,
which may not occur on the day submitted to the financial intermediary.
Additional
Information Regarding Deferred Tax Liability (only applicable to the Invesco Steelpath Funds)
In
calculating the Fund’s daily NAV, the Fund will, among other things, account for its deferred tax liability and/or asset balances.
As a result, any deferred tax liability and/or asset is reflected in the Fund’s daily NAV.
The
Fund will accrue a deferred income tax liability balance, at the U.S. federal
corporate income tax rate plus an estimated state and local income tax rate for its future tax liability associated with MLP distributions
considered to be a return of capital, as well as for its future tax liability associated with the capital appreciation of its investments.
The Fund’s current and deferred tax liability, if any, will depend upon the Fund’s net investment gains and losses and realized
and unrealized gains and losses on investments and therefore may vary greatly from year to year depending on the nature of the Fund’s
investments, the performance of those investments and general market conditions. Any deferred tax liability balance will reduce the Fund’s
NAV. Upon the Fund’s sale of an MLP security, the Fund may be liable for previously deferred taxes.
The
Fund will accrue, in accordance with generally accepted accounting principles,
a deferred tax asset balance, which reflects an estimate of the Fund’s future tax benefit associated with net operating losses and
unrealized losses. Any deferred tax asset balance will increase the Fund’s NAV. To the extent the Fund has a deferred tax asset
balance, the Fund will assess, in accordance with generally accepted accounting principles, whether a valuation allowance, which would
offset the value of some or all of the Fund’s deferred tax asset balance, is required. Pursuant to Financial Accounting Standards
Board Accounting Standards Codification 740 (FASB ASC 740), the Fund will assess a valuation allowance to reduce some or all of the deferred
tax asset balance if, based on the weight of all available evidence, both negative and positive, it is more likely than not that some
or all of the deferred tax asset will not be realized. The Fund will use judgment in considering the relative impact of negative and positive
evidence. The weight given to the potential effect of negative and positive evidence will be commensurate with the extent to which such
evidence can be objectively verified. The Fund’s assessment considers, among other matters, the nature, frequency and severity of
current and cumulative losses, the duration of statutory carry forward periods and the associated risk that operating loss and capital
loss carry forwards may be limited or expire unused, and unrealized gains and losses on investments. Consideration is also given to market
cycles, the severity and duration of historical deferred tax assets, the impact of redemptions, and the level of MLP distributions. The
Fund will assess whether a valuation allowance is required to offset some or all of any deferred tax asset in connection with the calculation
of the Fund’s NAV per share each day; however, to the extent the final valuation allowance differs from the estimates the Fund used
in calculating the Fund’s daily NAV, the application of such final valuation allowance could have a material impact on the Fund’s
NAV.
The
Fund’s deferred tax asset and/or liability balances are estimated using
estimates of effective tax rates expected to apply to taxable income in the years such balances are realized. The Fund will rely to some
extent on information provided by MLPs in determining the extent to which distributions received from MLPs constitute a return of capital,
which may not be provided to the Fund on a timely basis, to estimate the Fund’s deferred tax liability and/or asset balances for
purposes of financial statement reporting and determining its NAV. If such information is not
A-20 The
Invesco Funds
received
from such MLPs on a timely basis, the Fund will estimate the extent to which distributions received from MLPs constitute a return of capital
based on average historical tax characterization of distributions made by MLPs. The Fund’s estimates regarding its deferred tax
liability and/or asset balances are made in good faith; however, the daily estimate of the Fund’s deferred tax liability and/or
asset balances used to calculate the Fund’s NAV could vary dramatically from the Fund’s actual tax liability. Actual income
tax expense, if any, will be incurred over many years, depending on if and when investment gains and losses are realized, the then-current
basis of the Fund’s assets and other factors. As a result, the determination of the Fund’s actual tax liability may have a
material impact on the Fund’s NAV. The Fund’s daily NAV calculation will be based on then current estimates and assumptions
regarding the Fund’s deferred tax liability and/or asset balances and any applicable valuation allowance, based on all information
available to the Fund at such time. From time to time, the Fund may modify its estimates or assumptions regarding its deferred tax liability
and/or asset balances and any applicable valuation allowance as new information becomes available. Modifications of the Fund’s estimates
or assumptions regarding its deferred tax liability and/or asset balances and any applicable valuation allowance, changes in generally
accepted accounting principles or related guidance or interpretations thereof, limitations imposed on net operating losses (if any) and
changes in applicable tax law could result in increases or decreases in the Fund’s NAV per share, which could be material.
Taxes
(applicable to all Funds except for the Invesco SteelPath Funds and Invesco Master Loan Fund)
A
Fund intends to qualify each year as a regulated investment company (RIC) and, as such, is not subject to entity-level tax on the income
and gain it distributes to shareholders. If you are a taxable investor, dividends and distributions you receive from a Fund generally
are taxable to you whether you reinvest distributions in additional Fund shares or take them in cash. Every year, you will be sent information
showing the amount of dividends and distributions you received from a Fund during the prior calendar year. In addition, investors in taxable
accounts should be aware of the following basic tax points as supplemented below where relevant:
Fund Tax
Basics
◾
A
Fund earns income generally in the form of dividends or interest on its investments. This income, less expenses incurred in the operation
of a Fund, constitutes the Fund’s net investment income from which dividends may be paid to you. If you are a taxable investor,
distributions of net investment income generally are taxable to you as ordinary income.
◾
Distributions
of net short-term capital gains are taxable to you as ordinary income. A Fund with a high portfolio turnover rate (a measure of how frequently
assets within a Fund are bought and sold) is more likely to generate short-term capital gains than a Fund with a low portfolio turnover
rate.
◾
Distributions
of net long-term capital gains are taxable to you as long-term capital gains no matter how long you have owned your Fund shares.
◾
A
portion of income dividends paid by a Fund to you may be reported as qualified dividend income eligible for taxation by individual shareholders
at long-term capital gain rates, provided certain holding period requirements are met. These reduced rates generally are available for
dividends derived from a Fund’s investment in stocks of domestic corporations and qualified foreign corporations. In the case of
a Fund that invests primarily in debt securities, either none or only a nominal portion of the dividends paid by the Fund will be eligible
for taxation at these reduced rates.
◾
The
use of derivatives by a Fund may cause the Fund to realize higher amounts of ordinary income or short-term capital gain, distributions
from which are taxable to individual shareholders at ordinary income tax rates rather than at the more favorable tax rates for long-term
capital gain.
◾
Distributions
declared to shareholders with a record date in October, November or December—if paid to you by the end of January—are taxable
for federal income tax purposes as if received in December.
◾
Any
long-term or short-term capital gains realized on the sale or redemption of your Fund shares will be subject to federal income tax. For
tax
purposes an exchange of your shares for shares of another Fund is the same as a sale. An exchange occurs when the purchase of shares of
a Fund is made using the proceeds from a redemption of shares of another Fund and is effectuated on the same day as the redemption. Your
gain or loss is calculated by subtracting from the gross proceeds your cost basis. Gross proceeds and, for shares acquired on or after
January 1, 2012 and disposed of after that date, cost basis will be reported to you and the Internal Revenue Service (IRS). Cost
basis will be calculated using the Fund’s default method of average cost, unless you instruct the Fund to use a different calculation
method. As a service to you, the Fund will continue to provide to you (but not the IRS) cost basis information for shares acquired before
2012, when available, using the average cost method. Shareholders should carefully review the cost basis information provided by a Fund
and make any additional basis, holding period or other adjustments that are required when reporting these amounts on their federal income
tax returns. If you hold your Fund shares through a broker (or other nominee), please contact that broker (nominee) with respect to reporting
of cost basis and available elections for your account. For more information about the cost basis methods offered by Invesco, please refer
to the Tax Center located under the Account Access & Forms menu of our website at www.Invesco.com/us.
◾
The
conversion of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes
and no gain or loss will be reported on the transaction. This is true whether the conversion occurs automatically pursuant to the terms
of the class or is initiated by the shareholder.
◾
At
the time you purchase your Fund shares, the Fund’s net asset value may reflect undistributed income or undistributed capital gains.
A subsequent distribution to you of such amounts, although constituting a return of your investment, would be taxable. Buying shares in
a Fund just before it declares an income dividend or capital gains distribution is sometimes known as “buying a dividend.”
In addition, a Fund’s net asset value may, at any time, reflect net unrealized appreciation, which may result in future taxable
distributions to you.
◾
By
law, if you do not provide a Fund with your proper taxpayer identification number and certain required certifications, you may be subject
to backup withholding on any distributions of income, capital gains, or proceeds from the sale of your shares. A Fund also must withhold
if the IRS instructs it to do so. When withholding is required, the amount will be 24% of any distributions or proceeds paid.
◾
An
additional 3.8% Medicare tax is imposed on certain net investment income (including ordinary dividends and capital gain distributions
received from a Fund and net gains from redemptions or other taxable dispositions of Fund shares) of U.S. individuals, estates and trusts
to the extent that such person’s “modified adjusted gross income” (in the case of an individual) or “adjusted
gross income” (in the case of an estate or trust) exceeds a threshold amount. This Medicare tax, if applicable, is reported by you
on, and paid with, your federal income tax return.
◾
You
will not be required to include the portion of dividends paid by a Fund derived from interest on U.S. government obligations in your
gross income for purposes of personal and, in some cases, corporate income taxes in many state and local tax jurisdictions. The percentage
of dividends that constitutes dividends derived from interest on federal obligations will be determined annually. This percentage may
differ from the actual percentage of interest received by the Fund on federal obligations for the particular days on which you hold shares.
◾
Fund
distributions and gains from sale or exchange of your Fund shares generally are subject to state and local income taxes.
◾
If
a Fund qualifies to pass through to you the tax benefits from foreign taxes it pays on its investments, and elects to do so, then any
foreign taxes it pays on these investments may be passed through to you. You will then be required to include your pro-rata share of these
taxes in gross income, even though not actually received by you, and will be entitled either to deduct your share of these taxes in computing
your taxable income, or to claim a foreign tax credit for these taxes against your U.S. federal income tax.
A-21 The
Invesco Funds
◾
Foreign
investors should be aware that U.S. withholding, special certification requirements to avoid U.S. backup withholding and claim
any treaty benefits, and estate taxes may apply to an investment in a Fund.
◾
Under
the Foreign Account Tax Compliance Act (FATCA), a Fund will be required to withhold a 30% tax on income dividends made by the Fund to
certain foreign entities, referred to as foreign financial institutions or non-financial foreign entities, that fail to comply (or be
deemed compliant) with extensive reporting and withholding requirements designed to inform the U.S. Department of the Treasury of U.S.-owned
foreign investment accounts. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide otherwise (which
is not expected). A Fund may disclose the information that it receives from its shareholders to the IRS, non-U.S. taxing authorities or
other parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that is a shareholder
of a Fund fails to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.
◾
If
a Fund invests in an underlying fund taxed as a RIC, please see any relevant section below for more information regarding the Fund’s
investment in such underlying fund.
The
above discussion concerning the taxability of Fund dividends and distributions and of redemptions and exchanges of Fund shares is inapplicable
to investors holding shares through a tax-advantaged arrangement, such as Retirement and Benefit Plans or 529 college savings plans. Such
investors should refer to the applicable account documents/program description for that arrangement for more information regarding the
tax consequences of holding and redeeming Fund shares.
Funds
Investing in Municipal Securities
◾
You
will not be required to include the “exempt-interest” portion of dividends paid by the Fund in either your gross income for
federal income tax purposes or your net investment income subject to the additional 3.8% Medicare tax. You will be required to report
the receipt of exempt-interest dividends and other tax-exempt interest on your federal income tax returns. The percentage of dividends
that constitutes exempt-interest dividends will be determined annually. This percentage may differ from the actual percentage of exempt
interest received by the Fund for the particular days in which you hold shares.
◾
A
Fund may invest in municipal securities the interest on which constitutes an item of tax preference and could give rise to a federal alternative
minimum tax liability for noncorporate shareholders, unless such municipal securities were issued in 2009 or 2010.
◾
Exempt-interest
dividends from interest earned on municipal securities of a state, or its political subdivisions, generally are exempt from that state’s
personal income tax. Most states, however, do not grant tax-free treatment to interest from municipal securities of other states.
◾
A
Fund may invest a portion of its assets in securities that pay income that is not tax-exempt. To the extent that dividends paid by a Fund
are derived from taxable investments or realized capital gains, they will be taxable as ordinary income or long-term capital gains.
◾
A
Fund may distribute to you any market discount and net short-term capital gains from the sale of its portfolio securities. If you are
a taxable investor, Fund distributions from this income are taxable to you as ordinary income, and generally will neither qualify for
the dividends-received deduction in the case of corporate shareholders nor as qualified dividend income subject to reduced rates of taxation
in the case of noncorporate shareholders.
◾
Exempt-interest
dividends from a Fund are taken into account when determining the taxable portion of your social security or railroad retirement benefits,
may be subject to state and local income taxes, may affect the deductibility of interest on certain indebtedness, and may have other collateral
federal income tax consequences for you.
◾
There
are risks that: (a) a security issued as tax-exempt may be reclassified by the IRS or a state tax authority as taxable and/or (b) future
legislative,
administrative or court actions could adversely impact the qualification of income from a tax-exempt security as tax-free. Such reclassifications
or actions could cause interest from a security to become taxable, possibly retroactively, subjecting you to increased tax liability.
In addition, such reclassifications or actions could cause the value of a security, and therefore, the value of the Fund’s shares,
to decline.
Money
Market Funds
◾
A
Fund does not anticipate realizing any long-term capital gains.
◾
If
a Fund expects to maintain a stable net asset value of $1.00 per share, investors should not have any gain or loss on sale or exchange
of Fund shares (unless the investor incurs a liquidity fee on such sale or exchange). See “Liquidity Fees and Redemption Gates.”
◾
There
is some degree of uncertainty with respect to the tax treatment of liquidity fees received by a Fund, and such tax treatment may be the
subject of future IRS guidance. If a Fund receives liquidity fees, it will consider the appropriate tax treatment of such fees to the
Fund at such time.
◾
Unless
you choose to adopt a simplified “NAV method” of accounting (described below), any capital gain or loss on the sale or exchange
of Fund shares (as noted above) generally will be treated either as short-term if you held your Fund shares for one year or less, or long-term
if you held your Fund shares longer. If you elect to adopt the NAV method of accounting, rather than computing gain or loss on every taxable
disposition of Fund shares as described above, you would determine your gain or loss based on the change in the aggregate value of your
Fund shares during a computation period (such as your taxable year), reduced by your net investment (purchases minus sales) in those shares
during that period. Under the NAV method, any resulting net capital gain or loss would be treated as short-term capital gain or loss.
Funds
Investing in Real Estate Securities
◾
Because
of “noncash” expenses such as property depreciation, the cash flow of a REIT that owns properties will exceed its taxable
income. The REIT, and in turn a Fund, may distribute this excess cash to shareholders. Such a distribution is classified as a return of
capital. Return of capital distributions generally are not taxable to you. Your cost basis in your Fund shares will be decreased by the
amount of any return of capital. Any return of capital distributions in excess of your cost basis will be treated as capital gains.
◾
Dividends
paid to shareholders from the Funds’ investments in U.S. REITs generally will not qualify for taxation at long-term capital gain
rates applicable to qualified dividend income.
◾
The
Fund may derive “excess inclusion income” from certain equity interests in mortgage pooling vehicles either directly or through
an investment in a U.S. REIT. Please see the SAI for a discussion of the risks and special tax consequences to shareholders in the event
the Fund realizes excess inclusion income in excess of certain threshold amounts.
◾
Under
the Tax Cuts and Jobs Act, “qualified REIT dividends” (i.e., ordinary REIT dividends other than capital gain dividends and
portions of REIT dividends designated as qualified dividend income) are treated as eligible for a 20% deduction by noncorporate taxpayers.
The Fund may choose to report the special character of “qualified REIT dividends” to a shareholder, provided both the Fund
and a shareholder meet certain holding period requirements with respect to their shares.
◾
The
Fund’s foreign shareholders should see the SAI for a discussion of the risks and special tax consequences to them from a sale of
a U.S. real property interest by a REIT in which the Fund invests.
Funds
Investing in Partnerships
◾
Taxes,
penalties, and interest associated with an audit of a partnership
are generally required to be assessed and collected at the partnership level. Therefore, an adverse federal income tax audit of a partnership
that a Fund invests in (including MLPs taxed as partnerships) could result in the Fund being required to pay federal income tax. A Fund
may have little input in any audit asserted against a partnership and may be contractually or legally obligated to make payments in regard
to deficiencies asserted without the ability to put forward an independent defense. Accordingly,
A-22 The
Invesco Funds
even
if a partnership in which the Fund invests were to remain classified as a partnership (instead of as a corporation), it could be required
to pay additional taxes, interest and penalties as a result of an audit adjustment, and the Fund, as a direct or indirect partner of such
partnership, could be required to bear the economic burden of those taxes, interest and penalties, which would reduce the value of Fund
shares.
◾
Under
the Tax Cuts and Jobs Act “qualified publicly traded partnership income” is treated as eligible for a 20% deduction by noncorporate
taxpayers. The legislation does not contain a provision permitting a RIC, such as a Fund, to pass the special character of this income
through to its shareholders. It is uncertain whether a future technical corrections bill or regulations issued by the IRS will address
this issue to enable a Fund to pass through the special character of “qualified publicly traded partnership income” to its
shareholders.
◾
Some
amounts received by a Fund from the MLPs in which it invests likely will be treated as returns of capital to such Fund because of accelerated
deductions available to the MLPs. The receipt of returns of capital from the MLPs in which a Fund invests could cause some or all of the
Fund’s distributions to be classified as a return of capital. Return of capital distributions generally are not taxable to you.
Your cost basis in your Fund shares will be decreased by the amount of any return of capital. Any return of capital distributions in excess
of your cost basis will be treated as capital gains.
Funds
Investing in Commodities
◾
The
Funds’ strategies of investing through their respective Subsidiary in derivatives and other financially linked instruments whose
performance is expected to correspond to the commodity markets may cause the Funds to recognize more ordinary income and short-term capital
gains taxable as ordinary income than would be the case if the Funds invested directly in commodities.
◾
The
Funds must meet certain requirements under the Code for favorable tax treatment as a RIC, including asset diversification and income requirements.
The IRS has issued a revenue ruling which holds that income derived from commodity-linked swaps is not qualifying income for purposes
of the Income Requirement. In a subsequent revenue ruling, as well as in a number of follow-on private letter rulings (upon which only
the fund that received the private letter ruling may rely), the IRS provides that income from certain alternative investments which create
commodity exposure, such as certain commodity-linked or structured notes or a corporate subsidiary that invests in commodities, may be
considered qualifying income under the Code. However, the portion of such rulings relating to the treatment of a corporation as a regulated
investment company that require a determination of whether a financial instrument or position is a security under section 2(a)(36) of
the 1940 Act was revoked because of changes in the IRS’s position.
(A financial instrument or position that constitutes a security
under section 2(a)(36) of the 1940 Act generates qualifying income for a corporation taxed as a regulated investment company.) The Funds
intend to treat the income each derives from commodity-linked notes as qualifying income based on an opinion from counsel confirming that
income from such investments should be qualifying income because such commodity-linked notes constitute securities under section 2(a)(36)
of the 1940 Act. Each Subsidiary will be classified for federal income tax purposes as a controlled foreign corporation (CFC) with respect
to the Fund. As such, the Fund will be required to include in its gross income each year amounts earned by the Subsidiary during that
year (“Subpart F” income), whether or not such earnings are distributed by the Subsidiary to the Fund (deemed inclusions).
Treasury Regulations also permit the Fund to treat such deemed inclusions of “Subpart F” income from the Subsidiary as qualifying
income to the Fund, even if the Subsidiary does not make a distribution of such income. Consequently, the Fund and the Subsidiary reserve
the right to rely on deemed inclusions being treated as qualifying income to the Fund consistent with recently released Treasury Regulations.
If, contrary to the opinion of counsel or other guidance issued by the IRS, the IRS were to determine that income from direct investment
in commodity-linked notes is non-qualifying, a Fund might fail to satisfy
the
income requirement. In lieu of disqualification, the Funds are permitted to pay a tax for certain failures to satisfy the asset diversification
or income requirements, which, in general, are limited to those due to reasonable cause and not willful neglect. The Funds intend to limit
their investments in their respective Subsidiary to no more than 25% of the value of each Fund’s total assets in order to satisfy
the asset diversification requirement.
Funds
Investing in Foreign Currencies
◾
The
Funds may realize gains from the sale or other disposition of foreign currencies (including but not limited to gains from options, futures
or forward contracts) derived from investing in securities or foreign currencies. The U.S. Treasury Department is authorized to issue
regulations on whether the realization of such foreign currency gains is qualified income for the Funds. If such regulations are issued,
each Fund may not qualify as a RIC and/or the Fund may change its investment policy. As of the date of this prospectus, no regulations
have been issued pursuant to this authorization. It is possible, however, that such regulations may be issued in the future. Additionally,
the IRS has not issued any guidance on how to apply the asset diversification test to such foreign currency positions. Thus, the IRS’
determination as to how to treat such foreign currency positions for purposes of satisfying the asset diversification test might differ
from that of each Fund resulting in the Fund’s failure to qualify as a RIC. In lieu of disqualification, each Fund is permitted
to pay a tax for certain failures to satisfy the asset diversification or income requirements, which, in general, are limited to those
due to reasonable cause and not willful neglect.
◾
The
Funds’ transactions in foreign currencies may give rise to ordinary income or loss to the extent such income or loss results from
fluctuations in the value of the foreign currency concerned. This treatment could increase or decrease the Funds' ordinary income distributions
to you, and may cause some or all of the Funds' previously distributed income to be classified as a return of capital. Return of capital
distributions generally are not taxable to you. Your cost basis in your Fund shares will be decreased by the amount of any return of capital.
Any return of capital distributions in excess of your cost basis will be treated as capital gains.
This
discussion of “Taxes” is for general information only and not
tax advice. All investors should consult their own tax advisers as to the federal, state, local and foreign tax provisions applicable
to them.
Taxes
(applicable to the Invesco SteelPath Funds
only)
Although
the Code generally provides that a RIC does not pay an entity-level income tax, provided that it distributes all or substantially all
of its income, the Fund is not and does not anticipate becoming eligible to elect to be treated as a RIC because most or substantially
all of the Fund’s investments will consist of investments in MLP securities. The RIC tax rules therefore have no application to
the Fund or to its shareholders. As a result, the Fund is treated as a regular corporation, or “C” corporation, for U.S. federal
income tax purposes, and generally is subject to U.S. federal income tax on its taxable income at the corporate income tax rate. In addition,
as a regular corporation, the Fund will be subject to state and local taxes by reason of its tax status and its investments in MLPs. Therefore,
the Fund may have to pay federal, multiple state, and local taxes, which would reduce the Fund’s cash available to make distributions
to shareholders. An estimate for federal, state, and local tax liabilities will reduce the fund’s net asset value. The extent to
which the Fund is required to pay U.S. federal, state or local corporate income, franchise or other corporate taxes could materially reduce
the Fund’s cash available to make distributions to shareholders. In addition, investors in taxable accounts should be aware of the
following basic tax points as supplemented below where relevant:
Fund
Tax Basics
◾
The
Fund intends to invest a significant portion of its assets in MLPs, which are generally treated as partnerships for U.S. federal income
tax purposes. To the extent that the Fund invests in equity securities of an MLP, the Fund will be a partner in such MLP. Accordingly,
the Fund will be
A-23 The
Invesco Funds
required
to take into account the Fund’s allocable share of the income, gains, losses, deductions, and credits recognized by each such MLP,
regardless of whether the MLP distributes cash to the Fund. MLP distributions to partners, such as the Fund, are not taxable unless the
cash amount (or in certain cases, the fair market value of marketable securities) distributed exceeds the Fund’s basis in its MLP
interest. The Fund expects that the cash distributions it will receive with respect to its investments in equity securities of MLPs will
exceed the net taxable income allocated to the Fund from such MLPs because of tax deductions such as depreciation, amortization and depletion
that will be allocated to the Fund from the MLPs. No assurance, however, can be given in this regard. If this expectation is not realized,
the Fund will have a larger corporate income tax expense than expected, which will result in less cash available for distribution to shareholders.
◾
The
Fund will recognize gain or loss on the sale, exchange or other taxable disposition of its portfolio assets, including equity securities
of MLPs, equal to the difference between the amount realized by the Fund on the sale, exchange or other taxable disposition and the Fund’s
adjusted tax basis in such assets. Any such gain will be subject to U.S. federal income tax at the corporate income tax rate, regardless
of how long the Fund has held such assets since preferential capital gain rates do not apply to regular corporations such as the Fund.
The amount realized by the Fund in any case generally will be the amount paid by the purchaser of the assets plus, in the case of MLP
equity securities, the Fund’s allocable share, if any, of the MLP’s debt that will be allocated to the purchaser as a result
of the sale, exchange or other taxable disposition. The Fund’s tax basis in its equity securities in an MLP generally is equal to
the amount the Fund paid for the equity securities, (i) increased by the Fund’s allocable share of the MLP’s net taxable income
and certain MLP debt, if any, and (ii) decreased by the Fund’s allocable share of the MLP’s net losses and any distributions
received by the Fund from the MLP. Although any distribution by an MLP to the Fund in excess of the Fund’s allocable share of such
MLP’s net taxable income may create a temporary economic benefit to the Fund, net of a deferred tax liability, such distribution
will decrease the Fund’s tax basis in its MLP investment and will therefore increase the amount of gain (or decrease the amount
of loss) that will be recognized on the sale of an equity security in the MLP by the Fund. To the extent that the Fund has a net capital
loss in any year, the net capital loss can be carried back three taxable years and forward five taxable years to reduce the Fund’s
capital gains in such years. In the event a capital loss carryover cannot be utilized in the carryover periods, the Fund’s federal
income tax liability may be higher than expected, which will result in less cash available to distribute to shareholders.
◾
Distributions
by the Fund of cash or property in respect of the shares (other than certain distributions in redemption of shares) will be treated as
dividends for U.S. federal income tax purposes to the extent paid from the Fund’s current or accumulated earnings and profits (as
determined under U.S. federal income tax principles). Generally, the Fund’s earnings and profits are computed based upon the Fund’s
taxable income (loss), with certain specified adjustments. Any such dividend likely will be eligible for the dividends-received deduction
if received by an otherwise qualifying corporate U.S. shareholder that meets certain holding period and other requirements for the dividends-received
deduction. Dividends paid by the Fund to certain non-corporate U.S. shareholders (including individuals), generally are eligible for U.S.
federal income taxation at the rates generally applicable to long-term capital gains for individuals provided that the U.S. shareholder
receiving the dividend satisfies applicable holding period and other requirements. Otherwise, dividends paid by the Fund to non-corporate
U.S. Shareholders (including individuals) will be taxable at ordinary income rates.
◾
If
the amount of a Fund distribution exceeds the Fund’s current and accumulated earnings and profits, such excess will be treated first
as a tax-deferred return of capital to the extent of, and in reduction of, a shareholder’s tax basis in the shares, and thereafter
as capital gain to the extent the shareholder held the shares as a capital asset. Any such capital gain will be long-term capital gain
if such shareholder has held the applicable shares for more than one year. The portion of the distribution
received
by a shareholder from the Fund that is treated as a return of capital will decrease the shareholder’s tax basis in his or her Fund
shares (but not below zero), which will result in an increase in the amount of gain (or decrease in the amount of loss) that will be recognized
by the shareholder for tax purposes on the later sale of such Fund shares.
◾
The
Fund anticipates that the cash distributions it will receive with respect to its investments in equity securities of MLPs and which it
will distribute to its shareholders will exceed the Fund’s current and accumulated earnings and profits. Accordingly, the Fund expects
that only a part of its distributions to shareholders with respect to the shares will be treated as dividends for U.S. federal income
tax purposes. No assurance, however, can be given in this regard.
◾
Special
rules may apply to the calculation of the Fund’s earnings and profits. For example, the Fund’s earnings and profits will be
calculated using the straight-line depreciation method rather than the accelerated depreciation method. This difference in treatment may,
for example, result in the Fund’s earnings and profits being higher than the Fund’s taxable income or loss in a particular
year if the MLPs in which the Fund invests calculate their income using accelerated depreciation. Because of these special earnings profits
rules, the Fund may make distributions in a particular year out of earnings and profits (treated as dividends) in excess of the amount
of the Fund’s taxable income or loss for such year, which means that a larger percentage of the Fund ’s distributions could
be taxable to shareholders as ordinary income instead of tax-deferred return of capital or capital gain.
◾
Shareholders
that receive distributions in shares rather than in cash will be treated for U.S. federal income tax purposes as having (i) received a
cash distribution equal to the fair market value of the shares received and (ii) reinvested such amount in shares.
◾
A
redemption of shares will be treated as a sale or exchange of such shares, provided the redemption is not essentially equivalent to a
dividend, is a substantially disproportionate redemption, is a complete redemption of a shareholder’s entire interest in the Fund,
or is in partial liquidation of such Fund. Redemptions that do not qualify for sale or exchange treatment will be treated as distributions
as described above. Upon a redemption treated as a sale or exchange under these rules, a shareholder generally will recognize capital
gain or loss equal to the difference between the adjusted tax basis of his or her shares and the amount received when they are sold.
◾
If
the Fund is required to sell portfolio securities to meet redemption requests, the Fund may recognize income and gains for U.S. federal,
state and local income and other tax purposes, which may result in the imposition of corporate income or other taxes on the Fund and may
increase the Fund’s current and accumulated earnings and profits, which will result in a greater portion of distributions to Fund
shareholders being treated as dividends. Any long-term or short-term capital gains realized on sale or redemption of your Fund shares
will be subject to federal income tax. For tax purposes an exchange of your shares for shares of another Fund is the same as a sale. An
exchange occurs when the purchase of shares of a Fund is made using the proceeds from a redemption of shares of another Fund and is effectuated
on the same day as the redemption. Your gain or loss is calculated by subtracting from the gross proceeds your cost basis. Gross proceeds
and, for shares acquired on or after January 1, 2012 and disposed of after that date, cost basis will be reported to you and the IRS.
Cost basis will be calculated using the Fund’s default method of first-in, first-out (FIFO), unless you instruct the Fund to use
a different calculation method. Shareholders should carefully review the cost basis information provided by a Fund and make any additional
basis, holding period or other adjustments that are required when reporting these amounts on their federal income tax returns. If you
hold your Fund shares through a broker (or other nominee), please contact that broker (nominee) with respect to reporting of cost basis
and available elections for your account. For more information about the cost basis methods offered by Invesco, please refer to the Tax
Center located under the Account Access & Forms menu of our website at www.invesco.com/us.
A-24 The
Invesco Funds
◾
The
conversion of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes
and no gain or loss will be reported on the transaction. This is true whether the conversion occurs automatically pursuant to the terms
of the class or is initiated by the shareholder.
◾
At
the time you purchase your Fund shares, the Fund’s net asset value may reflect undistributed income. A subsequent distribution to
you of such amounts, although constituting a return of your investment, would be taxable. Buying shares in a Fund just before it declares
an income dividend is sometimes known as “buying a dividend.” In addition, a Fund’s net asset value may, at any time,
reflect net unrealized appreciation, which may result in future taxable distributions to you.
◾
By
law, if you do not provide a Fund with your proper taxpayer identification number and certain required certifications, you may be subject
to backup withholding on any distributions of income, capital gains, or proceeds from the sale of your shares. A Fund also must withhold
if the IRS instructs it to do so. When withholding is required, the amount will be 24% of any distributions or proceeds paid.
◾
A
3.8% Medicare tax is imposed on certain net investment income (including ordinary dividends received from a Fund and net gains from redemptions
or other taxable dispositions of Fund shares) of U.S. individuals, estates and trusts to the extent that such person’s “modified
adjusted gross income” (in the case of an individual) or “adjusted gross income” (in the case of an estate or trust)
exceeds a threshold amount. This Medicare tax, if applicable, is reported by you on, and paid with, your federal income tax return.
◾
Fund
distributions and gains from sale or exchange of your Fund shares generally are subject to state and local income taxes.
◾
Foreign
investors should be aware that U.S. withholding, special certification requirements to avoid U.S. backup withholding and claim any treaty
benefits, and estate taxes may apply to an investment in a Fund.
◾
Under
the Foreign Account Tax Compliance Act (FATCA), a Fund will be required to withhold a 30% tax on income dividends made by the Fund to
certain foreign entities, referred to as foreign financial institutions or non-financial foreign entities, that fail to comply (or be
deemed compliant) with extensive reporting and withholding requirements designed to inform the U.S. Department of the Treasury of U.S.-owned
foreign investment accounts. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide otherwise (which
is not expected). A Fund may disclose the information that it receives from its shareholders to the IRS, non-U.S. taxing authorities or
other parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that is a shareholder
of a Fund fails to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.
◾
Taxes,
penalties, and interest associated with an audit of a partnership are generally required to be assessed and collected at the partnership
level. Therefore, an adverse federal income tax audit of an MLP taxed as a partnership that the Fund invests in could result in the Fund
being required to pay federal income tax. The Fund may have little input in any audit asserted against an MLP and may be contractually
or legally obligated to make payments in regard to deficiencies asserted without the ability to put forward an independent defense. Accordingly,
even if an MLP in which the Fund invests were to remain classified as a partnership, it could be required to pay additional taxes, interest
and penalties as a result of an audit adjustment, and the Fund, as a direct or indirect partner of such MLP, could be required to bear
the economic burden of those taxes, interest and penalties, which would reduce the value of Fund shares.
◾
Under
the Tax Cuts and Jobs Act certain “qualified publicly traded partnership income” (e.g., certain income from certain of the
MLPs in which the Fund invests) is treated as eligible for a 20% deduction by noncorporate taxpayers. The Tax Cuts and Jobs Act does not
contain a provision permitting an entity, such as the Fund, to benefit from this
deduction
(since the Fund is taxed as a “C” corporation) or pass the special character of this income through to its shareholders. Qualified
publicly traded partnership income allocated to a noncorporate investor investing directly in an MLP might, however, be eligible for the
deduction.
The
above discussion concerning the taxability of Fund dividends and distributions
and of redemptions and exchanges of Fund shares is inapplicable to investors holding shares through a tax-advantaged arrangement, such
as Retirement and Benefit Plans or 529 college savings plans. Such investors should refer to the applicable account documents/program
description for that arrangement for more information regarding the tax consequences of holding and redeeming Fund shares.
This
discussion of “Taxes” is for general information only and not
tax advice. All investors should consult their own tax advisers as to the federal, state, local and foreign tax provisions applicable
to them.
Federal
Income Taxes (applicable to Invesco Master Loan Fund only)
United
States Taxes
The
Fund is classified as a partnership and will not be a regulated investment company for US federal income tax purposes. As a partnership,
the Fund is not a taxable entity for federal income tax purposes and, subject to the application of the partnership audit rules described
below, incurs no federal income tax liability. Each Investor is required to take into account its proportionate share of items of income,
gain, loss and deduction of the partnership in computing its federal income tax liability regardless of whether or not cash or property
distributions are then made by the Fund. Following the close of the Fund’s taxable year end, Investors will receive a tax statement
entitled Schedule K-1 Partner’s Share of Income, Deductions, Credits, etc., which reports the tax status of their distributive share
of the Fund’s items for the previous year.
Taxation
of Distributions, Sales and Exchanges
In
general, distributions of money by the Fund to an Investor will represent a non-taxable return of capital up to the amount of an Investor’s
adjusted tax basis in its shares. An Investor will recognize gain to the extent that any money distributed by the Fund exceeds the Investor’s
adjusted tax basis in its shares. In the case of a non-taxable return of capital by the Fund to an Investor, other than in liquidation
of the Investor’s interest in the Fund, the tax basis of his shares will be reduced (but not below zero) and will result in an increase
in the amount of gain (or decrease in the amount of loss) that will be recognized by the Investor on the later sale of its shares. A distribution
in partial or complete redemption of your shares in the Fund is taxable as a sale or exchange only to the extent the amount of money received
exceeds the tax basis of your entire interest in the Fund. Any loss may be recognized only if you redeem your entire interest in the Fund
for money.
When
you sell shares of the Fund, you may have a capital gain or loss.
Derivatives
The
use of derivatives by the Fund may cause the Fund to realize higher amounts of ordinary income or short-term capital gain, allocations
of which are taxable to individual Investors at ordinary income tax rates rather than at the more favorable tax rates for long-term capital
gain. Changes in government regulation of derivative instruments could affect the character, timing and amount of the Fund’s taxable
income or gains, and may limit the Fund from using certain types of derivative instruments as part of its investment strategy.
Risk
of Audit of the Fund
Under
the partnership audit rules, which are generally applicable to tax years beginning after December 31, 2017, the Internal Revenue Service
(“IRS”) may collect any taxes resulting from audit adjustments to the Fund’s income tax returns (including any applicable
penalties and interest) directly from the Fund. In that case, current Investors would bear some or all of the
A-25 The
Invesco Funds
tax liability
resulting from such audit adjustment, even if they did not own interests in the Fund during the tax year under audit. The Fund may have
the ability to shift any such tax liability to the Investors in accordance with their interests in the Fund during the year under audit,
but there can be no assurance that the Fund will be able to do so under all circumstances. For taxable years not subject to the new audit
rules, items of Fund income, gain, loss, deduction and credit will be determined at the Fund level in a unified audit. NO REPRESENTATION
OR WARRANTY OF ANY KIND IS MADE WITH RESPECT TO THE TAXATION, DEDUCTIBILITY OR CAPITALIZATION OF ANY ITEM BY THE FUND OR INVESTOR. In
addition, the “partnership representative” (tax matters partner, for taxable years before the partnership audit rules become
effective) will have the sole authority to act on the Fund’s behalf for purposes of, among other things, federal income tax audits
and judicial review of administrative adjustments by the IRS, and any such actions will be binding on the Fund and all of the Investors.
Unrelated
Business Taxable Income
An
allocable share of a tax-exempt Investor’s income will be “unrelated business taxable income” (“UBTI”) to
the extent that the Fund borrows money to acquire property or invests in assets that produce UBTI.
Medicare
Tax
An
additional 3.8% Medicare tax is imposed on certain net investment income of US individuals, estates and trusts to the extent that such
person’s “modified adjusted gross income” (in the case of an individual) or “adjusted gross income” (in
the case of an estate or trust) exceeds a threshold amount. “Net investment income,” for these purposes, means investment
income (including (i) net gains from the taxable disposition of shares of a Fund to the extent the net gain would be taken into account
by the Investor if the Fund sold all of its property for fair market value immediately before the disposition of the shares of the Fund,
and (ii) an allocable share of a Fund’s interest, dividends and net gains) reduced by the deductions properly allocable to such
income. This Medicare tax, if applicable, is reported by Investors on, and paid with, the Investor’s federal income tax return.
State,
Local and Non-US Tax Matters
An
Investor’s distributive share of the Fund’s income, and gains from the sale or exchange of an Investor’s Fund shares,
generally are subject to state and local taxes in the jurisdiction in which the Investor resides or is otherwise subject to tax.
Prospective
investors should consider their individual state and local tax consequences
of an investment in the Fund.
Tax
Considerations for Non-US Investors
If,
as anticipated, the Fund is not deemed to be engaged in a US trade or business, the Fund generally will be required to withhold tax on
the distributive share of certain items of gross income from US sources allocated to non-US Investors at a 30% (or lower treaty) rate.
Certain categories of income, including portfolio interest, are not subject to US withholding tax. Capital gains (other than gain realized
on disposition of US real property interests) are not subject to US withholding tax unless the non-US Investor is a nonresident alien
individual present in the United States for a period or periods aggregating 183 days or more during the taxable year. If, on the other
hand, the Fund derives income which is effectively connected with a US trade or business carried on by the Fund, this 30% tax will not
apply to such effectively connected income of the Fund, and the Fund generally will be required to withhold tax from the amount of effectively
connected income allocable to non-US Investors at the highest rate of tax applicable to US residents, and non-US Investors generally would
be required to file US income tax returns and be subject to US income tax on a net basis. Gain or loss on a sale of shares will be treated
as effectively connected with a U.S. trade or business to the extent that a foreign corporation or foreign individual that owns the shares
(whether directly or indirectly through other partnerships) would have had effectively connected gain or loss had the partnership sold
its underlying assets and applicable US
withholding
tax will apply. Non-US Investors may be subject to US estate tax and are subject to special US tax certification requirements.
Other
Reporting and Withholding Requirements
Under
the Foreign Account Tax Compliance Act (“FATCA”), the Fund will be required to withhold at a 30% rate on certain US source
payments (such as interest and dividends) to certain Investors if the Investor fails to provide the Fund with the information which identifies
its direct and indirect US ownership. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide otherwise (which
is not expected). A Fund may disclose the information that it receives from an Investor to the IRS, non-US taxing authorities or other
parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that is an Investor fails
to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.
For
a more complete discussion of the federal income tax consequences
of investing in the Fund, see the Statement of Additional Information.
This
discussion of “Federal Income Taxes” is not intended or written
to be used as tax advice. Because everyone’s tax situation is unique, Investors should consult their tax professional about federal,
state, local and foreign tax consequences before making an investment in the Fund.
Payments
to Financial Intermediaries – All Share Classes except Class R6 shares
The
financial adviser or intermediary through which you purchase your shares may receive all or a portion of the sales charges and distribution
fees discussed above. In addition to those payments, Invesco Distributors and other Invesco Affiliates, may make additional cash payments
to financial intermediaries in connection with the promotion and sale of shares of the Funds. These additional cash payments may include
cash payments and other payments for certain marketing and support services. Invesco Affiliates make these payments from their own resources,
from Invesco Distributors’ retention of initial sales charges and from payments to Invesco Distributors made by the Funds under
their 12b-1 plans. In the context of this prospectus, “financial intermediaries” include any broker, dealer, bank (including
bank trust departments), registered investment adviser, financial planner, retirement plan administrator, insurance company and any other
financial intermediary having a selling, administration or similar agreement with Invesco Affiliates.
The
benefits Invesco Affiliates receive when they make these payments include,
among other things, placing the Funds on the financial intermediary’s fund sales system, and access (in some cases on a preferential
basis over other competitors) to individual members of the financial intermediary’s sales force or to the financial intermediary’s
management. These payments are sometimes referred to as “shelf space” payments because the payments compensate the financial
intermediary for including the Funds in its fund sales system (on its “sales shelf”). Invesco Affiliates compensate financial
intermediaries differently depending typically on the level and/or type of considerations provided by the financial intermediary. The
payments Invesco Affiliates make may be calculated based on sales of shares of the Funds (Sales-Based Payments), in which case the total
amount of such payments shall not exceed 0.25% (0.10% for Class R5 shares) of the public offering price of all shares sold by the financial
intermediary during the particular period. Payments may also be calculated based on the average daily net assets of the applicable Funds
attributable to that particular financial intermediary (Asset-Based Payments), in which case the total amount of such cash payments shall
not exceed 0.25% per annum of those assets during a defined period. Sales-Based Payments primarily create incentives to make new sales
of shares of the Funds and Asset-Based Payments primarily create incentives to retain previously sold shares of the Funds in investor
accounts. Invesco Affiliates
A-26 The
Invesco Funds
may pay a financial
intermediary either or both Sales-Based Payments and Asset-Based Payments.
Invesco
Affiliates are motivated to make these payments as they promote
the sale of Fund shares and the retention of those investments by clients of the financial intermediaries. To the extent financial intermediaries
sell more shares of the Funds or retain shares of the Funds in their clients’ accounts, Invesco Affiliates benefit from the incremental
management and other fees paid to Invesco Affiliates by the Funds with respect to those assets.
The
Funds’ transfer agent may make payments to certain financial intermediaries
for certain administrative services, including record keeping and sub-accounting of shareholder accounts pursuant to a sub-transfer agency,
omnibus account service or sub-accounting agreement. All fees payable by Invesco Affiliates under this category of services are charged
back to the Funds, subject to certain limitations approved by the Board.
You
can find further details in the Fund’s SAI about these payments and the
services provided by financial intermediaries. In certain cases these payments could be significant to the financial intermediaries. Your
financial adviser may charge you additional fees or commissions other than those disclosed in this prospectus. You can ask your financial
adviser about any payments it receives from Invesco Affiliates or the Funds, as well as about fees and/or commissions it charges.
Important
Notice Regarding Delivery of Security Holder Documents
To
reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address
(Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not
want the mailing of these documents to be combined with those for other members of your household, please contact the Funds’ transfer
agent at 800-959-4246 or contact your financial institution. The Funds’ transfer agent will begin sending you individual copies
for each account within thirty days after receiving your request.
A-27 The
Invesco Funds
Obtaining Additional Information
More information
may be obtained free of charge upon request. The SAI, a current version of which is on file with the SEC, contains more details about
the Fund and is incorporated by reference into this prospectus (is legally a part of this prospectus). Annual and semi-annual reports
to shareholders contain additional information about the Fund’s investments. The Fund’s annual report also discusses the market
conditions and investment strategies that significantly affected the Fund’s performance during its last fiscal year. The Fund also
files its complete schedule of portfolio holdings with the SEC for the 1st and 3rd quarters of each fiscal year as an exhibit to its reports
on Form N-PORT.
If
you have questions about an Invesco Fund or your account, or you wish to obtain a free copy of the Fund’s current SAI, annual or
semi-annual reports or Form N-PORT, please contact us.
|
By
Mail: |
Invesco
Investment Services, Inc.
P.O.
Box 219078
Kansas
City, MO 64121-9078 |
|
By
Telephone: |
(800)
959-4246 |
|
On
the Internet: |
You
can send us a request by e-mail or
download
prospectuses, SAIs, annual or
semi-annual
reports via our website:
www.invesco.com/us
|
Reports
and other information about the Fund are available on the EDGAR Database on the SEC's Internet site at http://www.sec.gov, and copies
of this information may be obtained, after paying a duplicating fee, by electronic request at the following e-mail address: publicinfo@sec.gov.
|
Invesco
Equity and Income Fund
SEC 1940 Act file
number: 811-09913 |
|
invesco.com/us
|
VK-EQI-PRO-1
|
Prospectus
December
16,
2022
Class:
A (AFRAX ), C (AFRCX ),
R (AFRRX ), Y (AFRYX ),
R5 (AFRIX ), R6 (AFRFX )
Invesco
Floating Rate ESG 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.
Table of Contents
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6
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13
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13
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15
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17
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A-1
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A-1
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A-2
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A-3
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A-3
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A-10
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A-11
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A-13
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A-15
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A-17
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A-17
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A-18
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A-21
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A-23
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A-25
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A-26
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A-27
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Back
Cover |
Invesco
Floating Rate ESG Fund
The
Fund’s investment objective is total return, comprised of current income and 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 $100,000
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
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|
Maximum
Sales Charge (Load) Imposed on
Purchases
(as a percentage of offering price) |
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Maximum
Deferred Sales Charge (Load) (as a
percentage
of original purchase price or
redemption
proceeds, whichever is less) |
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Class:
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A
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C
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R
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Y
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R5
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R6
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Management
Fees |
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Distribution
and/or Service (12b-1) Fees |
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Other
Expenses |
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Interest
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Total
Other Expenses |
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Acquired
Fund Fees and Expenses |
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Total
Annual Fund Operating Expenses |
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Fee
Waiver and/or Expense Reimbursement2
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Total
Annual Fund Operating Expenses After Fee
Waiver
and/or Expense Reimbursement |
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1
2
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 equal to the Total Annual Fund Operating Expenses After Fee
Waiver and/or Expense Reimbursement in the first year and the Total Annual Fund Operating Expenses thereafter.
Although
your actual costs may be higher or lower, based on these assumptions,
your costs would be:
|
|
1
Year |
3
Years |
5
Years |
10
Years |
|
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 senior secured
floating rate loans made by banks and other lending institutions, senior secured floating rate debt instruments, and derivatives and other
instruments that have economic characteristics similar to such securities. The Fund’s portfolio managers select the Fund’s
portfolio investments by actively employing environmental, social and governance (ESG) criteria in the investment selection process described
below, except as otherwise indicated.
Floating
rate loans (also known as bank loans) are made to or issued by companies
(borrowers), which may include U.S. and non-U.S. companies, and bear interest at a floating rate that resets periodically based on a benchmark
that reflects current interest rates. Secured floating rate loans are often issued in connection with recapitalizations, acquisitions,
leveraged buyouts and refinancings. Floating rate loans are typically structured and administered by a financial institution that acts
as agent for the lenders in the lending group.
Floating
rate loans will generally be purchased from banks or other financial
institutions through assignments or participations. A direct interest in a floating rate loan may be acquired directly from the agent
or another lender by assignment or an indirect interest may be acquired as a participation in another lender’s portion of a floating
rate loan.
The
Fund may invest up to 100% of its net assets in floating rate loans and
floating rate debt securities that are determined to be below investment grade. Such floating rate debt securities are commonly referred
to as “junk bonds”. Investment grade securities are: (i) securities rated BBB- or higher by S&P Global Ratings (S&P)
or Baa3 or higher by Moody’s Investors Service, Inc. (Moody’s) or an equivalent rating by another nationally recognized statistical
rating organization (NRSRO), (ii) securities with comparable short-term NRSRO ratings, or (iii) unrated securities determined
1 Invesco
Floating Rate ESG Fund
by Invesco
Advisers, Inc. (Invesco or the Adviser) to be of comparable quality, each at the time of purchase. The Fund may invest in defaulted or
distressed loans and loans to bankrupt companies.
The
Fund may invest up to 100% of its net assets in floating rate loans and
floating rate debt securities of non-U.S. borrowers or issuers.
The
Fund may invest in collateralized loan obligations (CLOs), which are debt
instruments backed solely by a pool of other debt securities. CLOs where the CLO securities held by the Fund are in the senior classes
with a floating rate of return will be counted toward the Fund’s 80% investment policy described above and are subject to application
of the portfolio managers’ ESG criteria with respect to CLOs, as described below.
The
Fund can invest up to 20% of its total assets in certain other types of
debt obligations or securities and equity securities (including common stocks, preferred stocks, rights, warrants, and securities convertible
into common stock), both to increase yield and to manage cash flow. Other types of debt obligations and securities may include unsecured
loans, fixed rate high yield bonds, investment grade corporate bonds, and short-term government and commercial debt obligations. The Fund
may also invest in CLO securities that are in the subordinated debt tranches of a CLO. Up to 5% of the Fund’s net assets may be
invested in subordinated loans. Some of the floating rate loans and debt securities in which the Fund may invest will be considered to
be illiquid.
The
Fund can invest in derivative instruments including forward foreign currency
contracts, futures contracts and swap contracts. The Fund can engage in foreign currency transactions either on a spot basis (i.e. for
prompt delivery and settlement at the rate prevailing in the currency exchange market at the time) or through forward foreign currency
contracts to hedge against adverse movements in the foreign currencies in which portfolio securities are denominated. The Fund can use
currency futures to hedge its exposure to foreign currencies. The Fund can use swap contracts, including interest rate swaps, to hedge
or adjust its exposure to interest rates, and can use currency swaps to hedge its exposure to foreign currencies. The Fund can also use
swap contracts, including credit default swaps, and can invest in credit linked notes, to gain or reduce exposure to an asset class or
a particular issuer.
The
portfolio managers’ ESG criteria will apply to derivatives and other instruments
that have economic characteristics similar to senior secured floating rate loans made by banks and other lending institutions and senior
secured floating rate debt instruments as reflected in the Fund’s 80% investment policy. However, the Adviser’s ESG criteria
will not apply to the Fund’s investments in derivatives for currency hedging purposes.
The
Fund invests in loans and debt securities selected by the Fund’s portfolio
managers based on a fundamental bottom-up risk assessment of each issuer and issue, combined with a top-down macro and sector overlay.
The portfolio managers construct the Fund’s portfolio using a process that focuses on obtaining access to the widest possible range
of potential investments available in the market and ongoing credit analysis of issuers. The portfolio managers perform their own independent
credit analysis on each borrower and the collateral securing each loan, considering the nature of the industry in which the borrower operates,
the nature of the borrower’s assets and the general quality and creditworthiness of the borrower.
For
each investment opportunity, the portfolio managers undertake a comprehensive
due diligence review of the issuer, including in-depth meetings with the issuer’s management team, the financial sponsor (if applicable),
and the industry in which the issuer competes, as well as engages in discussions with third party industry experts to assess credit risk
and gain a detailed understanding of the company and the industry. The portfolio managers’ due diligence looks at detailed cash
flow models, credit and relative value comparable company analyses, and structural terms of the loan. The portfolio managers also analyze
each company to determine its earnings potential and other factors indicating the sustainability of debt repayment. The analysis concludes
with an investment thesis and recommendation that includes an internal risk rating derived from the
portfolio
managers’ view of the issuer’s probability of default and estimated recovery ratings.
Additionally,
as part of the credit selection and portfolio construction process,
the Fund employs a proprietary framework for evaluating each issuer based on ESG criteria the portfolio managers have determined to be
important in the investment selection process. The Fund’s ESG methodology actively utilizes both proprietary ESG scoring and ESG
exclusionary screening to construct the Fund’s portfolio. The portfolio managers apply their ESG criteria in an effort to assess
an issuer’s impact of business operations on the environment, the social impact its business has on internal and external communities,
and the quality of its corporate governance principles.
Under
normal market conditions, the portfolio managers will employ the following
ESG methodology to assess investment opportunities for the Fund’s portfolio (except with respect to CLOs, which employ a different
ESG methodology described below): The portfolio managers first employ a proprietary ESG screen to exclude issuers from the investment
universe of securities in which the Fund may invest that do not meet its investment criteria. Such excluded issuers are those with substantial
involvement in the production of tobacco products, controversial weapons, engagement in cultivation, production or distribution of recreational
cannabis, extraction of thermal coal, and extraction of fossil fuels from unconventional sources. Issuers involved in the generation of
electricity above 30% from coal-fired plants are also excluded. Issuers will also be excluded based on their non-compliance with UN Global
Compact principles. The principles of the UN Global Compact represent a set of values that the UN believes responsible businesses should
incorporate into their operations in order to meet fundamental responsibilities in the areas of human rights, labor, environment and anti-corruption.
To the extent an issuer’s status changes to meet the qualification for exclusion, the Fund shall take steps to divest its holdings
of the issuer within a reasonable period of time. Because the Fund's divestment of such investments may not be immediate, the Fund could
be invested in investments that do meet the qualification for exclusion. This screening criteria may be updated periodically.
Next,
based on research and due diligence reviews conducted with the management
teams of the eligible issuers, each investment opportunity is scored by the portfolio management team on a scale of 1-5 for risks related
to multiple ESG factors under each individual pillar of the ESG framework (1 indicates “no risk” and 5 indicates “high
risk”). The environmental pillar (“E”) factors include natural resources, pollution and waste, supply chain impact,
and environmental opportunities. The social pillar (“S”) factors include workforce, community, product responsibility, and
human rights. The governance pillar (“G”) factors include management, shareholders, board of directors, auditors, regulatory
issuers, corporate social responsibility strategy, anti-corruption, and business ethics. The foregoing factors in each ESG pillar may
be updated periodically.
Each
investment opportunity is assigned a weighted average score for each
ESG pillar. An overall aggregated, or composite, ESG score is also calculated, with pillars weighted differently depending on the industry.
The scores are determined at the time of purchase and reviewed at least annually. The Fund will not invest in loans or securities from
issuers that have a composite ESG rating or single category E, S, or G pillar rating above levels set within the internal ESG rating methodology,
and will seek to divest within a reasonable period of time from investments for which the aggregate ESG rating or single category E, S,
or G ratings rise above these limits, as determined by the portfolio managers’ internal rating methodology. Because the Fund's divestment
of such investments may not be immediate, the Fund could be invested in investments that do meet the qualification for exclusion. Under
normal circumstances, pursuant to its current internal limits, the Fund will only invest in loans from issuers with a single category
E, S or G pillar score of 4.25 and under and will also only invest in loans from issuers with a composite ESG score of 4.0 and under.
With
regard to the application of the Fund’s ESG methodology to CLOs, the
portfolio managers will utilize a proprietary approach in selecting CLOs
2 Invesco
Floating Rate ESG Fund
for investment.
The portfolio managers will assess via their due diligence process how a CLO manager incorporates ESG considerations into its asset selection
process. The portfolio managers examine and assess the following ESG considerations with respect to the CLO manager: the existence of
an ESG practice that definitively includes/excludes borrowers as eligible investments; the number of the CLO’s investments that
must be ESG-rated prior to becoming an eligible investment; the extent to which the ESG ratings process results in a quantitative evaluation;
the existence of an exclusionary/screening policy that prohibits investments in certain companies based on ESG considerations; the extent
to which formal control procedures are in place to ensure consistency and compliance with ESG policies; the frequency with which ESG ratings
are evaluated; and the extent to which the CLO manager is a signatory to UN-backed principles of responsible investment. Based on those
considerations, the portfolio managers assign quantitative factor ratings to each CLO manager in order to assess how that manager evaluates
the different E, S and G risks within their portfolio and determine a cumulative CLO manager ESG score. Only CLO managers whose ESG practices
meet the Fund’s internal ESG standards based on the above considerations and quantitative factor ratings will become an eligible
CLO manager. The CLO manager screen will be reviewed and updated at least annually.
Decisions
to purchase or sell loans and other investments are determined
by the relative value considerations of the portfolio managers that factor in economic and credit-related fundamentals, market supply
and demand, market dislocations, situation-specific opportunities and application of the Fund’s ESG criteria. The purchase or sale
of loans and other investments may be related to a decision to alter the Fund’s macro risk exposure, a desire to limit or reduce
the Fund’s exposure to a particular security or issuer, the degradation of an issuer’s credit quality, an ESG screen or score,
or the general liquidity needs of the Fund.
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, natural or environmental disasters, widespread disease or other public health issues, war, military conflict, acts of terrorism
or adverse investor sentiment generally. 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.
Bank
Loan Risk. There are a number of risks associated with an investment
in bank loans including credit risk, interest rate risk, liquidity risk,
valuation risk and prepayment risk. These risks are typically associated
with debt securities but may be heightened in part because of the limited public information regarding bank loans. Lack of an active trading
market, restrictions on resale, irregular trading activity, wide bid/ask spreads and extended trade settlement periods may impair the
Fund’s ability to sell bank loans within its desired time frame or at an acceptable price and its ability to accurately value existing
and prospective investments. Extended trade settlement periods may result in cash not being immediately available to the Fund. As a result,
the Fund may have to sell other investments or engage in borrowing transactions to raise cash to meet its obligations. The risk of
holding
bank loans is also directly tied to the risk of insolvency or bankruptcy of the issuing banks. The value of bank loans can be affected
by and sensitive to changes in government regulation and to economic downturns in the United States and abroad. These risks could cause
the Fund to lose income or principal on a particular investment, which in turn could affect the Fund’s returns.
Bank
loans generally are floating rate loans, which are subject to interest
rate risk as the interest paid on the floating rate loans adjusts periodically based on changes in widely accepted reference rates.
Debt
Securities Risk. The prices of debt securities held by the Fund
will be affected by changes in interest rates, the creditworthiness of the issuer and other factors. An increase in prevailing interest
rates typically causes the value of existing debt securities to fall and often has a greater impact on longer-duration debt securities
and higher quality debt securities. Falling interest rates will cause the Fund to reinvest the proceeds of debt securities that have been
repaid by the issuer at lower interest rates. Falling interest rates may also reduce the Fund’s distributable income because interest
payments on floating rate debt instruments held by the Fund will decline. The Fund could lose money on investments in debt securities
if the issuer or borrower fails to meet its obligations to make interest payments and/or to repay principal in a timely manner. Changes
in an issuer’s financial strength, the market’s perception of such strength or in the credit rating of the issuer or the security
may affect the value of debt securities. The Adviser’s credit analysis may fail to anticipate such changes, which could result in
buying a debt security at an inopportune time or failing to sell a debt security in advance of a price decline or other credit event.
High
Yield Debt Securities (Junk Bond) Risk. Investments in high yield
debt securities (“junk bonds”) and other lower-rated securities will subject the Fund to substantial risk of loss. These securities
are considered to be speculative with respect to the issuer’s ability to pay interest and principal when due, are more susceptible
to default or decline in market value and are less liquid than investment grade debt securities. Prices of high yield debt securities
tend to be very volatile.
Collateralized
Loan Obligations Risk. CLOs are subject to the risks of substantial
losses due to actual defaults by underlying borrowers, which will be greater during periods of economic or financial stress. CLOs may
also lose value due to collateral defaults and disappearance of subordinate tranches, market anticipation of defaults, and investor aversion
to CLO securities as a class. The risks of CLOs will be greater if the Fund invests in CLOs that hold loans of uncreditworthy borrowers
or if the Fund holds subordinate tranches of the CLO that absorb losses from the defaults before senior tranches. In addition, CLOs are
subject to interest rate risk and credit risk.
ESG
Risk. Because the Fund evaluates ESG factors to assess and exclude
certain investments for non-financial reasons, it may forego some market opportunities available to funds that do not use these factors.
The securities of issuers that score favorably under the Fund’s ESG scoring methodology may underperform similar issuers that do
not score as well or may underperform the market as a whole. As a result, the Fund may underperform funds that do not screen or score
issuers based on ESG factors or funds that use a different ESG methodology. Information used by the Fund to evaluate such factors may
not be readily available, complete or accurate, which could negatively impact the Fund’s ability to apply its methodology, which
in turn could negatively impact the Fund’s performance. In addition, the Fund’s assessment of an issuer, based on the issuer’s
level of involvement in a particular industry or the issuer’s ESG score, may differ from that of other funds or an investor. As
a result, the issuers deemed eligible for inclusion in the Fund’s portfolio may not reflect the beliefs or values of any particular
investor and may not be deemed to exhibit positive or favorable ESG characteristics if different metrics were used to evaluate them.
LIBOR
Transition Risk. The Fund may have investments in financial instruments
that utilize the London Interbank Offered Rate (“LIBOR”) as the reference or benchmark rate for variable interest rate calculations.
LIBOR is
3 Invesco
Floating Rate ESG Fund
intended
to measure the rate generally at which banks can lend and borrow from one another in the relevant currency on an unsecured basis. Regulators
and financial industry working groups in several jurisdictions have worked over the past several years to identify alternative reference
rates (“ARRs”) to replace LIBOR and to assist with the transition to the new ARRs. In connection with the transition, on March
5, 2021 the UK Financial Conduct Authority (FCA), the regulator
that oversees LIBOR, announced
that the majority of LIBOR rates would cease to be published or would no longer be representative on January 1, 2022. Consequently,
the publication of most LIBOR rates ceased at the end of 2021,
but a selection of widely used USD LIBOR rates continues to be published until June 2023 to allow for an orderly
transition away from these rates. Additionally,
key regulators have instructed banking institutions to cease
entering into new contracts that reference these USD LIBOR settings
after December 31,
2021,
subject to certain limited exceptions.
There
remains uncertainty and risks relating to the continuing LIBOR transition
and its effects on the Fund and the instruments in which the Fund invests. For example, there can be no assurance that the composition
or characteristics of any ARRs or financial instruments in which the Fund invests that utilize ARRs will be similar to or produce the
same value or economic equivalence as LIBOR or that these instruments will have the same volume or liquidity. Additionally, although regulators
have generally prohibited banking institutions from entering into new contracts that reference those USD LIBOR settings that continue
to exist, there remains uncertainty and risks relating to certain “legacy” USD LIBOR instruments that were issued or entered
into before December 31, 2021 and the process by which a replacement interest rate will be identified and implemented into these instruments
when USD LIBOR is ultimately discontinued. The effects of such uncertainty and risks in “legacy” USD LIBOR instruments held
by the Fund could result in losses to the Fund.
Changing
Fixed Income Market Conditions Risk. Increases
in the federal funds and equivalent foreign rates or other changes to monetary policy or regulatory actions may expose fixed income markets
to heightened volatility and reduced liquidity for certain fixed income investments, particularly those with longer maturities. It is
difficult to predict the impact of interest rate changes on various markets. In addition, decreases in fixed income dealer market-making
capacity may also potentially lead to heightened volatility and reduced liquidity in the fixed income markets. As a result, the value
of the Fund’s investments and share price may decline. Changes in central bank policies could also result in higher than normal
redemptions by shareholders, which could potentially increase the Fund’s portfolio turnover rate and transaction costs.
Defaulted
Securities Risk. Defaulted securities pose a greater risk that
principal will not be repaid than non-defaulted securities. Defaulted securities and any securities received in an exchange for such securities
may be subject to restrictions on resale.
This
risk also applies to investments in loans to bankrupt companies.
Subordinated
Debt Risk. Perpetual subordinated debt is a type of hybrid instrument
that has no maturity date for the return of principal and does not need to be redeemed by the issuer. These investments typically have
lower credit ratings and lower priority than other obligations of an issuer during bankruptcy, presenting a greater risk for nonpayment.
This risk increases as the priority of the obligation becomes lower. Payments on these securities may be subordinated to all existing
and future liabilities and obligations of subsidiaries and associated companies of an issuer. Additionally, some perpetual subordinated
debt does not restrict the ability of an issuer’s subsidiaries to incur further unsecured indebtedness.
Financial
Services Sector Risk. The Fund may be susceptible to adverse economic
or regulatory occurrences affecting the financial services sector. Financial services companies are subject to extensive government regulation
and are disproportionately affected by unstable interest rates, volatility in the financial markets, changes in domestic and foreign monetary
policy, and changes in industry regulations, each of which could adversely affect the profitability of such companies. Financial services
companies may
also have
concentrated portfolios, which makes them especially vulnerable to unstable economic conditions.
Foreign
Securities Risk. The Fund's foreign investments may be adversely
affected by political and social instability, changes in economic or taxation policies, difficulty in enforcing obligations, decreased
liquidity or increased volatility. 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. There may be less public information available about foreign companies than U.S. companies, making it difficult
to evaluate those foreign companies. 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.
Investing
in Stocks Risk. The value of the Fund’s portfolio may be
affected by changes in the stock markets. Stock markets may experience significant short-term volatility and may fall or rise sharply
at times. Adverse events in any part of the equity or fixed-income markets may have unexpected negative effects on other market segments.
Different stock markets may behave differently from each other and U.S. stock markets may move in the opposite direction from one or more
foreign stock markets.
The
prices of individual stocks generally do not all move in the same direction
at the same time. However, individual stock prices tend to go up and down more dramatically than those of certain other types of investments,
such as bonds. A variety of factors can negatively affect the price of a particular company’s stock. These factors may include,
but are not limited to: poor earnings reports, a loss of customers, litigation against the company, general unfavorable performance of
the company’s sector or industry, or changes in government regulations affecting the company or its industry. To the extent that
securities of a particular type are emphasized (for example foreign stocks, stocks of small- or mid-cap companies, growth or value stocks,
or stocks of companies in a particular industry), fund share values may fluctuate more in response to events affecting the market for
those types of securities.
Preferred
Securities Risk. Preferred securities are subject to issuer-specific
and market risks applicable generally to equity securities. Preferred securities also may be subordinated to bonds or other debt instruments,
subjecting them to a greater risk of non-payment, may be less liquid than many other securities, such as common stocks, and generally
offer no voting rights with respect to the issuer.
Rights
and Warrants Risk. Warrants may be significantly less valuable
or worthless on their expiration date and may also be postponed or terminated early, resulting in a partial or total loss. Rights are
similar to warrants, but normally have a short duration and are distributed directly by the issuer to its shareholders. Rights and warrants
have no voting rights, receive no dividends and have no rights with respect to the assets of the issuer. Warrants and rights are highly
volatile and, therefore, more susceptible to sharp declines in value than the underlying security might be. The market for rights or warrants
may be very limited and it may be difficult to sell them promptly at an acceptable price.
Convertible
Securities Risk. The market values of convertible securities are
affected by market interest rates, the risk of actual issuer default on interest or principal payments and the value of the underlying
common stock into which the convertible security may be converted. Additionally, a convertible security is subject to the same types of
market and issuer risks that apply to the underlying common stock. In addition, certain convertible
4 Invesco
Floating Rate ESG Fund
securities
are subject to involuntary conversions and may undergo principal write-downs upon the occurrence of certain triggering events, and, as
a result, are subject to an increased risk of loss. Convertible securities may be rated below investment grade, which are considered to
have more speculative characteristics and greater susceptibility to default or decline in market value than investment grade securities.
Warrants,
Equity Securities and Junior Debt Securities of the Borrower Risk.
Warrants, equity securities and junior debt securities have a subordinate claim on a Borrower’s assets as compared with Senior Loans.
As a result, the values of warrants, equity securities and junior debt securities generally are more dependent on the financial condition
of the Borrower and less dependent on fluctuations in interest rates than are the values of many debt securities. The values of warrants,
equity securities and junior debt securities may be more volatile than those of Senior Loans and thus may increase the volatility of the
Fund’s net asset value. Additionally, warrants may be significantly less valuable on their relevant expiration date resulting in
a loss of money or they may expire worthless resulting in a total loss of the investment. Warrants may also be postponed or terminated
early resulting in a partial or total loss of the investment. Warrants may also be illiquid.
Derivatives
Risk. The value of a derivative instrument depends largely on (and
is derived from) the value of an underlying security, currency, commodity, interest rate, index or other asset (each referred to as an
underlying asset). In addition to risks relating to the underlying assets, the use of derivatives may include other, possibly greater,
risks, including counterparty, leverage and liquidity risks. Counterparty risk is the risk that the counterparty to the derivative contract
will default on its obligation to pay the Fund the amount owed or otherwise perform under the derivative contract. Derivatives create
leverage risk because they do not require payment up front equal to the economic exposure created by holding a position in the derivative.
As a result, an adverse change in the value of the underlying asset could result in the Fund sustaining a loss that is substantially greater
than the amount invested in the derivative or the anticipated value of the underlying asset, which may make the Fund’s returns more
volatile and increase the risk of loss. Derivative instruments may also be less liquid than more traditional investments and the Fund
may be unable to sell or close out its derivative positions at a desirable time or price. This risk may be more acute under adverse market
conditions, during which the Fund may be most in need of liquidating its derivative positions. Derivatives may also be harder to value,
less tax efficient and subject to changing government regulation that could impact the Fund’s ability to use certain derivatives
or their cost. Derivatives strategies may not always be successful. For example, derivatives used for hedging or to gain or limit exposure
to a particular market segment may not provide the expected benefits, particularly during adverse market conditions.
Credit
Linked Notes Risk. Risks of credit linked notes include those risks
associated with the underlying reference obligation including but not limited to market risk, interest rate risk, credit risk, default
risk and, in some cases, foreign currency risk. An investor in a credit linked note bears counterparty risk or the risk that the issuer
of the credit linked note will default or become bankrupt and not make timely payment of principal and interest of the structured security.
Credit linked notes may be less liquid than other investments and therefore harder to dispose of at the desired time and price. In addition,
credit linked notes may be leveraged and, as a result, small changes in the value of the underlying reference obligation may produce disproportionate
losses to the Fund.
Liquidity
Risk. The Fund may be unable to sell illiquid investments at the
time or price it desires and, as a result, could lose its entire investment in such investments. Liquid securities can become illiquid
during periods of market stress. If a significant amount of the Fund’s securities become illiquid, the Fund may not be able to timely
pay redemption proceeds and may need to sell securities at significantly reduced prices.
Borrowing
Risk. Borrowing money to buy securities exposes the Fund to leverage
and will cause the Fund’s share price to be more volatile because
leverage
will exaggerate the effect of any increase or decrease in the value of the Fund’s portfolio securities. Borrowing money may also
require the Fund to liquidate positions when it may not be advantageous to do so. In addition, the Fund will incur interest expenses and
other fees on borrowed money. There can be no assurance that the Fund’s borrowing strategy will enhance and not reduce the Fund’s
returns.
Management
Risk. The Fund is actively managed and depends heavily on the Adviser’s
judgment about markets, interest rates or the attractiveness, relative values, liquidity, or potential appreciation of particular investments
made for the Fund’s portfolio. The Fund could experience losses if these judgments prove to be incorrect. Additionally, legislative,
regulatory, or tax developments may adversely affect management of the Fund and, therefore, the ability of the Fund to achieve its investment
objective.
Fund
performance reflects any applicable fee waivers and expense reimbursements.
Performance returns would be lower without applicable fee waivers and expense reimbursements.
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
|
|
|
|
-
|
|
|
|
|
|
|
|
-
|
5 Invesco
Floating Rate ESG Fund
Average Annual Total Returns (for the periods ended December 31, 2021)
|
|
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 |
|
|
|
|
|
| ||||
|
Bloomberg
U.S. Aggregate Bond Index deduction
for fees, expenses or taxes) |
|
-
|
|
|
|
| ||||
|
Credit
Suisse Leveraged Loan Index (reflects no
deduction
for fees, expenses or taxes) |
|
|
|
|
|
| ||||
|
Lipper
Loan Participation Funds Classification
Average
|
|
|
|
|
|
| ||||
1
Management
of the Fund
Investment
Adviser: Invesco Advisers, Inc.
Investment
Sub-Adviser: Invesco Senior Secured Management, Inc.
|
Portfolio
Managers |
Title
|
Length
of Service on the Fund |
|
Thomas
Ewald |
Portfolio
Manager (lead) |
2006
|
|
| ||
|
Scott
Baskind |
Portfolio
Manager |
2013
|
|
| ||
|
Philip
Yarrow, CFA |
Portfolio
Manager |
2013
|
|
| ||
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, 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 when withdrawn from such plan or account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund, the Fund’s distributor
or its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict
of interest by influencing the broker-dealer or other intermediary and your salesperson or financial adviser to recommend the Fund over
another investment. Ask your salesperson or financial adviser or visit your financial intermediary’s website for more information.
Investment Objective(s), Strategies, Risks and Portfolio Holdings
Objective(s)
and Strategies
The
Fund’s investment objective is total return, comprised of current income and 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 senior secured floating rate loans made by banks and other lending institutions, senior
secured floating rate debt instruments, and derivatives and other instruments that have economic characteristics similar to such securities.
The Fund’s portfolio managers select the Fund’s portfolio investments by actively employing environmental, social and governance
(ESG) criteria in the investment selection process described below, except as otherwise indicated. Shareholders will be provided with
60 days’ notice of any strategy change resulting in consideration of ESG criteria no longer being material to the Fund’s principal
investment strategy.
Floating
rate loans (also known as bank loans) are made to or issued by companies
(borrowers), which may include U.S. and non-U.S. companies, and bear interest at a floating rate that resets periodically based on a benchmark
that reflects current interest rates. Secured floating rate loans are often issued in connection with recapitalizations, acquisitions,
leveraged buyouts and refinancings. Floating rate loans are typically structured and administered by a financial institution that acts
as agent for the lenders in the lending group.
Floating
rate loans will generally be purchased from banks or other financial
institutions through assignments or participations. A direct interest in a floating rate loan may be acquired directly from the agent
or another lender by assignment or an indirect interest may be acquired as a participation in another lender’s portion of a floating
rate loan.
6 Invesco
Floating Rate ESG Fund
The
Fund may invest up to 100% of its net assets in floating rate loans and
floating rate debt securities that are determined to be below investment grade. Such floating rate debt securities are commonly referred
to as “junk bonds”. Investment grade securities are: (i) securities rated BBB- or higher by S&P or Baa3 or higher by Moody’s
or an equivalent rating by another NRSRO, (ii) securities with comparable short-term NRSRO ratings, or (iii) unrated securities determined
by the Adviser to be of comparable quality, each at the time of purchase. The Fund may invest in defaulted or distressed loans and loans
to bankrupt companies.
The
Fund may invest up to 100% of its net assets in floating rate loans and
floating rate debt securities of non-U.S. borrowers or issuers.
The
Fund may invest in collateralized loan obligations (CLOs), which are debt
instruments backed solely by a pool of other debt securities. CLOs where the CLO securities held by the Fund are in the senior classes
with a floating rate of return will be counted toward the Fund’s 80% investment policy described above and are subject to application
of the portfolio managers’ ESG criteria with respect to CLOs, as described below.
The
Fund can invest up to 20% of its total assets in certain other types of
debt obligations or securities and equity securities (including common stocks, preferred stocks, rights, warrants, and securities convertible
into common stock), both to increase yield and to manage cash flow. Other types of debt obligations and securities may include unsecured
loans, fixed rate high yield bonds, investment grade corporate bonds, and short-term government and commercial debt obligations. The Fund
may also invest in CLO securities that are in the subordinated debt tranches of a CLO. Up to 5% of the Fund’s net assets may be
invested in subordinated loans. Some of the floating rate loans and debt securities in which the Fund may invest will be considered to
be illiquid.
The
Fund can invest in derivative instruments including forward foreign currency
contracts, futures contracts and swap contracts. A forward foreign currency contract is an agreement between parties to exchange a specified
amount of currency at a specified future time at a specified rate. The Fund can engage in foreign currency transactions either on a spot
basis (i.e., for prompt delivery and settlement at the rate prevailing in the currency exchange market at the time) or through forward
foreign currency contracts to mitigate the risk of foreign currency exposure. Spot contracts allow for prompt delivery and settlement
at the rate prevailing in the currency exchange market at the time. The Fund can use forward foreign currency contracts to hedge against
adverse movements in the foreign currencies in which portfolio securities are denominated.
A
futures contract is a standardized agreement between two parties to buy
or sell a specified quantity of an underlying asset at a specified price at a specified future time. The value of the futures contract
tends to increase and decrease in tandem with the value of the underlying asset. Futures contracts are bilateral agreements, with both
the purchaser and the seller equally obligated to complete the transaction. Depending on the terms of the particular contract, futures
contracts are settled by purchasing an offsetting contract, physically delivering the underlying asset on the settlement date or paying
a cash settlement amount on the settlement date.
The
Fund can use currency futures to hedge its exposure to foreign currencies.
Currency futures contracts are traded on exchanges and have standard contract sizes and delivery dates. Most currency futures contracts
call for payment or delivery in U.S. dollars.
A
swap contract is an agreement between two parties pursuant to which
the parties exchange payments at specified dates on the basis of a specified notional amount, with the payments calculated by reference
to specified securities, indexes, reference rates, commodities, currencies or other assets. The notional amount of a swap is based on
the nominal or face amount of a reference asset that is used to calculate payments made on that swap; the notional amount typically is
not exchanged between counterparties. The parties to the swap use variations in the value of the underlying asset to calculate payments
between them through the life of the swap. The Fund can use swap contracts, including interest rate swaps, to hedge or adjust its exposure
to interest rates, and can use currency swaps
to hedge
its exposure to foreign currencies. The Fund can also use swap contracts, including credit default swaps, to gain or reduce exposure to
an asset class or a particular issuer.
The
portfolio managers’ ESG criteria will apply to derivatives and other instruments
that have economic characteristics similar to senior secured floating rate loans made by banks and other lending institutions and senior
secured floating rate debt instruments as reflected in the Fund’s 80% investment policy. However, the Adviser’s ESG criteria
will not apply to the Fund’s investments in derivatives for currency hedging purposes.
The
Fund can invest in credit linked notes. Credit linked notes are securities
structured and issued by an issuer, which may be a bank, banker or special purpose vehicle. The credit linked note’s price or coupon
is linked to the performance of the reference asset of the second party. Generally, the credit linked note holder receives either a fixed
or floating coupon rate during the life of the credit linked note and par at maturity. The cash flows are dependent on specified credit-related
events. Should the second party default or declare bankruptcy, the credit linked note holder will receive an amount equivalent to the
recovery rate and may not receive any compensation. In return for these risks, the credit linked note holder receives a higher yield.
The Fund can use credit linked notes to gain or reduce exposure to an asset class or a particular issuer.
The
Fund invests in loans and debt securities selected by the Fund’s portfolio
managers based on a fundamental bottom-up risk assessment of each issuer and issue, combined with a top-down macro and sector overlay.
The portfolio managers construct the Fund’s portfolio using a process that focuses on obtaining access to the widest possible range
of potential investments available in the market and ongoing credit analysis of issuers. The portfolio managers perform their own independent
credit analysis on each borrower and the collateral securing each loan, considering the nature of the industry in which the borrower operates,
the nature of the borrower’s assets and the general quality and creditworthiness of the borrower.
For
each investment opportunity, the portfolio managers undertake a comprehensive
due diligence review of the issuer, including in-depth meetings with the issuer’s management team, the financial sponsor (if applicable),
and the industry in which the issuer competes, as well as engages in discussions with third party industry experts to assess credit risk
and gain a detailed understanding of the company and the industry. The portfolio managers’ due diligence looks at detailed cash
flow models, credit and relative value comparable company analyses, and structural terms of the loan. The portfolio managers also analyze
each company to determine its earnings potential and other factors indicating the sustainability of debt repayment. The analysis concludes
with an investment thesis and recommendation that includes an internal risk rating derived from the portfolio managers’ view of
the issuer’s probability of default and estimated recovery ratings.
Additionally,
as part of the credit selection and portfolio construction process,
the Fund employs a proprietary framework for evaluating each issuer based on ESG criteria the portfolio managers have determined to be
important in the investment selection process. The Fund’s ESG methodology actively utilizes both proprietary ESG scoring and ESG
exclusionary screening to construct the Fund’s portfolio. The portfolio managers apply their ESG criteria in an effort to assess
an issuer’s impact of business operations on the environment, the social impact its business has on internal and external communities,
and the quality of its corporate governance principles.
Under
normal market conditions, the portfolio managers will employ the following
ESG methodology to assess investment opportunities for the Fund’s portfolio (except with respect to CLOs, which employ a different
ESG methodology described below): The portfolio managers first employ a proprietary ESG screen to exclude issuers from the investment
universe of securities in which the Fund may invest that do not meet its investment criteria. Such excluded issuers are those with substantial
involvement in the production of tobacco products, controversial weapons, engagement in cultivation, production or distribution of recreational
cannabis, extraction of
7 Invesco
Floating Rate ESG Fund
thermal
coal, and extraction of fossil fuels from unconventional sources. Issuers involved in the generation of electricity above 30% from coal-fired
plants are also excluded. Issuers will also be excluded based on their non-compliance with UN Global Compact principles. The principles
of the UN Global Compact represent a set of values that the UN believes responsible businesses should incorporate into their operations
in order to meet fundamental responsibilities in the areas of human rights, labor, environment and anti-corruption. They are derived from
the Universal Declaration of Human Rights, the International Labour Organization’s Declaration on Fundamental Principles and Rights
at Work, the Rio Declaration on Environment and Development, and the United Nations Convention Against Corruption. The UN principles embody
the idea that responsible companies’ business practices should reflect: (1) protection of internationally proclaimed human rights;
(2) not being complicit in human rights abuses; (3) freedom of association and the right to collective bargaining; (4) elimination of
forced and compulsory labor; (5) abolition of child labor; (6) elimination of discrimination in employment and occupation; (7) supporting
a precautionary approach to environmental challenges; (8) promoting greater environmental responsibility; (9) development and diffusion
of environmentally friendly technologies, and (10) working against corruption, including extortion and bribery. To the extent an issuer’s
status changes to meet the qualification for exclusion, the Fund shall take steps to divest its holdings of the issuer within a reasonable
period of time. Because the Fund's divestment of such investments may not be immediate, the Fund could be invested in investments that
do meet the qualification for exclusion. This screening criteria may be updated periodically.
Next,
based on research and due diligence reviews conducted with the management
teams of the eligible issuers, each investment opportunity is scored by the portfolio management team on a scale of 1-5 for risks related
to multiple ESG factors under each individual pillar of the ESG framework (1 indicates “no risk” and 5 indicates “high
risk”). The environmental pillar (“E”) factors include natural resources, pollution and waste, supply chain impact,
and environmental opportunities. The social pillar (“S”) factors include workforce, community, product responsibility, and
human rights. The governance pillar (“G”) factors include management, shareholders, board of directors, auditors, regulatory
issuers, corporate social responsibility strategy, anti-corruption, and business ethics. The foregoing factors in each ESG pillar may
be updated periodically.
Each
investment opportunity is assigned a weighted average score for each
ESG pillar. An overall aggregated, or composite, ESG score is also calculated, with pillars weighted differently depending on the industry.
The scores are determined at the time of purchase and reviewed at least annually. The Fund will not invest in loans or securities from
issuers that have a composite ESG rating or single category E, S, or G pillar rating above levels set within the internal ESG rating methodology,
and will seek to divest within a reasonable period of time from investments for which the aggregate ESG rating or single category E, S,
or G ratings rise above these limits, as determined by the portfolio managers’ internal rating methodology. Because the Fund's divestment
of such investments may not be immediate, the Fund could be invested in investments that do meet the qualification for exclusion. Under
normal circumstances, pursuant to its current internal limits, the Fund will only invest in loans from issuers with a single category
E, S or G pillar score of 4.25 and under and will also only invest in loans from issuers with a composite ESG score of 4.0 and under.
With
regard to the application of the Fund’s ESG methodology to CLOs, the
portfolio managers will utilize a proprietary approach in selecting CLOs for investment. The portfolio managers will assess via their
due diligence process how a CLO manager incorporates ESG considerations into its asset selection process. The portfolio managers examine
and assess the following ESG considerations with respect to the CLO manager: the existence of an ESG practice that definitively includes/excludes
borrowers as eligible investments; the number of the CLO’s investments that must be ESG-rated prior to becoming an eligible investment;
the extent to which the ESG ratings process results in a quantitative evaluation; the existence of an
exclusionary/screening
policy that prohibits investments in certain companies based on ESG considerations; the extent to which formal control procedures are
in place to ensure consistency and compliance with ESG policies; the frequency with which ESG ratings are evaluated; and the extent to
which the CLO manager is a signatory to UN-backed principles of responsible investment. Based on those considerations, the portfolio managers
assign quantitative factor ratings to each CLO manager in order to assess how that manager evaluates the different E, S and G risks within
their portfolio and determine a cumulative CLO manager ESG score. Only CLO managers whose ESG practices meet the Fund’s internal
ESG standards based on the above considerations and quantitative factor ratings will become an eligible CLO manager. The CLO manager screen
will be reviewed and updated at least annually.
Decisions
to purchase or sell loans and other investments are determined
by the relative value considerations of the portfolio managers that factor in economic and credit-related fundamentals, market supply
and demand, market dislocations, situation-specific opportunities and application of the Fund’s ESG criteria. The purchase or sale
of loans and other investments may be related to a decision to alter the Fund’s macro risk exposure, a desire to limit or reduce
the Fund’s exposure to a particular security or issuer, the degradation of an issuer’s credit quality, an ESG screen or score,
or the general liquidity needs of the Fund.
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 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
8 Invesco
Floating Rate ESG Fund
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.
◾
COVID-19.
The “COVID-19” strain of coronavirus has resulted in instances of market closures and dislocations, extreme volatility, liquidity
constraints and increased trading costs. Efforts to contain its spread have resulted in travel restrictions, disruptions of healthcare
systems, business operations (including business closures) and supply chains, layoffs, lower consumer demand and employee availability,
and defaults and credit downgrades, among other significant economic impacts that have disrupted global economic activity across many
industries. Such economic impacts may exacerbate other pre-existing political, social and economic risks locally or globally and cause
general concern and uncertainty. The full economic impact and ongoing effects of COVID-19 (or other future epidemics or pandemics) at
the macro-level and on individual businesses are unpredictable and may result in significant and prolonged effects on the Fund’s
performance.
Bank
Loan Risk. There are a number of risks associated with an investment
in bank loans including credit risk, interest rate risk, liquidity risk,
valuation risk and prepayment risk. These risks are typically associated
with debt securities but may be heightened in part because of the limited public information regarding bank loans. Lack of an active trading
market, restrictions on resale, irregular trading activity, wide bid/ask spreads and extended trade settlement periods may impair the
Fund’s ability to sell bank loans within its desired time frame or at an acceptable price and its ability to accurately value existing
and prospective investments. Extended trade settlement periods may result in cash not being immediately available to the Fund. As a result,
the Fund may have to sell other investments or engage in borrowing transactions to raise cash to meet its obligations.
The
risk of holding bank loans is also directly tied to the risk of insolvency
or bankruptcy of the issuing banks. If the borrower defaults on its obligation to pay, there is the possibility that the collateral securing
a loan, if any, may be difficult to liquidate or be insufficient to cover the amount owed under the loan. The value of bank loans can
be affected by and sensitive to changes in government regulation and to economic downturns in the United States and abroad. These risks
could cause the Fund to lose income or principal on a particular investment, which in turn could affect the Fund’s returns. Additionally,
valuation of bank loans may require greater research due to limited public information available and elements of judgment may play a greater
role in valuation since there may be a lack of objective data available.
Bank
loans generally are floating rate loans, which are subject to interest
rate risk as the interest paid on the floating rate loans adjusts periodically based on changes in widely accepted reference rates.
Debt
Securities Risk. The prices of debt securities held by the Fund
will be affected by changes in interest rates, the creditworthiness of the issuer and other factors. An increase in prevailing interest
rates typically causes the value of existing debt securities to fall and often has a greater impact on longer-duration debt securities
and higher quality debt securities. Falling interest rates will cause the Fund to reinvest the proceeds of debt securities that have been
repaid by the issuer at lower interest rates. Falling interest rates may also reduce the Fund’s distributable income because interest
payments
on floating rate debt instruments held by the Fund will decline. The Fund could lose money on investments in debt securities if the issuer
or borrower fails to meet its obligations to make interest payments and/or to repay principal in a timely manner. If an issuer seeks to
restructure the terms of its borrowings or the Fund is required to seek recovery upon a default in the payment of interest or the repayment
of principal, the Fund may incur additional expenses. Changes in an issuer’s financial strength, the market’s perception of
such strength or in the credit rating of the issuer or the security may affect the value of debt securities. The Adviser’s credit
analysis may fail to anticipate such changes, which could result in buying a debt security at an inopportune time or failing to sell a
debt security in advance of a price decline or other credit event.
High
Yield Debt Securities (Junk Bond) Risk. The Fund’s investments
in high yield debt securities (commonly referred to as “junk bonds”) and other lower-rated securities will subject the Fund
to substantial risk of loss. These securities are considered to be speculative with respect to the issuer’s ability to pay interest
and principal when due and are more susceptible to default or decline in market value due to adverse economic, regulatory, political or
company developments than higher rated or investment grade securities. Prices of high yield debt securities tend to be very volatile.
These securities are less liquid than investment grade debt securities and may be difficult to sell at a desirable time or price, particularly
in times of negative sentiment toward high yield securities.
Collateralized
Loan Obligations Risk. CLOs are subject to the risks of substantial
losses due to actual defaults by underlying borrowers, which will be greater during periods of economic or financial stress. CLOs may
also lose value due to collateral defaults and disappearance of subordinate tranches, market anticipation of defaults, and investor aversion
to CLO securities as a class. The risks of CLOs will be greater if the Fund invests in CLOs that hold loans of uncreditworthy borrowers
or if the Fund holds subordinate tranches of the CLO that absorb losses from the defaults before senior tranches. In addition, CLOs are
subject to interest rate risk and credit risk.
ESG
Risk. Because the Fund evaluates ESG factors to assess and exclude
certain investments for non-financial reasons, it may forego some market opportunities available to funds that do not use these factors.
The securities of issuers that score favorably under the Fund’s ESG scoring methodology may underperform similar issuers that do
not score as well or may underperform the market as a whole. As a result, the Fund may underperform funds that do not screen or score
issuers based on ESG factors or funds that use a different ESG methodology. Information used by the Fund to evaluate such factors may
not be readily available, complete or accurate, which could negatively impact the Fund’s ability to apply its methodology, which
in turn could negatively impact the Fund’s performance. In addition, the Fund’s assessment of an issuer, based on the issuer’s
level of involvement in a particular industry or the issuer’s ESG score, may differ from that of other funds or an investor. As
a result, the issuers deemed eligible for inclusion in the Fund’s portfolio may not reflect the beliefs or values of any particular
investor and may not be deemed to exhibit positive or favorable ESG characteristics if different metrics were used to evaluate them.
LIBOR
Transition Risk. The Fund may have investments in financial instruments
that utilize the London Interbank Offered Rate (“LIBOR”) as the reference or benchmark rate for variable interest rate calculations.
LIBOR is intended to measure the rate generally at which banks can lend and borrow from one another in the relevant currency on an unsecured
basis. In the years following the 2008 financial crisis, the integrity of LIBOR was increasingly questioned because several banks contributing
to its calculation were accused of rate manipulation and because of a general contraction in the unsecured interbank lending market. As
a result, regulators and financial industry working groups in several jurisdictions have worked over the past several years to identify
alternative reference rates (“ARRs”) to replace LIBOR and to assist with the transition to the new ARRs. In connection with
the transition, on March 5, 2021 the UK Financial Conduct Authority (FCA),
9 Invesco
Floating Rate ESG Fund
the
regulator that oversees LIBOR, announced that the majority of LIBOR rates would cease to be published or would no longer be representative
on January 1, 2022. Consequently, the publication of most LIBOR rates ceased at the end of 2021, but a selection of widely used USD LIBOR
rates continues to be published until June 2023 to allow for an orderly transition away from these rates. Additionally, key regulators
have instructed banking institutions to cease entering into new contracts that reference these USD LIBOR settings after December 31, 2021,
subject to certain limited exceptions.
There
remains uncertainty and risks relating to the continuing LIBOR
transition and its effects on the Fund and the instruments in which the Fund invests. For example,
there can be no assurance that the composition or characteristics
of any ARRs or financial instruments
in
which the Fund
invests that
utilize ARRs will be similar to or produce the same value or economic
equivalence as LIBOR or that these instruments will have the same volume or liquidity. Additionally, although regulators have generally
prohibited banking institutions from entering into new contracts that reference those USD LIBOR settings that continue to exist,
there remains
uncertainty and risks relating to certain
“legacy”
USD LIBOR
instruments that were issued or entered into before December
31,
2021 and the process by which a replacement interest rate will
be identified and implemented into these instruments when USD LIBOR
is ultimately discontinued. The effects of such uncertainty and risks in
“legacy”
USD LIBOR instruments held by the Fund could result in losses to
the Fund.
Changing
Fixed Income Market Conditions Risk. Increases
in the federal funds and equivalent foreign rates or other changes to monetary policy or regulatory actions may expose fixed income markets
to heightened volatility and reduced liquidity for certain fixed income investments, particularly those with longer maturities. It is
difficult to predict the impact of interest rate changes on various markets. In addition, decreases in fixed income dealer market-making
capacity may also potentially lead to heightened volatility and reduced liquidity in the fixed income markets. As a result, the value
of the Fund’s investments and share price may decline. Changes in
central bank policies
could also result in higher than normal redemptions by shareholders,
which could potentially increase the Fund’s portfolio turnover rate and transaction costs and potentially lower the Fund’s
performance returns.
Defaulted
Securities Risk. Defaulted securities pose a greater risk that
principal will not be repaid than non-defaulted securities. The Fund will generally not receive interest payments on defaulted securities
and may incur costs to protect its investment. Defaulted securities and any securities received in an exchange for such securities may
be subject to restrictions on resale. Investments in defaulted securities and obligations of distressed issuers are considered speculative
and the prices of these securities may be more volatile than non-defaulted securities.
This
risk also applies to investments in loans to bankrupt companies.
Subordinated
Debt Risk. Perpetual subordinated debt is a type of hybrid instrument
that has no maturity date for the return of principal and does not need to be redeemed by the issuer. These investments typically have
lower credit ratings and lower priority than other obligations of an issuer during bankruptcy, presenting a greater risk for nonpayment.
This risk increases as the priority of the obligation becomes lower. Payments on these securities may be subordinated to all existing
and future liabilities and obligations of subsidiaries and associated companies of an issuer. Claims of creditors of such subsidiaries
and associated companies will have priority over the issuer and the Fund to the assets of those subsidiaries and associated companies.
Additionally, some perpetual subordinated debt does not restrict the ability of an issuer’s subsidiaries to incur further unsecured
indebtedness.
Credit
Quality Risk. The Fund can invest in securities that are rated
or unrated. “Investment-grade” securities are those rated within the four highest rating categories by nationally recognized
statistical rating organizations such as Moody’s or S&P (or, in the case of unrated securities, determined by the investment
adviser to be comparable to securities rated
investment-grade).
“Below-investment-grade” securities are those that are rated below those categories, which are also referred to as “junk
bonds.” While securities rated within the fourth highest category by S&P (meaning BBB+, BBB or BBB-) or by Moody’s (meaning
Baa1, Baa2 or Baa3) are considered “investment-grade,” they have some speculative characteristics. If two or more nationally
recognized statistical rating organizations have assigned different ratings to a security, the investment adviser uses the highest rating
assigned.
Credit
ratings evaluate the expectation that scheduled interest and principal
payments will be made in a timely manner. They do not reflect any judgment of market risk. Ratings and market value may change from time
to time, positively or negatively, to reflect new developments regarding the issuer. Rating organizations might not change their credit
rating of an issuer in a timely manner to reflect events that could affect the issuer’s ability to make timely payments on its obligations.
In selecting securities for its portfolio and evaluating their income potential and credit risk, the Fund does not rely solely on ratings
by rating organizations but evaluates business, economic and other factors affecting issuers as well. Many factors affect an issuer’s
ability to make timely payments, and the credit risk of a particular security may change over time. The investment adviser also may use
its own research and analysis to assess those risks. If a bond is insured, it will usually be rated by the rating organizations based
on the financial strength of the insurer. The rating categories are described in an Appendix to the SAI.
Unrated
Securities Risk. The investment adviser may internally assign ratings
to securities that are not rated by any nationally recognized statistical rating organization, after assessing their credit quality and
other factors, in categories similar to those of nationally recognized statistical rating organizations. There can be no assurance, nor
is it intended, that the investment adviser’s credit analysis process is consistent or comparable with the credit analysis process
used by a nationally recognized statistical rating organization. Unrated securities are considered “investment-grade” or “below-investment-grade”
if judged by the investment adviser to be comparable to rated investment-grade or below-investment-grade securities. The investment adviser’s
rating does not constitute a guarantee of the credit quality. In addition, some unrated securities may not have an active trading market
or may trade less actively than rated securities, which means that the Fund might have difficulty selling them promptly at an acceptable
price.
In
evaluating the credit quality of a particular security, whether rated or unrated,
the investment adviser will normally take into consideration a number of factors such as, if applicable, the financial resources of the
issuer, the underlying source of funds for debt service on a security, the issuer’s sensitivity to economic conditions and trends,
any operating history of the facility financed by the obligation, the degree of community support for the financed facility, the capabilities
of the issuer’s management, and regulatory factors affecting the issuer or the particular facility.
A
reduction in the rating of a security after the Fund buys it will not require
the Fund to dispose of the security. However, the investment adviser will evaluate such downgraded securities to determine whether to
keep them in the Fund’s portfolio.
Financial
Services Sector Risk. The Fund may be susceptible to adverse economic
or regulatory occurrences affecting the financial services sector. Financial services companies are subject to extensive government regulation
and, as a result, their profitability may be affected by new regulations or regulatory interpretations. Unstable interest rates, volatility
in the financial markets, changes in domestic and foreign monetary policy, and changes in industry regulations, can have a disproportionate
effect on companies in the financial services sector which could adversely affect the profitability of such companies. Financial services
companies whose securities the Fund may purchase may themselves have concentrated portfolios, which makes them especially vulnerable to
unstable economic conditions.
Foreign
Securities Risk. The value of the Fund's foreign investments may
be adversely affected by political and social instability in the home
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Floating Rate ESG Fund
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.
Investing
in Stocks Risk. Common stock represents an ownership interest in
a company. It ranks below preferred stock and debt securities in claims for dividends and in claims for assets of the issuer in a liquidation
or bankruptcy. Common stocks may be exchange-traded or over-the-counter securities. Over-the-counter securities may be less liquid than
exchange-traded securities.
The
value of the Fund’s portfolio may be affected by changes in the stock
markets. Stocks and other equity securities fluctuate in price in response to changes to equity markets in general. Stock markets may
experience significant short-term volatility and may fall or rise sharply at times. Adverse events in any part of the equity or fixed-income
markets may have unexpected negative effects on other market segments. Different stock markets may behave differently from each other
and U.S. stock markets may move in the opposite direction from one or more foreign stock markets.
The
prices of individual stocks generally do not all move in the same direction
at the same time. However, individual stock prices tend to go up and down more dramatically than those of certain other types of investments,
such as bonds. A variety of factors can negatively affect the price of a particular company’s stock. These factors may include,
but are not limited to: poor earnings reports, a loss of customers, litigation against the company, general unfavorable performance of
the company’s sector or industry, or changes in government regulations affecting the company or its industry. To the extent that
securities of a particular type are emphasized (for example foreign stocks, stocks of small- or mid-cap companies, growth or value stocks,
or stocks of companies in a particular industry), their share values may fluctuate more in response to events affecting the market for
those types of securities.
Preferred
Securities Risk. Preferred securities are subject to issuer-specific
and market risks applicable generally to equity securities. Preferred stock has a set dividend rate and ranks ahead of common stocks and
behind debt securities in claims for dividends and for assets of the issuer in a liquidation or bankruptcy. Preferred securities also
may be subordinated to bonds or other debt instruments in an issuer’s capital
structure,
subjecting them to a greater risk of non-payment than these more senior securities. For this reason, the value of preferred securities
will usually react more strongly than bonds and other debt securities to actual or perceived changes in the company’s financial
condition or prospects. Preferred securities may be less liquid than many other securities, such as common stocks, and generally offer
no voting rights with respect to the issuer.
Rights
and Warrants Risk. Rights and warrants may be purchased directly
or acquired as part of other securities. Warrants are options to purchase equity securities at a specific price during a specific period
of time. The price of a warrant does not necessarily move parallel to, and is generally more volatile than, the price of the underlying
security. Warrants may be significantly less valuable or worthless on their expiration date and may also be postponed or terminated early,
resulting in a partial or total loss. Rights are similar to warrants, but normally have a short duration and are distributed directly
by the issuer to its shareholders. Rights and warrants have no voting rights, receive no dividends and have no rights with respect to
the assets of the issuer. Warrants and rights are highly volatile and, therefore, more susceptible to sharp declines in value than the
underlying security might be. The market for rights or warrants may be very limited and it may be difficult to sell them promptly at an
acceptable price.
Convertible
Securities Risk. The market value of a convertible security performs
like that of a regular debt security; that is, if market interest rates rise, the value of a convertible security usually falls. In addition,
convertible securities are subject to the risk that the issuer will not be able to pay interest or dividends when due, and their market
value may change based on changes in the issuer’s credit rating or the market’s perception of the issuer’s creditworthiness.
Convertible securities can be converted into or exchanged for a set amount of common stock of an issuer within a particular period of
time at a specified price or according to a price formula. Convertible debt securities pay interest and convertible preferred stocks pay
dividends until they mature or are converted, exchanged or redeemed. Some convertible debt securities may be considered “equity
equivalents” because of the feature that makes them convertible into common stock. Since a convertible security derives a portion
of its value from the common stock into which it may be converted, a convertible security is also subject to the same types of market
and issuer risks that apply to the underlying common stock. In addition, certain convertible securities are subject to involuntary conversions
and may undergo principal write-downs upon the occurrence of certain triggering events. These convertible securities are subject to an
increased risk of loss and are generally subordinate in rank to other debt obligations of the issuer. Convertible securities may be rated
below investment grade, which are considered to have more speculative characteristics and greater susceptibility to default or decline
in market value than investment grade securities.
Warrants,
Equity Securities and Junior Debt Securities of the Borrower Risk.
Warrants, equity securities and junior debt securities have a subordinate claim on a Borrower’s assets as compared with Senior Loans.
As a result, the values of warrants, equity securities and junior debt securities generally are more dependent on the financial condition
of the Borrower and less dependent on fluctuations in interest rates than are the values of many debt securities. The values of warrants,
equity securities and junior debt securities may be more volatile than those of Senior Loans and thus may increase the volatility of the
Fund’s net asset value. Additionally, warrants may be significantly less valuable on their relevant expiration date resulting in
a loss of money or they may expire worthless resulting in a total loss of the investment. Warrants may also be postponed or terminated
early resulting in a partial or total loss of the investment. Warrants may also be illiquid.
Derivatives
Risk. A derivative is an instrument whose value depends largely
on (and is derived from) the value of an underlying security, currency, commodity, interest rate, index or other asset (each referred
to as an underlying asset). In addition to risks relating to the underlying assets, the
11 Invesco
Floating Rate ESG Fund
use of
derivatives may include other, possibly greater, risks, which are described below.
◾
Counterparty
Risk. Certain derivatives do not trade on an established exchange
(referred to as over-the-counter (OTC) derivatives) and are simply financial contracts between the Fund and a counterparty. When the Fund
is owed money on an OTC derivative, the Fund is dependent on the counterparty to pay or, in some cases, deliver the underlying asset,
unless the Fund can otherwise sell its derivative contract to a third party prior to its expiration. Many counterparties are financial
institutions such as banks and broker-dealers and their creditworthiness (and ability to pay or perform) may be negatively impacted by
factors affecting financial institutions generally. In addition, in the event that a counterparty becomes bankrupt or insolvent, the Fund’s
ability to recover the collateral that the Fund has on deposit with the counterparty could be delayed or impaired. For derivatives traded
on a centralized exchange, the Fund generally is dependent upon the solvency of the relevant exchange clearing house (which acts as a
guarantor for each contractual obligation under such derivatives) for payment on derivative instruments for which the Fund is owed money.
◾
Leverage
Risk. Many derivatives do not require a payment up front equal
to the economic exposure created by holding a position in the derivative, which creates a form of leverage. As a result, an adverse change
in the value of the underlying asset could result in the Fund sustaining a loss that is substantially greater than the amount invested
in the derivative or the anticipated value of the underlying asset. In addition,
some derivatives have the potential for unlimited loss, regardless
of the size of the Fund’s initial investment. Leverage may therefore make the Fund’s returns more volatile and increase
the risk of loss. In certain market conditions, losses on derivative
instruments can grow larger while the value of the Fund’s other assets fall, resulting in the Fund’s derivative positions
becoming a larger percentage of the Fund’s investments.
◾
Liquidity
Risk. There is a smaller pool of buyers and sellers for certain
derivatives, particularly OTC derivatives, than more traditional investments such as stocks. These buyers and sellers are often financial
institutions that may be unable or unwilling to buy or sell derivatives during times of financial or market stress. Derivative instruments
may therefore be less liquid than more traditional investments and the Fund may be unable to sell or exit its derivative positions at
a desirable time or price. This risk may be more acute under adverse market conditions, during which the Fund may be most in need of liquidating
its derivative positions. To the extent that the Fund is unable to exit a derivative position because of market illiquidity, the Fund
may not be able to prevent further losses of value in its derivatives holdings and the liquidity of the Fund and its ability to meet redemption
requests may be impaired to the extent that a substantial portion of the Fund’s otherwise liquid assets must be used as margin.
Another consequence of illiquidity is that the Fund may be required to hold a derivative instrument to maturity and take or make delivery
of the underlying asset that the Adviser would otherwise avoid.
◾
Forward
Contracts Risk. The projection of short-term currency market movements
is extremely difficult, and the successful execution of a short-term hedging strategy is highly uncertain. The precise matching of the
amounts under forward contracts and the value of the securities involved generally will not be possible because the future value of securities
denominated in foreign currencies will change as a consequence of market movements between the date the forward contract is entered into
and the date it is sold. Investments in forward contracts involve the risk that anticipated currency movements will not be accurately
predicted, causing the Fund to sustain losses on these contracts and to pay additional transaction costs.
◾
Futures
Contracts Risk. The volatility of futures contracts prices has
been historically greater than the volatility of stocks and bonds. The liquidity of the futures market depends on participants entering
into offsetting transactions rather than making or taking delivery. To the extent participants decide to make or take delivery, liquidity
in the futures market could be reduced. In addition, futures exchanges often impose a maximum permissible price movement on each futures
contract for each trading session. The Fund may be disadvantaged if it is prohibited from executing a trade outside the daily permissible
price movement.
◾
Swap
Transactions Risk. Under U.S. financial reform legislation enacted
in 2010, certain types of swaps are required to be executed on a regulated market and cleared through a central clearing house counterparty,
which may entail further risks and costs for the Fund. Swap agreements are privately negotiated in the over-the-counter market and
may be entered into as a bilateral contract or may be centrally cleared. In a centrally cleared swap, immediately following execution
of the swap agreement, the swap agreement is submitted for clearing to a central clearing house counterparty, and the Fund faces the central
clearing house counterparty by means of an account with a futures commission merchant that is a member of the clearing house.
◾
Other
Risks. Compared to other types of investments, derivatives may
be harder to value and may also be less tax efficient, as described under the “Taxes” section of the prospectus. In addition,
changes in government regulation of derivative instruments could affect the character, timing and amount of the Fund’s taxable income
or gains, and may limit or prevent the Fund from using certain types of derivative instruments as a part of its investment strategy, which
could make the investment strategy more costly to implement or require the Fund to change its investment strategy. Derivatives strategies
may not always be successful. For example, to the extent that the Fund uses derivatives for hedging or to gain or limit exposure to a
particular market or market segment, there may be imperfect correlation between the value of the derivative instrument and the value of
the instrument being hedged or the relevant market or market segment, in which case the Fund may not realize the intended benefits. There
is also the risk that during adverse market conditions, an instrument which would usually operate as a hedge provides no hedging benefits
at all. The Fund’s use of derivatives may be limited by the requirements for taxation of the Fund as a regulated investment company.
Credit
Linked Notes Risk. Risks of credit linked notes include those risks
associated with the underlying reference obligation including but not limited to market risk, interest rate risk, credit risk, default
risk and, in some cases, foreign currency risk. In the case of a credit linked note that is “funded,” the par amount of the
security will represent the maximum loss that could be incurred on the investment and no leverage is introduced. An investor in a credit
linked note bears counterparty risk or the risk that the issuer of the credit linked note will default or become bankrupt and not make
timely payment of principal and interest of the structured security. Credit linked notes may be less liquid than other investments and
therefore harder to dispose of at the desired time and price. In addition, credit linked notes may be leveraged and, as a result, small
changes in the value of the underlying reference obligation may produce disproportionate losses to the Fund.
Liquidity
Risk. The Fund may be unable to sell illiquid investments at the
time or price it desires and, as a result, could lose its entire investment in such investments. An investment may be illiquid due to
a lack of trading volume in the investment or if the investment is privately placed and not traded in any public market or is otherwise
restricted from trading. Liquid securities can become illiquid during periods of market stress. If a significant amount of the Fund’s
securities become illiquid, the Fund may not be able to timely pay redemption proceeds and may need to sell securities at significantly
reduced prices.
12 Invesco
Floating Rate ESG Fund
Borrowing
Risk. Borrowing money to buy securities exposes the Fund to leverage
because the Fund seeks to achieve a return on a capital base larger than the assets that shareholders have contributed to the Fund. Borrowing
will cause the Fund’s share price to be more volatile because leverage will exaggerate the effect of any increase or decrease in
the value of the Fund’s portfolio securities. The Fund may also be required to liquidate positions when it may not be advantageous
to do so in order to repay borrowed money when due. In addition, the Fund will incur interest expenses and other fees on borrowed money.
There can be no assurance that the Fund’s borrowing strategy will enhance and not reduce the Fund’s returns.
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 1555 Peachtree Street, N.E., Atlanta, Georgia 30309. The Adviser, as successor in interest to multiple
investment advisers, has been an investment adviser since 1976.
Invesco
Senior Secured Management, Inc. (Invesco Senior Secured) serves
as the Fund’s investment sub-adviser. Invesco Senior Secured, an affiliate of the Adviser, is located at 225 Liberty Street, New
York, New York 10281. Invesco Senior Secured has experience managing senior secured loans dating back to 1990. Invesco Senior Secured
manages a broad array of portfolio types including retail mutual funds, commingled institutional funds, separate accounts and structured
products for a variety of retail and institutional investors (both public and private). Invesco Senior Secured provides portfolio management
services to the Fund.
In
addition, Invesco has entered into one or more Sub-Advisory Agreements
with certain affiliates to serve as sub-advisers to the Fund (the Sub-Advisers). Invesco may appoint the Sub-Advisers from time to time
to provide discretionary investment management services, investment advice, and/or order execution services to the Fund. The Sub-Advisers
and the Sub-Advisory Agreements are described in the SAI.
Exclusion
of Adviser from Commodity Pool Operator Definition
With
respect to the Fund, the Adviser has claimed an exclusion from the definition of “commodity pool operator” (CPO) under the
Commodity Exchange Act (CEA) and the rules of the Commodity Futures Trading Commission (CFTC) and, therefore, is not subject to CFTC registration
or regulation as a CPO. In addition, the Adviser is relying upon a related exclusion from the definition of “commodity trading advisor”
(CTA) under the CEA and the rules of the CFTC with respect to the Fund.
The
terms of the CPO exclusion require the Fund, among other things, to
adhere to certain limits on its investments in “commodity interests.”
Commodity
interests include commodity futures, commodity options and swaps, which in turn include non-deliverable forwards. The Fund is permitted
to invest in these instruments as further described in the Fund’s SAI. However, the Fund is not intended as a vehicle for trading
in the commodity futures, commodity options or swaps markets. The CFTC has neither reviewed nor approved the Adviser’s reliance
on these exclusions, or the Fund, its investment strategies or this prospectus.
Adviser
Compensation
During
the fiscal year ended August 31, 2022, the Adviser received compensation of 0.60% of the Fund’s average daily net assets, after
fee waiver and/or expense reimbursement, if any.
Invesco,
not the Fund, pays sub-advisory fees, 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
Investment
management decisions for the Fund are made by the investment management team at Invesco Senior Secured.
◾
Thomas
Ewald (lead manager), Portfolio Manager, who has been responsible for the Fund since 2006 (and the Fund's predecessor closed-end fund,
since 2004) and has been associated with Invesco Senior Secured and/or its affiliates since 2000.
◾
Scott
Baskind, Portfolio Manager, who has been responsible for the Fund since 2013 and has been associated with Invesco Senior Secured and/or
its affiliates since 1999.
◾
Philip
Yarrow, CFA, Portfolio Manager, who has been responsible for the Fund since 2013 and has been associated with Invesco Senior Secured 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 2.50% initial sales charge as listed under the heading “Category IV Initial
Sales Charges” in the “Shareholder Account Information—Initial Sales Charges (Class A Shares Only)” section of
the prospectus. Purchases of Class C shares are subject to a contingent deferred sales charge (CDSC) if you sell Class C shares within
one year of purchase; however, the CDSC shall not apply to the purchases of Class C shares where the selling broker-dealer was not paid
a commission at the time of purchase. For more information on CDSCs, see the “Shareholder Account Information—Contingent Deferred
Sales Charges (CDSCs)” section of this prospectus.
Dividends
and Distributions
The
Fund expects, based on its investment objective and strategies, that its distributions, if any, will consist primarily of ordinary income.
13 Invesco
Floating Rate ESG Fund
Dividends
The
Fund generally declares dividends from net investment income daily and pays them monthly.
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.
14 Invesco
Floating Rate ESG Fund
Financial Highlights
The financial
highlights show the Fund’s financial history for the past five fiscal years or, if shorter, the period of operations of the Fund
or any of its share classes. The financial highlights table is intended to help you understand the Fund’s financial performance.
Certain information reflects financial results for a single Fund share.
The
total returns in the table represent the rate that an investor would have
earned (or lost) on an investment in the Fund (assuming reinvestment of all dividends and distributions).
This
information has been audited by PricewaterhouseCoopers LLP, an independent
registered public accounting firm, whose report, along with the Fund’s financial statements, is included in the Fund’s annual
report, which is available upon request.
|
|
Net
asset
value,
beginning
of
period |
Net
investment
income(a)
|
Net
gains
(losses)
on
securities
(both
realized
and
unrealized)
|
Total
from
investment
operations
|
Dividends
from
net
investment
income
|
Return
of
capital
|
Total
distributions
|
Net
asset
value,
end
of
period |
Total
return
(b)
|
Net
assets,
end
of period
(000's
omitted) |
Ratio
of
expenses
to
average
net
assets
with
fee waivers
and/or
expenses
absorbed
|
Ratio
of
expenses
to
average net
assets
without
fee
waivers
and/or
expenses
absorbed
|
Supplemental
ratio
of
expenses
to
average
net
assets
with
fee waivers
(excluding
interest,
facilities
and
maintenance
fees)
|
Ratio
of net
investment
income
to
average
net
assets |
Portfolio
turnover
(c)
|
|
Class
A | |||||||||||||||
|
Year
ended
08/31/22
|
$7.35
|
$0.29
|
$(0.39)
|
$(0.10)
|
$(0.30)
|
$—
|
$(0.30)
|
$6.95
|
(1.44)%
|
$751,871
|
1.04%(d)
|
1.05%(d)
|
1.01%
|
4.13%
|
43%
|
|
Year
ended
08/31/21
|
6.94
|
0.25
|
0.43
|
0.68
|
(0.27)
|
—
|
(0.27)
|
7.35
|
9.89
|
585,690
|
1.05(d)
|
1.05(d)
|
1.00
|
3.45
|
76
|
|
Year
ended
08/31/20
|
7.40
|
0.30
|
(0.40)
|
(0.10)
|
(0.32)
|
(0.04)
|
(0.36)
|
6.94
|
(1.33)
|
428,277
|
1.07(d)
|
1.08(d)
|
1.00
|
4.33
|
55
|
|
Year
ended
08/31/19
|
7.57
|
0.35
|
(0.17)
|
0.18
|
(0.35)
|
—
|
(0.35)
|
7.40
|
2.50
|
539,003
|
1.08(d)
|
1.08(d)
|
1.03
|
4.71
|
55
|
|
Year
ended
08/31/18
|
7.56
|
0.31
|
0.02
|
0.33
|
(0.32)
|
—
|
(0.32)
|
7.57
|
4.47
|
585,865
|
1.07(d)
|
1.08(d)
|
—
|
4.15
|
51
|
|
| |||||||||||||||
|
Class
C | |||||||||||||||
|
Year
ended
08/31/22
|
7.32
|
0.26
|
(0.40)
|
(0.14)
|
(0.26)
|
—
|
(0.26)
|
6.92
|
(1.96)
|
103,807
|
1.54(d)
|
1.55(d)
|
1.51
|
3.63
|
43
|
|
Year
ended
08/31/21
|
6.91
|
0.21
|
0.43
|
0.64
|
(0.23)
|
—
|
(0.23)
|
7.32
|
9.37
|
91,555
|
1.55(d)
|
1.55(d)
|
1.50
|
2.95
|
76
|
|
Year
ended
08/31/20
|
7.37
|
0.27
|
(0.41)
|
(0.14)
|
(0.28)
|
(0.04)
|
(0.32)
|
6.91
|
(1.84)
|
111,318
|
1.57(d)
|
1.58(d)
|
1.50
|
3.83
|
55
|
|
Year
ended
08/31/19
|
7.53
|
0.31
|
(0.16)
|
0.15
|
(0.31)
|
—
|
(0.31)
|
7.37
|
2.12
|
213,446
|
1.58(d)
|
1.58(d)
|
1.53
|
4.21
|
55
|
|
Year
ended
08/31/18
|
7.53
|
0.28
|
0.00
|
0.28
|
(0.28)
|
—
|
(0.28)
|
7.53
|
3.81
|
387,685
|
1.57(d)
|
1.58(d)
|
—
|
3.65
|
51
|
|
| |||||||||||||||
|
Class
R | |||||||||||||||
|
Year
ended
08/31/22
|
7.36
|
0.28
|
(0.38)
|
(0.10)
|
(0.28)
|
—
|
(0.28)
|
6.98
|
(1.40)
|
8,208
|
1.29(d)
|
1.30(d)
|
1.26
|
3.88
|
43
|
|
Year
ended
08/31/21
|
6.95
|
0.23
|
0.43
|
0.66
|
(0.25)
|
—
|
(0.25)
|
7.36
|
9.61
|
6,076
|
1.30(d)
|
1.30(d)
|
1.25
|
3.20
|
76
|
|
Year
ended
08/31/20
|
7.41
|
0.29
|
(0.41)
|
(0.12)
|
(0.30)
|
(0.04)
|
(0.34)
|
6.95
|
(1.57)
|
4,874
|
1.32(d)
|
1.33(d)
|
1.25
|
4.08
|
55
|
|
Year
ended
08/31/19
|
7.58
|
0.33
|
(0.16)
|
0.17
|
(0.34)
|
—
|
(0.34)
|
7.41
|
2.25
|
5,604
|
1.33(d)
|
1.33(d)
|
1.28
|
4.46
|
55
|
|
Year
ended
08/31/18
|
7.57
|
0.30
|
0.01
|
0.31
|
(0.30)
|
—
|
(0.30)
|
7.58
|
4.21
|
5,583
|
1.32(d)
|
1.33(d)
|
—
|
3.90
|
51
|
|
| |||||||||||||||
|
Class
Y | |||||||||||||||
|
Year
ended
08/31/22
|
7.34
|
0.31
|
(0.40)
|
(0.09)
|
(0.31)
|
—
|
(0.31)
|
6.94
|
(1.20)
|
2,696,320
|
0.79(d)
|
0.80(d)
|
0.76
|
4.38
|
43
|
|
Year
ended
08/31/21
|
6.93
|
0.27
|
0.42
|
0.69
|
(0.28)
|
—
|
(0.28)
|
7.34
|
10.18
|
1,232,463
|
0.80(d)
|
0.80(d)
|
0.75
|
3.70
|
76
|
|
Year
ended
08/31/20
|
7.39
|
0.32
|
(0.40)
|
(0.08)
|
(0.34)
|
(0.04)
|
(0.38)
|
6.93
|
(1.09)
|
350,943
|
0.82(d)
|
0.83(d)
|
0.75
|
4.58
|
55
|
|
Year
ended
08/31/19
|
7.56
|
0.37
|
(0.17)
|
0.20
|
(0.37)
|
—
|
(0.37)
|
7.39
|
2.76
|
592,107
|
0.83(d)
|
0.83(d)
|
0.78
|
4.96
|
55
|
|
Year
ended
08/31/18
|
7.55
|
0.33
|
0.02
|
0.35
|
(0.34)
|
—
|
(0.34)
|
7.56
|
4.72
|
963,386
|
0.82(d)
|
0.83(d)
|
—
|
4.40
|
51
|
|
| |||||||||||||||
15 Invesco
Floating Rate ESG Fund
|
|
Net
asset
value,
beginning
of
period |
Net
investment
income(a)
|
Net
gains
(losses)
on
securities
(both
realized
and
unrealized)
|
Total
from
investment
operations
|
Dividends
from
net
investment
income
|
Return
of
capital
|
Total
distributions
|
Net
asset
value,
end
of
period |
Total
return
(b)
|
Net
assets,
end
of period
(000's
omitted) |
Ratio
of
expenses
to
average
net
assets
with
fee waivers
and/or
expenses
absorbed
|
Ratio
of
expenses
to
average net
assets
without
fee
waivers
and/or
expenses
absorbed
|
Supplemental
ratio
of
expenses
to
average
net
assets
with
fee waivers
(excluding
interest,
facilities
and
maintenance
fees)
|
Ratio
of net
investment
income
to
average
net
assets |
Portfolio
turnover
(c)
|
|
Class
R5 | |||||||||||||||
|
Year
ended
08/31/22
|
$7.35
|
$0.31
|
$(0.39)
|
$(0.08)
|
$(0.32)
|
$—
|
$(0.32)
|
$6.95
|
(1.18)%
|
$4,762
|
0.77%(d)
|
0.78%(d)
|
0.74%
|
4.40%
|
43%
|
|
Year
ended
08/31/21
|
6.94
|
0.27
|
0.43
|
0.70
|
(0.29)
|
—
|
(0.29)
|
7.35
|
10.23
|
3,631
|
0.77(d)
|
0.77(d)
|
0.72
|
3.73
|
76
|
|
Year
ended
08/31/20
|
7.41
|
0.32
|
(0.41)
|
(0.09)
|
(0.34)
|
(0.04)
|
(0.38)
|
6.94
|
(1.21)
|
5,515
|
0.81(d)
|
0.82(d)
|
0.74
|
4.59
|
55
|
|
Year
ended
08/31/19
|
7.58
|
0.37
|
(0.16)
|
0.21
|
(0.38)
|
—
|
(0.38)
|
7.41
|
2.80
|
5,672
|
0.83(d)
|
0.83(d)
|
0.78
|
4.96
|
55
|
|
Year
ended
08/31/18
|
7.57
|
0.33
|
0.02
|
0.35
|
(0.34)
|
—
|
(0.34)
|
7.58
|
4.73
|
4,696
|
0.81(d)
|
0.82(d)
|
—
|
4.41
|
51
|
|
| |||||||||||||||
|
Class
R6 | |||||||||||||||
|
Year
ended
08/31/22
|
7.33
|
0.32
|
(0.40)
|
(0.08)
|
(0.32)
|
—
|
(0.32)
|
6.93
|
(1.13)
|
548,097
|
0.70(d)
|
0.71(d)
|
0.67
|
4.47
|
43
|
|
Year
ended
08/31/21
|
6.93
|
0.27
|
0.42
|
0.69
|
(0.29)
|
—
|
(0.29)
|
7.33
|
10.10
|
484,494
|
0.73(d)
|
0.73(d)
|
0.68
|
3.77
|
76
|
|
Year
ended
08/31/20
|
7.39
|
0.33
|
(0.41)
|
(0.08)
|
(0.34)
|
(0.04)
|
(0.38)
|
6.93
|
(0.99)
|
652,453
|
0.71(d)
|
0.72(d)
|
0.64
|
4.69
|
55
|
|
Year
ended
08/31/19
|
7.56
|
0.38
|
(0.17)
|
0.21
|
(0.38)
|
—
|
(0.38)
|
7.39
|
2.86
|
812,446
|
0.74(d)
|
0.74(d)
|
0.69
|
5.05
|
55
|
|
Year
ended
08/31/18
|
7.55
|
0.34
|
0.02
|
0.36
|
(0.35)
|
—
|
(0.35)
|
7.56
|
4.83
|
614,302
|
0.73(d)
|
0.74(d)
|
—
|
4.49
|
51
|
|
| |||||||||||||||
|
(a)
|
Calculated
using average shares outstanding. |
|
(b)
|
Includes
adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value
for financial reporting purposes and the returns
based
upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges
and is not annualized for periods less than one
year,
if applicable. |
|
(c)
|
Portfolio
turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
|
(d)
|
Ratio
includes line of credit expense of 0.03%, 0.05%, 0.07%, 0.05% and 0.05% for the years ended August 31, 2022, 2021, 2020, 2019 and 2018,
respectively. |
16 Invesco
Floating Rate ESG 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
|
1.06%
|
1.07%
|
1.07%
|
1.07%
|
1.07%
|
1.07%
|
1.07%
|
1.07%
|
1.07%
|
1.07%
|
|
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 |
1.34%
|
5.32%
|
9.46%
|
13.77%
|
18.24%
|
22.88%
|
27.71%
|
32.73%
|
37.95%
|
43.37%
|
|
End
of Year Balance |
$10,134.15
|
$10,532.42
|
$10,946.35
|
$11,376.54
|
$11,823.64
|
$12,288.30
|
$12,771.23
|
$13,273.14
|
$13,794.78
|
$14,336.91
|
|
Estimated
Annual Expenses |
$355.39
|
$110.57
|
$114.91
|
$119.43
|
$124.12
|
$129.00
|
$134.07
|
$139.34
|
$144.81
|
$150.50
|
|
| ||||||||||
|
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
|
1.06%
|
1.07%
|
1.07%
|
1.07%
|
1.07%
|
1.07%
|
1.07%
|
1.07%
|
1.07%
|
1.07%
|
|
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 |
3.94%
|
8.02%
|
12.27%
|
16.68%
|
21.27%
|
26.03%
|
30.99%
|
36.13%
|
41.48%
|
47.05%
|
|
End
of Year Balance |
$10,394.00
|
$10,802.48
|
$11,227.02
|
$11,668.24
|
$12,126.81
|
$12,603.39
|
$13,098.70
|
$13,613.48
|
$14,148.49
|
$14,704.53
|
|
Estimated
Annual Expenses |
$108.09
|
$113.40
|
$117.86
|
$122.49
|
$127.30
|
$132.31
|
$137.51
|
$142.91
|
$148.53
|
$154.36
|
|
| ||||||||||
|
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
|
1.56%
|
1.57%
|
1.57%
|
1.57%
|
1.57%
|
1.57%
|
1.57%
|
1.57%
|
1.07%
|
1.07%
|
|
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 |
3.44%
|
6.99%
|
10.66%
|
14.45%
|
18.38%
|
22.44%
|
26.64%
|
30.98%
|
36.13%
|
41.48%
|
|
End
of Year Balance |
$10,344.00
|
$10,698.80
|
$11,065.77
|
$11,445.32
|
$11,837.90
|
$12,243.94
|
$12,663.91
|
$13,098.28
|
$13,613.04
|
$14,148.03
|
|
Estimated
Annual Expenses |
$158.68
|
$165.19
|
$170.85
|
$176.71
|
$182.77
|
$189.04
|
$195.53
|
$202.23
|
$142.91
|
$148.52
|
|
| ||||||||||
|
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
|
1.31%
|
1.32%
|
1.32%
|
1.32%
|
1.32%
|
1.32%
|
1.32%
|
1.32%
|
1.32%
|
1.32%
|
|
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 |
3.69%
|
7.51%
|
11.46%
|
15.56%
|
19.82%
|
24.23%
|
28.80%
|
33.54%
|
38.45%
|
43.55%
|
|
End
of Year Balance |
$10,369.00
|
$10,750.58
|
$11,146.20
|
$11,556.38
|
$11,981.66
|
$12,422.58
|
$12,879.73
|
$13,353.71
|
$13,845.12
|
$14,354.62
|
|
Estimated
Annual Expenses |
$133.42
|
$139.39
|
$144.52
|
$149.84
|
$155.35
|
$161.07
|
$167.00
|
$173.14
|
$179.51
|
$186.12
|
|
| ||||||||||
|
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
|
0.81%
|
0.82%
|
0.82%
|
0.82%
|
0.82%
|
0.82%
|
0.82%
|
0.82%
|
0.82%
|
0.82%
|
|
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 |
4.19%
|
8.55%
|
13.08%
|
17.81%
|
22.73%
|
27.86%
|
33.21%
|
38.78%
|
44.58%
|
50.62%
|
|
End
of Year Balance |
$10,419.00
|
$10,854.51
|
$11,308.23
|
$11,780.92
|
$12,273.36
|
$12,786.39
|
$13,320.86
|
$13,877.67
|
$14,457.76
|
$15,062.09
|
|
Estimated
Annual Expenses |
$82.70
|
$87.22
|
$90.87
|
$94.67
|
$98.62
|
$102.74
|
$107.04
|
$111.51
|
$116.18
|
$121.03
|
|
| ||||||||||
|
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
|
0.79%
|
0.80%
|
0.80%
|
0.80%
|
0.80%
|
0.80%
|
0.80%
|
0.80%
|
0.80%
|
0.80%
|
|
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 |
4.21%
|
8.59%
|
13.15%
|
17.90%
|
22.85%
|
28.01%
|
33.39%
|
38.99%
|
44.83%
|
50.91%
|
|
End
of Year Balance |
$10,421.00
|
$10,858.68
|
$11,314.75
|
$11,789.97
|
$12,285.14
|
$12,801.12
|
$13,338.77
|
$13,899.00
|
$14,482.75
|
$15,091.03
|
|
Estimated
Annual Expenses |
$80.66
|
$85.12
|
$88.69
|
$92.42
|
$96.30
|
$100.35
|
$104.56
|
$108.95
|
$113.53
|
$118.30
|
|
| ||||||||||
|
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
|
0.72%
|
0.73%
|
0.73%
|
0.73%
|
0.73%
|
0.73%
|
0.73%
|
0.73%
|
0.73%
|
0.73%
|
|
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 |
4.28%
|
8.73%
|
13.38%
|
18.22%
|
23.26%
|
28.53%
|
34.02%
|
39.74%
|
45.71%
|
51.93%
|
|
End
of Year Balance |
$10,428.00
|
$10,873.28
|
$11,337.56
|
$11,821.68
|
$12,326.46
|
$12,852.80
|
$13,401.62
|
$13,973.87
|
$14,570.55
|
$15,192.71
|
|
Estimated
Annual Expenses |
$73.54
|
$77.75
|
$81.07
|
$84.53
|
$88.14
|
$91.90
|
$95.83
|
$99.92
|
$104.19
|
$108.64
|
|
| ||||||||||
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.
17 Invesco
Floating Rate ESG 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 all of the Invesco Funds and their share classes that have different fees and expenses.
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 |
|
|
▪ 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) |
A-1 The
Invesco Funds
MCF—12/22
|
Share
Classes |
|
|
|
|
|
Class
A |
Class
C |
Class
R |
Class
Y |
Class
R5 and R6 |
|
|
▪ 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 International Core Equity 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 a specific
Fund may make additional purchases into Class AX and CX, respectively, of such specific Fund. All references in this “Shareholder
Account Information” section of this prospectus to Class A, C or R shares of the Invesco Funds shall include Class AX
(excluding Invesco Government Money Market Fund), or CX shares, respectively, of the Invesco Funds, unless otherwise noted. All references
in this “Shareholder Account Information” section of this prospectus to Invesco Cash Reserve Shares of Invesco Government
Money Market Fund shall include Class AX shares of Invesco Government Money Market Fund, unless otherwise noted.
Class P
Shares
In
addition to the other share classes discussed herein, the Invesco Summit Fund offers Class P shares, which were historically sold
only through the AIM Summit Investors Plans I and II (each a Plan and, collectively, the Summit Plans). Class P shares are sold with
no initial sales charge and have a 12b-1 fee of 0.10%. However, Class P shares are not sold to members of the general public. Only
shareholders who had accounts in the Summit Plans at the close of business on December 8, 2006 may purchase Class P shares and
only until the total of their combined investments in the Summit Plans and in Class P shares directly equals the face amount of their
former Plan under the 30 year extended investment option. The face amount of a Plan is the combined total of all scheduled monthly
investments under the Plan. For a Plan with a scheduled monthly investment of $100.00, the face amount would have been $36,000.00 under
the 30 year extended investment option.
Class R
Shares
Class R
shares are intended for 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 (except for the Invesco Master Loan Fund) are available for use by Employer Sponsored Retirement and Benefit
Plans, held either at the plan level or through omnibus accounts, that generally process no more than one net redemption and one net purchase
transaction each day.
Class
R5 and R6 shares of the Funds are also available to institutional investors.
Institutional investors are: banks, trust companies, collective trust funds, entities acting for the account of a public entity (e.g.,
Taft-Hartley funds, states, cities or government agencies), funds of funds or other pooled investment vehicles, 529 college savings plans,
financial intermediaries and corporations investing for their own accounts, endowments and foundations. For information regarding investment
minimums for Class R5 and R6 shares, please see “Minimum Investments” below.
Class
R6 shares of the Funds are also available through an intermediary that
has agreed with Invesco Distributors, Inc. to make such shares
A-2 The
Invesco Funds
available
for use in retail omnibus accounts that generally process no more than one net redemption and one net purchase transaction each day.
The
Invesco Master Loan Fund is only available for purchase by other Funds
in the Invesco fund family and other Invesco pooled investment vehicles.
Shareholders
eligible to purchase Class R6 Shares must meet the requirements
specified by their intermediary. Not all intermediaries offer Class R6 Shares to their customers.
Class S
Shares
Class S
shares are limited to investors who purchase shares with the proceeds received from a systematic contractual investment plan redemption
within the 12 months prior to purchasing Class S shares, and who purchase through an approved financial intermediary that has
an agreement with the distributor to sell Class S shares. Class S shares are not otherwise sold to members of the general public.
An investor purchasing Class S shares will not pay an initial sales charge. The investor will no longer be eligible to purchase additional
Class S shares at that point where the value of the contributions to the prior systematic contractual investment plan combined with
the subsequent Class S share contributions equals the face amount of what would have been the investor’s systematic contractual
investment plan under the 30-year investment option. The face amount of a systematic contractual investment plan is the combined total
of all scheduled monthly investments under that plan. For a plan with a scheduled monthly investment of $100.00, the face amount would
have been $36,000.00 under the 30-year extended investment option.
Class Y
Shares
Class
Y shares are available to (i) investors who purchase through an account that is charged an asset-based fee or commission by a financial
intermediary, including through brokerage platforms, where a broker is acting as the investor’s agent, that may require the payment
by the investor of a commission and/or other form of compensation to that broker, (ii) endowments, foundations, or Employer Sponsored
Retirement and Benefit Plans (with the exception of “Solo 401(k)” Plans and 403(b) custodial accounts held directly at Invesco),
(iii) banks or bank trust departments acting on their own behalf or as trustee or manager for trust accounts, or (iv) any current, former
or retired trustee, director, officer or employee (or immediate family members of a current, former or retired trustee, director, officer
or employee) of any Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
Subject
to any conditions or limitations imposed on the servicing of Class
Y shares by your financial adviser, if you received Class Y shares as a result of a merger or reorganization of a predecessor fund into
any of the Funds, you will be permitted to make additional Class Y share purchases. In addition, you will be permitted to make additional
Class Y shares purchases if you owned Class Y shares in a “Solo 401(k)” Plan or 403(b) custodial account held directly at
Invesco if you held such shares in your account on or prior to May 24, 2019.
Investor
Class Shares
Investor
Class shares are sold with no initial sales charge and have a maximum 12b-1 fee of 0.25%. Only the following persons may purchase Investor
Class shares:
◾
Investors
who established accounts prior to April 1, 2002, in Investor Class shares with Invesco Distributors, Inc. (Invesco Distributors) who have
continuously maintained an account in Investor Class shares (this includes anyone listed in the registration of an account, such as a
joint owner, trustee or custodian, and immediate family members of such persons) without a designated intermediary. These investors are
referred to as “Investor Class grandfathered investors.”
◾
Customers
of a financial intermediary that has had an agreement with the Funds’ distributor or any Funds that offered Investor Class shares
prior to April 1, 2002, that has continuously maintained such agreement. These intermediaries are referred to as “Investor
Class grandfathered intermediaries.”
◾
Any
current, former or retired trustee, director, officer or employee (or immediate family member of a current, former or retired trustee,
director, officer or employee) of any Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
For
additional shareholder eligibility requirements with respect to Invesco
Premier Portfolio, please see “Shareholder Account Information – Purchasing Shares and Shareholder Eligibility – Invesco
Premier Portfolio.”
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.
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 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
A-4 The
Invesco Funds
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.
Merrill
Lynch
Shareholders
purchasing Fund shares through a Merrill
Lynch platform
or account will be eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at Merrill Lynch
◾
Employer-sponsored
retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to fund those plans,
provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the plan;
◾
Shares
purchased by a 529 Plan (does not include 529 Plan unit or 529-specific share classes or equivalents);
◾
Shares
purchased through a Merrill Lynch affiliated investment advisory program;
◾
Shares
exchanged due to the holdings moving from a Merrill Lynch affiliated investment advisory program to a Merrill Lynch brokerage (non-advisory)
account pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers;
◾
Shares
purchased by third party investment advisors on behalf of their advisory clients through Merrill Lynch’s platform;
◾
Shares
of funds purchased through the Merrill Edge Self-Directed platform (if applicable);
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not
any other fund within the fund family);
◾
Shares
exchanged from Class C (i.e.
level-load) shares of the same fund pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers;
◾
Employees
and registered representatives of Merrill Lynch or its affiliates and their family members;
◾
Directors
or Trustees of the Fund, and employees of the Fund’s investment adviser or any of its affiliates, as described in this prospectus;
and
◾
Eligible
shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days
following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to
a front-end or deferred sales load (known as Rights of Reinstatement). Automated transactions (i.e. systematic purchases and withdrawals)
and purchases made after shares are automatically sold to pay Merrill Lynch’s account maintenance fees are not eligible for reinstatement.
◾
CDSC
Waivers on A and C Shares available at Merrill Lynch
◾
Death
or disability of the shareholder;
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund’s prospectus;
◾
Return
of excess contributions from an IRA Account;
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts pursuant to the Internal Revenue Code;
◾
Shares
sold to pay Merrill Lynch fees but only if the transaction is initiated by Merrill Lynch;
◾
Shares
acquired through a right of reinstatement;
◾
Shares
held in retirement brokerage accounts, that are converted to a lower cost share class due to transfer to a fee based account or platform
(applicable to A and C shares only); and
◾
Shares
received through an exchange due to the holdings moving from a Merrill Lynch affiliated investment advisory program to a Merrill Lynch
brokerage (non-advisory) account pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers.
◾
Front-end
load Discounts Available at Merrill Lynch: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this prospectus;
◾
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts as described in the Fund’s prospectus will be automatically
calculated based on the aggregated holding of fund family assets held by accounts (including 529 program holdings, where applicable) within
the purchaser’s household at Merrill Lynch. Eligible fund family assets not held at Merrill Lynch may be included in the ROA calculation
only if the shareholder notifies his or her financial advisor about such assets; and
◾
Letters
of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Merrill Lynch, over
a 13-month period of time (if applicable).
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).
A-5 The
Invesco Funds
Morgan
Stanley Wealth Management
Shareholders
purchasing Fund shares through a Morgan Stanley
Wealth Management transactional brokerage account will be eligible
only for the following front-end sales charge waivers with respect to Class A shares, which may differ from and may be more limited than
those disclosed elsewhere in this Fund’s Prospectus or SAI.
◾
Front-end
Sales Charge Waivers on Class A Shares available at Morgan Stanley Wealth Management
◾
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and
defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs, SAR-SEPs
or Keogh plans;
◾
Morgan
Stanley employee and employee-related accounts according to Morgan Stanley’s account linking rules;
◾
Shares
purchased through reinvestment of dividends and capital gains distributions when purchasing shares of the same fund;
◾
Shares
purchased through a Morgan Stanley self-directed brokerage account;
◾
Class
C (i.e., level-load) shares that are no longer subject to a contingent deferred sales charge and are converted to Class A shares of the
same fund pursuant to Morgan Stanley Wealth Management’s share class conversion program; and
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (i) the repurchase occurs within 90 days following the
redemption, (ii) the redemption and purchase occur in the same account, and (iii) redeemed shares were subject to a front-end or deferred
sales charge.
Raymond
James Financial Services, Inc.
Shareholders
purchasing Fund shares through a Raymond
James Financial Services, Inc., Raymond James affiliates and each
entity’s affiliates (Raymond James) platform or account, or through an introducing broker-dealer or independent registered investment
adviser for which Raymond James provides trade execution, clearance, and/or custody services, will be eligible only for the following
load waivers (front-end sales charge waivers and contingent deferred, or back-end, sales charge waivers) and discounts, which may differ
from those disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
sales load waivers on Class A shares available at Raymond James
◾
Shares
purchased in an investment advisory program.
◾
Shares
purchased within the same fund family through a systematic reinvestment of capital gains distributions and dividend distributions.
◾
Employees
and registered representatives of Raymond James or its affiliates and their family members as designated by Raymond James.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (known as Rights of Reinstatement).
◾
A
shareholder in the Fund’s Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate
share class) of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures
of Raymond James.
◾
CDSC
Waivers on Classes A and C shares available at Raymond James
◾
Death
or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the fund’s prospectus.
◾
Return
of excess contributions from an IRA Account.
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based
on applicable IRS regulations as described in the fund’s prospectus.
◾
Shares
sold to pay Raymond James fees but only if the transaction is initiated by Raymond James.
◾
Shares
acquired through a right of reinstatement.
◾
Front-end
load discounts available at Raymond James: breakpoints, rights of accumulation, and/or letters of intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of
fund family assets held by accounts within the purchaser’s household at Raymond James. Eligible fund family assets not held at Raymond
James may be included in the calculation of rights of accumulation only if the shareholder notifies his or her financial advisor about
such assets.
◾
Letters
of intent which allow for breakpoint discounts based on anticipated purchases within a fund family, over a 13-month time period. Eligible
fund family assets not held at Raymond James may be included in the calculation of letters of intent only if the shareholder notifies
his or her financial advisor about such assets.
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.
A-6 The
Invesco Funds
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.
◾
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.
Oppenheimer
& Co. Inc. (“OPCO”)
Shareholders
purchasing Fund shares through an OPCO
platform or account are eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund's prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at OPCO
◾
Employer-sponsored
retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to
fund
those plans, provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the
plan
◾
Shares
purchased by or through a 529 Plan
◾
Shares
purchased through an OPCO affiliated investment advisory program
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not
any other fund within the fund family)
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (known as Rights of Reinstatement).
◾
A
shareholder in the Fund's Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate share
class) of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures of OPCO
◾
Employees
and registered representatives of OPCO or its affiliates and their family members
◾
Directors
or Trustees of the Fund, and employees of the Fund's investment adviser or any of its affiliates, as described in this prospectus
◾
CDSC
Waivers on A and C Shares available at OPCO
◾
Death
or disability of the shareholder
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund's prospectus
◾
Return
of excess contributions from an IRA Account
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based
on applicable IRS regulations as described in the prospectus
◾
Shares
sold to pay OPCO fees but only if the transaction is initiated by OPCO Shares acquired through a right of reinstatement
◾
Front-end
load Discounts Available at OPCO: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding
of fund family assets held by accounts within the purchaser's household at OPCO. Eligible fund family assets not held at OPCO may be included
in the ROA calculation only if the shareholder notifies his or her financial advisor about such assets.
Robert
W. Baird & Co. Incorporated (“Baird”)
Shareholders
purchasing fund shares through a Baird
platform or account will only be eligible for the following sales charge waivers (front-end sales charge waivers and CDSC waivers) and
discounts, which may differ from those disclosed elsewhere in this prospectus or the SAI.
◾
Front-End
Sales Charge Waivers on Class A-shares Available at Baird
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund.
◾
Shares
purchased by employees and registered representatives of Baird or its affiliate and their family members as designated by Baird.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales charge (known as rights of reinstatement).
◾
A
shareholder in the Fund’s Class C Shares will have their shares converted at net asset value to Class A shares of the fund if the
shares are no longer subject to CDSC and the conversion is in line with the policies and procedures of Baird.
◾
Employer-sponsored
retirement plans or charitable accounts in a transactional brokerage account at Baird, including 401(k) plans, 457 plans, employer-sponsored
403(b) plans, profit sharing and money
A-7 The
Invesco Funds
purchase
pension plans and defined benefit plans. For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs,
Simple IRAs or SAR-SEPs.
◾
CDSC
Waivers on Classes A and C shares Available at Baird
◾
Shares
sold due to death or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund’s Prospectus.
◾
Return
of excess contributions from an IRA Account.
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching age 72 as described in
the Fund’s prospectus.
◾
Shares
sold to pay Baird fees but only if the transaction is initiated by Baird.
◾
Shares
acquired through a right of reinstatement.
◾
Front-End
Sales Charge Discounts Available at Baird: Breakpoints, Rights of Accumulation and/or letters of intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of
fund family assets held by accounts within the purchaser’s household at Baird. Eligible fund family assets not held at Baird may
be included in the rights of accumulation calculation only if the shareholder notifies his or her financial advisor about such assets.
◾
Letters
of Intent (LOI) allow for breakpoint discounts based on anticipated purchases of within a fund family through Baird, over a 13-month period
of time.
Edward
D. Jones & Co., L.P. (“Edward Jones”)
Policies
Regarding Transactions Through Edward Jones
The
following information has been provided by Edward Jones:
The
following information supersedes prior information with respect to transactions
and positions held in fund shares through an Edward Jones system. Shareholders purchasing Fund shares through the Edward
Jones commission
and fee-based platforms will be eligible for the following load waivers (front- end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund's prospectus or statement of additional
information (“SAI”). 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 (including holdings of 529 Plans where Invesco serves as primary distributor), 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.
◾
Front-end
sales load waivers on Class A shares available at Edward Jones
◾
Associates
of Edward Jones and its affiliates and their family members who are 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: 1) the proceeds are
from the sale of shares within 60 days of the purchase, and 2) the sale and purchase are made in the same share class and the same account
or the purchase is made in an individual retirement account with proceeds from liquidations in a non-retirement account.
◾
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.
◾
CDSC
Waivers on Classes A and C shares available at Edward Jones
◾
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
sold 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 the qualified age based on applicable IRS regulations.
◾
Shares
sold 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 Minimum Balances, as described below.
◾
Front-end
load discounts available at Edward Jones: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoint
pricing, otherwise known as volume pricing, at dollar thresholds as described in the prospectus.
◾
Rights
of Accumulation (“ROA”) which entitles the shareholder to the applicable sales charge on a purchase of Class A shares will
be determined by taking into account all share classes (except certain money market funds and any assets held in group retirement plans)
of Invesco Funds (including holdings of 529 Plans where Invesco serves as primary distributor) 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).
◾
Letters
of Intent (“LOI”) allow shareholders to receive 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.
Other
Important Information Regarding Transactions Through Edward
Jones
Minimum
Purchase Amounts
•
Initial
purchase minimum: $250
•
Subsequent
purchase minimum: none
A-8 The
Invesco Funds
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.
Stifel,
Nicolaus & Company (“Stifel”)
Shareholders
purchasing Fund shares through a Stifel
platform or account will be eligible only for the following front-end sales charge waivers and discounts, which may differ from those
disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at Stifel: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this 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 Stifel. Eligible
fund family assets not held at Stifel may be included in the ROA calculation only if the shareholder notifies his or her financial advisor
about such assets; and
◾
Letters
of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Stifel, over a 13-month
period of time (if applicable).
◾
Shares
converted from Class C (i.e. level-load) shares of the same fund pursuant to Stifel policies relating to sales load discounts and waivers.
PFS
Investments Inc. (“PFSI”)
Policies
Regarding Transactions Through PFSI
The
following information supersedes all prior information with respect to transactions and positions held in fund shares purchased through
PFSI and held on the mutual fund platform of its affiliate, Primerica Shareholder Services (“PSS”). Clients of PFSI (also
referred to as “shareholders”) purchasing fund shares on the PSS platform are eligible only for the following share classes,
sales charge discounts (also referred to as “breakpoints”) and waivers, which can differ from share classes, discounts and
waivers described elsewhere in this prospectus or the related statement of additional information (“SAI”) or through another
broker-dealer. In all instances, it is the shareholder’s responsibility to inform PFSI at the time of a purchase of all holdings
of Invesco Funds on the PSS platform, or other facts qualifying the purchaser for discounts or waivers. PFSI may request reasonable documentation
of such facts, and condition the granting of any discount or waiver on the timely receipt of such documents. Shareholders should contact
PSS if they have questions regarding their eligibility for these discounts and waivers.
Share
Classes
◾
Class
A shares: in non-retirement accounts, individual retirement accounts (IRA), SEP IRAs, SIMPLE IRAs, Keogh Plans, and all other account
types unless expressly provided for below.
◾
Class
C shares: only in accounts with existing Class C share holdings.
Breakpoints
◾
Breakpoint
pricing at dollar thresholds as described in the prospectus of the fund you are purchasing.
Rights
of Accumulation (“ROA”)
◾
The
applicable sales charge on a purchase of Class A shares is determined by taking into account all share classes (except any assets held
in group retirement plans) of Invesco Funds held by the shareholder on the PSS Platform. The inclusion of eligible fund family assets
in the ROA calculation is dependent on the shareholder notifying PFSI of such assets at the time of calculation. Shares of money market
funds are
included
only if such shares were acquired in exchange for shares of another Invesco Fund purchased with a sales charge. No shares of Invesco Funds
held by the shareholder away from the PSS platform will be granted ROA with shares of any Invesco Fund purchased on the PSS platform.
◾
Any
SEP IRA plan, any SIMPLE IRA plan or any Payroll Deduction plan (“PDP”) on the PSS platform will be defaulted to plan-level
grouping for purposes of ROA, which allows each participating employee ROA with all other eligible shares held in plan accounts on the
PSS platform. At any time, a participating employee may elect to exercise a one-time option to change grouping for purposes of ROA to
shareholder- level grouping, which allows the plan account of the electing employee ROA with her other eligible holdings on the PSS platform,
but not with all other eligible participant holdings in the plan. Eligible shares held in plan accounts electing shareholder-level grouping
will not be available for purposes of ROA to plan accounts electing plan-level grouping.
◾
ROA
is determined by calculating the higher of cost minus redemptions or current market value (current shares x NAV).
Letter
of Intent (“LOI”)
◾
By
executing a LOI, shareholders can receive the sales charge and breakpoint discounts for purchases shareholders intend to make over a 13-month
period through PFSI, from the date PSS receives the LOI. The purchase price of the LOI is determined by calculating the higher of cost
or market value of qualifying holdings at LOI initiation in combination with the dollar amount the shareholder intends to invest over
a 13-month period to arrive at total investment for purposes of determining any breakpoint discount and the applicable front-end sales
charge. Each purchase the shareholder makes during that 13-month period will receive the sales charge and breakpoint discount that applies
to the projected total investment.
◾
Only
holdings of Invesco Funds on the PSS platform are eligible for inclusion in the LOI calculation and the shareholder must notify PFSI of
all eligible assets at the time of calculation.
◾
Purchases
made before the LOI is received by PSS are not adjusted under the LOI, and the LOI will not reduce any sales charge previously paid. Sales
charges will be automatically adjusted if the total purchases required by the LOI are not met.
◾
If
an employer maintaining a SEP IRA plan, SIMPLE IRA plan or non-IRA PDP on the PSS platform has elected to establish or change ROA for
the accounts associated with the plan to a plan-level grouping, LOIs will also be at the plan-level and may only be established by the
employer. LOIs are not available to PDP IRA plans on the PSS platform with plan-level grouping for purposes of ROA, but are available
to any participating employee that elects shareholder-level grouping for purposes of ROA.
Sales
Charge Waivers
Sales
charges are waived for the following shareholders and in the following
situations:
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment.
◾
Shares
purchased with the proceeds of redeemed shares of the same fund family so long as the following conditions are met: 1) the proceeds are
from the sale of shares within 90 days of the purchase, 2) the sale and purchase are made in the same share class and the same account
or the purchase is made in an individual retirement account with proceeds from liquidations in a non-retirement account, and 3) the redeemed
shares were subject to a front-end or deferred sales load, Automated transactions (i.e. systematic purchases and withdrawals), full or
partial transfers or rollovers of retirement accounts, and purchases made after shares are automatically sold to pay account maintenance
fees are not eligible for this sales charge waiver.
◾
Shares
exchanged into Class A shares from another share class so long as the exchange is into the same fund and was initiated at the discretion
of PFSI. PFSI is responsible for any remaining CDSC due to the fund company, if applicable. Any future purchases are subject to the applicable
sales charge as disclosed in the prospectus.
Policies
Regarding Fund Purchases Through PFSI That Are Not Held
on the PSS Platform
A-9 The
Invesco Funds
◾
Class
R shares
are available through PFSI only in 401(k) plans covering a business owner with no employees, commonly referred to as a one-participant
401(k) plan or solo 401(k).
UBS
Financial Services Inc. (“UBS”)
Pursuant
to an agreement with the Distributor, UBS may offer Class Y
shares
to its retail brokerage clients whose shares are held in omnibus
accounts at UBS, or its designee. For these clients, UBS may charge commissions or transaction fees with respect to brokerage transactions
in Class Y shares. The
minimum investment for Class Y shares is waived for transactions through such brokerage platforms at UBS. Please contact your UBS representative
for more information about these fees and other eligibility requirements.
Qualifying
for Reduced Sales Charges and Sales Charge Exceptions
The
following types of accounts qualify for reduced sales charges or sales charge exceptions under ROAs and LOIs:
1.
an
individual account owner;
2.
immediate
family of the individual account owner (which includes the individual’s spouse or domestic partner; the individual’s children,
step-children or grandchildren; the spouse or domestic partner of the individual’s children, step-children or grandchildren; the
individual’s parents and step-parents; the parents or step-parents of the individual’s spouse or domestic partner; the individual’s
grandparents; and the individual’s siblings);
3.
a
Retirement and Benefit Plan so long as the plan is established exclusively for the benefit of an individual account owner; and
4.
a
Coverdell Education Savings Account (Coverdell ESA), maintained pursuant to Section 530 of the Code (in either case, the account
must be established by an individual account owner or have an individual account owner named as the beneficiary thereof).
Alternatively,
an Employer Sponsored Retirement and Benefit Plan (but not including
plans utilizing the Invesco 403(b)(7) Custodial Account program, or the individual custodial accounts thereunder) or Employer Sponsored
IRA may be eligible to purchase shares pursuant to a ROA at the plan level, and receive a reduced applicable initial sales charge for
a new purchase based on the total value of the current purchase and the value of other shares owned by the plan’s participants if:
a)
the
employer or plan sponsor submits all contributions for all participating employees in a single contribution transmittal (the Invesco Funds
will not accept separate contributions submitted with respect to individual participants);
b)
each
transmittal is accompanied by checks or wire transfers; and
c)
if
the Invesco Funds are expected to carry separate accounts in the names of each of the plan participants, (i) the employer or plan
sponsor notifies Invesco Distributors or its designee in writing that the separate accounts of all plan participants should be linked,
and (ii) all new participant accounts are established by submitting an appropriate Account Application on behalf of each new participant
with the contribution transmittal.
Participant
accounts in a retirement plan that are eligible to purchase shares
pursuant to a ROA at the plan level may not also be considered eligible to do so for the benefit of an individual account owner.
In
all instances, it is the purchaser’s responsibility to notify Invesco Distributors
or its designee of any relationship or other facts qualifying the purchaser as eligible for reduced sales charges and/or sales charge
exceptions and to provide all necessary documentation of such facts in order to qualify for reduced sales charges or sales charge exceptions.
For additional information on linking accounts to qualify for ROA or LOI, please see the Funds’ SAI.
Purchases
of Class A shares of Invesco Conservative Income Fund, Invesco
Government Money Market Fund and Invesco Short Term Municipal Fund, Class AX shares or Invesco Cash Reserve Shares of Invesco Government
Money Market Fund and Invesco U.S. Government Money Portfolio, as applicable, or Investor Class shares of any Fund will not be
taken
into account in determining whether a purchase qualifies for a reduction in initial sales charges pursuant to ROAs or LOIs.
Rights
of Accumulation
Purchasers
that qualify for ROA may combine new purchases of Class A shares of a Fund with shares of the Fund or other open-end Invesco Funds
currently owned (Class A, C, IB, IC, P, R, S or Y) for the purpose of qualifying for the lower initial sales charge rates that apply
to larger purchases. The applicable initial sales charge for the new purchase will be based on the total of your current purchase and
the value of other shares owned based on their current public offering price. The Funds’ transfer agent may automatically link certain
accounts registered in the same name with the same taxpayer identification number for the purpose of qualifying you for lower initial
sales charge rates.
Letters
of Intent
Under
a LOI, you commit to purchase a specified dollar amount of Class A shares of one or more Funds during a 13-month period. The amount
you agree to purchase determines the initial sales charge you pay. If the full amount committed to in the LOI is not invested by the end
of the 13-month period, your account will generally be assessed the higher initial sales charge that would normally be applicable to the
total amount actually invested. Shares equal in value to 5% of the intended purchase amount will be held in escrow for this purpose.
Reinstatement
Following Redemption
If
you redeem any class of shares of a Fund, you may reinvest all or a portion of the proceeds from the redemption (and may include that
amount necessary to acquire a fractional Share to round off his or her purchase to the next full Share) in the same share class of any
Fund within 180 days of the redemption without paying an initial sales charge. Class P, S, and Y redemptions may be reinvested into Class
A shares without an initial sales charge.
This
reinstatement privilege does not apply to a purchase made through a
regularly scheduled automatic investment plan, such as a purchase by a regularly scheduled payroll deduction or transfer from a bank account.
This
reinstatement privilege shall be suspended for the period of time in which
a purchase block is in place on a shareholder’s account. Please see “Purchase Blocking Policy” discussed below.
In
order to take advantage of this reinstatement privilege, you must inform
your financial adviser or the Funds’ transfer agent that you wish to do so at the time of your reinvestment.
Contingent
Deferred Sales Charges (CDSCs)
CDSCs
on Class A Shares and Invesco Cash Reserve Shares
Any
shares of a Large Purchase of Class A shares redeemed prior to 18 months after the date of purchase will be subject to a CDSC of 1% with
the exception of Class A shares of Invesco Conservative Income Fund and Invesco Short Term Municipal Fund which do not have CDSCs on redemptions.
If
Invesco Distributors pays a concession to a financial intermediary in connection
with a Large Purchase of Class A shares by an Employer Sponsored Retirement and Benefit Plan or SIMPLE IRA Plan, the Class A shares will
be subject to a 1% CDSC if all of the Employer Sponsored Retirement and Benefit Plan’s or SIMPLE IRA’s shares are redeemed
within one year from the date of initial purchase.
If
you acquire Invesco Cash Reserve Shares or Class A shares of Invesco
Government Money Market Fund or Invesco Cash Reserve Shares of Invesco U.S. Government Money Portfolio through an exchange involving Class
A shares that were subject to a CDSC, the shares acquired as a result of the exchange will continue to be subject to that same CDSC.
CDSCs
on Class C Shares
Class
C shares are subject to a CDSC; however, the CDSC shall not apply to the purchases of Class C shares where the selling broker-dealer was
not paid a commission at the time of purchase. If you redeem your shares during the first year since your purchase has been made you will
be
A-10 The
Invesco Funds
assessed
a CDSC as disclosed in the “Fees and Expenses - Shareholder Fees” table in the prospectus, unless you qualify for one of the
CDSC exceptions outlined below.
CDSCs
on Class C Shares – Employer Sponsored Retirement and Benefit Plans and Employer Sponsored IRAs
Class
C shares are subject to a 1.00% CDSC at the time of redemption if all of the Employer Sponsored Retirement and Benefit Plan’s or
Employer Sponsored IRA’s shares are redeemed within one year from the date of initial purchase.
CDSCs
on Class C Shares of Invesco Short Term Bond Fund
Effective
November 1, 2021, Class C shares of Invesco Short Term Bond Fund are subject to a CDSC. If you acquire Class C shares of any other Fund
as a result of an exchange involving Class C shares of Invesco Short Term Bond Fund that were not subject to a CDSC prior to November
1, 2021, then the shares acquired as a result of the exchange will not be subject to a CDSC.
Computing
a CDSC
The
CDSC on redemptions of shares is computed based on the lower of their original purchase price or current net asset value, net of reinvested
dividends and capital gains distributions. In determining whether to charge a CDSC, shares are accounted for on a first-in, first-out
basis, which means that you will redeem shares on which there is no CDSC first, and then shares in the order of their purchase.
CDSC
Exceptions
Investors
who own shares that are otherwise subject to a CDSC will not pay a CDSC in the following circumstances:
◾
If
you participate in the Systematic Redemption Plan and withdraw up to 12% of the value of your shares that are subject to a CDSC in any
twelve-month period.
◾
If
you redeem shares to pay account fees.
◾
If
you are the executor, administrator or beneficiary of an estate or are otherwise entitled to assets remaining in an account following
the death or post-purchase disability of a shareholder or beneficial owner and you choose to redeem those shares.
There
are other circumstances under which you may be able to redeem shares
without paying CDSCs. For additional information about such circumstances, please see the Appendix entitled “Purchase, Redemption
and Pricing of Shares” in each Fund’s SAI.
Shares
acquired through the reinvestment of dividends and distributions are
not subject to CDSCs.
The
following share classes are sold without a CDSC:
◾
Class
A2 shares of Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund
◾
Class
A shares of Invesco Government Money Market Fund
◾
Invesco
Cash Reserve Shares of Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio
◾
Investor
Class shares of any Fund
◾
Class
P shares of Invesco Summit Fund
◾
Class
R5 and R6 shares of any Fund
◾
Class
R shares of any Fund
◾
Class
S shares of Invesco Charter Fund, Invesco Select Risk: Moderately Conservative Investor Fund, Invesco Select Risk: Growth Investor Fund,
Invesco Select Risk: Moderate Investor Fund and Invesco Summit Fund
◾
Class
Y shares of any Fund
Purchasing
Shares and Shareholder Eligibility
Invesco
Premier U.S. Government Money Portfolio
For
Invesco Premier U.S. Government Money Portfolio, you may purchase shares using one of the options below. Unless the Fund closes early
on a business day, the Fund’s transfer agent will generally accept any purchase order placed until 5:00 p.m. Eastern Time on a business
day and may accept a purchase order placed until 5:30 p.m. Eastern Time on a business
day.
If you wish to place an order between 5:00 p.m. and 5:30 p.m. Eastern Time on a business day, you must place such order by telephone;
however, the Fund’s transfer agent reserves the right to reject or limit the amount of orders placed during this time. If the Fund
closes early on a business day, the Fund’s transfer agent must receive your purchase order prior to such closing time. Purchase
orders will not be processed unless the account application and purchase payment are received in good order. In accordance with the USA
PATRIOT Act, if you fail to provide all the required information requested in the current account application, your purchase order will
not be processed. Additionally, federal law requires that the Fund verifies and records your identifying information.
Invesco
Premier Portfolio
Only
accounts beneficially owned by natural persons will be permitted to retain their shares. The Fund has implemented policies and procedures
reasonably designed to limit all beneficial owners of the Fund to natural persons, and investments in the Fund are limited to accounts
beneficially owned by natural persons. Natural persons may invest in the Fund through certain tax-advantaged savings accounts, trusts
and other retirement and investment accounts, which may include, among others: participant-directed defined contribution plans; individual
retirement accounts; simplified employee pension arrangements; simple retirement accounts; custodial accounts; deferred compensation plans
for government or tax-exempt organization employees; Archer medical savings accounts; college savings plans; health savings account plans;
ordinary trusts and estates of natural persons; or certain other retirement and investment accounts with ultimate investment authority
held by the natural person beneficial owner, notwithstanding having an institutional decision maker making day-to-day decisions (e.g.,
a plan sponsor in certain retirement arrangements or an investment adviser managing discretionary investment accounts).
Further,
financial intermediaries may only submit purchase orders if they have
implemented policies and procedures reasonably designed to limit all investors on behalf of whom they submit orders to accounts beneficially
owned by natural persons. Financial intermediaries may be required to provide a written statement or other representation that they have
in place, and operate in compliance with, such policies and procedures prior to submitting purchase orders. Such policies and procedures
may include provisions for the financial intermediary to promptly report to the Fund or the transfer agent the identification of any shareholder
of the Fund that does not qualify as a natural person of whom they are aware and promptly take steps to redeem any such shareholder’s
shares of the Fund upon request by the Fund or the transfer agent, in such manner as it may reasonably request. The Fund may involuntarily
redeem any such shareholder who does not voluntarily redeem their shares.
Natural
persons may purchase shares using one of the options below. For
all classes of the Fund, other than Investor Class shares, unless the Fund closes early on a business day, the Fund’s transfer agent
will generally accept any purchase order placed until 5:00 p.m. Eastern Time on a business day and may accept a purchase order placed
until 5:30 p.m. Eastern Time on a business day. If you wish to place an order between 5:00 p.m. and 5:30 p.m. Eastern Time on a business
day, you must place such order by telephone; or send your request by a pre-arranged Liquidity Link data transmission however, the Fund’s
transfer agent reserves the right to reject or limit the amount of orders placed during this time. For Investor Class shares of the Fund,
unless the Fund closes early on a business day, the Fund’s transfer agent will generally accept any purchase order placed until
4:00 p.m. Eastern Time on a business day and may accept a purchase order placed until 4:30 p.m. Eastern Time on a business day. If you
wish to place an order between 4:00 p.m. and 4:30 p.m. Eastern Time on a business day, you must place such order by telephone; however,
the Fund’s transfer agent reserves the right to reject or limit the amount of orders placed during this time. If the Fund closes
early on a business day, the Fund’s transfer agent must receive your purchase order prior to such closing time. Purchase orders
will not be processed unless the account application and purchase payment are received in good order. In accordance with the USA PATRIOT
Act, if you fail to provide all the required information requested in the current account application, your purchase order will not be
A-11 The
Invesco Funds
processed.
Additionally, federal law requires that the Fund verify and record your identifying information.
Minimum Investments
There
are no minimum investments for Class P or S shares for fund accounts. The minimum investments for Class A, C, R, Y, Investor Class and
Invesco Cash Reserve shares for fund accounts are as follows:
|
Type
of Account |
Initial
Investment
Per
Fund |
Additional
Investments
Per
Fund |
|
Asset
or fee-based accounts managed by your financial
adviser
|
None
|
None
|
|
| ||
|
Employer
Sponsored Retirement and Benefit Plans and
Employer
Sponsored IRAs |
None
|
None
|
|
| ||
|
IRAs
and Coverdell ESAs if the new investor is
purchasing
shares through a systematic purchase plan |
$25
|
$25
|
|
| ||
|
All
other accounts if the investor is purchasing shares
through
a systematic purchase plan |
50
|
50
|
|
| ||
|
IRAs
and Coverdell ESAs |
250
|
25
|
|
| ||
|
All
other accounts |
1,000
|
50
|
|
| ||
Invesco
Distributors or its designee has the discretion to accept orders on behalf of clients for lesser amounts.
The
minimum investments for Class R5 and R6 shares are as follows:
There
is no minimum initial investment for an Employer Sponsored Retirement
and Benefit Plan investing through a retirement platform that administers at least $2.5 billion in retirement plan assets. All other Employer
Sponsored Retirement and Benefit Plans must meet a minimum initial investment of at least $1 million in each Fund in which it invests.
The
minimum initial investment in each share class for all other institutional
investors is $1 million, unless such investment is made by (i) an investment company, as defined under the 1940 Act, as amended, that
is part of a family of investment companies which own in the aggregate at least $100 million in securities, or (ii) an account established
with a 529 college savings plan managed by Invesco, in which case there is no minimum initial investment.
There
are no minimum investment amounts for Class R6 shares held through
retail omnibus accounts where the intermediary:
◾
generally
charges an asset-based fee or commission in addition to those described in this prospectus; and
◾
maintains
Class R6 shares and makes them available to retail investors.
A
financial intermediary may impose different investment minimums than
those set forth above. The Fund is not responsible for any investment minimums imposed by financial intermediaries or for notifying shareholders
of any changes to them. See “Waivers Available Through Certain Financial Intermediaries and Other Financial Intermediary-Specific
Arrangements” for more information on certain intermediary-specific investment minimums. Please consult with your financial intermediary
if you have any questions regarding their policies.
How
to Purchase Shares*
|
|
Opening
An Account |
Adding
To An Account |
|
Through
a
Financial
Adviser
or
Financial
Intermediary*
|
Contact
your financial adviser or
financial
intermediary. |
Contact
your financial adviser or
financial
intermediary. |
|
By
Mail |
Mail
completed account application
and
check to the Funds’ transfer
agent,
Invesco
Investment Services, Inc.
P.O.
Box 219078,
Kansas
City, MO 64121-9078.
The
Funds’ transfer agent does NOT
accept
the following types of
payments:
Credit Card Checks,
Temporary/Starter
Checks, Third
Party
Checks, and Cash. |
Mail
your check and the remittance
slip
from your confirmation
statement
to the Funds’ transfer
agent.
The Funds’ transfer agent
does
NOT accept the following
types
of payments: Credit Card
Checks,
Temporary/Starter Checks,
Third
Party Checks, and Cash. |
|
|
Opening
An Account |
Adding
To An Account |
|
By
Wire* |
Mail
completed account application
to
the Funds’ transfer agent. Call
the
Funds’ transfer agent at (800)
959-4246
to receive a reference
number.
Then, use the wire
instructions
provided below. |
Call
the Funds’ transfer agent to
receive
a reference number. Then,
use
the wire instructions provided
below.
|
|
Wire
Instructions |
Beneficiary
Bank ABA/Routing #: 011001234
Beneficiary
Account Number: 729639
Beneficiary
Account Name: Invesco Investment Services, Inc.
RFB:
Fund Name, Reference #
OBI:
Your Name, Account # | |
|
By
Telephone* |
Open
your account using one of the
methods
described above. |
The
Bank Account Information
option
on your completed account
application
or complete a
Systematic
Options and Bank
Information
Form. Mail the
application
or form to the Funds’
transfer
agent. Once the Funds’
transfer
agent has received the
form,
call the Funds’ transfer agent
at
the number below to place your
purchase
order. For Class R5 and
R6
shares, call the Funds’ transfer
agent
at (800) 959-4246 and wire
payment
for your purchase order in
accordance
with the wire
instructions
listed above. |
|
Automated
Investor
Line |
Open
your account using one of the
methods
described above. |
Call
the Funds’ transfer agent’s
24-hour
Automated Investor Line at
1-800-246-5463.
You may place
your
order after you have provided
the
bank instructions that will be
requested.
|
|
By
Internet |
Open
your account using one of the
methods
described above. |
Access
your account at
www.invesco.com/us.
The proper
bank
instructions must have been
provided
on your account. You may
not
purchase shares in Retirement
and
Benefit Plans on the internet. |
|
*Class
R5 and R6 shares may only be purchased through a financial intermediary or by
telephone
at (800) 959-4246. | ||
Non-retirement
retail investors, including high net worth investors investing
directly or through a financial intermediary, are not eligible for Class R5 shares. IRAs and Employer Sponsored IRAs are also not eligible
for Class R5 shares. If you hold your shares through a financial intermediary, the terms by which you purchase, redeem and exchange shares
may differ than the terms in this prospectus depending upon the policies and procedures of your financial intermediary.
Purchase
orders will not be processed unless the account application and
purchase payment are received in good order. In accordance with the USA PATRIOT Act, if you fail to provide all the required information
requested in the current account application, your purchase order will not be processed. Additionally, federal law requires that the Funds
verify and record your identifying information.
Systematic
Purchase Plan (Available for all classes except Class R5 and R6 shares)
You
can arrange for periodic investments in any of the Funds by authorizing the Funds’ transfer agent to withdraw the amount of your
investment from your bank account on a day or dates you specify and in an amount of at least $25 per Fund for IRAs and Coverdell ESAs,
and at least $50 per Fund for all other types of accounts (a Systematic Purchase Plan). You may stop the Systematic Purchase Plan at any
time by giving the Funds’ transfer agent notice ten days prior to your next scheduled withdrawal. Certain financial advisers and
other financial intermediaries may also offer systematic purchase plans.
A-12 The
Invesco Funds
Dollar
Cost Averaging (Available for all classes except Class R5 and R6 shares)
Dollar
Cost Averaging allows you to make automatic periodic exchanges, if permitted, from one Fund to another Fund or multiple other Funds. The
account from which exchanges are to be made must have a minimum balance of $5,000 before you can use this option. Exchanges will occur
on (or about) the day of the month you specify, in the amount you specify. Dollar Cost Averaging cannot be set up for the 29th through
the 31st of the month. The minimum amount you can exchange to another Fund is $50. Your financial intermediary may offer alternative dollar
cost averaging programs with different requirements.
Automatic
Dividend and Distribution Investment
Your
dividends and distributions may be paid in cash or reinvested in the same Fund or another Fund without paying an initial sales charge.
Unless
you specify otherwise, your dividends and distributions will automatically
be reinvested in the same Fund. You must comply with the following requirements to be eligible to invest your dividends and distributions
in shares of another Fund:
◾
Your
account balance in the Fund paying the dividend or distribution must be at least $5,000; and
◾
Your
account balance in the Fund receiving the dividend or distribution must be at least $500.
If
you elect to receive your distributions by check, and the distribution amount
is $25 or less, then the amount will be automatically reinvested in the same Fund and no check will be issued. If you have elected to
receive distributions by check, and the postal service is unable to deliver checks to your address of record, then your distribution election
may be converted to having all subsequent distributions reinvested in the same Fund and no checks will be issued. With respect to certain
account types, if your check remains uncashed for six months, the Fund generally reserves the right to reinvest your distribution check
in your account at the then applicable NAV and to reinvest all subsequent distributions in shares of the Fund. Such checks will be reinvested
into the same share class of the Fund. You should contact the Funds’ transfer agent to change your distribution option, and your
request to do so must be received by the Funds’ transfer agent before the record date for a distribution in order to be effective
for that distribution. No interest will accrue on amounts represented by uncashed distribution checks.
Redeeming
Shares*
The
Funds’ transfer agent or authorized intermediary, if applicable, must receive your call before the Funds’ net asset value
determination (as defined by the applicable Fund) in order to effect the redemption at that day’s net asset value.
Your
broker or financial intermediary may charge service fees for handling
redemption transactions.
|
How
to Redeem Shares | |
|
Through
a Financial
Adviser
or Financial
Intermediary*
|
Contact
your financial adviser or financial intermediary. The Funds’
transfer
agent must receive your financial adviser’s or financial
intermediary’s
call before the Funds’ net asset value determination
(as
defined by the applicable Fund) in order to effect the redemption
at
that day’s net asset value. Please contact your financial adviser or
financial
intermediary with respect to reporting of cost basis and
available
elections for your account. |
|
By
Mail |
Send
a written request to the Funds’ transfer agent which includes: |
|
|
▪ Original
signatures of all registered owners/trustees;
▪ The
dollar value or number of shares that you wish to redeem;
▪ The
name of the Fund(s) and your account number;
▪ The
cost basis method or specific shares you wish to redeem for
tax
reporting purposes, if different than the method already on
record;
and |
|
|
▪ Signature
guarantees, if necessary (see below).
The
Funds’ transfer agent may require that you provide additional
documentation,
or information, such as corporate resolutions or
powers
of attorney, if applicable. If you are redeeming from a
Retirement
and Benefit Plan, you must complete the appropriate
distribution
form. |
|
How
to Redeem Shares | |
|
By
Telephone* |
Call
the Funds’ transfer agent at 1-800-959-4246. You will be
allowed
to redeem by telephone if:
▪ Your
redemption proceeds are to be mailed to your address on
record
(and there has been no change in your address of record
within
the last 15 days) or transferred electronically to a
pre-authorized
checking account;
▪ You
can provide proper identification information;
▪ Your
redemption proceeds do not exceed $250,000 per Fund; and
▪ You
have not previously declined the telephone redemption
privilege.
|
|
|
You
may, in limited circumstances, initiate a redemption from an
Invesco
IRA by telephone. Redemptions from Employer Sponsored
Retirement
and Benefit Plans and Employer Sponsored IRAs may be
initiated
only in writing and require the completion of the appropriate
distribution
form, as well as employer authorization. You must call the
Funds’
transfer agent before the Funds’ net asset value
determination
(as defined by the applicable Fund) in order to effect
the
redemption at that day’s net asset value. |
|
Automated
Investor Line |
Call
the Funds’ transfer agent’s 24-hour Automated Investor Line at
1-800-246-5463.
You may place your redemption order after you
have
provided the bank instructions that will be requested. |
|
By
Internet |
Place
your redemption request at www.invesco.com/us. You will be
allowed
to redeem by Internet if:
▪ You
can provide proper identification information;
▪ Your
redemption proceeds do not exceed $250,000 per Fund; and
▪ You
have already provided proper bank information.
Redemptions
from Employer Sponsored Retirement and Benefit
Plans
and Employer Sponsored IRAs may be initiated only in writing
and
require the completion of the appropriate distribution form, as
well
as employer authorization. |
|
*Class
R5 and R6 shares may only be redeemed through a financial intermediary or by
telephone
at (800) 959-4246. | |
Timing
and Method of Payment
The
Funds’ transfer agent typically expects to pay redemption proceeds to redeeming shareholders within one business day after a redemption
request is received in good order, regardless of the method a Fund uses to make such payment. However, a Fund may take up to seven days
to process a redemption request. “Good order” means that all necessary information and documentation related to the redemption
request have been provided to the Funds’ transfer agent or authorized intermediary, if applicable. If your request is not in good
order, the Funds’ transfer agent may require additional documentation in order to redeem your shares. If you redeem shares recently
purchased by check or ACH, you may be required to wait up to ten calendar days before your redemption proceeds are sent. This delay is
necessary to ensure that the purchase has cleared. You can avoid the check hold period if you pay for your shares with a certified check,
a cashier’s check or a federal wire. Payment may be postponed under unusual circumstances, as allowed by the SEC, such as when the
NYSE restricts or suspends trading.
In
addition, a temporary hold may be placed on the disbursement of redemption
proceeds from an account if there is a reasonable belief that financial exploitation of a Specified Adult (as defined below) has occurred,
is occurring, has been attempted, or will be attempted. Notice of such a delay will be provided in accordance with regulatory requirements.
This temporary hold will be for an initial period of no more than 15 business days while an internal review is performed. Should the internal
review support the belief that financial exploitation has occurred, is occurring, has been attempted or will be attempted, the temporary
hold may be extended for up to 10 additional business days. Both the initial and subsequent hold on the disbursement may be terminated
or extended by a state regulator or an agency or court of competent jurisdiction. For purposes of this paragraph, the term “Specified
Adult” refers to an individual who is (a) a natural person age 65 and older, or (b) a natural person age 18 and older who is reasonably
believed to have a mental or physical impairment that renders the individual unable to protect his or her own interests.
If
you redeem by telephone, the Funds’ transfer agent will transmit the amount
of redemption proceeds electronically to your pre-authorized bank account. Redemption checks are mailed to your address of record, via
first
A-13 The
Invesco Funds
class
U.S. mail, unless you make other arrangements with the Funds’ transfer agent.
The
Funds’ transfer agent uses reasonable procedures to confirm that instructions
communicated via telephone and the Internet are genuine, and the Funds and the Funds’ transfer agent are not liable for losses arising
from actions taken in accordance with instructions that are reasonably believed to be genuine.
A
Fund typically expects to use holdings of cash and cash equivalents and
sales of portfolio assets to meet redemption requests, both regularly and in stressed market conditions. The Funds also have the ability
to redeem in kind as further described below under “Redemptions in Kind.” Certain Funds have a line of credit,
as disclosed in such Funds’ principal investment strategy
and risk disclosures that may be used to meet redemptions in stressed market conditions.
Expedited
Redemptions (for Invesco Cash Reserve Shares of Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio only)
If
you place your redemption order by telephone, before 11:30 a.m. Eastern Time and request an expedited redemption, the Funds’ transfer
agent will transmit payment of redemption proceeds on that same day via federal wire to a bank of record on your account. If the Funds’
transfer agent receives your redemption order after 11:30 a.m. Eastern Time and before the close of the customary trading session of the
NYSE, it will transmit payment on the next business day.
Suspension
of Redemptions
The
right of redemption may be suspended or the date of payment postponed when (a) trading on the NYSE is restricted, as determined by applicable
rules and regulations of the SEC, (b) the NYSE is closed for other than customary weekend and holiday closings, (c) the SEC has by order
permitted such suspension, or (d) an emergency as determined by the SEC exists making disposition of portfolio securities or the valuation
of the net assets of the Fund not reasonably practicable. With respect to Invesco Government Money Market Fund, Invesco U.S. Government
Money Portfolio, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio, in the event that the Fund, at the end
of a business day, has invested less than 10% of its total assets in weekly liquid assets or, with respect to the retail and government
money market funds, the Fund’s price per share as computed for the purpose of distribution, redemption and repurchase, rounded to
the nearest 1%, has deviated from the stable price established by the Fund’s Board of Trustees (“Board”) or the Board,
including a majority of trustees who are not interested persons as defined in the 1940 Act, determines that such a deviation is likely
to occur, and the Board, including a majority of trustees who are not interested persons of the Fund, irrevocably has approved the liquidation
of the Fund, the Fund’s Board has the authority to suspend redemptions of Fund shares.
Liquidity
Fees and Redemption Gates
For
Invesco Premier Portfolio, if the Fund’s weekly liquid assets fall below 30% of its total assets, the Board, in its discretion,
may impose liquidity fees of up to 2% of the value of the shares redeemed and/or suspend redemptions (redemption gates). In addition,
if any such Fund’s weekly liquid assets falls below 10% of its total assets at the end of any business day, the Fund must impose
a 1% liquidity fee on shareholder redemptions unless the Board determines that not doing so is in the best interests of the Fund.
Liquidity
fees and redemption gates are most likely to be imposed, if at all,
during times of extraordinary market stress. In the event that a liquidity fee or redemption gate is imposed, the Board expects that for
the duration of its implementation and the day after which such gate or fee is terminated, the Fund would strike only one net asset value
per day, at the Fund’s last scheduled net asset value calculation time.
The
imposition and termination of a liquidity fee or redemption gate will be
reported by a Fund to the SEC on Form N-CR. Such information will also be available on the Fund’s website. In addition, a Fund will
communicate such action through a supplement to its registration statement and may further communicate such action through a press release
or by other means. If a liquidity fee is applied by the Board, it will be charged on all
redemption
orders submitted after the effective time of the imposition of the fee by the Board. Liquidity fees would reduce the amount you receive
upon redemption of your shares. In the event a Fund imposes a redemption gate, the Fund or any financial intermediary on its behalf will
not accept redemption requests until the Fund provides notice that the redemption gate has been terminated.
Redemption
requests submitted while a redemption gate is imposed will be cancelled
without further notice. If shareholders still wish to redeem their shares after a redemption gate has been lifted, they will need to submit
a new redemption request.
Liquidity
fees and redemption gates will generally be used to assist a Fund
to help preserve its market–based NAV per share. It is possible that a liquidity fee will be returned to shareholders in the form
of a distribution. The Board may, in its discretion, terminate a liquidity fee or redemption gate at any time if it believes such action
to be in the best interest of a Fund. Also, liquidity fees and redemption gates will automatically terminate at the beginning of the next
business day once a Fund’s weekly liquid assets reach at least 30% of its total assets. Redemption gates may only last up to 10
business days in any 90-day period. When a fee or a gate is in place, the Fund may elect not to permit the purchase of shares or to subject
the purchase of shares to certain conditions, which may include affirmation of the purchaser’s knowledge that a fee or a gate is
in effect. When a fee or a gate is in place, shareholders will not be permitted to exchange into or out of a Fund.
There
is some degree of uncertainty with respect to the tax treatment of liquidity
fees received by a Fund, and such tax treatment may be the subject to future IRS guidance. If a Fund receives liquidity fees, it will
consider the appropriate tax treatment of such fees to the Fund at such time.
Financial
intermediaries are required to promptly take the steps requested
by the Funds or their designees to impose or help to implement a liquidity fee or redemption gate as requested from time to time, including
the rejection of orders due to the imposition of a fee or gate or the prompt re-confirmation of orders following a notification regarding
the implementation of a fee or gate. If a liquidity fee is imposed, these steps are expected to include the submission of separate, rather
than combined, purchase and redemption orders from the time of the effectiveness of the liquidity fee or redemption gate and the submission
of such order information to the Fund or its designee prior to the next calculation of a Fund’s net asset value. Unless otherwise
agreed to between a Fund and financial intermediary, the Fund will withhold liquidity fees on behalf of financial intermediaries. With
regard to such orders, a redemption request that a Fund determines in its sole discretion has been received in good order by the Fund
or its designated agent prior to the imposition of a liquidity fee or redemption gate may be paid by the Fund despite the imposition of
a redemption gate or without the deduction of a liquidity fee. If a liquidity fee is imposed during the day, an intermediary who receives
both purchase and redemption orders from a single account holder is not required to net the purchase and redemption orders. However, the
intermediary is permitted to apply the liquidity fee to the net amount of redemptions (even if the purchase order was received prior to
the time the liquidity fee was imposed).
Where
a Financial Intermediary serves as a Fund’s agent for the purpose
of receiving orders, trades that are not transmitted to the Fund by the Financial Intermediary before the time required by the Fund or
the transfer agent may, in the Fund’s discretion, be processed on an as-of basis, and any cost or loss to the Fund or transfer agent
or their affiliates, from such transactions shall be borne exclusively by the Financial Intermediary.
Systematic
Withdrawals (Available for all classes except Class R5 and R6 shares)
You
may arrange for regular periodic withdrawals from your account in amounts equal to or greater than $50 per Fund. The Funds’ transfer
agent will redeem the appropriate number of shares from your account to provide redemption proceeds in the amount requested. You must
have a total account balance of at least $5,000 in order to establish a Systematic Redemption Plan, unless you are establishing a Required
Minimum
A-14 The
Invesco Funds
Distribution
for a Retirement and Benefit Plan. You can stop this plan at any time by giving ten days’ prior notice to the Funds’ transfer
agent.
Check
Writing
The
Funds’ transfer agent provides check writing privileges for accounts in the following Funds and share classes:
◾
Invesco
Government Money Market Fund, Invesco Cash Reserve Shares, Class AX shares, Class Y shares and Investor Class shares
◾
Invesco
U.S. Government Money Portfolio, Invesco Cash Reserve Shares and Class Y shares
◾
Invesco
Premier Portfolio, Investor Class shares
◾
Invesco
Premier U.S. Government Money Portfolio, Investor Class shares
You
may redeem shares of these Funds by writing checks in amounts of $250
or more if you have subscribed to the service by completing a Check Writing authorization form.
Check
writing privileges are not available for Retirement and Benefit Plans.
Checks are not eligible to be converted to ACH by the payee. You may not give authorization to a payee by phone to debit your account
by ACH for a debt owed to the payee.
If
you do not have a sufficient number of shares in your account to cover
the amount of the check and any applicable deferred sales charge, the check will be returned and no shares will be redeemed. Because it
is not possible to determine your account’s value in advance, you should not write a check for the entire value of your account
or try to close your account by writing a check.
A
check writing redemption request which is verifiably submitted to a Fund’s
agent before a liquidity fee or redemption gate is imposed will be considered a valid redemption and will be processed normally.
Signature
Guarantees
The
Funds’ transfer agent requires a signature guarantee in the following circumstances:
◾
When
your redemption proceeds exceed $250,000 per Fund.
◾
When
you request that redemption proceeds be paid to someone other than the registered owner of the account.
◾
When
you request that redemption proceeds be sent somewhere other than the address of record or bank of record on the account.
◾
When
you request that redemption proceeds be sent to a new address or an address that changed in the last 15 days.
The
Funds’ transfer agent will accept a guarantee of your signature by a number
of different types of financial institutions. Call the Funds’ transfer agent for additional information. Some institutions have
transaction amount maximums for these guarantees. Please check with the guarantor institution to determine whether the signature guarantee
offered will be sufficient to cover the value of your transaction request.
Redemptions
in Kind
Although
the Funds generally intend to pay redemption proceeds solely in cash, the Funds reserve the right to determine, in their sole discretion,
whether to satisfy redemption requests by making payment in securities or other property (known as a redemption in kind). Redemptions
in kind may result in transaction costs and/or market fluctuations associated with liquidating or holding the securities, respectively.
Purchases-in-Kind
You
may purchase shares of a Fund by transferring securities to a Fund in exchange for Fund shares (“in-kind purchases”). In-kind
purchases may be made only upon the Funds’ approval and determination that the securities are acceptable investments for the Fund
and are purchased consistent with the Fund’s procedures relating to in-kind purchases. The Funds reserve the right to amend or terminate
this practice at any time. You must call the Funds at (800) 959-4246 before sending any securities. Please see the SAI for additional
details.
Redemptions
by Large Shareholders
At
times, the Fund may experience adverse effects when certain large shareholders redeem large amounts of shares of the Fund. Large redemptions
may cause the Fund to sell portfolio securities at times when it would not otherwise do so. In addition, these transactions may also
accelerate
the realization of taxable income to shareholders (if applicable) if such sales of investments resulted in gains and may also increase
transaction costs and/or increase in the Fund’s expense ratio. When experiencing a redemption by a large shareholder, the Fund may
delay payment of the redemption request up to seven days to provide the investment manager with time to determine if the Fund can redeem
the request-in-kind or to consider other alternatives to lessen the harm to remaining shareholders. Under certain circumstances, however,
the Fund may be unable to delay a redemption request, which could result in the automatic processing of a large redemption that is detrimental
to the Fund and its remaining shareholders.
Redemptions
Initiated by the Funds
If
your account (Class A, C, P, S and Investor Class shares only) has been open at least one year, you have not made an additional purchase
in the account during the past six calendar months, and the value of your account falls below $500 for three consecutive months, the Funds
have the right to redeem the account after giving you 60 days’ prior written notice. You may avoid having your account redeemed
during the notice period by bringing the account value up to $500 or by initiating a Systematic Purchase Plan.
A
financial intermediary may have a different policy regarding redemptions
of accounts with small balances. The Fund is not responsible for any small account balance policies imposed by financial intermediaries
or for notifying shareholders of any changes to them. See “Waivers Available Through Certain Financial Intermediaries and Other
Financial Intermediary-Specific Arrangements” for more information on certain intermediary-specific small account balance policies.
Please consult with your financial intermediary if you have any questions regarding their policies.
If
a Fund determines that you have not provided a correct Social Security
or other tax identification number on your account application, or the Fund is not able to verify your identity as required by law, the
Fund may, at its discretion, redeem the account and distribute the proceeds to you.
In
order to separate retail investors (natural persons) and non-retail investors,
the Invesco Premier Portfolio reserve the right to redeem shares in any account that the Funds cannot confirm to their satisfaction are
beneficially owned by natural persons. The Funds will provide advance written notice of their intent to make any such involuntary redemptions.
The Funds reserve the right to redeem shares in any account that they cannot confirm to their satisfaction are beneficially owned by natural
persons, after providing advance notice.
Neither
a Fund nor its investment adviser will be responsible for any loss
in an investor’s account or tax liability resulting from an involuntary redemption.
Minimum
Account Balance (Available for all classes except Class R5 and R6 shares)
A
low balance fee of $12 per year may be deducted in the fourth quarter of each year from all accounts held in the Funds (each a Fund Account)
with a value less than the low balance amount (the Low Balance Amount) as determined from time to time by the Funds and the Adviser. The
Funds and the Adviser generally expect the Low Balance Amount to be $750, but such amount may be adjusted for any year depending on various
factors, including market conditions. The Low Balance Amount and the date on which it will be deducted from any Fund Account will be posted
on our website, www.invesco.com/us, on or about November 1 of each year. This fee will be payable to the Funds’ transfer agent by
redeeming from a Fund Account sufficient shares owned by a shareholder and will be used by the Funds’ transfer agent to offset amounts
that would otherwise be payable by the Funds to the Funds’ transfer agent under the Funds’ transfer agency agreement with
the Funds’ transfer agent. The low balance fee does not apply to participant accounts in advisory programs or to Employer Sponsored
Retirement and Benefit Plans.
Exchanging
Shares
You
may, under certain circumstances, exchange shares in one Fund for those of another Fund. An exchange is the purchase of shares in one
Fund which is paid for with the proceeds from a redemption of shares of another
A-15 The
Invesco Funds
Fund
effectuated on the same day. Any gain on the transaction may be subject to federal income tax. Accordingly, the procedures and processes
applicable to redemptions of Fund shares, as discussed under the heading “Redeeming Shares” above, will apply. Before requesting
an exchange, review the prospectus of the Fund you wish to acquire.
All
exchanges are subject to the limitations set forth in the prospectuses of
the Funds. If you wish to exchange shares of one Fund for those of another Fund, you must consult the prospectus of the Fund whose shares
you wish to acquire to determine whether the Fund is offering shares to new investors and whether you are eligible to acquire shares of
that Fund.
Permitted
Exchanges
Except
as otherwise provided herein or in the SAI, you generally may exchange your shares for shares of the same class of another Fund. The following
table shows generally permitted exchanges from one Fund to another Fund (exceptions listed below under “Exchanges Not Permitted”):
|
Exchange
From |
Exchange
To |
|
Invesco
Cash Reserve Shares |
Class
A, C, R, Investor Class |
|
| |
|
Class
A |
Class
A, Investor Class, Invesco Cash Reserve Shares* |
|
| |
|
Class
A2 |
Class
A, Investor Class, Invesco Cash Reserve Shares |
|
| |
|
Class
AX |
Class
A, AX, Investor Class, Invesco Cash Reserve Shares |
|
| |
|
Investor
Class |
Class
A, Investor Class |
|
| |
|
Class
P |
Class
A, Invesco Cash Reserve Shares |
|
| |
|
Class
S |
Class
A, S, Invesco Cash Reserve Shares |
|
| |
|
Class
C |
Class
C* |
|
| |
|
Class
CX |
Class
C, CX |
|
| |
|
Class
R |
Class
R* |
|
| |
|
Class
R5 |
Class
R5 |
|
| |
|
Class
R6 |
Class
R6 |
|
| |
|
Class
Y |
Class
Y* |
|
|
|
|
* You
may exchange Class Y shares of Invesco U.S. Government Money Portfolio for Class A, C
or
R shares of any other Fund as long as you are otherwise eligible for such share class. If you
exchange
Class Y shares of Invesco U.S. Government Money Portfolio for Class A, C or R shares
of
any other Fund, you may exchange those Class A, C or R shares back into Class Y shares of
Invesco
U.S. Government Money Portfolio, but not Class Y shares of any other Fund. | |
Exchanges
into Invesco Senior Loan Fund
Invesco
Senior Loan Fund is a closed-end interval fund that continuously offers its shares pursuant to the terms and conditions of its prospectus.
The Adviser is the investment adviser for the Invesco Senior Loan Fund. As with the Invesco Funds, you generally may exchange your shares
of Class A (Invesco Cash Reserve Shares of Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio) or Class
C of any Invesco Fund for shares of Class A or Class C, respectively, of Invesco Senior Loan Fund. Please refer to the prospectus for
the Invesco Senior Loan Fund for more information, including limitations on exchanges out of Invesco Senior Loan Fund.
Exchanges
Not Permitted
The
following exchanges are not permitted:
◾
Investor
Class shares cannot be exchanged for Class A shares of any Fund which offers Investor Class shares.
◾
Class A2
shares of Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund cannot be exchanged for Class A shares
of those Funds.
◾
Invesco
Cash Reserve Shares cannot be exchanged for Class C or R shares if the shares being exchanged were acquired by exchange from Class A
shares of any Fund.
◾
All
existing systematic exchanges and reallocations will cease and these options will no longer be available on all 403(b) prototype plans.
◾
Class
A, C or R shares of a Fund acquired by exchange of Class Y shares of Invesco U.S. Government Money Portfolio cannot be exchanged for Class
Y shares of any Fund, except Class Y shares of Invesco U.S. Government Money Portfolio.
Exchange
Conditions
Shares
must have been held for at least one day prior to the exchange with the exception of dividends and distributions that are reinvested.
Under
unusual market conditions, a Fund may delay the exchange of shares
for up to five business days if it determines that it would be materially disadvantaged by the immediate transfer of exchange proceeds.
The exchange privilege is not an option or right to purchase shares. Any of the participating Funds or the distributor may modify or terminate
this privilege at any time.
Initial
Sales Charges, CDSCs and 12b-1 Fees Applicable to Exchanges
You
may be required to pay an initial sales charge when exchanging from a Fund with a lower initial sales charge than the one into which you
are exchanging. If you exchange into shares that are subject to a CDSC, the Funds’ transfer agent will begin the holding period
for purposes of calculating the CDSC on the date you made your initial purchase.
In
addition, as a result of differences in the forms of distribution plans among
the Funds, certain exchanges of Class A shares, Class C shares, and Class R shares of a Fund for the same class of shares of another Fund
may result in investors paying a higher or a lower 12b-1 fee on the Fund being exchanged into. Please refer to the prospectus fee table
and financial highlights table and the SAI for more information on the fees and expenses, including applicable 12b-1 fees, of the Fund
you wish to acquire.
Share
Class Conversions
Shares
of one class of a Fund may be converted into shares of another class of the same Fund, provided that you are eligible to buy that share
class. Investors who hold Fund shares through a financial intermediary that does not have an agreement to make certain share classes of
the Funds available or that cannot systematically support the conversion may not be eligible to convert their shares. Furthermore, your
financial intermediary may have discretion to effect a conversion on your behalf. Consult with your financial intermediary for details.
Any CDSC associated with the converting shares will be assessed immediately prior to the conversion to the new share class. The conversion
of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes and no gain
or loss will be reported on the transaction. See the applicable prospectus for share class information.
Fees
and expenses differ between share classes. You should read the prospectus
for the share class into which you are seeking to convert your shares prior to the conversion.
Automatic
Conversion of Class C and Class CX Shares
Class
C and Class CX shares held for eight years after purchase are eligible for automatic conversion into Class A and Class AX shares of the
same Fund, respectively, except that for the Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio, the Funds’
Class C and/or Class CX shares would be eligible to automatically convert into the Fund’s Invesco Cash Reserve Share Class and all
existing Class C shares of Invesco Short Term Municipal Fund will automatically convert to Class A shares of that Fund at the end of June
2022 (the Conversion Feature). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month
following the eighth anniversary after a purchase of Class C or Class CX shares (the Conversion Date). The first conversion of Class C
and Class CX shares to Class A and Class AX shares under this policy would occur at the end of December 2020 for all Class C and Class
CX shares that were held for more than eight years as of November 30, 2020.
Automatic
conversions pursuant to the Conversion Feature will be on the basis
of the NAV per share, without the imposition of any sales charge (including a CDSC), fee or other charge. All such automatic conversions
of Class C and Class CX shares will constitute tax-free exchanges for federal income tax purposes.
Class
C and Class CX shares of a Fund acquired through a reinvestment of
dividends and distributions will convert to Class A and Class AX shares, respectively, of the Fund (or Invesco Cash Reserve shares for
Invesco
A-16 The
Invesco Funds
Government
Money Market Fund) on the Conversion Date pro rata with the converting Class C and Class CX shares of that Fund that were not acquired
through reinvestment of dividends and distributions.
Class
C or Class CX shares held through a financial intermediary in existing
omnibus Employer Sponsored Retirement and Benefit Plans and other omnibus accounts may be converted pursuant to the Conversion Feature
by the financial intermediary once it is determined that the Class C or Class CX shares have been held for the required holding period.
It is the financial intermediary’s (and not the Fund’s) responsibility to keep records and to ensure that the shareholder
is credited with the proper holding period as the Fund and its agents may not have transparency into how long a shareholder has held Class
C or Class CX shares for purposes of determining whether such Class C or Class CX shares are eligible to automatically convert pursuant
to the Conversion Feature. In order to determine eligibility for automatic conversion in these circumstances, it is the responsibility
of the shareholder or their financial intermediary to determine that the shareholder is eligible to exercise the Conversion Feature, and
the shareholder or their financial intermediary may be required to maintain records that substantiate the holding period of Class C or
Class CX shares.
In
addition, a financial intermediary may sponsor and/or control programs
or platforms that impose a different conversion schedule or eligibility requirements for conversions of Class C or Class CX shares. In
these cases, Class C and Class CX shares of certain shareholders may not be eligible for automatic conversion pursuant to the Conversion
Feature as described above. The Fund has no responsibility for overseeing, monitoring or implementing a financial intermediary’s
process for determining whether a shareholder meets the required holding period for automatic conversion. Please consult with your financial
intermediary if you have any questions regarding the Conversion Feature.
Share
Class Conversions Not Permitted
The
following share class conversions are not permitted:
◾
Conversions
into Class A from Class A2 of the same Fund.
◾
Conversions
into Class A2, Class AX, Class CX, Class P or Class S of the same Fund.
Rights
Reserved by the Funds
Each
Fund and its agents reserve the right at any time to:
◾
Reject
or cancel all or any part of any purchase or exchange order.
◾
Modify
any terms or conditions related to the purchase, redemption or exchange of shares of any Fund.
◾
Reject
or cancel any request to establish a Systematic Purchase Plan or Systematic Redemption Plan.
◾
Modify
or terminate any sales charge waivers or exceptions.
◾
Suspend,
change or withdraw all or any part of the offering made by this prospectus.
Excessive
Short-Term Trading Activity (Market Timing) Disclosures
While
the Funds provide their shareholders with daily liquidity, their investment programs are designed to serve long-term investors and are
not designed to accommodate excessive short-term trading activity in violation of our policies described below. Excessive short-term trading
activity in the Funds’ shares (i.e., a purchase of Fund shares followed shortly thereafter by a redemption of such shares, or vice
versa) may hurt the long-term performance of certain Funds by requiring them to maintain an excessive amount of cash or to liquidate portfolio
holdings at a disadvantageous time, thus interfering with the efficient management of such Funds by causing them to incur increased brokerage
and administrative costs. Where excessive short-term trading activity seeks to take advantage of arbitrage opportunities from stale prices
for portfolio securities, the value of Fund shares held by long-term investors may be diluted. The Board has adopted policies and procedures
designed to discourage excessive or short-term trading of Fund shares for all Funds except the money market funds, Invesco Conservative
Income Fund, and Invesco Short Term Municipal Fund. However, there is the risk that these Funds’ policies and procedures will prove
ineffective in whole or in part to detect or prevent excessive or
short-term
trading. These Funds may alter their policies at any time without prior notice to shareholders if the Adviser believes the change would
be in the best interests of long-term shareholders.
Invesco
and certain of its corporate affiliates (Invesco and such affiliates,
collectively, the Invesco Affiliates) currently use the following tools designed to discourage excessive short-term trading in the retail
Funds:
◾
Trade
activity monitoring.
◾
Discretion
to reject orders.
◾
Purchase
blocking.
◾
The
use of fair value pricing consistent with the valuation policy approved by the Board and related procedures.
Each
of these tools is described in more detail below. Although these tools
are designed to discourage excessive short-term trading, you should understand that none of these tools alone nor all of them taken together
eliminate the possibility that excessive short-term trading activity in the Funds will occur. Moreover, each of these tools involves judgments
that are inherently subjective. Invesco Affiliates seek to make these judgments to the best of their abilities in a manner that they believe
is consistent with long-term shareholder interests.
Money
Market Funds. The Boards of Invesco Government Money Market Fund,
Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio (the money market
funds) have not adopted any policies and procedures that would limit frequent purchases and redemptions of such Funds’ shares. The
Boards of the money market funds considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal. Nonetheless, to the extent that a money market fund must maintain additional cash and/or
securities with short-term durations in greater amounts than may otherwise be required or borrow to honor redemption requests, the money
market fund’s yield could be negatively impacted.
The
Boards of the money market funds do not believe that it is appropriate
to adopt any such policies and procedures for the money market funds for the following reasons:
◾
The
money market funds are offered to investors as cash management vehicles; therefore, investors should be able to purchase and redeem shares
regularly and frequently.
◾
One
of the advantages of a money market fund as compared to other investment options is liquidity. Any policy that diminishes the liquidity
of the money market funds will be detrimental to the continuing operations of such Funds.
◾
With
respect to the money market funds maintaining a constant net asset value, the money market funds’ portfolio securities are valued
on the basis of amortized cost, and such Funds seek to maintain a constant net asset value. As a result, the money market funds are not
subject to price arbitrage opportunities.
◾
With
respect to the money market funds maintaining a constant net asset value, because such Funds seek to maintain a constant net asset value,
investors are more likely to expect to receive the amount they originally invested in the Funds upon redemption than other mutual funds.
Invesco
Conservative Income Fund. The Board of Invesco Conservative Income
Fund has not adopted any policies and procedures that would limit frequent purchases and redemptions of such Fund’s shares. The
Board of Invesco Conservative Income Fund considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal especially in light of the reasons for not having such a policy as described below. Nonetheless,
to the extent that the Fund must maintain additional cash and/or securities with short-term durations in greater amounts than may otherwise
be required or borrow to honor redemption requests, the Fund’s yield could be negatively impacted.
The
Board of the Invesco Conservative Income Fund does not believe that
it is appropriate to adopt any such policies and procedures for the Fund for the following reasons:
◾
The
Fund is offered to investors as a cash management vehicle; investors perceive an investment in the Fund as an alternative to cash and
must be able to purchase and redeem shares regularly and frequently.
A-17 The
Invesco Funds
◾
One
of the advantages of the Fund as compared to other investment options is liquidity. Any policy that diminishes the liquidity of the Fund
will be detrimental to the continuing operations of the Fund.
Excessive
trading activity in the Fund’s shares may cause the Fund to incur
increased brokerage and administrative costs.
The
Fund and its agent reserve the right at any time to reject or cancel any
part of any purchase order. This could occur if the Fund determines that such purchase may disrupt the Fund’s operation or performance.
Invesco
Short Term Municipal Fund. The Board of Invesco Short Term Municipal
Fund has not adopted any policies and procedures that would limit frequent purchases and redemptions of such Fund’s shares. The
Board of Invesco Short Term Municipal Fund considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal, especially in light of the reasons for not having such a policy as described below. Nonetheless,
to the extent that the Fund must maintain additional cash and/or securities with short-term durations in greater amounts than may otherwise
be required or borrow to honor redemption requests, the Fund’s yield could be negatively impacted.
The
Board of Invesco Short Term Municipal Fund does not believe that it is
appropriate to adopt any such policies and procedures for the Fund for the following reasons:
◾
The
Fund is designed to address the needs of retail investors who seek liquidity in their investment and seek the ability to purchase and
redeem shares at any time.
◾
Any
policy that diminishes the ability of shareholders to purchase and redeem shares of the Fund will be detrimental to the continuing operations
of the Fund.
◾
The
Fund generally invests in short duration liquid investment grade municipal securities.
Excessive
trading activity in the Fund’s shares may cause the Fund to incur
increased brokerage and administrative costs. The Fund and its agent reserve the right at any time to reject or cancel any part of any
purchase order. This could occur if the Fund determines that such purchase may disrupt the Fund’s operation or performance.
Trade
Activity Monitoring
Invesco
Affiliates monitor selected trades on a daily basis in an effort to detect excessive short-term trading activities. If, as a result of
this monitoring, Invesco Affiliates believe that a shareholder has engaged in excessive short-term trading, they will seek to act in a
manner that they believe is consistent with the best interests of long-term investors, which may include taking steps such as (i) asking
the shareholder to take action to stop such activities or (ii) refusing to process future purchases or exchanges related to such activities
in the shareholder’s accounts other than exchanges into a money market fund. Invesco Affiliates will use reasonable efforts to apply
the Funds’ policies uniformly given the practical limitations described above.
The
ability of Invesco Affiliates to monitor trades that are made through accounts
that are maintained by intermediaries (rather than the Funds’ transfer agent) and through conduit investment vehicles may be limited
or non-existent.
Discretion
to Reject Orders
If
a Fund or an Invesco Affiliate determines, in its sole discretion, that your short-term trading activity is excessive, the Fund may, in
its sole discretion, reject any additional purchase and exchange orders. This discretion may be exercised with respect to purchase or
exchange orders placed directly with the Funds’ transfer agent or through a financial intermediary.
Purchase
Blocking Policy
The
Funds (except those listed below) have adopted a policy under which any shareholder redeeming shares having a value of $50,000 or more
from a Fund on any trading day will be precluded from investing in that Fund for 30 calendar days after the redemption transaction date.
The policy applies to redemptions and purchases that are part of exchange transactions. Under the purchase blocking policy, certain purchases
will not be prevented and certain redemptions will not trigger a purchase block, such as: purchases
and redemptions
of shares having a value of less than $50,000; systematic purchase, redemption and exchange account options; transfers of shares within
the same Fund; non-discretionary rebalancing in fund-of-funds; asset allocation features; fee-based accounts; account maintenance fees;
small balance account fees; plan-level omnibus Retirement and Benefit Plans; death and disability and hardship distributions; loan transactions;
transfers of assets; Retirement and Benefit Plan rollovers; IRA conversions and re-characterizations; and mandatory distributions from
Retirement and Benefit Plans.
The
Funds reserve the right to modify any of the parameters (including those
not listed above) of the purchase blocking policy at any time. Further, the purchase blocking policy may be waived with respect to specific
shareholder accounts in those instances where the Adviser determines that its surveillance procedures are adequate to detect frequent
trading in Fund shares.
If
an account is maintained by a financial intermediary whose systems are
unable to apply Invesco’s purchase blocking policy, the Adviser will accept the establishment of an account only if the Adviser
believes the policies and procedures are reasonably designed to enforce the frequent trading policies of the Funds. You should refer to
disclosures provided by the financial intermediary with which you have an account to determine the specific trading restrictions that
apply to you. If the Adviser identifies any activity that may constitute frequent trading, it reserves the right to contact the intermediary
and request that the intermediary either provide information regarding an account owner’s transactions or restrict the account owner’s
trading. There is no guarantee that all instances of frequent trading in Fund shares will be prevented.
The
purchase blocking policy does not apply to Invesco Conservative Income
Fund, Invesco Short Term Municipal Fund, Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government
Money Portfolio and Invesco U.S. Government Money Portfolio.
Pricing
of Shares
Determination
of Net Asset Value
The
price of each Fund’s shares is the Fund’s net asset value per share. The Funds (except Invesco Government Money Market Fund,
Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio) value portfolio
securities for which market quotations are readily available at market value. Securities and other assets quoted in foreign currencies
are valued in U.S. dollars based on the prevailing exchange rates on that day. The Funds (except Invesco Government Money Market Fund,
Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio) value securities
and assets for which market quotations are unavailable at their “fair value,” which is described below. Invesco Government
Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio
value portfolio securities on the basis of amortized cost, which approximates market value. This method of valuation is designed to enable
a Fund to price its shares at $1.00 per share. The Funds cannot guarantee their net asset value will always remain at $1.00 per share.
Securities and other assets quoted in foreign currencies are valued in U.S. dollars based on the prevailing exchange rates on that day.
The Fund values securities and assets for which market quotations are unavailable at their “fair value,” which is described
below.
Even
when market quotations are available, they may be stale or not
representative of market value in the Adviser’s judgment (“unreliable”)
because the security is not traded frequently, trading on the security
ceased before the close of the trading market or issuer specific events occurred after the security ceased trading or because of the passage
of time between the close of the market on which the security trades and the close of the NYSE and when the Fund calculates its net asset
value. Issuer specific events may cause the last market quotation to be unreliable. Such events may include a merger or insolvency, events
that affect a geographical area or an industry segment, such as political events or natural disasters, or market events, such as a significant
movement in the U.S. market. Where
A-18 The
Invesco Funds
the Adviser
determines that the closing price of the security is stale or unreliable, the Adviser will value the security at its fair value.
A
fair value price is an estimated price that requires consideration of all appropriate factors, including indications of fair value available
from pricing services. Fair value pricing involves judgment and a Fund that uses fair value methodologies may value securities higher
or lower than another Fund using market quotations or its own fair value methodologies to price the same securities. Investors who purchase
or redeem Fund shares on days when the Fund is holding fair-valued securities may receive a greater or lesser number of shares, or higher
or lower redemption proceeds, than they would have received if the Fund had not fair-valued the security or had used a different methodology.
The
Board has designated the Adviser to perform the daily determination
of fair value prices in accordance with Board approved
policies and related procedures,
subject to the Board’s oversight. Fair value pricing methods
and pricing services can change from time to time.
The
intended effect of applying fair value pricing is to compute an NAV that
accurately reflects the value of a Fund’s portfolio at the time that the NAV is calculated. An additional intended effect is to
discourage those seeking to take advantage of arbitrage opportunities resulting from “stale” prices and to mitigate the dilutive
impact of any such arbitrage. However, the application of fair value pricing cannot eliminate the possibility that arbitrage opportunities
will exist.
Specific
types of securities are valued as follows:
Senior
Secured Floating Rate Loans and Senior Secured Floating Rate Debt
Securities. Senior secured floating rate loans and senior secured
floating rate debt securities are fair valued using evaluated quotes provided by an independent pricing service. Evaluated quotes provided
by the pricing service may reflect appropriate factors such as market quotes, ratings, tranche type, industry, company performance, spread,
individual trading characteristics, institution-size trading in similar groups of securities and other market data.
Domestic
Exchange Traded Equity Securities. Market quotations are generally
available and reliable for domestic exchange traded equity securities. If market quotations are not available or are unreliable, the Adviser
will value the security at fair value in good faith using the valuation policy approved by the Board and related procedures.
Foreign
Securities. If market quotations are available and reliable for
foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign
securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular
security and the close of the customary trading session on the NYSE events occur that are significant and may make the closing price unreliable,
the Fund may fair value the security. If an issuer specific event has occurred that the Adviser determines, in its judgment, is likely
to have affected the closing price of a foreign security, it will price the security at fair value. The Adviser also relies on a screening
process from a pricing vendor to indicate the degree of certainty, based on historical data, that the closing price in the principal market
where a foreign security trades is not the current market value as of the close of the NYSE. For foreign securities where the Adviser
believes, at the approved degree of certainty, that the price is not reflective of current market value, the Adviser will use the indication
of fair value from the pricing service to determine the fair value of the security. The pricing vendor, pricing methodology or degree
of certainty may change from time to time.
Fund
securities primarily traded on foreign markets may trade on days that
are not business days of the Fund. Because the net asset value of Fund shares is determined only on business days of the Fund, the value
of the portfolio securities of a Fund that invests in foreign securities may change on days when you will not be able to purchase or redeem
shares of the Fund.
Fixed
Income Securities. Fixed income securities, such as government,
corporate, asset-backed and municipal bonds, convertible securities, including high yield or junk bonds, and loans, generally are valued
on the basis of prices provided by independent pricing services. Prices provided by the pricing services may be determined without exclusive
reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in
similar
groups of securities, developments related to special securities, dividend rate, maturity and other market data. Pricing services generally
value fixed income securities assuming orderly transactions of institutional round lot size, but a Fund may hold or transact in the same
securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Prices received from pricing
services are fair value prices. In addition, if the price provided by the pricing service and independent quoted prices are unreliable,
the Adviser will fair value the security using the valuation policy approved by the Board and related procedures.
Short-term
Securities. Invesco Government Money Market Fund, Invesco Premier
Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio value all their securities at amortized
cost. Invesco Limited Term Municipal Income Fund values variable rate securities that have an unconditional demand or put feature exercisable
within seven days or less at par, which reflects the market value of such securities.
Futures
and Options. Futures contracts are valued at the final settlement
price set by the exchange on which they are principally traded. U.S.
exchange-traded options are valued at the mean between the last
bid and asked prices from the exchange on which they principally trade. Non-U.S. exchange-traded options are valued at the final settlement
price set by
the exchange on which they trade. Options not listed on an exchange and swaps generally are valued using pricing provided from independent
pricing services.
Swap
Agreements. Swap Agreements are fair valued using an evaluated
quote provided by an independent pricing service. Evaluated quotes provided by the pricing service are based on a model that may include
end of day net present values, spreads, ratings, industry and company performance.
Open-end
Funds. If a Fund invests in other open-end funds, other than open-end
funds that are exchange traded, the investing Fund will calculate its net asset value using the net asset value of the underlying fund
in which it invests, and the prospectuses for such open-end funds explain the circumstances under which they will use fair value pricing
and the effects of using fair value pricing.
Each
Fund, except for Invesco Government Money Market Fund, Invesco Premier
Portfolio and Invesco Premier U.S. Government Money Portfolio, generally determines the net asset value of its shares on each day the
NYSE is open for trading (a business day) as of approximately 4:00 p.m. Eastern Time (the customary close of regular trading) or earlier
in the case of a scheduled early close. In the event of an unscheduled early close of the NYSE, each Fund, except for Invesco Government
Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio, generally still will determine the net
asset value of its shares as of 4:00 p.m. Eastern Time on that business day. Portfolio securities traded on the NYSE would be valued at
their closing prices unless the Adviser determines
that a “fair value” adjustment is appropriate due to subsequent events occurring after an early close consistent with the
valuation policy approved
by the Board and related procedures. Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government
Money Portfolio will generally determine the net asset value of their shares at 5:30 p.m. Eastern Time on each business day. A business
day for Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio is any day
that (1) both the Federal Reserve Bank of New York and a Fund’s custodian are open for business and (2) the primary trading markets
for the Fund’s portfolio instruments are open and the Fund’s management believes there is an adequate market to meet purchase
and redemption requests. Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money
Portfolio are authorized not to open for trading on a day that is otherwise a business day if the Securities Industry and Financial Markets
Association (SIFMA) recommends that government securities dealers not open for trading; any such day will not be considered a business
day. Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio, Invesco
U.S. Government Money Portfolio also may close early on a business day if SIFMA recommends that government securities dealers close early.
If
A-19 The
Invesco Funds
Invesco
Government Money Market Fund, Invesco Premier Portfolio or Invesco Premier U.S. Government Money Portfolio uses its discretion to
close early on a business day, the Fund will calculate its net asset value as of the time of such closing Invesco Premier Portfolio and
Invesco U.S. Government Money Portfolio are authorized to not open for trading on a day that is otherwise a business day if the NYSE recommends
that government securities dealers not open for trading; any such day will not be considered a business day. Invesco Premier Portfolio
also may close early on a business day if the NYSE recommends that government securities dealers close early.
For
financial reporting purposes and shareholder transactions on the last
day of the fiscal quarter, transactions are normally accounted for on a trade date basis. For purposes of executing shareholder transactions
in the normal course of business (other than shareholder transactions at a fiscal period-end), each Fund’s portfolio securities
transactions are recorded no later than the first business day following the trade date.
The
Invesco Advantage International Fund, Invesco Balanced-Risk Allocation
Fund, Invesco Balanced-Risk Commodity Strategy Fund, Invesco Fundamental Alternatives Fund, Invesco Global Allocation Fund, Invesco Global
Strategic Income Fund, Invesco Gold & Special Minerals Fund, Invesco High Yield Bond Factor Fund, Invesco International Bond Fund
and Invesco Macro Allocation Strategy Fund may each invest up to 25% of their total assets in shares of their respective subsidiaries
(the Subsidiaries). The Subsidiaries offer to redeem all or a portion of their shares at the current net asset value per share every regular
business day. The value of shares of the Subsidiaries will fluctuate with the value of the respective Subsidiary’s portfolio investments.
The Subsidiaries price their portfolio investments pursuant to the same pricing and valuation methodologies and procedures used by the
Funds, which require, among other things, that each of the Subsidiaries’ portfolio investments be marked-to-market (that is, the
value on each of the Subsidiaries’ books changes) each business day to reflect changes in the market value of the investment.
Each
Fund’s current net asset value per share is made available on the Funds’
website at www.invesco.com/us.
Fair
Value Pricing
Securities
owned by a Fund (except Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio
and Invesco U.S. Government Money Portfolio) are to be valued at current market value if market quotations are readily available. All
other securities and assets of a Fund for which market quotations are not readily available are to be valued at fair value determined
in good faith consistent with the valuation policy approved by the Board and related procedures. An effect of fair value pricing may be
to reduce the ability of frequent traders to take advantage of arbitrage opportunities resulting from potentially “stale”
prices of portfolio holdings. However, it cannot eliminate the possibility of frequent trading.
The
price a Fund could receive upon the sale of any investment may differ
from the Adviser's valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair
valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions
(i.e., publicly traded company multiples, growth rate, time to exit), to determine a methodology that will result in a valuation that
the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value
from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and
the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the
investment.
Timing
of Orders
Each
Fund prices purchase, exchange and redemption orders at the net asset value next calculated by the Fund after the Fund’s transfer
agent, authorized agent or designee receives an order in good order for the Fund. Purchase, exchange and redemption orders must be received
prior to the close of business on a business day, as defined by the applicable Fund, to receive that day’s net asset value. Any
applicable sales charges are applied at the time an order is processed.
Currently,
certain financial intermediaries may serve as agents for the Funds
and accept orders on their behalf. Where a financial intermediary serves as agent, the order is priced at the Fund’s net asset value
next calculated after it is accepted by the financial intermediary. In such cases, if requested by a Fund, the financial intermediary
is responsible for providing information with regard to the time that such order for purchase, redemption or exchange was received. Orders
submitted through a financial intermediary that has not received authorization to accept orders on a Fund’s behalf are priced at
the Fund’s net asset value next calculated by the Fund after it receives the order from the financial intermediary and accepts it,
which may not occur on the day submitted to the financial intermediary.
Additional
Information Regarding Deferred Tax Liability (only applicable to the Invesco Steelpath Funds)
In
calculating the Fund’s daily NAV, the Fund will, among other things, account for its deferred tax liability and/or asset balances.
As a result, any deferred tax liability and/or asset is reflected in the Fund’s daily NAV.
The
Fund will accrue a deferred income tax liability balance, at the U.S. federal
corporate income tax rate plus an estimated state and local income tax rate for its future tax liability associated with MLP distributions
considered to be a return of capital, as well as for its future tax liability associated with the capital appreciation of its investments.
The Fund’s current and deferred tax liability, if any, will depend upon the Fund’s net investment gains and losses and realized
and unrealized gains and losses on investments and therefore may vary greatly from year to year depending on the nature of the Fund’s
investments, the performance of those investments and general market conditions. Any deferred tax liability balance will reduce the Fund’s
NAV. Upon the Fund’s sale of an MLP security, the Fund may be liable for previously deferred taxes.
The
Fund will accrue, in accordance with generally accepted accounting principles,
a deferred tax asset balance, which reflects an estimate of the Fund’s future tax benefit associated with net operating losses and
unrealized losses. Any deferred tax asset balance will increase the Fund’s NAV. To the extent the Fund has a deferred tax asset
balance, the Fund will assess, in accordance with generally accepted accounting principles, whether a valuation allowance, which would
offset the value of some or all of the Fund’s deferred tax asset balance, is required. Pursuant to Financial Accounting Standards
Board Accounting Standards Codification 740 (FASB ASC 740), the Fund will assess a valuation allowance to reduce some or all of the deferred
tax asset balance if, based on the weight of all available evidence, both negative and positive, it is more likely than not that some
or all of the deferred tax asset will not be realized. The Fund will use judgment in considering the relative impact of negative and positive
evidence. The weight given to the potential effect of negative and positive evidence will be commensurate with the extent to which such
evidence can be objectively verified. The Fund’s assessment considers, among other matters, the nature, frequency and severity of
current and cumulative losses, the duration of statutory carry forward periods and the associated risk that operating loss and capital
loss carry forwards may be limited or expire unused, and unrealized gains and losses on investments. Consideration is also given to market
cycles, the severity and duration of historical deferred tax assets, the impact of redemptions, and the level of MLP distributions. The
Fund will assess whether a valuation allowance is required to offset some or all of any deferred tax asset in connection with the calculation
of the Fund’s NAV per share each day; however, to the extent the final valuation allowance differs from the estimates the Fund used
in calculating the Fund’s daily NAV, the application of such final valuation allowance could have a material impact on the Fund’s
NAV.
The
Fund’s deferred tax asset and/or liability balances are estimated using
estimates of effective tax rates expected to apply to taxable income in the years such balances are realized. The Fund will rely to some
extent on information provided by MLPs in determining the extent to which distributions received from MLPs constitute a return of capital,
which may not be provided to the Fund on a timely basis, to estimate the Fund’s deferred tax liability and/or asset balances for
purposes of financial statement reporting and determining its NAV. If such information is not
A-20 The
Invesco Funds
received
from such MLPs on a timely basis, the Fund will estimate the extent to which distributions received from MLPs constitute a return of capital
based on average historical tax characterization of distributions made by MLPs. The Fund’s estimates regarding its deferred tax
liability and/or asset balances are made in good faith; however, the daily estimate of the Fund’s deferred tax liability and/or
asset balances used to calculate the Fund’s NAV could vary dramatically from the Fund’s actual tax liability. Actual income
tax expense, if any, will be incurred over many years, depending on if and when investment gains and losses are realized, the then-current
basis of the Fund’s assets and other factors. As a result, the determination of the Fund’s actual tax liability may have a
material impact on the Fund’s NAV. The Fund’s daily NAV calculation will be based on then current estimates and assumptions
regarding the Fund’s deferred tax liability and/or asset balances and any applicable valuation allowance, based on all information
available to the Fund at such time. From time to time, the Fund may modify its estimates or assumptions regarding its deferred tax liability
and/or asset balances and any applicable valuation allowance as new information becomes available. Modifications of the Fund’s estimates
or assumptions regarding its deferred tax liability and/or asset balances and any applicable valuation allowance, changes in generally
accepted accounting principles or related guidance or interpretations thereof, limitations imposed on net operating losses (if any) and
changes in applicable tax law could result in increases or decreases in the Fund’s NAV per share, which could be material.
Taxes
(applicable to all Funds except for the Invesco SteelPath Funds and Invesco Master Loan Fund)
A
Fund intends to qualify each year as a regulated investment company (RIC) and, as such, is not subject to entity-level tax on the income
and gain it distributes to shareholders. If you are a taxable investor, dividends and distributions you receive from a Fund generally
are taxable to you whether you reinvest distributions in additional Fund shares or take them in cash. Every year, you will be sent information
showing the amount of dividends and distributions you received from a Fund during the prior calendar year. In addition, investors in taxable
accounts should be aware of the following basic tax points as supplemented below where relevant:
Fund Tax
Basics
◾
A
Fund earns income generally in the form of dividends or interest on its investments. This income, less expenses incurred in the operation
of a Fund, constitutes the Fund’s net investment income from which dividends may be paid to you. If you are a taxable investor,
distributions of net investment income generally are taxable to you as ordinary income.
◾
Distributions
of net short-term capital gains are taxable to you as ordinary income. A Fund with a high portfolio turnover rate (a measure of how frequently
assets within a Fund are bought and sold) is more likely to generate short-term capital gains than a Fund with a low portfolio turnover
rate.
◾
Distributions
of net long-term capital gains are taxable to you as long-term capital gains no matter how long you have owned your Fund shares.
◾
A
portion of income dividends paid by a Fund to you may be reported as qualified dividend income eligible for taxation by individual shareholders
at long-term capital gain rates, provided certain holding period requirements are met. These reduced rates generally are available for
dividends derived from a Fund’s investment in stocks of domestic corporations and qualified foreign corporations. In the case of
a Fund that invests primarily in debt securities, either none or only a nominal portion of the dividends paid by the Fund will be eligible
for taxation at these reduced rates.
◾
The
use of derivatives by a Fund may cause the Fund to realize higher amounts of ordinary income or short-term capital gain, distributions
from which are taxable to individual shareholders at ordinary income tax rates rather than at the more favorable tax rates for long-term
capital gain.
◾
Distributions
declared to shareholders with a record date in October, November or December—if paid to you by the end of January—are taxable
for federal income tax purposes as if received in December.
◾
Any
long-term or short-term capital gains realized on the sale or redemption of your Fund shares will be subject to federal income tax. For
tax
purposes an exchange of your shares for shares of another Fund is the same as a sale. An exchange occurs when the purchase of shares of
a Fund is made using the proceeds from a redemption of shares of another Fund and is effectuated on the same day as the redemption. Your
gain or loss is calculated by subtracting from the gross proceeds your cost basis. Gross proceeds and, for shares acquired on or after
January 1, 2012 and disposed of after that date, cost basis will be reported to you and the Internal Revenue Service (IRS). Cost
basis will be calculated using the Fund’s default method of average cost, unless you instruct the Fund to use a different calculation
method. As a service to you, the Fund will continue to provide to you (but not the IRS) cost basis information for shares acquired before
2012, when available, using the average cost method. Shareholders should carefully review the cost basis information provided by a Fund
and make any additional basis, holding period or other adjustments that are required when reporting these amounts on their federal income
tax returns. If you hold your Fund shares through a broker (or other nominee), please contact that broker (nominee) with respect to reporting
of cost basis and available elections for your account. For more information about the cost basis methods offered by Invesco, please refer
to the Tax Center located under the Account Access & Forms menu of our website at www.Invesco.com/us.
◾
The
conversion of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes
and no gain or loss will be reported on the transaction. This is true whether the conversion occurs automatically pursuant to the terms
of the class or is initiated by the shareholder.
◾
At
the time you purchase your Fund shares, the Fund’s net asset value may reflect undistributed income or undistributed capital gains.
A subsequent distribution to you of such amounts, although constituting a return of your investment, would be taxable. Buying shares in
a Fund just before it declares an income dividend or capital gains distribution is sometimes known as “buying a dividend.”
In addition, a Fund’s net asset value may, at any time, reflect net unrealized appreciation, which may result in future taxable
distributions to you.
◾
By
law, if you do not provide a Fund with your proper taxpayer identification number and certain required certifications, you may be subject
to backup withholding on any distributions of income, capital gains, or proceeds from the sale of your shares. A Fund also must withhold
if the IRS instructs it to do so. When withholding is required, the amount will be 24% of any distributions or proceeds paid.
◾
An
additional 3.8% Medicare tax is imposed on certain net investment income (including ordinary dividends and capital gain distributions
received from a Fund and net gains from redemptions or other taxable dispositions of Fund shares) of U.S. individuals, estates and trusts
to the extent that such person’s “modified adjusted gross income” (in the case of an individual) or “adjusted
gross income” (in the case of an estate or trust) exceeds a threshold amount. This Medicare tax, if applicable, is reported by you
on, and paid with, your federal income tax return.
◾
You
will not be required to include the portion of dividends paid by a Fund derived from interest on U.S. government obligations in your
gross income for purposes of personal and, in some cases, corporate income taxes in many state and local tax jurisdictions. The percentage
of dividends that constitutes dividends derived from interest on federal obligations will be determined annually. This percentage may
differ from the actual percentage of interest received by the Fund on federal obligations for the particular days on which you hold shares.
◾
Fund
distributions and gains from sale or exchange of your Fund shares generally are subject to state and local income taxes.
◾
If
a Fund qualifies to pass through to you the tax benefits from foreign taxes it pays on its investments, and elects to do so, then any
foreign taxes it pays on these investments may be passed through to you. You will then be required to include your pro-rata share of these
taxes in gross income, even though not actually received by you, and will be entitled either to deduct your share of these taxes in computing
your taxable income, or to claim a foreign tax credit for these taxes against your U.S. federal income tax.
A-21 The
Invesco Funds
◾
Foreign
investors should be aware that U.S. withholding, special certification requirements to avoid U.S. backup withholding and claim
any treaty benefits, and estate taxes may apply to an investment in a Fund.
◾
Under
the Foreign Account Tax Compliance Act (FATCA), a Fund will be required to withhold a 30% tax on income dividends made by the Fund to
certain foreign entities, referred to as foreign financial institutions or non-financial foreign entities, that fail to comply (or be
deemed compliant) with extensive reporting and withholding requirements designed to inform the U.S. Department of the Treasury of U.S.-owned
foreign investment accounts. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide otherwise (which
is not expected). A Fund may disclose the information that it receives from its shareholders to the IRS, non-U.S. taxing authorities or
other parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that is a shareholder
of a Fund fails to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.
◾
If
a Fund invests in an underlying fund taxed as a RIC, please see any relevant section below for more information regarding the Fund’s
investment in such underlying fund.
The
above discussion concerning the taxability of Fund dividends and distributions and of redemptions and exchanges of Fund shares is inapplicable
to investors holding shares through a tax-advantaged arrangement, such as Retirement and Benefit Plans or 529 college savings plans. Such
investors should refer to the applicable account documents/program description for that arrangement for more information regarding the
tax consequences of holding and redeeming Fund shares.
Funds
Investing in Municipal Securities
◾
You
will not be required to include the “exempt-interest” portion of dividends paid by the Fund in either your gross income for
federal income tax purposes or your net investment income subject to the additional 3.8% Medicare tax. You will be required to report
the receipt of exempt-interest dividends and other tax-exempt interest on your federal income tax returns. The percentage of dividends
that constitutes exempt-interest dividends will be determined annually. This percentage may differ from the actual percentage of exempt
interest received by the Fund for the particular days in which you hold shares.
◾
A
Fund may invest in municipal securities the interest on which constitutes an item of tax preference and could give rise to a federal alternative
minimum tax liability for noncorporate shareholders, unless such municipal securities were issued in 2009 or 2010.
◾
Exempt-interest
dividends from interest earned on municipal securities of a state, or its political subdivisions, generally are exempt from that state’s
personal income tax. Most states, however, do not grant tax-free treatment to interest from municipal securities of other states.
◾
A
Fund may invest a portion of its assets in securities that pay income that is not tax-exempt. To the extent that dividends paid by a Fund
are derived from taxable investments or realized capital gains, they will be taxable as ordinary income or long-term capital gains.
◾
A
Fund may distribute to you any market discount and net short-term capital gains from the sale of its portfolio securities. If you are
a taxable investor, Fund distributions from this income are taxable to you as ordinary income, and generally will neither qualify for
the dividends-received deduction in the case of corporate shareholders nor as qualified dividend income subject to reduced rates of taxation
in the case of noncorporate shareholders.
◾
Exempt-interest
dividends from a Fund are taken into account when determining the taxable portion of your social security or railroad retirement benefits,
may be subject to state and local income taxes, may affect the deductibility of interest on certain indebtedness, and may have other collateral
federal income tax consequences for you.
◾
There
are risks that: (a) a security issued as tax-exempt may be reclassified by the IRS or a state tax authority as taxable and/or (b) future
legislative,
administrative or court actions could adversely impact the qualification of income from a tax-exempt security as tax-free. Such reclassifications
or actions could cause interest from a security to become taxable, possibly retroactively, subjecting you to increased tax liability.
In addition, such reclassifications or actions could cause the value of a security, and therefore, the value of the Fund’s shares,
to decline.
Money
Market Funds
◾
A
Fund does not anticipate realizing any long-term capital gains.
◾
If
a Fund expects to maintain a stable net asset value of $1.00 per share, investors should not have any gain or loss on sale or exchange
of Fund shares (unless the investor incurs a liquidity fee on such sale or exchange). See “Liquidity Fees and Redemption Gates.”
◾
There
is some degree of uncertainty with respect to the tax treatment of liquidity fees received by a Fund, and such tax treatment may be the
subject of future IRS guidance. If a Fund receives liquidity fees, it will consider the appropriate tax treatment of such fees to the
Fund at such time.
◾
Unless
you choose to adopt a simplified “NAV method” of accounting (described below), any capital gain or loss on the sale or exchange
of Fund shares (as noted above) generally will be treated either as short-term if you held your Fund shares for one year or less, or long-term
if you held your Fund shares longer. If you elect to adopt the NAV method of accounting, rather than computing gain or loss on every taxable
disposition of Fund shares as described above, you would determine your gain or loss based on the change in the aggregate value of your
Fund shares during a computation period (such as your taxable year), reduced by your net investment (purchases minus sales) in those shares
during that period. Under the NAV method, any resulting net capital gain or loss would be treated as short-term capital gain or loss.
Funds
Investing in Real Estate Securities
◾
Because
of “noncash” expenses such as property depreciation, the cash flow of a REIT that owns properties will exceed its taxable
income. The REIT, and in turn a Fund, may distribute this excess cash to shareholders. Such a distribution is classified as a return of
capital. Return of capital distributions generally are not taxable to you. Your cost basis in your Fund shares will be decreased by the
amount of any return of capital. Any return of capital distributions in excess of your cost basis will be treated as capital gains.
◾
Dividends
paid to shareholders from the Funds’ investments in U.S. REITs generally will not qualify for taxation at long-term capital gain
rates applicable to qualified dividend income.
◾
The
Fund may derive “excess inclusion income” from certain equity interests in mortgage pooling vehicles either directly or through
an investment in a U.S. REIT. Please see the SAI for a discussion of the risks and special tax consequences to shareholders in the event
the Fund realizes excess inclusion income in excess of certain threshold amounts.
◾
Under
the Tax Cuts and Jobs Act, “qualified REIT dividends” (i.e., ordinary REIT dividends other than capital gain dividends and
portions of REIT dividends designated as qualified dividend income) are treated as eligible for a 20% deduction by noncorporate taxpayers.
The Fund may choose to report the special character of “qualified REIT dividends” to a shareholder, provided both the Fund
and a shareholder meet certain holding period requirements with respect to their shares.
◾
The
Fund’s foreign shareholders should see the SAI for a discussion of the risks and special tax consequences to them from a sale of
a U.S. real property interest by a REIT in which the Fund invests.
Funds
Investing in Partnerships
◾
Taxes,
penalties, and interest associated with an audit of a partnership
are generally required to be assessed and collected at the partnership level. Therefore, an adverse federal income tax audit of a partnership
that a Fund invests in (including MLPs taxed as partnerships) could result in the Fund being required to pay federal income tax. A Fund
may have little input in any audit asserted against a partnership and may be contractually or legally obligated to make payments in regard
to deficiencies asserted without the ability to put forward an independent defense. Accordingly,
A-22 The
Invesco Funds
even
if a partnership in which the Fund invests were to remain classified as a partnership (instead of as a corporation), it could be required
to pay additional taxes, interest and penalties as a result of an audit adjustment, and the Fund, as a direct or indirect partner of such
partnership, could be required to bear the economic burden of those taxes, interest and penalties, which would reduce the value of Fund
shares.
◾
Under
the Tax Cuts and Jobs Act “qualified publicly traded partnership income” is treated as eligible for a 20% deduction by noncorporate
taxpayers. The legislation does not contain a provision permitting a RIC, such as a Fund, to pass the special character of this income
through to its shareholders. It is uncertain whether a future technical corrections bill or regulations issued by the IRS will address
this issue to enable a Fund to pass through the special character of “qualified publicly traded partnership income” to its
shareholders.
◾
Some
amounts received by a Fund from the MLPs in which it invests likely will be treated as returns of capital to such Fund because of accelerated
deductions available to the MLPs. The receipt of returns of capital from the MLPs in which a Fund invests could cause some or all of the
Fund’s distributions to be classified as a return of capital. Return of capital distributions generally are not taxable to you.
Your cost basis in your Fund shares will be decreased by the amount of any return of capital. Any return of capital distributions in excess
of your cost basis will be treated as capital gains.
Funds
Investing in Commodities
◾
The
Funds’ strategies of investing through their respective Subsidiary in derivatives and other financially linked instruments whose
performance is expected to correspond to the commodity markets may cause the Funds to recognize more ordinary income and short-term capital
gains taxable as ordinary income than would be the case if the Funds invested directly in commodities.
◾
The
Funds must meet certain requirements under the Code for favorable tax treatment as a RIC, including asset diversification and income requirements.
The IRS has issued a revenue ruling which holds that income derived from commodity-linked swaps is not qualifying income for purposes
of the Income Requirement. In a subsequent revenue ruling, as well as in a number of follow-on private letter rulings (upon which only
the fund that received the private letter ruling may rely), the IRS provides that income from certain alternative investments which create
commodity exposure, such as certain commodity-linked or structured notes or a corporate subsidiary that invests in commodities, may be
considered qualifying income under the Code. However, the portion of such rulings relating to the treatment of a corporation as a regulated
investment company that require a determination of whether a financial instrument or position is a security under section 2(a)(36) of
the 1940 Act was revoked because of changes in the IRS’s position.
(A financial instrument or position that constitutes a security
under section 2(a)(36) of the 1940 Act generates qualifying income for a corporation taxed as a regulated investment company.) The Funds
intend to treat the income each derives from commodity-linked notes as qualifying income based on an opinion from counsel confirming that
income from such investments should be qualifying income because such commodity-linked notes constitute securities under section 2(a)(36)
of the 1940 Act. Each Subsidiary will be classified for federal income tax purposes as a controlled foreign corporation (CFC) with respect
to the Fund. As such, the Fund will be required to include in its gross income each year amounts earned by the Subsidiary during that
year (“Subpart F” income), whether or not such earnings are distributed by the Subsidiary to the Fund (deemed inclusions).
Treasury Regulations also permit the Fund to treat such deemed inclusions of “Subpart F” income from the Subsidiary as qualifying
income to the Fund, even if the Subsidiary does not make a distribution of such income. Consequently, the Fund and the Subsidiary reserve
the right to rely on deemed inclusions being treated as qualifying income to the Fund consistent with recently released Treasury Regulations.
If, contrary to the opinion of counsel or other guidance issued by the IRS, the IRS were to determine that income from direct investment
in commodity-linked notes is non-qualifying, a Fund might fail to satisfy
the
income requirement. In lieu of disqualification, the Funds are permitted to pay a tax for certain failures to satisfy the asset diversification
or income requirements, which, in general, are limited to those due to reasonable cause and not willful neglect. The Funds intend to limit
their investments in their respective Subsidiary to no more than 25% of the value of each Fund’s total assets in order to satisfy
the asset diversification requirement.
Funds
Investing in Foreign Currencies
◾
The
Funds may realize gains from the sale or other disposition of foreign currencies (including but not limited to gains from options, futures
or forward contracts) derived from investing in securities or foreign currencies. The U.S. Treasury Department is authorized to issue
regulations on whether the realization of such foreign currency gains is qualified income for the Funds. If such regulations are issued,
each Fund may not qualify as a RIC and/or the Fund may change its investment policy. As of the date of this prospectus, no regulations
have been issued pursuant to this authorization. It is possible, however, that such regulations may be issued in the future. Additionally,
the IRS has not issued any guidance on how to apply the asset diversification test to such foreign currency positions. Thus, the IRS’
determination as to how to treat such foreign currency positions for purposes of satisfying the asset diversification test might differ
from that of each Fund resulting in the Fund’s failure to qualify as a RIC. In lieu of disqualification, each Fund is permitted
to pay a tax for certain failures to satisfy the asset diversification or income requirements, which, in general, are limited to those
due to reasonable cause and not willful neglect.
◾
The
Funds’ transactions in foreign currencies may give rise to ordinary income or loss to the extent such income or loss results from
fluctuations in the value of the foreign currency concerned. This treatment could increase or decrease the Funds' ordinary income distributions
to you, and may cause some or all of the Funds' previously distributed income to be classified as a return of capital. Return of capital
distributions generally are not taxable to you. Your cost basis in your Fund shares will be decreased by the amount of any return of capital.
Any return of capital distributions in excess of your cost basis will be treated as capital gains.
This
discussion of “Taxes” is for general information only and not
tax advice. All investors should consult their own tax advisers as to the federal, state, local and foreign tax provisions applicable
to them.
Taxes
(applicable to the Invesco SteelPath Funds
only)
Although
the Code generally provides that a RIC does not pay an entity-level income tax, provided that it distributes all or substantially all
of its income, the Fund is not and does not anticipate becoming eligible to elect to be treated as a RIC because most or substantially
all of the Fund’s investments will consist of investments in MLP securities. The RIC tax rules therefore have no application to
the Fund or to its shareholders. As a result, the Fund is treated as a regular corporation, or “C” corporation, for U.S. federal
income tax purposes, and generally is subject to U.S. federal income tax on its taxable income at the corporate income tax rate. In addition,
as a regular corporation, the Fund will be subject to state and local taxes by reason of its tax status and its investments in MLPs. Therefore,
the Fund may have to pay federal, multiple state, and local taxes, which would reduce the Fund’s cash available to make distributions
to shareholders. An estimate for federal, state, and local tax liabilities will reduce the fund’s net asset value. The extent to
which the Fund is required to pay U.S. federal, state or local corporate income, franchise or other corporate taxes could materially reduce
the Fund’s cash available to make distributions to shareholders. In addition, investors in taxable accounts should be aware of the
following basic tax points as supplemented below where relevant:
Fund
Tax Basics
◾
The
Fund intends to invest a significant portion of its assets in MLPs, which are generally treated as partnerships for U.S. federal income
tax purposes. To the extent that the Fund invests in equity securities of an MLP, the Fund will be a partner in such MLP. Accordingly,
the Fund will be
A-23 The
Invesco Funds
required
to take into account the Fund’s allocable share of the income, gains, losses, deductions, and credits recognized by each such MLP,
regardless of whether the MLP distributes cash to the Fund. MLP distributions to partners, such as the Fund, are not taxable unless the
cash amount (or in certain cases, the fair market value of marketable securities) distributed exceeds the Fund’s basis in its MLP
interest. The Fund expects that the cash distributions it will receive with respect to its investments in equity securities of MLPs will
exceed the net taxable income allocated to the Fund from such MLPs because of tax deductions such as depreciation, amortization and depletion
that will be allocated to the Fund from the MLPs. No assurance, however, can be given in this regard. If this expectation is not realized,
the Fund will have a larger corporate income tax expense than expected, which will result in less cash available for distribution to shareholders.
◾
The
Fund will recognize gain or loss on the sale, exchange or other taxable disposition of its portfolio assets, including equity securities
of MLPs, equal to the difference between the amount realized by the Fund on the sale, exchange or other taxable disposition and the Fund’s
adjusted tax basis in such assets. Any such gain will be subject to U.S. federal income tax at the corporate income tax rate, regardless
of how long the Fund has held such assets since preferential capital gain rates do not apply to regular corporations such as the Fund.
The amount realized by the Fund in any case generally will be the amount paid by the purchaser of the assets plus, in the case of MLP
equity securities, the Fund’s allocable share, if any, of the MLP’s debt that will be allocated to the purchaser as a result
of the sale, exchange or other taxable disposition. The Fund’s tax basis in its equity securities in an MLP generally is equal to
the amount the Fund paid for the equity securities, (i) increased by the Fund’s allocable share of the MLP’s net taxable income
and certain MLP debt, if any, and (ii) decreased by the Fund’s allocable share of the MLP’s net losses and any distributions
received by the Fund from the MLP. Although any distribution by an MLP to the Fund in excess of the Fund’s allocable share of such
MLP’s net taxable income may create a temporary economic benefit to the Fund, net of a deferred tax liability, such distribution
will decrease the Fund’s tax basis in its MLP investment and will therefore increase the amount of gain (or decrease the amount
of loss) that will be recognized on the sale of an equity security in the MLP by the Fund. To the extent that the Fund has a net capital
loss in any year, the net capital loss can be carried back three taxable years and forward five taxable years to reduce the Fund’s
capital gains in such years. In the event a capital loss carryover cannot be utilized in the carryover periods, the Fund’s federal
income tax liability may be higher than expected, which will result in less cash available to distribute to shareholders.
◾
Distributions
by the Fund of cash or property in respect of the shares (other than certain distributions in redemption of shares) will be treated as
dividends for U.S. federal income tax purposes to the extent paid from the Fund’s current or accumulated earnings and profits (as
determined under U.S. federal income tax principles). Generally, the Fund’s earnings and profits are computed based upon the Fund’s
taxable income (loss), with certain specified adjustments. Any such dividend likely will be eligible for the dividends-received deduction
if received by an otherwise qualifying corporate U.S. shareholder that meets certain holding period and other requirements for the dividends-received
deduction. Dividends paid by the Fund to certain non-corporate U.S. shareholders (including individuals), generally are eligible for U.S.
federal income taxation at the rates generally applicable to long-term capital gains for individuals provided that the U.S. shareholder
receiving the dividend satisfies applicable holding period and other requirements. Otherwise, dividends paid by the Fund to non-corporate
U.S. Shareholders (including individuals) will be taxable at ordinary income rates.
◾
If
the amount of a Fund distribution exceeds the Fund’s current and accumulated earnings and profits, such excess will be treated first
as a tax-deferred return of capital to the extent of, and in reduction of, a shareholder’s tax basis in the shares, and thereafter
as capital gain to the extent the shareholder held the shares as a capital asset. Any such capital gain will be long-term capital gain
if such shareholder has held the applicable shares for more than one year. The portion of the distribution
received
by a shareholder from the Fund that is treated as a return of capital will decrease the shareholder’s tax basis in his or her Fund
shares (but not below zero), which will result in an increase in the amount of gain (or decrease in the amount of loss) that will be recognized
by the shareholder for tax purposes on the later sale of such Fund shares.
◾
The
Fund anticipates that the cash distributions it will receive with respect to its investments in equity securities of MLPs and which it
will distribute to its shareholders will exceed the Fund’s current and accumulated earnings and profits. Accordingly, the Fund expects
that only a part of its distributions to shareholders with respect to the shares will be treated as dividends for U.S. federal income
tax purposes. No assurance, however, can be given in this regard.
◾
Special
rules may apply to the calculation of the Fund’s earnings and profits. For example, the Fund’s earnings and profits will be
calculated using the straight-line depreciation method rather than the accelerated depreciation method. This difference in treatment may,
for example, result in the Fund’s earnings and profits being higher than the Fund’s taxable income or loss in a particular
year if the MLPs in which the Fund invests calculate their income using accelerated depreciation. Because of these special earnings profits
rules, the Fund may make distributions in a particular year out of earnings and profits (treated as dividends) in excess of the amount
of the Fund’s taxable income or loss for such year, which means that a larger percentage of the Fund ’s distributions could
be taxable to shareholders as ordinary income instead of tax-deferred return of capital or capital gain.
◾
Shareholders
that receive distributions in shares rather than in cash will be treated for U.S. federal income tax purposes as having (i) received a
cash distribution equal to the fair market value of the shares received and (ii) reinvested such amount in shares.
◾
A
redemption of shares will be treated as a sale or exchange of such shares, provided the redemption is not essentially equivalent to a
dividend, is a substantially disproportionate redemption, is a complete redemption of a shareholder’s entire interest in the Fund,
or is in partial liquidation of such Fund. Redemptions that do not qualify for sale or exchange treatment will be treated as distributions
as described above. Upon a redemption treated as a sale or exchange under these rules, a shareholder generally will recognize capital
gain or loss equal to the difference between the adjusted tax basis of his or her shares and the amount received when they are sold.
◾
If
the Fund is required to sell portfolio securities to meet redemption requests, the Fund may recognize income and gains for U.S. federal,
state and local income and other tax purposes, which may result in the imposition of corporate income or other taxes on the Fund and may
increase the Fund’s current and accumulated earnings and profits, which will result in a greater portion of distributions to Fund
shareholders being treated as dividends. Any long-term or short-term capital gains realized on sale or redemption of your Fund shares
will be subject to federal income tax. For tax purposes an exchange of your shares for shares of another Fund is the same as a sale. An
exchange occurs when the purchase of shares of a Fund is made using the proceeds from a redemption of shares of another Fund and is effectuated
on the same day as the redemption. Your gain or loss is calculated by subtracting from the gross proceeds your cost basis. Gross proceeds
and, for shares acquired on or after January 1, 2012 and disposed of after that date, cost basis will be reported to you and the IRS.
Cost basis will be calculated using the Fund’s default method of first-in, first-out (FIFO), unless you instruct the Fund to use
a different calculation method. Shareholders should carefully review the cost basis information provided by a Fund and make any additional
basis, holding period or other adjustments that are required when reporting these amounts on their federal income tax returns. If you
hold your Fund shares through a broker (or other nominee), please contact that broker (nominee) with respect to reporting of cost basis
and available elections for your account. For more information about the cost basis methods offered by Invesco, please refer to the Tax
Center located under the Account Access & Forms menu of our website at www.invesco.com/us.
A-24 The
Invesco Funds
◾
The
conversion of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes
and no gain or loss will be reported on the transaction. This is true whether the conversion occurs automatically pursuant to the terms
of the class or is initiated by the shareholder.
◾
At
the time you purchase your Fund shares, the Fund’s net asset value may reflect undistributed income. A subsequent distribution to
you of such amounts, although constituting a return of your investment, would be taxable. Buying shares in a Fund just before it declares
an income dividend is sometimes known as “buying a dividend.” In addition, a Fund’s net asset value may, at any time,
reflect net unrealized appreciation, which may result in future taxable distributions to you.
◾
By
law, if you do not provide a Fund with your proper taxpayer identification number and certain required certifications, you may be subject
to backup withholding on any distributions of income, capital gains, or proceeds from the sale of your shares. A Fund also must withhold
if the IRS instructs it to do so. When withholding is required, the amount will be 24% of any distributions or proceeds paid.
◾
A
3.8% Medicare tax is imposed on certain net investment income (including ordinary dividends received from a Fund and net gains from redemptions
or other taxable dispositions of Fund shares) of U.S. individuals, estates and trusts to the extent that such person’s “modified
adjusted gross income” (in the case of an individual) or “adjusted gross income” (in the case of an estate or trust)
exceeds a threshold amount. This Medicare tax, if applicable, is reported by you on, and paid with, your federal income tax return.
◾
Fund
distributions and gains from sale or exchange of your Fund shares generally are subject to state and local income taxes.
◾
Foreign
investors should be aware that U.S. withholding, special certification requirements to avoid U.S. backup withholding and claim any treaty
benefits, and estate taxes may apply to an investment in a Fund.
◾
Under
the Foreign Account Tax Compliance Act (FATCA), a Fund will be required to withhold a 30% tax on income dividends made by the Fund to
certain foreign entities, referred to as foreign financial institutions or non-financial foreign entities, that fail to comply (or be
deemed compliant) with extensive reporting and withholding requirements designed to inform the U.S. Department of the Treasury of U.S.-owned
foreign investment accounts. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide otherwise (which
is not expected). A Fund may disclose the information that it receives from its shareholders to the IRS, non-U.S. taxing authorities or
other parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that is a shareholder
of a Fund fails to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.
◾
Taxes,
penalties, and interest associated with an audit of a partnership are generally required to be assessed and collected at the partnership
level. Therefore, an adverse federal income tax audit of an MLP taxed as a partnership that the Fund invests in could result in the Fund
being required to pay federal income tax. The Fund may have little input in any audit asserted against an MLP and may be contractually
or legally obligated to make payments in regard to deficiencies asserted without the ability to put forward an independent defense. Accordingly,
even if an MLP in which the Fund invests were to remain classified as a partnership, it could be required to pay additional taxes, interest
and penalties as a result of an audit adjustment, and the Fund, as a direct or indirect partner of such MLP, could be required to bear
the economic burden of those taxes, interest and penalties, which would reduce the value of Fund shares.
◾
Under
the Tax Cuts and Jobs Act certain “qualified publicly traded partnership income” (e.g., certain income from certain of the
MLPs in which the Fund invests) is treated as eligible for a 20% deduction by noncorporate taxpayers. The Tax Cuts and Jobs Act does not
contain a provision permitting an entity, such as the Fund, to benefit from this
deduction
(since the Fund is taxed as a “C” corporation) or pass the special character of this income through to its shareholders. Qualified
publicly traded partnership income allocated to a noncorporate investor investing directly in an MLP might, however, be eligible for the
deduction.
The
above discussion concerning the taxability of Fund dividends and distributions
and of redemptions and exchanges of Fund shares is inapplicable to investors holding shares through a tax-advantaged arrangement, such
as Retirement and Benefit Plans or 529 college savings plans. Such investors should refer to the applicable account documents/program
description for that arrangement for more information regarding the tax consequences of holding and redeeming Fund shares.
This
discussion of “Taxes” is for general information only and not
tax advice. All investors should consult their own tax advisers as to the federal, state, local and foreign tax provisions applicable
to them.
Federal
Income Taxes (applicable to Invesco Master Loan Fund only)
United
States Taxes
The
Fund is classified as a partnership and will not be a regulated investment company for US federal income tax purposes. As a partnership,
the Fund is not a taxable entity for federal income tax purposes and, subject to the application of the partnership audit rules described
below, incurs no federal income tax liability. Each Investor is required to take into account its proportionate share of items of income,
gain, loss and deduction of the partnership in computing its federal income tax liability regardless of whether or not cash or property
distributions are then made by the Fund. Following the close of the Fund’s taxable year end, Investors will receive a tax statement
entitled Schedule K-1 Partner’s Share of Income, Deductions, Credits, etc., which reports the tax status of their distributive share
of the Fund’s items for the previous year.
Taxation
of Distributions, Sales and Exchanges
In
general, distributions of money by the Fund to an Investor will represent a non-taxable return of capital up to the amount of an Investor’s
adjusted tax basis in its shares. An Investor will recognize gain to the extent that any money distributed by the Fund exceeds the Investor’s
adjusted tax basis in its shares. In the case of a non-taxable return of capital by the Fund to an Investor, other than in liquidation
of the Investor’s interest in the Fund, the tax basis of his shares will be reduced (but not below zero) and will result in an increase
in the amount of gain (or decrease in the amount of loss) that will be recognized by the Investor on the later sale of its shares. A distribution
in partial or complete redemption of your shares in the Fund is taxable as a sale or exchange only to the extent the amount of money received
exceeds the tax basis of your entire interest in the Fund. Any loss may be recognized only if you redeem your entire interest in the Fund
for money.
When
you sell shares of the Fund, you may have a capital gain or loss.
Derivatives
The
use of derivatives by the Fund may cause the Fund to realize higher amounts of ordinary income or short-term capital gain, allocations
of which are taxable to individual Investors at ordinary income tax rates rather than at the more favorable tax rates for long-term capital
gain. Changes in government regulation of derivative instruments could affect the character, timing and amount of the Fund’s taxable
income or gains, and may limit the Fund from using certain types of derivative instruments as part of its investment strategy.
Risk
of Audit of the Fund
Under
the partnership audit rules, which are generally applicable to tax years beginning after December 31, 2017, the Internal Revenue Service
(“IRS”) may collect any taxes resulting from audit adjustments to the Fund’s income tax returns (including any applicable
penalties and interest) directly from the Fund. In that case, current Investors would bear some or all of the
A-25 The
Invesco Funds
tax liability
resulting from such audit adjustment, even if they did not own interests in the Fund during the tax year under audit. The Fund may have
the ability to shift any such tax liability to the Investors in accordance with their interests in the Fund during the year under audit,
but there can be no assurance that the Fund will be able to do so under all circumstances. For taxable years not subject to the new audit
rules, items of Fund income, gain, loss, deduction and credit will be determined at the Fund level in a unified audit. NO REPRESENTATION
OR WARRANTY OF ANY KIND IS MADE WITH RESPECT TO THE TAXATION, DEDUCTIBILITY OR CAPITALIZATION OF ANY ITEM BY THE FUND OR INVESTOR. In
addition, the “partnership representative” (tax matters partner, for taxable years before the partnership audit rules become
effective) will have the sole authority to act on the Fund’s behalf for purposes of, among other things, federal income tax audits
and judicial review of administrative adjustments by the IRS, and any such actions will be binding on the Fund and all of the Investors.
Unrelated
Business Taxable Income
An
allocable share of a tax-exempt Investor’s income will be “unrelated business taxable income” (“UBTI”) to
the extent that the Fund borrows money to acquire property or invests in assets that produce UBTI.
Medicare
Tax
An
additional 3.8% Medicare tax is imposed on certain net investment income of US individuals, estates and trusts to the extent that such
person’s “modified adjusted gross income” (in the case of an individual) or “adjusted gross income” (in
the case of an estate or trust) exceeds a threshold amount. “Net investment income,” for these purposes, means investment
income (including (i) net gains from the taxable disposition of shares of a Fund to the extent the net gain would be taken into account
by the Investor if the Fund sold all of its property for fair market value immediately before the disposition of the shares of the Fund,
and (ii) an allocable share of a Fund’s interest, dividends and net gains) reduced by the deductions properly allocable to such
income. This Medicare tax, if applicable, is reported by Investors on, and paid with, the Investor’s federal income tax return.
State,
Local and Non-US Tax Matters
An
Investor’s distributive share of the Fund’s income, and gains from the sale or exchange of an Investor’s Fund shares,
generally are subject to state and local taxes in the jurisdiction in which the Investor resides or is otherwise subject to tax.
Prospective
investors should consider their individual state and local tax consequences
of an investment in the Fund.
Tax
Considerations for Non-US Investors
If,
as anticipated, the Fund is not deemed to be engaged in a US trade or business, the Fund generally will be required to withhold tax on
the distributive share of certain items of gross income from US sources allocated to non-US Investors at a 30% (or lower treaty) rate.
Certain categories of income, including portfolio interest, are not subject to US withholding tax. Capital gains (other than gain realized
on disposition of US real property interests) are not subject to US withholding tax unless the non-US Investor is a nonresident alien
individual present in the United States for a period or periods aggregating 183 days or more during the taxable year. If, on the other
hand, the Fund derives income which is effectively connected with a US trade or business carried on by the Fund, this 30% tax will not
apply to such effectively connected income of the Fund, and the Fund generally will be required to withhold tax from the amount of effectively
connected income allocable to non-US Investors at the highest rate of tax applicable to US residents, and non-US Investors generally would
be required to file US income tax returns and be subject to US income tax on a net basis. Gain or loss on a sale of shares will be treated
as effectively connected with a U.S. trade or business to the extent that a foreign corporation or foreign individual that owns the shares
(whether directly or indirectly through other partnerships) would have had effectively connected gain or loss had the partnership sold
its underlying assets and applicable US
withholding
tax will apply. Non-US Investors may be subject to US estate tax and are subject to special US tax certification requirements.
Other
Reporting and Withholding Requirements
Under
the Foreign Account Tax Compliance Act (“FATCA”), the Fund will be required to withhold at a 30% rate on certain US source
payments (such as interest and dividends) to certain Investors if the Investor fails to provide the Fund with the information which identifies
its direct and indirect US ownership. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide otherwise (which
is not expected). A Fund may disclose the information that it receives from an Investor to the IRS, non-US taxing authorities or other
parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that is an Investor fails
to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.
For
a more complete discussion of the federal income tax consequences
of investing in the Fund, see the Statement of Additional Information.
This
discussion of “Federal Income Taxes” is not intended or written
to be used as tax advice. Because everyone’s tax situation is unique, Investors should consult their tax professional about federal,
state, local and foreign tax consequences before making an investment in the Fund.
Payments
to Financial Intermediaries – All Share Classes except Class R6 shares
The
financial adviser or intermediary through which you purchase your shares may receive all or a portion of the sales charges and distribution
fees discussed above. In addition to those payments, Invesco Distributors and other Invesco Affiliates, may make additional cash payments
to financial intermediaries in connection with the promotion and sale of shares of the Funds. These additional cash payments may include
cash payments and other payments for certain marketing and support services. Invesco Affiliates make these payments from their own resources,
from Invesco Distributors’ retention of initial sales charges and from payments to Invesco Distributors made by the Funds under
their 12b-1 plans. In the context of this prospectus, “financial intermediaries” include any broker, dealer, bank (including
bank trust departments), registered investment adviser, financial planner, retirement plan administrator, insurance company and any other
financial intermediary having a selling, administration or similar agreement with Invesco Affiliates.
The
benefits Invesco Affiliates receive when they make these payments include,
among other things, placing the Funds on the financial intermediary’s fund sales system, and access (in some cases on a preferential
basis over other competitors) to individual members of the financial intermediary’s sales force or to the financial intermediary’s
management. These payments are sometimes referred to as “shelf space” payments because the payments compensate the financial
intermediary for including the Funds in its fund sales system (on its “sales shelf”). Invesco Affiliates compensate financial
intermediaries differently depending typically on the level and/or type of considerations provided by the financial intermediary. The
payments Invesco Affiliates make may be calculated based on sales of shares of the Funds (Sales-Based Payments), in which case the total
amount of such payments shall not exceed 0.25% (0.10% for Class R5 shares) of the public offering price of all shares sold by the financial
intermediary during the particular period. Payments may also be calculated based on the average daily net assets of the applicable Funds
attributable to that particular financial intermediary (Asset-Based Payments), in which case the total amount of such cash payments shall
not exceed 0.25% per annum of those assets during a defined period. Sales-Based Payments primarily create incentives to make new sales
of shares of the Funds and Asset-Based Payments primarily create incentives to retain previously sold shares of the Funds in investor
accounts. Invesco Affiliates
A-26 The
Invesco Funds
may pay a financial
intermediary either or both Sales-Based Payments and Asset-Based Payments.
Invesco
Affiliates are motivated to make these payments as they promote
the sale of Fund shares and the retention of those investments by clients of the financial intermediaries. To the extent financial intermediaries
sell more shares of the Funds or retain shares of the Funds in their clients’ accounts, Invesco Affiliates benefit from the incremental
management and other fees paid to Invesco Affiliates by the Funds with respect to those assets.
The
Funds’ transfer agent may make payments to certain financial intermediaries
for certain administrative services, including record keeping and sub-accounting of shareholder accounts pursuant to a sub-transfer agency,
omnibus account service or sub-accounting agreement. All fees payable by Invesco Affiliates under this category of services are charged
back to the Funds, subject to certain limitations approved by the Board.
You
can find further details in the Fund’s SAI about these payments and the
services provided by financial intermediaries. In certain cases these payments could be significant to the financial intermediaries. Your
financial adviser may charge you additional fees or commissions other than those disclosed in this prospectus. You can ask your financial
adviser about any payments it receives from Invesco Affiliates or the Funds, as well as about fees and/or commissions it charges.
Important
Notice Regarding Delivery of Security Holder Documents
To
reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address
(Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not
want the mailing of these documents to be combined with those for other members of your household, please contact the Funds’ transfer
agent at 800-959-4246 or contact your financial institution. The Funds’ transfer agent will begin sending you individual copies
for each account within thirty days after receiving your request.
A-27 The
Invesco Funds
Obtaining Additional Information
More information
may be obtained free of charge upon request. The SAI, a current version of which is on file with the SEC, contains more details about
the Fund and is incorporated by reference into this prospectus (is legally a part of this prospectus). Annual and semi-annual reports
to shareholders contain additional information about the Fund’s investments. The Fund’s annual report also discusses the market
conditions and investment strategies that significantly affected the Fund’s performance during its last fiscal year. The Fund also
files its complete schedule of portfolio holdings with the SEC for the 1st and 3rd quarters of each fiscal year as an exhibit to its reports
on Form N-PORT.
If
you have questions about an Invesco Fund or your account, or you wish to obtain a free copy of the Fund’s current SAI, annual or
semi-annual reports or Form N-PORT, please contact us.
|
By
Mail: |
Invesco
Investment Services, Inc.
P.O.
Box 219078
Kansas
City, MO 64121-9078 |
|
By
Telephone: |
(800)
959-4246 |
|
On
the Internet: |
You
can send us a request by e-mail or
download
prospectuses, SAIs, annual or
semi-annual
reports via our website:
www.invesco.com/us
|
Reports
and other information about the Fund are available on the EDGAR Database on the SEC's Internet site at http://www.sec.gov, and copies
of this information may be obtained, after paying a duplicating fee, by electronic request at the following e-mail address: publicinfo@sec.gov.
|
Invesco
Floating Rate ESG Fund
SEC 1940 Act file
number: 811-09913 |
|
invesco.com/us
|
FLR-PRO-1
|
Prospectus
December
16,
2022
Class:
A (ASRAX ), C (ASRCX ), Y (ASRYX ),
R5 (ASRIX ), R6 (ASRFX )
Invesco
Global Real Estate Income Fund
As
with all other mutual fund securities, the U.S. Securities and Exchange Commission (SEC) has not approved or disapproved these securities
or passed upon the adequacy of this prospectus. Any representation to the contrary is a criminal offense.
An
investment in the Fund:
◾
is
not FDIC insured;
◾
may
lose value; and
◾
is
not guaranteed by a bank.
Table of Contents
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A-1
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A-1
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A-2
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A-3
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A-3
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A-10
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A-11
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A-13
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A-15
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A-17
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A-17
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A-18
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A-21
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A-23
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A-25
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A-26
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A-27
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Back
Cover |
Invesco
Global Real Estate Income Fund
The
Fund’s investment objective is current income
and, secondarily,
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:
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A
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C
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Y
|
R5
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R6
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Maximum
Sales Charge (Load) Imposed on Purchases
(as
a percentage of offering price) |
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Maximum
Deferred Sales Charge (Load) (as a
percentage
of original purchase price or redemption
proceeds,
whichever is less) |
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Class:
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A
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C
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Y
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R5
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R6
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Management
Fees |
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Distribution
and/or Service (12b-1) Fees |
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Other
Expenses |
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Acquired
Fund Fees and Expenses |
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Total
Annual Fund Operating Expenses |
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1
The
Example assumes that you invest $10,000 in the Fund for the time periods
indicated and then redeem all of your shares at the end of those periods. This Example does not include commissions and/or other forms
of compensation that investors may pay on transactions in Class Y and Class R6 shares. The Example also assumes that your investment has
a 5% return each year and that the Fund’s operating expenses remain the same.
Although
your actual costs may be higher or lower, based on these assumptions,
your costs would be:
|
|
1
Year |
3
Years |
5
Years |
10
Years |
|
Class
A |
$
|
$
|
$
|
$
|
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Class
C |
$
|
$
|
$
|
$
|
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| ||||
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Class
Y |
$
|
$
|
$
|
$
|
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Class
R5 |
$
|
$
|
$
|
$
|
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Class
R6 |
$
|
$
|
$
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$
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|
|
1
Year |
3
Years |
5
Years |
10
Years |
|
Class
A |
$
|
$
|
$
|
$
|
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| ||||
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Class
C |
$
|
$
|
$
|
$
|
|
| ||||
|
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 the securities
of real estate and real estate related issuers, and in derivatives and other instruments that have economic characteristics similar to
such securities. The
Fund invests primarily in real estate investment trusts (REITs), depositary receipts, equity securities (including common and preferred
stock and convertible securities) of domestic and foreign issuers, and debt securities of domestic and foreign issuers (including corporate
debt obligations and commercial mortgage-backed securities).
The
Fund will concentrate its investments in the securities of domestic
and foreign companies principally engaged in the real estate industry and other real estate related investments. For purposes of the Fund’s
80% policy, the Fund considers an issuer to be a real estate or real estate related issuer if at least 50% of its assets, gross income
or net profits are attributable to ownership, financing, construction, management, or sale of residential, commercial or industrial real
estate. These issuers include: (i) listed equity REITs and other real estate operating issuers that either (a) own property or make construction
or mortgage loans, (b) are real estate developers, or (c) are companies with substantial real estate holdings; and (ii) other issuers
whose products and services are related to the real estate industry. Other real estate related investments may include but are not limited
to commercial or residential mortgage backed securities, commercial property whole loans, and other types of equity and debt securities
related to the real estate industry.
The
Fund may invest up to 30% of its net assets in below-investment grade
securities (commonly known as “junk bonds”) of real estate and real estate related issuers.
Under
normal circumstances, the Fund will provide exposure to investments
that are economically tied to at least three different countries, including the U.S. The Fund may invest up to 20% of its net assets in
securities of issuers located in emerging markets countries, i.e., those that are generally in the early stages of their industrial cycles.
The
Fund may invest in securities of issuers of all capitalization sizes. Real
estate companies tend to have smaller asset bases compared with other market sectors, therefore, the Fund may hold a significant amount
of securities of small- and mid-capitalization issuers.
The
Fund may also invest in securities that are subject to resale restrictions
such as those contained in Rule 144A promulgated under the Securities Act of 1933, as amended (the “Securities Act”).
The
Fund can invest in derivative instruments including forward foreign currency
contracts.
The
Fund can use forward foreign currency contracts to hedge against adverse
movements in the foreign currencies in which portfolio securities
1 Invesco
Global Real Estate Income Fund
are denominated;
though the Fund has not historically used these instruments.
The
portfolio managers evaluate securities based primarily on the relative
attractiveness of income with a secondary consideration for the potential for capital appreciation. The qualified investment universe
includes global public real estate equity and debt securities. When constructing the portfolio, the portfolio managers first set a strategic
equity versus debt asset allocation and then apply a fundamentals-driven investment process. The equity versus debt allocation is determined
by assessing the implied market pricing and projected risk adjusted returns of equity and debt investment alternatives. This assessment
is conducted while seeking to achieve a level of diversification within asset categories and is influenced by a variety of factors including
the macroeconomic environment, capital market sentiment, absolute return expectations, liquidity and distribution of return outcomes.
Following the strategic asset allocation decision, the fundamental real estate and securities analysis includes an evaluation of factors
such as property market cycle analysis, property evaluation, management and structure review, as well as relative value analysis using
earnings data and other fundamental variables to identify securities with characteristics including (i) attractive relative yields; (ii)
favorable property market outlook; and (iii) attractive valuations relative to peer investment alternatives.
As
part of the Fund’s investment process to implement its investment strategy
in pursuit of its investment objective, the Fund’s portfolio managers may also consider both qualitative and quantitative environmental,
social and governance (“ESG”) factors they believe to be material to understanding an issuer’s fundamentals, assess
whether any ESG factors pose a material financial risk or opportunity to the issuer and determine whether such risks are appropriately
reflected in the issuer’s valuation. This analysis may involve the use of third-party research as well as proprietary research.
Consideration of ESG factors is just one component of the portfolio managers’ assessment of issuers eligible for investment and
not necessarily determinative to an investment decision. Therefore, the Fund’s portfolio managers may still invest in securities
of issuers that may be viewed as having a high ESG risk profile. The ESG factors considered by the Fund’s portfolio managers may
change over time, one
or more factors may not be relevant with respect to all issuers eligible for investment and ESG considerations may not be applied to each
issuer or Fund investment.
The
portfolio managers seek to limit risk through various controls, such as
diversifying the portfolio asset categories, property types and geographic areas, as well as by considering the relative liquidity of
each security and limiting the size of any one holding.
The
portfolio managers will consider selling a security if they conclude: (1)
its relative yield and/or valuation have fallen below desired levels, (2) its risk/return profile has changed significantly, (3) its fundamentals
have changed significantly, or (4) a more attractive investment opportunity is identified.
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, natural or environmental disasters, widespread disease or other public health issues, war, military conflict, acts
of terrorism
or adverse investor sentiment generally. 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.
Investing
in Stocks Risk. The value of the Fund’s portfolio may be
affected by changes in the stock markets. Stock markets may experience significant short-term volatility and may fall 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.
REIT
Risk/Real Estate Risk. Investments
in real estate related instruments may be adversely affected by economic, legal, cultural, environmental or technological factors that
affect property values, rents or occupancies. Shares of real estate related companies, which tend to be small- and mid-cap companies,
may be more volatile and less liquid than larger companies. If a real estate related company defaults on certain types of debt obligations
held by the Fund, the Fund may acquire real estate directly, which involves additional risks such as environmental liabilities; difficulty
in valuing and selling the real estate; and economic or regulatory changes.
Foreign
Securities Risk. The Fund's foreign investments may be adversely
affected by political and social instability, changes in economic or taxation policies, difficulty in enforcing obligations, decreased
liquidity or increased volatility. 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. There may be less public information available about foreign companies than U.S. companies, making it difficult
to evaluate those foreign companies. 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.
Geographic
Focus Risk. The Fund may from time to time have a substantial amount
of its assets invested in securities of issuers located in a single country or a limited number of countries. Adverse economic, political
or social conditions in those countries may therefore have a significant negative impact on the Fund’s investment performance.
Depositary
Receipts Risk. Investing in depositary receipts involves the same
risks as direct investments in foreign securities. In addition, the underlying issuers of certain depositary receipts are under no obligation
to distribute shareholder communications or pass through any voting rights with respect to the deposited securities to the holders of
such receipts. The
2 Invesco
Global Real Estate Income Fund
Fund may
therefore receive less timely information or have less control than if it invested directly in the foreign issuer.
Small-
and Mid-Capitalization Companies Risk. Investing in securities
of small- and mid-capitalization companies involves greater risk than customarily is associated with investing in larger, more established
companies. Stocks of small- and mid-capitalization companies tend to be more vulnerable to changing market conditions, may have little
or no operating history or track record of success, and may have more limited product lines and markets, less experienced management and
fewer financial resources than larger companies. These companies’ securities may be more volatile and less liquid than those of
more established companies. They may be more sensitive to changes in a company’s earnings expectations and may experience more abrupt
and erratic price movements. Smaller companies’ securities often trade in lower volumes and in many instances, are traded over-the-counter
or on a regional securities exchange, where the frequency and volume of trading is substantially less than is typical for securities of
larger companies traded on national securities exchanges. Therefore, the securities of smaller companies may be subject to wider price
fluctuations and it might be harder for the Fund to dispose of its holdings at an acceptable price when it wants to sell them. Since small-
and mid-cap companies typically reinvest a high proportion of their earnings in their business, they may not pay dividends for some time,
particularly if they are newer companies. It may take a substantial period of time to realize a gain on an investment in a small- or mid-cap
company, if any gain is realized at all.
Preferred
Securities Risk. Preferred securities are subject to issuer-specific
and market risks applicable generally to equity securities. Preferred securities also may be subordinated to bonds or other debt instruments,
subjecting them to a greater risk of non-payment, may be less liquid than many other securities, such as common stocks, and generally
offer no voting rights with respect to the issuer.
Convertible
Securities Risk. The market values of convertible securities are
affected by market interest rates, the risk of actual issuer default on interest or principal payments and the value of the underlying
common stock into which the convertible security may be converted. Additionally, a convertible security is subject to the same types of
market and issuer risks that apply to the underlying common stock. In addition, certain convertible securities are subject to involuntary
conversions and may undergo principal write-downs upon the occurrence of certain triggering events, and, as a result, are subject to an
increased risk of loss. Convertible securities may be rated below investment grade, which are considered to have more speculative characteristics
and greater susceptibility to default or decline in market value than investment grade securities.
Emerging
Market Securities Risk. Emerging markets (also referred to as developing
markets) are generally subject to greater market volatility, political, social and economic instability, uncertain trading markets and
more governmental limitations on foreign investment than more developed markets. In addition, companies operating in emerging markets
may be subject to lower trading volume and greater price fluctuations than companies in more developed markets. Such countries’
economies may be more dependent on relatively few industries or investors that may be highly vulnerable to local and global changes. 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. As a result, information, including financial information, about
such companies may be less available and reliable, which can impede the Fund’s ability to evaluate such companies. Securities law
and the enforcement of systems of taxation in many emerging market countries may change quickly and unpredictably, and the ability to
bring and enforce actions (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), or to obtain information needed to pursue or enforce such
actions,
may be limited. In addition, the ability of foreign entities to participate in privatization programs of certain developing or emerging
market countries may be limited by local law. Investments in emerging market securities may be subject to additional transaction costs,
delays in settlement procedures, unexpected market closures, and lack of timely information.
Debt
Securities Risk. The prices of debt securities held by the Fund
will be affected by changes in interest rates, the creditworthiness of the issuer and other factors. An increase in prevailing interest
rates typically causes the value of existing debt securities to fall and often has a greater impact on longer-duration debt securities
and higher quality debt securities. Falling interest rates will cause the Fund to reinvest the proceeds of debt securities that have been
repaid by the issuer at lower interest rates. Falling interest rates may also reduce the Fund’s distributable income because interest
payments on floating rate debt instruments held by the Fund will decline. The Fund could lose money on investments in debt securities
if the issuer or borrower fails to meet its obligations to make interest payments and/or to repay principal in a timely manner. Changes
in an issuer’s financial strength, the market’s perception of such strength or in the credit rating of the issuer or the security
may affect the value of debt securities. The Adviser’s credit analysis may fail to anticipate such changes, which could result in
buying a debt security at an inopportune time or failing to sell a debt security in advance of a price decline or other credit event.
High
Yield Debt Securities (Junk Bond) Risk. Investments in high yield
debt securities (“junk bonds”) and other lower-rated securities will subject the Fund to substantial risk of loss. These securities
are considered to be speculative with respect to the issuer’s ability to pay interest and principal when due, are more susceptible
to default or decline in market value and are less liquid than investment grade debt securities. Prices of high yield debt securities
tend to be very volatile.
Mortgage-
and Asset-Backed Securities Risk. Mortgage- and asset-backed securities,
including collateralized debt obligations and collateralized mortgage obligations, are subject to prepayment or call risk, which is the
risk that a borrower's payments may be received earlier or later than expected due to changes in prepayment rates on underlying loans.
This could result in the Fund reinvesting these early payments at lower interest rates, thereby reducing the Fund's income. Mortgage-
and asset-backed securities also are subject to extension risk, which is the risk that an unexpected rise in interest rates could reduce
the rate of prepayments, causing the price of the mortgage- and asset-backed securities and the Fund’s share price to fall. An unexpectedly
high rate of defaults on the mortgages held by a mortgage pool may adversely affect the value of mortgage-backed securities and could
result in losses to the Fund. Privately-issued mortgage-backed securities and asset-backed securities may be less liquid than other types
of securities and the Fund may be unable to sell these securities at the time or price it desires. During periods of market stress or
high redemptions, the Fund may be forced to sell these securities at significantly reduced prices, resulting in losses. Liquid privately-issued
mortgage-backed securities and asset-backed securities can become illiquid during periods of market stress. Privately-issued mortgage-related
securities are not subject to the same underwriting requirements as those with government or government-sponsored entity guarantees and,
therefore, mortgage loans underlying privately-issued mortgage-related securities may have less favorable collateral, credit risk, liquidity
risk or other underwriting characteristics, and wider variances in interest rate, term, size, purpose and borrower characteristics.
Rule 144A Securities
and Other Exempt Securities Risk.
The market for Rule 144A and other securities exempt from certain registration requirements typically is less active than the market for
publicly-traded securities.
Rule 144A and other exempt securities, which
are also known as
privately issued securities, carry the risk
that their liquidity may become impaired and the Fund may be unable to dispose of the securities at a desirable time or price.
3 Invesco
Global Real Estate Income Fund
Changing
Fixed Income Market Conditions Risk. Increases
in the federal funds and equivalent foreign rates or other changes to monetary policy or regulatory actions may expose fixed income markets
to heightened volatility and reduced liquidity for certain fixed income investments, particularly those with longer maturities. It is
difficult to predict the impact of interest rate changes on various markets. In addition, decreases in fixed income dealer market-making
capacity may also potentially lead to heightened volatility and reduced liquidity in the fixed income markets. As a result, the value
of the Fund’s investments and share price may decline. Changes in central bank policies could also result in higher than normal
redemptions by shareholders, which could potentially increase the Fund’s portfolio turnover rate and transaction costs.
Derivatives
Risk. The value of a derivative instrument depends largely on (and
is derived from) the value of an underlying security, currency, commodity, interest rate, index or other asset (each referred to as an
underlying asset). In addition to risks relating to the underlying assets, the use of derivatives may include other, possibly greater,
risks, including counterparty, leverage and liquidity risks. Counterparty risk is the risk that the counterparty to the derivative contract
will default on its obligation to pay the Fund the amount owed or otherwise perform under the derivative contract. Derivatives create
leverage risk because they do not require payment up front equal to the economic exposure created by holding a position in the derivative.
As a result, an adverse change in the value of the underlying asset could result in the Fund sustaining a loss that is substantially greater
than the amount invested in the derivative or the anticipated value of the underlying asset, which may make the Fund’s returns more
volatile and increase the risk of loss. Derivative instruments may also be less liquid than more traditional investments and the Fund
may be unable to sell or close out its derivative positions at a desirable time or price. This risk may be more acute under adverse market
conditions, during which the Fund may be most in need of liquidating its derivative positions. Derivatives may also be harder to value,
less tax efficient and subject to changing government regulation that could impact the Fund’s ability to use certain derivatives
or their cost. Derivatives strategies may not always be successful. For example, derivatives used for hedging or to gain or limit exposure
to a particular market segment may not provide the expected benefits, particularly during adverse market conditions.
Environmental,
Social and Governance (ESG) Considerations Risk. The ESG considerations
that may be assessed as part of the investment process to implement the Fund’s investment strategy in pursuit of its investment
objective may vary across types of eligible investments and issuers, and not every ESG factor may be identified or evaluated for every
investment, and not every investment or issuer may be evaluated for ESG considerations. The Fund’s portfolio will not be solely
based on ESG considerations, and therefore the issuers in which the Fund invests may not be considered ESG-focused issuers. The incorporation
of ESG factors may affect the Fund’s exposure to certain issuers or industries and may not work as intended. The Fund may underperform
other funds that do not assess an issuer’s ESG factors or that use a different methodology to identify and/or incorporate ESG factors.
Information used by the Fund to evaluate such factors may not be readily available, complete or accurate, and may vary across providers
and issuers as ESG is not a uniformly defined characteristic. There is no guarantee that the evaluation of ESG considerations will be
additive to the Fund’s performance.
Management
Risk. The Fund is actively managed and depends heavily on the Adviser’s
judgment about markets, interest rates or the attractiveness, relative values, liquidity, or potential appreciation of particular investments
made for the Fund’s portfolio. The Fund could experience losses if these judgments prove to be incorrect. Additionally, legislative,
regulatory, or tax developments may adversely affect management of the Fund and, therefore, the ability of the Fund to achieve its investment
objective.
Fund
performance reflects any applicable fee waivers and expense reimbursements.
Performance returns would be lower without applicable fee waivers and expense reimbursements.
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, 2021)
|
|
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
Y |
|
|
|
|
|
| ||||
|
Class
R5 |
|
|
|
|
|
| ||||
|
Class
R61 |
|
|
|
|
|
| ||||
|
Custom
Invesco Global Real Estate Income Index2
|
|
|
|
|
|
| ||||
|
MSCI
World Index (Net) net
of withholding taxes, but reflects no deduction
for
fees, expenses or taxes) |
|
|
|
|
|
| ||||
|
Lipper
Global Real Estate Funds Classification
Average
|
|
|
|
|
|
| ||||
1
2
4 Invesco
Global Real Estate Income Fund
Management
of the Fund
Investment
Adviser: Invesco Advisers, Inc. (Invesco or the Adviser)
Investment
Sub-Adviser: Invesco Asset Management Limited
|
Portfolio
Managers |
Title
|
Length
of Service on the Fund |
|
Mark
Blackburn, CFA |
Portfolio
Manager |
2007
|
|
| ||
|
James
Cowen |
Portfolio
Manager |
2012
|
|
| ||
|
Grant
Jackson, CFA |
Portfolio
Manager |
2018
|
|
| ||
|
Chip
McKinley |
Portfolio
Manager |
2022
|
|
| ||
|
Darin
Turner |
Portfolio
Manager |
2009
|
|
| ||
|
Ping-Ying
Wang, CFA |
Portfolio
Manager |
2012
|
|
| ||
Effective
on or about December 31, 2022, Mr. Blackburn will no longer serve
as a Portfolio Manager of the Fund.
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 and Y shares for fund accounts
are as follows:
|
Type
of Account |
Initial
Investment
Per
Fund |
Additional
Investments
Per
Fund |
|
Asset
or fee-based accounts managed by your financial adviser |
None
|
None
|
|
| ||
|
Employer
Sponsored Retirement and Benefit Plans and
Employer
Sponsored IRAs |
None
|
None
|
|
| ||
|
IRAs
and Coverdell ESAs if the new investor is purchasing
shares
through a systematic purchase plan |
$25
|
$25
|
|
| ||
|
All
other types of accounts if the investor is purchasing shares
through
a systematic purchase plan |
50
|
50
|
|
| ||
|
IRAs
and Coverdell ESAs |
250
|
25
|
|
| ||
|
All
other accounts |
1,000
|
50
|
|
| ||
With
respect to Class R5 and Class R6 shares, there is no minimum initial
investment for Employer Sponsored Retirement and Benefit Plans investing through a retirement platform that administers at least $2.5
billion in retirement plan assets. All other Employer Sponsored Retirement and Benefit Plans must meet a minimum initial investment of
at least $1 million in each Fund in which it invests.
For
all other institutional investors purchasing Class R5 or Class R6 shares,
the minimum initial investment in each share class is $1 million, unless such investment is made by (i) an investment company, as defined
under the Investment Company Act of 1940, as amended (1940 Act), that is part of a family of investment companies which own in the aggregate
at least $100 million in securities, or (ii) an account established with a 529 college savings plan managed by Invesco, in which case
there is no minimum initial investment.
There
are no minimum investment amounts for Class R6 shares held through
retail omnibus accounts maintained by an intermediary, such as a broker, that (i) generally charges an asset-based fee or commission in
addition to those described in this prospectus, and (ii) maintains Class R6 shares and makes them available to retail investors.
Tax
Information
The
Fund’s distributions generally are taxable to you as ordinary income, capital gains, or some combination of both, unless you are
investing through a tax-advantaged arrangement, such as a 401(k) plan, 529 college savings plan or individual retirement account. Any
distributions from a 401(k) plan or individual retirement account may be taxed as ordinary income when withdrawn from such plan or account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund, the Fund’s distributor
or its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict
of interest by influencing the broker-dealer or other intermediary and your salesperson or financial adviser to recommend the Fund over
another investment. Ask your salesperson or financial adviser or visit your financial intermediary’s website for more information.
Investment Objective(s), Strategies, Risks and Portfolio Holdings
Objective(s)
and Strategies
The
Fund’s investment objective is current income and, secondarily, 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 the securities of real estate and real estate related issuers, and in derivatives and
other instruments that have economic characteristics similar to such securities. The Fund invests primarily in REITs, depositary receipts,
equity securities (including common and preferred stock and convertible securities) of domestic and foreign issuers, and debt securities
of domestic and foreign issuers (including corporate debt obligations and commercial mortgage-backed securities).
A
depositary receipt is generally issued by a bank or financial institution and
represents an ownership interest in the common stock or other equity securities of a foreign company.
REITs
are trusts that sell equity or debt securities to investors and use the
proceeds to invest in real estate or interests therein.
The
Fund will concentrate its investments in the securities of domestic
and foreign companies principally engaged in the real estate industry and other real estate related investments. For purposes of the Fund’s
80% policy, the Fund considers an issuer to be a real estate or real estate related issuer if at least 50% of its assets, gross income
or net profits are attributable to ownership, financing, construction, management, or sale of residential, commercial or industrial real
estate. These issuers include: (i) listed equity REITs and other real estate operating issuers that either (a) own property or make construction
or mortgage loans, (b) are real estate developers, or (c) are companies with substantial real estate holdings; and (ii) other issuers
whose products and services are related to the real estate industry. Other real estate related investments may include but are not limited
to commercial or residential mortgage backed securities, commercial property whole loans, and other types of equity and debt securities
related to the real estate industry.
The
Fund may invest up to 30% of its net assets in below-investment grade
securities (commonly known as “junk bonds”) of real estate and real estate related issuers. Investment grade securities are:
(i) securities rated BBB- or higher by S&P Global Ratings (S&P) or Baa3 or higher by Moody’s Investors Service, Inc. (Moody’s)
or an equivalent rating by another nationally recognized statistical rating organization (NRSRO), (ii) securities with comparable short-term
NRSRO ratings, or (iii) unrated securities determined by the Adviser to be of comparable quality, each at the time of purchase.
Under
normal circumstances, the Fund will provide exposure to investments
that are economically tied to at least three different countries, including the U.S. The Fund may invest up to 20% of its net assets in
securities of issuers located in emerging markets countries, i.e., those that are generally in the early stages of their industrial cycles.
The Schedule of
5 Invesco
Global Real Estate Income Fund
Investments
included in the Fund’s annual and semi-annual reports identifies the countries in which the Fund had invested, as of the date of
the reports.
The
Fund may invest in securities of issuers of all capitalization sizes. Real
estate companies tend to have smaller asset bases compared with other market sectors, therefore, the Fund may hold a significant amount
of securities of small- and mid-capitalization issuers.
The
Fund considers an issuer to be a small-capitalization issuer if it has a
market capitalization, at the time of purchase, no larger than the largest capitalized issuer included in the Russell 2000®
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 largest and smallest capitalized companies included in the Russell Midcap®
Index during the most recent 11-month period (based on month-end data) plus the most recent data during the current month.
The
Fund may also invest in securities that are subject to resale restrictions
such as those contained in Rule 144A promulgated under the Securities Act.
The
Fund can invest in derivative instruments including forward foreign currency
contracts.
A
forward foreign currency contract is an agreement between parties to exchange
a specified amount of currency at a specified future time at a specified rate. The Fund can use forward foreign currency contracts to
hedge against adverse movements in the foreign currencies in which portfolio securities are denominated; though the Fund has not historically
used these instruments.
The
portfolio managers evaluate securities based primarily on the relative
attractiveness of income with a secondary consideration for the potential for capital appreciation. The qualified investment universe
includes global public real estate equity and debt securities. When constructing the portfolio, the portfolio managers first set a strategic
equity versus debt asset allocation and then apply a fundamentals-driven investment process. The equity versus debt allocation is determined
by assessing the implied market pricing and projected risk adjusted returns of equity and debt investment alternatives. This assessment
is conducted while seeking to achieve a level of diversification within asset categories and is influenced by a variety of factors including
the macroeconomic environment, capital market sentiment, absolute return expectations, liquidity and distribution of return outcomes.
Following the strategic asset allocation decision, the fundamental real estate and securities analysis includes an evaluation of factors
such as property market cycle analysis, property evaluation, management and structure review, as well as relative value analysis using
earnings data and other fundamental variables to identify securities with characteristics including (i) attractive relative yields; (ii)
favorable property market outlook; and (iii) attractive valuations relative to peer investment alternatives.
As
part of the Fund’s investment process to implement its investment strategy
in pursuit of its investment objective, the Fund’s portfolio managers may also consider both qualitative and quantitative environmental,
social and governance (“ESG”) factors they believe to be material to understanding an issuer’s fundamentals, assess
whether any ESG factors pose a material financial risk or opportunity to the issuer and determine whether such risks are appropriately
reflected in the issuer’s valuation. This analysis may involve the use of third-party research as well as proprietary research.
Consideration of ESG factors is just one component of the portfolio managers’ assessment of issuers eligible for investment and
not necessarily determinative to an investment decision. Therefore, the Fund’s portfolio managers may still invest in securities
of issuers that may be viewed as having a high ESG risk profile. The ESG factors considered by the Fund’s portfolio managers may
change over time, one
or more factors may not be relevant with respect to all issuers eligible for investment and ESG considerations may not be applied to each
issuer or Fund investment.
The
portfolio managers seek to limit risk through various controls, such as
diversifying the portfolio asset categories, property types and geographic areas, as well as by considering the relative liquidity of
each security and limiting the size of any one holding.
The
portfolio managers will consider selling a security if they conclude: (1)
its relative yield and/or valuation have fallen below desired levels, (2) its risk/return profile has changed significantly, (3) its fundamentals
have changed significantly, or (4) a more attractive investment opportunity is identified.
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 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
6 Invesco
Global Real Estate Income Fund
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.
◾
COVID-19.
The “COVID-19” strain of coronavirus has resulted in instances of market closures and dislocations, extreme volatility, liquidity
constraints and increased trading costs. Efforts to contain its spread have resulted in travel restrictions, disruptions of healthcare
systems, business operations (including business closures) and supply chains, layoffs, lower consumer demand and employee availability,
and defaults and credit downgrades, among other significant economic impacts that have disrupted global economic activity across many
industries. Such economic impacts may exacerbate other pre-existing political, social and economic risks locally or globally and cause
general concern and uncertainty. The full economic impact and ongoing effects of COVID-19 (or other future epidemics or pandemics) at
the macro-level and on individual businesses are unpredictable and may result in significant and prolonged effects on the Fund’s
performance.
Investing
in Stocks Risk.
Common stock represents an ownership interest in a company. It ranks below preferred stock and debt securities in claims for dividends
and in claims for assets of the issuer in a liquidation or bankruptcy. Common stocks may be exchange-traded or over-the-counter securities.
Over-the-counter securities may be less liquid than exchange-traded securities.
The
value of the Fund’s portfolio may be affected by changes in the stock
markets. Stocks and other equity securities fluctuate in price in response to changes to equity markets in general. Stock markets may
experience significant short-term volatility and may fall or rise sharply at times. Adverse events in any part of the equity or fixed-income
markets may have unexpected negative effects on other market segments. Different stock markets may behave differently from each other
and U.S. stock markets may move in the opposite direction from one or more foreign stock markets.
The
prices of individual stocks generally do not all move in the same direction
at the same time. However, individual stock prices tend to go up and down more dramatically than those of certain other types of investments,
such as bonds. A variety of factors can negatively affect the price of a particular company’s stock. These factors may include,
but are not limited to: poor earnings reports, a loss of customers, litigation against the company, general unfavorable performance of
the company’s sector or industry, or changes in government regulations affecting the company or its industry. To the extent that
securities of a particular type are emphasized (for example foreign stocks, stocks of small- or mid-cap companies, growth or value stocks,
or stocks of companies in a particular industry), their share values may fluctuate more in response to events affecting the market for
those types of securities.
REIT
Risk/Real Estate Risk. Investments in real estate related instruments
may be adversely affected by economic, legal, cultural, environmental or technological factors that affect property values, rents or occupancies.
Real estate companies, including REITs or similar structures, tend to be small- and mid-cap companies and their shares may be more volatile
and less liquid than larger companies. The value of investments in real estate related companies may be affected by the quality of management,
the ability to repay loans, the utilization of leverage and financial covenants related thereto, whether the company carries adequate
insurance and environmental factors. If a real estate related company defaults on certain types of debt obligations held by the Fund,
the Fund may acquire real estate directly, which involves additional risks such as environmental liabilities; difficulty in valuing and
selling the real estate; and economic or regulatory changes.
Foreign
Securities Risk. The value of the Fund's foreign investments may
be adversely affected by political and social instability in the home countries of the issuers of the investments, by changes in economic
or taxation policies in those countries, or by the difficulty in enforcing obligations in those countries. Foreign investments also involve
the risk of
the possible
seizure, nationalization or expropriation of the issuer or foreign deposits (in which the Fund could lose its entire investments in a
certain market) and the possible adoption of foreign governmental restrictions such as exchange controls. Foreign companies generally
may be subject to less stringent regulations than U.S. companies, including financial reporting requirements and auditing and accounting
controls, and may therefore be more susceptible to fraud or corruption. Also, there may be less publicly available information about companies
in certain foreign countries than about U.S. companies making it more difficult for the Adviser to evaluate those companies. The laws
of certain countries may put limits on the Fund’s ability to recover its assets held at a foreign bank if the foreign bank, depository
or issuer of a security, or any of their agents, goes bankrupt. Trading in many foreign securities may be less liquid and more volatile
than U.S. securities due to the size of the market or other factors. Changes in political and economic factors in one country or region
could adversely affect conditions in another country or region. Investments in foreign securities may also expose the Fund to time-zone
arbitrage risk. At times, the Fund may emphasize investments in a particular country or region and may be subject to greater risks from
adverse events that occur in that country or region. Unless the Fund has hedged its foreign currency exposure, foreign securities risk
also involves the risk of negative foreign currency rate fluctuations, which may cause the value of securities denominated in such foreign
currency (or other instruments through which the Fund has exposure to foreign currencies) to decline in value. Currency exchange rates
may fluctuate significantly over short periods of time. Currency hedging strategies, if used, are not always successful. For instance,
currency forward contracts, if used by the Fund, could reduce performance if there are unanticipated changes in currency exchange rates.
Geographic
Focus Risk. The Fund may from time to time have a substantial amount
of its assets invested in securities of issuers located in a single country or a limited number of countries. If the Fund focuses its
investments in this manner, adverse economic, political or social conditions in those countries may have a significant negative impact
on the Fund’s investment performance. This risk is heightened if the Fund focuses its investments in emerging market countries or
developed countries prone to periods of instability.
Depositary
Receipts Risk. Depositary receipts involve many of the same risks
as those associated with direct investment in foreign securities. In addition, the underlying issuers of certain depositary receipts,
particularly unsponsored or unregistered depositary receipts, are under no obligation to distribute shareholder communications to the
holders of such receipts or to pass through to them any voting rights with respect to the deposited securities. The Fund may therefore
receive less timely information or have less control than if it invested directly in the foreign issuer.
Small-
and Mid-Capitalization Companies Risk. Investing in securities
of small- and mid-capitalization companies involves greater risk than customarily is associated with investing in larger, more established
companies. Stocks of small- and mid-capitalization companies tend to be more vulnerable to changing market conditions, may have little
or no operating history or track record of success, and may have more limited product lines and markets, less experienced management and
fewer financial resources than larger companies. These companies’ securities may be more volatile and less liquid than those of
more established companies. They may be more sensitive to changes in a company’s earnings expectations and may experience more abrupt
and erratic price movements. Smaller companies’ securities often trade in lower volumes and in many instances, are traded over-the-counter
or on a regional securities exchange, where the frequency and volume of trading is substantially less than is typical for securities of
larger companies traded on national securities exchanges. Therefore, the securities of smaller companies may be subject to wider price
fluctuations and it might be harder for the Fund to dispose of its holdings at an acceptable price when it wants to sell them. In addition,
investors might seek to trade Fund shares based on their knowledge or understanding of the value of smaller company securities (this is
sometimes
7 Invesco
Global Real Estate Income Fund
referred
to as “price arbitrage”), which could interfere with the efficient management of the Fund. Since small and mid-cap companies
typically reinvest a high proportion of their earnings in their business, they may not pay dividends for some time, particularly if they
are newer companies. It may take a substantial period of time to realize a gain on an investment in a small- or mid-cap company, if any
gain is realized at all. The relative sizes of companies may change over time as the securities market changes, and the Fund is not required
to sell the securities of companies whose market capitalizations have grown or decreased due to market fluctuations.
Preferred
Securities Risk. Preferred securities are subject to issuer-specific
and market risks applicable generally to equity securities. Preferred stock has a set dividend rate and ranks ahead of common stocks and
behind debt securities in claims for dividends and for assets of the issuer in a liquidation or bankruptcy. Preferred securities also
may be subordinated to bonds or other debt instruments in an issuer’s capital structure, subjecting them to a greater risk of non-payment
than these more senior securities. For this reason, the value of preferred securities will usually react more strongly than bonds and
other debt securities to actual or perceived changes in the company’s financial condition or prospects. Preferred securities may
be less liquid than many other securities, such as common stocks, and generally offer no voting rights with respect to the issuer.
Convertible
Securities Risk. The market value of a convertible security performs
like that of a regular debt security; that is, if market interest rates rise, the value of a convertible security usually falls. In addition,
convertible securities are subject to the risk that the issuer will not be able to pay interest or dividends when due, and their market
value may change based on changes in the issuer’s credit rating or the market’s perception of the issuer’s creditworthiness.
Convertible securities can be converted into or exchanged for a set amount of common stock of an issuer within a particular period of
time at a specified price or according to a price formula. Convertible debt securities pay interest and convertible preferred stocks pay
dividends until they mature or are converted, exchanged or redeemed. Some convertible debt securities may be considered “equity
equivalents” because of the feature that makes them convertible into common stock. Since a convertible security derives a portion
of its value from the common stock into which it may be converted, a convertible security is also subject to the same types of market
and issuer risks that apply to the underlying common stock. In addition, certain convertible securities are subject to involuntary conversions
and may undergo principal write-downs upon the occurrence of certain triggering events. These convertible securities are subject to an
increased risk of loss and are generally subordinate in rank to other debt obligations of the issuer. Convertible securities may be rated
below investment grade, which are considered to have more speculative characteristics and greater susceptibility to default or decline
in market value than investment grade securities.
Emerging
Market Securities Risk. Emerging markets (also referred to as developing
markets) are generally subject to greater market volatility, political, social and economic instability, uncertainty regarding the existence
of trading markets and more governmental limitations on foreign investment than more developed markets. In addition, companies operating
in emerging markets may have greater concentration in a few industries resulting in greater vulnerability to regional and global trade
conditions and also may be subject to lower trading volume and greater price fluctuations than companies in more developed markets. Unexpected
market closures may also affect investments in emerging markets. Settlement procedures may differ from those of more established securities
markets, and settlement delays may result in the inability to invest assets or dispose of portfolio securities in a timely manner. As
a result there could be subsequent declines in value of the portfolio security, a decrease in the level of liquidity of the portfolio,
or, if there is a contract to sell the security, a possible liability to the purchaser.
Such
countries’ economies may be more dependent on relatively few industries
or investors that may be highly vulnerable to local and global
changes.
Emerging market countries may also have higher rates of inflation and more rapid and extreme fluctuations in inflation rates and greater
sensitivity to interest rate changes. Further, companies in emerging market countries generally may be subject to less stringent regulatory,
disclosure, financial reporting, accounting, auditing and recordkeeping standards than companies in more developed countries and, as a
result, the nature and quality of such information may vary. Information about such companies may be less available and reliable and,
therefore, the ability to conduct adequate due diligence in emerging markets may be limited which can impede the Fund’s ability
to evaluate such companies. In addition, certain emerging market countries have material limitations on Public Company Accounting Oversight
Board (“PCAOB”) inspection, investigation and enforcement capabilities, which hinder the ability to engage in independent
oversight or inspection of accounting firms located in or operating in certain emerging markets; therefore, 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.
Debt
Securities Risk. The prices of debt securities held by the Fund
will be affected by changes in interest rates, the creditworthiness of the issuer and other factors. An increase in prevailing interest
rates typically causes the value of existing debt securities to fall and often has a greater impact on longer-duration debt securities
and higher quality debt securities. Falling interest rates will cause the Fund to reinvest the proceeds of debt securities that have been
repaid by the issuer at lower interest rates. Falling interest rates may also reduce the Fund’s distributable income because interest
payments on floating rate debt instruments held by the Fund will decline. The Fund could lose money on investments in debt securities
if the issuer or borrower fails to meet its obligations to make interest payments and/or to repay principal in a timely manner. If an
issuer seeks to restructure the terms of its borrowings or the Fund is required to seek recovery upon a default in the payment of interest
or the repayment of principal, the Fund may incur additional expenses. Changes in an issuer’s financial strength, the market’s
perception of such strength or in the credit rating of the issuer or the security may affect the value of debt securities. The Adviser’s
credit analysis may fail to anticipate such changes, which could result in buying a
8 Invesco
Global Real Estate Income Fund
debt
security at an inopportune time or failing to sell a debt security in advance of a price decline or other credit event.
High
Yield Debt Securities (Junk Bond) Risk. The Fund’s investments
in high yield debt securities (commonly referred to as “junk bonds”) and other lower-rated securities will subject the Fund
to substantial risk of loss. These securities are considered to be speculative with respect to the issuer’s ability to pay interest
and principal when due and are more susceptible to default or decline in market value due to adverse economic, regulatory, political or
company developments than higher rated or investment grade securities. Prices of high yield debt securities tend to be very volatile.
These securities are less liquid than investment grade debt securities and may be difficult to sell at a desirable time or price, particularly
in times of negative sentiment toward high yield securities.
Mortgage-
and Asset-Backed Securities Risk. Mortgage- and asset-backed securities,
including collateralized debt obligations and collateralized mortgage obligations, differ from conventional debt securities because principal
is paid back over the life of the security rather than at maturity. Mortgage- and asset-backed securities are subject to prepayment or
call risk, which is the risk that a borrower's payments may be received earlier or later than expected due to changes in prepayment rates
on underlying loans. Faster prepayments often happen when interest rates are falling. As a result, the Fund may reinvest these early payments
at lower interest rates, thereby reducing the Fund's income. Mortgage- and asset-backed securities also are subject to extension risk.
An unexpected rise in interest rates could reduce the rate of prepayments and extend the life of the mortgage- and asset-backed securities,
causing the price of the mortgage- and asset-backed securities and the Fund’s share price to fall and would make the mortgage- and
asset-backed securities more sensitive to interest rate changes. An unexpectedly high rate of defaults on the mortgages held by a mortgage
pool will adversely affect the value of mortgage-backed securities and will result in losses to the Fund. Privately-issued mortgage-backed
securities and asset-backed securities may be less liquid than other types of securities and the Fund may be unable to sell these securities
at the time or price it desires. During periods of market stress or high redemptions, the Fund may be forced to sell these securities
at significantly reduced prices, resulting in losses. Liquid privately-issued mortgage-backed securities and asset-backed securities can
become illiquid during periods of market stress. Privately-issued mortgage-related securities are not subject to the same underwriting
requirements for the underlying mortgages that are applicable to those mortgage-related securities that have government or government-sponsored
entity guarantees. As a result, the mortgage loans underlying privately-issued mortgage-related securities may, and frequently do, have
less favorable collateral, credit risk, liquidity risk or other underwriting characteristics than government or government-sponsored mortgage-related
securities and have wider variances in a number of terms including interest rate, term, size, purpose and borrower characteristics.
Rule
144A Securities and Other Exempt Securities Risk.
The Fund may invest in Rule 144A securities and other types of exempt securities,
which are not registered for sale pursuant to an exemption from
registration under the Securities Act of 1933, as amended. These securities are also known as privately issued securities,
and typically may be resold only to qualified institutional buyers,
or in a privately negotiated transaction, or to a limited number of purchasers,
or in limited quantities after they have been held for a specified
period of time and other conditions are met for an exemption from registration. Although such securities may be determined to be liquid
in accordance with the requirements of Rule 22e-4 under the Investment Company Act of 1940,
as amended,
if there are an insufficient number of qualified institutional
buyers interested in purchasing such securities at a particular time, the Fund may have difficulty selling such securities at a desirable
time or price. As a result, the
Fund’s investment in such securities may be subject to increased liquidity risk. In addition, the issuers of Rule 144A securities
may require their qualified institutional buyers (such as the
Fund)
to keep certain offering information confidential, which could
adversely affect the ability of the Fund to sell such securities.
Changing
Fixed Income Market Conditions Risk. Increases
in the federal funds and equivalent foreign rates or other changes to monetary policy or regulatory actions may expose fixed income markets
to heightened volatility and reduced liquidity for certain fixed income investments, particularly those with longer maturities. It is
difficult to predict the impact of interest rate changes on various markets. In addition, decreases in fixed income dealer market-making
capacity may also potentially lead to heightened volatility and reduced liquidity in the fixed income markets. As a result, the value
of the Fund’s investments and share price may decline. Changes in
central bank policies
could also result in higher than normal redemptions by shareholders,
which could potentially increase the Fund’s portfolio turnover rate and transaction costs and potentially lower the Fund’s
performance returns.
Derivatives
Risk. A derivative is an instrument whose value depends largely
on (and is derived from) the value of an underlying security, currency, commodity, interest rate, index or other asset (each referred
to as an underlying asset). In addition to risks relating to the underlying assets, the use of derivatives may include other, possibly
greater, risks, which are described below.
◾
Counterparty
Risk. Certain derivatives do not trade on an established exchange
(referred to as over-the-counter (OTC) derivatives) and are simply financial contracts between the Fund and a counterparty. When the Fund
is owed money on an OTC derivative, the Fund is dependent on the counterparty to pay or, in some cases, deliver the underlying asset,
unless the Fund can otherwise sell its derivative contract to a third party prior to its expiration. Many counterparties are financial
institutions such as banks and broker-dealers and their creditworthiness (and ability to pay or perform) may be negatively impacted by
factors affecting financial institutions generally. In addition, in the event that a counterparty becomes bankrupt or insolvent, the Fund’s
ability to recover the collateral that the Fund has on deposit with the counterparty could be delayed or impaired. For derivatives traded
on a centralized exchange, the Fund generally is dependent upon the solvency of the relevant exchange clearing house (which acts as a
guarantor for each contractual obligation under such derivatives) for payment on derivative instruments for which the Fund is owed money.
◾
Leverage
Risk. Many derivatives do not require a payment up front equal
to the economic exposure created by holding a position in the derivative, which creates a form of leverage. As a result, an adverse change
in the value of the underlying asset could result in the Fund sustaining a loss that is substantially greater than the amount invested
in the derivative or the anticipated value of the underlying asset. In addition,
some derivatives have the potential for unlimited loss, regardless
of the size of the Fund’s initial investment. Leverage may therefore make the Fund’s returns more volatile and increase
the risk of loss. In certain market conditions, losses on derivative
instruments can grow larger while the value of the Fund’s other assets fall, resulting in the Fund’s derivative positions
becoming a larger percentage of the Fund’s investments.
◾
Liquidity
Risk. There is a smaller pool of buyers and sellers for certain
derivatives, particularly OTC derivatives, than more traditional investments such as stocks. These buyers and sellers are often financial
institutions that may be unable or unwilling to buy or sell derivatives during times of financial or market stress. Derivative instruments
may therefore be less liquid than more traditional investments and the Fund may be unable to sell or exit its derivative positions at
a desirable time or price. This risk may be more acute under adverse market conditions, during which the Fund may be most in need of liquidating
its derivative positions. To the extent that the Fund is unable to exit a derivative position because of market illiquidity, the Fund
may not be able to prevent further losses of value
9 Invesco
Global Real Estate Income Fund
in
its derivatives holdings and the liquidity of the Fund and its ability to meet redemption requests may be impaired to the extent that
a substantial portion of the Fund’s otherwise liquid assets must be used as margin. Another consequence of illiquidity is that the
Fund may be required to hold a derivative instrument to maturity and take or make delivery of the underlying asset that the Adviser would
otherwise avoid.
◾
Forward
Foreign Currency Contracts Risk. Forward foreign currency
contracts are used to lock in the U.S. dollar price of a security denominated in a foreign currency or protect against possible losses
from changes in the relative value of the U.S. dollar against a foreign currency. They are subject to the risk that anticipated
currency movements will not be accurately predicted or do not correspond accurately to changes in the value of the fund's holdings, which
could result in losses and additional transaction costs. The use of forward contracts could reduce performance if there are unanticipated
changes in currency prices. A contract to sell a foreign currency would limit any potential gain that might be realized if the value of
the currency increases. A forward foreign currency contract may also result in losses in the event of a default or bankruptcy of the counterparty.
◾
Other
Risks. Compared to other types of investments, derivatives may
be harder to value and may also be less tax efficient, as described under the “Taxes” section of the prospectus. In addition,
changes in government regulation of derivative instruments could affect the character, timing and amount of the Fund’s taxable income
or gains, and may limit or prevent the Fund from using certain types of derivative instruments as a part of its investment strategy, which
could make the investment strategy more costly to implement or require the Fund to change its investment strategy. Derivatives strategies
may not always be successful. For example, to the extent that the Fund uses derivatives for hedging or to gain or limit exposure to a
particular market or market segment, there may be imperfect correlation between the value of the derivative instrument and the value of
the instrument being hedged or the relevant market or market segment, in which case the Fund may not realize the intended benefits. There
is also the risk that during adverse market conditions, an instrument which would usually operate as a hedge provides no hedging benefits
at all. The Fund’s use of derivatives may be limited by the requirements for taxation of the Fund as a regulated investment company.
Environmental,
Social and Governance (ESG) Considerations Risk. The ESG considerations
that may be assessed as part of the investment process to implement the Fund’s investment strategy in pursuit of its investment
objective may vary across types of investments and issuers eligible for investment, and not every ESG factor may be identified or evaluated
for every investment, and not every investment or issuer may be evaluated for ESG considerations. The Fund’s portfolio will not
be solely based on ESG considerations, and therefore the issuers in which the Fund invests may not be considered ESG-focused issuers.
The incorporation of ESG factors may affect the Fund’s exposure to certain issuers or industries and may not work as intended. The
Fund may underperform other funds that do not assess an issuer’s ESG factors as part of the investment process or that use a different
methodology to identify and/or incorporate ESG factors. As investors can differ in their views regarding ESG factors, the Fund may invest
in issuers that do not reflect the views with respect to ESG of any particular investor. Information used by the Fund to evaluate such
factors may not be readily available, complete or accurate, and may vary across providers and issuers as ESG is not a uniformly defined
characteristic, which could negatively impact the Fund’s ability to accurately assess a company, which could negatively impact the
Fund’s performance. There is no guarantee that the evaluation of ESG considerations will be additive to the Fund’s performance.
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 1555 Peachtree Street, N.E., Atlanta, Georgia 30309. The Adviser, as successor in interest to multiple
investment advisers, has been an investment adviser since 1976.
Sub-Advisers.
Invesco Asset Management Limited (Invesco Asset Management) serves
as the Fund’s investment sub-adviser. Invesco Asset Management, an affiliate of the Adviser, is located at 30 Finsbury Square, London
EC2A 1AG, United Kingdom. Invesco Asset Management has been managing assets on behalf of consumers, institutional clients and institutional
professionals through a broad product range, including investment companies with variable capital, investment trusts, individual savings
accounts, pension funds, offshore funds and other specialist mandates since 1969, the year Invesco Asset Management was incorporated.
Invesco Asset Management provides portfolio management services to the Fund.
In
addition, Invesco has entered into one or more Sub-Advisory Agreements
with certain affiliates to serve as sub-advisers to the Fund (the Sub-Advisers). Invesco may appoint the Sub-Advisers from time to time
to provide discretionary investment management services, investment advice, and/or order execution services to the Fund. The Sub-Advisers
and the Sub-Advisory Agreements are described in the SAI.
Exclusion
of Adviser from Commodity Pool Operator Definition
With
respect to the Fund, the Adviser has claimed an exclusion from the definition of “commodity pool operator” (CPO) under the
Commodity Exchange Act (CEA) and the rules of the Commodity Futures Trading Commission (CFTC) and, therefore, is not subject to CFTC registration
or regulation as a CPO. In addition, the Adviser is relying upon a related exclusion from the definition of “commodity trading advisor”
(CTA) under the CEA and the rules of the CFTC with respect to the Fund.
The
terms of the CPO exclusion require the Fund, among other things, to
adhere to certain limits on its investments in “commodity interests.” Commodity interests include commodity futures, commodity
options and swaps, which in turn include non-deliverable forwards. The Fund is permitted to invest in these instruments as further described
in the Fund's SAI. However, the Fund is not intended as a vehicle for trading in the commodity futures, commodity options or swaps markets.
The CFTC has neither reviewed nor approved the Adviser’s reliance on these exclusions, or the Fund, its investment strategies or
this prospectus.
Adviser
Compensation
During
the fiscal year ended August 31, 2022, the Adviser received compensation of 0.74% of the Fund’s average daily net assets, after
fee waiver and/or expense reimbursement, if any.
10 Invesco
Global Real Estate Income Fund
Invesco,
not the Fund, pays sub-advisory fees, 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
Investment
management decisions for the Fund are made by the investment management teams at Invesco and Invesco Asset Management.
The
following individuals are jointly and primarily responsible for the day-to-day
management of the Fund’s portfolio:
◾
Mark
Blackburn, CFA, Portfolio Manager, who has been responsible for the Fund since 2007. He has been responsible for the Fund’s predecessor
closed-end fund, since inception and has been associated with Invesco and/or its affiliates since 1998.
◾
James
Cowen, Portfolio Manager, who has been responsible for the Fund since 2012. He has been a member of Invesco's Real Estate Team since 2001
and has been associated with Invesco Asset Management and/or its affiliates since 2001.
◾
Grant
Jackson, CFA, Portfolio Manager, who has been responsible for the Fund since 2018 and has been associated with Invesco and/or its affiliates
since 2005.
◾
Chip
McKinley, Portfolio Manager, who has been
responsible for the Fund since 2022 and has been associated with Invesco and/or its affiliates since 2022. From 2019 to 2022,
he was associated with Saepio Capital Management
where he was the Founder and served as Portfolio Manager.
From 2007 to 2019, he was associated with Cohen and Steers Capital
Management where he served as Senior Vice President and Portfolio Manager.
◾
Darin
Turner, Portfolio Manager, who has been responsible for the Fund since 2009 and has been associated with Invesco and/or its affiliates
since 2005.
◾
Ping-Ying
Wang, CFA, Portfolio Manager, who has been responsible for the Fund since 2012 and has been associated with Invesco and/or its affiliates
since 1998.
Effective
on or about December 31,
2022, Mr. Blackburn will no longer serve as a Portfolio Manager of the Fund.
More
information on the portfolio managers may be found at www.invesco.com/us.
The website is not part of this prospectus.
The
Fund’s SAI provides additional information about the portfolio managers’
investments in the Fund, a description of the compensation structure and information regarding other accounts managed.
Other Information
Sales
Charges
Purchases
of Class A shares of the Fund are subject to the maximum 5.50% initial sales charge as listed under the heading “Category I Initial
Sales Charges” in the “Shareholder Account Information—Initial Sales Charges (Class A Shares Only)” section of
the prospectus. Purchases of Class C shares are subject to a contingent deferred sales charge (CDSC) if you sell Class C shares within
one year of purchase; however, the CDSC shall not apply to the purchases of Class C shares where the selling broker-dealer was not paid
a commission at the time of purchase. For more information on CDSCs, see the “Shareholder Account Information—Contingent Deferred
Sales Charges (CDSCs)” section of this prospectus.
Dividends
and Distributions
The
Fund expects, based on its investment objective and strategies, that its distributions, if any, will consist of ordinary income, capital
gains, or some combination of both.
Dividends
The
Fund generally declares and pays dividends from net investment income, if any, quarterly.
Capital
Gains Distributions
The
Fund generally distributes long-term and short-term capital gains (net of any available capital loss carryovers), if any, at least annually.
Capital gains distributions may vary considerably from year to year as a result of the Fund's normal investment activities and cash flows.
During a time of economic volatility, the Fund may experience capital losses and unrealized depreciation in value of investments, the
effect of which may be to reduce or eliminate capital gains distributions for a period of time. Even though the Fund may experience a
current year loss, it may nonetheless distribute prior year capital gains.
11 Invesco
Global Real Estate Income Fund
Financial Highlights
The financial
highlights show the Fund’s financial history for the past five fiscal years or, if shorter, the period of operations of the Fund
or any of its share classes. The financial highlights table is intended to help you understand the Fund’s financial performance.
Certain information reflects financial results for a single Fund share.
The
total returns in the table represent the rate that an investor would have
earned (or lost) on an investment in the Fund (assuming reinvestment of all dividends and distributions).
This
information has been audited by PricewaterhouseCoopers LLP, an independent
registered public accounting firm, whose report, along with the Fund’s financial statements, is included in the Fund’s annual
report, which is available upon request.
|
|
Net
asset
value,
beginning
of
period |
Net
investment
income(a)
|
Net
gains
(losses)
on
securities
(both
realized
and
unrealized)
|
Total
from
investment
operations
|
Dividends
from
net
investment
income
|
Distributions
from
net
realized
gains
|
Return
of
capital
|
Total
distributions
|
Net
asset
value,
end
of
period |
Total
return
(b)
|
Net
assets,
end
of period
(000's
omitted) |
Ratio
of
expenses
to
average
net
assets
with
fee waivers
and/or
expenses
absorbed
|
Ratio
of
expenses
to
average net
assets
without
fee
waivers
and/or
expenses
absorbed
|
Ratio
of net
investment
income
to
average
net
assets |
Portfolio
turnover
(c)
|
|
Class
A | |||||||||||||||
|
Year
ended 08/31/22 |
$9.88
|
$0.16
|
$(1.48)
|
$(1.32)
|
$(0.12)
|
$—
|
$(0.09)
|
$(0.21)
|
$8.35
|
(13.56)%
|
$116,084
|
1.20%
|
1.20%
|
1.69%
|
39%
|
|
Year
ended 08/31/21 |
8.06
|
0.14
|
1.84
|
1.98
|
(0.16)
|
—
|
—
|
(0.16)
|
9.88
|
24.81(d)
|
149,008
|
1.19(d)
|
1.19(d)
|
1.63(d)
|
41
|
|
Year
ended 08/31/20 |
9.57
|
0.21
|
(0.99)
|
(0.78)
|
(0.48)
|
(0.25)
|
—
|
(0.73)
|
8.06
|
(8.55)
|
135,022
|
1.22
|
1.22
|
2.48
|
72
|
|
Year
ended 08/31/19 |
9.11
|
0.28
|
0.49
|
0.77
|
(0.31)
|
—
|
—
|
(0.31)
|
9.57
|
8.69
|
175,013
|
1.25
|
1.25
|
3.05
|
41
|
|
Year
ended 08/31/18 |
9.18
|
0.30
|
(0.02)
|
0.28
|
(0.35)
|
—
|
—
|
(0.35)
|
9.11
|
3.11
|
188,658
|
1.24
|
1.24
|
3.33
|
59
|
|
| |||||||||||||||
|
Class
C | |||||||||||||||
|
Year
ended 08/31/22 |
9.86
|
0.09
|
(1.47)
|
(1.38)
|
(0.08)
|
—
|
(0.06)
|
(0.14)
|
8.34
|
(14.15)
|
5,782
|
1.95
|
1.95
|
0.94
|
39
|
|
Year
ended 08/31/21 |
8.05
|
0.08
|
1.82
|
1.90
|
(0.09)
|
—
|
—
|
(0.09)
|
9.86
|
23.79
|
9,722
|
1.95
|
1.95
|
0.87
|
41
|
|
Year
ended 08/31/20 |
9.55
|
0.15
|
(0.99)
|
(0.84)
|
(0.41)
|
(0.25)
|
—
|
(0.66)
|
8.05
|
(9.22)
|
21,394
|
1.97
|
1.97
|
1.73
|
72
|
|
Year
ended 08/31/19 |
9.09
|
0.21
|
0.49
|
0.70
|
(0.24)
|
—
|
—
|
(0.24)
|
9.55
|
7.89
|
39,088
|
2.00
|
2.00
|
2.30
|
41
|
|
Year
ended 08/31/18 |
9.16
|
0.23
|
(0.02)
|
0.21
|
(0.28)
|
—
|
—
|
(0.28)
|
9.09
|
2.34
|
51,925
|
1.99
|
1.99
|
2.58
|
59
|
|
| |||||||||||||||
|
Class
Y | |||||||||||||||
|
Year
ended 08/31/22 |
9.84
|
0.18
|
(1.46)
|
(1.28)
|
(0.13)
|
—
|
(0.10)
|
(0.23)
|
8.33
|
(13.20)
|
305,110
|
0.95
|
0.95
|
1.94
|
39
|
|
Year
ended 08/31/21 |
8.03
|
0.17
|
1.82
|
1.99
|
(0.18)
|
—
|
—
|
(0.18)
|
9.84
|
25.08
|
347,456
|
0.95
|
0.95
|
1.87
|
41
|
|
Year
ended 08/31/20 |
9.54
|
0.23
|
(0.99)
|
(0.76)
|
(0.50)
|
(0.25)
|
—
|
(0.75)
|
8.03
|
(8.34)
|
296,997
|
0.97
|
0.97
|
2.73
|
72
|
|
Year
ended 08/31/19 |
9.08
|
0.30
|
0.49
|
0.79
|
(0.33)
|
—
|
—
|
(0.33)
|
9.54
|
8.98
|
389,619
|
1.00
|
1.00
|
3.30
|
41
|
|
Year
ended 08/31/18 |
9.15
|
0.32
|
(0.02)
|
0.30
|
(0.37)
|
—
|
—
|
(0.37)
|
9.08
|
3.37
|
670,338
|
0.99
|
0.99
|
3.58
|
59
|
|
| |||||||||||||||
|
Class
R5 | |||||||||||||||
|
Year
ended 08/31/22 |
9.87
|
0.19
|
(1.49)
|
(1.30)
|
(0.13)
|
—
|
(0.11)
|
(0.24)
|
8.33
|
(13.41)
|
1,424
|
0.89
|
0.89
|
2.00
|
39
|
|
Year
ended 08/31/21 |
8.05
|
0.17
|
1.83
|
2.00
|
(0.18)
|
—
|
—
|
(0.18)
|
9.87
|
25.21
|
3,504
|
0.89
|
0.89
|
1.93
|
41
|
|
Year
ended 08/31/20 |
9.56
|
0.24
|
(1.00)
|
(0.76)
|
(0.50)
|
(0.25)
|
—
|
(0.75)
|
8.05
|
(8.27)
|
2,940
|
0.91
|
0.91
|
2.79
|
72
|
|
Year
ended 08/31/19 |
9.11
|
0.31
|
0.48
|
0.79
|
(0.34)
|
—
|
—
|
(0.34)
|
9.56
|
8.98
|
4,517
|
0.90
|
0.90
|
3.40
|
41
|
|
Year
ended 08/31/18 |
9.18
|
0.33
|
(0.02)
|
0.31
|
(0.38)
|
—
|
—
|
(0.38)
|
9.11
|
3.46
|
5,745
|
0.92
|
0.92
|
3.65
|
59
|
|
| |||||||||||||||
|
Class
R6 | |||||||||||||||
|
Year
ended 08/31/22 |
9.87
|
0.19
|
(1.47)
|
(1.28)
|
(0.13)
|
—
|
(0.11)
|
(0.24)
|
8.35
|
(13.14)
|
213,197
|
0.82
|
0.82
|
2.07
|
39
|
|
Year
ended 08/31/21 |
8.05
|
0.18
|
1.83
|
2.01
|
(0.19)
|
—
|
—
|
(0.19)
|
9.87
|
25.33
|
243,338
|
0.80
|
0.80
|
2.02
|
41
|
|
Year
ended 08/31/20 |
9.56
|
0.24
|
(0.99)
|
(0.75)
|
(0.51)
|
(0.25)
|
—
|
(0.76)
|
8.05
|
(8.17)
|
205,791
|
0.82
|
0.82
|
2.88
|
72
|
|
Year
ended 08/31/19 |
9.11
|
0.32
|
0.48
|
0.80
|
(0.35)
|
—
|
—
|
(0.35)
|
9.56
|
9.08
|
137,183
|
0.81
|
0.81
|
3.49
|
41
|
|
Year
ended 08/31/18 |
9.17
|
0.34
|
(0.02)
|
0.32
|
(0.38)
|
—
|
—
|
(0.38)
|
9.11
|
3.66
|
135,878
|
0.82
|
0.82
|
3.75
|
59
|
|
| |||||||||||||||
|
(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. Not annualized for periods less
than one year, if applicable. |
|
(c)
|
Portfolio
turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
|
(d)
|
The
total return, ratio of expenses to average net assets and ratio of net investment income to average net assets reflect actual 12b-1 fees
of 0.24% for the year ended August 31, 2021. |
12 Invesco
Global Real Estate Income 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
|
1.21%
|
1.21%
|
1.21%
|
1.21%
|
1.21%
|
1.21%
|
1.21%
|
1.21%
|
1.21%
|
1.21%
|
|
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 |
(1.92%)
|
1.80%
|
5.66%
|
9.66%
|
13.82%
|
18.13%
|
22.61%
|
27.26%
|
32.08%
|
37.08%
|
|
End
of Year Balance |
$9,808.16
|
$10,179.88
|
$10,565.70
|
$10,966.14
|
$11,381.76
|
$11,813.13
|
$12,260.84
|
$12,725.53
|
$13,207.83
|
$13,708.41
|
|
Estimated
Annual Expenses |
$666.51
|
$120.93
|
$125.51
|
$130.27
|
$135.20
|
$140.33
|
$145.65
|
$151.17
|
$156.90
|
$162.84
|
|
| ||||||||||
|
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
|
1.21%
|
1.21%
|
1.21%
|
1.21%
|
1.21%
|
1.21%
|
1.21%
|
1.21%
|
1.21%
|
1.21%
|
|
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 |
3.79%
|
7.72%
|
11.81%
|
16.04%
|
20.44%
|
25.01%
|
29.74%
|
34.66%
|
39.77%
|
45.06%
|
|
End
of Year Balance |
$10,379.00
|
$10,772.36
|
$11,180.64
|
$11,604.38
|
$12,044.19
|
$12,500.66
|
$12,974.44
|
$13,466.17
|
$13,976.54
|
$14,506.25
|
|
Estimated
Annual Expenses |
$123.29
|
$127.97
|
$132.82
|
$137.85
|
$143.07
|
$148.50
|
$154.12
|
$159.97
|
$166.03
|
$172.32
|
|
| ||||||||||
|
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
|
1.96%
|
1.96%
|
1.96%
|
1.96%
|
1.96%
|
1.96%
|
1.96%
|
1.96%
|
1.21%
|
1.21%
|
|
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 |
3.04%
|
6.17%
|
9.40%
|
12.73%
|
16.15%
|
19.68%
|
23.32%
|
27.07%
|
31.89%
|
36.89%
|
|
End
of Year Balance |
$10,304.00
|
$10,617.24
|
$10,940.01
|
$11,272.58
|
$11,615.27
|
$11,968.37
|
$12,332.21
|
$12,707.11
|
$13,188.71
|
$13,688.56
|
|
Estimated
Annual Expenses |
$198.98
|
$205.03
|
$211.26
|
$217.68
|
$224.30
|
$231.12
|
$238.15
|
$245.39
|
$156.67
|
$162.61
|
|
| ||||||||||
|
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
|
0.96%
|
0.96%
|
0.96%
|
0.96%
|
0.96%
|
0.96%
|
0.96%
|
0.96%
|
0.96%
|
0.96%
|
|
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 |
4.04%
|
8.24%
|
12.62%
|
17.17%
|
21.90%
|
26.82%
|
31.95%
|
37.28%
|
42.82%
|
48.59%
|
|
End
of Year Balance |
$10,404.00
|
$10,824.32
|
$11,261.62
|
$11,716.59
|
$12,189.94
|
$12,682.42
|
$13,194.79
|
$13,727.86
|
$14,282.46
|
$14,859.47
|
|
Estimated
Annual Expenses |
$97.94
|
$101.90
|
$106.01
|
$110.30
|
$114.75
|
$119.39
|
$124.21
|
$129.23
|
$134.45
|
$139.88
|
|
| ||||||||||
|
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
|
0.90%
|
0.90%
|
0.90%
|
0.90%
|
0.90%
|
0.90%
|
0.90%
|
0.90%
|
0.90%
|
0.90%
|
|
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 |
4.10%
|
8.37%
|
12.81%
|
17.44%
|
22.25%
|
27.26%
|
32.48%
|
37.91%
|
43.57%
|
49.45%
|
|
End
of Year Balance |
$10,410.00
|
$10,836.81
|
$11,281.12
|
$11,743.65
|
$12,225.13
|
$12,726.37
|
$13,248.15
|
$13,791.32
|
$14,356.76
|
$14,945.39
|
|
Estimated
Annual Expenses |
$91.85
|
$95.61
|
$99.53
|
$103.61
|
$107.86
|
$112.28
|
$116.89
|
$121.68
|
$126.67
|
$131.86
|
|
| ||||||||||
|
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
|
0.83%
|
0.83%
|
0.83%
|
0.83%
|
0.83%
|
0.83%
|
0.83%
|
0.83%
|
0.83%
|
0.83%
|
|
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 |
4.17%
|
8.51%
|
13.04%
|
17.75%
|
22.66%
|
27.78%
|
33.11%
|
38.66%
|
44.44%
|
50.46%
|
|
End
of Year Balance |
$10,417.00
|
$10,851.39
|
$11,303.89
|
$11,775.26
|
$12,266.29
|
$12,777.80
|
$13,310.63
|
$13,865.68
|
$14,443.88
|
$15,046.19
|
|
Estimated
Annual Expenses |
$84.73
|
$88.26
|
$91.94
|
$95.78
|
$99.77
|
$103.93
|
$108.27
|
$112.78
|
$117.48
|
$122.38
|
|
| ||||||||||
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.
13 Invesco
Global Real Estate Income Fund
Shareholder Account Information
In addition
to the Fund(s), the Adviser serves as investment adviser to many other Invesco mutual funds that are offered to investors (Invesco Funds
or Funds). The following information is about all of the Invesco Funds and their share classes that have different fees and expenses.
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 |
|
|
▪ 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) |
A-1 The
Invesco Funds
MCF—12/22
|
Share
Classes |
|
|
|
|
|
Class
A |
Class
C |
Class
R |
Class
Y |
Class
R5 and R6 |
|
|
▪ 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 International Core Equity 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 a specific
Fund may make additional purchases into Class AX and CX, respectively, of such specific Fund. All references in this “Shareholder
Account Information” section of this prospectus to Class A, C or R shares of the Invesco Funds shall include Class AX
(excluding Invesco Government Money Market Fund), or CX shares, respectively, of the Invesco Funds, unless otherwise noted. All references
in this “Shareholder Account Information” section of this prospectus to Invesco Cash Reserve Shares of Invesco Government
Money Market Fund shall include Class AX shares of Invesco Government Money Market Fund, unless otherwise noted.
Class P
Shares
In
addition to the other share classes discussed herein, the Invesco Summit Fund offers Class P shares, which were historically sold
only through the AIM Summit Investors Plans I and II (each a Plan and, collectively, the Summit Plans). Class P shares are sold with
no initial sales charge and have a 12b-1 fee of 0.10%. However, Class P shares are not sold to members of the general public. Only
shareholders who had accounts in the Summit Plans at the close of business on December 8, 2006 may purchase Class P shares and
only until the total of their combined investments in the Summit Plans and in Class P shares directly equals the face amount of their
former Plan under the 30 year extended investment option. The face amount of a Plan is the combined total of all scheduled monthly
investments under the Plan. For a Plan with a scheduled monthly investment of $100.00, the face amount would have been $36,000.00 under
the 30 year extended investment option.
Class R
Shares
Class R
shares are intended for 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 (except for the Invesco Master Loan Fund) are available for use by Employer Sponsored Retirement and Benefit
Plans, held either at the plan level or through omnibus accounts, that generally process no more than one net redemption and one net purchase
transaction each day.
Class
R5 and R6 shares of the Funds are also available to institutional investors.
Institutional investors are: banks, trust companies, collective trust funds, entities acting for the account of a public entity (e.g.,
Taft-Hartley funds, states, cities or government agencies), funds of funds or other pooled investment vehicles, 529 college savings plans,
financial intermediaries and corporations investing for their own accounts, endowments and foundations. For information regarding investment
minimums for Class R5 and R6 shares, please see “Minimum Investments” below.
Class
R6 shares of the Funds are also available through an intermediary that
has agreed with Invesco Distributors, Inc. to make such shares
A-2 The
Invesco Funds
available
for use in retail omnibus accounts that generally process no more than one net redemption and one net purchase transaction each day.
The
Invesco Master Loan Fund is only available for purchase by other Funds
in the Invesco fund family and other Invesco pooled investment vehicles.
Shareholders
eligible to purchase Class R6 Shares must meet the requirements
specified by their intermediary. Not all intermediaries offer Class R6 Shares to their customers.
Class S
Shares
Class S
shares are limited to investors who purchase shares with the proceeds received from a systematic contractual investment plan redemption
within the 12 months prior to purchasing Class S shares, and who purchase through an approved financial intermediary that has
an agreement with the distributor to sell Class S shares. Class S shares are not otherwise sold to members of the general public.
An investor purchasing Class S shares will not pay an initial sales charge. The investor will no longer be eligible to purchase additional
Class S shares at that point where the value of the contributions to the prior systematic contractual investment plan combined with
the subsequent Class S share contributions equals the face amount of what would have been the investor’s systematic contractual
investment plan under the 30-year investment option. The face amount of a systematic contractual investment plan is the combined total
of all scheduled monthly investments under that plan. For a plan with a scheduled monthly investment of $100.00, the face amount would
have been $36,000.00 under the 30-year extended investment option.
Class Y
Shares
Class
Y shares are available to (i) investors who purchase through an account that is charged an asset-based fee or commission by a financial
intermediary, including through brokerage platforms, where a broker is acting as the investor’s agent, that may require the payment
by the investor of a commission and/or other form of compensation to that broker, (ii) endowments, foundations, or Employer Sponsored
Retirement and Benefit Plans (with the exception of “Solo 401(k)” Plans and 403(b) custodial accounts held directly at Invesco),
(iii) banks or bank trust departments acting on their own behalf or as trustee or manager for trust accounts, or (iv) any current, former
or retired trustee, director, officer or employee (or immediate family members of a current, former or retired trustee, director, officer
or employee) of any Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
Subject
to any conditions or limitations imposed on the servicing of Class
Y shares by your financial adviser, if you received Class Y shares as a result of a merger or reorganization of a predecessor fund into
any of the Funds, you will be permitted to make additional Class Y share purchases. In addition, you will be permitted to make additional
Class Y shares purchases if you owned Class Y shares in a “Solo 401(k)” Plan or 403(b) custodial account held directly at
Invesco if you held such shares in your account on or prior to May 24, 2019.
Investor
Class Shares
Investor
Class shares are sold with no initial sales charge and have a maximum 12b-1 fee of 0.25%. Only the following persons may purchase Investor
Class shares:
◾
Investors
who established accounts prior to April 1, 2002, in Investor Class shares with Invesco Distributors, Inc. (Invesco Distributors) who have
continuously maintained an account in Investor Class shares (this includes anyone listed in the registration of an account, such as a
joint owner, trustee or custodian, and immediate family members of such persons) without a designated intermediary. These investors are
referred to as “Investor Class grandfathered investors.”
◾
Customers
of a financial intermediary that has had an agreement with the Funds’ distributor or any Funds that offered Investor Class shares
prior to April 1, 2002, that has continuously maintained such agreement. These intermediaries are referred to as “Investor
Class grandfathered intermediaries.”
◾
Any
current, former or retired trustee, director, officer or employee (or immediate family member of a current, former or retired trustee,
director, officer or employee) of any Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
For
additional shareholder eligibility requirements with respect to Invesco
Premier Portfolio, please see “Shareholder Account Information – Purchasing Shares and Shareholder Eligibility – Invesco
Premier Portfolio.”
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.
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 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
A-4 The
Invesco Funds
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.
Merrill
Lynch
Shareholders
purchasing Fund shares through a Merrill
Lynch platform
or account will be eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at Merrill Lynch
◾
Employer-sponsored
retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to fund those plans,
provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the plan;
◾
Shares
purchased by a 529 Plan (does not include 529 Plan unit or 529-specific share classes or equivalents);
◾
Shares
purchased through a Merrill Lynch affiliated investment advisory program;
◾
Shares
exchanged due to the holdings moving from a Merrill Lynch affiliated investment advisory program to a Merrill Lynch brokerage (non-advisory)
account pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers;
◾
Shares
purchased by third party investment advisors on behalf of their advisory clients through Merrill Lynch’s platform;
◾
Shares
of funds purchased through the Merrill Edge Self-Directed platform (if applicable);
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not
any other fund within the fund family);
◾
Shares
exchanged from Class C (i.e.
level-load) shares of the same fund pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers;
◾
Employees
and registered representatives of Merrill Lynch or its affiliates and their family members;
◾
Directors
or Trustees of the Fund, and employees of the Fund’s investment adviser or any of its affiliates, as described in this prospectus;
and
◾
Eligible
shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days
following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to
a front-end or deferred sales load (known as Rights of Reinstatement). Automated transactions (i.e. systematic purchases and withdrawals)
and purchases made after shares are automatically sold to pay Merrill Lynch’s account maintenance fees are not eligible for reinstatement.
◾
CDSC
Waivers on A and C Shares available at Merrill Lynch
◾
Death
or disability of the shareholder;
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund’s prospectus;
◾
Return
of excess contributions from an IRA Account;
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts pursuant to the Internal Revenue Code;
◾
Shares
sold to pay Merrill Lynch fees but only if the transaction is initiated by Merrill Lynch;
◾
Shares
acquired through a right of reinstatement;
◾
Shares
held in retirement brokerage accounts, that are converted to a lower cost share class due to transfer to a fee based account or platform
(applicable to A and C shares only); and
◾
Shares
received through an exchange due to the holdings moving from a Merrill Lynch affiliated investment advisory program to a Merrill Lynch
brokerage (non-advisory) account pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers.
◾
Front-end
load Discounts Available at Merrill Lynch: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this prospectus;
◾
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts as described in the Fund’s prospectus will be automatically
calculated based on the aggregated holding of fund family assets held by accounts (including 529 program holdings, where applicable) within
the purchaser’s household at Merrill Lynch. Eligible fund family assets not held at Merrill Lynch may be included in the ROA calculation
only if the shareholder notifies his or her financial advisor about such assets; and
◾
Letters
of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Merrill Lynch, over
a 13-month period of time (if applicable).
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).
A-5 The
Invesco Funds
Morgan
Stanley Wealth Management
Shareholders
purchasing Fund shares through a Morgan Stanley
Wealth Management transactional brokerage account will be eligible
only for the following front-end sales charge waivers with respect to Class A shares, which may differ from and may be more limited than
those disclosed elsewhere in this Fund’s Prospectus or SAI.
◾
Front-end
Sales Charge Waivers on Class A Shares available at Morgan Stanley Wealth Management
◾
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and
defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs, SAR-SEPs
or Keogh plans;
◾
Morgan
Stanley employee and employee-related accounts according to Morgan Stanley’s account linking rules;
◾
Shares
purchased through reinvestment of dividends and capital gains distributions when purchasing shares of the same fund;
◾
Shares
purchased through a Morgan Stanley self-directed brokerage account;
◾
Class
C (i.e., level-load) shares that are no longer subject to a contingent deferred sales charge and are converted to Class A shares of the
same fund pursuant to Morgan Stanley Wealth Management’s share class conversion program; and
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (i) the repurchase occurs within 90 days following the
redemption, (ii) the redemption and purchase occur in the same account, and (iii) redeemed shares were subject to a front-end or deferred
sales charge.
Raymond
James Financial Services, Inc.
Shareholders
purchasing Fund shares through a Raymond
James Financial Services, Inc., Raymond James affiliates and each
entity’s affiliates (Raymond James) platform or account, or through an introducing broker-dealer or independent registered investment
adviser for which Raymond James provides trade execution, clearance, and/or custody services, will be eligible only for the following
load waivers (front-end sales charge waivers and contingent deferred, or back-end, sales charge waivers) and discounts, which may differ
from those disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
sales load waivers on Class A shares available at Raymond James
◾
Shares
purchased in an investment advisory program.
◾
Shares
purchased within the same fund family through a systematic reinvestment of capital gains distributions and dividend distributions.
◾
Employees
and registered representatives of Raymond James or its affiliates and their family members as designated by Raymond James.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (known as Rights of Reinstatement).
◾
A
shareholder in the Fund’s Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate
share class) of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures
of Raymond James.
◾
CDSC
Waivers on Classes A and C shares available at Raymond James
◾
Death
or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the fund’s prospectus.
◾
Return
of excess contributions from an IRA Account.
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based
on applicable IRS regulations as described in the fund’s prospectus.
◾
Shares
sold to pay Raymond James fees but only if the transaction is initiated by Raymond James.
◾
Shares
acquired through a right of reinstatement.
◾
Front-end
load discounts available at Raymond James: breakpoints, rights of accumulation, and/or letters of intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of
fund family assets held by accounts within the purchaser’s household at Raymond James. Eligible fund family assets not held at Raymond
James may be included in the calculation of rights of accumulation only if the shareholder notifies his or her financial advisor about
such assets.
◾
Letters
of intent which allow for breakpoint discounts based on anticipated purchases within a fund family, over a 13-month time period. Eligible
fund family assets not held at Raymond James may be included in the calculation of letters of intent only if the shareholder notifies
his or her financial advisor about such assets.
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.
A-6 The
Invesco Funds
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.
◾
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.
Oppenheimer
& Co. Inc. (“OPCO”)
Shareholders
purchasing Fund shares through an OPCO
platform or account are eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund's prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at OPCO
◾
Employer-sponsored
retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to
fund
those plans, provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the
plan
◾
Shares
purchased by or through a 529 Plan
◾
Shares
purchased through an OPCO affiliated investment advisory program
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not
any other fund within the fund family)
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (known as Rights of Reinstatement).
◾
A
shareholder in the Fund's Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate share
class) of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures of OPCO
◾
Employees
and registered representatives of OPCO or its affiliates and their family members
◾
Directors
or Trustees of the Fund, and employees of the Fund's investment adviser or any of its affiliates, as described in this prospectus
◾
CDSC
Waivers on A and C Shares available at OPCO
◾
Death
or disability of the shareholder
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund's prospectus
◾
Return
of excess contributions from an IRA Account
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based
on applicable IRS regulations as described in the prospectus
◾
Shares
sold to pay OPCO fees but only if the transaction is initiated by OPCO Shares acquired through a right of reinstatement
◾
Front-end
load Discounts Available at OPCO: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding
of fund family assets held by accounts within the purchaser's household at OPCO. Eligible fund family assets not held at OPCO may be included
in the ROA calculation only if the shareholder notifies his or her financial advisor about such assets.
Robert
W. Baird & Co. Incorporated (“Baird”)
Shareholders
purchasing fund shares through a Baird
platform or account will only be eligible for the following sales charge waivers (front-end sales charge waivers and CDSC waivers) and
discounts, which may differ from those disclosed elsewhere in this prospectus or the SAI.
◾
Front-End
Sales Charge Waivers on Class A-shares Available at Baird
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund.
◾
Shares
purchased by employees and registered representatives of Baird or its affiliate and their family members as designated by Baird.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales charge (known as rights of reinstatement).
◾
A
shareholder in the Fund’s Class C Shares will have their shares converted at net asset value to Class A shares of the fund if the
shares are no longer subject to CDSC and the conversion is in line with the policies and procedures of Baird.
◾
Employer-sponsored
retirement plans or charitable accounts in a transactional brokerage account at Baird, including 401(k) plans, 457 plans, employer-sponsored
403(b) plans, profit sharing and money
A-7 The
Invesco Funds
purchase
pension plans and defined benefit plans. For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs,
Simple IRAs or SAR-SEPs.
◾
CDSC
Waivers on Classes A and C shares Available at Baird
◾
Shares
sold due to death or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund’s Prospectus.
◾
Return
of excess contributions from an IRA Account.
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching age 72 as described in
the Fund’s prospectus.
◾
Shares
sold to pay Baird fees but only if the transaction is initiated by Baird.
◾
Shares
acquired through a right of reinstatement.
◾
Front-End
Sales Charge Discounts Available at Baird: Breakpoints, Rights of Accumulation and/or letters of intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of
fund family assets held by accounts within the purchaser’s household at Baird. Eligible fund family assets not held at Baird may
be included in the rights of accumulation calculation only if the shareholder notifies his or her financial advisor about such assets.
◾
Letters
of Intent (LOI) allow for breakpoint discounts based on anticipated purchases of within a fund family through Baird, over a 13-month period
of time.
Edward
D. Jones & Co., L.P. (“Edward Jones”)
Policies
Regarding Transactions Through Edward Jones
The
following information has been provided by Edward Jones:
The
following information supersedes prior information with respect to transactions
and positions held in fund shares through an Edward Jones system. Shareholders purchasing Fund shares through the Edward
Jones commission
and fee-based platforms will be eligible for the following load waivers (front- end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund's prospectus or statement of additional
information (“SAI”). 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 (including holdings of 529 Plans where Invesco serves as primary distributor), 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.
◾
Front-end
sales load waivers on Class A shares available at Edward Jones
◾
Associates
of Edward Jones and its affiliates and their family members who are 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: 1) the proceeds are
from the sale of shares within 60 days of the purchase, and 2) the sale and purchase are made in the same share class and the same account
or the purchase is made in an individual retirement account with proceeds from liquidations in a non-retirement account.
◾
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.
◾
CDSC
Waivers on Classes A and C shares available at Edward Jones
◾
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
sold 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 the qualified age based on applicable IRS regulations.
◾
Shares
sold 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 Minimum Balances, as described below.
◾
Front-end
load discounts available at Edward Jones: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoint
pricing, otherwise known as volume pricing, at dollar thresholds as described in the prospectus.
◾
Rights
of Accumulation (“ROA”) which entitles the shareholder to the applicable sales charge on a purchase of Class A shares will
be determined by taking into account all share classes (except certain money market funds and any assets held in group retirement plans)
of Invesco Funds (including holdings of 529 Plans where Invesco serves as primary distributor) 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).
◾
Letters
of Intent (“LOI”) allow shareholders to receive 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.
Other
Important Information Regarding Transactions Through Edward
Jones
Minimum
Purchase Amounts
•
Initial
purchase minimum: $250
•
Subsequent
purchase minimum: none
A-8 The
Invesco Funds
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.
Stifel,
Nicolaus & Company (“Stifel”)
Shareholders
purchasing Fund shares through a Stifel
platform or account will be eligible only for the following front-end sales charge waivers and discounts, which may differ from those
disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at Stifel: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this 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 Stifel. Eligible
fund family assets not held at Stifel may be included in the ROA calculation only if the shareholder notifies his or her financial advisor
about such assets; and
◾
Letters
of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Stifel, over a 13-month
period of time (if applicable).
◾
Shares
converted from Class C (i.e. level-load) shares of the same fund pursuant to Stifel policies relating to sales load discounts and waivers.
PFS
Investments Inc. (“PFSI”)
Policies
Regarding Transactions Through PFSI
The
following information supersedes all prior information with respect to transactions and positions held in fund shares purchased through
PFSI and held on the mutual fund platform of its affiliate, Primerica Shareholder Services (“PSS”). Clients of PFSI (also
referred to as “shareholders”) purchasing fund shares on the PSS platform are eligible only for the following share classes,
sales charge discounts (also referred to as “breakpoints”) and waivers, which can differ from share classes, discounts and
waivers described elsewhere in this prospectus or the related statement of additional information (“SAI”) or through another
broker-dealer. In all instances, it is the shareholder’s responsibility to inform PFSI at the time of a purchase of all holdings
of Invesco Funds on the PSS platform, or other facts qualifying the purchaser for discounts or waivers. PFSI may request reasonable documentation
of such facts, and condition the granting of any discount or waiver on the timely receipt of such documents. Shareholders should contact
PSS if they have questions regarding their eligibility for these discounts and waivers.
Share
Classes
◾
Class
A shares: in non-retirement accounts, individual retirement accounts (IRA), SEP IRAs, SIMPLE IRAs, Keogh Plans, and all other account
types unless expressly provided for below.
◾
Class
C shares: only in accounts with existing Class C share holdings.
Breakpoints
◾
Breakpoint
pricing at dollar thresholds as described in the prospectus of the fund you are purchasing.
Rights
of Accumulation (“ROA”)
◾
The
applicable sales charge on a purchase of Class A shares is determined by taking into account all share classes (except any assets held
in group retirement plans) of Invesco Funds held by the shareholder on the PSS Platform. The inclusion of eligible fund family assets
in the ROA calculation is dependent on the shareholder notifying PFSI of such assets at the time of calculation. Shares of money market
funds are
included
only if such shares were acquired in exchange for shares of another Invesco Fund purchased with a sales charge. No shares of Invesco Funds
held by the shareholder away from the PSS platform will be granted ROA with shares of any Invesco Fund purchased on the PSS platform.
◾
Any
SEP IRA plan, any SIMPLE IRA plan or any Payroll Deduction plan (“PDP”) on the PSS platform will be defaulted to plan-level
grouping for purposes of ROA, which allows each participating employee ROA with all other eligible shares held in plan accounts on the
PSS platform. At any time, a participating employee may elect to exercise a one-time option to change grouping for purposes of ROA to
shareholder- level grouping, which allows the plan account of the electing employee ROA with her other eligible holdings on the PSS platform,
but not with all other eligible participant holdings in the plan. Eligible shares held in plan accounts electing shareholder-level grouping
will not be available for purposes of ROA to plan accounts electing plan-level grouping.
◾
ROA
is determined by calculating the higher of cost minus redemptions or current market value (current shares x NAV).
Letter
of Intent (“LOI”)
◾
By
executing a LOI, shareholders can receive the sales charge and breakpoint discounts for purchases shareholders intend to make over a 13-month
period through PFSI, from the date PSS receives the LOI. The purchase price of the LOI is determined by calculating the higher of cost
or market value of qualifying holdings at LOI initiation in combination with the dollar amount the shareholder intends to invest over
a 13-month period to arrive at total investment for purposes of determining any breakpoint discount and the applicable front-end sales
charge. Each purchase the shareholder makes during that 13-month period will receive the sales charge and breakpoint discount that applies
to the projected total investment.
◾
Only
holdings of Invesco Funds on the PSS platform are eligible for inclusion in the LOI calculation and the shareholder must notify PFSI of
all eligible assets at the time of calculation.
◾
Purchases
made before the LOI is received by PSS are not adjusted under the LOI, and the LOI will not reduce any sales charge previously paid. Sales
charges will be automatically adjusted if the total purchases required by the LOI are not met.
◾
If
an employer maintaining a SEP IRA plan, SIMPLE IRA plan or non-IRA PDP on the PSS platform has elected to establish or change ROA for
the accounts associated with the plan to a plan-level grouping, LOIs will also be at the plan-level and may only be established by the
employer. LOIs are not available to PDP IRA plans on the PSS platform with plan-level grouping for purposes of ROA, but are available
to any participating employee that elects shareholder-level grouping for purposes of ROA.
Sales
Charge Waivers
Sales
charges are waived for the following shareholders and in the following
situations:
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment.
◾
Shares
purchased with the proceeds of redeemed shares of the same fund family so long as the following conditions are met: 1) the proceeds are
from the sale of shares within 90 days of the purchase, 2) the sale and purchase are made in the same share class and the same account
or the purchase is made in an individual retirement account with proceeds from liquidations in a non-retirement account, and 3) the redeemed
shares were subject to a front-end or deferred sales load, Automated transactions (i.e. systematic purchases and withdrawals), full or
partial transfers or rollovers of retirement accounts, and purchases made after shares are automatically sold to pay account maintenance
fees are not eligible for this sales charge waiver.
◾
Shares
exchanged into Class A shares from another share class so long as the exchange is into the same fund and was initiated at the discretion
of PFSI. PFSI is responsible for any remaining CDSC due to the fund company, if applicable. Any future purchases are subject to the applicable
sales charge as disclosed in the prospectus.
Policies
Regarding Fund Purchases Through PFSI That Are Not Held
on the PSS Platform
A-9 The
Invesco Funds
◾
Class
R shares
are available through PFSI only in 401(k) plans covering a business owner with no employees, commonly referred to as a one-participant
401(k) plan or solo 401(k).
UBS
Financial Services Inc. (“UBS”)
Pursuant
to an agreement with the Distributor, UBS may offer Class Y
shares
to its retail brokerage clients whose shares are held in omnibus
accounts at UBS, or its designee. For these clients, UBS may charge commissions or transaction fees with respect to brokerage transactions
in Class Y shares. The
minimum investment for Class Y shares is waived for transactions through such brokerage platforms at UBS. Please contact your UBS representative
for more information about these fees and other eligibility requirements.
Qualifying
for Reduced Sales Charges and Sales Charge Exceptions
The
following types of accounts qualify for reduced sales charges or sales charge exceptions under ROAs and LOIs:
1.
an
individual account owner;
2.
immediate
family of the individual account owner (which includes the individual’s spouse or domestic partner; the individual’s children,
step-children or grandchildren; the spouse or domestic partner of the individual’s children, step-children or grandchildren; the
individual’s parents and step-parents; the parents or step-parents of the individual’s spouse or domestic partner; the individual’s
grandparents; and the individual’s siblings);
3.
a
Retirement and Benefit Plan so long as the plan is established exclusively for the benefit of an individual account owner; and
4.
a
Coverdell Education Savings Account (Coverdell ESA), maintained pursuant to Section 530 of the Code (in either case, the account
must be established by an individual account owner or have an individual account owner named as the beneficiary thereof).
Alternatively,
an Employer Sponsored Retirement and Benefit Plan (but not including
plans utilizing the Invesco 403(b)(7) Custodial Account program, or the individual custodial accounts thereunder) or Employer Sponsored
IRA may be eligible to purchase shares pursuant to a ROA at the plan level, and receive a reduced applicable initial sales charge for
a new purchase based on the total value of the current purchase and the value of other shares owned by the plan’s participants if:
a)
the
employer or plan sponsor submits all contributions for all participating employees in a single contribution transmittal (the Invesco Funds
will not accept separate contributions submitted with respect to individual participants);
b)
each
transmittal is accompanied by checks or wire transfers; and
c)
if
the Invesco Funds are expected to carry separate accounts in the names of each of the plan participants, (i) the employer or plan
sponsor notifies Invesco Distributors or its designee in writing that the separate accounts of all plan participants should be linked,
and (ii) all new participant accounts are established by submitting an appropriate Account Application on behalf of each new participant
with the contribution transmittal.
Participant
accounts in a retirement plan that are eligible to purchase shares
pursuant to a ROA at the plan level may not also be considered eligible to do so for the benefit of an individual account owner.
In
all instances, it is the purchaser’s responsibility to notify Invesco Distributors
or its designee of any relationship or other facts qualifying the purchaser as eligible for reduced sales charges and/or sales charge
exceptions and to provide all necessary documentation of such facts in order to qualify for reduced sales charges or sales charge exceptions.
For additional information on linking accounts to qualify for ROA or LOI, please see the Funds’ SAI.
Purchases
of Class A shares of Invesco Conservative Income Fund, Invesco
Government Money Market Fund and Invesco Short Term Municipal Fund, Class AX shares or Invesco Cash Reserve Shares of Invesco Government
Money Market Fund and Invesco U.S. Government Money Portfolio, as applicable, or Investor Class shares of any Fund will not be
taken
into account in determining whether a purchase qualifies for a reduction in initial sales charges pursuant to ROAs or LOIs.
Rights
of Accumulation
Purchasers
that qualify for ROA may combine new purchases of Class A shares of a Fund with shares of the Fund or other open-end Invesco Funds
currently owned (Class A, C, IB, IC, P, R, S or Y) for the purpose of qualifying for the lower initial sales charge rates that apply
to larger purchases. The applicable initial sales charge for the new purchase will be based on the total of your current purchase and
the value of other shares owned based on their current public offering price. The Funds’ transfer agent may automatically link certain
accounts registered in the same name with the same taxpayer identification number for the purpose of qualifying you for lower initial
sales charge rates.
Letters
of Intent
Under
a LOI, you commit to purchase a specified dollar amount of Class A shares of one or more Funds during a 13-month period. The amount
you agree to purchase determines the initial sales charge you pay. If the full amount committed to in the LOI is not invested by the end
of the 13-month period, your account will generally be assessed the higher initial sales charge that would normally be applicable to the
total amount actually invested. Shares equal in value to 5% of the intended purchase amount will be held in escrow for this purpose.
Reinstatement
Following Redemption
If
you redeem any class of shares of a Fund, you may reinvest all or a portion of the proceeds from the redemption (and may include that
amount necessary to acquire a fractional Share to round off his or her purchase to the next full Share) in the same share class of any
Fund within 180 days of the redemption without paying an initial sales charge. Class P, S, and Y redemptions may be reinvested into Class
A shares without an initial sales charge.
This
reinstatement privilege does not apply to a purchase made through a
regularly scheduled automatic investment plan, such as a purchase by a regularly scheduled payroll deduction or transfer from a bank account.
This
reinstatement privilege shall be suspended for the period of time in which
a purchase block is in place on a shareholder’s account. Please see “Purchase Blocking Policy” discussed below.
In
order to take advantage of this reinstatement privilege, you must inform
your financial adviser or the Funds’ transfer agent that you wish to do so at the time of your reinvestment.
Contingent
Deferred Sales Charges (CDSCs)
CDSCs
on Class A Shares and Invesco Cash Reserve Shares
Any
shares of a Large Purchase of Class A shares redeemed prior to 18 months after the date of purchase will be subject to a CDSC of 1% with
the exception of Class A shares of Invesco Conservative Income Fund and Invesco Short Term Municipal Fund which do not have CDSCs on redemptions.
If
Invesco Distributors pays a concession to a financial intermediary in connection
with a Large Purchase of Class A shares by an Employer Sponsored Retirement and Benefit Plan or SIMPLE IRA Plan, the Class A shares will
be subject to a 1% CDSC if all of the Employer Sponsored Retirement and Benefit Plan’s or SIMPLE IRA’s shares are redeemed
within one year from the date of initial purchase.
If
you acquire Invesco Cash Reserve Shares or Class A shares of Invesco
Government Money Market Fund or Invesco Cash Reserve Shares of Invesco U.S. Government Money Portfolio through an exchange involving Class
A shares that were subject to a CDSC, the shares acquired as a result of the exchange will continue to be subject to that same CDSC.
CDSCs
on Class C Shares
Class
C shares are subject to a CDSC; however, the CDSC shall not apply to the purchases of Class C shares where the selling broker-dealer was
not paid a commission at the time of purchase. If you redeem your shares during the first year since your purchase has been made you will
be
A-10 The
Invesco Funds
assessed
a CDSC as disclosed in the “Fees and Expenses - Shareholder Fees” table in the prospectus, unless you qualify for one of the
CDSC exceptions outlined below.
CDSCs
on Class C Shares – Employer Sponsored Retirement and Benefit Plans and Employer Sponsored IRAs
Class
C shares are subject to a 1.00% CDSC at the time of redemption if all of the Employer Sponsored Retirement and Benefit Plan’s or
Employer Sponsored IRA’s shares are redeemed within one year from the date of initial purchase.
CDSCs
on Class C Shares of Invesco Short Term Bond Fund
Effective
November 1, 2021, Class C shares of Invesco Short Term Bond Fund are subject to a CDSC. If you acquire Class C shares of any other Fund
as a result of an exchange involving Class C shares of Invesco Short Term Bond Fund that were not subject to a CDSC prior to November
1, 2021, then the shares acquired as a result of the exchange will not be subject to a CDSC.
Computing
a CDSC
The
CDSC on redemptions of shares is computed based on the lower of their original purchase price or current net asset value, net of reinvested
dividends and capital gains distributions. In determining whether to charge a CDSC, shares are accounted for on a first-in, first-out
basis, which means that you will redeem shares on which there is no CDSC first, and then shares in the order of their purchase.
CDSC
Exceptions
Investors
who own shares that are otherwise subject to a CDSC will not pay a CDSC in the following circumstances:
◾
If
you participate in the Systematic Redemption Plan and withdraw up to 12% of the value of your shares that are subject to a CDSC in any
twelve-month period.
◾
If
you redeem shares to pay account fees.
◾
If
you are the executor, administrator or beneficiary of an estate or are otherwise entitled to assets remaining in an account following
the death or post-purchase disability of a shareholder or beneficial owner and you choose to redeem those shares.
There
are other circumstances under which you may be able to redeem shares
without paying CDSCs. For additional information about such circumstances, please see the Appendix entitled “Purchase, Redemption
and Pricing of Shares” in each Fund’s SAI.
Shares
acquired through the reinvestment of dividends and distributions are
not subject to CDSCs.
The
following share classes are sold without a CDSC:
◾
Class
A2 shares of Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund
◾
Class
A shares of Invesco Government Money Market Fund
◾
Invesco
Cash Reserve Shares of Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio
◾
Investor
Class shares of any Fund
◾
Class
P shares of Invesco Summit Fund
◾
Class
R5 and R6 shares of any Fund
◾
Class
R shares of any Fund
◾
Class
S shares of Invesco Charter Fund, Invesco Select Risk: Moderately Conservative Investor Fund, Invesco Select Risk: Growth Investor Fund,
Invesco Select Risk: Moderate Investor Fund and Invesco Summit Fund
◾
Class
Y shares of any Fund
Purchasing
Shares and Shareholder Eligibility
Invesco
Premier U.S. Government Money Portfolio
For
Invesco Premier U.S. Government Money Portfolio, you may purchase shares using one of the options below. Unless the Fund closes early
on a business day, the Fund’s transfer agent will generally accept any purchase order placed until 5:00 p.m. Eastern Time on a business
day and may accept a purchase order placed until 5:30 p.m. Eastern Time on a business
day.
If you wish to place an order between 5:00 p.m. and 5:30 p.m. Eastern Time on a business day, you must place such order by telephone;
however, the Fund’s transfer agent reserves the right to reject or limit the amount of orders placed during this time. If the Fund
closes early on a business day, the Fund’s transfer agent must receive your purchase order prior to such closing time. Purchase
orders will not be processed unless the account application and purchase payment are received in good order. In accordance with the USA
PATRIOT Act, if you fail to provide all the required information requested in the current account application, your purchase order will
not be processed. Additionally, federal law requires that the Fund verifies and records your identifying information.
Invesco
Premier Portfolio
Only
accounts beneficially owned by natural persons will be permitted to retain their shares. The Fund has implemented policies and procedures
reasonably designed to limit all beneficial owners of the Fund to natural persons, and investments in the Fund are limited to accounts
beneficially owned by natural persons. Natural persons may invest in the Fund through certain tax-advantaged savings accounts, trusts
and other retirement and investment accounts, which may include, among others: participant-directed defined contribution plans; individual
retirement accounts; simplified employee pension arrangements; simple retirement accounts; custodial accounts; deferred compensation plans
for government or tax-exempt organization employees; Archer medical savings accounts; college savings plans; health savings account plans;
ordinary trusts and estates of natural persons; or certain other retirement and investment accounts with ultimate investment authority
held by the natural person beneficial owner, notwithstanding having an institutional decision maker making day-to-day decisions (e.g.,
a plan sponsor in certain retirement arrangements or an investment adviser managing discretionary investment accounts).
Further,
financial intermediaries may only submit purchase orders if they have
implemented policies and procedures reasonably designed to limit all investors on behalf of whom they submit orders to accounts beneficially
owned by natural persons. Financial intermediaries may be required to provide a written statement or other representation that they have
in place, and operate in compliance with, such policies and procedures prior to submitting purchase orders. Such policies and procedures
may include provisions for the financial intermediary to promptly report to the Fund or the transfer agent the identification of any shareholder
of the Fund that does not qualify as a natural person of whom they are aware and promptly take steps to redeem any such shareholder’s
shares of the Fund upon request by the Fund or the transfer agent, in such manner as it may reasonably request. The Fund may involuntarily
redeem any such shareholder who does not voluntarily redeem their shares.
Natural
persons may purchase shares using one of the options below. For
all classes of the Fund, other than Investor Class shares, unless the Fund closes early on a business day, the Fund’s transfer agent
will generally accept any purchase order placed until 5:00 p.m. Eastern Time on a business day and may accept a purchase order placed
until 5:30 p.m. Eastern Time on a business day. If you wish to place an order between 5:00 p.m. and 5:30 p.m. Eastern Time on a business
day, you must place such order by telephone; or send your request by a pre-arranged Liquidity Link data transmission however, the Fund’s
transfer agent reserves the right to reject or limit the amount of orders placed during this time. For Investor Class shares of the Fund,
unless the Fund closes early on a business day, the Fund’s transfer agent will generally accept any purchase order placed until
4:00 p.m. Eastern Time on a business day and may accept a purchase order placed until 4:30 p.m. Eastern Time on a business day. If you
wish to place an order between 4:00 p.m. and 4:30 p.m. Eastern Time on a business day, you must place such order by telephone; however,
the Fund’s transfer agent reserves the right to reject or limit the amount of orders placed during this time. If the Fund closes
early on a business day, the Fund’s transfer agent must receive your purchase order prior to such closing time. Purchase orders
will not be processed unless the account application and purchase payment are received in good order. In accordance with the USA PATRIOT
Act, if you fail to provide all the required information requested in the current account application, your purchase order will not be
A-11 The
Invesco Funds
processed.
Additionally, federal law requires that the Fund verify and record your identifying information.
Minimum Investments
There
are no minimum investments for Class P or S shares for fund accounts. The minimum investments for Class A, C, R, Y, Investor Class and
Invesco Cash Reserve shares for fund accounts are as follows:
|
Type
of Account |
Initial
Investment
Per
Fund |
Additional
Investments
Per
Fund |
|
Asset
or fee-based accounts managed by your financial
adviser
|
None
|
None
|
|
| ||
|
Employer
Sponsored Retirement and Benefit Plans and
Employer
Sponsored IRAs |
None
|
None
|
|
| ||
|
IRAs
and Coverdell ESAs if the new investor is
purchasing
shares through a systematic purchase plan |
$25
|
$25
|
|
| ||
|
All
other accounts if the investor is purchasing shares
through
a systematic purchase plan |
50
|
50
|
|
| ||
|
IRAs
and Coverdell ESAs |
250
|
25
|
|
| ||
|
All
other accounts |
1,000
|
50
|
|
| ||
Invesco
Distributors or its designee has the discretion to accept orders on behalf of clients for lesser amounts.
The
minimum investments for Class R5 and R6 shares are as follows:
There
is no minimum initial investment for an Employer Sponsored Retirement
and Benefit Plan investing through a retirement platform that administers at least $2.5 billion in retirement plan assets. All other Employer
Sponsored Retirement and Benefit Plans must meet a minimum initial investment of at least $1 million in each Fund in which it invests.
The
minimum initial investment in each share class for all other institutional
investors is $1 million, unless such investment is made by (i) an investment company, as defined under the 1940 Act, as amended, that
is part of a family of investment companies which own in the aggregate at least $100 million in securities, or (ii) an account established
with a 529 college savings plan managed by Invesco, in which case there is no minimum initial investment.
There
are no minimum investment amounts for Class R6 shares held through
retail omnibus accounts where the intermediary:
◾
generally
charges an asset-based fee or commission in addition to those described in this prospectus; and
◾
maintains
Class R6 shares and makes them available to retail investors.
A
financial intermediary may impose different investment minimums than
those set forth above. The Fund is not responsible for any investment minimums imposed by financial intermediaries or for notifying shareholders
of any changes to them. See “Waivers Available Through Certain Financial Intermediaries and Other Financial Intermediary-Specific
Arrangements” for more information on certain intermediary-specific investment minimums. Please consult with your financial intermediary
if you have any questions regarding their policies.
How
to Purchase Shares*
|
|
Opening
An Account |
Adding
To An Account |
|
Through
a
Financial
Adviser
or
Financial
Intermediary*
|
Contact
your financial adviser or
financial
intermediary. |
Contact
your financial adviser or
financial
intermediary. |
|
By
Mail |
Mail
completed account application
and
check to the Funds’ transfer
agent,
Invesco
Investment Services, Inc.
P.O.
Box 219078,
Kansas
City, MO 64121-9078.
The
Funds’ transfer agent does NOT
accept
the following types of
payments:
Credit Card Checks,
Temporary/Starter
Checks, Third
Party
Checks, and Cash. |
Mail
your check and the remittance
slip
from your confirmation
statement
to the Funds’ transfer
agent.
The Funds’ transfer agent
does
NOT accept the following
types
of payments: Credit Card
Checks,
Temporary/Starter Checks,
Third
Party Checks, and Cash. |
|
|
Opening
An Account |
Adding
To An Account |
|
By
Wire* |
Mail
completed account application
to
the Funds’ transfer agent. Call
the
Funds’ transfer agent at (800)
959-4246
to receive a reference
number.
Then, use the wire
instructions
provided below. |
Call
the Funds’ transfer agent to
receive
a reference number. Then,
use
the wire instructions provided
below.
|
|
Wire
Instructions |
Beneficiary
Bank ABA/Routing #: 011001234
Beneficiary
Account Number: 729639
Beneficiary
Account Name: Invesco Investment Services, Inc.
RFB:
Fund Name, Reference #
OBI:
Your Name, Account # | |
|
By
Telephone* |
Open
your account using one of the
methods
described above. |
The
Bank Account Information
option
on your completed account
application
or complete a
Systematic
Options and Bank
Information
Form. Mail the
application
or form to the Funds’
transfer
agent. Once the Funds’
transfer
agent has received the
form,
call the Funds’ transfer agent
at
the number below to place your
purchase
order. For Class R5 and
R6
shares, call the Funds’ transfer
agent
at (800) 959-4246 and wire
payment
for your purchase order in
accordance
with the wire
instructions
listed above. |
|
Automated
Investor
Line |
Open
your account using one of the
methods
described above. |
Call
the Funds’ transfer agent’s
24-hour
Automated Investor Line at
1-800-246-5463.
You may place
your
order after you have provided
the
bank instructions that will be
requested.
|
|
By
Internet |
Open
your account using one of the
methods
described above. |
Access
your account at
www.invesco.com/us.
The proper
bank
instructions must have been
provided
on your account. You may
not
purchase shares in Retirement
and
Benefit Plans on the internet. |
|
*Class
R5 and R6 shares may only be purchased through a financial intermediary or by
telephone
at (800) 959-4246. | ||
Non-retirement
retail investors, including high net worth investors investing
directly or through a financial intermediary, are not eligible for Class R5 shares. IRAs and Employer Sponsored IRAs are also not eligible
for Class R5 shares. If you hold your shares through a financial intermediary, the terms by which you purchase, redeem and exchange shares
may differ than the terms in this prospectus depending upon the policies and procedures of your financial intermediary.
Purchase
orders will not be processed unless the account application and
purchase payment are received in good order. In accordance with the USA PATRIOT Act, if you fail to provide all the required information
requested in the current account application, your purchase order will not be processed. Additionally, federal law requires that the Funds
verify and record your identifying information.
Systematic
Purchase Plan (Available for all classes except Class R5 and R6 shares)
You
can arrange for periodic investments in any of the Funds by authorizing the Funds’ transfer agent to withdraw the amount of your
investment from your bank account on a day or dates you specify and in an amount of at least $25 per Fund for IRAs and Coverdell ESAs,
and at least $50 per Fund for all other types of accounts (a Systematic Purchase Plan). You may stop the Systematic Purchase Plan at any
time by giving the Funds’ transfer agent notice ten days prior to your next scheduled withdrawal. Certain financial advisers and
other financial intermediaries may also offer systematic purchase plans.
A-12 The
Invesco Funds
Dollar
Cost Averaging (Available for all classes except Class R5 and R6 shares)
Dollar
Cost Averaging allows you to make automatic periodic exchanges, if permitted, from one Fund to another Fund or multiple other Funds. The
account from which exchanges are to be made must have a minimum balance of $5,000 before you can use this option. Exchanges will occur
on (or about) the day of the month you specify, in the amount you specify. Dollar Cost Averaging cannot be set up for the 29th through
the 31st of the month. The minimum amount you can exchange to another Fund is $50. Your financial intermediary may offer alternative dollar
cost averaging programs with different requirements.
Automatic
Dividend and Distribution Investment
Your
dividends and distributions may be paid in cash or reinvested in the same Fund or another Fund without paying an initial sales charge.
Unless
you specify otherwise, your dividends and distributions will automatically
be reinvested in the same Fund. You must comply with the following requirements to be eligible to invest your dividends and distributions
in shares of another Fund:
◾
Your
account balance in the Fund paying the dividend or distribution must be at least $5,000; and
◾
Your
account balance in the Fund receiving the dividend or distribution must be at least $500.
If
you elect to receive your distributions by check, and the distribution amount
is $25 or less, then the amount will be automatically reinvested in the same Fund and no check will be issued. If you have elected to
receive distributions by check, and the postal service is unable to deliver checks to your address of record, then your distribution election
may be converted to having all subsequent distributions reinvested in the same Fund and no checks will be issued. With respect to certain
account types, if your check remains uncashed for six months, the Fund generally reserves the right to reinvest your distribution check
in your account at the then applicable NAV and to reinvest all subsequent distributions in shares of the Fund. Such checks will be reinvested
into the same share class of the Fund. You should contact the Funds’ transfer agent to change your distribution option, and your
request to do so must be received by the Funds’ transfer agent before the record date for a distribution in order to be effective
for that distribution. No interest will accrue on amounts represented by uncashed distribution checks.
Redeeming
Shares*
The
Funds’ transfer agent or authorized intermediary, if applicable, must receive your call before the Funds’ net asset value
determination (as defined by the applicable Fund) in order to effect the redemption at that day’s net asset value.
Your
broker or financial intermediary may charge service fees for handling
redemption transactions.
|
How
to Redeem Shares | |
|
Through
a Financial
Adviser
or Financial
Intermediary*
|
Contact
your financial adviser or financial intermediary. The Funds’
transfer
agent must receive your financial adviser’s or financial
intermediary’s
call before the Funds’ net asset value determination
(as
defined by the applicable Fund) in order to effect the redemption
at
that day’s net asset value. Please contact your financial adviser or
financial
intermediary with respect to reporting of cost basis and
available
elections for your account. |
|
By
Mail |
Send
a written request to the Funds’ transfer agent which includes: |
|
|
▪ Original
signatures of all registered owners/trustees;
▪ The
dollar value or number of shares that you wish to redeem;
▪ The
name of the Fund(s) and your account number;
▪ The
cost basis method or specific shares you wish to redeem for
tax
reporting purposes, if different than the method already on
record;
and |
|
|
▪ Signature
guarantees, if necessary (see below).
The
Funds’ transfer agent may require that you provide additional
documentation,
or information, such as corporate resolutions or
powers
of attorney, if applicable. If you are redeeming from a
Retirement
and Benefit Plan, you must complete the appropriate
distribution
form. |
|
How
to Redeem Shares | |
|
By
Telephone* |
Call
the Funds’ transfer agent at 1-800-959-4246. You will be
allowed
to redeem by telephone if:
▪ Your
redemption proceeds are to be mailed to your address on
record
(and there has been no change in your address of record
within
the last 15 days) or transferred electronically to a
pre-authorized
checking account;
▪ You
can provide proper identification information;
▪ Your
redemption proceeds do not exceed $250,000 per Fund; and
▪ You
have not previously declined the telephone redemption
privilege.
|
|
|
You
may, in limited circumstances, initiate a redemption from an
Invesco
IRA by telephone. Redemptions from Employer Sponsored
Retirement
and Benefit Plans and Employer Sponsored IRAs may be
initiated
only in writing and require the completion of the appropriate
distribution
form, as well as employer authorization. You must call the
Funds’
transfer agent before the Funds’ net asset value
determination
(as defined by the applicable Fund) in order to effect
the
redemption at that day’s net asset value. |
|
Automated
Investor Line |
Call
the Funds’ transfer agent’s 24-hour Automated Investor Line at
1-800-246-5463.
You may place your redemption order after you
have
provided the bank instructions that will be requested. |
|
By
Internet |
Place
your redemption request at www.invesco.com/us. You will be
allowed
to redeem by Internet if:
▪ You
can provide proper identification information;
▪ Your
redemption proceeds do not exceed $250,000 per Fund; and
▪ You
have already provided proper bank information.
Redemptions
from Employer Sponsored Retirement and Benefit
Plans
and Employer Sponsored IRAs may be initiated only in writing
and
require the completion of the appropriate distribution form, as
well
as employer authorization. |
|
*Class
R5 and R6 shares may only be redeemed through a financial intermediary or by
telephone
at (800) 959-4246. | |
Timing
and Method of Payment
The
Funds’ transfer agent typically expects to pay redemption proceeds to redeeming shareholders within one business day after a redemption
request is received in good order, regardless of the method a Fund uses to make such payment. However, a Fund may take up to seven days
to process a redemption request. “Good order” means that all necessary information and documentation related to the redemption
request have been provided to the Funds’ transfer agent or authorized intermediary, if applicable. If your request is not in good
order, the Funds’ transfer agent may require additional documentation in order to redeem your shares. If you redeem shares recently
purchased by check or ACH, you may be required to wait up to ten calendar days before your redemption proceeds are sent. This delay is
necessary to ensure that the purchase has cleared. You can avoid the check hold period if you pay for your shares with a certified check,
a cashier’s check or a federal wire. Payment may be postponed under unusual circumstances, as allowed by the SEC, such as when the
NYSE restricts or suspends trading.
In
addition, a temporary hold may be placed on the disbursement of redemption
proceeds from an account if there is a reasonable belief that financial exploitation of a Specified Adult (as defined below) has occurred,
is occurring, has been attempted, or will be attempted. Notice of such a delay will be provided in accordance with regulatory requirements.
This temporary hold will be for an initial period of no more than 15 business days while an internal review is performed. Should the internal
review support the belief that financial exploitation has occurred, is occurring, has been attempted or will be attempted, the temporary
hold may be extended for up to 10 additional business days. Both the initial and subsequent hold on the disbursement may be terminated
or extended by a state regulator or an agency or court of competent jurisdiction. For purposes of this paragraph, the term “Specified
Adult” refers to an individual who is (a) a natural person age 65 and older, or (b) a natural person age 18 and older who is reasonably
believed to have a mental or physical impairment that renders the individual unable to protect his or her own interests.
If
you redeem by telephone, the Funds’ transfer agent will transmit the amount
of redemption proceeds electronically to your pre-authorized bank account. Redemption checks are mailed to your address of record, via
first
A-13 The
Invesco Funds
class
U.S. mail, unless you make other arrangements with the Funds’ transfer agent.
The
Funds’ transfer agent uses reasonable procedures to confirm that instructions
communicated via telephone and the Internet are genuine, and the Funds and the Funds’ transfer agent are not liable for losses arising
from actions taken in accordance with instructions that are reasonably believed to be genuine.
A
Fund typically expects to use holdings of cash and cash equivalents and
sales of portfolio assets to meet redemption requests, both regularly and in stressed market conditions. The Funds also have the ability
to redeem in kind as further described below under “Redemptions in Kind.” Certain Funds have a line of credit,
as disclosed in such Funds’ principal investment strategy
and risk disclosures that may be used to meet redemptions in stressed market conditions.
Expedited
Redemptions (for Invesco Cash Reserve Shares of Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio only)
If
you place your redemption order by telephone, before 11:30 a.m. Eastern Time and request an expedited redemption, the Funds’ transfer
agent will transmit payment of redemption proceeds on that same day via federal wire to a bank of record on your account. If the Funds’
transfer agent receives your redemption order after 11:30 a.m. Eastern Time and before the close of the customary trading session of the
NYSE, it will transmit payment on the next business day.
Suspension
of Redemptions
The
right of redemption may be suspended or the date of payment postponed when (a) trading on the NYSE is restricted, as determined by applicable
rules and regulations of the SEC, (b) the NYSE is closed for other than customary weekend and holiday closings, (c) the SEC has by order
permitted such suspension, or (d) an emergency as determined by the SEC exists making disposition of portfolio securities or the valuation
of the net assets of the Fund not reasonably practicable. With respect to Invesco Government Money Market Fund, Invesco U.S. Government
Money Portfolio, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio, in the event that the Fund, at the end
of a business day, has invested less than 10% of its total assets in weekly liquid assets or, with respect to the retail and government
money market funds, the Fund’s price per share as computed for the purpose of distribution, redemption and repurchase, rounded to
the nearest 1%, has deviated from the stable price established by the Fund’s Board of Trustees (“Board”) or the Board,
including a majority of trustees who are not interested persons as defined in the 1940 Act, determines that such a deviation is likely
to occur, and the Board, including a majority of trustees who are not interested persons of the Fund, irrevocably has approved the liquidation
of the Fund, the Fund’s Board has the authority to suspend redemptions of Fund shares.
Liquidity
Fees and Redemption Gates
For
Invesco Premier Portfolio, if the Fund’s weekly liquid assets fall below 30% of its total assets, the Board, in its discretion,
may impose liquidity fees of up to 2% of the value of the shares redeemed and/or suspend redemptions (redemption gates). In addition,
if any such Fund’s weekly liquid assets falls below 10% of its total assets at the end of any business day, the Fund must impose
a 1% liquidity fee on shareholder redemptions unless the Board determines that not doing so is in the best interests of the Fund.
Liquidity
fees and redemption gates are most likely to be imposed, if at all,
during times of extraordinary market stress. In the event that a liquidity fee or redemption gate is imposed, the Board expects that for
the duration of its implementation and the day after which such gate or fee is terminated, the Fund would strike only one net asset value
per day, at the Fund’s last scheduled net asset value calculation time.
The
imposition and termination of a liquidity fee or redemption gate will be
reported by a Fund to the SEC on Form N-CR. Such information will also be available on the Fund’s website. In addition, a Fund will
communicate such action through a supplement to its registration statement and may further communicate such action through a press release
or by other means. If a liquidity fee is applied by the Board, it will be charged on all
redemption
orders submitted after the effective time of the imposition of the fee by the Board. Liquidity fees would reduce the amount you receive
upon redemption of your shares. In the event a Fund imposes a redemption gate, the Fund or any financial intermediary on its behalf will
not accept redemption requests until the Fund provides notice that the redemption gate has been terminated.
Redemption
requests submitted while a redemption gate is imposed will be cancelled
without further notice. If shareholders still wish to redeem their shares after a redemption gate has been lifted, they will need to submit
a new redemption request.
Liquidity
fees and redemption gates will generally be used to assist a Fund
to help preserve its market–based NAV per share. It is possible that a liquidity fee will be returned to shareholders in the form
of a distribution. The Board may, in its discretion, terminate a liquidity fee or redemption gate at any time if it believes such action
to be in the best interest of a Fund. Also, liquidity fees and redemption gates will automatically terminate at the beginning of the next
business day once a Fund’s weekly liquid assets reach at least 30% of its total assets. Redemption gates may only last up to 10
business days in any 90-day period. When a fee or a gate is in place, the Fund may elect not to permit the purchase of shares or to subject
the purchase of shares to certain conditions, which may include affirmation of the purchaser’s knowledge that a fee or a gate is
in effect. When a fee or a gate is in place, shareholders will not be permitted to exchange into or out of a Fund.
There
is some degree of uncertainty with respect to the tax treatment of liquidity
fees received by a Fund, and such tax treatment may be the subject to future IRS guidance. If a Fund receives liquidity fees, it will
consider the appropriate tax treatment of such fees to the Fund at such time.
Financial
intermediaries are required to promptly take the steps requested
by the Funds or their designees to impose or help to implement a liquidity fee or redemption gate as requested from time to time, including
the rejection of orders due to the imposition of a fee or gate or the prompt re-confirmation of orders following a notification regarding
the implementation of a fee or gate. If a liquidity fee is imposed, these steps are expected to include the submission of separate, rather
than combined, purchase and redemption orders from the time of the effectiveness of the liquidity fee or redemption gate and the submission
of such order information to the Fund or its designee prior to the next calculation of a Fund’s net asset value. Unless otherwise
agreed to between a Fund and financial intermediary, the Fund will withhold liquidity fees on behalf of financial intermediaries. With
regard to such orders, a redemption request that a Fund determines in its sole discretion has been received in good order by the Fund
or its designated agent prior to the imposition of a liquidity fee or redemption gate may be paid by the Fund despite the imposition of
a redemption gate or without the deduction of a liquidity fee. If a liquidity fee is imposed during the day, an intermediary who receives
both purchase and redemption orders from a single account holder is not required to net the purchase and redemption orders. However, the
intermediary is permitted to apply the liquidity fee to the net amount of redemptions (even if the purchase order was received prior to
the time the liquidity fee was imposed).
Where
a Financial Intermediary serves as a Fund’s agent for the purpose
of receiving orders, trades that are not transmitted to the Fund by the Financial Intermediary before the time required by the Fund or
the transfer agent may, in the Fund’s discretion, be processed on an as-of basis, and any cost or loss to the Fund or transfer agent
or their affiliates, from such transactions shall be borne exclusively by the Financial Intermediary.
Systematic
Withdrawals (Available for all classes except Class R5 and R6 shares)
You
may arrange for regular periodic withdrawals from your account in amounts equal to or greater than $50 per Fund. The Funds’ transfer
agent will redeem the appropriate number of shares from your account to provide redemption proceeds in the amount requested. You must
have a total account balance of at least $5,000 in order to establish a Systematic Redemption Plan, unless you are establishing a Required
Minimum
A-14 The
Invesco Funds
Distribution
for a Retirement and Benefit Plan. You can stop this plan at any time by giving ten days’ prior notice to the Funds’ transfer
agent.
Check
Writing
The
Funds’ transfer agent provides check writing privileges for accounts in the following Funds and share classes:
◾
Invesco
Government Money Market Fund, Invesco Cash Reserve Shares, Class AX shares, Class Y shares and Investor Class shares
◾
Invesco
U.S. Government Money Portfolio, Invesco Cash Reserve Shares and Class Y shares
◾
Invesco
Premier Portfolio, Investor Class shares
◾
Invesco
Premier U.S. Government Money Portfolio, Investor Class shares
You
may redeem shares of these Funds by writing checks in amounts of $250
or more if you have subscribed to the service by completing a Check Writing authorization form.
Check
writing privileges are not available for Retirement and Benefit Plans.
Checks are not eligible to be converted to ACH by the payee. You may not give authorization to a payee by phone to debit your account
by ACH for a debt owed to the payee.
If
you do not have a sufficient number of shares in your account to cover
the amount of the check and any applicable deferred sales charge, the check will be returned and no shares will be redeemed. Because it
is not possible to determine your account’s value in advance, you should not write a check for the entire value of your account
or try to close your account by writing a check.
A
check writing redemption request which is verifiably submitted to a Fund’s
agent before a liquidity fee or redemption gate is imposed will be considered a valid redemption and will be processed normally.
Signature
Guarantees
The
Funds’ transfer agent requires a signature guarantee in the following circumstances:
◾
When
your redemption proceeds exceed $250,000 per Fund.
◾
When
you request that redemption proceeds be paid to someone other than the registered owner of the account.
◾
When
you request that redemption proceeds be sent somewhere other than the address of record or bank of record on the account.
◾
When
you request that redemption proceeds be sent to a new address or an address that changed in the last 15 days.
The
Funds’ transfer agent will accept a guarantee of your signature by a number
of different types of financial institutions. Call the Funds’ transfer agent for additional information. Some institutions have
transaction amount maximums for these guarantees. Please check with the guarantor institution to determine whether the signature guarantee
offered will be sufficient to cover the value of your transaction request.
Redemptions
in Kind
Although
the Funds generally intend to pay redemption proceeds solely in cash, the Funds reserve the right to determine, in their sole discretion,
whether to satisfy redemption requests by making payment in securities or other property (known as a redemption in kind). Redemptions
in kind may result in transaction costs and/or market fluctuations associated with liquidating or holding the securities, respectively.
Purchases-in-Kind
You
may purchase shares of a Fund by transferring securities to a Fund in exchange for Fund shares (“in-kind purchases”). In-kind
purchases may be made only upon the Funds’ approval and determination that the securities are acceptable investments for the Fund
and are purchased consistent with the Fund’s procedures relating to in-kind purchases. The Funds reserve the right to amend or terminate
this practice at any time. You must call the Funds at (800) 959-4246 before sending any securities. Please see the SAI for additional
details.
Redemptions
by Large Shareholders
At
times, the Fund may experience adverse effects when certain large shareholders redeem large amounts of shares of the Fund. Large redemptions
may cause the Fund to sell portfolio securities at times when it would not otherwise do so. In addition, these transactions may also
accelerate
the realization of taxable income to shareholders (if applicable) if such sales of investments resulted in gains and may also increase
transaction costs and/or increase in the Fund’s expense ratio. When experiencing a redemption by a large shareholder, the Fund may
delay payment of the redemption request up to seven days to provide the investment manager with time to determine if the Fund can redeem
the request-in-kind or to consider other alternatives to lessen the harm to remaining shareholders. Under certain circumstances, however,
the Fund may be unable to delay a redemption request, which could result in the automatic processing of a large redemption that is detrimental
to the Fund and its remaining shareholders.
Redemptions
Initiated by the Funds
If
your account (Class A, C, P, S and Investor Class shares only) has been open at least one year, you have not made an additional purchase
in the account during the past six calendar months, and the value of your account falls below $500 for three consecutive months, the Funds
have the right to redeem the account after giving you 60 days’ prior written notice. You may avoid having your account redeemed
during the notice period by bringing the account value up to $500 or by initiating a Systematic Purchase Plan.
A
financial intermediary may have a different policy regarding redemptions
of accounts with small balances. The Fund is not responsible for any small account balance policies imposed by financial intermediaries
or for notifying shareholders of any changes to them. See “Waivers Available Through Certain Financial Intermediaries and Other
Financial Intermediary-Specific Arrangements” for more information on certain intermediary-specific small account balance policies.
Please consult with your financial intermediary if you have any questions regarding their policies.
If
a Fund determines that you have not provided a correct Social Security
or other tax identification number on your account application, or the Fund is not able to verify your identity as required by law, the
Fund may, at its discretion, redeem the account and distribute the proceeds to you.
In
order to separate retail investors (natural persons) and non-retail investors,
the Invesco Premier Portfolio reserve the right to redeem shares in any account that the Funds cannot confirm to their satisfaction are
beneficially owned by natural persons. The Funds will provide advance written notice of their intent to make any such involuntary redemptions.
The Funds reserve the right to redeem shares in any account that they cannot confirm to their satisfaction are beneficially owned by natural
persons, after providing advance notice.
Neither
a Fund nor its investment adviser will be responsible for any loss
in an investor’s account or tax liability resulting from an involuntary redemption.
Minimum
Account Balance (Available for all classes except Class R5 and R6 shares)
A
low balance fee of $12 per year may be deducted in the fourth quarter of each year from all accounts held in the Funds (each a Fund Account)
with a value less than the low balance amount (the Low Balance Amount) as determined from time to time by the Funds and the Adviser. The
Funds and the Adviser generally expect the Low Balance Amount to be $750, but such amount may be adjusted for any year depending on various
factors, including market conditions. The Low Balance Amount and the date on which it will be deducted from any Fund Account will be posted
on our website, www.invesco.com/us, on or about November 1 of each year. This fee will be payable to the Funds’ transfer agent by
redeeming from a Fund Account sufficient shares owned by a shareholder and will be used by the Funds’ transfer agent to offset amounts
that would otherwise be payable by the Funds to the Funds’ transfer agent under the Funds’ transfer agency agreement with
the Funds’ transfer agent. The low balance fee does not apply to participant accounts in advisory programs or to Employer Sponsored
Retirement and Benefit Plans.
Exchanging
Shares
You
may, under certain circumstances, exchange shares in one Fund for those of another Fund. An exchange is the purchase of shares in one
Fund which is paid for with the proceeds from a redemption of shares of another
A-15 The
Invesco Funds
Fund
effectuated on the same day. Any gain on the transaction may be subject to federal income tax. Accordingly, the procedures and processes
applicable to redemptions of Fund shares, as discussed under the heading “Redeeming Shares” above, will apply. Before requesting
an exchange, review the prospectus of the Fund you wish to acquire.
All
exchanges are subject to the limitations set forth in the prospectuses of
the Funds. If you wish to exchange shares of one Fund for those of another Fund, you must consult the prospectus of the Fund whose shares
you wish to acquire to determine whether the Fund is offering shares to new investors and whether you are eligible to acquire shares of
that Fund.
Permitted
Exchanges
Except
as otherwise provided herein or in the SAI, you generally may exchange your shares for shares of the same class of another Fund. The following
table shows generally permitted exchanges from one Fund to another Fund (exceptions listed below under “Exchanges Not Permitted”):
|
Exchange
From |
Exchange
To |
|
Invesco
Cash Reserve Shares |
Class
A, C, R, Investor Class |
|
| |
|
Class
A |
Class
A, Investor Class, Invesco Cash Reserve Shares* |
|
| |
|
Class
A2 |
Class
A, Investor Class, Invesco Cash Reserve Shares |
|
| |
|
Class
AX |
Class
A, AX, Investor Class, Invesco Cash Reserve Shares |
|
| |
|
Investor
Class |
Class
A, Investor Class |
|
| |
|
Class
P |
Class
A, Invesco Cash Reserve Shares |
|
| |
|
Class
S |
Class
A, S, Invesco Cash Reserve Shares |
|
| |
|
Class
C |
Class
C* |
|
| |
|
Class
CX |
Class
C, CX |
|
| |
|
Class
R |
Class
R* |
|
| |
|
Class
R5 |
Class
R5 |
|
| |
|
Class
R6 |
Class
R6 |
|
| |
|
Class
Y |
Class
Y* |
|
|
|
|
* You
may exchange Class Y shares of Invesco U.S. Government Money Portfolio for Class A, C
or
R shares of any other Fund as long as you are otherwise eligible for such share class. If you
exchange
Class Y shares of Invesco U.S. Government Money Portfolio for Class A, C or R shares
of
any other Fund, you may exchange those Class A, C or R shares back into Class Y shares of
Invesco
U.S. Government Money Portfolio, but not Class Y shares of any other Fund. | |
Exchanges
into Invesco Senior Loan Fund
Invesco
Senior Loan Fund is a closed-end interval fund that continuously offers its shares pursuant to the terms and conditions of its prospectus.
The Adviser is the investment adviser for the Invesco Senior Loan Fund. As with the Invesco Funds, you generally may exchange your shares
of Class A (Invesco Cash Reserve Shares of Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio) or Class
C of any Invesco Fund for shares of Class A or Class C, respectively, of Invesco Senior Loan Fund. Please refer to the prospectus for
the Invesco Senior Loan Fund for more information, including limitations on exchanges out of Invesco Senior Loan Fund.
Exchanges
Not Permitted
The
following exchanges are not permitted:
◾
Investor
Class shares cannot be exchanged for Class A shares of any Fund which offers Investor Class shares.
◾
Class A2
shares of Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund cannot be exchanged for Class A shares
of those Funds.
◾
Invesco
Cash Reserve Shares cannot be exchanged for Class C or R shares if the shares being exchanged were acquired by exchange from Class A
shares of any Fund.
◾
All
existing systematic exchanges and reallocations will cease and these options will no longer be available on all 403(b) prototype plans.
◾
Class
A, C or R shares of a Fund acquired by exchange of Class Y shares of Invesco U.S. Government Money Portfolio cannot be exchanged for Class
Y shares of any Fund, except Class Y shares of Invesco U.S. Government Money Portfolio.
Exchange
Conditions
Shares
must have been held for at least one day prior to the exchange with the exception of dividends and distributions that are reinvested.
Under
unusual market conditions, a Fund may delay the exchange of shares
for up to five business days if it determines that it would be materially disadvantaged by the immediate transfer of exchange proceeds.
The exchange privilege is not an option or right to purchase shares. Any of the participating Funds or the distributor may modify or terminate
this privilege at any time.
Initial
Sales Charges, CDSCs and 12b-1 Fees Applicable to Exchanges
You
may be required to pay an initial sales charge when exchanging from a Fund with a lower initial sales charge than the one into which you
are exchanging. If you exchange into shares that are subject to a CDSC, the Funds’ transfer agent will begin the holding period
for purposes of calculating the CDSC on the date you made your initial purchase.
In
addition, as a result of differences in the forms of distribution plans among
the Funds, certain exchanges of Class A shares, Class C shares, and Class R shares of a Fund for the same class of shares of another Fund
may result in investors paying a higher or a lower 12b-1 fee on the Fund being exchanged into. Please refer to the prospectus fee table
and financial highlights table and the SAI for more information on the fees and expenses, including applicable 12b-1 fees, of the Fund
you wish to acquire.
Share
Class Conversions
Shares
of one class of a Fund may be converted into shares of another class of the same Fund, provided that you are eligible to buy that share
class. Investors who hold Fund shares through a financial intermediary that does not have an agreement to make certain share classes of
the Funds available or that cannot systematically support the conversion may not be eligible to convert their shares. Furthermore, your
financial intermediary may have discretion to effect a conversion on your behalf. Consult with your financial intermediary for details.
Any CDSC associated with the converting shares will be assessed immediately prior to the conversion to the new share class. The conversion
of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes and no gain
or loss will be reported on the transaction. See the applicable prospectus for share class information.
Fees
and expenses differ between share classes. You should read the prospectus
for the share class into which you are seeking to convert your shares prior to the conversion.
Automatic
Conversion of Class C and Class CX Shares
Class
C and Class CX shares held for eight years after purchase are eligible for automatic conversion into Class A and Class AX shares of the
same Fund, respectively, except that for the Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio, the Funds’
Class C and/or Class CX shares would be eligible to automatically convert into the Fund’s Invesco Cash Reserve Share Class and all
existing Class C shares of Invesco Short Term Municipal Fund will automatically convert to Class A shares of that Fund at the end of June
2022 (the Conversion Feature). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month
following the eighth anniversary after a purchase of Class C or Class CX shares (the Conversion Date). The first conversion of Class C
and Class CX shares to Class A and Class AX shares under this policy would occur at the end of December 2020 for all Class C and Class
CX shares that were held for more than eight years as of November 30, 2020.
Automatic
conversions pursuant to the Conversion Feature will be on the basis
of the NAV per share, without the imposition of any sales charge (including a CDSC), fee or other charge. All such automatic conversions
of Class C and Class CX shares will constitute tax-free exchanges for federal income tax purposes.
Class
C and Class CX shares of a Fund acquired through a reinvestment of
dividends and distributions will convert to Class A and Class AX shares, respectively, of the Fund (or Invesco Cash Reserve shares for
Invesco
A-16 The
Invesco Funds
Government
Money Market Fund) on the Conversion Date pro rata with the converting Class C and Class CX shares of that Fund that were not acquired
through reinvestment of dividends and distributions.
Class
C or Class CX shares held through a financial intermediary in existing
omnibus Employer Sponsored Retirement and Benefit Plans and other omnibus accounts may be converted pursuant to the Conversion Feature
by the financial intermediary once it is determined that the Class C or Class CX shares have been held for the required holding period.
It is the financial intermediary’s (and not the Fund’s) responsibility to keep records and to ensure that the shareholder
is credited with the proper holding period as the Fund and its agents may not have transparency into how long a shareholder has held Class
C or Class CX shares for purposes of determining whether such Class C or Class CX shares are eligible to automatically convert pursuant
to the Conversion Feature. In order to determine eligibility for automatic conversion in these circumstances, it is the responsibility
of the shareholder or their financial intermediary to determine that the shareholder is eligible to exercise the Conversion Feature, and
the shareholder or their financial intermediary may be required to maintain records that substantiate the holding period of Class C or
Class CX shares.
In
addition, a financial intermediary may sponsor and/or control programs
or platforms that impose a different conversion schedule or eligibility requirements for conversions of Class C or Class CX shares. In
these cases, Class C and Class CX shares of certain shareholders may not be eligible for automatic conversion pursuant to the Conversion
Feature as described above. The Fund has no responsibility for overseeing, monitoring or implementing a financial intermediary’s
process for determining whether a shareholder meets the required holding period for automatic conversion. Please consult with your financial
intermediary if you have any questions regarding the Conversion Feature.
Share
Class Conversions Not Permitted
The
following share class conversions are not permitted:
◾
Conversions
into Class A from Class A2 of the same Fund.
◾
Conversions
into Class A2, Class AX, Class CX, Class P or Class S of the same Fund.
Rights
Reserved by the Funds
Each
Fund and its agents reserve the right at any time to:
◾
Reject
or cancel all or any part of any purchase or exchange order.
◾
Modify
any terms or conditions related to the purchase, redemption or exchange of shares of any Fund.
◾
Reject
or cancel any request to establish a Systematic Purchase Plan or Systematic Redemption Plan.
◾
Modify
or terminate any sales charge waivers or exceptions.
◾
Suspend,
change or withdraw all or any part of the offering made by this prospectus.
Excessive
Short-Term Trading Activity (Market Timing) Disclosures
While
the Funds provide their shareholders with daily liquidity, their investment programs are designed to serve long-term investors and are
not designed to accommodate excessive short-term trading activity in violation of our policies described below. Excessive short-term trading
activity in the Funds’ shares (i.e., a purchase of Fund shares followed shortly thereafter by a redemption of such shares, or vice
versa) may hurt the long-term performance of certain Funds by requiring them to maintain an excessive amount of cash or to liquidate portfolio
holdings at a disadvantageous time, thus interfering with the efficient management of such Funds by causing them to incur increased brokerage
and administrative costs. Where excessive short-term trading activity seeks to take advantage of arbitrage opportunities from stale prices
for portfolio securities, the value of Fund shares held by long-term investors may be diluted. The Board has adopted policies and procedures
designed to discourage excessive or short-term trading of Fund shares for all Funds except the money market funds, Invesco Conservative
Income Fund, and Invesco Short Term Municipal Fund. However, there is the risk that these Funds’ policies and procedures will prove
ineffective in whole or in part to detect or prevent excessive or
short-term
trading. These Funds may alter their policies at any time without prior notice to shareholders if the Adviser believes the change would
be in the best interests of long-term shareholders.
Invesco
and certain of its corporate affiliates (Invesco and such affiliates,
collectively, the Invesco Affiliates) currently use the following tools designed to discourage excessive short-term trading in the retail
Funds:
◾
Trade
activity monitoring.
◾
Discretion
to reject orders.
◾
Purchase
blocking.
◾
The
use of fair value pricing consistent with the valuation policy approved by the Board and related procedures.
Each
of these tools is described in more detail below. Although these tools
are designed to discourage excessive short-term trading, you should understand that none of these tools alone nor all of them taken together
eliminate the possibility that excessive short-term trading activity in the Funds will occur. Moreover, each of these tools involves judgments
that are inherently subjective. Invesco Affiliates seek to make these judgments to the best of their abilities in a manner that they believe
is consistent with long-term shareholder interests.
Money
Market Funds. The Boards of Invesco Government Money Market Fund,
Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio (the money market
funds) have not adopted any policies and procedures that would limit frequent purchases and redemptions of such Funds’ shares. The
Boards of the money market funds considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal. Nonetheless, to the extent that a money market fund must maintain additional cash and/or
securities with short-term durations in greater amounts than may otherwise be required or borrow to honor redemption requests, the money
market fund’s yield could be negatively impacted.
The
Boards of the money market funds do not believe that it is appropriate
to adopt any such policies and procedures for the money market funds for the following reasons:
◾
The
money market funds are offered to investors as cash management vehicles; therefore, investors should be able to purchase and redeem shares
regularly and frequently.
◾
One
of the advantages of a money market fund as compared to other investment options is liquidity. Any policy that diminishes the liquidity
of the money market funds will be detrimental to the continuing operations of such Funds.
◾
With
respect to the money market funds maintaining a constant net asset value, the money market funds’ portfolio securities are valued
on the basis of amortized cost, and such Funds seek to maintain a constant net asset value. As a result, the money market funds are not
subject to price arbitrage opportunities.
◾
With
respect to the money market funds maintaining a constant net asset value, because such Funds seek to maintain a constant net asset value,
investors are more likely to expect to receive the amount they originally invested in the Funds upon redemption than other mutual funds.
Invesco
Conservative Income Fund. The Board of Invesco Conservative Income
Fund has not adopted any policies and procedures that would limit frequent purchases and redemptions of such Fund’s shares. The
Board of Invesco Conservative Income Fund considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal especially in light of the reasons for not having such a policy as described below. Nonetheless,
to the extent that the Fund must maintain additional cash and/or securities with short-term durations in greater amounts than may otherwise
be required or borrow to honor redemption requests, the Fund’s yield could be negatively impacted.
The
Board of the Invesco Conservative Income Fund does not believe that
it is appropriate to adopt any such policies and procedures for the Fund for the following reasons:
◾
The
Fund is offered to investors as a cash management vehicle; investors perceive an investment in the Fund as an alternative to cash and
must be able to purchase and redeem shares regularly and frequently.
A-17 The
Invesco Funds
◾
One
of the advantages of the Fund as compared to other investment options is liquidity. Any policy that diminishes the liquidity of the Fund
will be detrimental to the continuing operations of the Fund.
Excessive
trading activity in the Fund’s shares may cause the Fund to incur
increased brokerage and administrative costs.
The
Fund and its agent reserve the right at any time to reject or cancel any
part of any purchase order. This could occur if the Fund determines that such purchase may disrupt the Fund’s operation or performance.
Invesco
Short Term Municipal Fund. The Board of Invesco Short Term Municipal
Fund has not adopted any policies and procedures that would limit frequent purchases and redemptions of such Fund’s shares. The
Board of Invesco Short Term Municipal Fund considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal, especially in light of the reasons for not having such a policy as described below. Nonetheless,
to the extent that the Fund must maintain additional cash and/or securities with short-term durations in greater amounts than may otherwise
be required or borrow to honor redemption requests, the Fund’s yield could be negatively impacted.
The
Board of Invesco Short Term Municipal Fund does not believe that it is
appropriate to adopt any such policies and procedures for the Fund for the following reasons:
◾
The
Fund is designed to address the needs of retail investors who seek liquidity in their investment and seek the ability to purchase and
redeem shares at any time.
◾
Any
policy that diminishes the ability of shareholders to purchase and redeem shares of the Fund will be detrimental to the continuing operations
of the Fund.
◾
The
Fund generally invests in short duration liquid investment grade municipal securities.
Excessive
trading activity in the Fund’s shares may cause the Fund to incur
increased brokerage and administrative costs. The Fund and its agent reserve the right at any time to reject or cancel any part of any
purchase order. This could occur if the Fund determines that such purchase may disrupt the Fund’s operation or performance.
Trade
Activity Monitoring
Invesco
Affiliates monitor selected trades on a daily basis in an effort to detect excessive short-term trading activities. If, as a result of
this monitoring, Invesco Affiliates believe that a shareholder has engaged in excessive short-term trading, they will seek to act in a
manner that they believe is consistent with the best interests of long-term investors, which may include taking steps such as (i) asking
the shareholder to take action to stop such activities or (ii) refusing to process future purchases or exchanges related to such activities
in the shareholder’s accounts other than exchanges into a money market fund. Invesco Affiliates will use reasonable efforts to apply
the Funds’ policies uniformly given the practical limitations described above.
The
ability of Invesco Affiliates to monitor trades that are made through accounts
that are maintained by intermediaries (rather than the Funds’ transfer agent) and through conduit investment vehicles may be limited
or non-existent.
Discretion
to Reject Orders
If
a Fund or an Invesco Affiliate determines, in its sole discretion, that your short-term trading activity is excessive, the Fund may, in
its sole discretion, reject any additional purchase and exchange orders. This discretion may be exercised with respect to purchase or
exchange orders placed directly with the Funds’ transfer agent or through a financial intermediary.
Purchase
Blocking Policy
The
Funds (except those listed below) have adopted a policy under which any shareholder redeeming shares having a value of $50,000 or more
from a Fund on any trading day will be precluded from investing in that Fund for 30 calendar days after the redemption transaction date.
The policy applies to redemptions and purchases that are part of exchange transactions. Under the purchase blocking policy, certain purchases
will not be prevented and certain redemptions will not trigger a purchase block, such as: purchases
and redemptions
of shares having a value of less than $50,000; systematic purchase, redemption and exchange account options; transfers of shares within
the same Fund; non-discretionary rebalancing in fund-of-funds; asset allocation features; fee-based accounts; account maintenance fees;
small balance account fees; plan-level omnibus Retirement and Benefit Plans; death and disability and hardship distributions; loan transactions;
transfers of assets; Retirement and Benefit Plan rollovers; IRA conversions and re-characterizations; and mandatory distributions from
Retirement and Benefit Plans.
The
Funds reserve the right to modify any of the parameters (including those
not listed above) of the purchase blocking policy at any time. Further, the purchase blocking policy may be waived with respect to specific
shareholder accounts in those instances where the Adviser determines that its surveillance procedures are adequate to detect frequent
trading in Fund shares.
If
an account is maintained by a financial intermediary whose systems are
unable to apply Invesco’s purchase blocking policy, the Adviser will accept the establishment of an account only if the Adviser
believes the policies and procedures are reasonably designed to enforce the frequent trading policies of the Funds. You should refer to
disclosures provided by the financial intermediary with which you have an account to determine the specific trading restrictions that
apply to you. If the Adviser identifies any activity that may constitute frequent trading, it reserves the right to contact the intermediary
and request that the intermediary either provide information regarding an account owner’s transactions or restrict the account owner’s
trading. There is no guarantee that all instances of frequent trading in Fund shares will be prevented.
The
purchase blocking policy does not apply to Invesco Conservative Income
Fund, Invesco Short Term Municipal Fund, Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government
Money Portfolio and Invesco U.S. Government Money Portfolio.
Pricing
of Shares
Determination
of Net Asset Value
The
price of each Fund’s shares is the Fund’s net asset value per share. The Funds (except Invesco Government Money Market Fund,
Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio) value portfolio
securities for which market quotations are readily available at market value. Securities and other assets quoted in foreign currencies
are valued in U.S. dollars based on the prevailing exchange rates on that day. The Funds (except Invesco Government Money Market Fund,
Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio) value securities
and assets for which market quotations are unavailable at their “fair value,” which is described below. Invesco Government
Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio
value portfolio securities on the basis of amortized cost, which approximates market value. This method of valuation is designed to enable
a Fund to price its shares at $1.00 per share. The Funds cannot guarantee their net asset value will always remain at $1.00 per share.
Securities and other assets quoted in foreign currencies are valued in U.S. dollars based on the prevailing exchange rates on that day.
The Fund values securities and assets for which market quotations are unavailable at their “fair value,” which is described
below.
Even
when market quotations are available, they may be stale or not
representative of market value in the Adviser’s judgment (“unreliable”)
because the security is not traded frequently, trading on the security
ceased before the close of the trading market or issuer specific events occurred after the security ceased trading or because of the passage
of time between the close of the market on which the security trades and the close of the NYSE and when the Fund calculates its net asset
value. Issuer specific events may cause the last market quotation to be unreliable. Such events may include a merger or insolvency, events
that affect a geographical area or an industry segment, such as political events or natural disasters, or market events, such as a significant
movement in the U.S. market. Where
A-18 The
Invesco Funds
the Adviser
determines that the closing price of the security is stale or unreliable, the Adviser will value the security at its fair value.
A
fair value price is an estimated price that requires consideration of all appropriate factors, including indications of fair value available
from pricing services. Fair value pricing involves judgment and a Fund that uses fair value methodologies may value securities higher
or lower than another Fund using market quotations or its own fair value methodologies to price the same securities. Investors who purchase
or redeem Fund shares on days when the Fund is holding fair-valued securities may receive a greater or lesser number of shares, or higher
or lower redemption proceeds, than they would have received if the Fund had not fair-valued the security or had used a different methodology.
The
Board has designated the Adviser to perform the daily determination
of fair value prices in accordance with Board approved
policies and related procedures,
subject to the Board’s oversight. Fair value pricing methods
and pricing services can change from time to time.
The
intended effect of applying fair value pricing is to compute an NAV that
accurately reflects the value of a Fund’s portfolio at the time that the NAV is calculated. An additional intended effect is to
discourage those seeking to take advantage of arbitrage opportunities resulting from “stale” prices and to mitigate the dilutive
impact of any such arbitrage. However, the application of fair value pricing cannot eliminate the possibility that arbitrage opportunities
will exist.
Specific
types of securities are valued as follows:
Senior
Secured Floating Rate Loans and Senior Secured Floating Rate Debt
Securities. Senior secured floating rate loans and senior secured
floating rate debt securities are fair valued using evaluated quotes provided by an independent pricing service. Evaluated quotes provided
by the pricing service may reflect appropriate factors such as market quotes, ratings, tranche type, industry, company performance, spread,
individual trading characteristics, institution-size trading in similar groups of securities and other market data.
Domestic
Exchange Traded Equity Securities. Market quotations are generally
available and reliable for domestic exchange traded equity securities. If market quotations are not available or are unreliable, the Adviser
will value the security at fair value in good faith using the valuation policy approved by the Board and related procedures.
Foreign
Securities. If market quotations are available and reliable for
foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign
securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular
security and the close of the customary trading session on the NYSE events occur that are significant and may make the closing price unreliable,
the Fund may fair value the security. If an issuer specific event has occurred that the Adviser determines, in its judgment, is likely
to have affected the closing price of a foreign security, it will price the security at fair value. The Adviser also relies on a screening
process from a pricing vendor to indicate the degree of certainty, based on historical data, that the closing price in the principal market
where a foreign security trades is not the current market value as of the close of the NYSE. For foreign securities where the Adviser
believes, at the approved degree of certainty, that the price is not reflective of current market value, the Adviser will use the indication
of fair value from the pricing service to determine the fair value of the security. The pricing vendor, pricing methodology or degree
of certainty may change from time to time.
Fund
securities primarily traded on foreign markets may trade on days that
are not business days of the Fund. Because the net asset value of Fund shares is determined only on business days of the Fund, the value
of the portfolio securities of a Fund that invests in foreign securities may change on days when you will not be able to purchase or redeem
shares of the Fund.
Fixed
Income Securities. Fixed income securities, such as government,
corporate, asset-backed and municipal bonds, convertible securities, including high yield or junk bonds, and loans, generally are valued
on the basis of prices provided by independent pricing services. Prices provided by the pricing services may be determined without exclusive
reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in
similar
groups of securities, developments related to special securities, dividend rate, maturity and other market data. Pricing services generally
value fixed income securities assuming orderly transactions of institutional round lot size, but a Fund may hold or transact in the same
securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Prices received from pricing
services are fair value prices. In addition, if the price provided by the pricing service and independent quoted prices are unreliable,
the Adviser will fair value the security using the valuation policy approved by the Board and related procedures.
Short-term
Securities. Invesco Government Money Market Fund, Invesco Premier
Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio value all their securities at amortized
cost. Invesco Limited Term Municipal Income Fund values variable rate securities that have an unconditional demand or put feature exercisable
within seven days or less at par, which reflects the market value of such securities.
Futures
and Options. Futures contracts are valued at the final settlement
price set by the exchange on which they are principally traded. U.S.
exchange-traded options are valued at the mean between the last
bid and asked prices from the exchange on which they principally trade. Non-U.S. exchange-traded options are valued at the final settlement
price set by
the exchange on which they trade. Options not listed on an exchange and swaps generally are valued using pricing provided from independent
pricing services.
Swap
Agreements. Swap Agreements are fair valued using an evaluated
quote provided by an independent pricing service. Evaluated quotes provided by the pricing service are based on a model that may include
end of day net present values, spreads, ratings, industry and company performance.
Open-end
Funds. If a Fund invests in other open-end funds, other than open-end
funds that are exchange traded, the investing Fund will calculate its net asset value using the net asset value of the underlying fund
in which it invests, and the prospectuses for such open-end funds explain the circumstances under which they will use fair value pricing
and the effects of using fair value pricing.
Each
Fund, except for Invesco Government Money Market Fund, Invesco Premier
Portfolio and Invesco Premier U.S. Government Money Portfolio, generally determines the net asset value of its shares on each day the
NYSE is open for trading (a business day) as of approximately 4:00 p.m. Eastern Time (the customary close of regular trading) or earlier
in the case of a scheduled early close. In the event of an unscheduled early close of the NYSE, each Fund, except for Invesco Government
Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio, generally still will determine the net
asset value of its shares as of 4:00 p.m. Eastern Time on that business day. Portfolio securities traded on the NYSE would be valued at
their closing prices unless the Adviser determines
that a “fair value” adjustment is appropriate due to subsequent events occurring after an early close consistent with the
valuation policy approved
by the Board and related procedures. Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government
Money Portfolio will generally determine the net asset value of their shares at 5:30 p.m. Eastern Time on each business day. A business
day for Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio is any day
that (1) both the Federal Reserve Bank of New York and a Fund’s custodian are open for business and (2) the primary trading markets
for the Fund’s portfolio instruments are open and the Fund’s management believes there is an adequate market to meet purchase
and redemption requests. Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money
Portfolio are authorized not to open for trading on a day that is otherwise a business day if the Securities Industry and Financial Markets
Association (SIFMA) recommends that government securities dealers not open for trading; any such day will not be considered a business
day. Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio, Invesco
U.S. Government Money Portfolio also may close early on a business day if SIFMA recommends that government securities dealers close early.
If
A-19 The
Invesco Funds
Invesco
Government Money Market Fund, Invesco Premier Portfolio or Invesco Premier U.S. Government Money Portfolio uses its discretion to
close early on a business day, the Fund will calculate its net asset value as of the time of such closing Invesco Premier Portfolio and
Invesco U.S. Government Money Portfolio are authorized to not open for trading on a day that is otherwise a business day if the NYSE recommends
that government securities dealers not open for trading; any such day will not be considered a business day. Invesco Premier Portfolio
also may close early on a business day if the NYSE recommends that government securities dealers close early.
For
financial reporting purposes and shareholder transactions on the last
day of the fiscal quarter, transactions are normally accounted for on a trade date basis. For purposes of executing shareholder transactions
in the normal course of business (other than shareholder transactions at a fiscal period-end), each Fund’s portfolio securities
transactions are recorded no later than the first business day following the trade date.
The
Invesco Advantage International Fund, Invesco Balanced-Risk Allocation
Fund, Invesco Balanced-Risk Commodity Strategy Fund, Invesco Fundamental Alternatives Fund, Invesco Global Allocation Fund, Invesco Global
Strategic Income Fund, Invesco Gold & Special Minerals Fund, Invesco High Yield Bond Factor Fund, Invesco International Bond Fund
and Invesco Macro Allocation Strategy Fund may each invest up to 25% of their total assets in shares of their respective subsidiaries
(the Subsidiaries). The Subsidiaries offer to redeem all or a portion of their shares at the current net asset value per share every regular
business day. The value of shares of the Subsidiaries will fluctuate with the value of the respective Subsidiary’s portfolio investments.
The Subsidiaries price their portfolio investments pursuant to the same pricing and valuation methodologies and procedures used by the
Funds, which require, among other things, that each of the Subsidiaries’ portfolio investments be marked-to-market (that is, the
value on each of the Subsidiaries’ books changes) each business day to reflect changes in the market value of the investment.
Each
Fund’s current net asset value per share is made available on the Funds’
website at www.invesco.com/us.
Fair
Value Pricing
Securities
owned by a Fund (except Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio
and Invesco U.S. Government Money Portfolio) are to be valued at current market value if market quotations are readily available. All
other securities and assets of a Fund for which market quotations are not readily available are to be valued at fair value determined
in good faith consistent with the valuation policy approved by the Board and related procedures. An effect of fair value pricing may be
to reduce the ability of frequent traders to take advantage of arbitrage opportunities resulting from potentially “stale”
prices of portfolio holdings. However, it cannot eliminate the possibility of frequent trading.
The
price a Fund could receive upon the sale of any investment may differ
from the Adviser's valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair
valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions
(i.e., publicly traded company multiples, growth rate, time to exit), to determine a methodology that will result in a valuation that
the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value
from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and
the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the
investment.
Timing
of Orders
Each
Fund prices purchase, exchange and redemption orders at the net asset value next calculated by the Fund after the Fund’s transfer
agent, authorized agent or designee receives an order in good order for the Fund. Purchase, exchange and redemption orders must be received
prior to the close of business on a business day, as defined by the applicable Fund, to receive that day’s net asset value. Any
applicable sales charges are applied at the time an order is processed.
Currently,
certain financial intermediaries may serve as agents for the Funds
and accept orders on their behalf. Where a financial intermediary serves as agent, the order is priced at the Fund’s net asset value
next calculated after it is accepted by the financial intermediary. In such cases, if requested by a Fund, the financial intermediary
is responsible for providing information with regard to the time that such order for purchase, redemption or exchange was received. Orders
submitted through a financial intermediary that has not received authorization to accept orders on a Fund’s behalf are priced at
the Fund’s net asset value next calculated by the Fund after it receives the order from the financial intermediary and accepts it,
which may not occur on the day submitted to the financial intermediary.
Additional
Information Regarding Deferred Tax Liability (only applicable to the Invesco Steelpath Funds)
In
calculating the Fund’s daily NAV, the Fund will, among other things, account for its deferred tax liability and/or asset balances.
As a result, any deferred tax liability and/or asset is reflected in the Fund’s daily NAV.
The
Fund will accrue a deferred income tax liability balance, at the U.S. federal
corporate income tax rate plus an estimated state and local income tax rate for its future tax liability associated with MLP distributions
considered to be a return of capital, as well as for its future tax liability associated with the capital appreciation of its investments.
The Fund’s current and deferred tax liability, if any, will depend upon the Fund’s net investment gains and losses and realized
and unrealized gains and losses on investments and therefore may vary greatly from year to year depending on the nature of the Fund’s
investments, the performance of those investments and general market conditions. Any deferred tax liability balance will reduce the Fund’s
NAV. Upon the Fund’s sale of an MLP security, the Fund may be liable for previously deferred taxes.
The
Fund will accrue, in accordance with generally accepted accounting principles,
a deferred tax asset balance, which reflects an estimate of the Fund’s future tax benefit associated with net operating losses and
unrealized losses. Any deferred tax asset balance will increase the Fund’s NAV. To the extent the Fund has a deferred tax asset
balance, the Fund will assess, in accordance with generally accepted accounting principles, whether a valuation allowance, which would
offset the value of some or all of the Fund’s deferred tax asset balance, is required. Pursuant to Financial Accounting Standards
Board Accounting Standards Codification 740 (FASB ASC 740), the Fund will assess a valuation allowance to reduce some or all of the deferred
tax asset balance if, based on the weight of all available evidence, both negative and positive, it is more likely than not that some
or all of the deferred tax asset will not be realized. The Fund will use judgment in considering the relative impact of negative and positive
evidence. The weight given to the potential effect of negative and positive evidence will be commensurate with the extent to which such
evidence can be objectively verified. The Fund’s assessment considers, among other matters, the nature, frequency and severity of
current and cumulative losses, the duration of statutory carry forward periods and the associated risk that operating loss and capital
loss carry forwards may be limited or expire unused, and unrealized gains and losses on investments. Consideration is also given to market
cycles, the severity and duration of historical deferred tax assets, the impact of redemptions, and the level of MLP distributions. The
Fund will assess whether a valuation allowance is required to offset some or all of any deferred tax asset in connection with the calculation
of the Fund’s NAV per share each day; however, to the extent the final valuation allowance differs from the estimates the Fund used
in calculating the Fund’s daily NAV, the application of such final valuation allowance could have a material impact on the Fund’s
NAV.
The
Fund’s deferred tax asset and/or liability balances are estimated using
estimates of effective tax rates expected to apply to taxable income in the years such balances are realized. The Fund will rely to some
extent on information provided by MLPs in determining the extent to which distributions received from MLPs constitute a return of capital,
which may not be provided to the Fund on a timely basis, to estimate the Fund’s deferred tax liability and/or asset balances for
purposes of financial statement reporting and determining its NAV. If such information is not
A-20 The
Invesco Funds
received
from such MLPs on a timely basis, the Fund will estimate the extent to which distributions received from MLPs constitute a return of capital
based on average historical tax characterization of distributions made by MLPs. The Fund’s estimates regarding its deferred tax
liability and/or asset balances are made in good faith; however, the daily estimate of the Fund’s deferred tax liability and/or
asset balances used to calculate the Fund’s NAV could vary dramatically from the Fund’s actual tax liability. Actual income
tax expense, if any, will be incurred over many years, depending on if and when investment gains and losses are realized, the then-current
basis of the Fund’s assets and other factors. As a result, the determination of the Fund’s actual tax liability may have a
material impact on the Fund’s NAV. The Fund’s daily NAV calculation will be based on then current estimates and assumptions
regarding the Fund’s deferred tax liability and/or asset balances and any applicable valuation allowance, based on all information
available to the Fund at such time. From time to time, the Fund may modify its estimates or assumptions regarding its deferred tax liability
and/or asset balances and any applicable valuation allowance as new information becomes available. Modifications of the Fund’s estimates
or assumptions regarding its deferred tax liability and/or asset balances and any applicable valuation allowance, changes in generally
accepted accounting principles or related guidance or interpretations thereof, limitations imposed on net operating losses (if any) and
changes in applicable tax law could result in increases or decreases in the Fund’s NAV per share, which could be material.
Taxes
(applicable to all Funds except for the Invesco SteelPath Funds and Invesco Master Loan Fund)
A
Fund intends to qualify each year as a regulated investment company (RIC) and, as such, is not subject to entity-level tax on the income
and gain it distributes to shareholders. If you are a taxable investor, dividends and distributions you receive from a Fund generally
are taxable to you whether you reinvest distributions in additional Fund shares or take them in cash. Every year, you will be sent information
showing the amount of dividends and distributions you received from a Fund during the prior calendar year. In addition, investors in taxable
accounts should be aware of the following basic tax points as supplemented below where relevant:
Fund Tax
Basics
◾
A
Fund earns income generally in the form of dividends or interest on its investments. This income, less expenses incurred in the operation
of a Fund, constitutes the Fund’s net investment income from which dividends may be paid to you. If you are a taxable investor,
distributions of net investment income generally are taxable to you as ordinary income.
◾
Distributions
of net short-term capital gains are taxable to you as ordinary income. A Fund with a high portfolio turnover rate (a measure of how frequently
assets within a Fund are bought and sold) is more likely to generate short-term capital gains than a Fund with a low portfolio turnover
rate.
◾
Distributions
of net long-term capital gains are taxable to you as long-term capital gains no matter how long you have owned your Fund shares.
◾
A
portion of income dividends paid by a Fund to you may be reported as qualified dividend income eligible for taxation by individual shareholders
at long-term capital gain rates, provided certain holding period requirements are met. These reduced rates generally are available for
dividends derived from a Fund’s investment in stocks of domestic corporations and qualified foreign corporations. In the case of
a Fund that invests primarily in debt securities, either none or only a nominal portion of the dividends paid by the Fund will be eligible
for taxation at these reduced rates.
◾
The
use of derivatives by a Fund may cause the Fund to realize higher amounts of ordinary income or short-term capital gain, distributions
from which are taxable to individual shareholders at ordinary income tax rates rather than at the more favorable tax rates for long-term
capital gain.
◾
Distributions
declared to shareholders with a record date in October, November or December—if paid to you by the end of January—are taxable
for federal income tax purposes as if received in December.
◾
Any
long-term or short-term capital gains realized on the sale or redemption of your Fund shares will be subject to federal income tax. For
tax
purposes an exchange of your shares for shares of another Fund is the same as a sale. An exchange occurs when the purchase of shares of
a Fund is made using the proceeds from a redemption of shares of another Fund and is effectuated on the same day as the redemption. Your
gain or loss is calculated by subtracting from the gross proceeds your cost basis. Gross proceeds and, for shares acquired on or after
January 1, 2012 and disposed of after that date, cost basis will be reported to you and the Internal Revenue Service (IRS). Cost
basis will be calculated using the Fund’s default method of average cost, unless you instruct the Fund to use a different calculation
method. As a service to you, the Fund will continue to provide to you (but not the IRS) cost basis information for shares acquired before
2012, when available, using the average cost method. Shareholders should carefully review the cost basis information provided by a Fund
and make any additional basis, holding period or other adjustments that are required when reporting these amounts on their federal income
tax returns. If you hold your Fund shares through a broker (or other nominee), please contact that broker (nominee) with respect to reporting
of cost basis and available elections for your account. For more information about the cost basis methods offered by Invesco, please refer
to the Tax Center located under the Account Access & Forms menu of our website at www.Invesco.com/us.
◾
The
conversion of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes
and no gain or loss will be reported on the transaction. This is true whether the conversion occurs automatically pursuant to the terms
of the class or is initiated by the shareholder.
◾
At
the time you purchase your Fund shares, the Fund’s net asset value may reflect undistributed income or undistributed capital gains.
A subsequent distribution to you of such amounts, although constituting a return of your investment, would be taxable. Buying shares in
a Fund just before it declares an income dividend or capital gains distribution is sometimes known as “buying a dividend.”
In addition, a Fund’s net asset value may, at any time, reflect net unrealized appreciation, which may result in future taxable
distributions to you.
◾
By
law, if you do not provide a Fund with your proper taxpayer identification number and certain required certifications, you may be subject
to backup withholding on any distributions of income, capital gains, or proceeds from the sale of your shares. A Fund also must withhold
if the IRS instructs it to do so. When withholding is required, the amount will be 24% of any distributions or proceeds paid.
◾
An
additional 3.8% Medicare tax is imposed on certain net investment income (including ordinary dividends and capital gain distributions
received from a Fund and net gains from redemptions or other taxable dispositions of Fund shares) of U.S. individuals, estates and trusts
to the extent that such person’s “modified adjusted gross income” (in the case of an individual) or “adjusted
gross income” (in the case of an estate or trust) exceeds a threshold amount. This Medicare tax, if applicable, is reported by you
on, and paid with, your federal income tax return.
◾
You
will not be required to include the portion of dividends paid by a Fund derived from interest on U.S. government obligations in your
gross income for purposes of personal and, in some cases, corporate income taxes in many state and local tax jurisdictions. The percentage
of dividends that constitutes dividends derived from interest on federal obligations will be determined annually. This percentage may
differ from the actual percentage of interest received by the Fund on federal obligations for the particular days on which you hold shares.
◾
Fund
distributions and gains from sale or exchange of your Fund shares generally are subject to state and local income taxes.
◾
If
a Fund qualifies to pass through to you the tax benefits from foreign taxes it pays on its investments, and elects to do so, then any
foreign taxes it pays on these investments may be passed through to you. You will then be required to include your pro-rata share of these
taxes in gross income, even though not actually received by you, and will be entitled either to deduct your share of these taxes in computing
your taxable income, or to claim a foreign tax credit for these taxes against your U.S. federal income tax.
A-21 The
Invesco Funds
◾
Foreign
investors should be aware that U.S. withholding, special certification requirements to avoid U.S. backup withholding and claim
any treaty benefits, and estate taxes may apply to an investment in a Fund.
◾
Under
the Foreign Account Tax Compliance Act (FATCA), a Fund will be required to withhold a 30% tax on income dividends made by the Fund to
certain foreign entities, referred to as foreign financial institutions or non-financial foreign entities, that fail to comply (or be
deemed compliant) with extensive reporting and withholding requirements designed to inform the U.S. Department of the Treasury of U.S.-owned
foreign investment accounts. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide otherwise (which
is not expected). A Fund may disclose the information that it receives from its shareholders to the IRS, non-U.S. taxing authorities or
other parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that is a shareholder
of a Fund fails to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.
◾
If
a Fund invests in an underlying fund taxed as a RIC, please see any relevant section below for more information regarding the Fund’s
investment in such underlying fund.
The
above discussion concerning the taxability of Fund dividends and distributions and of redemptions and exchanges of Fund shares is inapplicable
to investors holding shares through a tax-advantaged arrangement, such as Retirement and Benefit Plans or 529 college savings plans. Such
investors should refer to the applicable account documents/program description for that arrangement for more information regarding the
tax consequences of holding and redeeming Fund shares.
Funds
Investing in Municipal Securities
◾
You
will not be required to include the “exempt-interest” portion of dividends paid by the Fund in either your gross income for
federal income tax purposes or your net investment income subject to the additional 3.8% Medicare tax. You will be required to report
the receipt of exempt-interest dividends and other tax-exempt interest on your federal income tax returns. The percentage of dividends
that constitutes exempt-interest dividends will be determined annually. This percentage may differ from the actual percentage of exempt
interest received by the Fund for the particular days in which you hold shares.
◾
A
Fund may invest in municipal securities the interest on which constitutes an item of tax preference and could give rise to a federal alternative
minimum tax liability for noncorporate shareholders, unless such municipal securities were issued in 2009 or 2010.
◾
Exempt-interest
dividends from interest earned on municipal securities of a state, or its political subdivisions, generally are exempt from that state’s
personal income tax. Most states, however, do not grant tax-free treatment to interest from municipal securities of other states.
◾
A
Fund may invest a portion of its assets in securities that pay income that is not tax-exempt. To the extent that dividends paid by a Fund
are derived from taxable investments or realized capital gains, they will be taxable as ordinary income or long-term capital gains.
◾
A
Fund may distribute to you any market discount and net short-term capital gains from the sale of its portfolio securities. If you are
a taxable investor, Fund distributions from this income are taxable to you as ordinary income, and generally will neither qualify for
the dividends-received deduction in the case of corporate shareholders nor as qualified dividend income subject to reduced rates of taxation
in the case of noncorporate shareholders.
◾
Exempt-interest
dividends from a Fund are taken into account when determining the taxable portion of your social security or railroad retirement benefits,
may be subject to state and local income taxes, may affect the deductibility of interest on certain indebtedness, and may have other collateral
federal income tax consequences for you.
◾
There
are risks that: (a) a security issued as tax-exempt may be reclassified by the IRS or a state tax authority as taxable and/or (b) future
legislative,
administrative or court actions could adversely impact the qualification of income from a tax-exempt security as tax-free. Such reclassifications
or actions could cause interest from a security to become taxable, possibly retroactively, subjecting you to increased tax liability.
In addition, such reclassifications or actions could cause the value of a security, and therefore, the value of the Fund’s shares,
to decline.
Money
Market Funds
◾
A
Fund does not anticipate realizing any long-term capital gains.
◾
If
a Fund expects to maintain a stable net asset value of $1.00 per share, investors should not have any gain or loss on sale or exchange
of Fund shares (unless the investor incurs a liquidity fee on such sale or exchange). See “Liquidity Fees and Redemption Gates.”
◾
There
is some degree of uncertainty with respect to the tax treatment of liquidity fees received by a Fund, and such tax treatment may be the
subject of future IRS guidance. If a Fund receives liquidity fees, it will consider the appropriate tax treatment of such fees to the
Fund at such time.
◾
Unless
you choose to adopt a simplified “NAV method” of accounting (described below), any capital gain or loss on the sale or exchange
of Fund shares (as noted above) generally will be treated either as short-term if you held your Fund shares for one year or less, or long-term
if you held your Fund shares longer. If you elect to adopt the NAV method of accounting, rather than computing gain or loss on every taxable
disposition of Fund shares as described above, you would determine your gain or loss based on the change in the aggregate value of your
Fund shares during a computation period (such as your taxable year), reduced by your net investment (purchases minus sales) in those shares
during that period. Under the NAV method, any resulting net capital gain or loss would be treated as short-term capital gain or loss.
Funds
Investing in Real Estate Securities
◾
Because
of “noncash” expenses such as property depreciation, the cash flow of a REIT that owns properties will exceed its taxable
income. The REIT, and in turn a Fund, may distribute this excess cash to shareholders. Such a distribution is classified as a return of
capital. Return of capital distributions generally are not taxable to you. Your cost basis in your Fund shares will be decreased by the
amount of any return of capital. Any return of capital distributions in excess of your cost basis will be treated as capital gains.
◾
Dividends
paid to shareholders from the Funds’ investments in U.S. REITs generally will not qualify for taxation at long-term capital gain
rates applicable to qualified dividend income.
◾
The
Fund may derive “excess inclusion income” from certain equity interests in mortgage pooling vehicles either directly or through
an investment in a U.S. REIT. Please see the SAI for a discussion of the risks and special tax consequences to shareholders in the event
the Fund realizes excess inclusion income in excess of certain threshold amounts.
◾
Under
the Tax Cuts and Jobs Act, “qualified REIT dividends” (i.e., ordinary REIT dividends other than capital gain dividends and
portions of REIT dividends designated as qualified dividend income) are treated as eligible for a 20% deduction by noncorporate taxpayers.
The Fund may choose to report the special character of “qualified REIT dividends” to a shareholder, provided both the Fund
and a shareholder meet certain holding period requirements with respect to their shares.
◾
The
Fund’s foreign shareholders should see the SAI for a discussion of the risks and special tax consequences to them from a sale of
a U.S. real property interest by a REIT in which the Fund invests.
Funds
Investing in Partnerships
◾
Taxes,
penalties, and interest associated with an audit of a partnership
are generally required to be assessed and collected at the partnership level. Therefore, an adverse federal income tax audit of a partnership
that a Fund invests in (including MLPs taxed as partnerships) could result in the Fund being required to pay federal income tax. A Fund
may have little input in any audit asserted against a partnership and may be contractually or legally obligated to make payments in regard
to deficiencies asserted without the ability to put forward an independent defense. Accordingly,
A-22 The
Invesco Funds
even
if a partnership in which the Fund invests were to remain classified as a partnership (instead of as a corporation), it could be required
to pay additional taxes, interest and penalties as a result of an audit adjustment, and the Fund, as a direct or indirect partner of such
partnership, could be required to bear the economic burden of those taxes, interest and penalties, which would reduce the value of Fund
shares.
◾
Under
the Tax Cuts and Jobs Act “qualified publicly traded partnership income” is treated as eligible for a 20% deduction by noncorporate
taxpayers. The legislation does not contain a provision permitting a RIC, such as a Fund, to pass the special character of this income
through to its shareholders. It is uncertain whether a future technical corrections bill or regulations issued by the IRS will address
this issue to enable a Fund to pass through the special character of “qualified publicly traded partnership income” to its
shareholders.
◾
Some
amounts received by a Fund from the MLPs in which it invests likely will be treated as returns of capital to such Fund because of accelerated
deductions available to the MLPs. The receipt of returns of capital from the MLPs in which a Fund invests could cause some or all of the
Fund’s distributions to be classified as a return of capital. Return of capital distributions generally are not taxable to you.
Your cost basis in your Fund shares will be decreased by the amount of any return of capital. Any return of capital distributions in excess
of your cost basis will be treated as capital gains.
Funds
Investing in Commodities
◾
The
Funds’ strategies of investing through their respective Subsidiary in derivatives and other financially linked instruments whose
performance is expected to correspond to the commodity markets may cause the Funds to recognize more ordinary income and short-term capital
gains taxable as ordinary income than would be the case if the Funds invested directly in commodities.
◾
The
Funds must meet certain requirements under the Code for favorable tax treatment as a RIC, including asset diversification and income requirements.
The IRS has issued a revenue ruling which holds that income derived from commodity-linked swaps is not qualifying income for purposes
of the Income Requirement. In a subsequent revenue ruling, as well as in a number of follow-on private letter rulings (upon which only
the fund that received the private letter ruling may rely), the IRS provides that income from certain alternative investments which create
commodity exposure, such as certain commodity-linked or structured notes or a corporate subsidiary that invests in commodities, may be
considered qualifying income under the Code. However, the portion of such rulings relating to the treatment of a corporation as a regulated
investment company that require a determination of whether a financial instrument or position is a security under section 2(a)(36) of
the 1940 Act was revoked because of changes in the IRS’s position.
(A financial instrument or position that constitutes a security
under section 2(a)(36) of the 1940 Act generates qualifying income for a corporation taxed as a regulated investment company.) The Funds
intend to treat the income each derives from commodity-linked notes as qualifying income based on an opinion from counsel confirming that
income from such investments should be qualifying income because such commodity-linked notes constitute securities under section 2(a)(36)
of the 1940 Act. Each Subsidiary will be classified for federal income tax purposes as a controlled foreign corporation (CFC) with respect
to the Fund. As such, the Fund will be required to include in its gross income each year amounts earned by the Subsidiary during that
year (“Subpart F” income), whether or not such earnings are distributed by the Subsidiary to the Fund (deemed inclusions).
Treasury Regulations also permit the Fund to treat such deemed inclusions of “Subpart F” income from the Subsidiary as qualifying
income to the Fund, even if the Subsidiary does not make a distribution of such income. Consequently, the Fund and the Subsidiary reserve
the right to rely on deemed inclusions being treated as qualifying income to the Fund consistent with recently released Treasury Regulations.
If, contrary to the opinion of counsel or other guidance issued by the IRS, the IRS were to determine that income from direct investment
in commodity-linked notes is non-qualifying, a Fund might fail to satisfy
the
income requirement. In lieu of disqualification, the Funds are permitted to pay a tax for certain failures to satisfy the asset diversification
or income requirements, which, in general, are limited to those due to reasonable cause and not willful neglect. The Funds intend to limit
their investments in their respective Subsidiary to no more than 25% of the value of each Fund’s total assets in order to satisfy
the asset diversification requirement.
Funds
Investing in Foreign Currencies
◾
The
Funds may realize gains from the sale or other disposition of foreign currencies (including but not limited to gains from options, futures
or forward contracts) derived from investing in securities or foreign currencies. The U.S. Treasury Department is authorized to issue
regulations on whether the realization of such foreign currency gains is qualified income for the Funds. If such regulations are issued,
each Fund may not qualify as a RIC and/or the Fund may change its investment policy. As of the date of this prospectus, no regulations
have been issued pursuant to this authorization. It is possible, however, that such regulations may be issued in the future. Additionally,
the IRS has not issued any guidance on how to apply the asset diversification test to such foreign currency positions. Thus, the IRS’
determination as to how to treat such foreign currency positions for purposes of satisfying the asset diversification test might differ
from that of each Fund resulting in the Fund’s failure to qualify as a RIC. In lieu of disqualification, each Fund is permitted
to pay a tax for certain failures to satisfy the asset diversification or income requirements, which, in general, are limited to those
due to reasonable cause and not willful neglect.
◾
The
Funds’ transactions in foreign currencies may give rise to ordinary income or loss to the extent such income or loss results from
fluctuations in the value of the foreign currency concerned. This treatment could increase or decrease the Funds' ordinary income distributions
to you, and may cause some or all of the Funds' previously distributed income to be classified as a return of capital. Return of capital
distributions generally are not taxable to you. Your cost basis in your Fund shares will be decreased by the amount of any return of capital.
Any return of capital distributions in excess of your cost basis will be treated as capital gains.
This
discussion of “Taxes” is for general information only and not
tax advice. All investors should consult their own tax advisers as to the federal, state, local and foreign tax provisions applicable
to them.
Taxes
(applicable to the Invesco SteelPath Funds
only)
Although
the Code generally provides that a RIC does not pay an entity-level income tax, provided that it distributes all or substantially all
of its income, the Fund is not and does not anticipate becoming eligible to elect to be treated as a RIC because most or substantially
all of the Fund’s investments will consist of investments in MLP securities. The RIC tax rules therefore have no application to
the Fund or to its shareholders. As a result, the Fund is treated as a regular corporation, or “C” corporation, for U.S. federal
income tax purposes, and generally is subject to U.S. federal income tax on its taxable income at the corporate income tax rate. In addition,
as a regular corporation, the Fund will be subject to state and local taxes by reason of its tax status and its investments in MLPs. Therefore,
the Fund may have to pay federal, multiple state, and local taxes, which would reduce the Fund’s cash available to make distributions
to shareholders. An estimate for federal, state, and local tax liabilities will reduce the fund’s net asset value. The extent to
which the Fund is required to pay U.S. federal, state or local corporate income, franchise or other corporate taxes could materially reduce
the Fund’s cash available to make distributions to shareholders. In addition, investors in taxable accounts should be aware of the
following basic tax points as supplemented below where relevant:
Fund
Tax Basics
◾
The
Fund intends to invest a significant portion of its assets in MLPs, which are generally treated as partnerships for U.S. federal income
tax purposes. To the extent that the Fund invests in equity securities of an MLP, the Fund will be a partner in such MLP. Accordingly,
the Fund will be
A-23 The
Invesco Funds
required
to take into account the Fund’s allocable share of the income, gains, losses, deductions, and credits recognized by each such MLP,
regardless of whether the MLP distributes cash to the Fund. MLP distributions to partners, such as the Fund, are not taxable unless the
cash amount (or in certain cases, the fair market value of marketable securities) distributed exceeds the Fund’s basis in its MLP
interest. The Fund expects that the cash distributions it will receive with respect to its investments in equity securities of MLPs will
exceed the net taxable income allocated to the Fund from such MLPs because of tax deductions such as depreciation, amortization and depletion
that will be allocated to the Fund from the MLPs. No assurance, however, can be given in this regard. If this expectation is not realized,
the Fund will have a larger corporate income tax expense than expected, which will result in less cash available for distribution to shareholders.
◾
The
Fund will recognize gain or loss on the sale, exchange or other taxable disposition of its portfolio assets, including equity securities
of MLPs, equal to the difference between the amount realized by the Fund on the sale, exchange or other taxable disposition and the Fund’s
adjusted tax basis in such assets. Any such gain will be subject to U.S. federal income tax at the corporate income tax rate, regardless
of how long the Fund has held such assets since preferential capital gain rates do not apply to regular corporations such as the Fund.
The amount realized by the Fund in any case generally will be the amount paid by the purchaser of the assets plus, in the case of MLP
equity securities, the Fund’s allocable share, if any, of the MLP’s debt that will be allocated to the purchaser as a result
of the sale, exchange or other taxable disposition. The Fund’s tax basis in its equity securities in an MLP generally is equal to
the amount the Fund paid for the equity securities, (i) increased by the Fund’s allocable share of the MLP’s net taxable income
and certain MLP debt, if any, and (ii) decreased by the Fund’s allocable share of the MLP’s net losses and any distributions
received by the Fund from the MLP. Although any distribution by an MLP to the Fund in excess of the Fund’s allocable share of such
MLP’s net taxable income may create a temporary economic benefit to the Fund, net of a deferred tax liability, such distribution
will decrease the Fund’s tax basis in its MLP investment and will therefore increase the amount of gain (or decrease the amount
of loss) that will be recognized on the sale of an equity security in the MLP by the Fund. To the extent that the Fund has a net capital
loss in any year, the net capital loss can be carried back three taxable years and forward five taxable years to reduce the Fund’s
capital gains in such years. In the event a capital loss carryover cannot be utilized in the carryover periods, the Fund’s federal
income tax liability may be higher than expected, which will result in less cash available to distribute to shareholders.
◾
Distributions
by the Fund of cash or property in respect of the shares (other than certain distributions in redemption of shares) will be treated as
dividends for U.S. federal income tax purposes to the extent paid from the Fund’s current or accumulated earnings and profits (as
determined under U.S. federal income tax principles). Generally, the Fund’s earnings and profits are computed based upon the Fund’s
taxable income (loss), with certain specified adjustments. Any such dividend likely will be eligible for the dividends-received deduction
if received by an otherwise qualifying corporate U.S. shareholder that meets certain holding period and other requirements for the dividends-received
deduction. Dividends paid by the Fund to certain non-corporate U.S. shareholders (including individuals), generally are eligible for U.S.
federal income taxation at the rates generally applicable to long-term capital gains for individuals provided that the U.S. shareholder
receiving the dividend satisfies applicable holding period and other requirements. Otherwise, dividends paid by the Fund to non-corporate
U.S. Shareholders (including individuals) will be taxable at ordinary income rates.
◾
If
the amount of a Fund distribution exceeds the Fund’s current and accumulated earnings and profits, such excess will be treated first
as a tax-deferred return of capital to the extent of, and in reduction of, a shareholder’s tax basis in the shares, and thereafter
as capital gain to the extent the shareholder held the shares as a capital asset. Any such capital gain will be long-term capital gain
if such shareholder has held the applicable shares for more than one year. The portion of the distribution
received
by a shareholder from the Fund that is treated as a return of capital will decrease the shareholder’s tax basis in his or her Fund
shares (but not below zero), which will result in an increase in the amount of gain (or decrease in the amount of loss) that will be recognized
by the shareholder for tax purposes on the later sale of such Fund shares.
◾
The
Fund anticipates that the cash distributions it will receive with respect to its investments in equity securities of MLPs and which it
will distribute to its shareholders will exceed the Fund’s current and accumulated earnings and profits. Accordingly, the Fund expects
that only a part of its distributions to shareholders with respect to the shares will be treated as dividends for U.S. federal income
tax purposes. No assurance, however, can be given in this regard.
◾
Special
rules may apply to the calculation of the Fund’s earnings and profits. For example, the Fund’s earnings and profits will be
calculated using the straight-line depreciation method rather than the accelerated depreciation method. This difference in treatment may,
for example, result in the Fund’s earnings and profits being higher than the Fund’s taxable income or loss in a particular
year if the MLPs in which the Fund invests calculate their income using accelerated depreciation. Because of these special earnings profits
rules, the Fund may make distributions in a particular year out of earnings and profits (treated as dividends) in excess of the amount
of the Fund’s taxable income or loss for such year, which means that a larger percentage of the Fund ’s distributions could
be taxable to shareholders as ordinary income instead of tax-deferred return of capital or capital gain.
◾
Shareholders
that receive distributions in shares rather than in cash will be treated for U.S. federal income tax purposes as having (i) received a
cash distribution equal to the fair market value of the shares received and (ii) reinvested such amount in shares.
◾
A
redemption of shares will be treated as a sale or exchange of such shares, provided the redemption is not essentially equivalent to a
dividend, is a substantially disproportionate redemption, is a complete redemption of a shareholder’s entire interest in the Fund,
or is in partial liquidation of such Fund. Redemptions that do not qualify for sale or exchange treatment will be treated as distributions
as described above. Upon a redemption treated as a sale or exchange under these rules, a shareholder generally will recognize capital
gain or loss equal to the difference between the adjusted tax basis of his or her shares and the amount received when they are sold.
◾
If
the Fund is required to sell portfolio securities to meet redemption requests, the Fund may recognize income and gains for U.S. federal,
state and local income and other tax purposes, which may result in the imposition of corporate income or other taxes on the Fund and may
increase the Fund’s current and accumulated earnings and profits, which will result in a greater portion of distributions to Fund
shareholders being treated as dividends. Any long-term or short-term capital gains realized on sale or redemption of your Fund shares
will be subject to federal income tax. For tax purposes an exchange of your shares for shares of another Fund is the same as a sale. An
exchange occurs when the purchase of shares of a Fund is made using the proceeds from a redemption of shares of another Fund and is effectuated
on the same day as the redemption. Your gain or loss is calculated by subtracting from the gross proceeds your cost basis. Gross proceeds
and, for shares acquired on or after January 1, 2012 and disposed of after that date, cost basis will be reported to you and the IRS.
Cost basis will be calculated using the Fund’s default method of first-in, first-out (FIFO), unless you instruct the Fund to use
a different calculation method. Shareholders should carefully review the cost basis information provided by a Fund and make any additional
basis, holding period or other adjustments that are required when reporting these amounts on their federal income tax returns. If you
hold your Fund shares through a broker (or other nominee), please contact that broker (nominee) with respect to reporting of cost basis
and available elections for your account. For more information about the cost basis methods offered by Invesco, please refer to the Tax
Center located under the Account Access & Forms menu of our website at www.invesco.com/us.
A-24 The
Invesco Funds
◾
The
conversion of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes
and no gain or loss will be reported on the transaction. This is true whether the conversion occurs automatically pursuant to the terms
of the class or is initiated by the shareholder.
◾
At
the time you purchase your Fund shares, the Fund’s net asset value may reflect undistributed income. A subsequent distribution to
you of such amounts, although constituting a return of your investment, would be taxable. Buying shares in a Fund just before it declares
an income dividend is sometimes known as “buying a dividend.” In addition, a Fund’s net asset value may, at any time,
reflect net unrealized appreciation, which may result in future taxable distributions to you.
◾
By
law, if you do not provide a Fund with your proper taxpayer identification number and certain required certifications, you may be subject
to backup withholding on any distributions of income, capital gains, or proceeds from the sale of your shares. A Fund also must withhold
if the IRS instructs it to do so. When withholding is required, the amount will be 24% of any distributions or proceeds paid.
◾
A
3.8% Medicare tax is imposed on certain net investment income (including ordinary dividends received from a Fund and net gains from redemptions
or other taxable dispositions of Fund shares) of U.S. individuals, estates and trusts to the extent that such person’s “modified
adjusted gross income” (in the case of an individual) or “adjusted gross income” (in the case of an estate or trust)
exceeds a threshold amount. This Medicare tax, if applicable, is reported by you on, and paid with, your federal income tax return.
◾
Fund
distributions and gains from sale or exchange of your Fund shares generally are subject to state and local income taxes.
◾
Foreign
investors should be aware that U.S. withholding, special certification requirements to avoid U.S. backup withholding and claim any treaty
benefits, and estate taxes may apply to an investment in a Fund.
◾
Under
the Foreign Account Tax Compliance Act (FATCA), a Fund will be required to withhold a 30% tax on income dividends made by the Fund to
certain foreign entities, referred to as foreign financial institutions or non-financial foreign entities, that fail to comply (or be
deemed compliant) with extensive reporting and withholding requirements designed to inform the U.S. Department of the Treasury of U.S.-owned
foreign investment accounts. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide otherwise (which
is not expected). A Fund may disclose the information that it receives from its shareholders to the IRS, non-U.S. taxing authorities or
other parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that is a shareholder
of a Fund fails to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.
◾
Taxes,
penalties, and interest associated with an audit of a partnership are generally required to be assessed and collected at the partnership
level. Therefore, an adverse federal income tax audit of an MLP taxed as a partnership that the Fund invests in could result in the Fund
being required to pay federal income tax. The Fund may have little input in any audit asserted against an MLP and may be contractually
or legally obligated to make payments in regard to deficiencies asserted without the ability to put forward an independent defense. Accordingly,
even if an MLP in which the Fund invests were to remain classified as a partnership, it could be required to pay additional taxes, interest
and penalties as a result of an audit adjustment, and the Fund, as a direct or indirect partner of such MLP, could be required to bear
the economic burden of those taxes, interest and penalties, which would reduce the value of Fund shares.
◾
Under
the Tax Cuts and Jobs Act certain “qualified publicly traded partnership income” (e.g., certain income from certain of the
MLPs in which the Fund invests) is treated as eligible for a 20% deduction by noncorporate taxpayers. The Tax Cuts and Jobs Act does not
contain a provision permitting an entity, such as the Fund, to benefit from this
deduction
(since the Fund is taxed as a “C” corporation) or pass the special character of this income through to its shareholders. Qualified
publicly traded partnership income allocated to a noncorporate investor investing directly in an MLP might, however, be eligible for the
deduction.
The
above discussion concerning the taxability of Fund dividends and distributions
and of redemptions and exchanges of Fund shares is inapplicable to investors holding shares through a tax-advantaged arrangement, such
as Retirement and Benefit Plans or 529 college savings plans. Such investors should refer to the applicable account documents/program
description for that arrangement for more information regarding the tax consequences of holding and redeeming Fund shares.
This
discussion of “Taxes” is for general information only and not
tax advice. All investors should consult their own tax advisers as to the federal, state, local and foreign tax provisions applicable
to them.
Federal
Income Taxes (applicable to Invesco Master Loan Fund only)
United
States Taxes
The
Fund is classified as a partnership and will not be a regulated investment company for US federal income tax purposes. As a partnership,
the Fund is not a taxable entity for federal income tax purposes and, subject to the application of the partnership audit rules described
below, incurs no federal income tax liability. Each Investor is required to take into account its proportionate share of items of income,
gain, loss and deduction of the partnership in computing its federal income tax liability regardless of whether or not cash or property
distributions are then made by the Fund. Following the close of the Fund’s taxable year end, Investors will receive a tax statement
entitled Schedule K-1 Partner’s Share of Income, Deductions, Credits, etc., which reports the tax status of their distributive share
of the Fund’s items for the previous year.
Taxation
of Distributions, Sales and Exchanges
In
general, distributions of money by the Fund to an Investor will represent a non-taxable return of capital up to the amount of an Investor’s
adjusted tax basis in its shares. An Investor will recognize gain to the extent that any money distributed by the Fund exceeds the Investor’s
adjusted tax basis in its shares. In the case of a non-taxable return of capital by the Fund to an Investor, other than in liquidation
of the Investor’s interest in the Fund, the tax basis of his shares will be reduced (but not below zero) and will result in an increase
in the amount of gain (or decrease in the amount of loss) that will be recognized by the Investor on the later sale of its shares. A distribution
in partial or complete redemption of your shares in the Fund is taxable as a sale or exchange only to the extent the amount of money received
exceeds the tax basis of your entire interest in the Fund. Any loss may be recognized only if you redeem your entire interest in the Fund
for money.
When
you sell shares of the Fund, you may have a capital gain or loss.
Derivatives
The
use of derivatives by the Fund may cause the Fund to realize higher amounts of ordinary income or short-term capital gain, allocations
of which are taxable to individual Investors at ordinary income tax rates rather than at the more favorable tax rates for long-term capital
gain. Changes in government regulation of derivative instruments could affect the character, timing and amount of the Fund’s taxable
income or gains, and may limit the Fund from using certain types of derivative instruments as part of its investment strategy.
Risk
of Audit of the Fund
Under
the partnership audit rules, which are generally applicable to tax years beginning after December 31, 2017, the Internal Revenue Service
(“IRS”) may collect any taxes resulting from audit adjustments to the Fund’s income tax returns (including any applicable
penalties and interest) directly from the Fund. In that case, current Investors would bear some or all of the
A-25 The
Invesco Funds
tax liability
resulting from such audit adjustment, even if they did not own interests in the Fund during the tax year under audit. The Fund may have
the ability to shift any such tax liability to the Investors in accordance with their interests in the Fund during the year under audit,
but there can be no assurance that the Fund will be able to do so under all circumstances. For taxable years not subject to the new audit
rules, items of Fund income, gain, loss, deduction and credit will be determined at the Fund level in a unified audit. NO REPRESENTATION
OR WARRANTY OF ANY KIND IS MADE WITH RESPECT TO THE TAXATION, DEDUCTIBILITY OR CAPITALIZATION OF ANY ITEM BY THE FUND OR INVESTOR. In
addition, the “partnership representative” (tax matters partner, for taxable years before the partnership audit rules become
effective) will have the sole authority to act on the Fund’s behalf for purposes of, among other things, federal income tax audits
and judicial review of administrative adjustments by the IRS, and any such actions will be binding on the Fund and all of the Investors.
Unrelated
Business Taxable Income
An
allocable share of a tax-exempt Investor’s income will be “unrelated business taxable income” (“UBTI”) to
the extent that the Fund borrows money to acquire property or invests in assets that produce UBTI.
Medicare
Tax
An
additional 3.8% Medicare tax is imposed on certain net investment income of US individuals, estates and trusts to the extent that such
person’s “modified adjusted gross income” (in the case of an individual) or “adjusted gross income” (in
the case of an estate or trust) exceeds a threshold amount. “Net investment income,” for these purposes, means investment
income (including (i) net gains from the taxable disposition of shares of a Fund to the extent the net gain would be taken into account
by the Investor if the Fund sold all of its property for fair market value immediately before the disposition of the shares of the Fund,
and (ii) an allocable share of a Fund’s interest, dividends and net gains) reduced by the deductions properly allocable to such
income. This Medicare tax, if applicable, is reported by Investors on, and paid with, the Investor’s federal income tax return.
State,
Local and Non-US Tax Matters
An
Investor’s distributive share of the Fund’s income, and gains from the sale or exchange of an Investor’s Fund shares,
generally are subject to state and local taxes in the jurisdiction in which the Investor resides or is otherwise subject to tax.
Prospective
investors should consider their individual state and local tax consequences
of an investment in the Fund.
Tax
Considerations for Non-US Investors
If,
as anticipated, the Fund is not deemed to be engaged in a US trade or business, the Fund generally will be required to withhold tax on
the distributive share of certain items of gross income from US sources allocated to non-US Investors at a 30% (or lower treaty) rate.
Certain categories of income, including portfolio interest, are not subject to US withholding tax. Capital gains (other than gain realized
on disposition of US real property interests) are not subject to US withholding tax unless the non-US Investor is a nonresident alien
individual present in the United States for a period or periods aggregating 183 days or more during the taxable year. If, on the other
hand, the Fund derives income which is effectively connected with a US trade or business carried on by the Fund, this 30% tax will not
apply to such effectively connected income of the Fund, and the Fund generally will be required to withhold tax from the amount of effectively
connected income allocable to non-US Investors at the highest rate of tax applicable to US residents, and non-US Investors generally would
be required to file US income tax returns and be subject to US income tax on a net basis. Gain or loss on a sale of shares will be treated
as effectively connected with a U.S. trade or business to the extent that a foreign corporation or foreign individual that owns the shares
(whether directly or indirectly through other partnerships) would have had effectively connected gain or loss had the partnership sold
its underlying assets and applicable US
withholding
tax will apply. Non-US Investors may be subject to US estate tax and are subject to special US tax certification requirements.
Other
Reporting and Withholding Requirements
Under
the Foreign Account Tax Compliance Act (“FATCA”), the Fund will be required to withhold at a 30% rate on certain US source
payments (such as interest and dividends) to certain Investors if the Investor fails to provide the Fund with the information which identifies
its direct and indirect US ownership. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide otherwise (which
is not expected). A Fund may disclose the information that it receives from an Investor to the IRS, non-US taxing authorities or other
parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that is an Investor fails
to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.
For
a more complete discussion of the federal income tax consequences
of investing in the Fund, see the Statement of Additional Information.
This
discussion of “Federal Income Taxes” is not intended or written
to be used as tax advice. Because everyone’s tax situation is unique, Investors should consult their tax professional about federal,
state, local and foreign tax consequences before making an investment in the Fund.
Payments
to Financial Intermediaries – All Share Classes except Class R6 shares
The
financial adviser or intermediary through which you purchase your shares may receive all or a portion of the sales charges and distribution
fees discussed above. In addition to those payments, Invesco Distributors and other Invesco Affiliates, may make additional cash payments
to financial intermediaries in connection with the promotion and sale of shares of the Funds. These additional cash payments may include
cash payments and other payments for certain marketing and support services. Invesco Affiliates make these payments from their own resources,
from Invesco Distributors’ retention of initial sales charges and from payments to Invesco Distributors made by the Funds under
their 12b-1 plans. In the context of this prospectus, “financial intermediaries” include any broker, dealer, bank (including
bank trust departments), registered investment adviser, financial planner, retirement plan administrator, insurance company and any other
financial intermediary having a selling, administration or similar agreement with Invesco Affiliates.
The
benefits Invesco Affiliates receive when they make these payments include,
among other things, placing the Funds on the financial intermediary’s fund sales system, and access (in some cases on a preferential
basis over other competitors) to individual members of the financial intermediary’s sales force or to the financial intermediary’s
management. These payments are sometimes referred to as “shelf space” payments because the payments compensate the financial
intermediary for including the Funds in its fund sales system (on its “sales shelf”). Invesco Affiliates compensate financial
intermediaries differently depending typically on the level and/or type of considerations provided by the financial intermediary. The
payments Invesco Affiliates make may be calculated based on sales of shares of the Funds (Sales-Based Payments), in which case the total
amount of such payments shall not exceed 0.25% (0.10% for Class R5 shares) of the public offering price of all shares sold by the financial
intermediary during the particular period. Payments may also be calculated based on the average daily net assets of the applicable Funds
attributable to that particular financial intermediary (Asset-Based Payments), in which case the total amount of such cash payments shall
not exceed 0.25% per annum of those assets during a defined period. Sales-Based Payments primarily create incentives to make new sales
of shares of the Funds and Asset-Based Payments primarily create incentives to retain previously sold shares of the Funds in investor
accounts. Invesco Affiliates
A-26 The
Invesco Funds
may pay a financial
intermediary either or both Sales-Based Payments and Asset-Based Payments.
Invesco
Affiliates are motivated to make these payments as they promote
the sale of Fund shares and the retention of those investments by clients of the financial intermediaries. To the extent financial intermediaries
sell more shares of the Funds or retain shares of the Funds in their clients’ accounts, Invesco Affiliates benefit from the incremental
management and other fees paid to Invesco Affiliates by the Funds with respect to those assets.
The
Funds’ transfer agent may make payments to certain financial intermediaries
for certain administrative services, including record keeping and sub-accounting of shareholder accounts pursuant to a sub-transfer agency,
omnibus account service or sub-accounting agreement. All fees payable by Invesco Affiliates under this category of services are charged
back to the Funds, subject to certain limitations approved by the Board.
You
can find further details in the Fund’s SAI about these payments and the
services provided by financial intermediaries. In certain cases these payments could be significant to the financial intermediaries. Your
financial adviser may charge you additional fees or commissions other than those disclosed in this prospectus. You can ask your financial
adviser about any payments it receives from Invesco Affiliates or the Funds, as well as about fees and/or commissions it charges.
Important
Notice Regarding Delivery of Security Holder Documents
To
reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address
(Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not
want the mailing of these documents to be combined with those for other members of your household, please contact the Funds’ transfer
agent at 800-959-4246 or contact your financial institution. The Funds’ transfer agent will begin sending you individual copies
for each account within thirty days after receiving your request.
A-27 The
Invesco Funds
Obtaining Additional Information
More information
may be obtained free of charge upon request. The SAI, a current version of which is on file with the SEC, contains more details about
the Fund and is incorporated by reference into this prospectus (is legally a part of this prospectus). Annual and semi-annual reports
to shareholders contain additional information about the Fund’s investments. The Fund’s annual report also discusses the market
conditions and investment strategies that significantly affected the Fund’s performance during its last fiscal year. The Fund also
files its complete schedule of portfolio holdings with the SEC for the 1st and 3rd quarters of each fiscal year as an exhibit to its reports
on Form N-PORT.
If
you have questions about an Invesco Fund or your account, or you wish to obtain a free copy of the Fund’s current SAI, annual or
semi-annual reports or Form N-PORT, please contact us.
|
By
Mail: |
Invesco
Investment Services, Inc.
P.O.
Box 219078
Kansas
City, MO 64121-9078 |
|
By
Telephone: |
(800)
959-4246 |
|
On
the Internet: |
You
can send us a request by e-mail or
download
prospectuses, SAIs, annual or
semi-annual
reports via our website:
www.invesco.com/us
|
Reports
and other information about the Fund are available on the EDGAR Database on the SEC's Internet site at http://www.sec.gov, and copies
of this information may be obtained, after paying a duplicating fee, by electronic request at the following e-mail address: publicinfo@sec.gov.
|
Invesco
Global Real Estate Income Fund
SEC 1940 Act file
number: 811-09913 |
|
invesco.com/us
|
GREI-PRO-1
|
Prospectus
December
16,
2022
Class:
A (ACGIX ), C (ACGKX ),
R (ACGLX ), Y (ACGMX ),
R5 (ACGQX ), R6 (GIFFX )
Invesco
Growth and Income Fund
As
with all other mutual fund securities, the U.S. Securities and Exchange Commission (SEC) has not approved or disapproved these securities
or passed upon the adequacy of this prospectus. Any representation to the contrary is a criminal offense.
An
investment in the Fund:
◾
is
not FDIC insured;
◾
may
lose value; and
◾
is
not guaranteed by a bank.
Table of Contents
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A-1
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A-1
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A-2
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A-3
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A-3
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A-10
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A-11
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A-13
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A-15
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A-17
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A-17
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A-18
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A-21
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A-23
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A-25
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A-26
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A-27
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Back
Cover |
Invesco
Growth and Income Fund
The
Fund’s investment objective is total return through growth of capital and current income.
This
table describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund.
The
table and Examples below do not reflect any transaction fees
that may be charged by financial intermediaries or commissions that a shareholder may be required to pay directly to its financial intermediary
when buying or selling Class Y or Class R6 shares.
You
may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000
in the Invesco Funds. More information about these and other discounts is available from your financial professional and
in the section “Shareholder Account Information – Initial Sales Charges (Class A Shares Only)” on page A-3 of the prospectus
and the section “Purchase, Redemption and Pricing of Shares – Purchase and Redemption of Shares” on page L-1 of the
statement of additional information (SAI).
|
Class:
|
A
|
C
|
R
|
Y
|
R5
|
R6
|
|
Maximum
Sales Charge (Load) Imposed on
Purchases
(as a percentage of offering price) |
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|
Maximum
Deferred Sales Charge (Load) (as a
percentage
of original purchase price or
redemption
proceeds, whichever is less) |
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Class:
|
A
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C
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R
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Y
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R5
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R6
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Management
Fees |
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Distribution
and/or Service (12b-1) Fees |
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Other
Expenses |
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Total
Annual Fund Operating Expenses |
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1
The
Example assumes that you invest $10,000 in the Fund for the time periods
indicated and then redeem all of your shares at the end of those periods. This Example does not include commissions and/or other forms
of compensation that investors may pay on transactions in Class Y and Class R6 shares. The Example also assumes that your investment has
a 5% return each year and that the Fund’s operating expenses remain the same.
Although
your actual costs may be higher or lower, based on these assumptions,
your costs would be:
|
|
1
Year |
3
Years |
5
Years |
10
Years |
|
Class
A |
$
|
$
|
$
|
$
|
|
| ||||
|
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 |
$
|
$
|
$
|
$
|
|
| ||||
Under
normal market conditions, the Fund’s investment adviser, Invesco Advisers, Inc. (Invesco or the Adviser), seeks to achieve the Fund’s
investment objective by investing primarily in income-producing equity securities, which include common stocks and convertible securities.
The
Fund may invest in securities of issuers of all capitalization sizes; however,
a substantial number of the issuers in which the Fund invests are large-capitalization issuers.
The
Fund may invest up to 15% of its net assets in real estate investment
trusts (REITs).
The
Fund may invest up to 25% of its net assets in securities of foreign issuers,
which may include depositary receipts.
The
Fund can invest in derivative instruments including forward foreign currency
contracts, futures contracts and options.
The
Fund can use forward foreign currency contracts to hedge against adverse
movements in the foreign currencies in which portfolio securities are denominated.
The
Fund can use futures contracts to seek exposure to certain asset classes
and to hedge against adverse movements in the foreign currencies in which portfolio securities are denominated.
The
Fund can use options to seek alpha (return on investments in excess
of the Russell 1000®
Value Index) or to mitigate risk and to hedge against adverse movements in the foreign currencies in which portfolio securities are denominated.
The
Fund emphasizes a value style of investing, which focuses on undervalued
companies with characteristics for improved valuations. The Adviser looks for catalysts for change that may positively impact a company.
This catalyst could come from within the company in the form of
new management, operational enhancements, restructuring or reorganization. It could also be an external factor, such as an improvement
in industry conditions or a regulatory change. The aim is to uncover these catalysts for change, and then benefit from potential stock
price appreciation of the change taking place at the company.
The
Fund may dispose of a security when, in the opinion of the Adviser, the
security reaches the Adviser’s estimate of fair value or when the Adviser identifies a more attractive investment opportunity.
1 Invesco
Growth and Income Fund
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, natural or environmental disasters, widespread disease or other public health issues, war, military conflict, acts of terrorism
or adverse investor sentiment generally. 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.
Investing
in Stocks Risk. The value of the Fund’s portfolio may be
affected by changes in the stock markets. Stock markets may experience significant short-term volatility and may fall or rise sharply
at times. Adverse events in any part of the equity or fixed-income markets may have unexpected negative effects on other market segments.
Different stock markets may behave differently from each other and U.S. stock markets may move in the opposite direction from one or more
foreign stock markets.
The
prices of individual stocks generally do not all move in the same direction
at the same time. However, individual stock prices tend to go up and down more dramatically than those of certain other types of investments,
such as bonds. A variety of factors can negatively affect the price of a particular company’s stock. These factors may include,
but are not limited to: poor earnings reports, a loss of customers, litigation against the company, general unfavorable performance of
the company’s sector or industry, or changes in government regulations affecting the company or its industry. To the extent that
securities of a particular type are emphasized (for example foreign stocks, stocks of small- or mid-cap companies, growth or value stocks,
or stocks of companies in a particular industry), fund share values may fluctuate more in response to events affecting the market for
those types of securities.
Convertible
Securities Risk. The market values of convertible securities are
affected by market interest rates, the risk of actual issuer default on interest or principal payments and the value of the underlying
common stock into which the convertible security may be converted. Additionally, a convertible security is subject to the same types of
market and issuer risks that apply to the underlying common stock. In addition, certain convertible securities are subject to involuntary
conversions and may undergo principal write-downs upon the occurrence of certain triggering events, and, as a result, are subject to an
increased risk of loss. Convertible securities may be rated below investment grade, which are considered to have more speculative characteristics
and greater susceptibility to default or decline in market value than investment grade securities.
Foreign
Securities Risk. The Fund's foreign investments may be adversely
affected by political and social instability, changes in economic or taxation policies, difficulty in enforcing obligations, decreased
liquidity or increased volatility. 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. There may be less public information available about foreign companies than U.S. companies, making it difficult
to evaluate those foreign companies. 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.
Depositary
Receipts Risk. Investing in depositary receipts involves the same
risks as direct investments in foreign securities. In addition, the underlying issuers of certain depositary receipts are under no obligation
to distribute shareholder communications or pass through any voting rights with respect to the deposited securities to the holders of
such receipts. The Fund may therefore receive less timely information or have less control than if it invested directly in the foreign
issuer.
Small-
and Mid-Capitalization Companies Risk. Investing in securities
of small- and mid-capitalization companies involves greater risk than customarily is associated with investing in larger, more established
companies. Stocks of small- and mid-capitalization companies tend to be more vulnerable to changing market conditions, may have little
or no operating history or track record of success, and may have more limited product lines and markets, less experienced management and
fewer financial resources than larger companies. These companies’ securities may be more volatile and less liquid than those of
more established companies. They may be more sensitive to changes in a company’s earnings expectations and may experience more abrupt
and erratic price movements. Smaller companies’ securities often trade in lower volumes and in many instances, are traded over-the-counter
or on a regional securities exchange, where the frequency and volume of trading is substantially less than is typical for securities of
larger companies traded on national securities exchanges. Therefore, the securities of smaller companies may be subject to wider price
fluctuations and it might be harder for the Fund to dispose of its holdings at an acceptable price when it wants to sell them. Since small-
and mid-cap companies typically reinvest a high proportion of their earnings in their business, they may not pay dividends for some time,
particularly if they are newer companies. It may take a substantial period of time to realize a gain on an investment in a small- or mid-cap
company, if any gain is realized at all.
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. 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.
REIT
Risk/Real Estate Risk. Investments in real estate related instruments
may be adversely affected by economic, legal, cultural, environmental or technological factors that affect property values, rents or occupancies.
Shares of real estate related companies, which tend to be small- and mid-cap companies, may be more volatile and less liquid than larger
companies. If a real estate related company defaults on certain types of debt obligations held by the Fund, the Fund may acquire real
estate directly, which involves additional risks such as environmental liabilities; difficulty in valuing and selling the real estate;
and economic or regulatory changes.
Derivatives
Risk. The value of a derivative instrument depends largely on (and
is derived from) the value of an underlying security, currency, commodity, interest rate, index or other asset (each referred to as an
underlying asset). In addition to risks relating to the underlying assets, the use of derivatives may include other, possibly greater,
risks, including counterparty, leverage and liquidity risks. Counterparty risk is the risk that the counterparty to the derivative contract
will default on its obligation to pay the Fund the amount owed or otherwise perform under the derivative contract. Derivatives create
leverage risk because they do not require payment up front equal to the economic exposure created by holding a position in the derivative.
As a result, an adverse change in the value of the underlying asset could result in the Fund sustaining a loss that is substantially greater
than the amount invested in the derivative or the anticipated value of the underlying asset, which may make the Fund’s returns more
volatile and increase the risk of loss. Derivative instruments
2 Invesco
Growth and Income Fund
may also
be less liquid than more traditional investments and the Fund may be unable to sell or close out its derivative positions at a desirable
time or price. This risk may be more acute under adverse market conditions, during which the Fund may be most in need of liquidating its
derivative positions. Derivatives may also be harder to value, less tax efficient and subject to changing government regulation that could
impact the Fund’s ability to use certain derivatives or their cost. Derivatives strategies may not always be successful. For example,
derivatives used for hedging or to gain or limit exposure to a particular market segment may not provide the expected benefits, particularly
during adverse market conditions.
Value Investing
Risk. Value investing entails the risk that if the market does
not recognize that a selected security is undervalued, the prices of that security might not appreciate as anticipated. A value approach
could also result in fewer investments that increase rapidly during times of market gains and could cause a fund to underperform funds
that use a growth or non-value approach to investing. Value investing has gone in and out of favor during past market cycles and when
value investing is out of favor or when markets are unstable, the securities of “value” companies may underperform the securities
of “growth” companies or the overall stock market.
Management
Risk. The Fund is actively managed and depends heavily on the Adviser’s
judgment about markets, interest rates or the attractiveness, relative values, liquidity, or potential appreciation of particular investments
made for the Fund’s portfolio. The Fund could experience losses if these judgments prove to be incorrect. Additionally, legislative,
regulatory, or tax developments may adversely affect management of the Fund and, therefore, the ability of the Fund to achieve its investment
objective.
Fund
performance reflects any applicable fee waivers and expense reimbursements.
Performance returns would be lower without applicable fee waivers and expense reimbursements.
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, 2021)
|
|
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
R61 |
|
|
|
|
|
| ||||
|
Russell
1000®
Value Index for
fees, expenses or taxes) |
|
|
|
|
|
| ||||
|
Lipper
Large-Cap Value Funds Index |
|
|
|
|
|
| ||||
|
S&P
500®
Index (reflects no deduction for fees,
expenses
or taxes) |
|
|
|
|
|
| ||||
1
Management
of the Fund
Investment
Adviser: Invesco Advisers, Inc.
|
Portfolio
Managers |
Title
|
Length
of Service on the Fund |
|
Brian
Jurkash |
Portfolio
Manager (co-lead) |
2015
|
|
| ||
|
Matthew
Titus, CFA |
Portfolio
Manager (co-lead) |
2016
|
|
| ||
|
Sergio
Marcheli |
Portfolio
Manager |
2010
(predecessor fund 2003)* |
|
| ||
*Predecessor
fund refers to the Van Kampen Growth and Income Fund, which was
reorganized into the Fund after the close of business on June 1, 2010.
Purchase
and Sale of Fund Shares
You
may purchase, redeem or exchange shares of the Fund on any business day through your financial adviser or by telephone at 800-959-4246.
Shares of the Fund, other than Class R5 and Class R6 shares, may also be purchased, redeemed or exchanged on any business day through
our website at www.invesco.com/us or by mail to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.
The
minimum investments for Class A, C, R and Y shares for fund accounts
are as follows:
|
Type
of Account |
Initial
Investment
Per
Fund |
Additional
Investments
Per
Fund |
|
Asset
or fee-based accounts managed by your financial adviser |
None
|
None
|
|
| ||
|
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
3 Invesco
Growth and Income Fund
Benefit
Plans must meet a minimum initial investment of at least $1 million in each Fund in which it invests.
For
all other institutional investors purchasing Class R5 or Class R6 shares,
the minimum initial investment in each share class is $1 million, unless such investment is made by (i) an investment company, as defined
under the Investment Company Act of 1940, as amended (1940 Act), that is part of a family of investment companies which own in the aggregate
at least $100 million in securities, or (ii) an account established with a 529 college savings plan managed by Invesco, in which case
there is no minimum initial investment.
There
are no minimum investment amounts for Class R6 shares held through
retail omnibus accounts maintained by an intermediary, such as a broker, that (i) generally charges an asset-based fee or commission in
addition to those described in this prospectus, and (ii) maintains Class R6 shares and makes them available to retail investors.
Tax
Information
The
Fund’s distributions generally are taxable to you as ordinary income, capital gains, or some combination of both, unless you are
investing through a tax-advantaged arrangement, such as a 401(k) plan, 529 college savings plan or individual retirement account. Any
distributions from a 401(k) plan or individual retirement account may be taxed as ordinary income when withdrawn from such plan or account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund, the Fund’s distributor
or its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict
of interest by influencing the broker-dealer or other intermediary and your salesperson or financial adviser to recommend the Fund over
another investment. Ask your salesperson or financial adviser or visit your financial intermediary’s website for more information.
Investment Objective(s), Strategies, Risks and Portfolio Holdings
Objective(s)
and Strategies
The
Fund’s investment objective is total return through growth of capital and current income. The Fund’s investment objective
may be changed by the Board of Trustees (the Board) without shareholder approval.
Under
normal market conditions, the Adviser seeks to achieve the Fund’s
investment objective by investing primarily in income-producing equity securities, which include common stocks and convertible securities.
The
Fund may invest in securities of issuers of all capitalization sizes; however,
a substantial number of the issuers in which the Fund invests are large-capitalization issuers.
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 largest and smallest capitalized companies included in the Russell
1000®
Index during the most recent 11-month period (based on month-end
data) plus the most recent data during the current month.
The
Fund may invest up to 15% of its net assets in REITs. REITs pool investors’
funds for investment primarily in commercial real estate properties or real estate related loans. REITs generally derive their income
from rents on the underlying properties or interest on the underlying loans, and their value is impacted by changes in the value of the
underlying property or changes in interest rates affecting the underlying loans owned by the REITs.
The
Fund may invest up to 25% of its net assets in securities of foreign issuers,
which may include depositary receipts. A depositary receipt is generally issued by a bank or financial institution and represents an
ownership
interest in the common stock or other equity securities of a foreign company.
The
Fund can invest in derivative instruments including forward foreign currency
contracts, futures contracts and options.
A
forward foreign currency contract is an agreement between parties to exchange
a specified amount of currency at a specified future time at a specified rate. The Fund can use forward foreign currency contracts to
hedge against adverse movements in the foreign currencies in which portfolio securities are denominated.
A
futures contract is a standardized agreement between two parties to buy
or sell a specified quantity of an underlying asset at a specified price at a specified future time. The value of the futures contract
tends to increase and decrease in tandem with the value of the underlying asset. Futures contracts are bilateral agreements, with both
the purchaser and the seller equally obligated to complete the transaction. Depending on the terms of the particular contract, futures
contracts are settled by purchasing an offsetting contract, physically delivering the underlying asset on the settlement date or paying
a cash settlement amount on the settlement date. The Fund can use futures contracts to seek exposure to certain asset classes and to hedge
against adverse movements in the foreign currencies in which portfolio securities are denominated.
An
option is a derivative financial instrument that reflects a contract between
two parties for a future transaction on an asset at a reference price. The buyer of the option gains the right, but not the obligation,
to engage in that transaction, while the seller incurs the corresponding obligation to fulfill the transaction. The price of an option
derives from the difference between the reference price and the value of the underlying asset (commonly a stock, a bond, a currency or
a futures contract) plus a premium based on the time remaining until the expiration of the option. Other types of options exist, and options
can in principle be created for any type of valuable asset. The Fund can use options to seek alpha (return on investments in excess of
the Russell 1000®
Value Index) or to mitigate risk and to hedge against adverse movements in the foreign currencies in which portfolio securities are denominated.
The
Fund emphasizes a value style of investing, which focuses on undervalued
companies with characteristics for improved valuations. The Adviser looks for catalysts for change that may positively impact a company.
This catalyst could come from within the company in the form of
new management, operational enhancements, restructuring or reorganization. It could also be an external factor, such as an improvement
in industry conditions or a regulatory change. The aim is to uncover these catalysts for change, and then benefit from potential stock
price appreciation of the change taking place at the company.
The
Fund may dispose of a security when, in the opinion of the Adviser, the
security reaches the Adviser’s estimate of fair value or when the Adviser identifies 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
4 Invesco
Growth and Income Fund
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 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.
◾
COVID-19.
The “COVID-19” strain of coronavirus has resulted in instances of market closures and dislocations, extreme volatility, liquidity
constraints and increased trading costs. Efforts to contain its spread have resulted in travel restrictions, disruptions of healthcare
systems, business operations (including business closures) and supply chains, layoffs, lower consumer demand and employee availability,
and defaults and credit downgrades, among other significant economic impacts that have disrupted global economic activity across many
industries. Such economic impacts may exacerbate other pre-existing political, social and economic risks locally or globally and cause
general concern and uncertainty. The full economic impact and ongoing effects of COVID-19 (or other future epidemics or pandemics) at
the macro-level and on individual businesses are unpredictable and may result in significant and prolonged effects on the Fund’s
performance.
Investing
in Stocks Risk. Common stock represents an ownership interest in
a company. It ranks below preferred stock and debt securities in claims for dividends and in claims for assets of the issuer in a liquidation
or bankruptcy. Common stocks may be exchange-traded or over-the-counter securities. Over-the-counter securities may be less liquid than
exchange-traded securities.
The
value of the Fund’s portfolio may be affected by changes in the stock
markets. Stocks and other equity securities fluctuate in price in response to changes to equity markets in general. Stock markets may
experience significant short-term volatility and may fall or rise sharply at times. Adverse events in any part of the equity or fixed-income
markets may
have unexpected
negative effects on other market segments. Different stock markets may behave differently from each other and U.S. stock markets may move
in the opposite direction from one or more foreign stock markets.
The
prices of individual stocks generally do not all move in the same direction
at the same time. However, individual stock prices tend to go up and down more dramatically than those of certain other types of investments,
such as bonds. A variety of factors can negatively affect the price of a particular company’s stock. These factors may include,
but are not limited to: poor earnings reports, a loss of customers, litigation against the company, general unfavorable performance of
the company’s sector or industry, or changes in government regulations affecting the company or its industry. To the extent that
securities of a particular type are emphasized (for example foreign stocks, stocks of small- or mid-cap companies, growth or value stocks,
or stocks of companies in a particular industry), their share values may fluctuate more in response to events affecting the market for
those types of securities.
Convertible
Securities Risk. The market value of a convertible security performs
like that of a regular debt security; that is, if market interest rates rise, the value of a convertible security usually falls. In addition,
convertible securities are subject to the risk that the issuer will not be able to pay interest or dividends when due, and their market
value may change based on changes in the issuer’s credit rating or the market’s perception of the issuer’s creditworthiness.
Convertible securities can be converted into or exchanged for a set amount of common stock of an issuer within a particular period of
time at a specified price or according to a price formula. Convertible debt securities pay interest and convertible preferred stocks pay
dividends until they mature or are converted, exchanged or redeemed. Some convertible debt securities may be considered “equity
equivalents” because of the feature that makes them convertible into common stock. Since a convertible security derives a portion
of its value from the common stock into which it may be converted, a convertible security is also subject to the same types of market
and issuer risks that apply to the underlying common stock. In addition, certain convertible securities are subject to involuntary conversions
and may undergo principal write-downs upon the occurrence of certain triggering events. These convertible securities are subject to an
increased risk of loss and are generally subordinate in rank to other debt obligations of the issuer. Convertible securities may be rated
below investment grade, which are considered to have more speculative characteristics and greater susceptibility to default or decline
in market value than investment grade securities.
Foreign
Securities Risk. The value of the Fund's foreign investments may
be adversely affected by political and social instability in the home countries of the issuers of the investments, by changes in economic
or taxation policies in those countries, or by the difficulty in enforcing obligations in those countries. Foreign investments also involve
the risk of the possible seizure, nationalization or expropriation of the issuer or foreign deposits (in which the Fund could lose its
entire investments in a certain market) and the possible adoption of foreign governmental restrictions such as exchange controls. Foreign
companies generally may be subject to less stringent regulations than U.S. companies, including financial reporting requirements and auditing
and accounting controls, and may therefore be more susceptible to fraud or corruption. Also, there may be less publicly available information
about companies in certain foreign countries than about U.S. companies making it more difficult for the Adviser to evaluate those companies.
The laws of certain countries may put limits on the Fund’s ability to recover its assets held at a foreign bank if the foreign bank,
depository or issuer of a security, or any of their agents, goes bankrupt. Trading in many foreign securities may be less liquid and more
volatile than U.S. securities due to the size of the market or other factors. Changes in political and economic factors in one country
or region could adversely affect conditions in another country or region. Investments in foreign securities may also expose the Fund to
time-zone arbitrage risk. At times, the Fund may emphasize investments in a particular country or region and may be subject to greater
risks from adverse events that occur in that
5 Invesco
Growth and Income Fund
country
or region. Unless the Fund has hedged its foreign currency exposure, foreign securities risk also involves the risk of negative foreign
currency rate fluctuations, which may cause the value of securities denominated in such foreign currency (or other instruments through
which the Fund has exposure to foreign currencies) to decline in value. Currency exchange rates may fluctuate significantly over short
periods of time. Currency hedging strategies, if used, are not always successful. For instance, currency forward contracts, if used by
the Fund, could reduce performance if there are unanticipated changes in currency exchange rates.
Depositary
Receipts Risk. Depositary receipts involve many of the same risks
as those associated with direct investment in foreign securities. In addition, the underlying issuers of certain depositary receipts,
particularly unsponsored or unregistered depositary receipts, are under no obligation to distribute shareholder communications to the
holders of such receipts or to pass through to them any voting rights with respect to the deposited securities. The Fund may therefore
receive less timely information or have less control than if it invested directly in the foreign issuer.
Small-
and Mid-Capitalization Companies Risk. Investing in securities
of small- and mid-capitalization companies involves greater risk than customarily is associated with investing in larger, more established
companies. Stocks of small- and mid-capitalization companies tend to be more vulnerable to changing market conditions, may have little
or no operating history or track record of success, and may have more limited product lines and markets, less experienced management and
fewer financial resources than larger companies. These companies’ securities may be more volatile and less liquid than those of
more established companies. They may be more sensitive to changes in a company’s earnings expectations and may experience more abrupt
and erratic price movements. Smaller companies’ securities often trade in lower volumes and in many instances, are traded over-the-counter
or on a regional securities exchange, where the frequency and volume of trading is substantially less than is typical for securities of
larger companies traded on national securities exchanges. Therefore, the securities of smaller companies may be subject to wider price
fluctuations and it might be harder for the Fund to dispose of its holdings at an acceptable price when it wants to sell them. In addition,
investors might seek to trade Fund shares based on their knowledge or understanding of the value of smaller company securities (this is
sometimes referred to as “price arbitrage”), which could interfere with the efficient management of the Fund. Since small
and mid-cap companies typically reinvest a high proportion of their earnings in their business, they may not pay dividends for some time,
particularly if they are newer companies. It may take a substantial period of time to realize a gain on an investment in a small- or mid-cap
company, if any gain is realized at all. The relative sizes of companies may change over time as the securities market changes, and the
Fund is not required to sell the securities of companies whose market capitalizations have grown or decreased due to market fluctuations.
Sector
Focus Risk. The Fund may from time to time have a significant amount
of its assets invested in one market sector or group of related industries. The prices of stocks of issuers in a sector or group of industries
may go up and down in response to changes in economic conditions,
government regulations, availability of basic resources or supplies, or other events that affect that industry or sector more than others.
In this event, the Fund’s performance will depend to a greater extent on the overall condition of the sector or group of industries
and there is increased risk that the Fund will lose significant value if conditions adversely affect that sector or group of industries.
Information about the Fund’s investment in a market sector or group of industries is available in its annual and semi-annual reports
to shareholders and in its reports on Form N-PORT filed with the SEC.
REIT
Risk/Real Estate Risk. Investments in real estate related instruments
may be adversely affected by economic, legal, cultural, environmental or technological factors that affect property values, rents or occupancies.
Real estate companies, including REITs or similar structures, tend to be small- and mid-cap companies and their shares may be more volatile
and less liquid than larger companies. The value of investments in
real estate
related companies may be affected by the quality of management, the ability to repay loans, the utilization of leverage and financial
covenants related thereto, whether the company carries adequate insurance and environmental factors. If a real estate related company
defaults on certain types of debt obligations held by the Fund, the Fund may acquire real estate directly, which involves additional risks
such as environmental liabilities; difficulty in valuing and selling the real estate; and economic or regulatory changes.
Derivatives
Risk. A derivative is an instrument whose value depends largely
on (and is derived from) the value of an underlying security, currency, commodity, interest rate, index or other asset (each referred
to as an underlying asset). In addition to risks relating to the underlying assets, the use of derivatives may include other, possibly
greater, risks, which are described below.
◾
Counterparty
Risk. Certain derivatives do not trade on an established exchange
(referred to as over-the-counter (OTC) derivatives) and are simply financial contracts between the Fund and a counterparty. When the Fund
is owed money on an OTC derivative, the Fund is dependent on the counterparty to pay or, in some cases, deliver the underlying asset,
unless the Fund can otherwise sell its derivative contract to a third party prior to its expiration. Many counterparties are financial
institutions such as banks and broker-dealers and their creditworthiness (and ability to pay or perform) may be negatively impacted by
factors affecting financial institutions generally. In addition, in the event that a counterparty becomes bankrupt or insolvent, the Fund’s
ability to recover the collateral that the Fund has on deposit with the counterparty could be delayed or impaired. For derivatives traded
on a centralized exchange, the Fund generally is dependent upon the solvency of the relevant exchange clearing house (which acts as a
guarantor for each contractual obligation under such derivatives) for payment on derivative instruments for which the Fund is owed money.
◾
Leverage
Risk. Many derivatives do not require a payment up front equal
to the economic exposure created by holding a position in the derivative, which creates a form of leverage. As a result, an adverse change
in the value of the underlying asset could result in the Fund sustaining a loss that is substantially greater than the amount invested
in the derivative or the anticipated value of the underlying asset. In addition,
some derivatives have the potential for unlimited loss, regardless
of the size of the Fund’s initial investment. Leverage may therefore make the Fund’s returns more volatile and increase
the risk of loss. In certain market conditions, losses on derivative
instruments can grow larger while the value of the Fund’s other assets fall, resulting in the Fund’s derivative positions
becoming a larger percentage of the Fund’s investments.
◾
Liquidity
Risk. There is a smaller pool of buyers and sellers for certain
derivatives, particularly OTC derivatives, than more traditional investments such as stocks. These buyers and sellers are often financial
institutions that may be unable or unwilling to buy or sell derivatives during times of financial or market stress. Derivative instruments
may therefore be less liquid than more traditional investments and the Fund may be unable to sell or exit its derivative positions at
a desirable time or price. This risk may be more acute under adverse market conditions, during which the Fund may be most in need of liquidating
its derivative positions. To the extent that the Fund is unable to exit a derivative position because of market illiquidity, the Fund
may not be able to prevent further losses of value in its derivatives holdings and the liquidity of the Fund and its ability to meet redemption
requests may be impaired to the extent that a substantial portion of the Fund’s otherwise liquid assets must be used as margin.
Another consequence of illiquidity is that the Fund may be required to hold a derivative instrument to maturity and take or make delivery
of the underlying asset that the Adviser would otherwise avoid.
6 Invesco
Growth and Income Fund
◾
Forward
Foreign Currency Contracts Risk. Forward foreign currency contracts
are used to lock in the U.S. dollar price of a security denominated in a foreign currency or protect against possible losses from changes
in the relative value of the U.S. dollar against a foreign currency. They are subject to the risk that anticipated currency movements
will not be accurately predicted or do not correspond accurately to changes in the value of the fund's holdings, which could result in
losses and additional transaction costs. The use of forward contracts could reduce performance if there are unanticipated changes in currency
prices. A contract to sell a foreign currency would limit any potential gain that might be realized if the value of the currency increases.
A forward foreign currency contract may also result in losses in the event of a default or bankruptcy of the counterparty.
◾
Futures
Contracts Risk. The volatility of futures contracts prices has
been historically greater than the volatility of stocks and bonds. The liquidity of the futures market depends on participants entering
into offsetting transactions rather than making or taking delivery. To the extent participants decide to make or take delivery, liquidity
in the futures market could be reduced. In addition, futures exchanges often impose a maximum permissible price movement on each futures
contract for each trading session. The Fund may be disadvantaged if it is prohibited from executing a trade outside the daily permissible
price movement.
◾
Options
Risk. If the Fund sells a put option, there is a risk that the
Fund may be required to buy the underlying investment at a disadvantageous price. If the Fund sells a call option, there is a risk that
the Fund may be required to sell the underlying investment at a disadvantageous price. If the Fund sells a call option on an investment
that the Fund owns (a “covered call”) and the investment has increased in value when the option is exercised, the Fund will
be required to sell the investment at the call price and will not be able to realize any of the investment’s value above the call
price. Options may involve economic leverage, which could result in greater price volatility than other investments.
◾
Other
Risks. Compared to other types of investments, derivatives may
be harder to value and may also be less tax efficient, as described under the “Taxes” section of the prospectus. In addition,
changes in government regulation of derivative instruments could affect the character, timing and amount of the Fund’s taxable income
or gains, and may limit or prevent the Fund from using certain types of derivative instruments as a part of its investment strategy, which
could make the investment strategy more costly to implement or require the Fund to change its investment strategy. Derivatives strategies
may not always be successful. For example, to the extent that the Fund uses derivatives for hedging or to gain or limit exposure to a
particular market or market segment, there may be imperfect correlation between the value of the derivative instrument and the value of
the instrument being hedged or the relevant market or market segment, in which case the Fund may not realize the intended benefits. There
is also the risk that during adverse market conditions, an instrument which would usually operate as a hedge provides no hedging benefits
at all. The Fund’s use of derivatives may be limited by the requirements for taxation of the Fund as a regulated investment company.
Value
Investing Risk.
Value investing entails the risk that if the market does not recognize that a selected security is undervalued, the prices of that security
might not appreciate as anticipated. A value investing approach could also lead to acquiring fewer securities that might experience rapid
price increases during times of market advances. This could cause the investments to underperform strategies that seek capital appreciation
by employing only a growth or other non-value approach. Value investing has also gone in and out of favor during past market cycles and
is likely to continue to do so. During periods when value investing is out of favor or
when markets
are unstable, the securities of “value” companies may underperform the securities of “growth” companies or the
overall stock market.
Management
Risk. The Fund is actively managed and depends heavily on the Adviser’s
judgment about markets, interest rates or the attractiveness, relative values, liquidity, or potential appreciation of particular investments
made for the Fund’s portfolio. The Fund could experience losses if these judgments prove to be incorrect. There can be no guarantee
that the Adviser’s investment techniques or investment decisions will produce the desired results. Additionally, legislative, regulatory,
or tax developments may affect the investments or investment strategies available to the Adviser in connection with managing the Fund,
which may also adversely affect the ability of the Fund to achieve its investment objective.
Portfolio
Holdings
A description
of Fund policies and procedures with respect to the disclosure of Fund portfolio holdings is available in the SAI, which is available
at www.invesco.com/us.
Fund Management
The
Adviser(s)
Invesco
serves as the Fund’s investment adviser. The Adviser manages the investment operations of the Fund as well as other investment portfolios
that encompass a broad range of investment objectives, and has agreed to perform or arrange for the performance of the Fund’s day-to-day
management. The Adviser is located at 1555 Peachtree Street, N.E., Atlanta, Georgia 30309. The Adviser, as successor in interest to multiple
investment advisers, has been an investment adviser since 1976.
Sub-Advisers.
Invesco has entered into one or more Sub-Advisory Agreements with certain affiliates to serve as sub-advisers to the Fund (the Sub-Advisers).
Invesco may appoint the Sub-Advisers from time to time to provide discretionary investment management services, investment advice, and/or
order execution services to the Fund. The Sub-Advisers and the Sub-Advisory Agreements are described in the SAI.
Exclusion
of Adviser from Commodity Pool Operator Definition
With
respect to the Fund, the Adviser has claimed an exclusion from the definition of “commodity pool operator” (CPO) under the
Commodity Exchange Act (CEA) and the rules of the Commodity Futures Trading Commission (CFTC) and, therefore, is not subject to CFTC registration
or regulation as a CPO. In addition, the Adviser is relying upon a related exclusion from the definition of “commodity trading advisor”
(CTA) under the CEA and the rules of the CFTC with respect to the Fund.
The
terms of the CPO exclusion require the Fund, among other things, to
adhere to certain limits on its investments in “commodity interests.” Commodity interests include commodity futures, commodity
options and swaps, which in turn include non-deliverable forwards. The Fund is permitted to invest in these instruments as further described
in the Fund’s SAI. However, the Fund is not intended as a vehicle for trading in the commodity futures, commodity options or swaps
markets. The CFTC has neither reviewed nor approved the Adviser’s reliance on these exclusions, or the Fund, its investment strategies
or this prospectus.
Adviser
Compensation
During
the fiscal year ended August 31, 2022, the Adviser received compensation of 0.36% of the Fund’s average daily net assets, after
fee waiver and/or expense reimbursement, if any.
A
discussion regarding the basis for the Board’s approval of the investment
advisory agreement and investment sub-advisory agreements of the Fund is available in the Fund’s most recent annual or semi-annual
report to shareholders.
7 Invesco
Growth and Income Fund
Portfolio
Managers
The
following individuals are jointly and primarily responsible for the day-to-day management of the Fund’s portfolio:
◾
Brian
Jurkash (co-lead manager), Portfolio Manager, who has been responsible for the Fund since 2015 and has been associated with Invesco and/or
its affiliates since 2000.
◾
Matthew
Titus,
CFA (co-lead manager), Portfolio Manager, who has been responsible for the Fund since 2016 and has been associated with Invesco and/or
its affiliates since 2016. From 2004 to 2016, he was employed by American Century Investments, where he served as co-manager of the firm's
relative value fund and most recently served as lead manager of such fund.
◾
Sergio
Marcheli, Portfolio Manager, who has been responsible for the Fund since 2010 and has been associated with Invesco and/or its affiliates
since 2010. Mr. Marcheli served as Portfolio Manager of the predecessor fund since 2003.
A
lead or co-lead manager generally has final authority over all
aspects of the Fund’s investment portfolio, including but not limited to, purchases and sales of individual securities, portfolio
construction techniques, portfolio risk assessment, and the management of daily cash flows in accordance with portfolio holdings. The
degree to which a lead or co-lead manager may perform these functions, and the nature of these functions, may change from time to time.
More
information on the portfolio managers may be found at www.invesco.com/us.
The website is not part of this prospectus.
The
Fund’s SAI provides additional information about the portfolio managers’
investments in the Fund, a description of the compensation structure and information regarding other accounts managed.
Other Information
Sales
Charges
Purchases
of Class A shares of the Fund are subject to the maximum 5.50% initial sales charge as listed under the heading “Category I Initial
Sales Charges” in the “Shareholder Account Information—Initial Sales Charges (Class A Shares Only)” section of
the prospectus. Purchases of Class C shares are subject to a contingent deferred sales charge (CDSC) if you sell Class C shares within
one year of purchase; however, the CDSC shall not apply to the purchases of Class C shares where the selling broker-dealer was not paid
a commission at the time of purchase. For more information on CDSCs, see the “Shareholder Account Information—Contingent Deferred
Sales Charges (CDSCs)” section of this prospectus.
Dividends
and Distributions
The
Fund expects, based on its investment objective and strategies, that its distributions, if any, will consist of ordinary income, capital
gains or some combination of both.
Dividends
The
Fund generally declares and pays dividends from net investment income, if any, quarterly.
Capital
Gains Distributions
The
Fund generally distributes long-term and short-term capital gains (net of any available capital loss carryovers), if any, at least annually.
Capital gains distributions may vary considerably from year to year as a result of the Fund's normal investment activities and cash flows.
During a time of economic volatility, the Fund may experience capital losses and unrealized depreciation in value of investments, the
effect of which may be to reduce or eliminate capital gains distributions for a period of time. Even though the Fund may experience a
current year loss, it may nonetheless distribute prior year capital gains.
8 Invesco
Growth and Income Fund
Financial Highlights
The financial
highlights show the Fund’s financial history for the past five fiscal years or, if shorter, the period of operations of the Fund
or any of its share classes. The financial highlights table is intended to help you understand the Fund’s financial performance.
Certain information reflects financial results for a single Fund share.
The
total returns in the table represent the rate that an investor would have
earned (or lost) on an investment in the Fund (assuming reinvestment of all dividends and distributions).
This
information has been audited by PricewaterhouseCoopers LLP, an independent
registered public accounting firm, whose report, along with the Fund’s financial statements, is included in the Fund’s annual
report, which is available upon request.
|
|
Net
asset
value,
beginning
of
period |
Net
investment
income(a)
|
Net
gains
(losses)
on
securities
(both
realized
and
unrealized)
|
Total
from
investment
operations
|
Dividends
from
net
investment
income
|
Distributions
from
net
realized
gains
|
Total
distributions
|
Net
asset
value,
end
of
period |
Total
return
(b)
|
Net
assets,
end
of period
(000's
omitted) |
Ratio
of
expenses
to
average
net
assets
with
fee waivers
and/or
expenses
absorbed
|
Ratio
of
expenses
to
average net
assets
without
fee
waivers
and/or
expenses
absorbed
|
Ratio
of net
investment
income
to
average
net
assets |
Portfolio
turnover
(c)
|
|
Class
A | ||||||||||||||
|
Year
ended 08/31/22 |
$28.10
|
$0.32
|
$(1.13)
|
$(0.81)
|
$(0.29)
|
$(4.80)
|
$(5.09)
|
$22.20
|
(3.90)%
|
$2,499,911
|
0.78%
|
0.78%
|
1.28%
|
23%
|
|
Year
ended 08/31/21 |
20.01
|
0.30
|
8.63
|
8.93
|
(0.35)
|
(0.49)
|
(0.84)
|
28.10
|
45.62
|
2,844,145
|
0.80
|
0.80
|
1.22
|
33
|
|
Year
ended 08/31/20 |
22.89
|
0.41
|
(1.24)
|
(0.83)
|
(0.44)
|
(1.61)
|
(2.05)
|
20.01
|
(4.39)
|
2,609,002
|
0.81
|
0.81
|
1.97
|
26
|
|
Year
ended 08/31/19 |
27.50
|
0.44
|
(2.02)
|
(1.58)
|
(0.43)
|
(2.60)
|
(3.03)
|
22.89
|
(4.99)
|
3,386,466
|
0.81
|
0.81
|
1.84
|
23
|
|
Year
ended 08/31/18 |
27.42
|
0.40
|
2.76
|
3.16
|
(0.52)
|
(2.56)
|
(3.08)
|
27.50
|
11.96
|
3,954,641
|
0.80
|
0.80
|
1.44
|
29
|
|
| ||||||||||||||
|
Class
C | ||||||||||||||
|
Year
ended 08/31/22 |
27.69
|
0.13
|
(1.09)
|
(0.96)
|
(0.16)
|
(4.80)
|
(4.96)
|
21.77
|
(4.58)(d)
|
32,497
|
1.52(d)
|
1.52(d)
|
0.54(d)
|
23
|
|
Year
ended 08/31/21 |
19.73
|
0.12
|
8.51
|
8.63
|
(0.18)
|
(0.49)
|
(0.67)
|
27.69
|
44.53(d)
|
39,357
|
1.50(d)
|
1.50(d)
|
0.52(d)
|
33
|
|
Year
ended 08/31/20 |
22.57
|
0.25
|
(1.20)
|
(0.95)
|
(0.28)
|
(1.61)
|
(1.89)
|
19.73
|
(5.05)
|
38,808
|
1.56
|
1.56
|
1.22
|
26
|
|
Year
ended 08/31/19 |
27.15
|
0.27
|
(2.00)
|
(1.73)
|
(0.25)
|
(2.60)
|
(2.85)
|
22.57
|
(5.67)(d)
|
76,522
|
1.53(d)
|
1.53(d)
|
1.12(d)
|
23
|
|
Year
ended 08/31/18 |
27.09
|
0.19
|
2.74
|
2.93
|
(0.31)
|
(2.56)
|
(2.87)
|
27.15
|
11.17(d)
|
243,564
|
1.53(d)
|
1.53(d)
|
0.71(d)
|
29
|
|
| ||||||||||||||
|
Class
R | ||||||||||||||
|
Year
ended 08/31/22 |
28.13
|
0.25
|
(1.13)
|
(0.88)
|
(0.22)
|
(4.80)
|
(5.02)
|
22.23
|
(4.14)
|
51,354
|
1.03
|
1.03
|
1.03
|
23
|
|
Year
ended 08/31/21 |
20.03
|
0.24
|
8.64
|
8.88
|
(0.29)
|
(0.49)
|
(0.78)
|
28.13
|
45.26
|
60,808
|
1.05
|
1.05
|
0.97
|
33
|
|
Year
ended 08/31/20 |
22.90
|
0.36
|
(1.23)
|
(0.87)
|
(0.39)
|
(1.61)
|
(2.00)
|
20.03
|
(4.60)
|
61,342
|
1.06
|
1.06
|
1.72
|
26
|
|
Year
ended 08/31/19 |
27.52
|
0.38
|
(2.03)
|
(1.65)
|
(0.37)
|
(2.60)
|
(2.97)
|
22.90
|
(5.27)
|
84,224
|
1.06
|
1.06
|
1.59
|
23
|
|
Year
ended 08/31/18 |
27.43
|
0.33
|
2.77
|
3.10
|
(0.45)
|
(2.56)
|
(3.01)
|
27.52
|
11.71
|
115,360
|
1.05
|
1.05
|
1.19
|
29
|
|
| ||||||||||||||
|
Class
Y | ||||||||||||||
|
Year
ended 08/31/22 |
28.12
|
0.38
|
(1.12)
|
(0.74)
|
(0.36)
|
(4.80)
|
(5.16)
|
22.22
|
(3.63)
|
427,166
|
0.53
|
0.53
|
1.53
|
23
|
|
Year
ended 08/31/21 |
20.03
|
0.36
|
8.63
|
8.99
|
(0.41)
|
(0.49)
|
(0.90)
|
28.12
|
45.94
|
517,664
|
0.55
|
0.55
|
1.47
|
33
|
|
Year
ended 08/31/20 |
22.91
|
0.47
|
(1.24)
|
(0.77)
|
(0.50)
|
(1.61)
|
(2.11)
|
20.03
|
(4.12)
|
477,858
|
0.56
|
0.56
|
2.22
|
26
|
|
Year
ended 08/31/19 |
27.53
|
0.50
|
(2.03)
|
(1.53)
|
(0.49)
|
(2.60)
|
(3.09)
|
22.91
|
(4.78)
|
938,866
|
0.56
|
0.56
|
2.09
|
23
|
|
Year
ended 08/31/18 |
27.44
|
0.47
|
2.77
|
3.24
|
(0.59)
|
(2.56)
|
(3.15)
|
27.53
|
12.27
|
1,266,205
|
0.55
|
0.55
|
1.69
|
29
|
|
| ||||||||||||||
|
Class
R5 | ||||||||||||||
|
Year
ended 08/31/22 |
28.16
|
0.39
|
(1.13)
|
(0.74)
|
(0.37)
|
(4.80)
|
(5.17)
|
22.25
|
(3.62)
|
397,345
|
0.48
|
0.48
|
1.58
|
23
|
|
Year
ended 08/31/21 |
20.06
|
0.38
|
8.64
|
9.02
|
(0.43)
|
(0.49)
|
(0.92)
|
28.16
|
46.04
|
438,989
|
0.47
|
0.47
|
1.55
|
33
|
|
Year
ended 08/31/20 |
22.94
|
0.49
|
(1.24)
|
(0.75)
|
(0.52)
|
(1.61)
|
(2.13)
|
20.06
|
(4.03)
|
443,315
|
0.48
|
0.48
|
2.30
|
26
|
|
Year
ended 08/31/19 |
27.56
|
0.52
|
(2.03)
|
(1.51)
|
(0.51)
|
(2.60)
|
(3.11)
|
22.94
|
(4.70)
|
746,385
|
0.48
|
0.48
|
2.17
|
23
|
|
Year
ended 08/31/18 |
27.47
|
0.49
|
2.77
|
3.26
|
(0.61)
|
(2.56)
|
(3.17)
|
27.56
|
12.35
|
932,196
|
0.48
|
0.48
|
1.76
|
29
|
|
| ||||||||||||||
|
Class
R6 | ||||||||||||||
|
Year
ended 08/31/22 |
28.16
|
0.41
|
(1.13)
|
(0.72)
|
(0.39)
|
(4.80)
|
(5.19)
|
22.25
|
(3.55)
|
931,558
|
0.41
|
0.41
|
1.65
|
23
|
|
Year
ended 08/31/21 |
20.06
|
0.39
|
8.65
|
9.04
|
(0.45)
|
(0.49)
|
(0.94)
|
28.16
|
46.16
|
1,102,312
|
0.40
|
0.40
|
1.62
|
33
|
|
Year
ended 08/31/20 |
22.94
|
0.50
|
(1.23)
|
(0.73)
|
(0.54)
|
(1.61)
|
(2.15)
|
20.06
|
(3.93)
|
1,147,101
|
0.39
|
0.39
|
2.39
|
26
|
|
Year
ended 08/31/19 |
27.57
|
0.54
|
(2.04)
|
(1.50)
|
(0.53)
|
(2.60)
|
(3.13)
|
22.94
|
(4.64)
|
1,494,527
|
0.38
|
0.38
|
2.27
|
23
|
|
Year
ended 08/31/18 |
27.48
|
0.51
|
2.77
|
3.28
|
(0.63)
|
(2.56)
|
(3.19)
|
27.57
|
12.46
|
1,666,520
|
0.38
|
0.38
|
1.86
|
29
|
|
| ||||||||||||||
|
(a)
|
Calculated
using average shares outstanding. |
|
(b)
|
Includes
adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value
for financial reporting purposes and the returns
based
upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges
and is not annualized for periods less than one
year,
if applicable. |
|
(c)
|
Portfolio
turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
|
(d)
|
The
total return, ratio of expenses to average net assets and ratio of net investment income to average net assets reflect actual 12b-1 fees
of 0.99%, 0.95%, 0.96% and 0.98% for the years
ended
August 31, 2022, 2021, 2019 and 2018, respectively. |
9 Invesco
Growth and Income Fund
Shareholder Account Information
In addition
to the Fund(s), the Adviser serves as investment adviser to many other Invesco mutual funds that are offered to investors (Invesco Funds
or Funds). The following information is about all of the Invesco Funds and their share classes that have different fees and expenses.
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 |
|
|
▪ 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) |
A-1 The
Invesco Funds
MCF—12/22
|
Share
Classes |
|
|
|
|
|
Class
A |
Class
C |
Class
R |
Class
Y |
Class
R5 and R6 |
|
|
▪ 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 International Core Equity 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 a specific
Fund may make additional purchases into Class AX and CX, respectively, of such specific Fund. All references in this “Shareholder
Account Information” section of this prospectus to Class A, C or R shares of the Invesco Funds shall include Class AX
(excluding Invesco Government Money Market Fund), or CX shares, respectively, of the Invesco Funds, unless otherwise noted. All references
in this “Shareholder Account Information” section of this prospectus to Invesco Cash Reserve Shares of Invesco Government
Money Market Fund shall include Class AX shares of Invesco Government Money Market Fund, unless otherwise noted.
Class P
Shares
In
addition to the other share classes discussed herein, the Invesco Summit Fund offers Class P shares, which were historically sold
only through the AIM Summit Investors Plans I and II (each a Plan and, collectively, the Summit Plans). Class P shares are sold with
no initial sales charge and have a 12b-1 fee of 0.10%. However, Class P shares are not sold to members of the general public. Only
shareholders who had accounts in the Summit Plans at the close of business on December 8, 2006 may purchase Class P shares and
only until the total of their combined investments in the Summit Plans and in Class P shares directly equals the face amount of their
former Plan under the 30 year extended investment option. The face amount of a Plan is the combined total of all scheduled monthly
investments under the Plan. For a Plan with a scheduled monthly investment of $100.00, the face amount would have been $36,000.00 under
the 30 year extended investment option.
Class R
Shares
Class R
shares are intended for 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 (except for the Invesco Master Loan Fund) are available for use by Employer Sponsored Retirement and Benefit
Plans, held either at the plan level or through omnibus accounts, that generally process no more than one net redemption and one net purchase
transaction each day.
Class
R5 and R6 shares of the Funds are also available to institutional investors.
Institutional investors are: banks, trust companies, collective trust funds, entities acting for the account of a public entity (e.g.,
Taft-Hartley funds, states, cities or government agencies), funds of funds or other pooled investment vehicles, 529 college savings plans,
financial intermediaries and corporations investing for their own accounts, endowments and foundations. For information regarding investment
minimums for Class R5 and R6 shares, please see “Minimum Investments” below.
Class
R6 shares of the Funds are also available through an intermediary that
has agreed with Invesco Distributors, Inc. to make such shares
A-2 The
Invesco Funds
available
for use in retail omnibus accounts that generally process no more than one net redemption and one net purchase transaction each day.
The
Invesco Master Loan Fund is only available for purchase by other Funds
in the Invesco fund family and other Invesco pooled investment vehicles.
Shareholders
eligible to purchase Class R6 Shares must meet the requirements
specified by their intermediary. Not all intermediaries offer Class R6 Shares to their customers.
Class S
Shares
Class S
shares are limited to investors who purchase shares with the proceeds received from a systematic contractual investment plan redemption
within the 12 months prior to purchasing Class S shares, and who purchase through an approved financial intermediary that has
an agreement with the distributor to sell Class S shares. Class S shares are not otherwise sold to members of the general public.
An investor purchasing Class S shares will not pay an initial sales charge. The investor will no longer be eligible to purchase additional
Class S shares at that point where the value of the contributions to the prior systematic contractual investment plan combined with
the subsequent Class S share contributions equals the face amount of what would have been the investor’s systematic contractual
investment plan under the 30-year investment option. The face amount of a systematic contractual investment plan is the combined total
of all scheduled monthly investments under that plan. For a plan with a scheduled monthly investment of $100.00, the face amount would
have been $36,000.00 under the 30-year extended investment option.
Class Y
Shares
Class
Y shares are available to (i) investors who purchase through an account that is charged an asset-based fee or commission by a financial
intermediary, including through brokerage platforms, where a broker is acting as the investor’s agent, that may require the payment
by the investor of a commission and/or other form of compensation to that broker, (ii) endowments, foundations, or Employer Sponsored
Retirement and Benefit Plans (with the exception of “Solo 401(k)” Plans and 403(b) custodial accounts held directly at Invesco),
(iii) banks or bank trust departments acting on their own behalf or as trustee or manager for trust accounts, or (iv) any current, former
or retired trustee, director, officer or employee (or immediate family members of a current, former or retired trustee, director, officer
or employee) of any Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
Subject
to any conditions or limitations imposed on the servicing of Class
Y shares by your financial adviser, if you received Class Y shares as a result of a merger or reorganization of a predecessor fund into
any of the Funds, you will be permitted to make additional Class Y share purchases. In addition, you will be permitted to make additional
Class Y shares purchases if you owned Class Y shares in a “Solo 401(k)” Plan or 403(b) custodial account held directly at
Invesco if you held such shares in your account on or prior to May 24, 2019.
Investor
Class Shares
Investor
Class shares are sold with no initial sales charge and have a maximum 12b-1 fee of 0.25%. Only the following persons may purchase Investor
Class shares:
◾
Investors
who established accounts prior to April 1, 2002, in Investor Class shares with Invesco Distributors, Inc. (Invesco Distributors) who have
continuously maintained an account in Investor Class shares (this includes anyone listed in the registration of an account, such as a
joint owner, trustee or custodian, and immediate family members of such persons) without a designated intermediary. These investors are
referred to as “Investor Class grandfathered investors.”
◾
Customers
of a financial intermediary that has had an agreement with the Funds’ distributor or any Funds that offered Investor Class shares
prior to April 1, 2002, that has continuously maintained such agreement. These intermediaries are referred to as “Investor
Class grandfathered intermediaries.”
◾
Any
current, former or retired trustee, director, officer or employee (or immediate family member of a current, former or retired trustee,
director, officer or employee) of any Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
For
additional shareholder eligibility requirements with respect to Invesco
Premier Portfolio, please see “Shareholder Account Information – Purchasing Shares and Shareholder Eligibility – Invesco
Premier Portfolio.”
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.
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 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
A-4 The
Invesco Funds
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.
Merrill
Lynch
Shareholders
purchasing Fund shares through a Merrill
Lynch platform
or account will be eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at Merrill Lynch
◾
Employer-sponsored
retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to fund those plans,
provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the plan;
◾
Shares
purchased by a 529 Plan (does not include 529 Plan unit or 529-specific share classes or equivalents);
◾
Shares
purchased through a Merrill Lynch affiliated investment advisory program;
◾
Shares
exchanged due to the holdings moving from a Merrill Lynch affiliated investment advisory program to a Merrill Lynch brokerage (non-advisory)
account pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers;
◾
Shares
purchased by third party investment advisors on behalf of their advisory clients through Merrill Lynch’s platform;
◾
Shares
of funds purchased through the Merrill Edge Self-Directed platform (if applicable);
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not
any other fund within the fund family);
◾
Shares
exchanged from Class C (i.e.
level-load) shares of the same fund pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers;
◾
Employees
and registered representatives of Merrill Lynch or its affiliates and their family members;
◾
Directors
or Trustees of the Fund, and employees of the Fund’s investment adviser or any of its affiliates, as described in this prospectus;
and
◾
Eligible
shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days
following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to
a front-end or deferred sales load (known as Rights of Reinstatement). Automated transactions (i.e. systematic purchases and withdrawals)
and purchases made after shares are automatically sold to pay Merrill Lynch’s account maintenance fees are not eligible for reinstatement.
◾
CDSC
Waivers on A and C Shares available at Merrill Lynch
◾
Death
or disability of the shareholder;
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund’s prospectus;
◾
Return
of excess contributions from an IRA Account;
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts pursuant to the Internal Revenue Code;
◾
Shares
sold to pay Merrill Lynch fees but only if the transaction is initiated by Merrill Lynch;
◾
Shares
acquired through a right of reinstatement;
◾
Shares
held in retirement brokerage accounts, that are converted to a lower cost share class due to transfer to a fee based account or platform
(applicable to A and C shares only); and
◾
Shares
received through an exchange due to the holdings moving from a Merrill Lynch affiliated investment advisory program to a Merrill Lynch
brokerage (non-advisory) account pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers.
◾
Front-end
load Discounts Available at Merrill Lynch: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this prospectus;
◾
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts as described in the Fund’s prospectus will be automatically
calculated based on the aggregated holding of fund family assets held by accounts (including 529 program holdings, where applicable) within
the purchaser’s household at Merrill Lynch. Eligible fund family assets not held at Merrill Lynch may be included in the ROA calculation
only if the shareholder notifies his or her financial advisor about such assets; and
◾
Letters
of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Merrill Lynch, over
a 13-month period of time (if applicable).
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).
A-5 The
Invesco Funds
Morgan
Stanley Wealth Management
Shareholders
purchasing Fund shares through a Morgan Stanley
Wealth Management transactional brokerage account will be eligible
only for the following front-end sales charge waivers with respect to Class A shares, which may differ from and may be more limited than
those disclosed elsewhere in this Fund’s Prospectus or SAI.
◾
Front-end
Sales Charge Waivers on Class A Shares available at Morgan Stanley Wealth Management
◾
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and
defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs, SAR-SEPs
or Keogh plans;
◾
Morgan
Stanley employee and employee-related accounts according to Morgan Stanley’s account linking rules;
◾
Shares
purchased through reinvestment of dividends and capital gains distributions when purchasing shares of the same fund;
◾
Shares
purchased through a Morgan Stanley self-directed brokerage account;
◾
Class
C (i.e., level-load) shares that are no longer subject to a contingent deferred sales charge and are converted to Class A shares of the
same fund pursuant to Morgan Stanley Wealth Management’s share class conversion program; and
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (i) the repurchase occurs within 90 days following the
redemption, (ii) the redemption and purchase occur in the same account, and (iii) redeemed shares were subject to a front-end or deferred
sales charge.
Raymond
James Financial Services, Inc.
Shareholders
purchasing Fund shares through a Raymond
James Financial Services, Inc., Raymond James affiliates and each
entity’s affiliates (Raymond James) platform or account, or through an introducing broker-dealer or independent registered investment
adviser for which Raymond James provides trade execution, clearance, and/or custody services, will be eligible only for the following
load waivers (front-end sales charge waivers and contingent deferred, or back-end, sales charge waivers) and discounts, which may differ
from those disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
sales load waivers on Class A shares available at Raymond James
◾
Shares
purchased in an investment advisory program.
◾
Shares
purchased within the same fund family through a systematic reinvestment of capital gains distributions and dividend distributions.
◾
Employees
and registered representatives of Raymond James or its affiliates and their family members as designated by Raymond James.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (known as Rights of Reinstatement).
◾
A
shareholder in the Fund’s Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate
share class) of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures
of Raymond James.
◾
CDSC
Waivers on Classes A and C shares available at Raymond James
◾
Death
or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the fund’s prospectus.
◾
Return
of excess contributions from an IRA Account.
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based
on applicable IRS regulations as described in the fund’s prospectus.
◾
Shares
sold to pay Raymond James fees but only if the transaction is initiated by Raymond James.
◾
Shares
acquired through a right of reinstatement.
◾
Front-end
load discounts available at Raymond James: breakpoints, rights of accumulation, and/or letters of intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of
fund family assets held by accounts within the purchaser’s household at Raymond James. Eligible fund family assets not held at Raymond
James may be included in the calculation of rights of accumulation only if the shareholder notifies his or her financial advisor about
such assets.
◾
Letters
of intent which allow for breakpoint discounts based on anticipated purchases within a fund family, over a 13-month time period. Eligible
fund family assets not held at Raymond James may be included in the calculation of letters of intent only if the shareholder notifies
his or her financial advisor about such assets.
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.
A-6 The
Invesco Funds
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.
◾
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.
Oppenheimer
& Co. Inc. (“OPCO”)
Shareholders
purchasing Fund shares through an OPCO
platform or account are eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund's prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at OPCO
◾
Employer-sponsored
retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to
fund
those plans, provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the
plan
◾
Shares
purchased by or through a 529 Plan
◾
Shares
purchased through an OPCO affiliated investment advisory program
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not
any other fund within the fund family)
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (known as Rights of Reinstatement).
◾
A
shareholder in the Fund's Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate share
class) of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures of OPCO
◾
Employees
and registered representatives of OPCO or its affiliates and their family members
◾
Directors
or Trustees of the Fund, and employees of the Fund's investment adviser or any of its affiliates, as described in this prospectus
◾
CDSC
Waivers on A and C Shares available at OPCO
◾
Death
or disability of the shareholder
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund's prospectus
◾
Return
of excess contributions from an IRA Account
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based
on applicable IRS regulations as described in the prospectus
◾
Shares
sold to pay OPCO fees but only if the transaction is initiated by OPCO Shares acquired through a right of reinstatement
◾
Front-end
load Discounts Available at OPCO: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding
of fund family assets held by accounts within the purchaser's household at OPCO. Eligible fund family assets not held at OPCO may be included
in the ROA calculation only if the shareholder notifies his or her financial advisor about such assets.
Robert
W. Baird & Co. Incorporated (“Baird”)
Shareholders
purchasing fund shares through a Baird
platform or account will only be eligible for the following sales charge waivers (front-end sales charge waivers and CDSC waivers) and
discounts, which may differ from those disclosed elsewhere in this prospectus or the SAI.
◾
Front-End
Sales Charge Waivers on Class A-shares Available at Baird
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund.
◾
Shares
purchased by employees and registered representatives of Baird or its affiliate and their family members as designated by Baird.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales charge (known as rights of reinstatement).
◾
A
shareholder in the Fund’s Class C Shares will have their shares converted at net asset value to Class A shares of the fund if the
shares are no longer subject to CDSC and the conversion is in line with the policies and procedures of Baird.
◾
Employer-sponsored
retirement plans or charitable accounts in a transactional brokerage account at Baird, including 401(k) plans, 457 plans, employer-sponsored
403(b) plans, profit sharing and money
A-7 The
Invesco Funds
purchase
pension plans and defined benefit plans. For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs,
Simple IRAs or SAR-SEPs.
◾
CDSC
Waivers on Classes A and C shares Available at Baird
◾
Shares
sold due to death or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund’s Prospectus.
◾
Return
of excess contributions from an IRA Account.
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching age 72 as described in
the Fund’s prospectus.
◾
Shares
sold to pay Baird fees but only if the transaction is initiated by Baird.
◾
Shares
acquired through a right of reinstatement.
◾
Front-End
Sales Charge Discounts Available at Baird: Breakpoints, Rights of Accumulation and/or letters of intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of
fund family assets held by accounts within the purchaser’s household at Baird. Eligible fund family assets not held at Baird may
be included in the rights of accumulation calculation only if the shareholder notifies his or her financial advisor about such assets.
◾
Letters
of Intent (LOI) allow for breakpoint discounts based on anticipated purchases of within a fund family through Baird, over a 13-month period
of time.
Edward
D. Jones & Co., L.P. (“Edward Jones”)
Policies
Regarding Transactions Through Edward Jones
The
following information has been provided by Edward Jones:
The
following information supersedes prior information with respect to transactions
and positions held in fund shares through an Edward Jones system. Shareholders purchasing Fund shares through the Edward
Jones commission
and fee-based platforms will be eligible for the following load waivers (front- end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund's prospectus or statement of additional
information (“SAI”). 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 (including holdings of 529 Plans where Invesco serves as primary distributor), 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.
◾
Front-end
sales load waivers on Class A shares available at Edward Jones
◾
Associates
of Edward Jones and its affiliates and their family members who are 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: 1) the proceeds are
from the sale of shares within 60 days of the purchase, and 2) the sale and purchase are made in the same share class and the same account
or the purchase is made in an individual retirement account with proceeds from liquidations in a non-retirement account.
◾
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.
◾
CDSC
Waivers on Classes A and C shares available at Edward Jones
◾
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
sold 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 the qualified age based on applicable IRS regulations.
◾
Shares
sold 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 Minimum Balances, as described below.
◾
Front-end
load discounts available at Edward Jones: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoint
pricing, otherwise known as volume pricing, at dollar thresholds as described in the prospectus.
◾
Rights
of Accumulation (“ROA”) which entitles the shareholder to the applicable sales charge on a purchase of Class A shares will
be determined by taking into account all share classes (except certain money market funds and any assets held in group retirement plans)
of Invesco Funds (including holdings of 529 Plans where Invesco serves as primary distributor) 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).
◾
Letters
of Intent (“LOI”) allow shareholders to receive 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.
Other
Important Information Regarding Transactions Through Edward
Jones
Minimum
Purchase Amounts
•
Initial
purchase minimum: $250
•
Subsequent
purchase minimum: none
A-8 The
Invesco Funds
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.
Stifel,
Nicolaus & Company (“Stifel”)
Shareholders
purchasing Fund shares through a Stifel
platform or account will be eligible only for the following front-end sales charge waivers and discounts, which may differ from those
disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at Stifel: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this 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 Stifel. Eligible
fund family assets not held at Stifel may be included in the ROA calculation only if the shareholder notifies his or her financial advisor
about such assets; and
◾
Letters
of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Stifel, over a 13-month
period of time (if applicable).
◾
Shares
converted from Class C (i.e. level-load) shares of the same fund pursuant to Stifel policies relating to sales load discounts and waivers.
PFS
Investments Inc. (“PFSI”)
Policies
Regarding Transactions Through PFSI
The
following information supersedes all prior information with respect to transactions and positions held in fund shares purchased through
PFSI and held on the mutual fund platform of its affiliate, Primerica Shareholder Services (“PSS”). Clients of PFSI (also
referred to as “shareholders”) purchasing fund shares on the PSS platform are eligible only for the following share classes,
sales charge discounts (also referred to as “breakpoints”) and waivers, which can differ from share classes, discounts and
waivers described elsewhere in this prospectus or the related statement of additional information (“SAI”) or through another
broker-dealer. In all instances, it is the shareholder’s responsibility to inform PFSI at the time of a purchase of all holdings
of Invesco Funds on the PSS platform, or other facts qualifying the purchaser for discounts or waivers. PFSI may request reasonable documentation
of such facts, and condition the granting of any discount or waiver on the timely receipt of such documents. Shareholders should contact
PSS if they have questions regarding their eligibility for these discounts and waivers.
Share
Classes
◾
Class
A shares: in non-retirement accounts, individual retirement accounts (IRA), SEP IRAs, SIMPLE IRAs, Keogh Plans, and all other account
types unless expressly provided for below.
◾
Class
C shares: only in accounts with existing Class C share holdings.
Breakpoints
◾
Breakpoint
pricing at dollar thresholds as described in the prospectus of the fund you are purchasing.
Rights
of Accumulation (“ROA”)
◾
The
applicable sales charge on a purchase of Class A shares is determined by taking into account all share classes (except any assets held
in group retirement plans) of Invesco Funds held by the shareholder on the PSS Platform. The inclusion of eligible fund family assets
in the ROA calculation is dependent on the shareholder notifying PFSI of such assets at the time of calculation. Shares of money market
funds are
included
only if such shares were acquired in exchange for shares of another Invesco Fund purchased with a sales charge. No shares of Invesco Funds
held by the shareholder away from the PSS platform will be granted ROA with shares of any Invesco Fund purchased on the PSS platform.
◾
Any
SEP IRA plan, any SIMPLE IRA plan or any Payroll Deduction plan (“PDP”) on the PSS platform will be defaulted to plan-level
grouping for purposes of ROA, which allows each participating employee ROA with all other eligible shares held in plan accounts on the
PSS platform. At any time, a participating employee may elect to exercise a one-time option to change grouping for purposes of ROA to
shareholder- level grouping, which allows the plan account of the electing employee ROA with her other eligible holdings on the PSS platform,
but not with all other eligible participant holdings in the plan. Eligible shares held in plan accounts electing shareholder-level grouping
will not be available for purposes of ROA to plan accounts electing plan-level grouping.
◾
ROA
is determined by calculating the higher of cost minus redemptions or current market value (current shares x NAV).
Letter
of Intent (“LOI”)
◾
By
executing a LOI, shareholders can receive the sales charge and breakpoint discounts for purchases shareholders intend to make over a 13-month
period through PFSI, from the date PSS receives the LOI. The purchase price of the LOI is determined by calculating the higher of cost
or market value of qualifying holdings at LOI initiation in combination with the dollar amount the shareholder intends to invest over
a 13-month period to arrive at total investment for purposes of determining any breakpoint discount and the applicable front-end sales
charge. Each purchase the shareholder makes during that 13-month period will receive the sales charge and breakpoint discount that applies
to the projected total investment.
◾
Only
holdings of Invesco Funds on the PSS platform are eligible for inclusion in the LOI calculation and the shareholder must notify PFSI of
all eligible assets at the time of calculation.
◾
Purchases
made before the LOI is received by PSS are not adjusted under the LOI, and the LOI will not reduce any sales charge previously paid. Sales
charges will be automatically adjusted if the total purchases required by the LOI are not met.
◾
If
an employer maintaining a SEP IRA plan, SIMPLE IRA plan or non-IRA PDP on the PSS platform has elected to establish or change ROA for
the accounts associated with the plan to a plan-level grouping, LOIs will also be at the plan-level and may only be established by the
employer. LOIs are not available to PDP IRA plans on the PSS platform with plan-level grouping for purposes of ROA, but are available
to any participating employee that elects shareholder-level grouping for purposes of ROA.
Sales
Charge Waivers
Sales
charges are waived for the following shareholders and in the following
situations:
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment.
◾
Shares
purchased with the proceeds of redeemed shares of the same fund family so long as the following conditions are met: 1) the proceeds are
from the sale of shares within 90 days of the purchase, 2) the sale and purchase are made in the same share class and the same account
or the purchase is made in an individual retirement account with proceeds from liquidations in a non-retirement account, and 3) the redeemed
shares were subject to a front-end or deferred sales load, Automated transactions (i.e. systematic purchases and withdrawals), full or
partial transfers or rollovers of retirement accounts, and purchases made after shares are automatically sold to pay account maintenance
fees are not eligible for this sales charge waiver.
◾
Shares
exchanged into Class A shares from another share class so long as the exchange is into the same fund and was initiated at the discretion
of PFSI. PFSI is responsible for any remaining CDSC due to the fund company, if applicable. Any future purchases are subject to the applicable
sales charge as disclosed in the prospectus.
Policies
Regarding Fund Purchases Through PFSI That Are Not Held
on the PSS Platform
A-9 The
Invesco Funds
◾
Class
R shares
are available through PFSI only in 401(k) plans covering a business owner with no employees, commonly referred to as a one-participant
401(k) plan or solo 401(k).
UBS
Financial Services Inc. (“UBS”)
Pursuant
to an agreement with the Distributor, UBS may offer Class Y
shares
to its retail brokerage clients whose shares are held in omnibus
accounts at UBS, or its designee. For these clients, UBS may charge commissions or transaction fees with respect to brokerage transactions
in Class Y shares. The
minimum investment for Class Y shares is waived for transactions through such brokerage platforms at UBS. Please contact your UBS representative
for more information about these fees and other eligibility requirements.
Qualifying
for Reduced Sales Charges and Sales Charge Exceptions
The
following types of accounts qualify for reduced sales charges or sales charge exceptions under ROAs and LOIs:
1.
an
individual account owner;
2.
immediate
family of the individual account owner (which includes the individual’s spouse or domestic partner; the individual’s children,
step-children or grandchildren; the spouse or domestic partner of the individual’s children, step-children or grandchildren; the
individual’s parents and step-parents; the parents or step-parents of the individual’s spouse or domestic partner; the individual’s
grandparents; and the individual’s siblings);
3.
a
Retirement and Benefit Plan so long as the plan is established exclusively for the benefit of an individual account owner; and
4.
a
Coverdell Education Savings Account (Coverdell ESA), maintained pursuant to Section 530 of the Code (in either case, the account
must be established by an individual account owner or have an individual account owner named as the beneficiary thereof).
Alternatively,
an Employer Sponsored Retirement and Benefit Plan (but not including
plans utilizing the Invesco 403(b)(7) Custodial Account program, or the individual custodial accounts thereunder) or Employer Sponsored
IRA may be eligible to purchase shares pursuant to a ROA at the plan level, and receive a reduced applicable initial sales charge for
a new purchase based on the total value of the current purchase and the value of other shares owned by the plan’s participants if:
a)
the
employer or plan sponsor submits all contributions for all participating employees in a single contribution transmittal (the Invesco Funds
will not accept separate contributions submitted with respect to individual participants);
b)
each
transmittal is accompanied by checks or wire transfers; and
c)
if
the Invesco Funds are expected to carry separate accounts in the names of each of the plan participants, (i) the employer or plan
sponsor notifies Invesco Distributors or its designee in writing that the separate accounts of all plan participants should be linked,
and (ii) all new participant accounts are established by submitting an appropriate Account Application on behalf of each new participant
with the contribution transmittal.
Participant
accounts in a retirement plan that are eligible to purchase shares
pursuant to a ROA at the plan level may not also be considered eligible to do so for the benefit of an individual account owner.
In
all instances, it is the purchaser’s responsibility to notify Invesco Distributors
or its designee of any relationship or other facts qualifying the purchaser as eligible for reduced sales charges and/or sales charge
exceptions and to provide all necessary documentation of such facts in order to qualify for reduced sales charges or sales charge exceptions.
For additional information on linking accounts to qualify for ROA or LOI, please see the Funds’ SAI.
Purchases
of Class A shares of Invesco Conservative Income Fund, Invesco
Government Money Market Fund and Invesco Short Term Municipal Fund, Class AX shares or Invesco Cash Reserve Shares of Invesco Government
Money Market Fund and Invesco U.S. Government Money Portfolio, as applicable, or Investor Class shares of any Fund will not be
taken
into account in determining whether a purchase qualifies for a reduction in initial sales charges pursuant to ROAs or LOIs.
Rights
of Accumulation
Purchasers
that qualify for ROA may combine new purchases of Class A shares of a Fund with shares of the Fund or other open-end Invesco Funds
currently owned (Class A, C, IB, IC, P, R, S or Y) for the purpose of qualifying for the lower initial sales charge rates that apply
to larger purchases. The applicable initial sales charge for the new purchase will be based on the total of your current purchase and
the value of other shares owned based on their current public offering price. The Funds’ transfer agent may automatically link certain
accounts registered in the same name with the same taxpayer identification number for the purpose of qualifying you for lower initial
sales charge rates.
Letters
of Intent
Under
a LOI, you commit to purchase a specified dollar amount of Class A shares of one or more Funds during a 13-month period. The amount
you agree to purchase determines the initial sales charge you pay. If the full amount committed to in the LOI is not invested by the end
of the 13-month period, your account will generally be assessed the higher initial sales charge that would normally be applicable to the
total amount actually invested. Shares equal in value to 5% of the intended purchase amount will be held in escrow for this purpose.
Reinstatement
Following Redemption
If
you redeem any class of shares of a Fund, you may reinvest all or a portion of the proceeds from the redemption (and may include that
amount necessary to acquire a fractional Share to round off his or her purchase to the next full Share) in the same share class of any
Fund within 180 days of the redemption without paying an initial sales charge. Class P, S, and Y redemptions may be reinvested into Class
A shares without an initial sales charge.
This
reinstatement privilege does not apply to a purchase made through a
regularly scheduled automatic investment plan, such as a purchase by a regularly scheduled payroll deduction or transfer from a bank account.
This
reinstatement privilege shall be suspended for the period of time in which
a purchase block is in place on a shareholder’s account. Please see “Purchase Blocking Policy” discussed below.
In
order to take advantage of this reinstatement privilege, you must inform
your financial adviser or the Funds’ transfer agent that you wish to do so at the time of your reinvestment.
Contingent
Deferred Sales Charges (CDSCs)
CDSCs
on Class A Shares and Invesco Cash Reserve Shares
Any
shares of a Large Purchase of Class A shares redeemed prior to 18 months after the date of purchase will be subject to a CDSC of 1% with
the exception of Class A shares of Invesco Conservative Income Fund and Invesco Short Term Municipal Fund which do not have CDSCs on redemptions.
If
Invesco Distributors pays a concession to a financial intermediary in connection
with a Large Purchase of Class A shares by an Employer Sponsored Retirement and Benefit Plan or SIMPLE IRA Plan, the Class A shares will
be subject to a 1% CDSC if all of the Employer Sponsored Retirement and Benefit Plan’s or SIMPLE IRA’s shares are redeemed
within one year from the date of initial purchase.
If
you acquire Invesco Cash Reserve Shares or Class A shares of Invesco
Government Money Market Fund or Invesco Cash Reserve Shares of Invesco U.S. Government Money Portfolio through an exchange involving Class
A shares that were subject to a CDSC, the shares acquired as a result of the exchange will continue to be subject to that same CDSC.
CDSCs
on Class C Shares
Class
C shares are subject to a CDSC; however, the CDSC shall not apply to the purchases of Class C shares where the selling broker-dealer was
not paid a commission at the time of purchase. If you redeem your shares during the first year since your purchase has been made you will
be
A-10 The
Invesco Funds
assessed
a CDSC as disclosed in the “Fees and Expenses - Shareholder Fees” table in the prospectus, unless you qualify for one of the
CDSC exceptions outlined below.
CDSCs
on Class C Shares – Employer Sponsored Retirement and Benefit Plans and Employer Sponsored IRAs
Class
C shares are subject to a 1.00% CDSC at the time of redemption if all of the Employer Sponsored Retirement and Benefit Plan’s or
Employer Sponsored IRA’s shares are redeemed within one year from the date of initial purchase.
CDSCs
on Class C Shares of Invesco Short Term Bond Fund
Effective
November 1, 2021, Class C shares of Invesco Short Term Bond Fund are subject to a CDSC. If you acquire Class C shares of any other Fund
as a result of an exchange involving Class C shares of Invesco Short Term Bond Fund that were not subject to a CDSC prior to November
1, 2021, then the shares acquired as a result of the exchange will not be subject to a CDSC.
Computing
a CDSC
The
CDSC on redemptions of shares is computed based on the lower of their original purchase price or current net asset value, net of reinvested
dividends and capital gains distributions. In determining whether to charge a CDSC, shares are accounted for on a first-in, first-out
basis, which means that you will redeem shares on which there is no CDSC first, and then shares in the order of their purchase.
CDSC
Exceptions
Investors
who own shares that are otherwise subject to a CDSC will not pay a CDSC in the following circumstances:
◾
If
you participate in the Systematic Redemption Plan and withdraw up to 12% of the value of your shares that are subject to a CDSC in any
twelve-month period.
◾
If
you redeem shares to pay account fees.
◾
If
you are the executor, administrator or beneficiary of an estate or are otherwise entitled to assets remaining in an account following
the death or post-purchase disability of a shareholder or beneficial owner and you choose to redeem those shares.
There
are other circumstances under which you may be able to redeem shares
without paying CDSCs. For additional information about such circumstances, please see the Appendix entitled “Purchase, Redemption
and Pricing of Shares” in each Fund’s SAI.
Shares
acquired through the reinvestment of dividends and distributions are
not subject to CDSCs.
The
following share classes are sold without a CDSC:
◾
Class
A2 shares of Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund
◾
Class
A shares of Invesco Government Money Market Fund
◾
Invesco
Cash Reserve Shares of Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio
◾
Investor
Class shares of any Fund
◾
Class
P shares of Invesco Summit Fund
◾
Class
R5 and R6 shares of any Fund
◾
Class
R shares of any Fund
◾
Class
S shares of Invesco Charter Fund, Invesco Select Risk: Moderately Conservative Investor Fund, Invesco Select Risk: Growth Investor Fund,
Invesco Select Risk: Moderate Investor Fund and Invesco Summit Fund
◾
Class
Y shares of any Fund
Purchasing
Shares and Shareholder Eligibility
Invesco
Premier U.S. Government Money Portfolio
For
Invesco Premier U.S. Government Money Portfolio, you may purchase shares using one of the options below. Unless the Fund closes early
on a business day, the Fund’s transfer agent will generally accept any purchase order placed until 5:00 p.m. Eastern Time on a business
day and may accept a purchase order placed until 5:30 p.m. Eastern Time on a business
day.
If you wish to place an order between 5:00 p.m. and 5:30 p.m. Eastern Time on a business day, you must place such order by telephone;
however, the Fund’s transfer agent reserves the right to reject or limit the amount of orders placed during this time. If the Fund
closes early on a business day, the Fund’s transfer agent must receive your purchase order prior to such closing time. Purchase
orders will not be processed unless the account application and purchase payment are received in good order. In accordance with the USA
PATRIOT Act, if you fail to provide all the required information requested in the current account application, your purchase order will
not be processed. Additionally, federal law requires that the Fund verifies and records your identifying information.
Invesco
Premier Portfolio
Only
accounts beneficially owned by natural persons will be permitted to retain their shares. The Fund has implemented policies and procedures
reasonably designed to limit all beneficial owners of the Fund to natural persons, and investments in the Fund are limited to accounts
beneficially owned by natural persons. Natural persons may invest in the Fund through certain tax-advantaged savings accounts, trusts
and other retirement and investment accounts, which may include, among others: participant-directed defined contribution plans; individual
retirement accounts; simplified employee pension arrangements; simple retirement accounts; custodial accounts; deferred compensation plans
for government or tax-exempt organization employees; Archer medical savings accounts; college savings plans; health savings account plans;
ordinary trusts and estates of natural persons; or certain other retirement and investment accounts with ultimate investment authority
held by the natural person beneficial owner, notwithstanding having an institutional decision maker making day-to-day decisions (e.g.,
a plan sponsor in certain retirement arrangements or an investment adviser managing discretionary investment accounts).
Further,
financial intermediaries may only submit purchase orders if they have
implemented policies and procedures reasonably designed to limit all investors on behalf of whom they submit orders to accounts beneficially
owned by natural persons. Financial intermediaries may be required to provide a written statement or other representation that they have
in place, and operate in compliance with, such policies and procedures prior to submitting purchase orders. Such policies and procedures
may include provisions for the financial intermediary to promptly report to the Fund or the transfer agent the identification of any shareholder
of the Fund that does not qualify as a natural person of whom they are aware and promptly take steps to redeem any such shareholder’s
shares of the Fund upon request by the Fund or the transfer agent, in such manner as it may reasonably request. The Fund may involuntarily
redeem any such shareholder who does not voluntarily redeem their shares.
Natural
persons may purchase shares using one of the options below. For
all classes of the Fund, other than Investor Class shares, unless the Fund closes early on a business day, the Fund’s transfer agent
will generally accept any purchase order placed until 5:00 p.m. Eastern Time on a business day and may accept a purchase order placed
until 5:30 p.m. Eastern Time on a business day. If you wish to place an order between 5:00 p.m. and 5:30 p.m. Eastern Time on a business
day, you must place such order by telephone; or send your request by a pre-arranged Liquidity Link data transmission however, the Fund’s
transfer agent reserves the right to reject or limit the amount of orders placed during this time. For Investor Class shares of the Fund,
unless the Fund closes early on a business day, the Fund’s transfer agent will generally accept any purchase order placed until
4:00 p.m. Eastern Time on a business day and may accept a purchase order placed until 4:30 p.m. Eastern Time on a business day. If you
wish to place an order between 4:00 p.m. and 4:30 p.m. Eastern Time on a business day, you must place such order by telephone; however,
the Fund’s transfer agent reserves the right to reject or limit the amount of orders placed during this time. If the Fund closes
early on a business day, the Fund’s transfer agent must receive your purchase order prior to such closing time. Purchase orders
will not be processed unless the account application and purchase payment are received in good order. In accordance with the USA PATRIOT
Act, if you fail to provide all the required information requested in the current account application, your purchase order will not be
A-11 The
Invesco Funds
processed.
Additionally, federal law requires that the Fund verify and record your identifying information.
Minimum Investments
There
are no minimum investments for Class P or S shares for fund accounts. The minimum investments for Class A, C, R, Y, Investor Class and
Invesco Cash Reserve shares for fund accounts are as follows:
|
Type
of Account |
Initial
Investment
Per
Fund |
Additional
Investments
Per
Fund |
|
Asset
or fee-based accounts managed by your financial
adviser
|
None
|
None
|
|
| ||
|
Employer
Sponsored Retirement and Benefit Plans and
Employer
Sponsored IRAs |
None
|
None
|
|
| ||
|
IRAs
and Coverdell ESAs if the new investor is
purchasing
shares through a systematic purchase plan |
$25
|
$25
|
|
| ||
|
All
other accounts if the investor is purchasing shares
through
a systematic purchase plan |
50
|
50
|
|
| ||
|
IRAs
and Coverdell ESAs |
250
|
25
|
|
| ||
|
All
other accounts |
1,000
|
50
|
|
| ||
Invesco
Distributors or its designee has the discretion to accept orders on behalf of clients for lesser amounts.
The
minimum investments for Class R5 and R6 shares are as follows:
There
is no minimum initial investment for an Employer Sponsored Retirement
and Benefit Plan investing through a retirement platform that administers at least $2.5 billion in retirement plan assets. All other Employer
Sponsored Retirement and Benefit Plans must meet a minimum initial investment of at least $1 million in each Fund in which it invests.
The
minimum initial investment in each share class for all other institutional
investors is $1 million, unless such investment is made by (i) an investment company, as defined under the 1940 Act, as amended, that
is part of a family of investment companies which own in the aggregate at least $100 million in securities, or (ii) an account established
with a 529 college savings plan managed by Invesco, in which case there is no minimum initial investment.
There
are no minimum investment amounts for Class R6 shares held through
retail omnibus accounts where the intermediary:
◾
generally
charges an asset-based fee or commission in addition to those described in this prospectus; and
◾
maintains
Class R6 shares and makes them available to retail investors.
A
financial intermediary may impose different investment minimums than
those set forth above. The Fund is not responsible for any investment minimums imposed by financial intermediaries or for notifying shareholders
of any changes to them. See “Waivers Available Through Certain Financial Intermediaries and Other Financial Intermediary-Specific
Arrangements” for more information on certain intermediary-specific investment minimums. Please consult with your financial intermediary
if you have any questions regarding their policies.
How
to Purchase Shares*
|
|
Opening
An Account |
Adding
To An Account |
|
Through
a
Financial
Adviser
or
Financial
Intermediary*
|
Contact
your financial adviser or
financial
intermediary. |
Contact
your financial adviser or
financial
intermediary. |
|
By
Mail |
Mail
completed account application
and
check to the Funds’ transfer
agent,
Invesco
Investment Services, Inc.
P.O.
Box 219078,
Kansas
City, MO 64121-9078.
The
Funds’ transfer agent does NOT
accept
the following types of
payments:
Credit Card Checks,
Temporary/Starter
Checks, Third
Party
Checks, and Cash. |
Mail
your check and the remittance
slip
from your confirmation
statement
to the Funds’ transfer
agent.
The Funds’ transfer agent
does
NOT accept the following
types
of payments: Credit Card
Checks,
Temporary/Starter Checks,
Third
Party Checks, and Cash. |
|
|
Opening
An Account |
Adding
To An Account |
|
By
Wire* |
Mail
completed account application
to
the Funds’ transfer agent. Call
the
Funds’ transfer agent at (800)
959-4246
to receive a reference
number.
Then, use the wire
instructions
provided below. |
Call
the Funds’ transfer agent to
receive
a reference number. Then,
use
the wire instructions provided
below.
|
|
Wire
Instructions |
Beneficiary
Bank ABA/Routing #: 011001234
Beneficiary
Account Number: 729639
Beneficiary
Account Name: Invesco Investment Services, Inc.
RFB:
Fund Name, Reference #
OBI:
Your Name, Account # | |
|
By
Telephone* |
Open
your account using one of the
methods
described above. |
The
Bank Account Information
option
on your completed account
application
or complete a
Systematic
Options and Bank
Information
Form. Mail the
application
or form to the Funds’
transfer
agent. Once the Funds’
transfer
agent has received the
form,
call the Funds’ transfer agent
at
the number below to place your
purchase
order. For Class R5 and
R6
shares, call the Funds’ transfer
agent
at (800) 959-4246 and wire
payment
for your purchase order in
accordance
with the wire
instructions
listed above. |
|
Automated
Investor
Line |
Open
your account using one of the
methods
described above. |
Call
the Funds’ transfer agent’s
24-hour
Automated Investor Line at
1-800-246-5463.
You may place
your
order after you have provided
the
bank instructions that will be
requested.
|
|
By
Internet |
Open
your account using one of the
methods
described above. |
Access
your account at
www.invesco.com/us.
The proper
bank
instructions must have been
provided
on your account. You may
not
purchase shares in Retirement
and
Benefit Plans on the internet. |
|
*Class
R5 and R6 shares may only be purchased through a financial intermediary or by
telephone
at (800) 959-4246. | ||
Non-retirement
retail investors, including high net worth investors investing
directly or through a financial intermediary, are not eligible for Class R5 shares. IRAs and Employer Sponsored IRAs are also not eligible
for Class R5 shares. If you hold your shares through a financial intermediary, the terms by which you purchase, redeem and exchange shares
may differ than the terms in this prospectus depending upon the policies and procedures of your financial intermediary.
Purchase
orders will not be processed unless the account application and
purchase payment are received in good order. In accordance with the USA PATRIOT Act, if you fail to provide all the required information
requested in the current account application, your purchase order will not be processed. Additionally, federal law requires that the Funds
verify and record your identifying information.
Systematic
Purchase Plan (Available for all classes except Class R5 and R6 shares)
You
can arrange for periodic investments in any of the Funds by authorizing the Funds’ transfer agent to withdraw the amount of your
investment from your bank account on a day or dates you specify and in an amount of at least $25 per Fund for IRAs and Coverdell ESAs,
and at least $50 per Fund for all other types of accounts (a Systematic Purchase Plan). You may stop the Systematic Purchase Plan at any
time by giving the Funds’ transfer agent notice ten days prior to your next scheduled withdrawal. Certain financial advisers and
other financial intermediaries may also offer systematic purchase plans.
A-12 The
Invesco Funds
Dollar
Cost Averaging (Available for all classes except Class R5 and R6 shares)
Dollar
Cost Averaging allows you to make automatic periodic exchanges, if permitted, from one Fund to another Fund or multiple other Funds. The
account from which exchanges are to be made must have a minimum balance of $5,000 before you can use this option. Exchanges will occur
on (or about) the day of the month you specify, in the amount you specify. Dollar Cost Averaging cannot be set up for the 29th through
the 31st of the month. The minimum amount you can exchange to another Fund is $50. Your financial intermediary may offer alternative dollar
cost averaging programs with different requirements.
Automatic
Dividend and Distribution Investment
Your
dividends and distributions may be paid in cash or reinvested in the same Fund or another Fund without paying an initial sales charge.
Unless
you specify otherwise, your dividends and distributions will automatically
be reinvested in the same Fund. You must comply with the following requirements to be eligible to invest your dividends and distributions
in shares of another Fund:
◾
Your
account balance in the Fund paying the dividend or distribution must be at least $5,000; and
◾
Your
account balance in the Fund receiving the dividend or distribution must be at least $500.
If
you elect to receive your distributions by check, and the distribution amount
is $25 or less, then the amount will be automatically reinvested in the same Fund and no check will be issued. If you have elected to
receive distributions by check, and the postal service is unable to deliver checks to your address of record, then your distribution election
may be converted to having all subsequent distributions reinvested in the same Fund and no checks will be issued. With respect to certain
account types, if your check remains uncashed for six months, the Fund generally reserves the right to reinvest your distribution check
in your account at the then applicable NAV and to reinvest all subsequent distributions in shares of the Fund. Such checks will be reinvested
into the same share class of the Fund. You should contact the Funds’ transfer agent to change your distribution option, and your
request to do so must be received by the Funds’ transfer agent before the record date for a distribution in order to be effective
for that distribution. No interest will accrue on amounts represented by uncashed distribution checks.
Redeeming
Shares*
The
Funds’ transfer agent or authorized intermediary, if applicable, must receive your call before the Funds’ net asset value
determination (as defined by the applicable Fund) in order to effect the redemption at that day’s net asset value.
Your
broker or financial intermediary may charge service fees for handling
redemption transactions.
|
How
to Redeem Shares | |
|
Through
a Financial
Adviser
or Financial
Intermediary*
|
Contact
your financial adviser or financial intermediary. The Funds’
transfer
agent must receive your financial adviser’s or financial
intermediary’s
call before the Funds’ net asset value determination
(as
defined by the applicable Fund) in order to effect the redemption
at
that day’s net asset value. Please contact your financial adviser or
financial
intermediary with respect to reporting of cost basis and
available
elections for your account. |
|
By
Mail |
Send
a written request to the Funds’ transfer agent which includes: |
|
|
▪ Original
signatures of all registered owners/trustees;
▪ The
dollar value or number of shares that you wish to redeem;
▪ The
name of the Fund(s) and your account number;
▪ The
cost basis method or specific shares you wish to redeem for
tax
reporting purposes, if different than the method already on
record;
and |
|
|
▪ Signature
guarantees, if necessary (see below).
The
Funds’ transfer agent may require that you provide additional
documentation,
or information, such as corporate resolutions or
powers
of attorney, if applicable. If you are redeeming from a
Retirement
and Benefit Plan, you must complete the appropriate
distribution
form. |
|
How
to Redeem Shares | |
|
By
Telephone* |
Call
the Funds’ transfer agent at 1-800-959-4246. You will be
allowed
to redeem by telephone if:
▪ Your
redemption proceeds are to be mailed to your address on
record
(and there has been no change in your address of record
within
the last 15 days) or transferred electronically to a
pre-authorized
checking account;
▪ You
can provide proper identification information;
▪ Your
redemption proceeds do not exceed $250,000 per Fund; and
▪ You
have not previously declined the telephone redemption
privilege.
|
|
|
You
may, in limited circumstances, initiate a redemption from an
Invesco
IRA by telephone. Redemptions from Employer Sponsored
Retirement
and Benefit Plans and Employer Sponsored IRAs may be
initiated
only in writing and require the completion of the appropriate
distribution
form, as well as employer authorization. You must call the
Funds’
transfer agent before the Funds’ net asset value
determination
(as defined by the applicable Fund) in order to effect
the
redemption at that day’s net asset value. |
|
Automated
Investor Line |
Call
the Funds’ transfer agent’s 24-hour Automated Investor Line at
1-800-246-5463.
You may place your redemption order after you
have
provided the bank instructions that will be requested. |
|
By
Internet |
Place
your redemption request at www.invesco.com/us. You will be
allowed
to redeem by Internet if:
▪ You
can provide proper identification information;
▪ Your
redemption proceeds do not exceed $250,000 per Fund; and
▪ You
have already provided proper bank information.
Redemptions
from Employer Sponsored Retirement and Benefit
Plans
and Employer Sponsored IRAs may be initiated only in writing
and
require the completion of the appropriate distribution form, as
well
as employer authorization. |
|
*Class
R5 and R6 shares may only be redeemed through a financial intermediary or by
telephone
at (800) 959-4246. | |
Timing
and Method of Payment
The
Funds’ transfer agent typically expects to pay redemption proceeds to redeeming shareholders within one business day after a redemption
request is received in good order, regardless of the method a Fund uses to make such payment. However, a Fund may take up to seven days
to process a redemption request. “Good order” means that all necessary information and documentation related to the redemption
request have been provided to the Funds’ transfer agent or authorized intermediary, if applicable. If your request is not in good
order, the Funds’ transfer agent may require additional documentation in order to redeem your shares. If you redeem shares recently
purchased by check or ACH, you may be required to wait up to ten calendar days before your redemption proceeds are sent. This delay is
necessary to ensure that the purchase has cleared. You can avoid the check hold period if you pay for your shares with a certified check,
a cashier’s check or a federal wire. Payment may be postponed under unusual circumstances, as allowed by the SEC, such as when the
NYSE restricts or suspends trading.
In
addition, a temporary hold may be placed on the disbursement of redemption
proceeds from an account if there is a reasonable belief that financial exploitation of a Specified Adult (as defined below) has occurred,
is occurring, has been attempted, or will be attempted. Notice of such a delay will be provided in accordance with regulatory requirements.
This temporary hold will be for an initial period of no more than 15 business days while an internal review is performed. Should the internal
review support the belief that financial exploitation has occurred, is occurring, has been attempted or will be attempted, the temporary
hold may be extended for up to 10 additional business days. Both the initial and subsequent hold on the disbursement may be terminated
or extended by a state regulator or an agency or court of competent jurisdiction. For purposes of this paragraph, the term “Specified
Adult” refers to an individual who is (a) a natural person age 65 and older, or (b) a natural person age 18 and older who is reasonably
believed to have a mental or physical impairment that renders the individual unable to protect his or her own interests.
If
you redeem by telephone, the Funds’ transfer agent will transmit the amount
of redemption proceeds electronically to your pre-authorized bank account. Redemption checks are mailed to your address of record, via
first
A-13 The
Invesco Funds
class
U.S. mail, unless you make other arrangements with the Funds’ transfer agent.
The
Funds’ transfer agent uses reasonable procedures to confirm that instructions
communicated via telephone and the Internet are genuine, and the Funds and the Funds’ transfer agent are not liable for losses arising
from actions taken in accordance with instructions that are reasonably believed to be genuine.
A
Fund typically expects to use holdings of cash and cash equivalents and
sales of portfolio assets to meet redemption requests, both regularly and in stressed market conditions. The Funds also have the ability
to redeem in kind as further described below under “Redemptions in Kind.” Certain Funds have a line of credit,
as disclosed in such Funds’ principal investment strategy
and risk disclosures that may be used to meet redemptions in stressed market conditions.
Expedited
Redemptions (for Invesco Cash Reserve Shares of Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio only)
If
you place your redemption order by telephone, before 11:30 a.m. Eastern Time and request an expedited redemption, the Funds’ transfer
agent will transmit payment of redemption proceeds on that same day via federal wire to a bank of record on your account. If the Funds’
transfer agent receives your redemption order after 11:30 a.m. Eastern Time and before the close of the customary trading session of the
NYSE, it will transmit payment on the next business day.
Suspension
of Redemptions
The
right of redemption may be suspended or the date of payment postponed when (a) trading on the NYSE is restricted, as determined by applicable
rules and regulations of the SEC, (b) the NYSE is closed for other than customary weekend and holiday closings, (c) the SEC has by order
permitted such suspension, or (d) an emergency as determined by the SEC exists making disposition of portfolio securities or the valuation
of the net assets of the Fund not reasonably practicable. With respect to Invesco Government Money Market Fund, Invesco U.S. Government
Money Portfolio, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio, in the event that the Fund, at the end
of a business day, has invested less than 10% of its total assets in weekly liquid assets or, with respect to the retail and government
money market funds, the Fund’s price per share as computed for the purpose of distribution, redemption and repurchase, rounded to
the nearest 1%, has deviated from the stable price established by the Fund’s Board of Trustees (“Board”) or the Board,
including a majority of trustees who are not interested persons as defined in the 1940 Act, determines that such a deviation is likely
to occur, and the Board, including a majority of trustees who are not interested persons of the Fund, irrevocably has approved the liquidation
of the Fund, the Fund’s Board has the authority to suspend redemptions of Fund shares.
Liquidity
Fees and Redemption Gates
For
Invesco Premier Portfolio, if the Fund’s weekly liquid assets fall below 30% of its total assets, the Board, in its discretion,
may impose liquidity fees of up to 2% of the value of the shares redeemed and/or suspend redemptions (redemption gates). In addition,
if any such Fund’s weekly liquid assets falls below 10% of its total assets at the end of any business day, the Fund must impose
a 1% liquidity fee on shareholder redemptions unless the Board determines that not doing so is in the best interests of the Fund.
Liquidity
fees and redemption gates are most likely to be imposed, if at all,
during times of extraordinary market stress. In the event that a liquidity fee or redemption gate is imposed, the Board expects that for
the duration of its implementation and the day after which such gate or fee is terminated, the Fund would strike only one net asset value
per day, at the Fund’s last scheduled net asset value calculation time.
The
imposition and termination of a liquidity fee or redemption gate will be
reported by a Fund to the SEC on Form N-CR. Such information will also be available on the Fund’s website. In addition, a Fund will
communicate such action through a supplement to its registration statement and may further communicate such action through a press release
or by other means. If a liquidity fee is applied by the Board, it will be charged on all
redemption
orders submitted after the effective time of the imposition of the fee by the Board. Liquidity fees would reduce the amount you receive
upon redemption of your shares. In the event a Fund imposes a redemption gate, the Fund or any financial intermediary on its behalf will
not accept redemption requests until the Fund provides notice that the redemption gate has been terminated.
Redemption
requests submitted while a redemption gate is imposed will be cancelled
without further notice. If shareholders still wish to redeem their shares after a redemption gate has been lifted, they will need to submit
a new redemption request.
Liquidity
fees and redemption gates will generally be used to assist a Fund
to help preserve its market–based NAV per share. It is possible that a liquidity fee will be returned to shareholders in the form
of a distribution. The Board may, in its discretion, terminate a liquidity fee or redemption gate at any time if it believes such action
to be in the best interest of a Fund. Also, liquidity fees and redemption gates will automatically terminate at the beginning of the next
business day once a Fund’s weekly liquid assets reach at least 30% of its total assets. Redemption gates may only last up to 10
business days in any 90-day period. When a fee or a gate is in place, the Fund may elect not to permit the purchase of shares or to subject
the purchase of shares to certain conditions, which may include affirmation of the purchaser’s knowledge that a fee or a gate is
in effect. When a fee or a gate is in place, shareholders will not be permitted to exchange into or out of a Fund.
There
is some degree of uncertainty with respect to the tax treatment of liquidity
fees received by a Fund, and such tax treatment may be the subject to future IRS guidance. If a Fund receives liquidity fees, it will
consider the appropriate tax treatment of such fees to the Fund at such time.
Financial
intermediaries are required to promptly take the steps requested
by the Funds or their designees to impose or help to implement a liquidity fee or redemption gate as requested from time to time, including
the rejection of orders due to the imposition of a fee or gate or the prompt re-confirmation of orders following a notification regarding
the implementation of a fee or gate. If a liquidity fee is imposed, these steps are expected to include the submission of separate, rather
than combined, purchase and redemption orders from the time of the effectiveness of the liquidity fee or redemption gate and the submission
of such order information to the Fund or its designee prior to the next calculation of a Fund’s net asset value. Unless otherwise
agreed to between a Fund and financial intermediary, the Fund will withhold liquidity fees on behalf of financial intermediaries. With
regard to such orders, a redemption request that a Fund determines in its sole discretion has been received in good order by the Fund
or its designated agent prior to the imposition of a liquidity fee or redemption gate may be paid by the Fund despite the imposition of
a redemption gate or without the deduction of a liquidity fee. If a liquidity fee is imposed during the day, an intermediary who receives
both purchase and redemption orders from a single account holder is not required to net the purchase and redemption orders. However, the
intermediary is permitted to apply the liquidity fee to the net amount of redemptions (even if the purchase order was received prior to
the time the liquidity fee was imposed).
Where
a Financial Intermediary serves as a Fund’s agent for the purpose
of receiving orders, trades that are not transmitted to the Fund by the Financial Intermediary before the time required by the Fund or
the transfer agent may, in the Fund’s discretion, be processed on an as-of basis, and any cost or loss to the Fund or transfer agent
or their affiliates, from such transactions shall be borne exclusively by the Financial Intermediary.
Systematic
Withdrawals (Available for all classes except Class R5 and R6 shares)
You
may arrange for regular periodic withdrawals from your account in amounts equal to or greater than $50 per Fund. The Funds’ transfer
agent will redeem the appropriate number of shares from your account to provide redemption proceeds in the amount requested. You must
have a total account balance of at least $5,000 in order to establish a Systematic Redemption Plan, unless you are establishing a Required
Minimum
A-14 The
Invesco Funds
Distribution
for a Retirement and Benefit Plan. You can stop this plan at any time by giving ten days’ prior notice to the Funds’ transfer
agent.
Check
Writing
The
Funds’ transfer agent provides check writing privileges for accounts in the following Funds and share classes:
◾
Invesco
Government Money Market Fund, Invesco Cash Reserve Shares, Class AX shares, Class Y shares and Investor Class shares
◾
Invesco
U.S. Government Money Portfolio, Invesco Cash Reserve Shares and Class Y shares
◾
Invesco
Premier Portfolio, Investor Class shares
◾
Invesco
Premier U.S. Government Money Portfolio, Investor Class shares
You
may redeem shares of these Funds by writing checks in amounts of $250
or more if you have subscribed to the service by completing a Check Writing authorization form.
Check
writing privileges are not available for Retirement and Benefit Plans.
Checks are not eligible to be converted to ACH by the payee. You may not give authorization to a payee by phone to debit your account
by ACH for a debt owed to the payee.
If
you do not have a sufficient number of shares in your account to cover
the amount of the check and any applicable deferred sales charge, the check will be returned and no shares will be redeemed. Because it
is not possible to determine your account’s value in advance, you should not write a check for the entire value of your account
or try to close your account by writing a check.
A
check writing redemption request which is verifiably submitted to a Fund’s
agent before a liquidity fee or redemption gate is imposed will be considered a valid redemption and will be processed normally.
Signature
Guarantees
The
Funds’ transfer agent requires a signature guarantee in the following circumstances:
◾
When
your redemption proceeds exceed $250,000 per Fund.
◾
When
you request that redemption proceeds be paid to someone other than the registered owner of the account.
◾
When
you request that redemption proceeds be sent somewhere other than the address of record or bank of record on the account.
◾
When
you request that redemption proceeds be sent to a new address or an address that changed in the last 15 days.
The
Funds’ transfer agent will accept a guarantee of your signature by a number
of different types of financial institutions. Call the Funds’ transfer agent for additional information. Some institutions have
transaction amount maximums for these guarantees. Please check with the guarantor institution to determine whether the signature guarantee
offered will be sufficient to cover the value of your transaction request.
Redemptions
in Kind
Although
the Funds generally intend to pay redemption proceeds solely in cash, the Funds reserve the right to determine, in their sole discretion,
whether to satisfy redemption requests by making payment in securities or other property (known as a redemption in kind). Redemptions
in kind may result in transaction costs and/or market fluctuations associated with liquidating or holding the securities, respectively.
Purchases-in-Kind
You
may purchase shares of a Fund by transferring securities to a Fund in exchange for Fund shares (“in-kind purchases”). In-kind
purchases may be made only upon the Funds’ approval and determination that the securities are acceptable investments for the Fund
and are purchased consistent with the Fund’s procedures relating to in-kind purchases. The Funds reserve the right to amend or terminate
this practice at any time. You must call the Funds at (800) 959-4246 before sending any securities. Please see the SAI for additional
details.
Redemptions
by Large Shareholders
At
times, the Fund may experience adverse effects when certain large shareholders redeem large amounts of shares of the Fund. Large redemptions
may cause the Fund to sell portfolio securities at times when it would not otherwise do so. In addition, these transactions may also
accelerate
the realization of taxable income to shareholders (if applicable) if such sales of investments resulted in gains and may also increase
transaction costs and/or increase in the Fund’s expense ratio. When experiencing a redemption by a large shareholder, the Fund may
delay payment of the redemption request up to seven days to provide the investment manager with time to determine if the Fund can redeem
the request-in-kind or to consider other alternatives to lessen the harm to remaining shareholders. Under certain circumstances, however,
the Fund may be unable to delay a redemption request, which could result in the automatic processing of a large redemption that is detrimental
to the Fund and its remaining shareholders.
Redemptions
Initiated by the Funds
If
your account (Class A, C, P, S and Investor Class shares only) has been open at least one year, you have not made an additional purchase
in the account during the past six calendar months, and the value of your account falls below $500 for three consecutive months, the Funds
have the right to redeem the account after giving you 60 days’ prior written notice. You may avoid having your account redeemed
during the notice period by bringing the account value up to $500 or by initiating a Systematic Purchase Plan.
A
financial intermediary may have a different policy regarding redemptions
of accounts with small balances. The Fund is not responsible for any small account balance policies imposed by financial intermediaries
or for notifying shareholders of any changes to them. See “Waivers Available Through Certain Financial Intermediaries and Other
Financial Intermediary-Specific Arrangements” for more information on certain intermediary-specific small account balance policies.
Please consult with your financial intermediary if you have any questions regarding their policies.
If
a Fund determines that you have not provided a correct Social Security
or other tax identification number on your account application, or the Fund is not able to verify your identity as required by law, the
Fund may, at its discretion, redeem the account and distribute the proceeds to you.
In
order to separate retail investors (natural persons) and non-retail investors,
the Invesco Premier Portfolio reserve the right to redeem shares in any account that the Funds cannot confirm to their satisfaction are
beneficially owned by natural persons. The Funds will provide advance written notice of their intent to make any such involuntary redemptions.
The Funds reserve the right to redeem shares in any account that they cannot confirm to their satisfaction are beneficially owned by natural
persons, after providing advance notice.
Neither
a Fund nor its investment adviser will be responsible for any loss
in an investor’s account or tax liability resulting from an involuntary redemption.
Minimum
Account Balance (Available for all classes except Class R5 and R6 shares)
A
low balance fee of $12 per year may be deducted in the fourth quarter of each year from all accounts held in the Funds (each a Fund Account)
with a value less than the low balance amount (the Low Balance Amount) as determined from time to time by the Funds and the Adviser. The
Funds and the Adviser generally expect the Low Balance Amount to be $750, but such amount may be adjusted for any year depending on various
factors, including market conditions. The Low Balance Amount and the date on which it will be deducted from any Fund Account will be posted
on our website, www.invesco.com/us, on or about November 1 of each year. This fee will be payable to the Funds’ transfer agent by
redeeming from a Fund Account sufficient shares owned by a shareholder and will be used by the Funds’ transfer agent to offset amounts
that would otherwise be payable by the Funds to the Funds’ transfer agent under the Funds’ transfer agency agreement with
the Funds’ transfer agent. The low balance fee does not apply to participant accounts in advisory programs or to Employer Sponsored
Retirement and Benefit Plans.
Exchanging
Shares
You
may, under certain circumstances, exchange shares in one Fund for those of another Fund. An exchange is the purchase of shares in one
Fund which is paid for with the proceeds from a redemption of shares of another
A-15 The
Invesco Funds
Fund
effectuated on the same day. Any gain on the transaction may be subject to federal income tax. Accordingly, the procedures and processes
applicable to redemptions of Fund shares, as discussed under the heading “Redeeming Shares” above, will apply. Before requesting
an exchange, review the prospectus of the Fund you wish to acquire.
All
exchanges are subject to the limitations set forth in the prospectuses of
the Funds. If you wish to exchange shares of one Fund for those of another Fund, you must consult the prospectus of the Fund whose shares
you wish to acquire to determine whether the Fund is offering shares to new investors and whether you are eligible to acquire shares of
that Fund.
Permitted
Exchanges
Except
as otherwise provided herein or in the SAI, you generally may exchange your shares for shares of the same class of another Fund. The following
table shows generally permitted exchanges from one Fund to another Fund (exceptions listed below under “Exchanges Not Permitted”):
|
Exchange
From |
Exchange
To |
|
Invesco
Cash Reserve Shares |
Class
A, C, R, Investor Class |
|
| |
|
Class
A |
Class
A, Investor Class, Invesco Cash Reserve Shares* |
|
| |
|
Class
A2 |
Class
A, Investor Class, Invesco Cash Reserve Shares |
|
| |
|
Class
AX |
Class
A, AX, Investor Class, Invesco Cash Reserve Shares |
|
| |
|
Investor
Class |
Class
A, Investor Class |
|
| |
|
Class
P |
Class
A, Invesco Cash Reserve Shares |
|
| |
|
Class
S |
Class
A, S, Invesco Cash Reserve Shares |
|
| |
|
Class
C |
Class
C* |
|
| |
|
Class
CX |
Class
C, CX |
|
| |
|
Class
R |
Class
R* |
|
| |
|
Class
R5 |
Class
R5 |
|
| |
|
Class
R6 |
Class
R6 |
|
| |
|
Class
Y |
Class
Y* |
|
|
|
|
* You
may exchange Class Y shares of Invesco U.S. Government Money Portfolio for Class A, C
or
R shares of any other Fund as long as you are otherwise eligible for such share class. If you
exchange
Class Y shares of Invesco U.S. Government Money Portfolio for Class A, C or R shares
of
any other Fund, you may exchange those Class A, C or R shares back into Class Y shares of
Invesco
U.S. Government Money Portfolio, but not Class Y shares of any other Fund. | |
Exchanges
into Invesco Senior Loan Fund
Invesco
Senior Loan Fund is a closed-end interval fund that continuously offers its shares pursuant to the terms and conditions of its prospectus.
The Adviser is the investment adviser for the Invesco Senior Loan Fund. As with the Invesco Funds, you generally may exchange your shares
of Class A (Invesco Cash Reserve Shares of Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio) or Class
C of any Invesco Fund for shares of Class A or Class C, respectively, of Invesco Senior Loan Fund. Please refer to the prospectus for
the Invesco Senior Loan Fund for more information, including limitations on exchanges out of Invesco Senior Loan Fund.
Exchanges
Not Permitted
The
following exchanges are not permitted:
◾
Investor
Class shares cannot be exchanged for Class A shares of any Fund which offers Investor Class shares.
◾
Class A2
shares of Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund cannot be exchanged for Class A shares
of those Funds.
◾
Invesco
Cash Reserve Shares cannot be exchanged for Class C or R shares if the shares being exchanged were acquired by exchange from Class A
shares of any Fund.
◾
All
existing systematic exchanges and reallocations will cease and these options will no longer be available on all 403(b) prototype plans.
◾
Class
A, C or R shares of a Fund acquired by exchange of Class Y shares of Invesco U.S. Government Money Portfolio cannot be exchanged for Class
Y shares of any Fund, except Class Y shares of Invesco U.S. Government Money Portfolio.
Exchange
Conditions
Shares
must have been held for at least one day prior to the exchange with the exception of dividends and distributions that are reinvested.
Under
unusual market conditions, a Fund may delay the exchange of shares
for up to five business days if it determines that it would be materially disadvantaged by the immediate transfer of exchange proceeds.
The exchange privilege is not an option or right to purchase shares. Any of the participating Funds or the distributor may modify or terminate
this privilege at any time.
Initial
Sales Charges, CDSCs and 12b-1 Fees Applicable to Exchanges
You
may be required to pay an initial sales charge when exchanging from a Fund with a lower initial sales charge than the one into which you
are exchanging. If you exchange into shares that are subject to a CDSC, the Funds’ transfer agent will begin the holding period
for purposes of calculating the CDSC on the date you made your initial purchase.
In
addition, as a result of differences in the forms of distribution plans among
the Funds, certain exchanges of Class A shares, Class C shares, and Class R shares of a Fund for the same class of shares of another Fund
may result in investors paying a higher or a lower 12b-1 fee on the Fund being exchanged into. Please refer to the prospectus fee table
and financial highlights table and the SAI for more information on the fees and expenses, including applicable 12b-1 fees, of the Fund
you wish to acquire.
Share
Class Conversions
Shares
of one class of a Fund may be converted into shares of another class of the same Fund, provided that you are eligible to buy that share
class. Investors who hold Fund shares through a financial intermediary that does not have an agreement to make certain share classes of
the Funds available or that cannot systematically support the conversion may not be eligible to convert their shares. Furthermore, your
financial intermediary may have discretion to effect a conversion on your behalf. Consult with your financial intermediary for details.
Any CDSC associated with the converting shares will be assessed immediately prior to the conversion to the new share class. The conversion
of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes and no gain
or loss will be reported on the transaction. See the applicable prospectus for share class information.
Fees
and expenses differ between share classes. You should read the prospectus
for the share class into which you are seeking to convert your shares prior to the conversion.
Automatic
Conversion of Class C and Class CX Shares
Class
C and Class CX shares held for eight years after purchase are eligible for automatic conversion into Class A and Class AX shares of the
same Fund, respectively, except that for the Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio, the Funds’
Class C and/or Class CX shares would be eligible to automatically convert into the Fund’s Invesco Cash Reserve Share Class and all
existing Class C shares of Invesco Short Term Municipal Fund will automatically convert to Class A shares of that Fund at the end of June
2022 (the Conversion Feature). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month
following the eighth anniversary after a purchase of Class C or Class CX shares (the Conversion Date). The first conversion of Class C
and Class CX shares to Class A and Class AX shares under this policy would occur at the end of December 2020 for all Class C and Class
CX shares that were held for more than eight years as of November 30, 2020.
Automatic
conversions pursuant to the Conversion Feature will be on the basis
of the NAV per share, without the imposition of any sales charge (including a CDSC), fee or other charge. All such automatic conversions
of Class C and Class CX shares will constitute tax-free exchanges for federal income tax purposes.
Class
C and Class CX shares of a Fund acquired through a reinvestment of
dividends and distributions will convert to Class A and Class AX shares, respectively, of the Fund (or Invesco Cash Reserve shares for
Invesco
A-16 The
Invesco Funds
Government
Money Market Fund) on the Conversion Date pro rata with the converting Class C and Class CX shares of that Fund that were not acquired
through reinvestment of dividends and distributions.
Class
C or Class CX shares held through a financial intermediary in existing
omnibus Employer Sponsored Retirement and Benefit Plans and other omnibus accounts may be converted pursuant to the Conversion Feature
by the financial intermediary once it is determined that the Class C or Class CX shares have been held for the required holding period.
It is the financial intermediary’s (and not the Fund’s) responsibility to keep records and to ensure that the shareholder
is credited with the proper holding period as the Fund and its agents may not have transparency into how long a shareholder has held Class
C or Class CX shares for purposes of determining whether such Class C or Class CX shares are eligible to automatically convert pursuant
to the Conversion Feature. In order to determine eligibility for automatic conversion in these circumstances, it is the responsibility
of the shareholder or their financial intermediary to determine that the shareholder is eligible to exercise the Conversion Feature, and
the shareholder or their financial intermediary may be required to maintain records that substantiate the holding period of Class C or
Class CX shares.
In
addition, a financial intermediary may sponsor and/or control programs
or platforms that impose a different conversion schedule or eligibility requirements for conversions of Class C or Class CX shares. In
these cases, Class C and Class CX shares of certain shareholders may not be eligible for automatic conversion pursuant to the Conversion
Feature as described above. The Fund has no responsibility for overseeing, monitoring or implementing a financial intermediary’s
process for determining whether a shareholder meets the required holding period for automatic conversion. Please consult with your financial
intermediary if you have any questions regarding the Conversion Feature.
Share
Class Conversions Not Permitted
The
following share class conversions are not permitted:
◾
Conversions
into Class A from Class A2 of the same Fund.
◾
Conversions
into Class A2, Class AX, Class CX, Class P or Class S of the same Fund.
Rights
Reserved by the Funds
Each
Fund and its agents reserve the right at any time to:
◾
Reject
or cancel all or any part of any purchase or exchange order.
◾
Modify
any terms or conditions related to the purchase, redemption or exchange of shares of any Fund.
◾
Reject
or cancel any request to establish a Systematic Purchase Plan or Systematic Redemption Plan.
◾
Modify
or terminate any sales charge waivers or exceptions.
◾
Suspend,
change or withdraw all or any part of the offering made by this prospectus.
Excessive
Short-Term Trading Activity (Market Timing) Disclosures
While
the Funds provide their shareholders with daily liquidity, their investment programs are designed to serve long-term investors and are
not designed to accommodate excessive short-term trading activity in violation of our policies described below. Excessive short-term trading
activity in the Funds’ shares (i.e., a purchase of Fund shares followed shortly thereafter by a redemption of such shares, or vice
versa) may hurt the long-term performance of certain Funds by requiring them to maintain an excessive amount of cash or to liquidate portfolio
holdings at a disadvantageous time, thus interfering with the efficient management of such Funds by causing them to incur increased brokerage
and administrative costs. Where excessive short-term trading activity seeks to take advantage of arbitrage opportunities from stale prices
for portfolio securities, the value of Fund shares held by long-term investors may be diluted. The Board has adopted policies and procedures
designed to discourage excessive or short-term trading of Fund shares for all Funds except the money market funds, Invesco Conservative
Income Fund, and Invesco Short Term Municipal Fund. However, there is the risk that these Funds’ policies and procedures will prove
ineffective in whole or in part to detect or prevent excessive or
short-term
trading. These Funds may alter their policies at any time without prior notice to shareholders if the Adviser believes the change would
be in the best interests of long-term shareholders.
Invesco
and certain of its corporate affiliates (Invesco and such affiliates,
collectively, the Invesco Affiliates) currently use the following tools designed to discourage excessive short-term trading in the retail
Funds:
◾
Trade
activity monitoring.
◾
Discretion
to reject orders.
◾
Purchase
blocking.
◾
The
use of fair value pricing consistent with the valuation policy approved by the Board and related procedures.
Each
of these tools is described in more detail below. Although these tools
are designed to discourage excessive short-term trading, you should understand that none of these tools alone nor all of them taken together
eliminate the possibility that excessive short-term trading activity in the Funds will occur. Moreover, each of these tools involves judgments
that are inherently subjective. Invesco Affiliates seek to make these judgments to the best of their abilities in a manner that they believe
is consistent with long-term shareholder interests.
Money
Market Funds. The Boards of Invesco Government Money Market Fund,
Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio (the money market
funds) have not adopted any policies and procedures that would limit frequent purchases and redemptions of such Funds’ shares. The
Boards of the money market funds considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal. Nonetheless, to the extent that a money market fund must maintain additional cash and/or
securities with short-term durations in greater amounts than may otherwise be required or borrow to honor redemption requests, the money
market fund’s yield could be negatively impacted.
The
Boards of the money market funds do not believe that it is appropriate
to adopt any such policies and procedures for the money market funds for the following reasons:
◾
The
money market funds are offered to investors as cash management vehicles; therefore, investors should be able to purchase and redeem shares
regularly and frequently.
◾
One
of the advantages of a money market fund as compared to other investment options is liquidity. Any policy that diminishes the liquidity
of the money market funds will be detrimental to the continuing operations of such Funds.
◾
With
respect to the money market funds maintaining a constant net asset value, the money market funds’ portfolio securities are valued
on the basis of amortized cost, and such Funds seek to maintain a constant net asset value. As a result, the money market funds are not
subject to price arbitrage opportunities.
◾
With
respect to the money market funds maintaining a constant net asset value, because such Funds seek to maintain a constant net asset value,
investors are more likely to expect to receive the amount they originally invested in the Funds upon redemption than other mutual funds.
Invesco
Conservative Income Fund. The Board of Invesco Conservative Income
Fund has not adopted any policies and procedures that would limit frequent purchases and redemptions of such Fund’s shares. The
Board of Invesco Conservative Income Fund considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal especially in light of the reasons for not having such a policy as described below. Nonetheless,
to the extent that the Fund must maintain additional cash and/or securities with short-term durations in greater amounts than may otherwise
be required or borrow to honor redemption requests, the Fund’s yield could be negatively impacted.
The
Board of the Invesco Conservative Income Fund does not believe that
it is appropriate to adopt any such policies and procedures for the Fund for the following reasons:
◾
The
Fund is offered to investors as a cash management vehicle; investors perceive an investment in the Fund as an alternative to cash and
must be able to purchase and redeem shares regularly and frequently.
A-17 The
Invesco Funds
◾
One
of the advantages of the Fund as compared to other investment options is liquidity. Any policy that diminishes the liquidity of the Fund
will be detrimental to the continuing operations of the Fund.
Excessive
trading activity in the Fund’s shares may cause the Fund to incur
increased brokerage and administrative costs.
The
Fund and its agent reserve the right at any time to reject or cancel any
part of any purchase order. This could occur if the Fund determines that such purchase may disrupt the Fund’s operation or performance.
Invesco
Short Term Municipal Fund. The Board of Invesco Short Term Municipal
Fund has not adopted any policies and procedures that would limit frequent purchases and redemptions of such Fund’s shares. The
Board of Invesco Short Term Municipal Fund considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal, especially in light of the reasons for not having such a policy as described below. Nonetheless,
to the extent that the Fund must maintain additional cash and/or securities with short-term durations in greater amounts than may otherwise
be required or borrow to honor redemption requests, the Fund’s yield could be negatively impacted.
The
Board of Invesco Short Term Municipal Fund does not believe that it is
appropriate to adopt any such policies and procedures for the Fund for the following reasons:
◾
The
Fund is designed to address the needs of retail investors who seek liquidity in their investment and seek the ability to purchase and
redeem shares at any time.
◾
Any
policy that diminishes the ability of shareholders to purchase and redeem shares of the Fund will be detrimental to the continuing operations
of the Fund.
◾
The
Fund generally invests in short duration liquid investment grade municipal securities.
Excessive
trading activity in the Fund’s shares may cause the Fund to incur
increased brokerage and administrative costs. The Fund and its agent reserve the right at any time to reject or cancel any part of any
purchase order. This could occur if the Fund determines that such purchase may disrupt the Fund’s operation or performance.
Trade
Activity Monitoring
Invesco
Affiliates monitor selected trades on a daily basis in an effort to detect excessive short-term trading activities. If, as a result of
this monitoring, Invesco Affiliates believe that a shareholder has engaged in excessive short-term trading, they will seek to act in a
manner that they believe is consistent with the best interests of long-term investors, which may include taking steps such as (i) asking
the shareholder to take action to stop such activities or (ii) refusing to process future purchases or exchanges related to such activities
in the shareholder’s accounts other than exchanges into a money market fund. Invesco Affiliates will use reasonable efforts to apply
the Funds’ policies uniformly given the practical limitations described above.
The
ability of Invesco Affiliates to monitor trades that are made through accounts
that are maintained by intermediaries (rather than the Funds’ transfer agent) and through conduit investment vehicles may be limited
or non-existent.
Discretion
to Reject Orders
If
a Fund or an Invesco Affiliate determines, in its sole discretion, that your short-term trading activity is excessive, the Fund may, in
its sole discretion, reject any additional purchase and exchange orders. This discretion may be exercised with respect to purchase or
exchange orders placed directly with the Funds’ transfer agent or through a financial intermediary.
Purchase
Blocking Policy
The
Funds (except those listed below) have adopted a policy under which any shareholder redeeming shares having a value of $50,000 or more
from a Fund on any trading day will be precluded from investing in that Fund for 30 calendar days after the redemption transaction date.
The policy applies to redemptions and purchases that are part of exchange transactions. Under the purchase blocking policy, certain purchases
will not be prevented and certain redemptions will not trigger a purchase block, such as: purchases
and redemptions
of shares having a value of less than $50,000; systematic purchase, redemption and exchange account options; transfers of shares within
the same Fund; non-discretionary rebalancing in fund-of-funds; asset allocation features; fee-based accounts; account maintenance fees;
small balance account fees; plan-level omnibus Retirement and Benefit Plans; death and disability and hardship distributions; loan transactions;
transfers of assets; Retirement and Benefit Plan rollovers; IRA conversions and re-characterizations; and mandatory distributions from
Retirement and Benefit Plans.
The
Funds reserve the right to modify any of the parameters (including those
not listed above) of the purchase blocking policy at any time. Further, the purchase blocking policy may be waived with respect to specific
shareholder accounts in those instances where the Adviser determines that its surveillance procedures are adequate to detect frequent
trading in Fund shares.
If
an account is maintained by a financial intermediary whose systems are
unable to apply Invesco’s purchase blocking policy, the Adviser will accept the establishment of an account only if the Adviser
believes the policies and procedures are reasonably designed to enforce the frequent trading policies of the Funds. You should refer to
disclosures provided by the financial intermediary with which you have an account to determine the specific trading restrictions that
apply to you. If the Adviser identifies any activity that may constitute frequent trading, it reserves the right to contact the intermediary
and request that the intermediary either provide information regarding an account owner’s transactions or restrict the account owner’s
trading. There is no guarantee that all instances of frequent trading in Fund shares will be prevented.
The
purchase blocking policy does not apply to Invesco Conservative Income
Fund, Invesco Short Term Municipal Fund, Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government
Money Portfolio and Invesco U.S. Government Money Portfolio.
Pricing
of Shares
Determination
of Net Asset Value
The
price of each Fund’s shares is the Fund’s net asset value per share. The Funds (except Invesco Government Money Market Fund,
Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio) value portfolio
securities for which market quotations are readily available at market value. Securities and other assets quoted in foreign currencies
are valued in U.S. dollars based on the prevailing exchange rates on that day. The Funds (except Invesco Government Money Market Fund,
Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio) value securities
and assets for which market quotations are unavailable at their “fair value,” which is described below. Invesco Government
Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio
value portfolio securities on the basis of amortized cost, which approximates market value. This method of valuation is designed to enable
a Fund to price its shares at $1.00 per share. The Funds cannot guarantee their net asset value will always remain at $1.00 per share.
Securities and other assets quoted in foreign currencies are valued in U.S. dollars based on the prevailing exchange rates on that day.
The Fund values securities and assets for which market quotations are unavailable at their “fair value,” which is described
below.
Even
when market quotations are available, they may be stale or not
representative of market value in the Adviser’s judgment (“unreliable”)
because the security is not traded frequently, trading on the security
ceased before the close of the trading market or issuer specific events occurred after the security ceased trading or because of the passage
of time between the close of the market on which the security trades and the close of the NYSE and when the Fund calculates its net asset
value. Issuer specific events may cause the last market quotation to be unreliable. Such events may include a merger or insolvency, events
that affect a geographical area or an industry segment, such as political events or natural disasters, or market events, such as a significant
movement in the U.S. market. Where
A-18 The
Invesco Funds
the Adviser
determines that the closing price of the security is stale or unreliable, the Adviser will value the security at its fair value.
A
fair value price is an estimated price that requires consideration of all appropriate factors, including indications of fair value available
from pricing services. Fair value pricing involves judgment and a Fund that uses fair value methodologies may value securities higher
or lower than another Fund using market quotations or its own fair value methodologies to price the same securities. Investors who purchase
or redeem Fund shares on days when the Fund is holding fair-valued securities may receive a greater or lesser number of shares, or higher
or lower redemption proceeds, than they would have received if the Fund had not fair-valued the security or had used a different methodology.
The
Board has designated the Adviser to perform the daily determination
of fair value prices in accordance with Board approved
policies and related procedures,
subject to the Board’s oversight. Fair value pricing methods
and pricing services can change from time to time.
The
intended effect of applying fair value pricing is to compute an NAV that
accurately reflects the value of a Fund’s portfolio at the time that the NAV is calculated. An additional intended effect is to
discourage those seeking to take advantage of arbitrage opportunities resulting from “stale” prices and to mitigate the dilutive
impact of any such arbitrage. However, the application of fair value pricing cannot eliminate the possibility that arbitrage opportunities
will exist.
Specific
types of securities are valued as follows:
Senior
Secured Floating Rate Loans and Senior Secured Floating Rate Debt
Securities. Senior secured floating rate loans and senior secured
floating rate debt securities are fair valued using evaluated quotes provided by an independent pricing service. Evaluated quotes provided
by the pricing service may reflect appropriate factors such as market quotes, ratings, tranche type, industry, company performance, spread,
individual trading characteristics, institution-size trading in similar groups of securities and other market data.
Domestic
Exchange Traded Equity Securities. Market quotations are generally
available and reliable for domestic exchange traded equity securities. If market quotations are not available or are unreliable, the Adviser
will value the security at fair value in good faith using the valuation policy approved by the Board and related procedures.
Foreign
Securities. If market quotations are available and reliable for
foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign
securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular
security and the close of the customary trading session on the NYSE events occur that are significant and may make the closing price unreliable,
the Fund may fair value the security. If an issuer specific event has occurred that the Adviser determines, in its judgment, is likely
to have affected the closing price of a foreign security, it will price the security at fair value. The Adviser also relies on a screening
process from a pricing vendor to indicate the degree of certainty, based on historical data, that the closing price in the principal market
where a foreign security trades is not the current market value as of the close of the NYSE. For foreign securities where the Adviser
believes, at the approved degree of certainty, that the price is not reflective of current market value, the Adviser will use the indication
of fair value from the pricing service to determine the fair value of the security. The pricing vendor, pricing methodology or degree
of certainty may change from time to time.
Fund
securities primarily traded on foreign markets may trade on days that
are not business days of the Fund. Because the net asset value of Fund shares is determined only on business days of the Fund, the value
of the portfolio securities of a Fund that invests in foreign securities may change on days when you will not be able to purchase or redeem
shares of the Fund.
Fixed
Income Securities. Fixed income securities, such as government,
corporate, asset-backed and municipal bonds, convertible securities, including high yield or junk bonds, and loans, generally are valued
on the basis of prices provided by independent pricing services. Prices provided by the pricing services may be determined without exclusive
reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in
similar
groups of securities, developments related to special securities, dividend rate, maturity and other market data. Pricing services generally
value fixed income securities assuming orderly transactions of institutional round lot size, but a Fund may hold or transact in the same
securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Prices received from pricing
services are fair value prices. In addition, if the price provided by the pricing service and independent quoted prices are unreliable,
the Adviser will fair value the security using the valuation policy approved by the Board and related procedures.
Short-term
Securities. Invesco Government Money Market Fund, Invesco Premier
Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio value all their securities at amortized
cost. Invesco Limited Term Municipal Income Fund values variable rate securities that have an unconditional demand or put feature exercisable
within seven days or less at par, which reflects the market value of such securities.
Futures
and Options. Futures contracts are valued at the final settlement
price set by the exchange on which they are principally traded. U.S.
exchange-traded options are valued at the mean between the last
bid and asked prices from the exchange on which they principally trade. Non-U.S. exchange-traded options are valued at the final settlement
price set by
the exchange on which they trade. Options not listed on an exchange and swaps generally are valued using pricing provided from independent
pricing services.
Swap
Agreements. Swap Agreements are fair valued using an evaluated
quote provided by an independent pricing service. Evaluated quotes provided by the pricing service are based on a model that may include
end of day net present values, spreads, ratings, industry and company performance.
Open-end
Funds. If a Fund invests in other open-end funds, other than open-end
funds that are exchange traded, the investing Fund will calculate its net asset value using the net asset value of the underlying fund
in which it invests, and the prospectuses for such open-end funds explain the circumstances under which they will use fair value pricing
and the effects of using fair value pricing.
Each
Fund, except for Invesco Government Money Market Fund, Invesco Premier
Portfolio and Invesco Premier U.S. Government Money Portfolio, generally determines the net asset value of its shares on each day the
NYSE is open for trading (a business day) as of approximately 4:00 p.m. Eastern Time (the customary close of regular trading) or earlier
in the case of a scheduled early close. In the event of an unscheduled early close of the NYSE, each Fund, except for Invesco Government
Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio, generally still will determine the net
asset value of its shares as of 4:00 p.m. Eastern Time on that business day. Portfolio securities traded on the NYSE would be valued at
their closing prices unless the Adviser determines
that a “fair value” adjustment is appropriate due to subsequent events occurring after an early close consistent with the
valuation policy approved
by the Board and related procedures. Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government
Money Portfolio will generally determine the net asset value of their shares at 5:30 p.m. Eastern Time on each business day. A business
day for Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio is any day
that (1) both the Federal Reserve Bank of New York and a Fund’s custodian are open for business and (2) the primary trading markets
for the Fund’s portfolio instruments are open and the Fund’s management believes there is an adequate market to meet purchase
and redemption requests. Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money
Portfolio are authorized not to open for trading on a day that is otherwise a business day if the Securities Industry and Financial Markets
Association (SIFMA) recommends that government securities dealers not open for trading; any such day will not be considered a business
day. Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio, Invesco
U.S. Government Money Portfolio also may close early on a business day if SIFMA recommends that government securities dealers close early.
If
A-19 The
Invesco Funds
Invesco
Government Money Market Fund, Invesco Premier Portfolio or Invesco Premier U.S. Government Money Portfolio uses its discretion to
close early on a business day, the Fund will calculate its net asset value as of the time of such closing Invesco Premier Portfolio and
Invesco U.S. Government Money Portfolio are authorized to not open for trading on a day that is otherwise a business day if the NYSE recommends
that government securities dealers not open for trading; any such day will not be considered a business day. Invesco Premier Portfolio
also may close early on a business day if the NYSE recommends that government securities dealers close early.
For
financial reporting purposes and shareholder transactions on the last
day of the fiscal quarter, transactions are normally accounted for on a trade date basis. For purposes of executing shareholder transactions
in the normal course of business (other than shareholder transactions at a fiscal period-end), each Fund’s portfolio securities
transactions are recorded no later than the first business day following the trade date.
The
Invesco Advantage International Fund, Invesco Balanced-Risk Allocation
Fund, Invesco Balanced-Risk Commodity Strategy Fund, Invesco Fundamental Alternatives Fund, Invesco Global Allocation Fund, Invesco Global
Strategic Income Fund, Invesco Gold & Special Minerals Fund, Invesco High Yield Bond Factor Fund, Invesco International Bond Fund
and Invesco Macro Allocation Strategy Fund may each invest up to 25% of their total assets in shares of their respective subsidiaries
(the Subsidiaries). The Subsidiaries offer to redeem all or a portion of their shares at the current net asset value per share every regular
business day. The value of shares of the Subsidiaries will fluctuate with the value of the respective Subsidiary’s portfolio investments.
The Subsidiaries price their portfolio investments pursuant to the same pricing and valuation methodologies and procedures used by the
Funds, which require, among other things, that each of the Subsidiaries’ portfolio investments be marked-to-market (that is, the
value on each of the Subsidiaries’ books changes) each business day to reflect changes in the market value of the investment.
Each
Fund’s current net asset value per share is made available on the Funds’
website at www.invesco.com/us.
Fair
Value Pricing
Securities
owned by a Fund (except Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio
and Invesco U.S. Government Money Portfolio) are to be valued at current market value if market quotations are readily available. All
other securities and assets of a Fund for which market quotations are not readily available are to be valued at fair value determined
in good faith consistent with the valuation policy approved by the Board and related procedures. An effect of fair value pricing may be
to reduce the ability of frequent traders to take advantage of arbitrage opportunities resulting from potentially “stale”
prices of portfolio holdings. However, it cannot eliminate the possibility of frequent trading.
The
price a Fund could receive upon the sale of any investment may differ
from the Adviser's valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair
valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions
(i.e., publicly traded company multiples, growth rate, time to exit), to determine a methodology that will result in a valuation that
the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value
from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and
the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the
investment.
Timing
of Orders
Each
Fund prices purchase, exchange and redemption orders at the net asset value next calculated by the Fund after the Fund’s transfer
agent, authorized agent or designee receives an order in good order for the Fund. Purchase, exchange and redemption orders must be received
prior to the close of business on a business day, as defined by the applicable Fund, to receive that day’s net asset value. Any
applicable sales charges are applied at the time an order is processed.
Currently,
certain financial intermediaries may serve as agents for the Funds
and accept orders on their behalf. Where a financial intermediary serves as agent, the order is priced at the Fund’s net asset value
next calculated after it is accepted by the financial intermediary. In such cases, if requested by a Fund, the financial intermediary
is responsible for providing information with regard to the time that such order for purchase, redemption or exchange was received. Orders
submitted through a financial intermediary that has not received authorization to accept orders on a Fund’s behalf are priced at
the Fund’s net asset value next calculated by the Fund after it receives the order from the financial intermediary and accepts it,
which may not occur on the day submitted to the financial intermediary.
Additional
Information Regarding Deferred Tax Liability (only applicable to the Invesco Steelpath Funds)
In
calculating the Fund’s daily NAV, the Fund will, among other things, account for its deferred tax liability and/or asset balances.
As a result, any deferred tax liability and/or asset is reflected in the Fund’s daily NAV.
The
Fund will accrue a deferred income tax liability balance, at the U.S. federal
corporate income tax rate plus an estimated state and local income tax rate for its future tax liability associated with MLP distributions
considered to be a return of capital, as well as for its future tax liability associated with the capital appreciation of its investments.
The Fund’s current and deferred tax liability, if any, will depend upon the Fund’s net investment gains and losses and realized
and unrealized gains and losses on investments and therefore may vary greatly from year to year depending on the nature of the Fund’s
investments, the performance of those investments and general market conditions. Any deferred tax liability balance will reduce the Fund’s
NAV. Upon the Fund’s sale of an MLP security, the Fund may be liable for previously deferred taxes.
The
Fund will accrue, in accordance with generally accepted accounting principles,
a deferred tax asset balance, which reflects an estimate of the Fund’s future tax benefit associated with net operating losses and
unrealized losses. Any deferred tax asset balance will increase the Fund’s NAV. To the extent the Fund has a deferred tax asset
balance, the Fund will assess, in accordance with generally accepted accounting principles, whether a valuation allowance, which would
offset the value of some or all of the Fund’s deferred tax asset balance, is required. Pursuant to Financial Accounting Standards
Board Accounting Standards Codification 740 (FASB ASC 740), the Fund will assess a valuation allowance to reduce some or all of the deferred
tax asset balance if, based on the weight of all available evidence, both negative and positive, it is more likely than not that some
or all of the deferred tax asset will not be realized. The Fund will use judgment in considering the relative impact of negative and positive
evidence. The weight given to the potential effect of negative and positive evidence will be commensurate with the extent to which such
evidence can be objectively verified. The Fund’s assessment considers, among other matters, the nature, frequency and severity of
current and cumulative losses, the duration of statutory carry forward periods and the associated risk that operating loss and capital
loss carry forwards may be limited or expire unused, and unrealized gains and losses on investments. Consideration is also given to market
cycles, the severity and duration of historical deferred tax assets, the impact of redemptions, and the level of MLP distributions. The
Fund will assess whether a valuation allowance is required to offset some or all of any deferred tax asset in connection with the calculation
of the Fund’s NAV per share each day; however, to the extent the final valuation allowance differs from the estimates the Fund used
in calculating the Fund’s daily NAV, the application of such final valuation allowance could have a material impact on the Fund’s
NAV.
The
Fund’s deferred tax asset and/or liability balances are estimated using
estimates of effective tax rates expected to apply to taxable income in the years such balances are realized. The Fund will rely to some
extent on information provided by MLPs in determining the extent to which distributions received from MLPs constitute a return of capital,
which may not be provided to the Fund on a timely basis, to estimate the Fund’s deferred tax liability and/or asset balances for
purposes of financial statement reporting and determining its NAV. If such information is not
A-20 The
Invesco Funds
received
from such MLPs on a timely basis, the Fund will estimate the extent to which distributions received from MLPs constitute a return of capital
based on average historical tax characterization of distributions made by MLPs. The Fund’s estimates regarding its deferred tax
liability and/or asset balances are made in good faith; however, the daily estimate of the Fund’s deferred tax liability and/or
asset balances used to calculate the Fund’s NAV could vary dramatically from the Fund’s actual tax liability. Actual income
tax expense, if any, will be incurred over many years, depending on if and when investment gains and losses are realized, the then-current
basis of the Fund’s assets and other factors. As a result, the determination of the Fund’s actual tax liability may have a
material impact on the Fund’s NAV. The Fund’s daily NAV calculation will be based on then current estimates and assumptions
regarding the Fund’s deferred tax liability and/or asset balances and any applicable valuation allowance, based on all information
available to the Fund at such time. From time to time, the Fund may modify its estimates or assumptions regarding its deferred tax liability
and/or asset balances and any applicable valuation allowance as new information becomes available. Modifications of the Fund’s estimates
or assumptions regarding its deferred tax liability and/or asset balances and any applicable valuation allowance, changes in generally
accepted accounting principles or related guidance or interpretations thereof, limitations imposed on net operating losses (if any) and
changes in applicable tax law could result in increases or decreases in the Fund’s NAV per share, which could be material.
Taxes
(applicable to all Funds except for the Invesco SteelPath Funds and Invesco Master Loan Fund)
A
Fund intends to qualify each year as a regulated investment company (RIC) and, as such, is not subject to entity-level tax on the income
and gain it distributes to shareholders. If you are a taxable investor, dividends and distributions you receive from a Fund generally
are taxable to you whether you reinvest distributions in additional Fund shares or take them in cash. Every year, you will be sent information
showing the amount of dividends and distributions you received from a Fund during the prior calendar year. In addition, investors in taxable
accounts should be aware of the following basic tax points as supplemented below where relevant:
Fund Tax
Basics
◾
A
Fund earns income generally in the form of dividends or interest on its investments. This income, less expenses incurred in the operation
of a Fund, constitutes the Fund’s net investment income from which dividends may be paid to you. If you are a taxable investor,
distributions of net investment income generally are taxable to you as ordinary income.
◾
Distributions
of net short-term capital gains are taxable to you as ordinary income. A Fund with a high portfolio turnover rate (a measure of how frequently
assets within a Fund are bought and sold) is more likely to generate short-term capital gains than a Fund with a low portfolio turnover
rate.
◾
Distributions
of net long-term capital gains are taxable to you as long-term capital gains no matter how long you have owned your Fund shares.
◾
A
portion of income dividends paid by a Fund to you may be reported as qualified dividend income eligible for taxation by individual shareholders
at long-term capital gain rates, provided certain holding period requirements are met. These reduced rates generally are available for
dividends derived from a Fund’s investment in stocks of domestic corporations and qualified foreign corporations. In the case of
a Fund that invests primarily in debt securities, either none or only a nominal portion of the dividends paid by the Fund will be eligible
for taxation at these reduced rates.
◾
The
use of derivatives by a Fund may cause the Fund to realize higher amounts of ordinary income or short-term capital gain, distributions
from which are taxable to individual shareholders at ordinary income tax rates rather than at the more favorable tax rates for long-term
capital gain.
◾
Distributions
declared to shareholders with a record date in October, November or December—if paid to you by the end of January—are taxable
for federal income tax purposes as if received in December.
◾
Any
long-term or short-term capital gains realized on the sale or redemption of your Fund shares will be subject to federal income tax. For
tax
purposes an exchange of your shares for shares of another Fund is the same as a sale. An exchange occurs when the purchase of shares of
a Fund is made using the proceeds from a redemption of shares of another Fund and is effectuated on the same day as the redemption. Your
gain or loss is calculated by subtracting from the gross proceeds your cost basis. Gross proceeds and, for shares acquired on or after
January 1, 2012 and disposed of after that date, cost basis will be reported to you and the Internal Revenue Service (IRS). Cost
basis will be calculated using the Fund’s default method of average cost, unless you instruct the Fund to use a different calculation
method. As a service to you, the Fund will continue to provide to you (but not the IRS) cost basis information for shares acquired before
2012, when available, using the average cost method. Shareholders should carefully review the cost basis information provided by a Fund
and make any additional basis, holding period or other adjustments that are required when reporting these amounts on their federal income
tax returns. If you hold your Fund shares through a broker (or other nominee), please contact that broker (nominee) with respect to reporting
of cost basis and available elections for your account. For more information about the cost basis methods offered by Invesco, please refer
to the Tax Center located under the Account Access & Forms menu of our website at www.Invesco.com/us.
◾
The
conversion of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes
and no gain or loss will be reported on the transaction. This is true whether the conversion occurs automatically pursuant to the terms
of the class or is initiated by the shareholder.
◾
At
the time you purchase your Fund shares, the Fund’s net asset value may reflect undistributed income or undistributed capital gains.
A subsequent distribution to you of such amounts, although constituting a return of your investment, would be taxable. Buying shares in
a Fund just before it declares an income dividend or capital gains distribution is sometimes known as “buying a dividend.”
In addition, a Fund’s net asset value may, at any time, reflect net unrealized appreciation, which may result in future taxable
distributions to you.
◾
By
law, if you do not provide a Fund with your proper taxpayer identification number and certain required certifications, you may be subject
to backup withholding on any distributions of income, capital gains, or proceeds from the sale of your shares. A Fund also must withhold
if the IRS instructs it to do so. When withholding is required, the amount will be 24% of any distributions or proceeds paid.
◾
An
additional 3.8% Medicare tax is imposed on certain net investment income (including ordinary dividends and capital gain distributions
received from a Fund and net gains from redemptions or other taxable dispositions of Fund shares) of U.S. individuals, estates and trusts
to the extent that such person’s “modified adjusted gross income” (in the case of an individual) or “adjusted
gross income” (in the case of an estate or trust) exceeds a threshold amount. This Medicare tax, if applicable, is reported by you
on, and paid with, your federal income tax return.
◾
You
will not be required to include the portion of dividends paid by a Fund derived from interest on U.S. government obligations in your
gross income for purposes of personal and, in some cases, corporate income taxes in many state and local tax jurisdictions. The percentage
of dividends that constitutes dividends derived from interest on federal obligations will be determined annually. This percentage may
differ from the actual percentage of interest received by the Fund on federal obligations for the particular days on which you hold shares.
◾
Fund
distributions and gains from sale or exchange of your Fund shares generally are subject to state and local income taxes.
◾
If
a Fund qualifies to pass through to you the tax benefits from foreign taxes it pays on its investments, and elects to do so, then any
foreign taxes it pays on these investments may be passed through to you. You will then be required to include your pro-rata share of these
taxes in gross income, even though not actually received by you, and will be entitled either to deduct your share of these taxes in computing
your taxable income, or to claim a foreign tax credit for these taxes against your U.S. federal income tax.
A-21 The
Invesco Funds
◾
Foreign
investors should be aware that U.S. withholding, special certification requirements to avoid U.S. backup withholding and claim
any treaty benefits, and estate taxes may apply to an investment in a Fund.
◾
Under
the Foreign Account Tax Compliance Act (FATCA), a Fund will be required to withhold a 30% tax on income dividends made by the Fund to
certain foreign entities, referred to as foreign financial institutions or non-financial foreign entities, that fail to comply (or be
deemed compliant) with extensive reporting and withholding requirements designed to inform the U.S. Department of the Treasury of U.S.-owned
foreign investment accounts. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide otherwise (which
is not expected). A Fund may disclose the information that it receives from its shareholders to the IRS, non-U.S. taxing authorities or
other parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that is a shareholder
of a Fund fails to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.
◾
If
a Fund invests in an underlying fund taxed as a RIC, please see any relevant section below for more information regarding the Fund’s
investment in such underlying fund.
The
above discussion concerning the taxability of Fund dividends and distributions and of redemptions and exchanges of Fund shares is inapplicable
to investors holding shares through a tax-advantaged arrangement, such as Retirement and Benefit Plans or 529 college savings plans. Such
investors should refer to the applicable account documents/program description for that arrangement for more information regarding the
tax consequences of holding and redeeming Fund shares.
Funds
Investing in Municipal Securities
◾
You
will not be required to include the “exempt-interest” portion of dividends paid by the Fund in either your gross income for
federal income tax purposes or your net investment income subject to the additional 3.8% Medicare tax. You will be required to report
the receipt of exempt-interest dividends and other tax-exempt interest on your federal income tax returns. The percentage of dividends
that constitutes exempt-interest dividends will be determined annually. This percentage may differ from the actual percentage of exempt
interest received by the Fund for the particular days in which you hold shares.
◾
A
Fund may invest in municipal securities the interest on which constitutes an item of tax preference and could give rise to a federal alternative
minimum tax liability for noncorporate shareholders, unless such municipal securities were issued in 2009 or 2010.
◾
Exempt-interest
dividends from interest earned on municipal securities of a state, or its political subdivisions, generally are exempt from that state’s
personal income tax. Most states, however, do not grant tax-free treatment to interest from municipal securities of other states.
◾
A
Fund may invest a portion of its assets in securities that pay income that is not tax-exempt. To the extent that dividends paid by a Fund
are derived from taxable investments or realized capital gains, they will be taxable as ordinary income or long-term capital gains.
◾
A
Fund may distribute to you any market discount and net short-term capital gains from the sale of its portfolio securities. If you are
a taxable investor, Fund distributions from this income are taxable to you as ordinary income, and generally will neither qualify for
the dividends-received deduction in the case of corporate shareholders nor as qualified dividend income subject to reduced rates of taxation
in the case of noncorporate shareholders.
◾
Exempt-interest
dividends from a Fund are taken into account when determining the taxable portion of your social security or railroad retirement benefits,
may be subject to state and local income taxes, may affect the deductibility of interest on certain indebtedness, and may have other collateral
federal income tax consequences for you.
◾
There
are risks that: (a) a security issued as tax-exempt may be reclassified by the IRS or a state tax authority as taxable and/or (b) future
legislative,
administrative or court actions could adversely impact the qualification of income from a tax-exempt security as tax-free. Such reclassifications
or actions could cause interest from a security to become taxable, possibly retroactively, subjecting you to increased tax liability.
In addition, such reclassifications or actions could cause the value of a security, and therefore, the value of the Fund’s shares,
to decline.
Money
Market Funds
◾
A
Fund does not anticipate realizing any long-term capital gains.
◾
If
a Fund expects to maintain a stable net asset value of $1.00 per share, investors should not have any gain or loss on sale or exchange
of Fund shares (unless the investor incurs a liquidity fee on such sale or exchange). See “Liquidity Fees and Redemption Gates.”
◾
There
is some degree of uncertainty with respect to the tax treatment of liquidity fees received by a Fund, and such tax treatment may be the
subject of future IRS guidance. If a Fund receives liquidity fees, it will consider the appropriate tax treatment of such fees to the
Fund at such time.
◾
Unless
you choose to adopt a simplified “NAV method” of accounting (described below), any capital gain or loss on the sale or exchange
of Fund shares (as noted above) generally will be treated either as short-term if you held your Fund shares for one year or less, or long-term
if you held your Fund shares longer. If you elect to adopt the NAV method of accounting, rather than computing gain or loss on every taxable
disposition of Fund shares as described above, you would determine your gain or loss based on the change in the aggregate value of your
Fund shares during a computation period (such as your taxable year), reduced by your net investment (purchases minus sales) in those shares
during that period. Under the NAV method, any resulting net capital gain or loss would be treated as short-term capital gain or loss.
Funds
Investing in Real Estate Securities
◾
Because
of “noncash” expenses such as property depreciation, the cash flow of a REIT that owns properties will exceed its taxable
income. The REIT, and in turn a Fund, may distribute this excess cash to shareholders. Such a distribution is classified as a return of
capital. Return of capital distributions generally are not taxable to you. Your cost basis in your Fund shares will be decreased by the
amount of any return of capital. Any return of capital distributions in excess of your cost basis will be treated as capital gains.
◾
Dividends
paid to shareholders from the Funds’ investments in U.S. REITs generally will not qualify for taxation at long-term capital gain
rates applicable to qualified dividend income.
◾
The
Fund may derive “excess inclusion income” from certain equity interests in mortgage pooling vehicles either directly or through
an investment in a U.S. REIT. Please see the SAI for a discussion of the risks and special tax consequences to shareholders in the event
the Fund realizes excess inclusion income in excess of certain threshold amounts.
◾
Under
the Tax Cuts and Jobs Act, “qualified REIT dividends” (i.e., ordinary REIT dividends other than capital gain dividends and
portions of REIT dividends designated as qualified dividend income) are treated as eligible for a 20% deduction by noncorporate taxpayers.
The Fund may choose to report the special character of “qualified REIT dividends” to a shareholder, provided both the Fund
and a shareholder meet certain holding period requirements with respect to their shares.
◾
The
Fund’s foreign shareholders should see the SAI for a discussion of the risks and special tax consequences to them from a sale of
a U.S. real property interest by a REIT in which the Fund invests.
Funds
Investing in Partnerships
◾
Taxes,
penalties, and interest associated with an audit of a partnership
are generally required to be assessed and collected at the partnership level. Therefore, an adverse federal income tax audit of a partnership
that a Fund invests in (including MLPs taxed as partnerships) could result in the Fund being required to pay federal income tax. A Fund
may have little input in any audit asserted against a partnership and may be contractually or legally obligated to make payments in regard
to deficiencies asserted without the ability to put forward an independent defense. Accordingly,
A-22 The
Invesco Funds
even
if a partnership in which the Fund invests were to remain classified as a partnership (instead of as a corporation), it could be required
to pay additional taxes, interest and penalties as a result of an audit adjustment, and the Fund, as a direct or indirect partner of such
partnership, could be required to bear the economic burden of those taxes, interest and penalties, which would reduce the value of Fund
shares.
◾
Under
the Tax Cuts and Jobs Act “qualified publicly traded partnership income” is treated as eligible for a 20% deduction by noncorporate
taxpayers. The legislation does not contain a provision permitting a RIC, such as a Fund, to pass the special character of this income
through to its shareholders. It is uncertain whether a future technical corrections bill or regulations issued by the IRS will address
this issue to enable a Fund to pass through the special character of “qualified publicly traded partnership income” to its
shareholders.
◾
Some
amounts received by a Fund from the MLPs in which it invests likely will be treated as returns of capital to such Fund because of accelerated
deductions available to the MLPs. The receipt of returns of capital from the MLPs in which a Fund invests could cause some or all of the
Fund’s distributions to be classified as a return of capital. Return of capital distributions generally are not taxable to you.
Your cost basis in your Fund shares will be decreased by the amount of any return of capital. Any return of capital distributions in excess
of your cost basis will be treated as capital gains.
Funds
Investing in Commodities
◾
The
Funds’ strategies of investing through their respective Subsidiary in derivatives and other financially linked instruments whose
performance is expected to correspond to the commodity markets may cause the Funds to recognize more ordinary income and short-term capital
gains taxable as ordinary income than would be the case if the Funds invested directly in commodities.
◾
The
Funds must meet certain requirements under the Code for favorable tax treatment as a RIC, including asset diversification and income requirements.
The IRS has issued a revenue ruling which holds that income derived from commodity-linked swaps is not qualifying income for purposes
of the Income Requirement. In a subsequent revenue ruling, as well as in a number of follow-on private letter rulings (upon which only
the fund that received the private letter ruling may rely), the IRS provides that income from certain alternative investments which create
commodity exposure, such as certain commodity-linked or structured notes or a corporate subsidiary that invests in commodities, may be
considered qualifying income under the Code. However, the portion of such rulings relating to the treatment of a corporation as a regulated
investment company that require a determination of whether a financial instrument or position is a security under section 2(a)(36) of
the 1940 Act was revoked because of changes in the IRS’s position.
(A financial instrument or position that constitutes a security
under section 2(a)(36) of the 1940 Act generates qualifying income for a corporation taxed as a regulated investment company.) The Funds
intend to treat the income each derives from commodity-linked notes as qualifying income based on an opinion from counsel confirming that
income from such investments should be qualifying income because such commodity-linked notes constitute securities under section 2(a)(36)
of the 1940 Act. Each Subsidiary will be classified for federal income tax purposes as a controlled foreign corporation (CFC) with respect
to the Fund. As such, the Fund will be required to include in its gross income each year amounts earned by the Subsidiary during that
year (“Subpart F” income), whether or not such earnings are distributed by the Subsidiary to the Fund (deemed inclusions).
Treasury Regulations also permit the Fund to treat such deemed inclusions of “Subpart F” income from the Subsidiary as qualifying
income to the Fund, even if the Subsidiary does not make a distribution of such income. Consequently, the Fund and the Subsidiary reserve
the right to rely on deemed inclusions being treated as qualifying income to the Fund consistent with recently released Treasury Regulations.
If, contrary to the opinion of counsel or other guidance issued by the IRS, the IRS were to determine that income from direct investment
in commodity-linked notes is non-qualifying, a Fund might fail to satisfy
the
income requirement. In lieu of disqualification, the Funds are permitted to pay a tax for certain failures to satisfy the asset diversification
or income requirements, which, in general, are limited to those due to reasonable cause and not willful neglect. The Funds intend to limit
their investments in their respective Subsidiary to no more than 25% of the value of each Fund’s total assets in order to satisfy
the asset diversification requirement.
Funds
Investing in Foreign Currencies
◾
The
Funds may realize gains from the sale or other disposition of foreign currencies (including but not limited to gains from options, futures
or forward contracts) derived from investing in securities or foreign currencies. The U.S. Treasury Department is authorized to issue
regulations on whether the realization of such foreign currency gains is qualified income for the Funds. If such regulations are issued,
each Fund may not qualify as a RIC and/or the Fund may change its investment policy. As of the date of this prospectus, no regulations
have been issued pursuant to this authorization. It is possible, however, that such regulations may be issued in the future. Additionally,
the IRS has not issued any guidance on how to apply the asset diversification test to such foreign currency positions. Thus, the IRS’
determination as to how to treat such foreign currency positions for purposes of satisfying the asset diversification test might differ
from that of each Fund resulting in the Fund’s failure to qualify as a RIC. In lieu of disqualification, each Fund is permitted
to pay a tax for certain failures to satisfy the asset diversification or income requirements, which, in general, are limited to those
due to reasonable cause and not willful neglect.
◾
The
Funds’ transactions in foreign currencies may give rise to ordinary income or loss to the extent such income or loss results from
fluctuations in the value of the foreign currency concerned. This treatment could increase or decrease the Funds' ordinary income distributions
to you, and may cause some or all of the Funds' previously distributed income to be classified as a return of capital. Return of capital
distributions generally are not taxable to you. Your cost basis in your Fund shares will be decreased by the amount of any return of capital.
Any return of capital distributions in excess of your cost basis will be treated as capital gains.
This
discussion of “Taxes” is for general information only and not
tax advice. All investors should consult their own tax advisers as to the federal, state, local and foreign tax provisions applicable
to them.
Taxes
(applicable to the Invesco SteelPath Funds
only)
Although
the Code generally provides that a RIC does not pay an entity-level income tax, provided that it distributes all or substantially all
of its income, the Fund is not and does not anticipate becoming eligible to elect to be treated as a RIC because most or substantially
all of the Fund’s investments will consist of investments in MLP securities. The RIC tax rules therefore have no application to
the Fund or to its shareholders. As a result, the Fund is treated as a regular corporation, or “C” corporation, for U.S. federal
income tax purposes, and generally is subject to U.S. federal income tax on its taxable income at the corporate income tax rate. In addition,
as a regular corporation, the Fund will be subject to state and local taxes by reason of its tax status and its investments in MLPs. Therefore,
the Fund may have to pay federal, multiple state, and local taxes, which would reduce the Fund’s cash available to make distributions
to shareholders. An estimate for federal, state, and local tax liabilities will reduce the fund’s net asset value. The extent to
which the Fund is required to pay U.S. federal, state or local corporate income, franchise or other corporate taxes could materially reduce
the Fund’s cash available to make distributions to shareholders. In addition, investors in taxable accounts should be aware of the
following basic tax points as supplemented below where relevant:
Fund
Tax Basics
◾
The
Fund intends to invest a significant portion of its assets in MLPs, which are generally treated as partnerships for U.S. federal income
tax purposes. To the extent that the Fund invests in equity securities of an MLP, the Fund will be a partner in such MLP. Accordingly,
the Fund will be
A-23 The
Invesco Funds
required
to take into account the Fund’s allocable share of the income, gains, losses, deductions, and credits recognized by each such MLP,
regardless of whether the MLP distributes cash to the Fund. MLP distributions to partners, such as the Fund, are not taxable unless the
cash amount (or in certain cases, the fair market value of marketable securities) distributed exceeds the Fund’s basis in its MLP
interest. The Fund expects that the cash distributions it will receive with respect to its investments in equity securities of MLPs will
exceed the net taxable income allocated to the Fund from such MLPs because of tax deductions such as depreciation, amortization and depletion
that will be allocated to the Fund from the MLPs. No assurance, however, can be given in this regard. If this expectation is not realized,
the Fund will have a larger corporate income tax expense than expected, which will result in less cash available for distribution to shareholders.
◾
The
Fund will recognize gain or loss on the sale, exchange or other taxable disposition of its portfolio assets, including equity securities
of MLPs, equal to the difference between the amount realized by the Fund on the sale, exchange or other taxable disposition and the Fund’s
adjusted tax basis in such assets. Any such gain will be subject to U.S. federal income tax at the corporate income tax rate, regardless
of how long the Fund has held such assets since preferential capital gain rates do not apply to regular corporations such as the Fund.
The amount realized by the Fund in any case generally will be the amount paid by the purchaser of the assets plus, in the case of MLP
equity securities, the Fund’s allocable share, if any, of the MLP’s debt that will be allocated to the purchaser as a result
of the sale, exchange or other taxable disposition. The Fund’s tax basis in its equity securities in an MLP generally is equal to
the amount the Fund paid for the equity securities, (i) increased by the Fund’s allocable share of the MLP’s net taxable income
and certain MLP debt, if any, and (ii) decreased by the Fund’s allocable share of the MLP’s net losses and any distributions
received by the Fund from the MLP. Although any distribution by an MLP to the Fund in excess of the Fund’s allocable share of such
MLP’s net taxable income may create a temporary economic benefit to the Fund, net of a deferred tax liability, such distribution
will decrease the Fund’s tax basis in its MLP investment and will therefore increase the amount of gain (or decrease the amount
of loss) that will be recognized on the sale of an equity security in the MLP by the Fund. To the extent that the Fund has a net capital
loss in any year, the net capital loss can be carried back three taxable years and forward five taxable years to reduce the Fund’s
capital gains in such years. In the event a capital loss carryover cannot be utilized in the carryover periods, the Fund’s federal
income tax liability may be higher than expected, which will result in less cash available to distribute to shareholders.
◾
Distributions
by the Fund of cash or property in respect of the shares (other than certain distributions in redemption of shares) will be treated as
dividends for U.S. federal income tax purposes to the extent paid from the Fund’s current or accumulated earnings and profits (as
determined under U.S. federal income tax principles). Generally, the Fund’s earnings and profits are computed based upon the Fund’s
taxable income (loss), with certain specified adjustments. Any such dividend likely will be eligible for the dividends-received deduction
if received by an otherwise qualifying corporate U.S. shareholder that meets certain holding period and other requirements for the dividends-received
deduction. Dividends paid by the Fund to certain non-corporate U.S. shareholders (including individuals), generally are eligible for U.S.
federal income taxation at the rates generally applicable to long-term capital gains for individuals provided that the U.S. shareholder
receiving the dividend satisfies applicable holding period and other requirements. Otherwise, dividends paid by the Fund to non-corporate
U.S. Shareholders (including individuals) will be taxable at ordinary income rates.
◾
If
the amount of a Fund distribution exceeds the Fund’s current and accumulated earnings and profits, such excess will be treated first
as a tax-deferred return of capital to the extent of, and in reduction of, a shareholder’s tax basis in the shares, and thereafter
as capital gain to the extent the shareholder held the shares as a capital asset. Any such capital gain will be long-term capital gain
if such shareholder has held the applicable shares for more than one year. The portion of the distribution
received
by a shareholder from the Fund that is treated as a return of capital will decrease the shareholder’s tax basis in his or her Fund
shares (but not below zero), which will result in an increase in the amount of gain (or decrease in the amount of loss) that will be recognized
by the shareholder for tax purposes on the later sale of such Fund shares.
◾
The
Fund anticipates that the cash distributions it will receive with respect to its investments in equity securities of MLPs and which it
will distribute to its shareholders will exceed the Fund’s current and accumulated earnings and profits. Accordingly, the Fund expects
that only a part of its distributions to shareholders with respect to the shares will be treated as dividends for U.S. federal income
tax purposes. No assurance, however, can be given in this regard.
◾
Special
rules may apply to the calculation of the Fund’s earnings and profits. For example, the Fund’s earnings and profits will be
calculated using the straight-line depreciation method rather than the accelerated depreciation method. This difference in treatment may,
for example, result in the Fund’s earnings and profits being higher than the Fund’s taxable income or loss in a particular
year if the MLPs in which the Fund invests calculate their income using accelerated depreciation. Because of these special earnings profits
rules, the Fund may make distributions in a particular year out of earnings and profits (treated as dividends) in excess of the amount
of the Fund’s taxable income or loss for such year, which means that a larger percentage of the Fund ’s distributions could
be taxable to shareholders as ordinary income instead of tax-deferred return of capital or capital gain.
◾
Shareholders
that receive distributions in shares rather than in cash will be treated for U.S. federal income tax purposes as having (i) received a
cash distribution equal to the fair market value of the shares received and (ii) reinvested such amount in shares.
◾
A
redemption of shares will be treated as a sale or exchange of such shares, provided the redemption is not essentially equivalent to a
dividend, is a substantially disproportionate redemption, is a complete redemption of a shareholder’s entire interest in the Fund,
or is in partial liquidation of such Fund. Redemptions that do not qualify for sale or exchange treatment will be treated as distributions
as described above. Upon a redemption treated as a sale or exchange under these rules, a shareholder generally will recognize capital
gain or loss equal to the difference between the adjusted tax basis of his or her shares and the amount received when they are sold.
◾
If
the Fund is required to sell portfolio securities to meet redemption requests, the Fund may recognize income and gains for U.S. federal,
state and local income and other tax purposes, which may result in the imposition of corporate income or other taxes on the Fund and may
increase the Fund’s current and accumulated earnings and profits, which will result in a greater portion of distributions to Fund
shareholders being treated as dividends. Any long-term or short-term capital gains realized on sale or redemption of your Fund shares
will be subject to federal income tax. For tax purposes an exchange of your shares for shares of another Fund is the same as a sale. An
exchange occurs when the purchase of shares of a Fund is made using the proceeds from a redemption of shares of another Fund and is effectuated
on the same day as the redemption. Your gain or loss is calculated by subtracting from the gross proceeds your cost basis. Gross proceeds
and, for shares acquired on or after January 1, 2012 and disposed of after that date, cost basis will be reported to you and the IRS.
Cost basis will be calculated using the Fund’s default method of first-in, first-out (FIFO), unless you instruct the Fund to use
a different calculation method. Shareholders should carefully review the cost basis information provided by a Fund and make any additional
basis, holding period or other adjustments that are required when reporting these amounts on their federal income tax returns. If you
hold your Fund shares through a broker (or other nominee), please contact that broker (nominee) with respect to reporting of cost basis
and available elections for your account. For more information about the cost basis methods offered by Invesco, please refer to the Tax
Center located under the Account Access & Forms menu of our website at www.invesco.com/us.
A-24 The
Invesco Funds
◾
The
conversion of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes
and no gain or loss will be reported on the transaction. This is true whether the conversion occurs automatically pursuant to the terms
of the class or is initiated by the shareholder.
◾
At
the time you purchase your Fund shares, the Fund’s net asset value may reflect undistributed income. A subsequent distribution to
you of such amounts, although constituting a return of your investment, would be taxable. Buying shares in a Fund just before it declares
an income dividend is sometimes known as “buying a dividend.” In addition, a Fund’s net asset value may, at any time,
reflect net unrealized appreciation, which may result in future taxable distributions to you.
◾
By
law, if you do not provide a Fund with your proper taxpayer identification number and certain required certifications, you may be subject
to backup withholding on any distributions of income, capital gains, or proceeds from the sale of your shares. A Fund also must withhold
if the IRS instructs it to do so. When withholding is required, the amount will be 24% of any distributions or proceeds paid.
◾
A
3.8% Medicare tax is imposed on certain net investment income (including ordinary dividends received from a Fund and net gains from redemptions
or other taxable dispositions of Fund shares) of U.S. individuals, estates and trusts to the extent that such person’s “modified
adjusted gross income” (in the case of an individual) or “adjusted gross income” (in the case of an estate or trust)
exceeds a threshold amount. This Medicare tax, if applicable, is reported by you on, and paid with, your federal income tax return.
◾
Fund
distributions and gains from sale or exchange of your Fund shares generally are subject to state and local income taxes.
◾
Foreign
investors should be aware that U.S. withholding, special certification requirements to avoid U.S. backup withholding and claim any treaty
benefits, and estate taxes may apply to an investment in a Fund.
◾
Under
the Foreign Account Tax Compliance Act (FATCA), a Fund will be required to withhold a 30% tax on income dividends made by the Fund to
certain foreign entities, referred to as foreign financial institutions or non-financial foreign entities, that fail to comply (or be
deemed compliant) with extensive reporting and withholding requirements designed to inform the U.S. Department of the Treasury of U.S.-owned
foreign investment accounts. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide otherwise (which
is not expected). A Fund may disclose the information that it receives from its shareholders to the IRS, non-U.S. taxing authorities or
other parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that is a shareholder
of a Fund fails to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.
◾
Taxes,
penalties, and interest associated with an audit of a partnership are generally required to be assessed and collected at the partnership
level. Therefore, an adverse federal income tax audit of an MLP taxed as a partnership that the Fund invests in could result in the Fund
being required to pay federal income tax. The Fund may have little input in any audit asserted against an MLP and may be contractually
or legally obligated to make payments in regard to deficiencies asserted without the ability to put forward an independent defense. Accordingly,
even if an MLP in which the Fund invests were to remain classified as a partnership, it could be required to pay additional taxes, interest
and penalties as a result of an audit adjustment, and the Fund, as a direct or indirect partner of such MLP, could be required to bear
the economic burden of those taxes, interest and penalties, which would reduce the value of Fund shares.
◾
Under
the Tax Cuts and Jobs Act certain “qualified publicly traded partnership income” (e.g., certain income from certain of the
MLPs in which the Fund invests) is treated as eligible for a 20% deduction by noncorporate taxpayers. The Tax Cuts and Jobs Act does not
contain a provision permitting an entity, such as the Fund, to benefit from this
deduction
(since the Fund is taxed as a “C” corporation) or pass the special character of this income through to its shareholders. Qualified
publicly traded partnership income allocated to a noncorporate investor investing directly in an MLP might, however, be eligible for the
deduction.
The
above discussion concerning the taxability of Fund dividends and distributions
and of redemptions and exchanges of Fund shares is inapplicable to investors holding shares through a tax-advantaged arrangement, such
as Retirement and Benefit Plans or 529 college savings plans. Such investors should refer to the applicable account documents/program
description for that arrangement for more information regarding the tax consequences of holding and redeeming Fund shares.
This
discussion of “Taxes” is for general information only and not
tax advice. All investors should consult their own tax advisers as to the federal, state, local and foreign tax provisions applicable
to them.
Federal
Income Taxes (applicable to Invesco Master Loan Fund only)
United
States Taxes
The
Fund is classified as a partnership and will not be a regulated investment company for US federal income tax purposes. As a partnership,
the Fund is not a taxable entity for federal income tax purposes and, subject to the application of the partnership audit rules described
below, incurs no federal income tax liability. Each Investor is required to take into account its proportionate share of items of income,
gain, loss and deduction of the partnership in computing its federal income tax liability regardless of whether or not cash or property
distributions are then made by the Fund. Following the close of the Fund’s taxable year end, Investors will receive a tax statement
entitled Schedule K-1 Partner’s Share of Income, Deductions, Credits, etc., which reports the tax status of their distributive share
of the Fund’s items for the previous year.
Taxation
of Distributions, Sales and Exchanges
In
general, distributions of money by the Fund to an Investor will represent a non-taxable return of capital up to the amount of an Investor’s
adjusted tax basis in its shares. An Investor will recognize gain to the extent that any money distributed by the Fund exceeds the Investor’s
adjusted tax basis in its shares. In the case of a non-taxable return of capital by the Fund to an Investor, other than in liquidation
of the Investor’s interest in the Fund, the tax basis of his shares will be reduced (but not below zero) and will result in an increase
in the amount of gain (or decrease in the amount of loss) that will be recognized by the Investor on the later sale of its shares. A distribution
in partial or complete redemption of your shares in the Fund is taxable as a sale or exchange only to the extent the amount of money received
exceeds the tax basis of your entire interest in the Fund. Any loss may be recognized only if you redeem your entire interest in the Fund
for money.
When
you sell shares of the Fund, you may have a capital gain or loss.
Derivatives
The
use of derivatives by the Fund may cause the Fund to realize higher amounts of ordinary income or short-term capital gain, allocations
of which are taxable to individual Investors at ordinary income tax rates rather than at the more favorable tax rates for long-term capital
gain. Changes in government regulation of derivative instruments could affect the character, timing and amount of the Fund’s taxable
income or gains, and may limit the Fund from using certain types of derivative instruments as part of its investment strategy.
Risk
of Audit of the Fund
Under
the partnership audit rules, which are generally applicable to tax years beginning after December 31, 2017, the Internal Revenue Service
(“IRS”) may collect any taxes resulting from audit adjustments to the Fund’s income tax returns (including any applicable
penalties and interest) directly from the Fund. In that case, current Investors would bear some or all of the
A-25 The
Invesco Funds
tax liability
resulting from such audit adjustment, even if they did not own interests in the Fund during the tax year under audit. The Fund may have
the ability to shift any such tax liability to the Investors in accordance with their interests in the Fund during the year under audit,
but there can be no assurance that the Fund will be able to do so under all circumstances. For taxable years not subject to the new audit
rules, items of Fund income, gain, loss, deduction and credit will be determined at the Fund level in a unified audit. NO REPRESENTATION
OR WARRANTY OF ANY KIND IS MADE WITH RESPECT TO THE TAXATION, DEDUCTIBILITY OR CAPITALIZATION OF ANY ITEM BY THE FUND OR INVESTOR. In
addition, the “partnership representative” (tax matters partner, for taxable years before the partnership audit rules become
effective) will have the sole authority to act on the Fund’s behalf for purposes of, among other things, federal income tax audits
and judicial review of administrative adjustments by the IRS, and any such actions will be binding on the Fund and all of the Investors.
Unrelated
Business Taxable Income
An
allocable share of a tax-exempt Investor’s income will be “unrelated business taxable income” (“UBTI”) to
the extent that the Fund borrows money to acquire property or invests in assets that produce UBTI.
Medicare
Tax
An
additional 3.8% Medicare tax is imposed on certain net investment income of US individuals, estates and trusts to the extent that such
person’s “modified adjusted gross income” (in the case of an individual) or “adjusted gross income” (in
the case of an estate or trust) exceeds a threshold amount. “Net investment income,” for these purposes, means investment
income (including (i) net gains from the taxable disposition of shares of a Fund to the extent the net gain would be taken into account
by the Investor if the Fund sold all of its property for fair market value immediately before the disposition of the shares of the Fund,
and (ii) an allocable share of a Fund’s interest, dividends and net gains) reduced by the deductions properly allocable to such
income. This Medicare tax, if applicable, is reported by Investors on, and paid with, the Investor’s federal income tax return.
State,
Local and Non-US Tax Matters
An
Investor’s distributive share of the Fund’s income, and gains from the sale or exchange of an Investor’s Fund shares,
generally are subject to state and local taxes in the jurisdiction in which the Investor resides or is otherwise subject to tax.
Prospective
investors should consider their individual state and local tax consequences
of an investment in the Fund.
Tax
Considerations for Non-US Investors
If,
as anticipated, the Fund is not deemed to be engaged in a US trade or business, the Fund generally will be required to withhold tax on
the distributive share of certain items of gross income from US sources allocated to non-US Investors at a 30% (or lower treaty) rate.
Certain categories of income, including portfolio interest, are not subject to US withholding tax. Capital gains (other than gain realized
on disposition of US real property interests) are not subject to US withholding tax unless the non-US Investor is a nonresident alien
individual present in the United States for a period or periods aggregating 183 days or more during the taxable year. If, on the other
hand, the Fund derives income which is effectively connected with a US trade or business carried on by the Fund, this 30% tax will not
apply to such effectively connected income of the Fund, and the Fund generally will be required to withhold tax from the amount of effectively
connected income allocable to non-US Investors at the highest rate of tax applicable to US residents, and non-US Investors generally would
be required to file US income tax returns and be subject to US income tax on a net basis. Gain or loss on a sale of shares will be treated
as effectively connected with a U.S. trade or business to the extent that a foreign corporation or foreign individual that owns the shares
(whether directly or indirectly through other partnerships) would have had effectively connected gain or loss had the partnership sold
its underlying assets and applicable US
withholding
tax will apply. Non-US Investors may be subject to US estate tax and are subject to special US tax certification requirements.
Other
Reporting and Withholding Requirements
Under
the Foreign Account Tax Compliance Act (“FATCA”), the Fund will be required to withhold at a 30% rate on certain US source
payments (such as interest and dividends) to certain Investors if the Investor fails to provide the Fund with the information which identifies
its direct and indirect US ownership. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide otherwise (which
is not expected). A Fund may disclose the information that it receives from an Investor to the IRS, non-US taxing authorities or other
parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that is an Investor fails
to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.
For
a more complete discussion of the federal income tax consequences
of investing in the Fund, see the Statement of Additional Information.
This
discussion of “Federal Income Taxes” is not intended or written
to be used as tax advice. Because everyone’s tax situation is unique, Investors should consult their tax professional about federal,
state, local and foreign tax consequences before making an investment in the Fund.
Payments
to Financial Intermediaries – All Share Classes except Class R6 shares
The
financial adviser or intermediary through which you purchase your shares may receive all or a portion of the sales charges and distribution
fees discussed above. In addition to those payments, Invesco Distributors and other Invesco Affiliates, may make additional cash payments
to financial intermediaries in connection with the promotion and sale of shares of the Funds. These additional cash payments may include
cash payments and other payments for certain marketing and support services. Invesco Affiliates make these payments from their own resources,
from Invesco Distributors’ retention of initial sales charges and from payments to Invesco Distributors made by the Funds under
their 12b-1 plans. In the context of this prospectus, “financial intermediaries” include any broker, dealer, bank (including
bank trust departments), registered investment adviser, financial planner, retirement plan administrator, insurance company and any other
financial intermediary having a selling, administration or similar agreement with Invesco Affiliates.
The
benefits Invesco Affiliates receive when they make these payments include,
among other things, placing the Funds on the financial intermediary’s fund sales system, and access (in some cases on a preferential
basis over other competitors) to individual members of the financial intermediary’s sales force or to the financial intermediary’s
management. These payments are sometimes referred to as “shelf space” payments because the payments compensate the financial
intermediary for including the Funds in its fund sales system (on its “sales shelf”). Invesco Affiliates compensate financial
intermediaries differently depending typically on the level and/or type of considerations provided by the financial intermediary. The
payments Invesco Affiliates make may be calculated based on sales of shares of the Funds (Sales-Based Payments), in which case the total
amount of such payments shall not exceed 0.25% (0.10% for Class R5 shares) of the public offering price of all shares sold by the financial
intermediary during the particular period. Payments may also be calculated based on the average daily net assets of the applicable Funds
attributable to that particular financial intermediary (Asset-Based Payments), in which case the total amount of such cash payments shall
not exceed 0.25% per annum of those assets during a defined period. Sales-Based Payments primarily create incentives to make new sales
of shares of the Funds and Asset-Based Payments primarily create incentives to retain previously sold shares of the Funds in investor
accounts. Invesco Affiliates
A-26 The
Invesco Funds
may pay a financial
intermediary either or both Sales-Based Payments and Asset-Based Payments.
Invesco
Affiliates are motivated to make these payments as they promote
the sale of Fund shares and the retention of those investments by clients of the financial intermediaries. To the extent financial intermediaries
sell more shares of the Funds or retain shares of the Funds in their clients’ accounts, Invesco Affiliates benefit from the incremental
management and other fees paid to Invesco Affiliates by the Funds with respect to those assets.
The
Funds’ transfer agent may make payments to certain financial intermediaries
for certain administrative services, including record keeping and sub-accounting of shareholder accounts pursuant to a sub-transfer agency,
omnibus account service or sub-accounting agreement. All fees payable by Invesco Affiliates under this category of services are charged
back to the Funds, subject to certain limitations approved by the Board.
You
can find further details in the Fund’s SAI about these payments and the
services provided by financial intermediaries. In certain cases these payments could be significant to the financial intermediaries. Your
financial adviser may charge you additional fees or commissions other than those disclosed in this prospectus. You can ask your financial
adviser about any payments it receives from Invesco Affiliates or the Funds, as well as about fees and/or commissions it charges.
Important
Notice Regarding Delivery of Security Holder Documents
To
reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address
(Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not
want the mailing of these documents to be combined with those for other members of your household, please contact the Funds’ transfer
agent at 800-959-4246 or contact your financial institution. The Funds’ transfer agent will begin sending you individual copies
for each account within thirty days after receiving your request.
A-27 The
Invesco Funds
Obtaining Additional Information
More information
may be obtained free of charge upon request. The SAI, a current version of which is on file with the SEC, contains more details about
the Fund and is incorporated by reference into this prospectus (is legally a part of this prospectus). Annual and semi-annual reports
to shareholders contain additional information about the Fund’s investments. The Fund’s annual report also discusses the market
conditions and investment strategies that significantly affected the Fund’s performance during its last fiscal year. The Fund also
files its complete schedule of portfolio holdings with the SEC for the 1st and 3rd quarters of each fiscal year as an exhibit to its reports
on Form N-PORT.
If
you have questions about an Invesco Fund or your account, or you wish to obtain a free copy of the Fund’s current SAI, annual or
semi-annual reports or Form N-PORT, please contact us.
|
By
Mail: |
Invesco
Investment Services, Inc.
P.O.
Box 219078
Kansas
City, MO 64121-9078 |
|
By
Telephone: |
(800)
959-4246 |
|
On
the Internet: |
You
can send us a request by e-mail or
download
prospectuses, SAIs, annual or
semi-annual
reports via our website:
www.invesco.com/us
|
Reports
and other information about the Fund are available on the EDGAR Database on the SEC's Internet site at http://www.sec.gov, and copies
of this information may be obtained, after paying a duplicating fee, by electronic request at the following e-mail address: publicinfo@sec.gov.
|
Invesco
Growth and Income Fund
SEC 1940 Act file
number: 811-09913 |
|
invesco.com/us
|
VK-GRI-PRO-1
|
Prospectus
December
16,
2022
Class:
A (SCAUX ), C (SCCUX ),
Investor (SCNUX ), R (SCRUX ),
Y (SCAYX ), R5 (SCIUX ),
R6 (SLESX )
Invesco
Income Advantage U.S. Fund
Investor
Class shares offered by this prospectus are offered only to grandfathered investors.
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.
Table of Contents
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A-10
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A-18
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A-26
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A-27
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Back
Cover |
Invesco
Income Advantage U.S. Fund
The
Fund’s investment objective is income and long-term growth of capital.
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
|
Investor
|
R5
|
R6
|
|
Maximum
Sales Charge (Load)
Imposed
on Purchases (as a
percentage
of offering price) |
|
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|
Maximum
Deferred Sales Charge
(Load)
(as a percentage of original
purchase
price or redemption
proceeds,
whichever is less) |
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Class:
|
A
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C
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R
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Y
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Investor
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R5
|
R6
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Management
Fees |
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Distribution
and/or Service (12b-1)
Fees
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Other
Expenses |
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Acquired
Fund Fees and Expenses |
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Total
Annual Fund Operating
Expenses
|
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Fee
Waiver and/or Expense
Reimbursement2
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Total
Annual Fund Operating
Expenses
After Fee Waiver and/or
Expense
Reimbursement |
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1
2
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
equal to the Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement in the first year and the Total Annual
Fund Operating Expenses thereafter.
Although
your actual costs may be higher or lower, based on these assumptions,
your costs would be:
|
|
1
Year |
3
Years |
5
Years |
10
Years |
|
Class
A |
$
|
$
|
$
|
$
|
|
| ||||
|
Class
C |
$
|
$
|
$
|
$
|
|
| ||||
|
Class
R |
$
|
$
|
$
|
$
|
|
| ||||
|
Class
Y |
$
|
$
|
$
|
$
|
|
| ||||
|
Investor
Class |
$
|
$
|
$
|
$
|
|
| ||||
|
Class
R5 |
$
|
$
|
$
|
$
|
|
| ||||
|
Class
R6 |
$
|
$
|
$
|
$
|
|
| ||||
|
|
1
Year |
3
Years |
5
Years |
10
Years |
|
Class
A |
$
|
$
|
$
|
$
|
|
| ||||
|
Class
C |
$
|
$
|
$
|
$
|
|
| ||||
|
Class
R |
$
|
$
|
$
|
$
|
|
| ||||
|
Class
Y |
$
|
$
|
$
|
$
|
|
| ||||
|
Investor
Class |
$
|
$
|
$
|
$
|
|
| ||||
|
Class
R5 |
$
|
$
|
$
|
$
|
|
| ||||
|
Class
R6 |
$
|
$
|
$
|
$
|
|
| ||||
The
Fund seeks to achieve its investment objective by investing in a diversified portfolio of equity securities and equity-linked notes designed
to generate high income while providing some downside protection in the event of broad equity market downturns and also providing equity
market upside participation. 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.
Equity-linked notes (ELNs) are counted toward the foregoing 80% policy to the extent they have economic characteristics similar to the
securities included within that policy. The Fund uses various criteria to determine whether an issuer is a U.S. issuer, including whether
(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 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 such as Bloomberg.
The
Fund invests primarily in U.S. equity securities, including common and
preferred stock, and ELNs. The Fund may also invest in real estate investment trusts (REITs), which are trusts that sell equity and/or
debt
1 Invesco
Income Advantage U.S. Fund
securities
to investors and use the proceeds to invest in real estate or interests therein. ELNs are hybrid derivative-type instruments that are
specially designed to combine the characteristics of investing in one or more underlying equity securities or an index of equity securities
and a related equity derivative, such as a put or call option, in a single note form (typically senior, unsecured debt) issued by financial
institutions. The Fund will invest in ELNs that reference either a broad-based equity security index or an exchange-traded fund that passively
tracks such an index. The Fund’s portfolio of ELNs will be constituted by positions in short-term ELNs issued by a diversified group
of U.S. and international financial institutions and cash and cash equivalents. The Fund’s investment in ELNs can represent up to
50% of the Fund’s net assets, but is expected to be in the range of 15% to 50%. The Fund’s investment in ELNs will be adjusted
periodically to achieve the Fund’s desired yield. The Fund’s investment in ELNs may result in significant exposure to the
financial services sector.
The
Fund can invest in derivative instruments including futures contracts.
The Fund can use futures contracts, including equity index futures, to gain exposure to the broad market in connection with managing cash
balances. The Fund can hold long and short positions in equity index futures to hedge against adverse movements in the equity markets.
A long position involves the Fund buying a derivative with the anticipation of a price increase of the underlying asset, and a short position
involves the Fund writing (selling) a derivative with the anticipation of a price decrease of the underlying asset.
The
portfolio managers aim to construct a diversified portfolio that generates
high income while providing downside protection against broad equity market drawdowns and providing equity market upside participation.
The equity portion of the Fund's portfolio will be constructed using quantitative models that generate broad-based large-cap equity market
indices developed by Invesco's affiliate, Invesco Indexing LLC, or third-party index providers (the Equity portfolio). The indices will
be constructed based on factors to which the portfolio managers seek to gain market exposure, including but not limited to, momentum,
value, quality and low volatility. The factors and their relative weighting will change over time based on the portfolio managers' views
on the relative strength of each factor and market conditions. The equity portion of the portfolio will therefore change over time.
The
portfolio managers also seek to construct a portion of the Fund’s portfolio
in high-income, short-term ELNs with a focus on downside protection (the ELN portfolio). The portfolio managers seek to enhance portfolio
diversification by staggering the maturity dates of the ELNs to create more consistent returns over time. The portion of the ELN portfolio
maintained in cash and cash equivalents is aimed at providing additional downside protection by limiting the ELN portfolio’s exposure
to broad equity market risk. The portion of the Fund’s assets allocated between the Equity portfolio and ELN portfolio will be actively
adjusted on a periodic basis to balance yield targets, equity participation with less volatility, and downside protection.
As
part of the Fund's investment process to implement its investment strategy
in pursuit of its investment objective, the Fund's portfolio managers may also consider both qualitative and quantitative environmental,
social and governance (“ESG”) factors they believe to be material to understanding an issuer's fundamentals, assess whether
any ESG factors pose a material financial risk or opportunity to the issuer and determine whether such risks are appropriately reflected
in the issuer’s valuation. This analysis may involve the use of third-party research as well as proprietary research. Consideration
of ESG factors is just one component of the portfolio managers' assessment of issuers eligible for investment and the Fund's portfolio
managers may still invest in securities of issuers that may be viewed as having a high ESG risk profile. The ESG factors considered by
the Fund's portfolio managers may change over time,
one or more factors may not be relevant with respect to all issuers
eligible for investment and ESG considerations may not be applied to all issuers or investments in the Fund.
The
Fund may hold up to 25% of its assets in cash or cash equivalents, including
treasury bills and money market funds, outside of the ELN portfolio in an effort to maintain high liquidity and a downside buffer.
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, natural or environmental disasters, widespread disease or other public health issues, war, military conflict, acts of terrorism
or adverse investor sentiment generally. 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.
Investing
in Stocks Risk. The value of the Fund’s portfolio may be
affected by changes in the stock markets. Stock markets may experience significant short-term volatility and may fall 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.
Equity
Linked Notes Risk. ELNs may not perform as anticipated and could
cause the Fund to realize significant losses including its entire principal investment. Other risks include those of the underlying securities,
as well as counterparty risk, liquidity risk and imperfect correlation between ELNs and the underlying securities.
Preferred
Securities Risk. Preferred securities are subject to issuer-specific
and market risks applicable generally to equity securities. Preferred securities also may be subordinated to bonds or other debt instruments,
subjecting them to a greater risk of non-payment, may be less liquid than many other securities, such as common stocks, and generally
offer no voting rights with respect to the issuer.
REIT
Risk/Real Estate Risk. Investments in real estate related instruments
may be adversely affected by economic, legal, cultural, environmental or technological factors that affect property values, rents or occupancies.
Shares of real estate related companies, which tend to be small- and mid-cap companies, may be more volatile and less liquid than larger
companies. If a real estate related company defaults on certain types of debt obligations held by the Fund, the Fund may acquire real
estate
2 Invesco
Income Advantage U.S. Fund
directly,
which involves additional risks such as environmental liabilities; difficulty in valuing and selling the real estate; and economic or
regulatory changes.
Financial
Services Sector Risk. The Fund may be susceptible to adverse economic
or regulatory occurrences affecting the financial services sector. Financial services companies are subject to extensive government regulation
and are disproportionately affected by unstable interest rates, volatility in the financial markets, changes in domestic and foreign monetary
policy, and changes in industry regulations, each of which could adversely affect the profitability of such companies. Financial services
companies may also have concentrated portfolios, which makes them especially vulnerable to unstable economic conditions.
Short
Position Risk. Because the Fund’s potential loss on a short
position arises from increases in the value of the asset sold short, the Fund will incur a loss on a short position, which is theoretically
unlimited, if the price of the asset sold short increases from the short sale price. The counterparty to a short position or other market
factors may prevent the Fund from closing out a short position at a desirable time or price and may reduce or eliminate any gain or result
in a loss. In a rising market, the Fund’s short positions will cause the Fund to underperform the overall market and its peers that
do not engage in shorting. If the Fund holds both long and short positions, and both positions decline simultaneously, the short positions
will not provide any buffer (hedge) from declines in value of the Fund’s long positions. Certain types of short positions involve
leverage, which may exaggerate any losses, potentially more than the actual cost of the investment, and will increase the volatility of
the Fund’s returns.
Quantitative
Models Risk. Quantitative models are based upon many factors that
measure individual securities relative to each other. Quantitative models may be highly reliant on the gathering, cleaning, culling and
analysis of large amounts of data from third parties and other external sources. Any errors or imperfections in the factors, or the data
on which measurements of those factors are based, could adversely affect the use of the quantitative models. The factors used in models
may not identify securities that perform well in the future, and the securities selected may perform differently from the market as a
whole or from their expected performance.
Cash/Cash
Equivalents Risk. In rising markets, holding cash or cash equivalents
will negatively affect the Fund’s performance relative to its benchmark.
Money
Market Fund Risk. Although
money market funds generally seek to preserve the value of an investment at $1.00 per share, the Fund may lose money by investing in money
market funds. A money market
fund's sponsor has no legal obligation to provide financial support to the money market fund. The credit quality of a
money market fund's holdings can change rapidly in certain markets, and the default of a single holding could have an adverse impact on
the money market fund's share price. A money market fund's share price can also be negatively affected during periods of high redemption
pressures, illiquid markets and/or significant market volatility.
Environmental,
Social and Governance (ESG) Considerations Risk. The ESG considerations
that may be assessed as part of the investment process to implement the Fund’s investment strategy in pursuit of its investment
objective may vary across types of eligible investments and issuers, and not every ESG factor may be identified or evaluated for every
investment, and not every investment or issuer may be evaluated for ESG considerations. The Fund’s portfolio will not be solely
based on ESG considerations, and therefore the issuers in which the Fund invests may not be considered ESG-focused issuers. The incorporation
of ESG factors may affect the Fund’s exposure to certain issuers or industries and may not work as intended. The Fund may underperform
other funds that do not assess an issuer’s ESG factors or that use a different methodology to identify and/or incorporate ESG factors.
Information used by the Fund to evaluate such factors may not be readily available, complete or accurate, and may vary across providers
and issuers as ESG is not a uniformly defined
characteristic.
There is no guarantee that the evaluation of ESG considerations will be additive to the Fund’s performance.
Derivatives
Risk. The value of a derivative instrument depends largely on (and
is derived from) the value of an underlying security, currency, commodity, interest rate, index or other asset (each referred to as an
underlying asset). In addition to risks relating to the underlying assets, the use of derivatives may include other, possibly greater,
risks, including counterparty, leverage and liquidity risks. Counterparty risk is the risk that the counterparty to the derivative contract
will default on its obligation to pay the Fund the amount owed or otherwise perform under the derivative contract. Derivatives create
leverage risk because they do not require payment up front equal to the economic exposure created by holding a position in the derivative.
As a result, an adverse change in the value of the underlying asset could result in the Fund sustaining a loss that is substantially greater
than the amount invested in the derivative or the anticipated value of the underlying asset, which may make the Fund’s returns more
volatile and increase the risk of loss. Derivative instruments may also be less liquid than more traditional investments and the Fund
may be unable to sell or close out its derivative positions at a desirable time or price. This risk may be more acute under adverse market
conditions, during which the Fund may be most in need of liquidating its derivative positions. Derivatives may also be harder to value,
less tax efficient and subject to changing government regulation that could impact the Fund’s ability to use certain derivatives
or their cost. Derivatives strategies may not always be successful. For example, derivatives used for hedging or to gain or limit exposure
to a particular market segment may not provide the expected benefits, particularly during adverse market conditions.
Rule
144A Securities and Other Exempt Securities Risk. The market for
Rule 144A and other securities exempt from certain registration requirements typically is less active than the market for publicly-traded
securities. Rule 144A and other exempt securities, which are also known as privately issued securities, carry the risk that their liquidity
may become impaired and the Fund may be unable to dispose of the securities at a desirable time or price.
Restricted
Securities Risk. Limitations on the resale of restricted securities
may have an adverse effect on their marketability, and may prevent the Fund from disposing of them promptly at reasonable prices. There
can be no assurance that a trading market will exist at any time for any particular restricted security. Transaction costs may be higher
for restricted securities and such securities may be difficult to value and may have significant volatility.
Management
Risk. The Fund is actively managed and depends heavily on the Adviser’s
judgment about markets, interest rates or the attractiveness, relative values, liquidity, or potential appreciation of particular investments
made for the Fund’s portfolio. The Fund could experience losses if these judgments prove to be incorrect. Additionally, legislative,
regulatory, or tax developments may adversely affect management of the Fund and, therefore, the ability of the Fund to achieve its investment
objective.
The
bar chart and performance table provide an indication of the risks of investing in the Fund. The bar chart shows changes in the performance
of the Fund from year to year as of December 31. For periods prior to July 15, 2021, performance shown is that of the Fund using its previous
investment strategy. Therefore, the past performance shown for periods prior to July 15, 2021 may have differed had the Fund’s current
investment strategy been in effect. The performance table compares the Fund's performance to that of a broad-based/style-specific
securities market benchmark and a peer group benchmark comprised of funds with investment objectives and strategies similar to those of
the Fund (in that order).
The
Fund's past performance (before and after taxes) is not necessarily an indication of its future performance.
3 Invesco
Income Advantage U.S. Fund
Fund
performance reflects any applicable fee waivers and expense reimbursements.
Performance returns would be lower without applicable fee waivers and expense reimbursements.
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, 2021)
|
|
Inception
Date
|
1
Year
|
5
Years
|
10
Years
|
|
Class
A |
|
|
|
|
|
Return
Before Taxes |
|
|
|
|
|
Return
After Taxes on Distributions |
|
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|
|
|
Return
After Taxes on Distributions and Sale of Fund
Shares
|
|
|
|
|
|
| ||||
|
Class
C |
|
|
|
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|
| ||||
|
Class
R |
|
|
|
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|
| ||||
|
Class
Y |
|
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|
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| ||||
|
Investor
Class |
|
|
|
|
|
| ||||
|
Class
R5 |
|
|
|
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|
| ||||
|
Class
R61 |
|
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|
| ||||
|
S&P
500®
Index expenses
or taxes) |
|
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|
| ||||
|
Lipper
Equity Income Funds Index |
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| ||||
1
Management
of the Fund
Investment
Adviser: Invesco Advisers, Inc. (Invesco or the Adviser)
|
Portfolio
Managers |
Title
|
Length
of Service on the Fund |
|
Scott
Wolle, CFA |
Portfolio
Manager (lead) |
2021
|
|
| ||
|
Mark
Ahnrud, CFA |
Portfolio
Manager |
2021
|
|
| ||
|
John
Burrello, CFA |
Portfolio
Manager |
2021
|
|
| ||
|
Chris
Devine, CFA |
Portfolio
Manager |
2021
|
|
| ||
|
Scott
Hixon, CFA |
Portfolio
Manager |
2021
|
|
| ||
|
Christian
Ulrich, CFA |
Portfolio
Manager |
2021
|
|
| ||
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.
Investor
Class shares of the Fund are offered only to grandfathered investors.
The minimum investments for Class A, C, R, Y and Investor Class shares for fund accounts are as follows:
|
Type
of Account |
Initial
Investment
Per
Fund |
Additional
Investments
Per
Fund |
|
Asset
or fee-based accounts managed by your financial adviser |
None
|
None
|
|
| ||
|
Employer
Sponsored Retirement and Benefit Plans and
Employer
Sponsored IRAs |
None
|
None
|
|
| ||
|
IRAs
and Coverdell ESAs if the new investor is purchasing
shares
through a systematic purchase plan |
$25
|
$25
|
|
| ||
|
All
other types of accounts if the investor is purchasing shares
through
a systematic purchase plan |
50
|
50
|
|
| ||
|
IRAs
and Coverdell ESAs |
250
|
25
|
|
| ||
|
All
other accounts |
1,000
|
50
|
|
| ||
With
respect to Class R5 and Class R6 shares, there is no minimum initial
investment for Employer Sponsored Retirement and Benefit Plans investing through a retirement platform that administers at least $2.5
billion in retirement plan assets. All other Employer Sponsored Retirement and Benefit Plans must meet a minimum initial investment of
at least $1 million in each Fund in which it invests.
For
all other institutional investors purchasing Class R5 or Class R6 shares,
the minimum initial investment in each share class is $1 million, unless such investment is made by (i) an investment company, as defined
under the Investment Company Act of 1940, as amended (1940 Act), that is part of a family of investment companies which own in the aggregate
at least $100 million in securities, or (ii) an account established with a 529 college savings plan managed by Invesco, in which case
there is no minimum initial investment.
There
are no minimum investment amounts for Class R6 shares held through
retail omnibus accounts maintained by an intermediary, such as a broker, that (i) generally charges an asset-based fee or commission in
addition to those described in this prospectus, and (ii) maintains Class R6 shares and makes them available to retail investors.
Tax
Information
The
Fund’s distributions generally are taxable to you as ordinary income, capital gains, or some combination of both, unless you are
investing through a tax-advantaged arrangement, such as a 401(k) plan, 529 college savings plan or individual retirement account. Any
distributions from a 401(k) plan or individual retirement account may be taxed as ordinary income when withdrawn from such plan or account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund, the Fund’s distributor
or its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict
of interest by influencing the broker-dealer or other intermediary and your salesperson or financial adviser to recommend the Fund over
another investment. Ask your salesperson or financial adviser or visit your financial intermediary’s website for more information.
4 Invesco
Income Advantage U.S. Fund
Investment Objective(s), Strategies, Risks and Portfolio Holdings
Objective(s)
and Strategies
The
Fund’s investment objective is income and long-term growth of capital. The Fund’s investment objective may be changed by the
Board of Trustees (the Board) without shareholder approval.
The
Fund seeks to achieve its investment objective by investing in a diversified
portfolio of equity securities and equity-linked notes designed to generate high income while providing some downside protection in the
event of broad equity market downturns and also providing equity market upside participation. 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. Equity-linked notes (ELNs) are counted toward the foregoing
80% policy to the extent they have economic characteristics similar to the securities included within that policy. The Fund uses various
criteria to determine whether an issuer is a U.S. issuer, including whether (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 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 such as Bloomberg. The issuer's “country of risk” is determined based on a number of criteria, including its country
of domicile, the primary stock exchange on which it trades, the location from which the majority of its revenue comes, and its reporting
currency.
The
Fund invests primarily in U.S. equity securities, including common and
preferred stock, and ELNs. The Fund may also invest in REITs, which are trusts that sell equity and/or debt securities to investors and
use the proceeds to invest in real estate or interests therein. ELNs are hybrid derivative-type instruments that are specially designed
to combine the characteristics of investing in one or more underlying equity securities or an index of equity securities and a related
equity derivative, such as a put or call option, in a single note form (typically senior, unsecured debt) issued by financial institutions.
The Fund will invest in ELNs that reference either a broad-based equity security index or an exchange-traded fund that passively tracks
such an index. The Fund’s portfolio of ELNs will be constituted by positions in short-term ELNs issued by a diversified group of
U.S. and international financial institutions and cash and cash equivalents. The Fund’s investment in ELNs can represent up to 50%
of the Fund’s net assets, but is expected to be in the range of 15% to 50%. The Fund’s investment in ELNs will be adjusted
periodically to achieve the Fund’s desired yield. The Fund’s investment in ELNs may result in significant exposure to the
financial services sector.
The
Fund can invest in derivative instruments including futures contracts.
A
futures contract is a standardized agreement between two parties to buy
or sell a specified quantity of an underlying asset at a specified price at a specified future time, with both the purchaser and the seller
equally obligated to complete the transaction at that future time. The value of the futures contract tends to increase and decrease in
tandem with the value of the underlying asset. Depending on the terms of the particular contract, futures contracts are settled by purchasing
an offsetting contract, physically delivering the underlying asset on the settlement date or paying a cash settlement amount on the settlement
date. The futures contracts the Fund will enter into are traded (either domestically or internationally) on futures exchanges or certain
exempt markets including exempt boards of trade and electronic trading facilities. The Fund can use futures contracts, including equity
index futures, to gain exposure to the broad market in connection with managing cash balances. The Fund can hold long and short positions
in equity index futures to hedge against adverse movements in the equity
markets.
A long position involves the Fund buying a derivative with the anticipation of a price increase of the underlying asset, and a short position
involves the Fund writing (selling) a derivative with the anticipation of a price decrease of the underlying asset.
The
portfolio managers aim to construct a diversified portfolio that generates
high income while providing downside protection against broad equity market drawdowns and providing equity market upside participation.
The equity portion of the Fund's portfolio will be constructed using quantitative models that generate broad-based large-cap equity market
indices developed by Invesco's affiliate, Invesco Indexing LLC, or third-party index providers (the “Equity portfolio”). The
indices will be constructed based on factors to which the portfolio managers seek to gain market exposure, including but not limited to,
momentum, value, quality and low volatility. The factors and their relative weighting will change over time based on the portfolio managers'
views on the relative strength of each factor and market conditions. The equity portion of the portfolio will therefore change over time.
The
portfolio managers also seek to construct a portion of the Fund’s portfolio
in high-income, short-term ELNs with a focus on downside protection (the ELN portfolio). The portfolio managers seek to enhance portfolio
diversification by staggering the maturity dates of the ELNs to create more consistent returns over time. The portion of the ELN portfolio
maintained in cash and cash equivalents is aimed at providing additional downside protection by limiting the ELN portfolio’s exposure
to broad equity market risk. The portion of the Fund’s assets allocated between the Equity portfolio and ELN portfolio will be actively
adjusted on a periodic basis to balance yield targets, equity participation with less volatility, and downside protection.
As
part of the Fund's investment process to implement its investment strategy
in pursuit of its investment objective, the Fund's portfolio managers may also consider both qualitative and quantitative environmental,
social and governance (“ESG”) factors they believe to be material to understanding an issuer's fundamentals, assess whether
any ESG factors pose a material financial risk or opportunity to the issuer and determine whether such risks are appropriately reflected
in the issuer’s valuation. This analysis may involve the use of third-party research as well as proprietary research. Consideration
of ESG factors is just one component of the portfolio managers' assessment of issuers eligible for investment and the Fund's portfolio
managers may still invest in securities of issuers that may be viewed as having a high ESG risk profile. The ESG factors considered by
the Fund's portfolio managers may change over time,
one or more factors may not be relevant with respect to all issuers
eligible for investment and ESG considerations may not be applied to each issuer or Fund investment.
The
Fund may hold up to 25% of its assets in cash or cash equivalents, including
treasury bills and money market funds, outside of the ELN portfolio in an effort to maintain high liquidity and a downside buffer.
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
5 Invesco
Income Advantage U.S. Fund
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 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.
◾
COVID-19.
The “COVID-19” strain of coronavirus has resulted in instances of market closures and dislocations, extreme volatility, liquidity
constraints and increased trading costs. Efforts to contain its spread have resulted in travel restrictions, disruptions of healthcare
systems, business operations (including business closures) and supply chains, layoffs, lower consumer demand and employee availability,
and defaults and credit downgrades, among other significant economic impacts that have disrupted global economic activity across many
industries. Such economic impacts may exacerbate other pre-existing political, social and economic risks locally or globally and cause
general concern and uncertainty. The full economic impact and ongoing effects of COVID-19 (or other future epidemics or pandemics) at
the macro-level and on individual businesses are unpredictable and may result in significant and prolonged effects on the Fund’s
performance.
Investing
in Stocks Risk. Common stock represents an ownership interest in
a company. It ranks below preferred stock and debt securities in claims for dividends and in claims for assets of the issuer in a liquidation
or bankruptcy. Common stocks may be exchange-traded or over-the-counter securities. Over-the-counter securities may be less liquid than
exchange-traded securities.
The
value of the Fund’s portfolio may be affected by changes in the stock
markets. Stocks and other equity securities fluctuate in price in response to changes to equity markets in general. Stock markets may
experience significant short-term volatility and may fall or rise sharply at times. Adverse events in any part of the equity or fixed-income
markets may
have unexpected
negative effects on other market segments. Different stock markets may behave differently from each other and U.S. stock markets may move
in the opposite direction from one or more foreign stock markets.
The
prices of individual stocks generally do not all move in the same direction
at the same time. However, individual stock prices tend to go up and down more dramatically than those of certain other types of investments,
such as bonds. A variety of factors can negatively affect the price of a particular company’s stock. These factors may include,
but are not limited to: poor earnings reports, a loss of customers, litigation against the company, general unfavorable performance of
the company’s sector or industry, or changes in government regulations affecting the company or its industry. To the extent that
securities of a particular type are emphasized (for example foreign stocks, stocks of small- or mid-cap companies, growth or value stocks,
or stocks of companies in a particular industry), their share values may fluctuate more in response to events affecting the market for
those types of securities.
Equity
Linked Notes Risk. Investments in ELNs are susceptible to the risks
of their underlying securities, which could include management risk, market risk and, as applicable, foreign securities and currency risks.
ELNs are also subject to certain debt securities risks, such as interest rate and credit risks. Should the prices of the underlying securities
move in an unexpected manner, the Fund may not achieve the anticipated benefits of an investment in an ELN, and may realize losses, which
could be significant and could include the Fund's entire principal investment. An ELN investment is also subject to counterparty risk,
which is the risk that the issuer of the ELN will default or become bankrupt and the Fund may not be repaid the principal amount of, or
income from, its investment. ELNs may also be less liquid than more traditional investments and the Fund may be unable to sell ELNs at
a desirable time or price. In addition, the price of ELNs may not correlate with the underlying securities or a fixed income investment.
Preferred
Securities Risk. Preferred securities are subject to issuer-specific
and market risks applicable generally to equity securities. Preferred stock has a set dividend rate and ranks ahead of common stocks and
behind debt securities in claims for dividends and for assets of the issuer in a liquidation or bankruptcy. Preferred securities also
may be subordinated to bonds or other debt instruments in an issuer’s capital structure, subjecting them to a greater risk of non-payment
than these more senior securities. For this reason, the value of preferred securities will usually react more strongly than bonds and
other debt securities to actual or perceived changes in the company’s financial condition or prospects. Preferred securities may
be less liquid than many other securities, such as common stocks, and generally offer no voting rights with respect to the issuer.
REIT
Risk/Real Estate Risk. Investments in real estate related instruments
may be adversely affected by economic, legal, cultural, environmental or technological factors that affect property values, rents or occupancies.
Real estate companies, including REITs or similar structures, tend to be small- and mid-cap companies and their shares may be more volatile
and less liquid than larger companies. The value of investments in real estate related companies may be affected by the quality of management,
the ability to repay loans, the utilization of leverage and financial covenants related thereto, whether the company carries adequate
insurance and environmental factors. If a real estate related company defaults on certain types of debt obligations held by the Fund,
the Fund may acquire real estate directly, which involves additional risks such as environmental liabilities; difficulty in valuing and
selling the real estate; and economic or regulatory changes.
Financial
Services Sector Risk. The Fund may be susceptible to adverse economic
or regulatory occurrences affecting the financial services sector. Financial services companies are subject to extensive government regulation
and, as a result, their profitability may be affected by new regulations or regulatory interpretations. Unstable interest rates, volatility
in the financial markets, changes in domestic and foreign monetary policy, and changes in industry regulations, can have a disproportionate
effect on
6 Invesco
Income Advantage U.S. Fund
companies
in the financial services sector which could adversely affect the profitability of such companies. Financial services companies whose
securities the Fund may purchase may themselves have concentrated portfolios, which makes them especially vulnerable to unstable economic
conditions.
Short
Position Risk. The Fund will incur a loss on a short position if
the price of the asset sold short increases from the short sale price. Because the Fund’s potential loss on a short position arises
from increases in the value of the asset sold short, the extent of such loss, like the price of the asset sold short, is theoretically
unlimited. Short sales are speculative transactions and involve greater reliance on the Adviser’s ability to accurately anticipate
the future value of an asset or markets in general. Any gain on a short position is decreased, and any loss is increased, by the amount
of any payment, dividend, interest or other transaction costs that the Fund may be required to pay with respect to the asset sold short.
The counterparty to a short position or market factors, such as a sharp increase in prices, may prevent the Fund from closing out a short
position at a desirable time or price and may reduce or eliminate any gain or result in a loss. In a rising market, the Fund’s short
positions will cause the Fund to underperform the overall market and its peers that do not engage in shorting. If the Fund holds both
long and short positions, both positions may decline simultaneously, in which case the short positions will not provide any buffer (hedge)
from declines in value of the Fund’s long positions. Certain types of short positions involve leverage, which may exaggerate any
losses, potentially more than the actual cost of the investment, and will increase the volatility of the Fund’s returns.
Quantitative
Models Risk. Quantitative models are based upon many factors that
measure individual securities relative to each other. Quantitative models may be highly reliant on the gathering, cleaning, culling and
analysis of large amounts of data from third parties and other external sources. Any errors or imperfections in the factors, or the data
on which measurements of those factors are based, could adversely affect the use of the quantitative models. The factors used in models
may not identify securities that perform well in the future, and the securities selected may perform differently from the market as a
whole or from their expected performance.
Cash/Cash
Equivalents Risk. To the extent the Fund holds cash or cash equivalents
rather than securities or other instruments in which it primarily invests, the Fund risks losing opportunities to participate in market
appreciation and may experience potentially lower returns than the Fund’s benchmark or other funds that remain fully invested.
Money
Market Fund Risk. Although money market funds generally seek to
preserve the value of an investment at $1.00 per share, the Fund may lose money by investing in money market funds. A money market fund's
sponsor has no legal obligation to provide financial support to the money market fund. The credit quality of a money market fund's holdings
can change rapidly in certain markets, and the default of a single holding could have an adverse impact on the money market fund's share
price. A money market fund's share price can also be negatively affected during periods of high redemption pressures, illiquid markets
and/or significant market volatility. The U.S. Securities and Exchange Commission (SEC) and other government agencies continue to review
the regulation of money market funds. As of the date of this prospectus, the SEC has proposed changes to the rules that govern money market
funds. These changes and developments, if implemented, may affect the investment strategies, performance, yield, operating expenses and
continued viability of a fund.
Environmental,
Social and Governance (ESG) Considerations Risk. The ESG considerations
that may be assessed as part of the investment process to implement the Fund’s investment strategy in pursuit of its investment
objective may vary across types of investments and issuers eligible for investment, and not every ESG factor may be identified or evaluated
for every investment, and not every investment or issuer may be evaluated for ESG considerations. The Fund’s portfolio will not
be solely based on ESG considerations, and therefore the issuers in which the Fund invests may not be considered ESG-focused issuers.
The incorporation of ESG factors may
affect
the Fund’s exposure to certain issuers or industries and may not work as intended. The Fund may underperform other funds that
do not assess an issuer’s ESG factors as part of the investment process or that use a different methodology to identify and/or incorporate
ESG factors. As investors can differ in their views regarding ESG factors, the Fund may invest in issuers that do not reflect the views
with respect to ESG of any particular investor. Information used by the Fund to evaluate such factors may not be readily available, complete
or accurate, and may vary across providers and issuers as ESG is not a uniformly defined characteristic, which could negatively impact
the Fund’s ability to apply its methodology, which could negatively impact the Fund’s performance. There is no guarantee that
the evaluation of ESG considerations will be additive to the Fund’s performance.
Derivatives
Risk. A derivative is an instrument whose value depends largely
on (and is derived from) the value of an underlying security, currency, commodity, interest rate, index or other asset (each referred
to as an underlying asset). In addition to risks relating to the underlying assets, the use of derivatives may include other, possibly
greater, risks, which are described below.
◾
Counterparty
Risk. Certain derivatives do not trade on an established exchange
(referred to as over-the-counter (OTC) derivatives) and are simply financial contracts between the Fund and a counterparty. When the Fund
is owed money on an OTC derivative, the Fund is dependent on the counterparty to pay or, in some cases, deliver the underlying asset,
unless the Fund can otherwise sell its derivative contract to a third party prior to its expiration. Many counterparties are financial
institutions such as banks and broker-dealers and their creditworthiness (and ability to pay or perform) may be negatively impacted by
factors affecting financial institutions generally. In addition, in the event that a counterparty becomes bankrupt or insolvent, the Fund’s
ability to recover the collateral that the Fund has on deposit with the counterparty could be delayed or impaired. For derivatives traded
on a centralized exchange, the Fund generally is dependent upon the solvency of the relevant exchange clearing house (which acts as a
guarantor for each contractual obligation under such derivatives) for payment on derivative instruments for which the Fund is owed money.
◾
Leverage
Risk. Many derivatives do not require a payment up front equal
to the economic exposure created by holding a position in the derivative, which creates a form of leverage. As a result, an adverse change
in the value of the underlying asset could result in the Fund sustaining a loss that is substantially greater than the amount invested
in the derivative or the anticipated value of the underlying asset. In addition,
some derivatives have the potential for unlimited loss, regardless
of the size of the Fund’s initial investment. Leverage may therefore make the Fund’s returns more volatile and increase
the risk of loss. In certain market conditions, losses on derivative
instruments can grow larger while the value of the Fund’s other assets fall, resulting in the Fund’s derivative positions
becoming a larger percentage of the Fund’s investments.
◾
Liquidity
Risk. There is a smaller pool of buyers and sellers for certain
derivatives, particularly OTC derivatives, than more traditional investments such as stocks. These buyers and sellers are often financial
institutions that may be unable or unwilling to buy or sell derivatives during times of financial or market stress. Derivative instruments
may therefore be less liquid than more traditional investments and the Fund may be unable to sell or exit its derivative positions at
a desirable time or price. This risk may be more acute under adverse market conditions, during which the Fund may be most in need of liquidating
its derivative positions. To the extent that the Fund is unable to exit a derivative position because of market illiquidity, the Fund
may not be able to prevent further losses of value in its derivatives holdings and the liquidity of the Fund and its ability to meet redemption
requests may be impaired to the extent that a substantial portion of the Fund’s otherwise liquid assets must be used
7 Invesco
Income Advantage U.S. Fund
as
margin. Another consequence of illiquidity is that the Fund may be required to hold a derivative instrument to maturity and take or make
delivery of the underlying asset that the Adviser would otherwise avoid.
◾
Futures
Contracts Risk. The volatility of futures contracts prices has
been historically greater than the volatility of stocks and bonds. The liquidity of the futures market depends on participants entering
into offsetting transactions rather than making or taking delivery. To the extent participants decide to make or take delivery, liquidity
in the futures market could be reduced. In addition, futures exchanges often impose a maximum permissible price movement on each futures
contract for each trading session. The Fund may be disadvantaged if it is prohibited from executing a trade outside the daily permissible
price movement.
◾
Other
Risks. Compared to other types of investments, derivatives may
be harder to value and may also be less tax efficient, as described under the “Taxes” section of the prospectus. In addition,
changes in government regulation of derivative instruments could affect the character, timing and amount of the Fund’s taxable income
or gains, and may limit or prevent the Fund from using certain types of derivative instruments as a part of its investment strategy, which
could make the investment strategy more costly to implement or require the Fund to change its investment strategy. Derivatives strategies
may not always be successful. For example, to the extent that the Fund uses derivatives for hedging or to gain or limit exposure to a
particular market or market segment, there may be imperfect correlation between the value of the derivative instrument and the value of
the instrument being hedged or the relevant market or market segment, in which case the Fund may not realize the intended benefits. There
is also the risk that during adverse market conditions, an instrument which would usually operate as a hedge provides no hedging benefits
at all. The Fund’s use of derivatives may be limited by the requirements for taxation of the Fund as a regulated investment company.
Rule
144A Securities and Other Exempt Securities Risk. The Fund may
invest in Rule 144A securities and other types of exempt securities, which are not registered for sale pursuant to an exemption from registration
under the Securities Act of 1933, as amended. These securities are also known as privately issued securities, and typically may be resold
only to qualified institutional buyers, or in a privately negotiated transaction, or to a limited number of purchasers, or in limited
quantities after they have been held for a specified period of time and other conditions are met for an exemption from registration. Although
such securities may be determined to be liquid in accordance with the requirements of Rule 22e-4 under the Investment Company Act of 1940,
as amended, if there are an insufficient number of qualified institutional buyers interested in purchasing such securities at a particular
time, the Fund may have difficulty selling such securities at a desirable time or price. As a result, the Fund’s investment in such
securities may be subject to increased liquidity risk. In addition, the issuers of Rule 144A securities may require their qualified institutional
buyers (such as the Fund) to keep certain offering information confidential, which could adversely affect the ability of the Fund to sell
such securities.
Restricted
Securities Risk. Limitations on the resale of restricted securities
may have an adverse effect on their marketability, and may prevent the Fund from disposing of them promptly at reasonable prices. There
can be no assurance that a trading market will exist at any time for any particular restricted security. Transaction costs may be higher
for restricted securities. Also, restricted securities may be difficult to value because market quotations may not be readily available,
and the securities may have significant volatility. In addition, the Fund may get only limited information about the issuer of a restricted
security and therefore may be less able to predict a loss.
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 1555 Peachtree Street, N.E., Atlanta, Georgia 30309. The Adviser, as successor in interest to multiple
investment advisers, has been an investment adviser since 1976.
In
addition, Invesco has entered into one or more Sub-Advisory Agreements
with certain affiliates to serve as sub-advisers to the Fund (the Sub-Advisers). Invesco may appoint the Sub-Advisers from time to time
to provide discretionary investment management services, investment advice, and/or order execution services to the Fund. The Sub-Advisers
and the Sub-Advisory Agreements are described in the SAI.
Exclusion
of Adviser from Commodity Pool Operator Definition
With
respect to the Fund, the Adviser has claimed an exclusion from the definition of “commodity pool operator” (CPO) under the
Commodity Exchange Act (CEA) and the rules of the Commodity Futures Trading Commission (CFTC) and, therefore, is not subject to CFTC registration
or regulation as a CPO. In addition, the Adviser is relying upon a related exclusion from the definition of “commodity trading advisor”
(CTA) under the CEA and the rules of the CFTC with respect to the Fund.
The
terms of the CPO exclusion require the Fund, among other things, to
adhere to certain limits on its investments in “commodity interests.” Commodity interests include commodity futures, commodity
options and swaps, which in turn include non-deliverable forwards. The Fund is permitted to invest in these instruments as further described
in the Fund’s SAI. However, the Fund is not intended as a vehicle for trading in the commodity futures, commodity options or swaps
markets. The CFTC has neither reviewed nor approved the Adviser’s reliance on these exclusions, or the Fund, its investment strategies
or this prospectus.
Adviser
Compensation
During
the fiscal year ended August 31, 2022, the Adviser received compensation of 0.51% 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:
◾
Scott
Wolle,
CFA (lead manager), Portfolio Manager, who has been responsible for the Fund since 2021 and has been associated with Invesco and/or its
affiliates since 1999.
8 Invesco
Income Advantage U.S. Fund
◾
Mark
Ahnrud, CFA, Portfolio Manager, who has been responsible for the Fund since 2021 and has been associated with Invesco and/or its affiliates
since 2000.
◾
John
Burrello, CFA, Portfolio Manager, who has been responsible for the Fund since 2021 and has been associated with Invesco and/or its affiliates
since 2012.
◾
Chris
Devine, CFA, Portfolio Manager, who has been responsible for the Fund since 2021 and has been associated with Invesco and/or its affiliates
since 1998.
◾
Scott
Hixon, CFA, Portfolio Manager, who has been responsible for the Fund since 2021 and has been associated with Invesco and/or its affiliates
since 1994.
◾
Christian
Ulrich, CFA, Portfolio Manager, who has been responsible for the Fund since 2021 and has been associated with Invesco and/or its affiliates
since 2000.
A
lead or co-lead manager generally has final authority over all
aspects of the Fund’s investment portfolio, including but not limited to, purchases and sales of individual securities, portfolio
construction techniques, portfolio risk assessment, and the management of daily cash flows in accordance with portfolio holdings. The
degree to which a lead or co-lead manager may perform these functions, and the nature of these functions, may change from time to time.
More
information on the portfolio managers may be found at www.invesco.com/us.
The website is not part of this prospectus.
The
Fund’s SAI provides additional information about the portfolio managers'
investments in the Fund, a description of the compensation structure and information regarding other accounts managed.
Other Information
Sales
Charges
Purchases
of Class A shares of the Fund are subject to the maximum 5.50% initial sales charge as listed under the heading “Category I Initial
Sales Charges” in the “Shareholder Account Information—Initial Sales Charges (Class A Shares Only)” section of
the prospectus. Purchases of Class C shares are subject to a contingent deferred sales charge (CDSC) if you sell Class C shares within
one year of purchase; however, the CDSC shall not apply to the purchases of Class C shares where the selling broker-dealer was not paid
a commission at the time of purchase. For more information on CDSCs, see the “Shareholder Account Information—Contingent Deferred
Sales Charges (CDSCs)” section of this prospectus.
Dividends
and Distributions
The
Fund expects, based on its investment objective and strategies, that its distributions, if any, will consist of ordinary income, capital
gains, or some combination of both.
Dividends
The
Fund generally declares and pays dividends from net investment income, if any, monthly.
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.
9 Invesco
Income Advantage U.S. Fund
Financial Highlights
The financial
highlights show the Fund’s financial history for the past five fiscal years or, if shorter, the period of operations of the Fund
or any of its share classes. The financial highlights table is intended to help you understand the Fund’s financial performance.
Certain information reflects financial results for a single Fund share.
The
total returns in the table represent the rate that an investor would have
earned (or lost) on an investment in the Fund (assuming reinvestment of all dividends and distributions).
This
information has been audited by PricewaterhouseCoopers LLP, an independent
registered public accounting firm, whose report, along with the Fund’s financial statements, is included in the Fund’s annual
report, which is available upon request.
|
|
Net
asset
value,
beginning
of
period |
Net
investment
income(a)
|
Net
gains
(losses)
on
securities
(both
realized
and
unrealized)
|
Total
from
investment
operations
|
Dividends
from
net
investment
income
|
Distributions
from
net
realized
gains
|
Total
distributions
|
Net
asset
value,
end
of
period |
Total
return
(b)
|
Net
assets,
end
of period
(000's
omitted) |
Ratio
of
expenses
to
average
net
assets
with
fee waivers
and/or
expenses
absorbed
|
Ratio
of
expenses
to
average net
assets
without
fee
waivers
and/or
expenses
absorbed
|
Ratio
of net
investment
income
to
average
net
assets |
Portfolio
turnover
(c)
|
|
Class
A | ||||||||||||||
|
Year
ended 08/31/22 |
$12.29
|
$0.59
|
$(1.64)
|
$(1.05)
|
$(0.59)
|
$(1.19)
|
$(1.78)
|
$9.46
|
(9.88)%
|
$125,096
|
1.05%
|
1.14%
|
5.52%
|
44%
|
|
Year
ended 08/31/21 |
10.24
|
0.13
|
2.07
|
2.20
|
(0.15)
|
—
|
(0.15)
|
12.29
|
21.70
|
150,436
|
1.16
|
1.17
|
1.15
|
143
|
|
Year
ended 08/31/20 |
10.43
|
0.17
|
(0.20)
|
(0.03)
|
(0.16)
|
—
|
(0.16)
|
10.24
|
(0.15)
|
136,770
|
1.18
|
1.18
|
1.63
|
122
|
|
Year
ended 08/31/19 |
12.13
|
0.17
|
(1.54)
|
(1.37)
|
(0.13)
|
(0.20)
|
(0.33)
|
10.43
|
(11.34)
|
153,641
|
1.18
|
1.18
|
1.54
|
117
|
|
Year
ended 08/31/18 |
10.86
|
0.15
|
1.31
|
1.46
|
(0.19)
|
—
|
(0.19)
|
12.13
|
13.57
|
175,074
|
1.21
|
1.21
|
1.35
|
119
|
|
| ||||||||||||||
|
Class
C | ||||||||||||||
|
Year
ended 08/31/22 |
12.07
|
0.51
|
(1.61)
|
(1.10)
|
(0.49)
|
(1.19)
|
(1.68)
|
9.29
|
(10.51)
|
2,942
|
1.80
|
1.89
|
4.77
|
44
|
|
Year
ended 08/31/21 |
10.06
|
0.04
|
2.04
|
2.08
|
(0.07)
|
—
|
(0.07)
|
12.07
|
20.74
|
3,748
|
1.91
|
1.92
|
0.40
|
143
|
|
Year
ended 08/31/20 |
10.24
|
0.09
|
(0.19)
|
(0.10)
|
(0.08)
|
—
|
(0.08)
|
10.06
|
(0.87)
|
4,001
|
1.93
|
1.93
|
0.88
|
122
|
|
Year
ended 08/31/19 |
11.92
|
0.09
|
(1.53)
|
(1.44)
|
(0.04)
|
(0.20)
|
(0.24)
|
10.24
|
(12.05)
|
4,627
|
1.93
|
1.93
|
0.79
|
117
|
|
Year
ended 08/31/18 |
10.68
|
0.07
|
1.27
|
1.34
|
(0.10)
|
—
|
(0.10)
|
11.92
|
12.64
|
24,319
|
1.96
|
1.96
|
0.60
|
119
|
|
| ||||||||||||||
|
Class
R | ||||||||||||||
|
Year
ended 08/31/22 |
12.23
|
0.57
|
(1.64)
|
(1.07)
|
(0.56)
|
(1.19)
|
(1.75)
|
9.41
|
(10.13)
|
492
|
1.30
|
1.39
|
5.27
|
44
|
|
Year
ended 08/31/21 |
10.19
|
0.10
|
2.06
|
2.16
|
(0.12)
|
—
|
(0.12)
|
12.23
|
21.39
|
691
|
1.41
|
1.42
|
0.90
|
143
|
|
Year
ended 08/31/20 |
10.38
|
0.14
|
(0.19)
|
(0.05)
|
(0.14)
|
—
|
(0.14)
|
10.19
|
(0.42)
|
565
|
1.43
|
1.43
|
1.38
|
122
|
|
Year
ended 08/31/19 |
12.07
|
0.14
|
(1.53)
|
(1.39)
|
(0.10)
|
(0.20)
|
(0.30)
|
10.38
|
(11.54)
|
526
|
1.43
|
1.43
|
1.29
|
117
|
|
Year
ended 08/31/18 |
10.81
|
0.13
|
1.29
|
1.42
|
(0.16)
|
—
|
(0.16)
|
12.07
|
13.25
|
271
|
1.46
|
1.46
|
1.10
|
119
|
|
| ||||||||||||||
|
Class
Y | ||||||||||||||
|
Year
ended 08/31/22 |
12.35
|
0.62
|
(1.64)
|
(1.02)
|
(0.63)
|
(1.19)
|
(1.82)
|
9.51
|
(9.61)
|
8,271
|
0.80
|
0.89
|
5.77
|
44
|
|
Year
ended 08/31/21 |
10.29
|
0.15
|
2.08
|
2.23
|
(0.17)
|
—
|
(0.17)
|
12.35
|
22.00
|
8,370
|
0.91
|
0.92
|
1.40
|
143
|
|
Year
ended 08/31/20 |
10.48
|
0.19
|
(0.19)
|
0.00
|
(0.19)
|
—
|
(0.19)
|
10.29
|
0.12
|
7,344
|
0.93
|
0.93
|
1.88
|
122
|
|
Year
ended 08/31/19 |
12.19
|
0.20
|
(1.55)
|
(1.35)
|
(0.16)
|
(0.20)
|
(0.36)
|
10.48
|
(11.14)
|
8,322
|
0.93
|
0.93
|
1.79
|
117
|
|
Year
ended 08/31/18 |
10.91
|
0.18
|
1.32
|
1.50
|
(0.22)
|
—
|
(0.22)
|
12.19
|
13.89
|
10,450
|
0.96
|
0.96
|
1.60
|
119
|
|
| ||||||||||||||
|
Investor
Class | ||||||||||||||
|
Year
ended 08/31/22 |
12.33
|
0.60
|
(1.64)
|
(1.04)
|
(0.60)
|
(1.19)
|
(1.79)
|
9.50
|
(9.82)
|
30,152
|
1.05
|
1.14
|
5.52
|
44
|
|
Year
ended 08/31/21 |
10.28
|
0.13
|
2.07
|
2.20
|
(0.15)
|
—
|
(0.15)
|
12.33
|
21.61
|
36,982
|
1.16
|
1.17
|
1.15
|
143
|
|
Year
ended 08/31/20 |
10.47
|
0.17
|
(0.20)
|
(0.03)
|
(0.16)
|
—
|
(0.16)
|
10.28
|
(0.14)
|
33,343
|
1.18
|
1.18
|
1.63
|
122
|
|
Year
ended 08/31/19 |
12.17
|
0.17
|
(1.54)
|
(1.37)
|
(0.13)
|
(0.20)
|
(0.33)
|
10.47
|
(11.30)
|
36,647
|
1.18
|
1.18
|
1.54
|
117
|
|
Year
ended 08/31/18 |
10.90
|
0.16
|
1.30
|
1.46
|
(0.19)
|
—
|
(0.19)
|
12.17
|
13.53
|
47,454
|
1.21
|
1.21
|
1.35
|
119
|
|
| ||||||||||||||
|
Class
R5 | ||||||||||||||
|
Year
ended 08/31/22 |
12.36
|
0.63
|
(1.64)
|
(1.01)
|
(0.64)
|
(1.19)
|
(1.83)
|
9.52
|
(9.55)
|
10,393
|
0.76
|
0.77
|
5.81
|
44
|
|
Year
ended 08/31/21 |
10.30
|
0.18
|
2.08
|
2.26
|
(0.20)
|
—
|
(0.20)
|
12.36
|
22.23
|
11,702
|
0.72
|
0.72
|
1.59
|
143
|
|
Year
ended 08/31/20 |
10.50
|
0.21
|
(0.20)
|
0.01
|
(0.21)
|
—
|
(0.21)
|
10.30
|
0.26
|
9,498
|
0.74
|
0.74
|
2.07
|
122
|
|
Year
ended 08/31/19 |
12.21
|
0.22
|
(1.56)
|
(1.34)
|
(0.17)
|
(0.20)
|
(0.37)
|
10.50
|
(10.96)
|
11,073
|
0.75
|
0.75
|
1.97
|
117
|
|
Year
ended 08/31/18 |
10.93
|
0.20
|
1.32
|
1.52
|
(0.24)
|
—
|
(0.24)
|
12.21
|
14.06
|
12,374
|
0.79
|
0.79
|
1.77
|
119
|
|
| ||||||||||||||
|
Class
R6 | ||||||||||||||
|
Year
ended 08/31/22 |
12.36
|
0.63
|
(1.65)
|
(1.02)
|
(0.64)
|
(1.19)
|
(1.83)
|
9.51
|
(9.64)
|
29
|
0.76
|
0.77
|
5.81
|
44
|
|
Year
ended 08/31/21 |
10.30
|
0.17
|
2.09
|
2.26
|
(0.20)
|
—
|
(0.20)
|
12.36
|
22.23
|
37
|
0.72
|
0.72
|
1.59
|
143
|
|
Year
ended 08/31/20 |
10.49
|
0.21
|
(0.19)
|
0.02
|
(0.21)
|
—
|
(0.21)
|
10.30
|
0.35
|
107
|
0.73
|
0.73
|
2.08
|
122
|
|
Year
ended 08/31/19 |
12.20
|
0.22
|
(1.55)
|
(1.33)
|
(0.18)
|
(0.20)
|
(0.38)
|
10.49
|
(10.96)
|
1,317
|
0.73
|
0.73
|
1.99
|
117
|
|
Year
ended 08/31/18 |
10.93
|
0.21
|
1.30
|
1.51
|
(0.24)
|
—
|
(0.24)
|
12.20
|
14.00
|
1,301
|
0.75
|
0.75
|
1.81
|
119
|
|
| ||||||||||||||
|
(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. |
10 Invesco
Income Advantage U.S. 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
|
1.08%
|
1.17%
|
1.17%
|
1.17%
|
1.17%
|
1.17%
|
1.17%
|
1.17%
|
1.17%
|
1.17%
|
|
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 |
(1.80%)
|
1.97%
|
5.87%
|
9.93%
|
14.14%
|
18.51%
|
23.05%
|
27.76%
|
32.65%
|
37.73%
|
|
End
of Year Balance |
$9,820.44
|
$10,196.56
|
$10,587.09
|
$10,992.58
|
$11,413.59
|
$11,850.73
|
$12,304.62
|
$12,775.88
|
$13,265.20
|
$13,773.26
|
|
Estimated
Annual Expenses |
$654.06
|
$117.10
|
$121.58
|
$126.24
|
$131.08
|
$136.10
|
$141.31
|
$146.72
|
$152.34
|
$158.17
|
|
| ||||||||||
|
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
|
1.08%
|
1.17%
|
1.17%
|
1.17%
|
1.17%
|
1.17%
|
1.17%
|
1.17%
|
1.17%
|
1.17%
|
|
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 |
3.92%
|
7.90%
|
12.03%
|
16.32%
|
20.78%
|
25.40%
|
30.21%
|
35.19%
|
40.37%
|
45.75%
|
|
End
of Year Balance |
$10,392.00
|
$10,790.01
|
$11,203.27
|
$11,632.36
|
$12,077.88
|
$12,540.46
|
$13,020.76
|
$13,519.45
|
$14,037.25
|
$14,574.87
|
|
Estimated
Annual Expenses |
$110.12
|
$123.91
|
$128.66
|
$133.59
|
$138.70
|
$144.02
|
$149.53
|
$155.26
|
$161.21
|
$167.38
|
|
| ||||||||||
|
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
|
1.83%
|
1.92%
|
1.92%
|
1.92%
|
1.92%
|
1.92%
|
1.92%
|
1.92%
|
1.17%
|
1.17%
|
|
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 |
3.17%
|
6.35%
|
9.62%
|
13.00%
|
16.48%
|
20.07%
|
23.77%
|
27.58%
|
32.46%
|
37.54%
|
|
End
of Year Balance |
$10,317.00
|
$10,634.76
|
$10,962.31
|
$11,299.95
|
$11,647.99
|
$12,006.75
|
$12,376.56
|
$12,757.76
|
$13,246.38
|
$13,753.71
|
|
Estimated
Annual Expenses |
$185.90
|
$201.14
|
$207.33
|
$213.72
|
$220.30
|
$227.09
|
$234.08
|
$241.29
|
$152.12
|
$157.95
|
|
| ||||||||||
|
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
|
1.33%
|
1.42%
|
1.42%
|
1.42%
|
1.42%
|
1.42%
|
1.42%
|
1.42%
|
1.42%
|
1.42%
|
|
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 |
3.67%
|
7.38%
|
11.23%
|
15.21%
|
19.33%
|
23.60%
|
28.03%
|
32.61%
|
37.36%
|
42.28%
|
|
End
of Year Balance |
$10,367.00
|
$10,738.14
|
$11,122.56
|
$11,520.75
|
$11,933.19
|
$12,360.40
|
$12,802.91
|
$13,261.25
|
$13,736.00
|
$14,227.75
|
|
Estimated
Annual Expenses |
$135.44
|
$149.85
|
$155.21
|
$160.77
|
$166.52
|
$172.48
|
$178.66
|
$185.06
|
$191.68
|
$198.54
|
|
| ||||||||||
|
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
|
0.83%
|
0.92%
|
0.92%
|
0.92%
|
0.92%
|
0.92%
|
0.92%
|
0.92%
|
0.92%
|
0.92%
|
|
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 |
4.17%
|
8.42%
|
12.84%
|
17.45%
|
22.24%
|
27.23%
|
32.42%
|
37.82%
|
43.44%
|
49.30%
|
|
End
of Year Balance |
$10,417.00
|
$10,842.01
|
$11,284.37
|
$11,744.77
|
$12,223.96
|
$12,722.69
|
$13,241.78
|
$13,782.04
|
$14,344.35
|
$14,929.60
|
|
Estimated
Annual Expenses |
$84.73
|
$97.79
|
$101.78
|
$105.93
|
$110.26
|
$114.75
|
$119.44
|
$124.31
|
$129.38
|
$134.66
|
|
| ||||||||||
|
Investor
Class |
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Year
5 |
Year
6 |
Year
7 |
Year
8 |
Year
9 |
Year
10 |
|
Annual
Expense Ratio1
|
1.08%
|
1.17%
|
1.17%
|
1.17%
|
1.17%
|
1.17%
|
1.17%
|
1.17%
|
1.17%
|
1.17%
|
|
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 |
3.92%
|
7.90%
|
12.03%
|
16.32%
|
20.78%
|
25.40%
|
30.21%
|
35.19%
|
40.37%
|
45.75%
|
|
End
of Year Balance |
$10,392.00
|
$10,790.01
|
$11,203.27
|
$11,632.36
|
$12,077.88
|
$12,540.46
|
$13,020.76
|
$13,519.45
|
$14,037.25
|
$14,574.87
|
|
Estimated
Annual Expenses |
$110.12
|
$123.91
|
$128.66
|
$133.59
|
$138.70
|
$144.02
|
$149.53
|
$155.26
|
$161.21
|
$167.38
|
|
| ||||||||||
|
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
|
0.79%
|
0.80%
|
0.80%
|
0.80%
|
0.80%
|
0.80%
|
0.80%
|
0.80%
|
0.80%
|
0.80%
|
|
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 |
4.21%
|
8.59%
|
13.15%
|
17.90%
|
22.85%
|
28.01%
|
33.39%
|
38.99%
|
44.83%
|
50.91%
|
|
End
of Year Balance |
$10,421.00
|
$10,858.68
|
$11,314.75
|
$11,789.97
|
$12,285.14
|
$12,801.12
|
$13,338.77
|
$13,899.00
|
$14,482.75
|
$15,091.03
|
|
Estimated
Annual Expenses |
$80.66
|
$85.12
|
$88.69
|
$92.42
|
$96.30
|
$100.35
|
$104.56
|
$108.95
|
$113.53
|
$118.30
|
|
| ||||||||||
11 Invesco
Income Advantage U.S. Fund
|
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
|
0.79%
|
0.80%
|
0.80%
|
0.80%
|
0.80%
|
0.80%
|
0.80%
|
0.80%
|
0.80%
|
0.80%
|
|
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 |
4.21%
|
8.59%
|
13.15%
|
17.90%
|
22.85%
|
28.01%
|
33.39%
|
38.99%
|
44.83%
|
50.91%
|
|
End
of Year Balance |
$10,421.00
|
$10,858.68
|
$11,314.75
|
$11,789.97
|
$12,285.14
|
$12,801.12
|
$13,338.77
|
$13,899.00
|
$14,482.75
|
$15,091.03
|
|
Estimated
Annual Expenses |
$80.66
|
$85.12
|
$88.69
|
$92.42
|
$96.30
|
$100.35
|
$104.56
|
$108.95
|
$113.53
|
$118.30
|
|
| ||||||||||
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.
12 Invesco
Income Advantage U.S. 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 all of the Invesco Funds and their share classes that have different fees and expenses.
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 |
|
|
▪ 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) |
A-1 The
Invesco Funds
MCF—12/22
|
Share
Classes |
|
|
|
|
|
Class
A |
Class
C |
Class
R |
Class
Y |
Class
R5 and R6 |
|
|
▪ 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 International Core Equity 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 a specific
Fund may make additional purchases into Class AX and CX, respectively, of such specific Fund. All references in this “Shareholder
Account Information” section of this prospectus to Class A, C or R shares of the Invesco Funds shall include Class AX
(excluding Invesco Government Money Market Fund), or CX shares, respectively, of the Invesco Funds, unless otherwise noted. All references
in this “Shareholder Account Information” section of this prospectus to Invesco Cash Reserve Shares of Invesco Government
Money Market Fund shall include Class AX shares of Invesco Government Money Market Fund, unless otherwise noted.
Class P
Shares
In
addition to the other share classes discussed herein, the Invesco Summit Fund offers Class P shares, which were historically sold
only through the AIM Summit Investors Plans I and II (each a Plan and, collectively, the Summit Plans). Class P shares are sold with
no initial sales charge and have a 12b-1 fee of 0.10%. However, Class P shares are not sold to members of the general public. Only
shareholders who had accounts in the Summit Plans at the close of business on December 8, 2006 may purchase Class P shares and
only until the total of their combined investments in the Summit Plans and in Class P shares directly equals the face amount of their
former Plan under the 30 year extended investment option. The face amount of a Plan is the combined total of all scheduled monthly
investments under the Plan. For a Plan with a scheduled monthly investment of $100.00, the face amount would have been $36,000.00 under
the 30 year extended investment option.
Class R
Shares
Class R
shares are intended for 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 (except for the Invesco Master Loan Fund) are available for use by Employer Sponsored Retirement and Benefit
Plans, held either at the plan level or through omnibus accounts, that generally process no more than one net redemption and one net purchase
transaction each day.
Class
R5 and R6 shares of the Funds are also available to institutional investors.
Institutional investors are: banks, trust companies, collective trust funds, entities acting for the account of a public entity (e.g.,
Taft-Hartley funds, states, cities or government agencies), funds of funds or other pooled investment vehicles, 529 college savings plans,
financial intermediaries and corporations investing for their own accounts, endowments and foundations. For information regarding investment
minimums for Class R5 and R6 shares, please see “Minimum Investments” below.
Class
R6 shares of the Funds are also available through an intermediary that
has agreed with Invesco Distributors, Inc. to make such shares
A-2 The
Invesco Funds
available
for use in retail omnibus accounts that generally process no more than one net redemption and one net purchase transaction each day.
The
Invesco Master Loan Fund is only available for purchase by other Funds
in the Invesco fund family and other Invesco pooled investment vehicles.
Shareholders
eligible to purchase Class R6 Shares must meet the requirements
specified by their intermediary. Not all intermediaries offer Class R6 Shares to their customers.
Class S
Shares
Class S
shares are limited to investors who purchase shares with the proceeds received from a systematic contractual investment plan redemption
within the 12 months prior to purchasing Class S shares, and who purchase through an approved financial intermediary that has
an agreement with the distributor to sell Class S shares. Class S shares are not otherwise sold to members of the general public.
An investor purchasing Class S shares will not pay an initial sales charge. The investor will no longer be eligible to purchase additional
Class S shares at that point where the value of the contributions to the prior systematic contractual investment plan combined with
the subsequent Class S share contributions equals the face amount of what would have been the investor’s systematic contractual
investment plan under the 30-year investment option. The face amount of a systematic contractual investment plan is the combined total
of all scheduled monthly investments under that plan. For a plan with a scheduled monthly investment of $100.00, the face amount would
have been $36,000.00 under the 30-year extended investment option.
Class Y
Shares
Class
Y shares are available to (i) investors who purchase through an account that is charged an asset-based fee or commission by a financial
intermediary, including through brokerage platforms, where a broker is acting as the investor’s agent, that may require the payment
by the investor of a commission and/or other form of compensation to that broker, (ii) endowments, foundations, or Employer Sponsored
Retirement and Benefit Plans (with the exception of “Solo 401(k)” Plans and 403(b) custodial accounts held directly at Invesco),
(iii) banks or bank trust departments acting on their own behalf or as trustee or manager for trust accounts, or (iv) any current, former
or retired trustee, director, officer or employee (or immediate family members of a current, former or retired trustee, director, officer
or employee) of any Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
Subject
to any conditions or limitations imposed on the servicing of Class
Y shares by your financial adviser, if you received Class Y shares as a result of a merger or reorganization of a predecessor fund into
any of the Funds, you will be permitted to make additional Class Y share purchases. In addition, you will be permitted to make additional
Class Y shares purchases if you owned Class Y shares in a “Solo 401(k)” Plan or 403(b) custodial account held directly at
Invesco if you held such shares in your account on or prior to May 24, 2019.
Investor
Class Shares
Investor
Class shares are sold with no initial sales charge and have a maximum 12b-1 fee of 0.25%. Only the following persons may purchase Investor
Class shares:
◾
Investors
who established accounts prior to April 1, 2002, in Investor Class shares with Invesco Distributors, Inc. (Invesco Distributors) who have
continuously maintained an account in Investor Class shares (this includes anyone listed in the registration of an account, such as a
joint owner, trustee or custodian, and immediate family members of such persons) without a designated intermediary. These investors are
referred to as “Investor Class grandfathered investors.”
◾
Customers
of a financial intermediary that has had an agreement with the Funds’ distributor or any Funds that offered Investor Class shares
prior to April 1, 2002, that has continuously maintained such agreement. These intermediaries are referred to as “Investor
Class grandfathered intermediaries.”
◾
Any
current, former or retired trustee, director, officer or employee (or immediate family member of a current, former or retired trustee,
director, officer or employee) of any Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
For
additional shareholder eligibility requirements with respect to Invesco
Premier Portfolio, please see “Shareholder Account Information – Purchasing Shares and Shareholder Eligibility – Invesco
Premier Portfolio.”
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.
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 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
A-4 The
Invesco Funds
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.
Merrill
Lynch
Shareholders
purchasing Fund shares through a Merrill
Lynch platform
or account will be eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at Merrill Lynch
◾
Employer-sponsored
retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to fund those plans,
provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the plan;
◾
Shares
purchased by a 529 Plan (does not include 529 Plan unit or 529-specific share classes or equivalents);
◾
Shares
purchased through a Merrill Lynch affiliated investment advisory program;
◾
Shares
exchanged due to the holdings moving from a Merrill Lynch affiliated investment advisory program to a Merrill Lynch brokerage (non-advisory)
account pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers;
◾
Shares
purchased by third party investment advisors on behalf of their advisory clients through Merrill Lynch’s platform;
◾
Shares
of funds purchased through the Merrill Edge Self-Directed platform (if applicable);
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not
any other fund within the fund family);
◾
Shares
exchanged from Class C (i.e.
level-load) shares of the same fund pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers;
◾
Employees
and registered representatives of Merrill Lynch or its affiliates and their family members;
◾
Directors
or Trustees of the Fund, and employees of the Fund’s investment adviser or any of its affiliates, as described in this prospectus;
and
◾
Eligible
shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days
following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to
a front-end or deferred sales load (known as Rights of Reinstatement). Automated transactions (i.e. systematic purchases and withdrawals)
and purchases made after shares are automatically sold to pay Merrill Lynch’s account maintenance fees are not eligible for reinstatement.
◾
CDSC
Waivers on A and C Shares available at Merrill Lynch
◾
Death
or disability of the shareholder;
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund’s prospectus;
◾
Return
of excess contributions from an IRA Account;
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts pursuant to the Internal Revenue Code;
◾
Shares
sold to pay Merrill Lynch fees but only if the transaction is initiated by Merrill Lynch;
◾
Shares
acquired through a right of reinstatement;
◾
Shares
held in retirement brokerage accounts, that are converted to a lower cost share class due to transfer to a fee based account or platform
(applicable to A and C shares only); and
◾
Shares
received through an exchange due to the holdings moving from a Merrill Lynch affiliated investment advisory program to a Merrill Lynch
brokerage (non-advisory) account pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers.
◾
Front-end
load Discounts Available at Merrill Lynch: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this prospectus;
◾
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts as described in the Fund’s prospectus will be automatically
calculated based on the aggregated holding of fund family assets held by accounts (including 529 program holdings, where applicable) within
the purchaser’s household at Merrill Lynch. Eligible fund family assets not held at Merrill Lynch may be included in the ROA calculation
only if the shareholder notifies his or her financial advisor about such assets; and
◾
Letters
of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Merrill Lynch, over
a 13-month period of time (if applicable).
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).
A-5 The
Invesco Funds
Morgan
Stanley Wealth Management
Shareholders
purchasing Fund shares through a Morgan Stanley
Wealth Management transactional brokerage account will be eligible
only for the following front-end sales charge waivers with respect to Class A shares, which may differ from and may be more limited than
those disclosed elsewhere in this Fund’s Prospectus or SAI.
◾
Front-end
Sales Charge Waivers on Class A Shares available at Morgan Stanley Wealth Management
◾
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and
defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs, SAR-SEPs
or Keogh plans;
◾
Morgan
Stanley employee and employee-related accounts according to Morgan Stanley’s account linking rules;
◾
Shares
purchased through reinvestment of dividends and capital gains distributions when purchasing shares of the same fund;
◾
Shares
purchased through a Morgan Stanley self-directed brokerage account;
◾
Class
C (i.e., level-load) shares that are no longer subject to a contingent deferred sales charge and are converted to Class A shares of the
same fund pursuant to Morgan Stanley Wealth Management’s share class conversion program; and
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (i) the repurchase occurs within 90 days following the
redemption, (ii) the redemption and purchase occur in the same account, and (iii) redeemed shares were subject to a front-end or deferred
sales charge.
Raymond
James Financial Services, Inc.
Shareholders
purchasing Fund shares through a Raymond
James Financial Services, Inc., Raymond James affiliates and each
entity’s affiliates (Raymond James) platform or account, or through an introducing broker-dealer or independent registered investment
adviser for which Raymond James provides trade execution, clearance, and/or custody services, will be eligible only for the following
load waivers (front-end sales charge waivers and contingent deferred, or back-end, sales charge waivers) and discounts, which may differ
from those disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
sales load waivers on Class A shares available at Raymond James
◾
Shares
purchased in an investment advisory program.
◾
Shares
purchased within the same fund family through a systematic reinvestment of capital gains distributions and dividend distributions.
◾
Employees
and registered representatives of Raymond James or its affiliates and their family members as designated by Raymond James.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (known as Rights of Reinstatement).
◾
A
shareholder in the Fund’s Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate
share class) of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures
of Raymond James.
◾
CDSC
Waivers on Classes A and C shares available at Raymond James
◾
Death
or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the fund’s prospectus.
◾
Return
of excess contributions from an IRA Account.
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based
on applicable IRS regulations as described in the fund’s prospectus.
◾
Shares
sold to pay Raymond James fees but only if the transaction is initiated by Raymond James.
◾
Shares
acquired through a right of reinstatement.
◾
Front-end
load discounts available at Raymond James: breakpoints, rights of accumulation, and/or letters of intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of
fund family assets held by accounts within the purchaser’s household at Raymond James. Eligible fund family assets not held at Raymond
James may be included in the calculation of rights of accumulation only if the shareholder notifies his or her financial advisor about
such assets.
◾
Letters
of intent which allow for breakpoint discounts based on anticipated purchases within a fund family, over a 13-month time period. Eligible
fund family assets not held at Raymond James may be included in the calculation of letters of intent only if the shareholder notifies
his or her financial advisor about such assets.
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.
A-6 The
Invesco Funds
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.
◾
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.
Oppenheimer
& Co. Inc. (“OPCO”)
Shareholders
purchasing Fund shares through an OPCO
platform or account are eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund's prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at OPCO
◾
Employer-sponsored
retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to
fund
those plans, provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the
plan
◾
Shares
purchased by or through a 529 Plan
◾
Shares
purchased through an OPCO affiliated investment advisory program
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not
any other fund within the fund family)
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (known as Rights of Reinstatement).
◾
A
shareholder in the Fund's Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate share
class) of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures of OPCO
◾
Employees
and registered representatives of OPCO or its affiliates and their family members
◾
Directors
or Trustees of the Fund, and employees of the Fund's investment adviser or any of its affiliates, as described in this prospectus
◾
CDSC
Waivers on A and C Shares available at OPCO
◾
Death
or disability of the shareholder
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund's prospectus
◾
Return
of excess contributions from an IRA Account
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based
on applicable IRS regulations as described in the prospectus
◾
Shares
sold to pay OPCO fees but only if the transaction is initiated by OPCO Shares acquired through a right of reinstatement
◾
Front-end
load Discounts Available at OPCO: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding
of fund family assets held by accounts within the purchaser's household at OPCO. Eligible fund family assets not held at OPCO may be included
in the ROA calculation only if the shareholder notifies his or her financial advisor about such assets.
Robert
W. Baird & Co. Incorporated (“Baird”)
Shareholders
purchasing fund shares through a Baird
platform or account will only be eligible for the following sales charge waivers (front-end sales charge waivers and CDSC waivers) and
discounts, which may differ from those disclosed elsewhere in this prospectus or the SAI.
◾
Front-End
Sales Charge Waivers on Class A-shares Available at Baird
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund.
◾
Shares
purchased by employees and registered representatives of Baird or its affiliate and their family members as designated by Baird.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales charge (known as rights of reinstatement).
◾
A
shareholder in the Fund’s Class C Shares will have their shares converted at net asset value to Class A shares of the fund if the
shares are no longer subject to CDSC and the conversion is in line with the policies and procedures of Baird.
◾
Employer-sponsored
retirement plans or charitable accounts in a transactional brokerage account at Baird, including 401(k) plans, 457 plans, employer-sponsored
403(b) plans, profit sharing and money
A-7 The
Invesco Funds
purchase
pension plans and defined benefit plans. For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs,
Simple IRAs or SAR-SEPs.
◾
CDSC
Waivers on Classes A and C shares Available at Baird
◾
Shares
sold due to death or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund’s Prospectus.
◾
Return
of excess contributions from an IRA Account.
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching age 72 as described in
the Fund’s prospectus.
◾
Shares
sold to pay Baird fees but only if the transaction is initiated by Baird.
◾
Shares
acquired through a right of reinstatement.
◾
Front-End
Sales Charge Discounts Available at Baird: Breakpoints, Rights of Accumulation and/or letters of intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of
fund family assets held by accounts within the purchaser’s household at Baird. Eligible fund family assets not held at Baird may
be included in the rights of accumulation calculation only if the shareholder notifies his or her financial advisor about such assets.
◾
Letters
of Intent (LOI) allow for breakpoint discounts based on anticipated purchases of within a fund family through Baird, over a 13-month period
of time.
Edward
D. Jones & Co., L.P. (“Edward Jones”)
Policies
Regarding Transactions Through Edward Jones
The
following information has been provided by Edward Jones:
The
following information supersedes prior information with respect to transactions
and positions held in fund shares through an Edward Jones system. Shareholders purchasing Fund shares through the Edward
Jones commission
and fee-based platforms will be eligible for the following load waivers (front- end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund's prospectus or statement of additional
information (“SAI”). 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 (including holdings of 529 Plans where Invesco serves as primary distributor), 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.
◾
Front-end
sales load waivers on Class A shares available at Edward Jones
◾
Associates
of Edward Jones and its affiliates and their family members who are 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: 1) the proceeds are
from the sale of shares within 60 days of the purchase, and 2) the sale and purchase are made in the same share class and the same account
or the purchase is made in an individual retirement account with proceeds from liquidations in a non-retirement account.
◾
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.
◾
CDSC
Waivers on Classes A and C shares available at Edward Jones
◾
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
sold 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 the qualified age based on applicable IRS regulations.
◾
Shares
sold 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 Minimum Balances, as described below.
◾
Front-end
load discounts available at Edward Jones: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoint
pricing, otherwise known as volume pricing, at dollar thresholds as described in the prospectus.
◾
Rights
of Accumulation (“ROA”) which entitles the shareholder to the applicable sales charge on a purchase of Class A shares will
be determined by taking into account all share classes (except certain money market funds and any assets held in group retirement plans)
of Invesco Funds (including holdings of 529 Plans where Invesco serves as primary distributor) 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).
◾
Letters
of Intent (“LOI”) allow shareholders to receive 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.
Other
Important Information Regarding Transactions Through Edward
Jones
Minimum
Purchase Amounts
•
Initial
purchase minimum: $250
•
Subsequent
purchase minimum: none
A-8 The
Invesco Funds
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.
Stifel,
Nicolaus & Company (“Stifel”)
Shareholders
purchasing Fund shares through a Stifel
platform or account will be eligible only for the following front-end sales charge waivers and discounts, which may differ from those
disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at Stifel: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this 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 Stifel. Eligible
fund family assets not held at Stifel may be included in the ROA calculation only if the shareholder notifies his or her financial advisor
about such assets; and
◾
Letters
of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Stifel, over a 13-month
period of time (if applicable).
◾
Shares
converted from Class C (i.e. level-load) shares of the same fund pursuant to Stifel policies relating to sales load discounts and waivers.
PFS
Investments Inc. (“PFSI”)
Policies
Regarding Transactions Through PFSI
The
following information supersedes all prior information with respect to transactions and positions held in fund shares purchased through
PFSI and held on the mutual fund platform of its affiliate, Primerica Shareholder Services (“PSS”). Clients of PFSI (also
referred to as “shareholders”) purchasing fund shares on the PSS platform are eligible only for the following share classes,
sales charge discounts (also referred to as “breakpoints”) and waivers, which can differ from share classes, discounts and
waivers described elsewhere in this prospectus or the related statement of additional information (“SAI”) or through another
broker-dealer. In all instances, it is the shareholder’s responsibility to inform PFSI at the time of a purchase of all holdings
of Invesco Funds on the PSS platform, or other facts qualifying the purchaser for discounts or waivers. PFSI may request reasonable documentation
of such facts, and condition the granting of any discount or waiver on the timely receipt of such documents. Shareholders should contact
PSS if they have questions regarding their eligibility for these discounts and waivers.
Share
Classes
◾
Class
A shares: in non-retirement accounts, individual retirement accounts (IRA), SEP IRAs, SIMPLE IRAs, Keogh Plans, and all other account
types unless expressly provided for below.
◾
Class
C shares: only in accounts with existing Class C share holdings.
Breakpoints
◾
Breakpoint
pricing at dollar thresholds as described in the prospectus of the fund you are purchasing.
Rights
of Accumulation (“ROA”)
◾
The
applicable sales charge on a purchase of Class A shares is determined by taking into account all share classes (except any assets held
in group retirement plans) of Invesco Funds held by the shareholder on the PSS Platform. The inclusion of eligible fund family assets
in the ROA calculation is dependent on the shareholder notifying PFSI of such assets at the time of calculation. Shares of money market
funds are
included
only if such shares were acquired in exchange for shares of another Invesco Fund purchased with a sales charge. No shares of Invesco Funds
held by the shareholder away from the PSS platform will be granted ROA with shares of any Invesco Fund purchased on the PSS platform.
◾
Any
SEP IRA plan, any SIMPLE IRA plan or any Payroll Deduction plan (“PDP”) on the PSS platform will be defaulted to plan-level
grouping for purposes of ROA, which allows each participating employee ROA with all other eligible shares held in plan accounts on the
PSS platform. At any time, a participating employee may elect to exercise a one-time option to change grouping for purposes of ROA to
shareholder- level grouping, which allows the plan account of the electing employee ROA with her other eligible holdings on the PSS platform,
but not with all other eligible participant holdings in the plan. Eligible shares held in plan accounts electing shareholder-level grouping
will not be available for purposes of ROA to plan accounts electing plan-level grouping.
◾
ROA
is determined by calculating the higher of cost minus redemptions or current market value (current shares x NAV).
Letter
of Intent (“LOI”)
◾
By
executing a LOI, shareholders can receive the sales charge and breakpoint discounts for purchases shareholders intend to make over a 13-month
period through PFSI, from the date PSS receives the LOI. The purchase price of the LOI is determined by calculating the higher of cost
or market value of qualifying holdings at LOI initiation in combination with the dollar amount the shareholder intends to invest over
a 13-month period to arrive at total investment for purposes of determining any breakpoint discount and the applicable front-end sales
charge. Each purchase the shareholder makes during that 13-month period will receive the sales charge and breakpoint discount that applies
to the projected total investment.
◾
Only
holdings of Invesco Funds on the PSS platform are eligible for inclusion in the LOI calculation and the shareholder must notify PFSI of
all eligible assets at the time of calculation.
◾
Purchases
made before the LOI is received by PSS are not adjusted under the LOI, and the LOI will not reduce any sales charge previously paid. Sales
charges will be automatically adjusted if the total purchases required by the LOI are not met.
◾
If
an employer maintaining a SEP IRA plan, SIMPLE IRA plan or non-IRA PDP on the PSS platform has elected to establish or change ROA for
the accounts associated with the plan to a plan-level grouping, LOIs will also be at the plan-level and may only be established by the
employer. LOIs are not available to PDP IRA plans on the PSS platform with plan-level grouping for purposes of ROA, but are available
to any participating employee that elects shareholder-level grouping for purposes of ROA.
Sales
Charge Waivers
Sales
charges are waived for the following shareholders and in the following
situations:
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment.
◾
Shares
purchased with the proceeds of redeemed shares of the same fund family so long as the following conditions are met: 1) the proceeds are
from the sale of shares within 90 days of the purchase, 2) the sale and purchase are made in the same share class and the same account
or the purchase is made in an individual retirement account with proceeds from liquidations in a non-retirement account, and 3) the redeemed
shares were subject to a front-end or deferred sales load, Automated transactions (i.e. systematic purchases and withdrawals), full or
partial transfers or rollovers of retirement accounts, and purchases made after shares are automatically sold to pay account maintenance
fees are not eligible for this sales charge waiver.
◾
Shares
exchanged into Class A shares from another share class so long as the exchange is into the same fund and was initiated at the discretion
of PFSI. PFSI is responsible for any remaining CDSC due to the fund company, if applicable. Any future purchases are subject to the applicable
sales charge as disclosed in the prospectus.
Policies
Regarding Fund Purchases Through PFSI That Are Not Held
on the PSS Platform
A-9 The
Invesco Funds
◾
Class
R shares
are available through PFSI only in 401(k) plans covering a business owner with no employees, commonly referred to as a one-participant
401(k) plan or solo 401(k).
UBS
Financial Services Inc. (“UBS”)
Pursuant
to an agreement with the Distributor, UBS may offer Class Y
shares
to its retail brokerage clients whose shares are held in omnibus
accounts at UBS, or its designee. For these clients, UBS may charge commissions or transaction fees with respect to brokerage transactions
in Class Y shares. The
minimum investment for Class Y shares is waived for transactions through such brokerage platforms at UBS. Please contact your UBS representative
for more information about these fees and other eligibility requirements.
Qualifying
for Reduced Sales Charges and Sales Charge Exceptions
The
following types of accounts qualify for reduced sales charges or sales charge exceptions under ROAs and LOIs:
1.
an
individual account owner;
2.
immediate
family of the individual account owner (which includes the individual’s spouse or domestic partner; the individual’s children,
step-children or grandchildren; the spouse or domestic partner of the individual’s children, step-children or grandchildren; the
individual’s parents and step-parents; the parents or step-parents of the individual’s spouse or domestic partner; the individual’s
grandparents; and the individual’s siblings);
3.
a
Retirement and Benefit Plan so long as the plan is established exclusively for the benefit of an individual account owner; and
4.
a
Coverdell Education Savings Account (Coverdell ESA), maintained pursuant to Section 530 of the Code (in either case, the account
must be established by an individual account owner or have an individual account owner named as the beneficiary thereof).
Alternatively,
an Employer Sponsored Retirement and Benefit Plan (but not including
plans utilizing the Invesco 403(b)(7) Custodial Account program, or the individual custodial accounts thereunder) or Employer Sponsored
IRA may be eligible to purchase shares pursuant to a ROA at the plan level, and receive a reduced applicable initial sales charge for
a new purchase based on the total value of the current purchase and the value of other shares owned by the plan’s participants if:
a)
the
employer or plan sponsor submits all contributions for all participating employees in a single contribution transmittal (the Invesco Funds
will not accept separate contributions submitted with respect to individual participants);
b)
each
transmittal is accompanied by checks or wire transfers; and
c)
if
the Invesco Funds are expected to carry separate accounts in the names of each of the plan participants, (i) the employer or plan
sponsor notifies Invesco Distributors or its designee in writing that the separate accounts of all plan participants should be linked,
and (ii) all new participant accounts are established by submitting an appropriate Account Application on behalf of each new participant
with the contribution transmittal.
Participant
accounts in a retirement plan that are eligible to purchase shares
pursuant to a ROA at the plan level may not also be considered eligible to do so for the benefit of an individual account owner.
In
all instances, it is the purchaser’s responsibility to notify Invesco Distributors
or its designee of any relationship or other facts qualifying the purchaser as eligible for reduced sales charges and/or sales charge
exceptions and to provide all necessary documentation of such facts in order to qualify for reduced sales charges or sales charge exceptions.
For additional information on linking accounts to qualify for ROA or LOI, please see the Funds’ SAI.
Purchases
of Class A shares of Invesco Conservative Income Fund, Invesco
Government Money Market Fund and Invesco Short Term Municipal Fund, Class AX shares or Invesco Cash Reserve Shares of Invesco Government
Money Market Fund and Invesco U.S. Government Money Portfolio, as applicable, or Investor Class shares of any Fund will not be
taken
into account in determining whether a purchase qualifies for a reduction in initial sales charges pursuant to ROAs or LOIs.
Rights
of Accumulation
Purchasers
that qualify for ROA may combine new purchases of Class A shares of a Fund with shares of the Fund or other open-end Invesco Funds
currently owned (Class A, C, IB, IC, P, R, S or Y) for the purpose of qualifying for the lower initial sales charge rates that apply
to larger purchases. The applicable initial sales charge for the new purchase will be based on the total of your current purchase and
the value of other shares owned based on their current public offering price. The Funds’ transfer agent may automatically link certain
accounts registered in the same name with the same taxpayer identification number for the purpose of qualifying you for lower initial
sales charge rates.
Letters
of Intent
Under
a LOI, you commit to purchase a specified dollar amount of Class A shares of one or more Funds during a 13-month period. The amount
you agree to purchase determines the initial sales charge you pay. If the full amount committed to in the LOI is not invested by the end
of the 13-month period, your account will generally be assessed the higher initial sales charge that would normally be applicable to the
total amount actually invested. Shares equal in value to 5% of the intended purchase amount will be held in escrow for this purpose.
Reinstatement
Following Redemption
If
you redeem any class of shares of a Fund, you may reinvest all or a portion of the proceeds from the redemption (and may include that
amount necessary to acquire a fractional Share to round off his or her purchase to the next full Share) in the same share class of any
Fund within 180 days of the redemption without paying an initial sales charge. Class P, S, and Y redemptions may be reinvested into Class
A shares without an initial sales charge.
This
reinstatement privilege does not apply to a purchase made through a
regularly scheduled automatic investment plan, such as a purchase by a regularly scheduled payroll deduction or transfer from a bank account.
This
reinstatement privilege shall be suspended for the period of time in which
a purchase block is in place on a shareholder’s account. Please see “Purchase Blocking Policy” discussed below.
In
order to take advantage of this reinstatement privilege, you must inform
your financial adviser or the Funds’ transfer agent that you wish to do so at the time of your reinvestment.
Contingent
Deferred Sales Charges (CDSCs)
CDSCs
on Class A Shares and Invesco Cash Reserve Shares
Any
shares of a Large Purchase of Class A shares redeemed prior to 18 months after the date of purchase will be subject to a CDSC of 1% with
the exception of Class A shares of Invesco Conservative Income Fund and Invesco Short Term Municipal Fund which do not have CDSCs on redemptions.
If
Invesco Distributors pays a concession to a financial intermediary in connection
with a Large Purchase of Class A shares by an Employer Sponsored Retirement and Benefit Plan or SIMPLE IRA Plan, the Class A shares will
be subject to a 1% CDSC if all of the Employer Sponsored Retirement and Benefit Plan’s or SIMPLE IRA’s shares are redeemed
within one year from the date of initial purchase.
If
you acquire Invesco Cash Reserve Shares or Class A shares of Invesco
Government Money Market Fund or Invesco Cash Reserve Shares of Invesco U.S. Government Money Portfolio through an exchange involving Class
A shares that were subject to a CDSC, the shares acquired as a result of the exchange will continue to be subject to that same CDSC.
CDSCs
on Class C Shares
Class
C shares are subject to a CDSC; however, the CDSC shall not apply to the purchases of Class C shares where the selling broker-dealer was
not paid a commission at the time of purchase. If you redeem your shares during the first year since your purchase has been made you will
be
A-10 The
Invesco Funds
assessed
a CDSC as disclosed in the “Fees and Expenses - Shareholder Fees” table in the prospectus, unless you qualify for one of the
CDSC exceptions outlined below.
CDSCs
on Class C Shares – Employer Sponsored Retirement and Benefit Plans and Employer Sponsored IRAs
Class
C shares are subject to a 1.00% CDSC at the time of redemption if all of the Employer Sponsored Retirement and Benefit Plan’s or
Employer Sponsored IRA’s shares are redeemed within one year from the date of initial purchase.
CDSCs
on Class C Shares of Invesco Short Term Bond Fund
Effective
November 1, 2021, Class C shares of Invesco Short Term Bond Fund are subject to a CDSC. If you acquire Class C shares of any other Fund
as a result of an exchange involving Class C shares of Invesco Short Term Bond Fund that were not subject to a CDSC prior to November
1, 2021, then the shares acquired as a result of the exchange will not be subject to a CDSC.
Computing
a CDSC
The
CDSC on redemptions of shares is computed based on the lower of their original purchase price or current net asset value, net of reinvested
dividends and capital gains distributions. In determining whether to charge a CDSC, shares are accounted for on a first-in, first-out
basis, which means that you will redeem shares on which there is no CDSC first, and then shares in the order of their purchase.
CDSC
Exceptions
Investors
who own shares that are otherwise subject to a CDSC will not pay a CDSC in the following circumstances:
◾
If
you participate in the Systematic Redemption Plan and withdraw up to 12% of the value of your shares that are subject to a CDSC in any
twelve-month period.
◾
If
you redeem shares to pay account fees.
◾
If
you are the executor, administrator or beneficiary of an estate or are otherwise entitled to assets remaining in an account following
the death or post-purchase disability of a shareholder or beneficial owner and you choose to redeem those shares.
There
are other circumstances under which you may be able to redeem shares
without paying CDSCs. For additional information about such circumstances, please see the Appendix entitled “Purchase, Redemption
and Pricing of Shares” in each Fund’s SAI.
Shares
acquired through the reinvestment of dividends and distributions are
not subject to CDSCs.
The
following share classes are sold without a CDSC:
◾
Class
A2 shares of Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund
◾
Class
A shares of Invesco Government Money Market Fund
◾
Invesco
Cash Reserve Shares of Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio
◾
Investor
Class shares of any Fund
◾
Class
P shares of Invesco Summit Fund
◾
Class
R5 and R6 shares of any Fund
◾
Class
R shares of any Fund
◾
Class
S shares of Invesco Charter Fund, Invesco Select Risk: Moderately Conservative Investor Fund, Invesco Select Risk: Growth Investor Fund,
Invesco Select Risk: Moderate Investor Fund and Invesco Summit Fund
◾
Class
Y shares of any Fund
Purchasing
Shares and Shareholder Eligibility
Invesco
Premier U.S. Government Money Portfolio
For
Invesco Premier U.S. Government Money Portfolio, you may purchase shares using one of the options below. Unless the Fund closes early
on a business day, the Fund’s transfer agent will generally accept any purchase order placed until 5:00 p.m. Eastern Time on a business
day and may accept a purchase order placed until 5:30 p.m. Eastern Time on a business
day.
If you wish to place an order between 5:00 p.m. and 5:30 p.m. Eastern Time on a business day, you must place such order by telephone;
however, the Fund’s transfer agent reserves the right to reject or limit the amount of orders placed during this time. If the Fund
closes early on a business day, the Fund’s transfer agent must receive your purchase order prior to such closing time. Purchase
orders will not be processed unless the account application and purchase payment are received in good order. In accordance with the USA
PATRIOT Act, if you fail to provide all the required information requested in the current account application, your purchase order will
not be processed. Additionally, federal law requires that the Fund verifies and records your identifying information.
Invesco
Premier Portfolio
Only
accounts beneficially owned by natural persons will be permitted to retain their shares. The Fund has implemented policies and procedures
reasonably designed to limit all beneficial owners of the Fund to natural persons, and investments in the Fund are limited to accounts
beneficially owned by natural persons. Natural persons may invest in the Fund through certain tax-advantaged savings accounts, trusts
and other retirement and investment accounts, which may include, among others: participant-directed defined contribution plans; individual
retirement accounts; simplified employee pension arrangements; simple retirement accounts; custodial accounts; deferred compensation plans
for government or tax-exempt organization employees; Archer medical savings accounts; college savings plans; health savings account plans;
ordinary trusts and estates of natural persons; or certain other retirement and investment accounts with ultimate investment authority
held by the natural person beneficial owner, notwithstanding having an institutional decision maker making day-to-day decisions (e.g.,
a plan sponsor in certain retirement arrangements or an investment adviser managing discretionary investment accounts).
Further,
financial intermediaries may only submit purchase orders if they have
implemented policies and procedures reasonably designed to limit all investors on behalf of whom they submit orders to accounts beneficially
owned by natural persons. Financial intermediaries may be required to provide a written statement or other representation that they have
in place, and operate in compliance with, such policies and procedures prior to submitting purchase orders. Such policies and procedures
may include provisions for the financial intermediary to promptly report to the Fund or the transfer agent the identification of any shareholder
of the Fund that does not qualify as a natural person of whom they are aware and promptly take steps to redeem any such shareholder’s
shares of the Fund upon request by the Fund or the transfer agent, in such manner as it may reasonably request. The Fund may involuntarily
redeem any such shareholder who does not voluntarily redeem their shares.
Natural
persons may purchase shares using one of the options below. For
all classes of the Fund, other than Investor Class shares, unless the Fund closes early on a business day, the Fund’s transfer agent
will generally accept any purchase order placed until 5:00 p.m. Eastern Time on a business day and may accept a purchase order placed
until 5:30 p.m. Eastern Time on a business day. If you wish to place an order between 5:00 p.m. and 5:30 p.m. Eastern Time on a business
day, you must place such order by telephone; or send your request by a pre-arranged Liquidity Link data transmission however, the Fund’s
transfer agent reserves the right to reject or limit the amount of orders placed during this time. For Investor Class shares of the Fund,
unless the Fund closes early on a business day, the Fund’s transfer agent will generally accept any purchase order placed until
4:00 p.m. Eastern Time on a business day and may accept a purchase order placed until 4:30 p.m. Eastern Time on a business day. If you
wish to place an order between 4:00 p.m. and 4:30 p.m. Eastern Time on a business day, you must place such order by telephone; however,
the Fund’s transfer agent reserves the right to reject or limit the amount of orders placed during this time. If the Fund closes
early on a business day, the Fund’s transfer agent must receive your purchase order prior to such closing time. Purchase orders
will not be processed unless the account application and purchase payment are received in good order. In accordance with the USA PATRIOT
Act, if you fail to provide all the required information requested in the current account application, your purchase order will not be
A-11 The
Invesco Funds
processed.
Additionally, federal law requires that the Fund verify and record your identifying information.
Minimum Investments
There
are no minimum investments for Class P or S shares for fund accounts. The minimum investments for Class A, C, R, Y, Investor Class and
Invesco Cash Reserve shares for fund accounts are as follows:
|
Type
of Account |
Initial
Investment
Per
Fund |
Additional
Investments
Per
Fund |
|
Asset
or fee-based accounts managed by your financial
adviser
|
None
|
None
|
|
| ||
|
Employer
Sponsored Retirement and Benefit Plans and
Employer
Sponsored IRAs |
None
|
None
|
|
| ||
|
IRAs
and Coverdell ESAs if the new investor is
purchasing
shares through a systematic purchase plan |
$25
|
$25
|
|
| ||
|
All
other accounts if the investor is purchasing shares
through
a systematic purchase plan |
50
|
50
|
|
| ||
|
IRAs
and Coverdell ESAs |
250
|
25
|
|
| ||
|
All
other accounts |
1,000
|
50
|
|
| ||
Invesco
Distributors or its designee has the discretion to accept orders on behalf of clients for lesser amounts.
The
minimum investments for Class R5 and R6 shares are as follows:
There
is no minimum initial investment for an Employer Sponsored Retirement
and Benefit Plan investing through a retirement platform that administers at least $2.5 billion in retirement plan assets. All other Employer
Sponsored Retirement and Benefit Plans must meet a minimum initial investment of at least $1 million in each Fund in which it invests.
The
minimum initial investment in each share class for all other institutional
investors is $1 million, unless such investment is made by (i) an investment company, as defined under the 1940 Act, as amended, that
is part of a family of investment companies which own in the aggregate at least $100 million in securities, or (ii) an account established
with a 529 college savings plan managed by Invesco, in which case there is no minimum initial investment.
There
are no minimum investment amounts for Class R6 shares held through
retail omnibus accounts where the intermediary:
◾
generally
charges an asset-based fee or commission in addition to those described in this prospectus; and
◾
maintains
Class R6 shares and makes them available to retail investors.
A
financial intermediary may impose different investment minimums than
those set forth above. The Fund is not responsible for any investment minimums imposed by financial intermediaries or for notifying shareholders
of any changes to them. See “Waivers Available Through Certain Financial Intermediaries and Other Financial Intermediary-Specific
Arrangements” for more information on certain intermediary-specific investment minimums. Please consult with your financial intermediary
if you have any questions regarding their policies.
How
to Purchase Shares*
|
|
Opening
An Account |
Adding
To An Account |
|
Through
a
Financial
Adviser
or
Financial
Intermediary*
|
Contact
your financial adviser or
financial
intermediary. |
Contact
your financial adviser or
financial
intermediary. |
|
By
Mail |
Mail
completed account application
and
check to the Funds’ transfer
agent,
Invesco
Investment Services, Inc.
P.O.
Box 219078,
Kansas
City, MO 64121-9078.
The
Funds’ transfer agent does NOT
accept
the following types of
payments:
Credit Card Checks,
Temporary/Starter
Checks, Third
Party
Checks, and Cash. |
Mail
your check and the remittance
slip
from your confirmation
statement
to the Funds’ transfer
agent.
The Funds’ transfer agent
does
NOT accept the following
types
of payments: Credit Card
Checks,
Temporary/Starter Checks,
Third
Party Checks, and Cash. |
|
|
Opening
An Account |
Adding
To An Account |
|
By
Wire* |
Mail
completed account application
to
the Funds’ transfer agent. Call
the
Funds’ transfer agent at (800)
959-4246
to receive a reference
number.
Then, use the wire
instructions
provided below. |
Call
the Funds’ transfer agent to
receive
a reference number. Then,
use
the wire instructions provided
below.
|
|
Wire
Instructions |
Beneficiary
Bank ABA/Routing #: 011001234
Beneficiary
Account Number: 729639
Beneficiary
Account Name: Invesco Investment Services, Inc.
RFB:
Fund Name, Reference #
OBI:
Your Name, Account # | |
|
By
Telephone* |
Open
your account using one of the
methods
described above. |
The
Bank Account Information
option
on your completed account
application
or complete a
Systematic
Options and Bank
Information
Form. Mail the
application
or form to the Funds’
transfer
agent. Once the Funds’
transfer
agent has received the
form,
call the Funds’ transfer agent
at
the number below to place your
purchase
order. For Class R5 and
R6
shares, call the Funds’ transfer
agent
at (800) 959-4246 and wire
payment
for your purchase order in
accordance
with the wire
instructions
listed above. |
|
Automated
Investor
Line |
Open
your account using one of the
methods
described above. |
Call
the Funds’ transfer agent’s
24-hour
Automated Investor Line at
1-800-246-5463.
You may place
your
order after you have provided
the
bank instructions that will be
requested.
|
|
By
Internet |
Open
your account using one of the
methods
described above. |
Access
your account at
www.invesco.com/us.
The proper
bank
instructions must have been
provided
on your account. You may
not
purchase shares in Retirement
and
Benefit Plans on the internet. |
|
*Class
R5 and R6 shares may only be purchased through a financial intermediary or by
telephone
at (800) 959-4246. | ||
Non-retirement
retail investors, including high net worth investors investing
directly or through a financial intermediary, are not eligible for Class R5 shares. IRAs and Employer Sponsored IRAs are also not eligible
for Class R5 shares. If you hold your shares through a financial intermediary, the terms by which you purchase, redeem and exchange shares
may differ than the terms in this prospectus depending upon the policies and procedures of your financial intermediary.
Purchase
orders will not be processed unless the account application and
purchase payment are received in good order. In accordance with the USA PATRIOT Act, if you fail to provide all the required information
requested in the current account application, your purchase order will not be processed. Additionally, federal law requires that the Funds
verify and record your identifying information.
Systematic
Purchase Plan (Available for all classes except Class R5 and R6 shares)
You
can arrange for periodic investments in any of the Funds by authorizing the Funds’ transfer agent to withdraw the amount of your
investment from your bank account on a day or dates you specify and in an amount of at least $25 per Fund for IRAs and Coverdell ESAs,
and at least $50 per Fund for all other types of accounts (a Systematic Purchase Plan). You may stop the Systematic Purchase Plan at any
time by giving the Funds’ transfer agent notice ten days prior to your next scheduled withdrawal. Certain financial advisers and
other financial intermediaries may also offer systematic purchase plans.
A-12 The
Invesco Funds
Dollar
Cost Averaging (Available for all classes except Class R5 and R6 shares)
Dollar
Cost Averaging allows you to make automatic periodic exchanges, if permitted, from one Fund to another Fund or multiple other Funds. The
account from which exchanges are to be made must have a minimum balance of $5,000 before you can use this option. Exchanges will occur
on (or about) the day of the month you specify, in the amount you specify. Dollar Cost Averaging cannot be set up for the 29th through
the 31st of the month. The minimum amount you can exchange to another Fund is $50. Your financial intermediary may offer alternative dollar
cost averaging programs with different requirements.
Automatic
Dividend and Distribution Investment
Your
dividends and distributions may be paid in cash or reinvested in the same Fund or another Fund without paying an initial sales charge.
Unless
you specify otherwise, your dividends and distributions will automatically
be reinvested in the same Fund. You must comply with the following requirements to be eligible to invest your dividends and distributions
in shares of another Fund:
◾
Your
account balance in the Fund paying the dividend or distribution must be at least $5,000; and
◾
Your
account balance in the Fund receiving the dividend or distribution must be at least $500.
If
you elect to receive your distributions by check, and the distribution amount
is $25 or less, then the amount will be automatically reinvested in the same Fund and no check will be issued. If you have elected to
receive distributions by check, and the postal service is unable to deliver checks to your address of record, then your distribution election
may be converted to having all subsequent distributions reinvested in the same Fund and no checks will be issued. With respect to certain
account types, if your check remains uncashed for six months, the Fund generally reserves the right to reinvest your distribution check
in your account at the then applicable NAV and to reinvest all subsequent distributions in shares of the Fund. Such checks will be reinvested
into the same share class of the Fund. You should contact the Funds’ transfer agent to change your distribution option, and your
request to do so must be received by the Funds’ transfer agent before the record date for a distribution in order to be effective
for that distribution. No interest will accrue on amounts represented by uncashed distribution checks.
Redeeming
Shares*
The
Funds’ transfer agent or authorized intermediary, if applicable, must receive your call before the Funds’ net asset value
determination (as defined by the applicable Fund) in order to effect the redemption at that day’s net asset value.
Your
broker or financial intermediary may charge service fees for handling
redemption transactions.
|
How
to Redeem Shares | |
|
Through
a Financial
Adviser
or Financial
Intermediary*
|
Contact
your financial adviser or financial intermediary. The Funds’
transfer
agent must receive your financial adviser’s or financial
intermediary’s
call before the Funds’ net asset value determination
(as
defined by the applicable Fund) in order to effect the redemption
at
that day’s net asset value. Please contact your financial adviser or
financial
intermediary with respect to reporting of cost basis and
available
elections for your account. |
|
By
Mail |
Send
a written request to the Funds’ transfer agent which includes: |
|
|
▪ Original
signatures of all registered owners/trustees;
▪ The
dollar value or number of shares that you wish to redeem;
▪ The
name of the Fund(s) and your account number;
▪ The
cost basis method or specific shares you wish to redeem for
tax
reporting purposes, if different than the method already on
record;
and |
|
|
▪ Signature
guarantees, if necessary (see below).
The
Funds’ transfer agent may require that you provide additional
documentation,
or information, such as corporate resolutions or
powers
of attorney, if applicable. If you are redeeming from a
Retirement
and Benefit Plan, you must complete the appropriate
distribution
form. |
|
How
to Redeem Shares | |
|
By
Telephone* |
Call
the Funds’ transfer agent at 1-800-959-4246. You will be
allowed
to redeem by telephone if:
▪ Your
redemption proceeds are to be mailed to your address on
record
(and there has been no change in your address of record
within
the last 15 days) or transferred electronically to a
pre-authorized
checking account;
▪ You
can provide proper identification information;
▪ Your
redemption proceeds do not exceed $250,000 per Fund; and
▪ You
have not previously declined the telephone redemption
privilege.
|
|
|
You
may, in limited circumstances, initiate a redemption from an
Invesco
IRA by telephone. Redemptions from Employer Sponsored
Retirement
and Benefit Plans and Employer Sponsored IRAs may be
initiated
only in writing and require the completion of the appropriate
distribution
form, as well as employer authorization. You must call the
Funds’
transfer agent before the Funds’ net asset value
determination
(as defined by the applicable Fund) in order to effect
the
redemption at that day’s net asset value. |
|
Automated
Investor Line |
Call
the Funds’ transfer agent’s 24-hour Automated Investor Line at
1-800-246-5463.
You may place your redemption order after you
have
provided the bank instructions that will be requested. |
|
By
Internet |
Place
your redemption request at www.invesco.com/us. You will be
allowed
to redeem by Internet if:
▪ You
can provide proper identification information;
▪ Your
redemption proceeds do not exceed $250,000 per Fund; and
▪ You
have already provided proper bank information.
Redemptions
from Employer Sponsored Retirement and Benefit
Plans
and Employer Sponsored IRAs may be initiated only in writing
and
require the completion of the appropriate distribution form, as
well
as employer authorization. |
|
*Class
R5 and R6 shares may only be redeemed through a financial intermediary or by
telephone
at (800) 959-4246. | |
Timing
and Method of Payment
The
Funds’ transfer agent typically expects to pay redemption proceeds to redeeming shareholders within one business day after a redemption
request is received in good order, regardless of the method a Fund uses to make such payment. However, a Fund may take up to seven days
to process a redemption request. “Good order” means that all necessary information and documentation related to the redemption
request have been provided to the Funds’ transfer agent or authorized intermediary, if applicable. If your request is not in good
order, the Funds’ transfer agent may require additional documentation in order to redeem your shares. If you redeem shares recently
purchased by check or ACH, you may be required to wait up to ten calendar days before your redemption proceeds are sent. This delay is
necessary to ensure that the purchase has cleared. You can avoid the check hold period if you pay for your shares with a certified check,
a cashier’s check or a federal wire. Payment may be postponed under unusual circumstances, as allowed by the SEC, such as when the
NYSE restricts or suspends trading.
In
addition, a temporary hold may be placed on the disbursement of redemption
proceeds from an account if there is a reasonable belief that financial exploitation of a Specified Adult (as defined below) has occurred,
is occurring, has been attempted, or will be attempted. Notice of such a delay will be provided in accordance with regulatory requirements.
This temporary hold will be for an initial period of no more than 15 business days while an internal review is performed. Should the internal
review support the belief that financial exploitation has occurred, is occurring, has been attempted or will be attempted, the temporary
hold may be extended for up to 10 additional business days. Both the initial and subsequent hold on the disbursement may be terminated
or extended by a state regulator or an agency or court of competent jurisdiction. For purposes of this paragraph, the term “Specified
Adult” refers to an individual who is (a) a natural person age 65 and older, or (b) a natural person age 18 and older who is reasonably
believed to have a mental or physical impairment that renders the individual unable to protect his or her own interests.
If
you redeem by telephone, the Funds’ transfer agent will transmit the amount
of redemption proceeds electronically to your pre-authorized bank account. Redemption checks are mailed to your address of record, via
first
A-13 The
Invesco Funds
class
U.S. mail, unless you make other arrangements with the Funds’ transfer agent.
The
Funds’ transfer agent uses reasonable procedures to confirm that instructions
communicated via telephone and the Internet are genuine, and the Funds and the Funds’ transfer agent are not liable for losses arising
from actions taken in accordance with instructions that are reasonably believed to be genuine.
A
Fund typically expects to use holdings of cash and cash equivalents and
sales of portfolio assets to meet redemption requests, both regularly and in stressed market conditions. The Funds also have the ability
to redeem in kind as further described below under “Redemptions in Kind.” Certain Funds have a line of credit,
as disclosed in such Funds’ principal investment strategy
and risk disclosures that may be used to meet redemptions in stressed market conditions.
Expedited
Redemptions (for Invesco Cash Reserve Shares of Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio only)
If
you place your redemption order by telephone, before 11:30 a.m. Eastern Time and request an expedited redemption, the Funds’ transfer
agent will transmit payment of redemption proceeds on that same day via federal wire to a bank of record on your account. If the Funds’
transfer agent receives your redemption order after 11:30 a.m. Eastern Time and before the close of the customary trading session of the
NYSE, it will transmit payment on the next business day.
Suspension
of Redemptions
The
right of redemption may be suspended or the date of payment postponed when (a) trading on the NYSE is restricted, as determined by applicable
rules and regulations of the SEC, (b) the NYSE is closed for other than customary weekend and holiday closings, (c) the SEC has by order
permitted such suspension, or (d) an emergency as determined by the SEC exists making disposition of portfolio securities or the valuation
of the net assets of the Fund not reasonably practicable. With respect to Invesco Government Money Market Fund, Invesco U.S. Government
Money Portfolio, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio, in the event that the Fund, at the end
of a business day, has invested less than 10% of its total assets in weekly liquid assets or, with respect to the retail and government
money market funds, the Fund’s price per share as computed for the purpose of distribution, redemption and repurchase, rounded to
the nearest 1%, has deviated from the stable price established by the Fund’s Board of Trustees (“Board”) or the Board,
including a majority of trustees who are not interested persons as defined in the 1940 Act, determines that such a deviation is likely
to occur, and the Board, including a majority of trustees who are not interested persons of the Fund, irrevocably has approved the liquidation
of the Fund, the Fund’s Board has the authority to suspend redemptions of Fund shares.
Liquidity
Fees and Redemption Gates
For
Invesco Premier Portfolio, if the Fund’s weekly liquid assets fall below 30% of its total assets, the Board, in its discretion,
may impose liquidity fees of up to 2% of the value of the shares redeemed and/or suspend redemptions (redemption gates). In addition,
if any such Fund’s weekly liquid assets falls below 10% of its total assets at the end of any business day, the Fund must impose
a 1% liquidity fee on shareholder redemptions unless the Board determines that not doing so is in the best interests of the Fund.
Liquidity
fees and redemption gates are most likely to be imposed, if at all,
during times of extraordinary market stress. In the event that a liquidity fee or redemption gate is imposed, the Board expects that for
the duration of its implementation and the day after which such gate or fee is terminated, the Fund would strike only one net asset value
per day, at the Fund’s last scheduled net asset value calculation time.
The
imposition and termination of a liquidity fee or redemption gate will be
reported by a Fund to the SEC on Form N-CR. Such information will also be available on the Fund’s website. In addition, a Fund will
communicate such action through a supplement to its registration statement and may further communicate such action through a press release
or by other means. If a liquidity fee is applied by the Board, it will be charged on all
redemption
orders submitted after the effective time of the imposition of the fee by the Board. Liquidity fees would reduce the amount you receive
upon redemption of your shares. In the event a Fund imposes a redemption gate, the Fund or any financial intermediary on its behalf will
not accept redemption requests until the Fund provides notice that the redemption gate has been terminated.
Redemption
requests submitted while a redemption gate is imposed will be cancelled
without further notice. If shareholders still wish to redeem their shares after a redemption gate has been lifted, they will need to submit
a new redemption request.
Liquidity
fees and redemption gates will generally be used to assist a Fund
to help preserve its market–based NAV per share. It is possible that a liquidity fee will be returned to shareholders in the form
of a distribution. The Board may, in its discretion, terminate a liquidity fee or redemption gate at any time if it believes such action
to be in the best interest of a Fund. Also, liquidity fees and redemption gates will automatically terminate at the beginning of the next
business day once a Fund’s weekly liquid assets reach at least 30% of its total assets. Redemption gates may only last up to 10
business days in any 90-day period. When a fee or a gate is in place, the Fund may elect not to permit the purchase of shares or to subject
the purchase of shares to certain conditions, which may include affirmation of the purchaser’s knowledge that a fee or a gate is
in effect. When a fee or a gate is in place, shareholders will not be permitted to exchange into or out of a Fund.
There
is some degree of uncertainty with respect to the tax treatment of liquidity
fees received by a Fund, and such tax treatment may be the subject to future IRS guidance. If a Fund receives liquidity fees, it will
consider the appropriate tax treatment of such fees to the Fund at such time.
Financial
intermediaries are required to promptly take the steps requested
by the Funds or their designees to impose or help to implement a liquidity fee or redemption gate as requested from time to time, including
the rejection of orders due to the imposition of a fee or gate or the prompt re-confirmation of orders following a notification regarding
the implementation of a fee or gate. If a liquidity fee is imposed, these steps are expected to include the submission of separate, rather
than combined, purchase and redemption orders from the time of the effectiveness of the liquidity fee or redemption gate and the submission
of such order information to the Fund or its designee prior to the next calculation of a Fund’s net asset value. Unless otherwise
agreed to between a Fund and financial intermediary, the Fund will withhold liquidity fees on behalf of financial intermediaries. With
regard to such orders, a redemption request that a Fund determines in its sole discretion has been received in good order by the Fund
or its designated agent prior to the imposition of a liquidity fee or redemption gate may be paid by the Fund despite the imposition of
a redemption gate or without the deduction of a liquidity fee. If a liquidity fee is imposed during the day, an intermediary who receives
both purchase and redemption orders from a single account holder is not required to net the purchase and redemption orders. However, the
intermediary is permitted to apply the liquidity fee to the net amount of redemptions (even if the purchase order was received prior to
the time the liquidity fee was imposed).
Where
a Financial Intermediary serves as a Fund’s agent for the purpose
of receiving orders, trades that are not transmitted to the Fund by the Financial Intermediary before the time required by the Fund or
the transfer agent may, in the Fund’s discretion, be processed on an as-of basis, and any cost or loss to the Fund or transfer agent
or their affiliates, from such transactions shall be borne exclusively by the Financial Intermediary.
Systematic
Withdrawals (Available for all classes except Class R5 and R6 shares)
You
may arrange for regular periodic withdrawals from your account in amounts equal to or greater than $50 per Fund. The Funds’ transfer
agent will redeem the appropriate number of shares from your account to provide redemption proceeds in the amount requested. You must
have a total account balance of at least $5,000 in order to establish a Systematic Redemption Plan, unless you are establishing a Required
Minimum
A-14 The
Invesco Funds
Distribution
for a Retirement and Benefit Plan. You can stop this plan at any time by giving ten days’ prior notice to the Funds’ transfer
agent.
Check
Writing
The
Funds’ transfer agent provides check writing privileges for accounts in the following Funds and share classes:
◾
Invesco
Government Money Market Fund, Invesco Cash Reserve Shares, Class AX shares, Class Y shares and Investor Class shares
◾
Invesco
U.S. Government Money Portfolio, Invesco Cash Reserve Shares and Class Y shares
◾
Invesco
Premier Portfolio, Investor Class shares
◾
Invesco
Premier U.S. Government Money Portfolio, Investor Class shares
You
may redeem shares of these Funds by writing checks in amounts of $250
or more if you have subscribed to the service by completing a Check Writing authorization form.
Check
writing privileges are not available for Retirement and Benefit Plans.
Checks are not eligible to be converted to ACH by the payee. You may not give authorization to a payee by phone to debit your account
by ACH for a debt owed to the payee.
If
you do not have a sufficient number of shares in your account to cover
the amount of the check and any applicable deferred sales charge, the check will be returned and no shares will be redeemed. Because it
is not possible to determine your account’s value in advance, you should not write a check for the entire value of your account
or try to close your account by writing a check.
A
check writing redemption request which is verifiably submitted to a Fund’s
agent before a liquidity fee or redemption gate is imposed will be considered a valid redemption and will be processed normally.
Signature
Guarantees
The
Funds’ transfer agent requires a signature guarantee in the following circumstances:
◾
When
your redemption proceeds exceed $250,000 per Fund.
◾
When
you request that redemption proceeds be paid to someone other than the registered owner of the account.
◾
When
you request that redemption proceeds be sent somewhere other than the address of record or bank of record on the account.
◾
When
you request that redemption proceeds be sent to a new address or an address that changed in the last 15 days.
The
Funds’ transfer agent will accept a guarantee of your signature by a number
of different types of financial institutions. Call the Funds’ transfer agent for additional information. Some institutions have
transaction amount maximums for these guarantees. Please check with the guarantor institution to determine whether the signature guarantee
offered will be sufficient to cover the value of your transaction request.
Redemptions
in Kind
Although
the Funds generally intend to pay redemption proceeds solely in cash, the Funds reserve the right to determine, in their sole discretion,
whether to satisfy redemption requests by making payment in securities or other property (known as a redemption in kind). Redemptions
in kind may result in transaction costs and/or market fluctuations associated with liquidating or holding the securities, respectively.
Purchases-in-Kind
You
may purchase shares of a Fund by transferring securities to a Fund in exchange for Fund shares (“in-kind purchases”). In-kind
purchases may be made only upon the Funds’ approval and determination that the securities are acceptable investments for the Fund
and are purchased consistent with the Fund’s procedures relating to in-kind purchases. The Funds reserve the right to amend or terminate
this practice at any time. You must call the Funds at (800) 959-4246 before sending any securities. Please see the SAI for additional
details.
Redemptions
by Large Shareholders
At
times, the Fund may experience adverse effects when certain large shareholders redeem large amounts of shares of the Fund. Large redemptions
may cause the Fund to sell portfolio securities at times when it would not otherwise do so. In addition, these transactions may also
accelerate
the realization of taxable income to shareholders (if applicable) if such sales of investments resulted in gains and may also increase
transaction costs and/or increase in the Fund’s expense ratio. When experiencing a redemption by a large shareholder, the Fund may
delay payment of the redemption request up to seven days to provide the investment manager with time to determine if the Fund can redeem
the request-in-kind or to consider other alternatives to lessen the harm to remaining shareholders. Under certain circumstances, however,
the Fund may be unable to delay a redemption request, which could result in the automatic processing of a large redemption that is detrimental
to the Fund and its remaining shareholders.
Redemptions
Initiated by the Funds
If
your account (Class A, C, P, S and Investor Class shares only) has been open at least one year, you have not made an additional purchase
in the account during the past six calendar months, and the value of your account falls below $500 for three consecutive months, the Funds
have the right to redeem the account after giving you 60 days’ prior written notice. You may avoid having your account redeemed
during the notice period by bringing the account value up to $500 or by initiating a Systematic Purchase Plan.
A
financial intermediary may have a different policy regarding redemptions
of accounts with small balances. The Fund is not responsible for any small account balance policies imposed by financial intermediaries
or for notifying shareholders of any changes to them. See “Waivers Available Through Certain Financial Intermediaries and Other
Financial Intermediary-Specific Arrangements” for more information on certain intermediary-specific small account balance policies.
Please consult with your financial intermediary if you have any questions regarding their policies.
If
a Fund determines that you have not provided a correct Social Security
or other tax identification number on your account application, or the Fund is not able to verify your identity as required by law, the
Fund may, at its discretion, redeem the account and distribute the proceeds to you.
In
order to separate retail investors (natural persons) and non-retail investors,
the Invesco Premier Portfolio reserve the right to redeem shares in any account that the Funds cannot confirm to their satisfaction are
beneficially owned by natural persons. The Funds will provide advance written notice of their intent to make any such involuntary redemptions.
The Funds reserve the right to redeem shares in any account that they cannot confirm to their satisfaction are beneficially owned by natural
persons, after providing advance notice.
Neither
a Fund nor its investment adviser will be responsible for any loss
in an investor’s account or tax liability resulting from an involuntary redemption.
Minimum
Account Balance (Available for all classes except Class R5 and R6 shares)
A
low balance fee of $12 per year may be deducted in the fourth quarter of each year from all accounts held in the Funds (each a Fund Account)
with a value less than the low balance amount (the Low Balance Amount) as determined from time to time by the Funds and the Adviser. The
Funds and the Adviser generally expect the Low Balance Amount to be $750, but such amount may be adjusted for any year depending on various
factors, including market conditions. The Low Balance Amount and the date on which it will be deducted from any Fund Account will be posted
on our website, www.invesco.com/us, on or about November 1 of each year. This fee will be payable to the Funds’ transfer agent by
redeeming from a Fund Account sufficient shares owned by a shareholder and will be used by the Funds’ transfer agent to offset amounts
that would otherwise be payable by the Funds to the Funds’ transfer agent under the Funds’ transfer agency agreement with
the Funds’ transfer agent. The low balance fee does not apply to participant accounts in advisory programs or to Employer Sponsored
Retirement and Benefit Plans.
Exchanging
Shares
You
may, under certain circumstances, exchange shares in one Fund for those of another Fund. An exchange is the purchase of shares in one
Fund which is paid for with the proceeds from a redemption of shares of another
A-15 The
Invesco Funds
Fund
effectuated on the same day. Any gain on the transaction may be subject to federal income tax. Accordingly, the procedures and processes
applicable to redemptions of Fund shares, as discussed under the heading “Redeeming Shares” above, will apply. Before requesting
an exchange, review the prospectus of the Fund you wish to acquire.
All
exchanges are subject to the limitations set forth in the prospectuses of
the Funds. If you wish to exchange shares of one Fund for those of another Fund, you must consult the prospectus of the Fund whose shares
you wish to acquire to determine whether the Fund is offering shares to new investors and whether you are eligible to acquire shares of
that Fund.
Permitted
Exchanges
Except
as otherwise provided herein or in the SAI, you generally may exchange your shares for shares of the same class of another Fund. The following
table shows generally permitted exchanges from one Fund to another Fund (exceptions listed below under “Exchanges Not Permitted”):
|
Exchange
From |
Exchange
To |
|
Invesco
Cash Reserve Shares |
Class
A, C, R, Investor Class |
|
| |
|
Class
A |
Class
A, Investor Class, Invesco Cash Reserve Shares* |
|
| |
|
Class
A2 |
Class
A, Investor Class, Invesco Cash Reserve Shares |
|
| |
|
Class
AX |
Class
A, AX, Investor Class, Invesco Cash Reserve Shares |
|
| |
|
Investor
Class |
Class
A, Investor Class |
|
| |
|
Class
P |
Class
A, Invesco Cash Reserve Shares |
|
| |
|
Class
S |
Class
A, S, Invesco Cash Reserve Shares |
|
| |
|
Class
C |
Class
C* |
|
| |
|
Class
CX |
Class
C, CX |
|
| |
|
Class
R |
Class
R* |
|
| |
|
Class
R5 |
Class
R5 |
|
| |
|
Class
R6 |
Class
R6 |
|
| |
|
Class
Y |
Class
Y* |
|
|
|
|
* You
may exchange Class Y shares of Invesco U.S. Government Money Portfolio for Class A, C
or
R shares of any other Fund as long as you are otherwise eligible for such share class. If you
exchange
Class Y shares of Invesco U.S. Government Money Portfolio for Class A, C or R shares
of
any other Fund, you may exchange those Class A, C or R shares back into Class Y shares of
Invesco
U.S. Government Money Portfolio, but not Class Y shares of any other Fund. | |
Exchanges
into Invesco Senior Loan Fund
Invesco
Senior Loan Fund is a closed-end interval fund that continuously offers its shares pursuant to the terms and conditions of its prospectus.
The Adviser is the investment adviser for the Invesco Senior Loan Fund. As with the Invesco Funds, you generally may exchange your shares
of Class A (Invesco Cash Reserve Shares of Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio) or Class
C of any Invesco Fund for shares of Class A or Class C, respectively, of Invesco Senior Loan Fund. Please refer to the prospectus for
the Invesco Senior Loan Fund for more information, including limitations on exchanges out of Invesco Senior Loan Fund.
Exchanges
Not Permitted
The
following exchanges are not permitted:
◾
Investor
Class shares cannot be exchanged for Class A shares of any Fund which offers Investor Class shares.
◾
Class A2
shares of Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund cannot be exchanged for Class A shares
of those Funds.
◾
Invesco
Cash Reserve Shares cannot be exchanged for Class C or R shares if the shares being exchanged were acquired by exchange from Class A
shares of any Fund.
◾
All
existing systematic exchanges and reallocations will cease and these options will no longer be available on all 403(b) prototype plans.
◾
Class
A, C or R shares of a Fund acquired by exchange of Class Y shares of Invesco U.S. Government Money Portfolio cannot be exchanged for Class
Y shares of any Fund, except Class Y shares of Invesco U.S. Government Money Portfolio.
Exchange
Conditions
Shares
must have been held for at least one day prior to the exchange with the exception of dividends and distributions that are reinvested.
Under
unusual market conditions, a Fund may delay the exchange of shares
for up to five business days if it determines that it would be materially disadvantaged by the immediate transfer of exchange proceeds.
The exchange privilege is not an option or right to purchase shares. Any of the participating Funds or the distributor may modify or terminate
this privilege at any time.
Initial
Sales Charges, CDSCs and 12b-1 Fees Applicable to Exchanges
You
may be required to pay an initial sales charge when exchanging from a Fund with a lower initial sales charge than the one into which you
are exchanging. If you exchange into shares that are subject to a CDSC, the Funds’ transfer agent will begin the holding period
for purposes of calculating the CDSC on the date you made your initial purchase.
In
addition, as a result of differences in the forms of distribution plans among
the Funds, certain exchanges of Class A shares, Class C shares, and Class R shares of a Fund for the same class of shares of another Fund
may result in investors paying a higher or a lower 12b-1 fee on the Fund being exchanged into. Please refer to the prospectus fee table
and financial highlights table and the SAI for more information on the fees and expenses, including applicable 12b-1 fees, of the Fund
you wish to acquire.
Share
Class Conversions
Shares
of one class of a Fund may be converted into shares of another class of the same Fund, provided that you are eligible to buy that share
class. Investors who hold Fund shares through a financial intermediary that does not have an agreement to make certain share classes of
the Funds available or that cannot systematically support the conversion may not be eligible to convert their shares. Furthermore, your
financial intermediary may have discretion to effect a conversion on your behalf. Consult with your financial intermediary for details.
Any CDSC associated with the converting shares will be assessed immediately prior to the conversion to the new share class. The conversion
of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes and no gain
or loss will be reported on the transaction. See the applicable prospectus for share class information.
Fees
and expenses differ between share classes. You should read the prospectus
for the share class into which you are seeking to convert your shares prior to the conversion.
Automatic
Conversion of Class C and Class CX Shares
Class
C and Class CX shares held for eight years after purchase are eligible for automatic conversion into Class A and Class AX shares of the
same Fund, respectively, except that for the Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio, the Funds’
Class C and/or Class CX shares would be eligible to automatically convert into the Fund’s Invesco Cash Reserve Share Class and all
existing Class C shares of Invesco Short Term Municipal Fund will automatically convert to Class A shares of that Fund at the end of June
2022 (the Conversion Feature). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month
following the eighth anniversary after a purchase of Class C or Class CX shares (the Conversion Date). The first conversion of Class C
and Class CX shares to Class A and Class AX shares under this policy would occur at the end of December 2020 for all Class C and Class
CX shares that were held for more than eight years as of November 30, 2020.
Automatic
conversions pursuant to the Conversion Feature will be on the basis
of the NAV per share, without the imposition of any sales charge (including a CDSC), fee or other charge. All such automatic conversions
of Class C and Class CX shares will constitute tax-free exchanges for federal income tax purposes.
Class
C and Class CX shares of a Fund acquired through a reinvestment of
dividends and distributions will convert to Class A and Class AX shares, respectively, of the Fund (or Invesco Cash Reserve shares for
Invesco
A-16 The
Invesco Funds
Government
Money Market Fund) on the Conversion Date pro rata with the converting Class C and Class CX shares of that Fund that were not acquired
through reinvestment of dividends and distributions.
Class
C or Class CX shares held through a financial intermediary in existing
omnibus Employer Sponsored Retirement and Benefit Plans and other omnibus accounts may be converted pursuant to the Conversion Feature
by the financial intermediary once it is determined that the Class C or Class CX shares have been held for the required holding period.
It is the financial intermediary’s (and not the Fund’s) responsibility to keep records and to ensure that the shareholder
is credited with the proper holding period as the Fund and its agents may not have transparency into how long a shareholder has held Class
C or Class CX shares for purposes of determining whether such Class C or Class CX shares are eligible to automatically convert pursuant
to the Conversion Feature. In order to determine eligibility for automatic conversion in these circumstances, it is the responsibility
of the shareholder or their financial intermediary to determine that the shareholder is eligible to exercise the Conversion Feature, and
the shareholder or their financial intermediary may be required to maintain records that substantiate the holding period of Class C or
Class CX shares.
In
addition, a financial intermediary may sponsor and/or control programs
or platforms that impose a different conversion schedule or eligibility requirements for conversions of Class C or Class CX shares. In
these cases, Class C and Class CX shares of certain shareholders may not be eligible for automatic conversion pursuant to the Conversion
Feature as described above. The Fund has no responsibility for overseeing, monitoring or implementing a financial intermediary’s
process for determining whether a shareholder meets the required holding period for automatic conversion. Please consult with your financial
intermediary if you have any questions regarding the Conversion Feature.
Share
Class Conversions Not Permitted
The
following share class conversions are not permitted:
◾
Conversions
into Class A from Class A2 of the same Fund.
◾
Conversions
into Class A2, Class AX, Class CX, Class P or Class S of the same Fund.
Rights
Reserved by the Funds
Each
Fund and its agents reserve the right at any time to:
◾
Reject
or cancel all or any part of any purchase or exchange order.
◾
Modify
any terms or conditions related to the purchase, redemption or exchange of shares of any Fund.
◾
Reject
or cancel any request to establish a Systematic Purchase Plan or Systematic Redemption Plan.
◾
Modify
or terminate any sales charge waivers or exceptions.
◾
Suspend,
change or withdraw all or any part of the offering made by this prospectus.
Excessive
Short-Term Trading Activity (Market Timing) Disclosures
While
the Funds provide their shareholders with daily liquidity, their investment programs are designed to serve long-term investors and are
not designed to accommodate excessive short-term trading activity in violation of our policies described below. Excessive short-term trading
activity in the Funds’ shares (i.e., a purchase of Fund shares followed shortly thereafter by a redemption of such shares, or vice
versa) may hurt the long-term performance of certain Funds by requiring them to maintain an excessive amount of cash or to liquidate portfolio
holdings at a disadvantageous time, thus interfering with the efficient management of such Funds by causing them to incur increased brokerage
and administrative costs. Where excessive short-term trading activity seeks to take advantage of arbitrage opportunities from stale prices
for portfolio securities, the value of Fund shares held by long-term investors may be diluted. The Board has adopted policies and procedures
designed to discourage excessive or short-term trading of Fund shares for all Funds except the money market funds, Invesco Conservative
Income Fund, and Invesco Short Term Municipal Fund. However, there is the risk that these Funds’ policies and procedures will prove
ineffective in whole or in part to detect or prevent excessive or
short-term
trading. These Funds may alter their policies at any time without prior notice to shareholders if the Adviser believes the change would
be in the best interests of long-term shareholders.
Invesco
and certain of its corporate affiliates (Invesco and such affiliates,
collectively, the Invesco Affiliates) currently use the following tools designed to discourage excessive short-term trading in the retail
Funds:
◾
Trade
activity monitoring.
◾
Discretion
to reject orders.
◾
Purchase
blocking.
◾
The
use of fair value pricing consistent with the valuation policy approved by the Board and related procedures.
Each
of these tools is described in more detail below. Although these tools
are designed to discourage excessive short-term trading, you should understand that none of these tools alone nor all of them taken together
eliminate the possibility that excessive short-term trading activity in the Funds will occur. Moreover, each of these tools involves judgments
that are inherently subjective. Invesco Affiliates seek to make these judgments to the best of their abilities in a manner that they believe
is consistent with long-term shareholder interests.
Money
Market Funds. The Boards of Invesco Government Money Market Fund,
Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio (the money market
funds) have not adopted any policies and procedures that would limit frequent purchases and redemptions of such Funds’ shares. The
Boards of the money market funds considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal. Nonetheless, to the extent that a money market fund must maintain additional cash and/or
securities with short-term durations in greater amounts than may otherwise be required or borrow to honor redemption requests, the money
market fund’s yield could be negatively impacted.
The
Boards of the money market funds do not believe that it is appropriate
to adopt any such policies and procedures for the money market funds for the following reasons:
◾
The
money market funds are offered to investors as cash management vehicles; therefore, investors should be able to purchase and redeem shares
regularly and frequently.
◾
One
of the advantages of a money market fund as compared to other investment options is liquidity. Any policy that diminishes the liquidity
of the money market funds will be detrimental to the continuing operations of such Funds.
◾
With
respect to the money market funds maintaining a constant net asset value, the money market funds’ portfolio securities are valued
on the basis of amortized cost, and such Funds seek to maintain a constant net asset value. As a result, the money market funds are not
subject to price arbitrage opportunities.
◾
With
respect to the money market funds maintaining a constant net asset value, because such Funds seek to maintain a constant net asset value,
investors are more likely to expect to receive the amount they originally invested in the Funds upon redemption than other mutual funds.
Invesco
Conservative Income Fund. The Board of Invesco Conservative Income
Fund has not adopted any policies and procedures that would limit frequent purchases and redemptions of such Fund’s shares. The
Board of Invesco Conservative Income Fund considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal especially in light of the reasons for not having such a policy as described below. Nonetheless,
to the extent that the Fund must maintain additional cash and/or securities with short-term durations in greater amounts than may otherwise
be required or borrow to honor redemption requests, the Fund’s yield could be negatively impacted.
The
Board of the Invesco Conservative Income Fund does not believe that
it is appropriate to adopt any such policies and procedures for the Fund for the following reasons:
◾
The
Fund is offered to investors as a cash management vehicle; investors perceive an investment in the Fund as an alternative to cash and
must be able to purchase and redeem shares regularly and frequently.
A-17 The
Invesco Funds
◾
One
of the advantages of the Fund as compared to other investment options is liquidity. Any policy that diminishes the liquidity of the Fund
will be detrimental to the continuing operations of the Fund.
Excessive
trading activity in the Fund’s shares may cause the Fund to incur
increased brokerage and administrative costs.
The
Fund and its agent reserve the right at any time to reject or cancel any
part of any purchase order. This could occur if the Fund determines that such purchase may disrupt the Fund’s operation or performance.
Invesco
Short Term Municipal Fund. The Board of Invesco Short Term Municipal
Fund has not adopted any policies and procedures that would limit frequent purchases and redemptions of such Fund’s shares. The
Board of Invesco Short Term Municipal Fund considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal, especially in light of the reasons for not having such a policy as described below. Nonetheless,
to the extent that the Fund must maintain additional cash and/or securities with short-term durations in greater amounts than may otherwise
be required or borrow to honor redemption requests, the Fund’s yield could be negatively impacted.
The
Board of Invesco Short Term Municipal Fund does not believe that it is
appropriate to adopt any such policies and procedures for the Fund for the following reasons:
◾
The
Fund is designed to address the needs of retail investors who seek liquidity in their investment and seek the ability to purchase and
redeem shares at any time.
◾
Any
policy that diminishes the ability of shareholders to purchase and redeem shares of the Fund will be detrimental to the continuing operations
of the Fund.
◾
The
Fund generally invests in short duration liquid investment grade municipal securities.
Excessive
trading activity in the Fund’s shares may cause the Fund to incur
increased brokerage and administrative costs. The Fund and its agent reserve the right at any time to reject or cancel any part of any
purchase order. This could occur if the Fund determines that such purchase may disrupt the Fund’s operation or performance.
Trade
Activity Monitoring
Invesco
Affiliates monitor selected trades on a daily basis in an effort to detect excessive short-term trading activities. If, as a result of
this monitoring, Invesco Affiliates believe that a shareholder has engaged in excessive short-term trading, they will seek to act in a
manner that they believe is consistent with the best interests of long-term investors, which may include taking steps such as (i) asking
the shareholder to take action to stop such activities or (ii) refusing to process future purchases or exchanges related to such activities
in the shareholder’s accounts other than exchanges into a money market fund. Invesco Affiliates will use reasonable efforts to apply
the Funds’ policies uniformly given the practical limitations described above.
The
ability of Invesco Affiliates to monitor trades that are made through accounts
that are maintained by intermediaries (rather than the Funds’ transfer agent) and through conduit investment vehicles may be limited
or non-existent.
Discretion
to Reject Orders
If
a Fund or an Invesco Affiliate determines, in its sole discretion, that your short-term trading activity is excessive, the Fund may, in
its sole discretion, reject any additional purchase and exchange orders. This discretion may be exercised with respect to purchase or
exchange orders placed directly with the Funds’ transfer agent or through a financial intermediary.
Purchase
Blocking Policy
The
Funds (except those listed below) have adopted a policy under which any shareholder redeeming shares having a value of $50,000 or more
from a Fund on any trading day will be precluded from investing in that Fund for 30 calendar days after the redemption transaction date.
The policy applies to redemptions and purchases that are part of exchange transactions. Under the purchase blocking policy, certain purchases
will not be prevented and certain redemptions will not trigger a purchase block, such as: purchases
and redemptions
of shares having a value of less than $50,000; systematic purchase, redemption and exchange account options; transfers of shares within
the same Fund; non-discretionary rebalancing in fund-of-funds; asset allocation features; fee-based accounts; account maintenance fees;
small balance account fees; plan-level omnibus Retirement and Benefit Plans; death and disability and hardship distributions; loan transactions;
transfers of assets; Retirement and Benefit Plan rollovers; IRA conversions and re-characterizations; and mandatory distributions from
Retirement and Benefit Plans.
The
Funds reserve the right to modify any of the parameters (including those
not listed above) of the purchase blocking policy at any time. Further, the purchase blocking policy may be waived with respect to specific
shareholder accounts in those instances where the Adviser determines that its surveillance procedures are adequate to detect frequent
trading in Fund shares.
If
an account is maintained by a financial intermediary whose systems are
unable to apply Invesco’s purchase blocking policy, the Adviser will accept the establishment of an account only if the Adviser
believes the policies and procedures are reasonably designed to enforce the frequent trading policies of the Funds. You should refer to
disclosures provided by the financial intermediary with which you have an account to determine the specific trading restrictions that
apply to you. If the Adviser identifies any activity that may constitute frequent trading, it reserves the right to contact the intermediary
and request that the intermediary either provide information regarding an account owner’s transactions or restrict the account owner’s
trading. There is no guarantee that all instances of frequent trading in Fund shares will be prevented.
The
purchase blocking policy does not apply to Invesco Conservative Income
Fund, Invesco Short Term Municipal Fund, Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government
Money Portfolio and Invesco U.S. Government Money Portfolio.
Pricing
of Shares
Determination
of Net Asset Value
The
price of each Fund’s shares is the Fund’s net asset value per share. The Funds (except Invesco Government Money Market Fund,
Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio) value portfolio
securities for which market quotations are readily available at market value. Securities and other assets quoted in foreign currencies
are valued in U.S. dollars based on the prevailing exchange rates on that day. The Funds (except Invesco Government Money Market Fund,
Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio) value securities
and assets for which market quotations are unavailable at their “fair value,” which is described below. Invesco Government
Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio
value portfolio securities on the basis of amortized cost, which approximates market value. This method of valuation is designed to enable
a Fund to price its shares at $1.00 per share. The Funds cannot guarantee their net asset value will always remain at $1.00 per share.
Securities and other assets quoted in foreign currencies are valued in U.S. dollars based on the prevailing exchange rates on that day.
The Fund values securities and assets for which market quotations are unavailable at their “fair value,” which is described
below.
Even
when market quotations are available, they may be stale or not
representative of market value in the Adviser’s judgment (“unreliable”)
because the security is not traded frequently, trading on the security
ceased before the close of the trading market or issuer specific events occurred after the security ceased trading or because of the passage
of time between the close of the market on which the security trades and the close of the NYSE and when the Fund calculates its net asset
value. Issuer specific events may cause the last market quotation to be unreliable. Such events may include a merger or insolvency, events
that affect a geographical area or an industry segment, such as political events or natural disasters, or market events, such as a significant
movement in the U.S. market. Where
A-18 The
Invesco Funds
the Adviser
determines that the closing price of the security is stale or unreliable, the Adviser will value the security at its fair value.
A
fair value price is an estimated price that requires consideration of all appropriate factors, including indications of fair value available
from pricing services. Fair value pricing involves judgment and a Fund that uses fair value methodologies may value securities higher
or lower than another Fund using market quotations or its own fair value methodologies to price the same securities. Investors who purchase
or redeem Fund shares on days when the Fund is holding fair-valued securities may receive a greater or lesser number of shares, or higher
or lower redemption proceeds, than they would have received if the Fund had not fair-valued the security or had used a different methodology.
The
Board has designated the Adviser to perform the daily determination
of fair value prices in accordance with Board approved
policies and related procedures,
subject to the Board’s oversight. Fair value pricing methods
and pricing services can change from time to time.
The
intended effect of applying fair value pricing is to compute an NAV that
accurately reflects the value of a Fund’s portfolio at the time that the NAV is calculated. An additional intended effect is to
discourage those seeking to take advantage of arbitrage opportunities resulting from “stale” prices and to mitigate the dilutive
impact of any such arbitrage. However, the application of fair value pricing cannot eliminate the possibility that arbitrage opportunities
will exist.
Specific
types of securities are valued as follows:
Senior
Secured Floating Rate Loans and Senior Secured Floating Rate Debt
Securities. Senior secured floating rate loans and senior secured
floating rate debt securities are fair valued using evaluated quotes provided by an independent pricing service. Evaluated quotes provided
by the pricing service may reflect appropriate factors such as market quotes, ratings, tranche type, industry, company performance, spread,
individual trading characteristics, institution-size trading in similar groups of securities and other market data.
Domestic
Exchange Traded Equity Securities. Market quotations are generally
available and reliable for domestic exchange traded equity securities. If market quotations are not available or are unreliable, the Adviser
will value the security at fair value in good faith using the valuation policy approved by the Board and related procedures.
Foreign
Securities. If market quotations are available and reliable for
foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign
securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular
security and the close of the customary trading session on the NYSE events occur that are significant and may make the closing price unreliable,
the Fund may fair value the security. If an issuer specific event has occurred that the Adviser determines, in its judgment, is likely
to have affected the closing price of a foreign security, it will price the security at fair value. The Adviser also relies on a screening
process from a pricing vendor to indicate the degree of certainty, based on historical data, that the closing price in the principal market
where a foreign security trades is not the current market value as of the close of the NYSE. For foreign securities where the Adviser
believes, at the approved degree of certainty, that the price is not reflective of current market value, the Adviser will use the indication
of fair value from the pricing service to determine the fair value of the security. The pricing vendor, pricing methodology or degree
of certainty may change from time to time.
Fund
securities primarily traded on foreign markets may trade on days that
are not business days of the Fund. Because the net asset value of Fund shares is determined only on business days of the Fund, the value
of the portfolio securities of a Fund that invests in foreign securities may change on days when you will not be able to purchase or redeem
shares of the Fund.
Fixed
Income Securities. Fixed income securities, such as government,
corporate, asset-backed and municipal bonds, convertible securities, including high yield or junk bonds, and loans, generally are valued
on the basis of prices provided by independent pricing services. Prices provided by the pricing services may be determined without exclusive
reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in
similar
groups of securities, developments related to special securities, dividend rate, maturity and other market data. Pricing services generally
value fixed income securities assuming orderly transactions of institutional round lot size, but a Fund may hold or transact in the same
securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Prices received from pricing
services are fair value prices. In addition, if the price provided by the pricing service and independent quoted prices are unreliable,
the Adviser will fair value the security using the valuation policy approved by the Board and related procedures.
Short-term
Securities. Invesco Government Money Market Fund, Invesco Premier
Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio value all their securities at amortized
cost. Invesco Limited Term Municipal Income Fund values variable rate securities that have an unconditional demand or put feature exercisable
within seven days or less at par, which reflects the market value of such securities.
Futures
and Options. Futures contracts are valued at the final settlement
price set by the exchange on which they are principally traded. U.S.
exchange-traded options are valued at the mean between the last
bid and asked prices from the exchange on which they principally trade. Non-U.S. exchange-traded options are valued at the final settlement
price set by
the exchange on which they trade. Options not listed on an exchange and swaps generally are valued using pricing provided from independent
pricing services.
Swap
Agreements. Swap Agreements are fair valued using an evaluated
quote provided by an independent pricing service. Evaluated quotes provided by the pricing service are based on a model that may include
end of day net present values, spreads, ratings, industry and company performance.
Open-end
Funds. If a Fund invests in other open-end funds, other than open-end
funds that are exchange traded, the investing Fund will calculate its net asset value using the net asset value of the underlying fund
in which it invests, and the prospectuses for such open-end funds explain the circumstances under which they will use fair value pricing
and the effects of using fair value pricing.
Each
Fund, except for Invesco Government Money Market Fund, Invesco Premier
Portfolio and Invesco Premier U.S. Government Money Portfolio, generally determines the net asset value of its shares on each day the
NYSE is open for trading (a business day) as of approximately 4:00 p.m. Eastern Time (the customary close of regular trading) or earlier
in the case of a scheduled early close. In the event of an unscheduled early close of the NYSE, each Fund, except for Invesco Government
Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio, generally still will determine the net
asset value of its shares as of 4:00 p.m. Eastern Time on that business day. Portfolio securities traded on the NYSE would be valued at
their closing prices unless the Adviser determines
that a “fair value” adjustment is appropriate due to subsequent events occurring after an early close consistent with the
valuation policy approved
by the Board and related procedures. Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government
Money Portfolio will generally determine the net asset value of their shares at 5:30 p.m. Eastern Time on each business day. A business
day for Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio is any day
that (1) both the Federal Reserve Bank of New York and a Fund’s custodian are open for business and (2) the primary trading markets
for the Fund’s portfolio instruments are open and the Fund’s management believes there is an adequate market to meet purchase
and redemption requests. Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money
Portfolio are authorized not to open for trading on a day that is otherwise a business day if the Securities Industry and Financial Markets
Association (SIFMA) recommends that government securities dealers not open for trading; any such day will not be considered a business
day. Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio, Invesco
U.S. Government Money Portfolio also may close early on a business day if SIFMA recommends that government securities dealers close early.
If
A-19 The
Invesco Funds
Invesco
Government Money Market Fund, Invesco Premier Portfolio or Invesco Premier U.S. Government Money Portfolio uses its discretion to
close early on a business day, the Fund will calculate its net asset value as of the time of such closing Invesco Premier Portfolio and
Invesco U.S. Government Money Portfolio are authorized to not open for trading on a day that is otherwise a business day if the NYSE recommends
that government securities dealers not open for trading; any such day will not be considered a business day. Invesco Premier Portfolio
also may close early on a business day if the NYSE recommends that government securities dealers close early.
For
financial reporting purposes and shareholder transactions on the last
day of the fiscal quarter, transactions are normally accounted for on a trade date basis. For purposes of executing shareholder transactions
in the normal course of business (other than shareholder transactions at a fiscal period-end), each Fund’s portfolio securities
transactions are recorded no later than the first business day following the trade date.
The
Invesco Advantage International Fund, Invesco Balanced-Risk Allocation
Fund, Invesco Balanced-Risk Commodity Strategy Fund, Invesco Fundamental Alternatives Fund, Invesco Global Allocation Fund, Invesco Global
Strategic Income Fund, Invesco Gold & Special Minerals Fund, Invesco High Yield Bond Factor Fund, Invesco International Bond Fund
and Invesco Macro Allocation Strategy Fund may each invest up to 25% of their total assets in shares of their respective subsidiaries
(the Subsidiaries). The Subsidiaries offer to redeem all or a portion of their shares at the current net asset value per share every regular
business day. The value of shares of the Subsidiaries will fluctuate with the value of the respective Subsidiary’s portfolio investments.
The Subsidiaries price their portfolio investments pursuant to the same pricing and valuation methodologies and procedures used by the
Funds, which require, among other things, that each of the Subsidiaries’ portfolio investments be marked-to-market (that is, the
value on each of the Subsidiaries’ books changes) each business day to reflect changes in the market value of the investment.
Each
Fund’s current net asset value per share is made available on the Funds’
website at www.invesco.com/us.
Fair
Value Pricing
Securities
owned by a Fund (except Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio
and Invesco U.S. Government Money Portfolio) are to be valued at current market value if market quotations are readily available. All
other securities and assets of a Fund for which market quotations are not readily available are to be valued at fair value determined
in good faith consistent with the valuation policy approved by the Board and related procedures. An effect of fair value pricing may be
to reduce the ability of frequent traders to take advantage of arbitrage opportunities resulting from potentially “stale”
prices of portfolio holdings. However, it cannot eliminate the possibility of frequent trading.
The
price a Fund could receive upon the sale of any investment may differ
from the Adviser's valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair
valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions
(i.e., publicly traded company multiples, growth rate, time to exit), to determine a methodology that will result in a valuation that
the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value
from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and
the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the
investment.
Timing
of Orders
Each
Fund prices purchase, exchange and redemption orders at the net asset value next calculated by the Fund after the Fund’s transfer
agent, authorized agent or designee receives an order in good order for the Fund. Purchase, exchange and redemption orders must be received
prior to the close of business on a business day, as defined by the applicable Fund, to receive that day’s net asset value. Any
applicable sales charges are applied at the time an order is processed.
Currently,
certain financial intermediaries may serve as agents for the Funds
and accept orders on their behalf. Where a financial intermediary serves as agent, the order is priced at the Fund’s net asset value
next calculated after it is accepted by the financial intermediary. In such cases, if requested by a Fund, the financial intermediary
is responsible for providing information with regard to the time that such order for purchase, redemption or exchange was received. Orders
submitted through a financial intermediary that has not received authorization to accept orders on a Fund’s behalf are priced at
the Fund’s net asset value next calculated by the Fund after it receives the order from the financial intermediary and accepts it,
which may not occur on the day submitted to the financial intermediary.
Additional
Information Regarding Deferred Tax Liability (only applicable to the Invesco Steelpath Funds)
In
calculating the Fund’s daily NAV, the Fund will, among other things, account for its deferred tax liability and/or asset balances.
As a result, any deferred tax liability and/or asset is reflected in the Fund’s daily NAV.
The
Fund will accrue a deferred income tax liability balance, at the U.S. federal
corporate income tax rate plus an estimated state and local income tax rate for its future tax liability associated with MLP distributions
considered to be a return of capital, as well as for its future tax liability associated with the capital appreciation of its investments.
The Fund’s current and deferred tax liability, if any, will depend upon the Fund’s net investment gains and losses and realized
and unrealized gains and losses on investments and therefore may vary greatly from year to year depending on the nature of the Fund’s
investments, the performance of those investments and general market conditions. Any deferred tax liability balance will reduce the Fund’s
NAV. Upon the Fund’s sale of an MLP security, the Fund may be liable for previously deferred taxes.
The
Fund will accrue, in accordance with generally accepted accounting principles,
a deferred tax asset balance, which reflects an estimate of the Fund’s future tax benefit associated with net operating losses and
unrealized losses. Any deferred tax asset balance will increase the Fund’s NAV. To the extent the Fund has a deferred tax asset
balance, the Fund will assess, in accordance with generally accepted accounting principles, whether a valuation allowance, which would
offset the value of some or all of the Fund’s deferred tax asset balance, is required. Pursuant to Financial Accounting Standards
Board Accounting Standards Codification 740 (FASB ASC 740), the Fund will assess a valuation allowance to reduce some or all of the deferred
tax asset balance if, based on the weight of all available evidence, both negative and positive, it is more likely than not that some
or all of the deferred tax asset will not be realized. The Fund will use judgment in considering the relative impact of negative and positive
evidence. The weight given to the potential effect of negative and positive evidence will be commensurate with the extent to which such
evidence can be objectively verified. The Fund’s assessment considers, among other matters, the nature, frequency and severity of
current and cumulative losses, the duration of statutory carry forward periods and the associated risk that operating loss and capital
loss carry forwards may be limited or expire unused, and unrealized gains and losses on investments. Consideration is also given to market
cycles, the severity and duration of historical deferred tax assets, the impact of redemptions, and the level of MLP distributions. The
Fund will assess whether a valuation allowance is required to offset some or all of any deferred tax asset in connection with the calculation
of the Fund’s NAV per share each day; however, to the extent the final valuation allowance differs from the estimates the Fund used
in calculating the Fund’s daily NAV, the application of such final valuation allowance could have a material impact on the Fund’s
NAV.
The
Fund’s deferred tax asset and/or liability balances are estimated using
estimates of effective tax rates expected to apply to taxable income in the years such balances are realized. The Fund will rely to some
extent on information provided by MLPs in determining the extent to which distributions received from MLPs constitute a return of capital,
which may not be provided to the Fund on a timely basis, to estimate the Fund’s deferred tax liability and/or asset balances for
purposes of financial statement reporting and determining its NAV. If such information is not
A-20 The
Invesco Funds
received
from such MLPs on a timely basis, the Fund will estimate the extent to which distributions received from MLPs constitute a return of capital
based on average historical tax characterization of distributions made by MLPs. The Fund’s estimates regarding its deferred tax
liability and/or asset balances are made in good faith; however, the daily estimate of the Fund’s deferred tax liability and/or
asset balances used to calculate the Fund’s NAV could vary dramatically from the Fund’s actual tax liability. Actual income
tax expense, if any, will be incurred over many years, depending on if and when investment gains and losses are realized, the then-current
basis of the Fund’s assets and other factors. As a result, the determination of the Fund’s actual tax liability may have a
material impact on the Fund’s NAV. The Fund’s daily NAV calculation will be based on then current estimates and assumptions
regarding the Fund’s deferred tax liability and/or asset balances and any applicable valuation allowance, based on all information
available to the Fund at such time. From time to time, the Fund may modify its estimates or assumptions regarding its deferred tax liability
and/or asset balances and any applicable valuation allowance as new information becomes available. Modifications of the Fund’s estimates
or assumptions regarding its deferred tax liability and/or asset balances and any applicable valuation allowance, changes in generally
accepted accounting principles or related guidance or interpretations thereof, limitations imposed on net operating losses (if any) and
changes in applicable tax law could result in increases or decreases in the Fund’s NAV per share, which could be material.
Taxes
(applicable to all Funds except for the Invesco SteelPath Funds and Invesco Master Loan Fund)
A
Fund intends to qualify each year as a regulated investment company (RIC) and, as such, is not subject to entity-level tax on the income
and gain it distributes to shareholders. If you are a taxable investor, dividends and distributions you receive from a Fund generally
are taxable to you whether you reinvest distributions in additional Fund shares or take them in cash. Every year, you will be sent information
showing the amount of dividends and distributions you received from a Fund during the prior calendar year. In addition, investors in taxable
accounts should be aware of the following basic tax points as supplemented below where relevant:
Fund Tax
Basics
◾
A
Fund earns income generally in the form of dividends or interest on its investments. This income, less expenses incurred in the operation
of a Fund, constitutes the Fund’s net investment income from which dividends may be paid to you. If you are a taxable investor,
distributions of net investment income generally are taxable to you as ordinary income.
◾
Distributions
of net short-term capital gains are taxable to you as ordinary income. A Fund with a high portfolio turnover rate (a measure of how frequently
assets within a Fund are bought and sold) is more likely to generate short-term capital gains than a Fund with a low portfolio turnover
rate.
◾
Distributions
of net long-term capital gains are taxable to you as long-term capital gains no matter how long you have owned your Fund shares.
◾
A
portion of income dividends paid by a Fund to you may be reported as qualified dividend income eligible for taxation by individual shareholders
at long-term capital gain rates, provided certain holding period requirements are met. These reduced rates generally are available for
dividends derived from a Fund’s investment in stocks of domestic corporations and qualified foreign corporations. In the case of
a Fund that invests primarily in debt securities, either none or only a nominal portion of the dividends paid by the Fund will be eligible
for taxation at these reduced rates.
◾
The
use of derivatives by a Fund may cause the Fund to realize higher amounts of ordinary income or short-term capital gain, distributions
from which are taxable to individual shareholders at ordinary income tax rates rather than at the more favorable tax rates for long-term
capital gain.
◾
Distributions
declared to shareholders with a record date in October, November or December—if paid to you by the end of January—are taxable
for federal income tax purposes as if received in December.
◾
Any
long-term or short-term capital gains realized on the sale or redemption of your Fund shares will be subject to federal income tax. For
tax
purposes an exchange of your shares for shares of another Fund is the same as a sale. An exchange occurs when the purchase of shares of
a Fund is made using the proceeds from a redemption of shares of another Fund and is effectuated on the same day as the redemption. Your
gain or loss is calculated by subtracting from the gross proceeds your cost basis. Gross proceeds and, for shares acquired on or after
January 1, 2012 and disposed of after that date, cost basis will be reported to you and the Internal Revenue Service (IRS). Cost
basis will be calculated using the Fund’s default method of average cost, unless you instruct the Fund to use a different calculation
method. As a service to you, the Fund will continue to provide to you (but not the IRS) cost basis information for shares acquired before
2012, when available, using the average cost method. Shareholders should carefully review the cost basis information provided by a Fund
and make any additional basis, holding period or other adjustments that are required when reporting these amounts on their federal income
tax returns. If you hold your Fund shares through a broker (or other nominee), please contact that broker (nominee) with respect to reporting
of cost basis and available elections for your account. For more information about the cost basis methods offered by Invesco, please refer
to the Tax Center located under the Account Access & Forms menu of our website at www.Invesco.com/us.
◾
The
conversion of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes
and no gain or loss will be reported on the transaction. This is true whether the conversion occurs automatically pursuant to the terms
of the class or is initiated by the shareholder.
◾
At
the time you purchase your Fund shares, the Fund’s net asset value may reflect undistributed income or undistributed capital gains.
A subsequent distribution to you of such amounts, although constituting a return of your investment, would be taxable. Buying shares in
a Fund just before it declares an income dividend or capital gains distribution is sometimes known as “buying a dividend.”
In addition, a Fund’s net asset value may, at any time, reflect net unrealized appreciation, which may result in future taxable
distributions to you.
◾
By
law, if you do not provide a Fund with your proper taxpayer identification number and certain required certifications, you may be subject
to backup withholding on any distributions of income, capital gains, or proceeds from the sale of your shares. A Fund also must withhold
if the IRS instructs it to do so. When withholding is required, the amount will be 24% of any distributions or proceeds paid.
◾
An
additional 3.8% Medicare tax is imposed on certain net investment income (including ordinary dividends and capital gain distributions
received from a Fund and net gains from redemptions or other taxable dispositions of Fund shares) of U.S. individuals, estates and trusts
to the extent that such person’s “modified adjusted gross income” (in the case of an individual) or “adjusted
gross income” (in the case of an estate or trust) exceeds a threshold amount. This Medicare tax, if applicable, is reported by you
on, and paid with, your federal income tax return.
◾
You
will not be required to include the portion of dividends paid by a Fund derived from interest on U.S. government obligations in your
gross income for purposes of personal and, in some cases, corporate income taxes in many state and local tax jurisdictions. The percentage
of dividends that constitutes dividends derived from interest on federal obligations will be determined annually. This percentage may
differ from the actual percentage of interest received by the Fund on federal obligations for the particular days on which you hold shares.
◾
Fund
distributions and gains from sale or exchange of your Fund shares generally are subject to state and local income taxes.
◾
If
a Fund qualifies to pass through to you the tax benefits from foreign taxes it pays on its investments, and elects to do so, then any
foreign taxes it pays on these investments may be passed through to you. You will then be required to include your pro-rata share of these
taxes in gross income, even though not actually received by you, and will be entitled either to deduct your share of these taxes in computing
your taxable income, or to claim a foreign tax credit for these taxes against your U.S. federal income tax.
A-21 The
Invesco Funds
◾
Foreign
investors should be aware that U.S. withholding, special certification requirements to avoid U.S. backup withholding and claim
any treaty benefits, and estate taxes may apply to an investment in a Fund.
◾
Under
the Foreign Account Tax Compliance Act (FATCA), a Fund will be required to withhold a 30% tax on income dividends made by the Fund to
certain foreign entities, referred to as foreign financial institutions or non-financial foreign entities, that fail to comply (or be
deemed compliant) with extensive reporting and withholding requirements designed to inform the U.S. Department of the Treasury of U.S.-owned
foreign investment accounts. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide otherwise (which
is not expected). A Fund may disclose the information that it receives from its shareholders to the IRS, non-U.S. taxing authorities or
other parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that is a shareholder
of a Fund fails to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.
◾
If
a Fund invests in an underlying fund taxed as a RIC, please see any relevant section below for more information regarding the Fund’s
investment in such underlying fund.
The
above discussion concerning the taxability of Fund dividends and distributions and of redemptions and exchanges of Fund shares is inapplicable
to investors holding shares through a tax-advantaged arrangement, such as Retirement and Benefit Plans or 529 college savings plans. Such
investors should refer to the applicable account documents/program description for that arrangement for more information regarding the
tax consequences of holding and redeeming Fund shares.
Funds
Investing in Municipal Securities
◾
You
will not be required to include the “exempt-interest” portion of dividends paid by the Fund in either your gross income for
federal income tax purposes or your net investment income subject to the additional 3.8% Medicare tax. You will be required to report
the receipt of exempt-interest dividends and other tax-exempt interest on your federal income tax returns. The percentage of dividends
that constitutes exempt-interest dividends will be determined annually. This percentage may differ from the actual percentage of exempt
interest received by the Fund for the particular days in which you hold shares.
◾
A
Fund may invest in municipal securities the interest on which constitutes an item of tax preference and could give rise to a federal alternative
minimum tax liability for noncorporate shareholders, unless such municipal securities were issued in 2009 or 2010.
◾
Exempt-interest
dividends from interest earned on municipal securities of a state, or its political subdivisions, generally are exempt from that state’s
personal income tax. Most states, however, do not grant tax-free treatment to interest from municipal securities of other states.
◾
A
Fund may invest a portion of its assets in securities that pay income that is not tax-exempt. To the extent that dividends paid by a Fund
are derived from taxable investments or realized capital gains, they will be taxable as ordinary income or long-term capital gains.
◾
A
Fund may distribute to you any market discount and net short-term capital gains from the sale of its portfolio securities. If you are
a taxable investor, Fund distributions from this income are taxable to you as ordinary income, and generally will neither qualify for
the dividends-received deduction in the case of corporate shareholders nor as qualified dividend income subject to reduced rates of taxation
in the case of noncorporate shareholders.
◾
Exempt-interest
dividends from a Fund are taken into account when determining the taxable portion of your social security or railroad retirement benefits,
may be subject to state and local income taxes, may affect the deductibility of interest on certain indebtedness, and may have other collateral
federal income tax consequences for you.
◾
There
are risks that: (a) a security issued as tax-exempt may be reclassified by the IRS or a state tax authority as taxable and/or (b) future
legislative,
administrative or court actions could adversely impact the qualification of income from a tax-exempt security as tax-free. Such reclassifications
or actions could cause interest from a security to become taxable, possibly retroactively, subjecting you to increased tax liability.
In addition, such reclassifications or actions could cause the value of a security, and therefore, the value of the Fund’s shares,
to decline.
Money
Market Funds
◾
A
Fund does not anticipate realizing any long-term capital gains.
◾
If
a Fund expects to maintain a stable net asset value of $1.00 per share, investors should not have any gain or loss on sale or exchange
of Fund shares (unless the investor incurs a liquidity fee on such sale or exchange). See “Liquidity Fees and Redemption Gates.”
◾
There
is some degree of uncertainty with respect to the tax treatment of liquidity fees received by a Fund, and such tax treatment may be the
subject of future IRS guidance. If a Fund receives liquidity fees, it will consider the appropriate tax treatment of such fees to the
Fund at such time.
◾
Unless
you choose to adopt a simplified “NAV method” of accounting (described below), any capital gain or loss on the sale or exchange
of Fund shares (as noted above) generally will be treated either as short-term if you held your Fund shares for one year or less, or long-term
if you held your Fund shares longer. If you elect to adopt the NAV method of accounting, rather than computing gain or loss on every taxable
disposition of Fund shares as described above, you would determine your gain or loss based on the change in the aggregate value of your
Fund shares during a computation period (such as your taxable year), reduced by your net investment (purchases minus sales) in those shares
during that period. Under the NAV method, any resulting net capital gain or loss would be treated as short-term capital gain or loss.
Funds
Investing in Real Estate Securities
◾
Because
of “noncash” expenses such as property depreciation, the cash flow of a REIT that owns properties will exceed its taxable
income. The REIT, and in turn a Fund, may distribute this excess cash to shareholders. Such a distribution is classified as a return of
capital. Return of capital distributions generally are not taxable to you. Your cost basis in your Fund shares will be decreased by the
amount of any return of capital. Any return of capital distributions in excess of your cost basis will be treated as capital gains.
◾
Dividends
paid to shareholders from the Funds’ investments in U.S. REITs generally will not qualify for taxation at long-term capital gain
rates applicable to qualified dividend income.
◾
The
Fund may derive “excess inclusion income” from certain equity interests in mortgage pooling vehicles either directly or through
an investment in a U.S. REIT. Please see the SAI for a discussion of the risks and special tax consequences to shareholders in the event
the Fund realizes excess inclusion income in excess of certain threshold amounts.
◾
Under
the Tax Cuts and Jobs Act, “qualified REIT dividends” (i.e., ordinary REIT dividends other than capital gain dividends and
portions of REIT dividends designated as qualified dividend income) are treated as eligible for a 20% deduction by noncorporate taxpayers.
The Fund may choose to report the special character of “qualified REIT dividends” to a shareholder, provided both the Fund
and a shareholder meet certain holding period requirements with respect to their shares.
◾
The
Fund’s foreign shareholders should see the SAI for a discussion of the risks and special tax consequences to them from a sale of
a U.S. real property interest by a REIT in which the Fund invests.
Funds
Investing in Partnerships
◾
Taxes,
penalties, and interest associated with an audit of a partnership
are generally required to be assessed and collected at the partnership level. Therefore, an adverse federal income tax audit of a partnership
that a Fund invests in (including MLPs taxed as partnerships) could result in the Fund being required to pay federal income tax. A Fund
may have little input in any audit asserted against a partnership and may be contractually or legally obligated to make payments in regard
to deficiencies asserted without the ability to put forward an independent defense. Accordingly,
A-22 The
Invesco Funds
even
if a partnership in which the Fund invests were to remain classified as a partnership (instead of as a corporation), it could be required
to pay additional taxes, interest and penalties as a result of an audit adjustment, and the Fund, as a direct or indirect partner of such
partnership, could be required to bear the economic burden of those taxes, interest and penalties, which would reduce the value of Fund
shares.
◾
Under
the Tax Cuts and Jobs Act “qualified publicly traded partnership income” is treated as eligible for a 20% deduction by noncorporate
taxpayers. The legislation does not contain a provision permitting a RIC, such as a Fund, to pass the special character of this income
through to its shareholders. It is uncertain whether a future technical corrections bill or regulations issued by the IRS will address
this issue to enable a Fund to pass through the special character of “qualified publicly traded partnership income” to its
shareholders.
◾
Some
amounts received by a Fund from the MLPs in which it invests likely will be treated as returns of capital to such Fund because of accelerated
deductions available to the MLPs. The receipt of returns of capital from the MLPs in which a Fund invests could cause some or all of the
Fund’s distributions to be classified as a return of capital. Return of capital distributions generally are not taxable to you.
Your cost basis in your Fund shares will be decreased by the amount of any return of capital. Any return of capital distributions in excess
of your cost basis will be treated as capital gains.
Funds
Investing in Commodities
◾
The
Funds’ strategies of investing through their respective Subsidiary in derivatives and other financially linked instruments whose
performance is expected to correspond to the commodity markets may cause the Funds to recognize more ordinary income and short-term capital
gains taxable as ordinary income than would be the case if the Funds invested directly in commodities.
◾
The
Funds must meet certain requirements under the Code for favorable tax treatment as a RIC, including asset diversification and income requirements.
The IRS has issued a revenue ruling which holds that income derived from commodity-linked swaps is not qualifying income for purposes
of the Income Requirement. In a subsequent revenue ruling, as well as in a number of follow-on private letter rulings (upon which only
the fund that received the private letter ruling may rely), the IRS provides that income from certain alternative investments which create
commodity exposure, such as certain commodity-linked or structured notes or a corporate subsidiary that invests in commodities, may be
considered qualifying income under the Code. However, the portion of such rulings relating to the treatment of a corporation as a regulated
investment company that require a determination of whether a financial instrument or position is a security under section 2(a)(36) of
the 1940 Act was revoked because of changes in the IRS’s position.
(A financial instrument or position that constitutes a security
under section 2(a)(36) of the 1940 Act generates qualifying income for a corporation taxed as a regulated investment company.) The Funds
intend to treat the income each derives from commodity-linked notes as qualifying income based on an opinion from counsel confirming that
income from such investments should be qualifying income because such commodity-linked notes constitute securities under section 2(a)(36)
of the 1940 Act. Each Subsidiary will be classified for federal income tax purposes as a controlled foreign corporation (CFC) with respect
to the Fund. As such, the Fund will be required to include in its gross income each year amounts earned by the Subsidiary during that
year (“Subpart F” income), whether or not such earnings are distributed by the Subsidiary to the Fund (deemed inclusions).
Treasury Regulations also permit the Fund to treat such deemed inclusions of “Subpart F” income from the Subsidiary as qualifying
income to the Fund, even if the Subsidiary does not make a distribution of such income. Consequently, the Fund and the Subsidiary reserve
the right to rely on deemed inclusions being treated as qualifying income to the Fund consistent with recently released Treasury Regulations.
If, contrary to the opinion of counsel or other guidance issued by the IRS, the IRS were to determine that income from direct investment
in commodity-linked notes is non-qualifying, a Fund might fail to satisfy
the
income requirement. In lieu of disqualification, the Funds are permitted to pay a tax for certain failures to satisfy the asset diversification
or income requirements, which, in general, are limited to those due to reasonable cause and not willful neglect. The Funds intend to limit
their investments in their respective Subsidiary to no more than 25% of the value of each Fund’s total assets in order to satisfy
the asset diversification requirement.
Funds
Investing in Foreign Currencies
◾
The
Funds may realize gains from the sale or other disposition of foreign currencies (including but not limited to gains from options, futures
or forward contracts) derived from investing in securities or foreign currencies. The U.S. Treasury Department is authorized to issue
regulations on whether the realization of such foreign currency gains is qualified income for the Funds. If such regulations are issued,
each Fund may not qualify as a RIC and/or the Fund may change its investment policy. As of the date of this prospectus, no regulations
have been issued pursuant to this authorization. It is possible, however, that such regulations may be issued in the future. Additionally,
the IRS has not issued any guidance on how to apply the asset diversification test to such foreign currency positions. Thus, the IRS’
determination as to how to treat such foreign currency positions for purposes of satisfying the asset diversification test might differ
from that of each Fund resulting in the Fund’s failure to qualify as a RIC. In lieu of disqualification, each Fund is permitted
to pay a tax for certain failures to satisfy the asset diversification or income requirements, which, in general, are limited to those
due to reasonable cause and not willful neglect.
◾
The
Funds’ transactions in foreign currencies may give rise to ordinary income or loss to the extent such income or loss results from
fluctuations in the value of the foreign currency concerned. This treatment could increase or decrease the Funds' ordinary income distributions
to you, and may cause some or all of the Funds' previously distributed income to be classified as a return of capital. Return of capital
distributions generally are not taxable to you. Your cost basis in your Fund shares will be decreased by the amount of any return of capital.
Any return of capital distributions in excess of your cost basis will be treated as capital gains.
This
discussion of “Taxes” is for general information only and not
tax advice. All investors should consult their own tax advisers as to the federal, state, local and foreign tax provisions applicable
to them.
Taxes
(applicable to the Invesco SteelPath Funds
only)
Although
the Code generally provides that a RIC does not pay an entity-level income tax, provided that it distributes all or substantially all
of its income, the Fund is not and does not anticipate becoming eligible to elect to be treated as a RIC because most or substantially
all of the Fund’s investments will consist of investments in MLP securities. The RIC tax rules therefore have no application to
the Fund or to its shareholders. As a result, the Fund is treated as a regular corporation, or “C” corporation, for U.S. federal
income tax purposes, and generally is subject to U.S. federal income tax on its taxable income at the corporate income tax rate. In addition,
as a regular corporation, the Fund will be subject to state and local taxes by reason of its tax status and its investments in MLPs. Therefore,
the Fund may have to pay federal, multiple state, and local taxes, which would reduce the Fund’s cash available to make distributions
to shareholders. An estimate for federal, state, and local tax liabilities will reduce the fund’s net asset value. The extent to
which the Fund is required to pay U.S. federal, state or local corporate income, franchise or other corporate taxes could materially reduce
the Fund’s cash available to make distributions to shareholders. In addition, investors in taxable accounts should be aware of the
following basic tax points as supplemented below where relevant:
Fund
Tax Basics
◾
The
Fund intends to invest a significant portion of its assets in MLPs, which are generally treated as partnerships for U.S. federal income
tax purposes. To the extent that the Fund invests in equity securities of an MLP, the Fund will be a partner in such MLP. Accordingly,
the Fund will be
A-23 The
Invesco Funds
required
to take into account the Fund’s allocable share of the income, gains, losses, deductions, and credits recognized by each such MLP,
regardless of whether the MLP distributes cash to the Fund. MLP distributions to partners, such as the Fund, are not taxable unless the
cash amount (or in certain cases, the fair market value of marketable securities) distributed exceeds the Fund’s basis in its MLP
interest. The Fund expects that the cash distributions it will receive with respect to its investments in equity securities of MLPs will
exceed the net taxable income allocated to the Fund from such MLPs because of tax deductions such as depreciation, amortization and depletion
that will be allocated to the Fund from the MLPs. No assurance, however, can be given in this regard. If this expectation is not realized,
the Fund will have a larger corporate income tax expense than expected, which will result in less cash available for distribution to shareholders.
◾
The
Fund will recognize gain or loss on the sale, exchange or other taxable disposition of its portfolio assets, including equity securities
of MLPs, equal to the difference between the amount realized by the Fund on the sale, exchange or other taxable disposition and the Fund’s
adjusted tax basis in such assets. Any such gain will be subject to U.S. federal income tax at the corporate income tax rate, regardless
of how long the Fund has held such assets since preferential capital gain rates do not apply to regular corporations such as the Fund.
The amount realized by the Fund in any case generally will be the amount paid by the purchaser of the assets plus, in the case of MLP
equity securities, the Fund’s allocable share, if any, of the MLP’s debt that will be allocated to the purchaser as a result
of the sale, exchange or other taxable disposition. The Fund’s tax basis in its equity securities in an MLP generally is equal to
the amount the Fund paid for the equity securities, (i) increased by the Fund’s allocable share of the MLP’s net taxable income
and certain MLP debt, if any, and (ii) decreased by the Fund’s allocable share of the MLP’s net losses and any distributions
received by the Fund from the MLP. Although any distribution by an MLP to the Fund in excess of the Fund’s allocable share of such
MLP’s net taxable income may create a temporary economic benefit to the Fund, net of a deferred tax liability, such distribution
will decrease the Fund’s tax basis in its MLP investment and will therefore increase the amount of gain (or decrease the amount
of loss) that will be recognized on the sale of an equity security in the MLP by the Fund. To the extent that the Fund has a net capital
loss in any year, the net capital loss can be carried back three taxable years and forward five taxable years to reduce the Fund’s
capital gains in such years. In the event a capital loss carryover cannot be utilized in the carryover periods, the Fund’s federal
income tax liability may be higher than expected, which will result in less cash available to distribute to shareholders.
◾
Distributions
by the Fund of cash or property in respect of the shares (other than certain distributions in redemption of shares) will be treated as
dividends for U.S. federal income tax purposes to the extent paid from the Fund’s current or accumulated earnings and profits (as
determined under U.S. federal income tax principles). Generally, the Fund’s earnings and profits are computed based upon the Fund’s
taxable income (loss), with certain specified adjustments. Any such dividend likely will be eligible for the dividends-received deduction
if received by an otherwise qualifying corporate U.S. shareholder that meets certain holding period and other requirements for the dividends-received
deduction. Dividends paid by the Fund to certain non-corporate U.S. shareholders (including individuals), generally are eligible for U.S.
federal income taxation at the rates generally applicable to long-term capital gains for individuals provided that the U.S. shareholder
receiving the dividend satisfies applicable holding period and other requirements. Otherwise, dividends paid by the Fund to non-corporate
U.S. Shareholders (including individuals) will be taxable at ordinary income rates.
◾
If
the amount of a Fund distribution exceeds the Fund’s current and accumulated earnings and profits, such excess will be treated first
as a tax-deferred return of capital to the extent of, and in reduction of, a shareholder’s tax basis in the shares, and thereafter
as capital gain to the extent the shareholder held the shares as a capital asset. Any such capital gain will be long-term capital gain
if such shareholder has held the applicable shares for more than one year. The portion of the distribution
received
by a shareholder from the Fund that is treated as a return of capital will decrease the shareholder’s tax basis in his or her Fund
shares (but not below zero), which will result in an increase in the amount of gain (or decrease in the amount of loss) that will be recognized
by the shareholder for tax purposes on the later sale of such Fund shares.
◾
The
Fund anticipates that the cash distributions it will receive with respect to its investments in equity securities of MLPs and which it
will distribute to its shareholders will exceed the Fund’s current and accumulated earnings and profits. Accordingly, the Fund expects
that only a part of its distributions to shareholders with respect to the shares will be treated as dividends for U.S. federal income
tax purposes. No assurance, however, can be given in this regard.
◾
Special
rules may apply to the calculation of the Fund’s earnings and profits. For example, the Fund’s earnings and profits will be
calculated using the straight-line depreciation method rather than the accelerated depreciation method. This difference in treatment may,
for example, result in the Fund’s earnings and profits being higher than the Fund’s taxable income or loss in a particular
year if the MLPs in which the Fund invests calculate their income using accelerated depreciation. Because of these special earnings profits
rules, the Fund may make distributions in a particular year out of earnings and profits (treated as dividends) in excess of the amount
of the Fund’s taxable income or loss for such year, which means that a larger percentage of the Fund ’s distributions could
be taxable to shareholders as ordinary income instead of tax-deferred return of capital or capital gain.
◾
Shareholders
that receive distributions in shares rather than in cash will be treated for U.S. federal income tax purposes as having (i) received a
cash distribution equal to the fair market value of the shares received and (ii) reinvested such amount in shares.
◾
A
redemption of shares will be treated as a sale or exchange of such shares, provided the redemption is not essentially equivalent to a
dividend, is a substantially disproportionate redemption, is a complete redemption of a shareholder’s entire interest in the Fund,
or is in partial liquidation of such Fund. Redemptions that do not qualify for sale or exchange treatment will be treated as distributions
as described above. Upon a redemption treated as a sale or exchange under these rules, a shareholder generally will recognize capital
gain or loss equal to the difference between the adjusted tax basis of his or her shares and the amount received when they are sold.
◾
If
the Fund is required to sell portfolio securities to meet redemption requests, the Fund may recognize income and gains for U.S. federal,
state and local income and other tax purposes, which may result in the imposition of corporate income or other taxes on the Fund and may
increase the Fund’s current and accumulated earnings and profits, which will result in a greater portion of distributions to Fund
shareholders being treated as dividends. Any long-term or short-term capital gains realized on sale or redemption of your Fund shares
will be subject to federal income tax. For tax purposes an exchange of your shares for shares of another Fund is the same as a sale. An
exchange occurs when the purchase of shares of a Fund is made using the proceeds from a redemption of shares of another Fund and is effectuated
on the same day as the redemption. Your gain or loss is calculated by subtracting from the gross proceeds your cost basis. Gross proceeds
and, for shares acquired on or after January 1, 2012 and disposed of after that date, cost basis will be reported to you and the IRS.
Cost basis will be calculated using the Fund’s default method of first-in, first-out (FIFO), unless you instruct the Fund to use
a different calculation method. Shareholders should carefully review the cost basis information provided by a Fund and make any additional
basis, holding period or other adjustments that are required when reporting these amounts on their federal income tax returns. If you
hold your Fund shares through a broker (or other nominee), please contact that broker (nominee) with respect to reporting of cost basis
and available elections for your account. For more information about the cost basis methods offered by Invesco, please refer to the Tax
Center located under the Account Access & Forms menu of our website at www.invesco.com/us.
A-24 The
Invesco Funds
◾
The
conversion of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes
and no gain or loss will be reported on the transaction. This is true whether the conversion occurs automatically pursuant to the terms
of the class or is initiated by the shareholder.
◾
At
the time you purchase your Fund shares, the Fund’s net asset value may reflect undistributed income. A subsequent distribution to
you of such amounts, although constituting a return of your investment, would be taxable. Buying shares in a Fund just before it declares
an income dividend is sometimes known as “buying a dividend.” In addition, a Fund’s net asset value may, at any time,
reflect net unrealized appreciation, which may result in future taxable distributions to you.
◾
By
law, if you do not provide a Fund with your proper taxpayer identification number and certain required certifications, you may be subject
to backup withholding on any distributions of income, capital gains, or proceeds from the sale of your shares. A Fund also must withhold
if the IRS instructs it to do so. When withholding is required, the amount will be 24% of any distributions or proceeds paid.
◾
A
3.8% Medicare tax is imposed on certain net investment income (including ordinary dividends received from a Fund and net gains from redemptions
or other taxable dispositions of Fund shares) of U.S. individuals, estates and trusts to the extent that such person’s “modified
adjusted gross income” (in the case of an individual) or “adjusted gross income” (in the case of an estate or trust)
exceeds a threshold amount. This Medicare tax, if applicable, is reported by you on, and paid with, your federal income tax return.
◾
Fund
distributions and gains from sale or exchange of your Fund shares generally are subject to state and local income taxes.
◾
Foreign
investors should be aware that U.S. withholding, special certification requirements to avoid U.S. backup withholding and claim any treaty
benefits, and estate taxes may apply to an investment in a Fund.
◾
Under
the Foreign Account Tax Compliance Act (FATCA), a Fund will be required to withhold a 30% tax on income dividends made by the Fund to
certain foreign entities, referred to as foreign financial institutions or non-financial foreign entities, that fail to comply (or be
deemed compliant) with extensive reporting and withholding requirements designed to inform the U.S. Department of the Treasury of U.S.-owned
foreign investment accounts. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide otherwise (which
is not expected). A Fund may disclose the information that it receives from its shareholders to the IRS, non-U.S. taxing authorities or
other parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that is a shareholder
of a Fund fails to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.
◾
Taxes,
penalties, and interest associated with an audit of a partnership are generally required to be assessed and collected at the partnership
level. Therefore, an adverse federal income tax audit of an MLP taxed as a partnership that the Fund invests in could result in the Fund
being required to pay federal income tax. The Fund may have little input in any audit asserted against an MLP and may be contractually
or legally obligated to make payments in regard to deficiencies asserted without the ability to put forward an independent defense. Accordingly,
even if an MLP in which the Fund invests were to remain classified as a partnership, it could be required to pay additional taxes, interest
and penalties as a result of an audit adjustment, and the Fund, as a direct or indirect partner of such MLP, could be required to bear
the economic burden of those taxes, interest and penalties, which would reduce the value of Fund shares.
◾
Under
the Tax Cuts and Jobs Act certain “qualified publicly traded partnership income” (e.g., certain income from certain of the
MLPs in which the Fund invests) is treated as eligible for a 20% deduction by noncorporate taxpayers. The Tax Cuts and Jobs Act does not
contain a provision permitting an entity, such as the Fund, to benefit from this
deduction
(since the Fund is taxed as a “C” corporation) or pass the special character of this income through to its shareholders. Qualified
publicly traded partnership income allocated to a noncorporate investor investing directly in an MLP might, however, be eligible for the
deduction.
The
above discussion concerning the taxability of Fund dividends and distributions
and of redemptions and exchanges of Fund shares is inapplicable to investors holding shares through a tax-advantaged arrangement, such
as Retirement and Benefit Plans or 529 college savings plans. Such investors should refer to the applicable account documents/program
description for that arrangement for more information regarding the tax consequences of holding and redeeming Fund shares.
This
discussion of “Taxes” is for general information only and not
tax advice. All investors should consult their own tax advisers as to the federal, state, local and foreign tax provisions applicable
to them.
Federal
Income Taxes (applicable to Invesco Master Loan Fund only)
United
States Taxes
The
Fund is classified as a partnership and will not be a regulated investment company for US federal income tax purposes. As a partnership,
the Fund is not a taxable entity for federal income tax purposes and, subject to the application of the partnership audit rules described
below, incurs no federal income tax liability. Each Investor is required to take into account its proportionate share of items of income,
gain, loss and deduction of the partnership in computing its federal income tax liability regardless of whether or not cash or property
distributions are then made by the Fund. Following the close of the Fund’s taxable year end, Investors will receive a tax statement
entitled Schedule K-1 Partner’s Share of Income, Deductions, Credits, etc., which reports the tax status of their distributive share
of the Fund’s items for the previous year.
Taxation
of Distributions, Sales and Exchanges
In
general, distributions of money by the Fund to an Investor will represent a non-taxable return of capital up to the amount of an Investor’s
adjusted tax basis in its shares. An Investor will recognize gain to the extent that any money distributed by the Fund exceeds the Investor’s
adjusted tax basis in its shares. In the case of a non-taxable return of capital by the Fund to an Investor, other than in liquidation
of the Investor’s interest in the Fund, the tax basis of his shares will be reduced (but not below zero) and will result in an increase
in the amount of gain (or decrease in the amount of loss) that will be recognized by the Investor on the later sale of its shares. A distribution
in partial or complete redemption of your shares in the Fund is taxable as a sale or exchange only to the extent the amount of money received
exceeds the tax basis of your entire interest in the Fund. Any loss may be recognized only if you redeem your entire interest in the Fund
for money.
When
you sell shares of the Fund, you may have a capital gain or loss.
Derivatives
The
use of derivatives by the Fund may cause the Fund to realize higher amounts of ordinary income or short-term capital gain, allocations
of which are taxable to individual Investors at ordinary income tax rates rather than at the more favorable tax rates for long-term capital
gain. Changes in government regulation of derivative instruments could affect the character, timing and amount of the Fund’s taxable
income or gains, and may limit the Fund from using certain types of derivative instruments as part of its investment strategy.
Risk
of Audit of the Fund
Under
the partnership audit rules, which are generally applicable to tax years beginning after December 31, 2017, the Internal Revenue Service
(“IRS”) may collect any taxes resulting from audit adjustments to the Fund’s income tax returns (including any applicable
penalties and interest) directly from the Fund. In that case, current Investors would bear some or all of the
A-25 The
Invesco Funds
tax liability
resulting from such audit adjustment, even if they did not own interests in the Fund during the tax year under audit. The Fund may have
the ability to shift any such tax liability to the Investors in accordance with their interests in the Fund during the year under audit,
but there can be no assurance that the Fund will be able to do so under all circumstances. For taxable years not subject to the new audit
rules, items of Fund income, gain, loss, deduction and credit will be determined at the Fund level in a unified audit. NO REPRESENTATION
OR WARRANTY OF ANY KIND IS MADE WITH RESPECT TO THE TAXATION, DEDUCTIBILITY OR CAPITALIZATION OF ANY ITEM BY THE FUND OR INVESTOR. In
addition, the “partnership representative” (tax matters partner, for taxable years before the partnership audit rules become
effective) will have the sole authority to act on the Fund’s behalf for purposes of, among other things, federal income tax audits
and judicial review of administrative adjustments by the IRS, and any such actions will be binding on the Fund and all of the Investors.
Unrelated
Business Taxable Income
An
allocable share of a tax-exempt Investor’s income will be “unrelated business taxable income” (“UBTI”) to
the extent that the Fund borrows money to acquire property or invests in assets that produce UBTI.
Medicare
Tax
An
additional 3.8% Medicare tax is imposed on certain net investment income of US individuals, estates and trusts to the extent that such
person’s “modified adjusted gross income” (in the case of an individual) or “adjusted gross income” (in
the case of an estate or trust) exceeds a threshold amount. “Net investment income,” for these purposes, means investment
income (including (i) net gains from the taxable disposition of shares of a Fund to the extent the net gain would be taken into account
by the Investor if the Fund sold all of its property for fair market value immediately before the disposition of the shares of the Fund,
and (ii) an allocable share of a Fund’s interest, dividends and net gains) reduced by the deductions properly allocable to such
income. This Medicare tax, if applicable, is reported by Investors on, and paid with, the Investor’s federal income tax return.
State,
Local and Non-US Tax Matters
An
Investor’s distributive share of the Fund’s income, and gains from the sale or exchange of an Investor’s Fund shares,
generally are subject to state and local taxes in the jurisdiction in which the Investor resides or is otherwise subject to tax.
Prospective
investors should consider their individual state and local tax consequences
of an investment in the Fund.
Tax
Considerations for Non-US Investors
If,
as anticipated, the Fund is not deemed to be engaged in a US trade or business, the Fund generally will be required to withhold tax on
the distributive share of certain items of gross income from US sources allocated to non-US Investors at a 30% (or lower treaty) rate.
Certain categories of income, including portfolio interest, are not subject to US withholding tax. Capital gains (other than gain realized
on disposition of US real property interests) are not subject to US withholding tax unless the non-US Investor is a nonresident alien
individual present in the United States for a period or periods aggregating 183 days or more during the taxable year. If, on the other
hand, the Fund derives income which is effectively connected with a US trade or business carried on by the Fund, this 30% tax will not
apply to such effectively connected income of the Fund, and the Fund generally will be required to withhold tax from the amount of effectively
connected income allocable to non-US Investors at the highest rate of tax applicable to US residents, and non-US Investors generally would
be required to file US income tax returns and be subject to US income tax on a net basis. Gain or loss on a sale of shares will be treated
as effectively connected with a U.S. trade or business to the extent that a foreign corporation or foreign individual that owns the shares
(whether directly or indirectly through other partnerships) would have had effectively connected gain or loss had the partnership sold
its underlying assets and applicable US
withholding
tax will apply. Non-US Investors may be subject to US estate tax and are subject to special US tax certification requirements.
Other
Reporting and Withholding Requirements
Under
the Foreign Account Tax Compliance Act (“FATCA”), the Fund will be required to withhold at a 30% rate on certain US source
payments (such as interest and dividends) to certain Investors if the Investor fails to provide the Fund with the information which identifies
its direct and indirect US ownership. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide otherwise (which
is not expected). A Fund may disclose the information that it receives from an Investor to the IRS, non-US taxing authorities or other
parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that is an Investor fails
to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.
For
a more complete discussion of the federal income tax consequences
of investing in the Fund, see the Statement of Additional Information.
This
discussion of “Federal Income Taxes” is not intended or written
to be used as tax advice. Because everyone’s tax situation is unique, Investors should consult their tax professional about federal,
state, local and foreign tax consequences before making an investment in the Fund.
Payments
to Financial Intermediaries – All Share Classes except Class R6 shares
The
financial adviser or intermediary through which you purchase your shares may receive all or a portion of the sales charges and distribution
fees discussed above. In addition to those payments, Invesco Distributors and other Invesco Affiliates, may make additional cash payments
to financial intermediaries in connection with the promotion and sale of shares of the Funds. These additional cash payments may include
cash payments and other payments for certain marketing and support services. Invesco Affiliates make these payments from their own resources,
from Invesco Distributors’ retention of initial sales charges and from payments to Invesco Distributors made by the Funds under
their 12b-1 plans. In the context of this prospectus, “financial intermediaries” include any broker, dealer, bank (including
bank trust departments), registered investment adviser, financial planner, retirement plan administrator, insurance company and any other
financial intermediary having a selling, administration or similar agreement with Invesco Affiliates.
The
benefits Invesco Affiliates receive when they make these payments include,
among other things, placing the Funds on the financial intermediary’s fund sales system, and access (in some cases on a preferential
basis over other competitors) to individual members of the financial intermediary’s sales force or to the financial intermediary’s
management. These payments are sometimes referred to as “shelf space” payments because the payments compensate the financial
intermediary for including the Funds in its fund sales system (on its “sales shelf”). Invesco Affiliates compensate financial
intermediaries differently depending typically on the level and/or type of considerations provided by the financial intermediary. The
payments Invesco Affiliates make may be calculated based on sales of shares of the Funds (Sales-Based Payments), in which case the total
amount of such payments shall not exceed 0.25% (0.10% for Class R5 shares) of the public offering price of all shares sold by the financial
intermediary during the particular period. Payments may also be calculated based on the average daily net assets of the applicable Funds
attributable to that particular financial intermediary (Asset-Based Payments), in which case the total amount of such cash payments shall
not exceed 0.25% per annum of those assets during a defined period. Sales-Based Payments primarily create incentives to make new sales
of shares of the Funds and Asset-Based Payments primarily create incentives to retain previously sold shares of the Funds in investor
accounts. Invesco Affiliates
A-26 The
Invesco Funds
may pay a financial
intermediary either or both Sales-Based Payments and Asset-Based Payments.
Invesco
Affiliates are motivated to make these payments as they promote
the sale of Fund shares and the retention of those investments by clients of the financial intermediaries. To the extent financial intermediaries
sell more shares of the Funds or retain shares of the Funds in their clients’ accounts, Invesco Affiliates benefit from the incremental
management and other fees paid to Invesco Affiliates by the Funds with respect to those assets.
The
Funds’ transfer agent may make payments to certain financial intermediaries
for certain administrative services, including record keeping and sub-accounting of shareholder accounts pursuant to a sub-transfer agency,
omnibus account service or sub-accounting agreement. All fees payable by Invesco Affiliates under this category of services are charged
back to the Funds, subject to certain limitations approved by the Board.
You
can find further details in the Fund’s SAI about these payments and the
services provided by financial intermediaries. In certain cases these payments could be significant to the financial intermediaries. Your
financial adviser may charge you additional fees or commissions other than those disclosed in this prospectus. You can ask your financial
adviser about any payments it receives from Invesco Affiliates or the Funds, as well as about fees and/or commissions it charges.
Important
Notice Regarding Delivery of Security Holder Documents
To
reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address
(Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not
want the mailing of these documents to be combined with those for other members of your household, please contact the Funds’ transfer
agent at 800-959-4246 or contact your financial institution. The Funds’ transfer agent will begin sending you individual copies
for each account within thirty days after receiving your request.
A-27 The
Invesco Funds
Obtaining Additional Information
More information
may be obtained free of charge upon request. The SAI, a current version of which is on file with the SEC, contains more details about
the Fund and is incorporated by reference into this prospectus (is legally a part of this prospectus). Annual and semi-annual reports
to shareholders contain additional information about the Fund’s investments. The Fund’s annual report also discusses the market
conditions and investment strategies that significantly affected the Fund’s performance during its last fiscal year. The Fund also
files its complete schedule of portfolio holdings with the SEC for the 1st and 3rd quarters of each fiscal year as an exhibit to its reports
on Form N-PORT.
If
you have questions about an Invesco Fund or your account, or you wish to obtain a free copy of the Fund’s current SAI, annual or
semi-annual reports or Form N-PORT, please contact us.
|
By
Mail: |
Invesco
Investment Services, Inc.
P.O.
Box 219078
Kansas
City, MO 64121-9078 |
|
By
Telephone: |
(800)
959-4246 |
|
On
the Internet: |
You
can send us a request by e-mail or
download
prospectuses, SAIs, annual or
semi-annual
reports via our website:
www.invesco.com/us
|
Reports
and other information about the Fund are available on the EDGAR Database on the SEC's Internet site at http://www.sec.gov, and copies
of this information may be obtained, after paying a duplicating fee, by electronic request at the following e-mail address: publicinfo@sec.gov.
|
Invesco
Income Advantage U.S. Fund
SEC 1940 Act file
number: 811-09913 |
|
invesco.com/us
|
LVEY-PRO-1
|
Prospectus
December
16,
2022
Class: R6
(MLNFX )
Invesco Master
Loan 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.
Table of Contents
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A-27
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Back
Cover |
Invesco Master
Loan Fund
The
Fund’s investment objective is to seek income.
This
table describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund.
The
table and Examples below do not reflect any transaction fees
that may be charged by financial intermediaries, or commissions that a shareholder may be required to pay directly to its financial intermediary
when buying or selling Class R6 shares.
|
Class:
|
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:
|
R6
|
|
Management
Fees |
|
|
| |
|
Distribution
and/or Service (12b-1) Fees |
|
|
| |
|
Other
Expenses |
|
|
| |
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Interest
|
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Total
Other Expenses |
|
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Total
Annual Fund Operating Expenses |
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| |
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 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
R6 |
$
|
$
|
$
|
$
|
|
| ||||
Under
normal circumstances, the Fund will invest at least 80% of its net assets (including borrowings for investment purposes) in loans made
to U.S. and foreign borrowers that are corporations, partnerships or other business entities, and in derivatives and other instruments
that have economic characteristics similar to such securities. The Fund may invest directly in loans (as an original lender or by assignment
from a lender) or indirectly in loans through loan participation agreements or certain derivative instruments. The Fund will invest in
floating (sometimes referred to as “adjustable”) rate loans that pay interest at rates that float above, or are
adjusted
periodically based on a benchmark that reflects current interest rates, such as the prime rate offered by one or more major U.S. banks
(referred to as the “Prime Rate”). The Fund may also invest in loans with fixed interest rates. While many of these loans
will be collateralized, the Fund can invest in uncollateralized loans. The Fund has no limits as to the maturity of loans in which it
invests or as to the market capitalization range of the borrowers.
The
Fund can invest without limit in loans that are below investment grade
(sometimes referred to as “high yield” or “junk” securities). “Investment-grade” debt instruments
are rated in one of the four highest rating categories by nationally recognized statistical rating organizations such as Moody’s
or S&P Global Ratings (S&P) (or, in the case of unrated securities, determined by the Fund’s Adviser to be comparable to
securities rated investment-grade). The Fund may also invest in unrated loans, in which case the Fund’s Adviser may assign ratings
to those instruments, after assessing their credit quality and other factors, in investment-grade or below-investment-grade categories
similar to those of nationally recognized statistical rating organizations. There can be no assurance, nor is it intended, that the Adviser’s
credit analysis is consistent or comparable with the credit analysis process used by a nationally recognized statistical rating organization.
The Fund may invest in such unrated loans whether or not determined by the Adviser to be investment grade. The Fund can invest in loans
made in connection with highly leveraged transactions. The Fund may invest in defaulted or distressed loans and loans to bankrupt companies.
The
Fund may invest in floating rate loans that hold (or in the judgment of
the Adviser, hold) a senior position in the capital structure of U.S. and foreign corporations, partnerships or other business entities
that, under normal circumstances, allow them to have priority of claim ahead of other obligations of a borrower in the event of liquidation.
These investments are referred to as “Senior Loans.” Senior Loans may be collateralized or uncollateralized. They typically
pay interest at rates that float above, or are adjusted periodically based on, a benchmark that reflects current interest rates. The Fund
can invest 25% or more of its total assets in securities of the group of industries in the financial securities sector. The Fund can invest
up to 20% of its total assets in equity securities (including common stocks, preferred stocks, rights, warrants, and securities convertible
into common stock).
The
Fund can engage in foreign currency transactions either on a spot basis
(i.e. for prompt delivery and settlement at the rate prevailing in the currency exchange market at the time) or through forward foreign
currency contracts to hedge against adverse movements in the foreign currencies in which portfolio securities are denominated. The Fund
can use currency futures and currency swaps to hedge its exposure to foreign currencies.
When
selecting loans for investment, the Fund’s Adviser performs its own
analysis based on information obtained from agents that originate or administer loans, other lenders, and ratings organizations, among
other sources. The Adviser’s analysis may consider various factors, such as the borrower’s past and projected financial performance;
the borrower’s assets and cash flows; the quality and depth of the borrower’s management; the credit quality of the collateral
or other debt security, if any; the state of the borrower’s industry and its position in that industry; the market for loans generally;
the credit quality of the debt obligations of the bank servicing the loan and other intermediaries imposed between the borrower and the
Fund. The credit research process utilized by the Fund to implement its investment strategy in pursuit of its investment objective considers
factors that may include, but are not limited to, an issuer’s operations, capital structure and environmental, social and governance
(“ESG”) considerations. Credit quality analysis for certain issuers therefore may consider whether any ESG factors pose a
material financial risk or opportunity to an issuer. The Adviser may determine that ESG considerations are not material to certain issuers
or types of investments held by the Fund. In addition, not all issuers or Fund
1 Invesco Master
Loan Fund
investments
may undergo a credit quality analysis that considers ESG factors,
and not all investments held by the Fund will rate strongly on
ESG criteria. The Adviser will continue to monitor the credit quality of loans in its portfolio and the status of the applicable borrowers
for the duration of the Fund’s investment.
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, natural or environmental disasters, widespread disease or other public health issues, war, military conflict, acts of terrorism
or adverse investor sentiment generally. 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.
Senior
Loans and Other Loans Risk. Risks associated with an investment
in Senior Loans include credit risk, interest rate risk, liquidity risk,
valuation risk and prepayment risk. These risks are typically
associated with debt securities but may be heightened in part because of the limited public information regarding Senior Loans. Senior
Loans generally are floating rate loans, which are subject to interest rate risk as the interest paid on the floating rate loans adjusts
periodically based on changes in widely accepted reference rates. Lack of an active trading market, restrictions on resale, irregular
trading activity, wide bid/ask spreads and extended trade settlement periods may impair the Fund’s ability to sell Senior Loans
within its desired time frame or at an acceptable price and its ability to accurately value existing and prospective investments. Extended
trade settlement periods may result in cash not being immediately available to the Fund. As a result, the Fund may have to sell other
investments or engage in borrowing transactions to raise cash to meet its obligations. The risk of holding Senior Loans is also directly
tied to the risk of insolvency or bankruptcy of the issuing banks. The value of Senior Loans can be affected by and sensitive to changes
in government regulation and to economic downturns in the United States and abroad. Senior loans are also subject to the risk that a court
could subordinate a senior loan or take other action detrimental to the holders of senior loans. Loans are subject to the risk that the
value of the collateral, if any, securing a loan may decline, be insufficient to meet the obligations of the borrower, or be difficult
to liquidate. Loan investments are often issued in connection with highly leveraged transactions which are subject to greater credit risks
than other investments including a greater possibility that the borrower may default or enter bankruptcy. Highly leveraged loans also
may be less liquid than other loans. These risks could cause the Fund to lose income or principal on a particular investment, which in
turn could affect the Fund’s returns.
Debt
Securities Risk. The prices of debt securities held by the Fund
will be affected by changes in interest rates, the creditworthiness of the issuer and other factors. An increase in prevailing interest
rates typically causes the value of existing debt securities to fall and often has a greater impact on longer-duration debt securities
and higher quality debt securities. Falling interest rates will cause the Fund to reinvest the proceeds of debt securities that have been
repaid by the issuer at lower interest rates. Falling interest rates may also reduce the Fund’s distributable income because interest
payments
on floating rate debt instruments held by the Fund will decline. The Fund could lose money on investments in debt securities if the issuer
or borrower fails to meet its obligations to make interest payments and/or to repay principal in a timely manner. Changes in an issuer’s
financial strength, the market’s perception of such strength or in the credit rating of the issuer or the security may affect the
value of debt securities. The Adviser’s credit analysis may fail to anticipate such changes, which could result in buying a debt
security at an inopportune time or failing to sell a debt security in advance of a price decline or other credit event.
High
Yield Debt Securities (Junk Bond) Risk. Investments in high yield
debt securities (“junk bonds”) and other lower-rated securities will subject the Fund to substantial risk of loss. These securities
are considered to be speculative with respect to the issuer’s ability to pay interest and principal when due, are more susceptible
to default or decline in market value and are less liquid than investment grade debt securities. Prices of high yield debt securities
tend to be very volatile.
LIBOR
Transition Risk. The Fund may have investments in financial instruments
that utilize the London Interbank Offered Rate (“LIBOR”) as the reference or benchmark rate for variable interest rate calculations.
LIBOR is intended to measure the rate generally at which banks can lend and borrow from one another in the relevant currency on an unsecured
basis. Regulators and financial industry working groups in several jurisdictions have worked over the past several years to identify alternative
reference rates (“ARRs”) to replace LIBOR and to assist with the transition to the new ARRs. In connection with the transition,
on March 5,
2021 the UK Financial Conduct Authority (FCA), the regulator that oversees LIBOR,
announced that the majority of LIBOR rates would cease to be published
or would no longer be representative on January 1, 2022. Consequently,
the publication of most LIBOR rates ceased at the end of 2021,
but a selection of widely used USD LIBOR rates continues to be published until June 2023 to allow for an orderly
transition away from these rates. Additionally,
key regulators have instructed banking institutions to cease
entering into new contracts that reference these USD LIBOR settings
after December 31,
2021,
subject to certain limited exceptions.
There
remains uncertainty and risks relating to the continuing LIBOR transition
and its effects on the Fund and the instruments in which the Fund invests. For example, there can be no assurance that the composition
or characteristics of any ARRs or financial instruments in which the Fund invests that utilize ARRs will be similar to or produce the
same value or economic equivalence as LIBOR or that these instruments will have the same volume or liquidity. Additionally, although regulators
have generally prohibited banking institutions from entering into new contracts that reference those USD LIBOR settings that continue
to exist, there remains uncertainty and risks relating to certain “legacy” USD LIBOR instruments that were issued or entered
into before December 31, 2021 and the process by which a replacement interest rate will be identified and implemented into these instruments
when USD LIBOR is ultimately discontinued. The effects of such uncertainty and risks in “legacy” USD LIBOR instruments held
by the Fund could result in losses to the Fund.
Changing
Fixed Income Market Conditions Risk. Increases
in the federal funds and equivalent foreign rates or other changes to monetary policy or regulatory actions may expose fixed income markets
to heightened volatility and reduced liquidity for certain fixed income investments, particularly those with longer maturities. It is
difficult to predict the impact of interest rate changes on various markets. In addition, decreases in fixed income dealer market-making
capacity may also potentially lead to heightened volatility and reduced liquidity in the fixed income markets. As a result, the value
of the Fund’s investments and share price may decline. Changes in central bank policies could also result in higher than normal
redemptions by shareholders, which could potentially increase the Fund’s portfolio turnover rate and transaction costs.
Defaulted
Securities Risk. Defaulted securities pose a greater risk that
principal will not be repaid than non-defaulted securities. Defaulted
2 Invesco Master
Loan Fund
securities
and any securities received in an exchange for such securities may be subject to restrictions on resale.
Concentration
in Financial Securities Sector Risk. The Fund will not concentrate
its investments in issuers in any one industry, except that the Fund may invest without limit in instruments of the group of industries
in the financial securities sector. Financial securities industries may be more susceptible to particular economic and regulatory events
such as volatility in the financial markets and interest rates, changes in domestic and foreign monetary policy, and changes in industry
regulations.
Foreign
Securities Risk. The Fund's foreign investments may be adversely
affected by political and social instability, changes in economic or taxation policies, difficulty in enforcing obligations, decreased
liquidity or increased volatility. 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. There may be less public information available about foreign companies than U.S. companies, making it difficult
to evaluate those foreign companies. 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.
Investing
in Stocks Risk. The value of the Fund’s portfolio may be
affected by changes in the stock markets. Stock markets may experience significant short-term volatility and may fall or rise sharply
at times. Adverse events in any part of the equity or fixed-income markets may have unexpected negative effects on other market segments.
Different stock markets may behave differently from each other and U.S. stock markets may move in the opposite direction from one or more
foreign stock markets.
The
prices of individual stocks generally do not all move in the same direction
at the same time. However, individual stock prices tend to go up and down more dramatically than those of certain other types of investments,
such as bonds. A variety of factors can negatively affect the price of a particular company’s stock. These factors may include,
but are not limited to: poor earnings reports, a loss of customers, litigation against the company, general unfavorable performance of
the company’s sector or industry, or changes in government regulations affecting the company or its industry. To the extent that
securities of a particular type are emphasized (for example foreign stocks, stocks of small- or mid-cap companies, growth or value stocks,
or stocks of companies in a particular industry), fund share values may fluctuate more in response to events affecting the market for
those types of securities.
Preferred
Securities Risk. Preferred securities are subject to issuer-specific
and market risks applicable generally to equity securities. Preferred securities also may be subordinated to bonds or other debt instruments,
subjecting them to a greater risk of non-payment, may be less liquid than many other securities, such as common stocks, and generally
offer no voting rights with respect to the issuer.
Rights
and Warrants Risk. Warrants may be significantly less valuable
or worthless on their expiration date and may also be postponed or terminated early, resulting in a partial or total loss. Rights are
similar to warrants, but normally have a short duration and are distributed directly by the issuer to its shareholders. Rights and warrants
have no voting rights, receive no dividends and have no rights with respect to the assets of the issuer. Warrants and rights are highly
volatile and, therefore, more susceptible to sharp declines in value than the underlying security might be. The market
for rights
or warrants may be very limited and it may be difficult to sell them promptly at an acceptable price.
Convertible
Securities Risk. The market values of convertible securities are
affected by market interest rates, the risk of actual issuer default on interest or principal payments and the value of the underlying
common stock into which the convertible security may be converted. Additionally, a convertible security is subject to the same types of
market and issuer risks that apply to the underlying common stock. In addition, certain convertible securities are subject to involuntary
conversions and may undergo principal write-downs upon the occurrence of certain triggering events, and, as a result, are subject to an
increased risk of loss. Convertible securities may be rated below investment grade, which are considered to have more speculative characteristics
and greater susceptibility to default or decline in market value than investment grade securities.
Warrants,
Equity Securities and Junior Debt Securities of the Borrower Risk.
Warrants, equity securities and junior debt securities have a subordinate claim on a Borrower’s assets as compared with Senior Loans.
As a result, the values of warrants, equity securities and junior debt securities generally are more dependent on the financial condition
of the Borrower and less dependent on fluctuations in interest rates than are the values of many debt securities. The values of warrants,
equity securities and junior debt securities may be more volatile than those of Senior Loans and thus may increase the volatility of the
Fund’s net asset value. Additionally, warrants may be significantly less valuable on their relevant expiration date resulting in
a loss of money or they may expire worthless resulting in a total loss of the investment. Warrants may also be postponed or terminated
early resulting in a partial or total loss of the investment. Warrants may also be illiquid.
Derivatives
Risk. The value of a derivative instrument depends largely on (and
is derived from) the value of an underlying security, currency, commodity, interest rate, index or other asset (each referred to as an
underlying asset). In addition to risks relating to the underlying assets, the use of derivatives may include other, possibly greater,
risks, including counterparty, leverage and liquidity risks. Counterparty risk is the risk that the counterparty to the derivative contract
will default on its obligation to pay the Fund the amount owed or otherwise perform under the derivative contract. Derivatives create
leverage risk because they do not require payment up front equal to the economic exposure created by holding a position in the derivative.
As a result, an adverse change in the value of the underlying asset could result in the Fund sustaining a loss that is substantially greater
than the amount invested in the derivative or the anticipated value of the underlying asset, which may make the Fund’s returns more
volatile and increase the risk of loss. Derivative instruments may also be less liquid than more traditional investments and the Fund
may be unable to sell or close out its derivative positions at a desirable time or price. This risk may be more acute under adverse market
conditions, during which the Fund may be most in need of liquidating its derivative positions. Derivatives may also be harder to value,
less tax efficient and subject to changing government regulation that could impact the Fund’s ability to use certain derivatives
or their cost. Derivatives strategies may not always be successful. For example, derivatives used for hedging or to gain or limit exposure
to a particular market segment may not provide the expected benefits, particularly during adverse market conditions.
Liquidity
Risk. The Fund may be unable to sell illiquid investments at the
time or price it desires and, as a result, could lose its entire investment in such investments. Liquid securities can become illiquid
during periods of market stress. If a significant amount of the Fund’s securities become illiquid, the Fund may not be able to timely
pay redemption proceeds and may need to sell securities at significantly reduced prices.
Borrowing
Risk. Borrowing money to buy securities exposes the Fund to leverage
and will cause the Fund’s share price to be more volatile because leverage will exaggerate the effect of any increase or decrease
in the value of the Fund’s portfolio securities. Borrowing money may also require the Fund to liquidate positions when it may not
be advantageous to do so. In
3 Invesco Master
Loan Fund
addition,
the Fund will incur interest expenses and other fees on borrowed money. There can be no assurance that the Fund’s borrowing strategy
will enhance and not reduce the Fund’s returns.
Environmental,
Social and Governance (ESG) Considerations Risk. The ESG considerations
that may be assessed as part of a credit research process to implement the Fund's investment strategy in pursuit of its investment objective
may vary across types of eligible investments and issuers, and not every ESG factor may be identified or evaluated for every investment,
and not every investment or issuer may be evaluated for ESG considerations. The incorporation of ESG factors as part of a credit analysis
may affect the Fund’s exposure to certain issuers or industries and may not work as intended. Information used to evaluate such
factors may not be readily available, complete or accurate, and may vary across providers and issuers. There is no guarantee that the
incorporation of ESG considerations will be additive to the Fund’s performance.
Management
Risk. The Fund is actively managed and depends heavily on the Adviser’s
judgment about markets, interest rates or the attractiveness, relative values, liquidity, or potential appreciation of particular investments
made for the Fund’s portfolio. The Fund could experience losses if these judgments prove to be incorrect. Additionally, legislative,
regulatory, or tax developments may adversely affect management of the Fund and, therefore, the ability of the Fund to achieve its investment
objective.
Class
R6 shares’ returns shown for periods ending on or prior to May
24, 2019 are those of the Class A shares of the predecessor fund.
Class A shares of the predecessor fund were reorganized into Class
R6 shares of the Fund after the close of business on May 24, 2019.
Annual Total Returns
|
Class
R6 |
Period
Ended |
Returns
|
|
|
|
-
|
|
|
|
|
|
|
|
-
|
Average Annual Total Returns (for the periods ended December 31, 2021)
|
|
Inception
Date
|
1
Year
|
5
Years
|
10
Years
|
|
Class
R6 |
|
|
|
|
|
Return
Before Taxes |
|
|
|
|
|
Return
After Taxes on Distributions |
|
|
|
|
|
Return
After Taxes on Distributions and Sale of Fund
Shares
|
|
|
|
|
|
| ||||
|
JP
Morgan Leveraged Loan Index deduction
for fees, expenses or taxes) |
|
|
|
|
|
| ||||
|
Credit
Suisse Leveraged Loan Index (reflects no
deduction
for fees, expenses or taxes) |
|
|
|
|
|
| ||||
1
Management
of the Fund
Investment
Adviser: Invesco Advisers, Inc.
Investment
Sub-Adviser: Invesco Senior Secured Management, Inc.
|
Portfolio
Managers |
Title
|
Length
of Service on the Fund |
|
David
Lukkes, CFA |
Portfolio
Manager (lead) |
2019
(predecessor fund since 2015) |
|
| ||
|
Thomas
Ewald |
Portfolio
Manager |
2020
|
|
| ||
|
Philip
Yarrow, CFA |
Portfolio
Manager |
2020
|
|
| ||
Purchase
and Sale of Fund Shares
The
Fund is only available for purchase by other Funds in the Invesco fund family and other Invesco pooled investment vehicles. 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. 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 R6 shares, the minimum
initial investment 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 intends to operate as a partnership for federal income tax purposes. Accordingly, the Fund generally will not be subject to any federal
income tax but each investor will take into account its allocated share of the Fund’s income, capital gains, losses, deductions
and credits in determining its income tax liability.
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
4 Invesco Master
Loan Fund
broker-dealer
or other intermediary and your salesperson or financial adviser to recommend the Fund over another investment. Ask your salesperson or
financial adviser or visit your financial intermediary’s website for more information.
Investment Objective(s), Strategies, Risks and Portfolio Holdings
Objective(s)
and Strategies
The
Fund’s investment objective is to seek income. The Fund’s investment objective may be changed by the Board of Trustees (the
Board) without shareholder approval.
Under
normal circumstances, the Fund will invest at least 80% of its net assets
(including borrowings for investment purposes) in loans made to U.S. and foreign borrowers that are corporations, partnerships or other
business entities, and in derivatives and other instruments that have economic characteristics similar to such securities. The Fund may
invest in loans in one or more of three ways: it may invest directly in a loan by acting as an original lender; it may invest directly
in a loan by purchasing a loan by an assignment; or it may invest indirectly in a loan by purchasing a participation interest in a loan.
The Fund may also gain exposure to loans indirectly using certain derivative instruments. The Fund can invest in loans, generally “at
par” (a price for the loan equal approximately to 100% of the funded principal amount of the loan, minus any original issue discount)
as an original lender. When the Fund is an original lender, it is entitled to receive a return at the full interest rate for the loan.
The Fund may purchase a loan by assignment. In a loan assignment, the Fund typically succeeds to the rights and obligations of the assigning
lender under the loan agreement and becomes a “lender” under that agreement, entitled to the same rights (including, but not
limited to, enforcement or set-off rights) that are available to lenders generally. The Fund’s investment in participation interests
represent an undivided fractional interest in a loan. They are typically purchased from banks or dealers that have made the loan or have
become members of the loan syndicate by purchasing the loan by assignment. The Fund will invest in floating (sometimes referred to as
“adjustable”) rate loans that pay interest at rates that float above, or are adjusted periodically based on, a benchmark that
reflects current interest rates, such as the prime rate offered by one or more major U.S. banks (referred to as the “Prime Rate”).
The Fund may also invest in loans with fixed interest rates. While many of these loans will be collateralized, the Fund can invest in
uncollateralized loans. The Fund has no limits as to the maturity of loans in which it invests or as to the market capitalization range
of the borrowers.
The
Fund can invest without limit in loans that are below investment grade
(sometimes referred to as “high yield” or “junk” securities). “Investment-grade” debt instruments
are rated in one of the four highest rating categories by nationally recognized statistical rating organizations such as Moody’s
or S&P Global Ratings (S&P) (or, in the case of unrated securities, determined by the Fund’s Adviser to be comparable to
securities rated investment-grade). The Fund may also invest in unrated loans, in which case the Fund’s Adviser may assign ratings
to those instruments, after assessing their credit quality and other factors, in investment-grade or below-investment-grade categories
similar to those of nationally recognized statistical rating organizations. There can be no assurance, nor is it intended, that the Adviser’s
credit analysis is consistent or comparable with the credit analysis process used by a nationally recognized statistical rating organization.
The Fund may invest in such unrated loans whether or not determined by the Adviser to be investment grade. The Fund can invest in loans
made in connection with highly leveraged transactions. The Fund may invest in defaulted or distressed loans and loans to bankrupt companies.
The
Fund may invest in floating rate loans that hold (or in the judgment of
the investment adviser, hold) a senior position in the capital structure of U.S. and foreign corporations, partnerships or other business
entities that,
under
normal circumstances, allow them to have priority of claim ahead of other obligations of a borrower in the event of liquidation. These
investments are referred to as “Senior Loans.” Senior Loans may be collateralized or uncollateralized. They typically pay
interest at rates that float above, or are adjusted periodically based on, a benchmark that reflects current interest rates. The Fund
can invest 25% or more of its total assets in securities of the group of industries in the financial securities sector. The Fund can invest
up to 20% of its total assets in equity securities (including common stocks, preferred stocks, rights, warrants, and securities convertible
into common stock).
The
Fund can engage in foreign currency transactions either on a spot basis
(i.e. for prompt delivery and settlement at the rate prevailing in the currency exchange market at the time) or through forward foreign
currency contracts to hedge against adverse movements in the foreign currencies in which portfolio securities are denominated. The Fund
can use currency futures and currency swaps to hedge its exposure to foreign currencies. The Fund may use interest rate swap agreements
and other hedging practices to mitigate fluctuations in value when the interest rate under the loan is periodically reset.
When
selecting loans for investment, the Fund’s Adviser performs its own
analysis based on information obtained from agents that originate or administer loans, other lenders, and ratings organizations, among
other sources. The Adviser’s analysis may consider various factors, such as the borrower’s past and projected financial performance;
the borrower’s assets and cash flows; the quality and depth of the borrower’s management; the credit quality of the collateral
or other debt security, if any; the state of the borrower’s industry and its position in that industry; and the market for loans
generally; the credit quality of the debt obligations of the bank servicing the loan and other intermediaries imposed between the borrower
and the Fund. The credit research process utilized by the Fund to implement its investment strategy in pursuit of its investment objective
considers factors that may include, but are not limited to, an issuer’s operations, capital structure and environmental, social
and governance (“ESG”) considerations. Credit quality analysis for certain issuers therefore may consider whether any ESG
factors pose a material financial risk or opportunity to an issuer. The Adviser may determine that ESG considerations are not material
to certain issuers or types of investments held by the Fund. In addition, not all issuers or Fund investments may undergo a credit quality
analysis that considers ESG factors, and not all investments held by
the Fund will rate strongly on ESG criteria. The Adviser will continue
to monitor the credit quality of loans in its portfolio and the status of the applicable borrowers for the duration of the Fund’s
investment. There can be no assurance that the Adviser’s analysis will identify all of the factors that may impair the value of
a loan or other investment.
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
5 Invesco Master
Loan Fund
conditions
that are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general
outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, or adverse investor
sentiment generally. The value of the Fund’s investments may also go up or down due to factors that affect an individual issuer
or a particular industry or sector, such as changes in production costs and competitive conditions within an industry. In addition, natural
or environmental disasters, widespread disease or other public health issues, war, military conflict, acts of terrorism 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.
◾
COVID-19.
The “COVID-19” strain of coronavirus has resulted in instances of market closures and dislocations, extreme volatility, liquidity
constraints and increased trading costs. Efforts to contain its spread have resulted in travel restrictions, disruptions of healthcare
systems, business operations (including business closures) and supply chains, layoffs, lower consumer demand and employee availability,
and defaults and credit downgrades, among other significant economic impacts that have disrupted global economic activity across many
industries. Such economic impacts may exacerbate other pre-existing political, social and economic risks locally or globally and cause
general concern and uncertainty. The full economic impact and ongoing effects of COVID-19 (or other future epidemics or pandemics) at
the macro-level and on individual businesses are unpredictable and may result in significant and prolonged effects on the Fund’s
performance.
Senior
Loans and Other Loans Risk. There are a number of risks associated
with an investment in Senior Loans including credit risk, interest rate risk, liquidity risk,
valuation risk and prepayment risk. These risks are typically
associated with debt securities but may be heightened in part because of the limited public information regarding Senior Loans. Senior
Loans generally are floating rate loans, which are subject to interest rate risk as the interest paid on the floating rate loans adjusts
periodically based on changes in widely accepted reference rates. Lack of an active trading market, restrictions on resale, irregular
trading activity, wide bid/ask spreads and extended trade settlement periods may impair the Fund’s ability to sell Senior Loans
within its desired time frame or at an acceptable price and its ability to accurately value existing and prospective investments. Extended
trade settlement periods may result in cash not being immediately available
to the
Fund. As a result, the Fund may have to sell other investments or engage in borrowing transactions to raise cash to meet its obligations.
The risk of holding Senior Loans is also directly tied to the risk of insolvency or bankruptcy of the issuing banks. The value of Senior
Loans can be affected by, and is sensitive to, changes in government regulation and to economic downturns in the United States and abroad.
These risks could cause the Fund to lose income or principal on a particular investment, which in turn could affect the Fund’s returns.
In
addition to the risks typically associated with debt securities, senior loans
are also subject to the risk that a court could subordinate a senior loan, which typically holds a senior position in the capital structure
of a borrower, to presently existing or future indebtedness or take other action detrimental to the holders of senior loans. Loans usually
have mandatory and optional prepayment provisions. If a borrower prepays a loan, the Fund will have to reinvest the proceeds in other
loans or financial assets that may pay lower rates of return.
Loans
are subject to the risk that the value of the collateral, if any, securing
a loan may decline, be insufficient to meet the obligations of the borrower, or be difficult to liquidate. In the event of a default,
the Fund may have difficulty collecting on any collateral and would not have the ability to collect on any collateral for an uncollateralized
loan. In addition, the lenders’ security interest or their enforcement of their security under the loan agreement may be found by
a court to be invalid or the collateral may be used to pay other outstanding obligations of the borrower. The Fund’s access to collateral,
if any, may be limited by bankruptcy, other insolvency laws, or by the type of loan the Fund has purchased. As a result, a collateralized
loan may not be fully collateralized and can decline significantly in value.
Loan
investments are often issued in connection with highly leveraged transactions.
Such transactions include leveraged buyout loans, leveraged recapitalization loans, and other types of acquisition financing. These obligations
are subject to greater credit risks than other investments including a greater possibility that the borrower may default or enter bankruptcy.
Highly leveraged loans also may be less liquid than other loans. If the Fund voluntarily or involuntarily sold those types of loans, it
might not receive the full value it expected.
Due
to restrictions on transfers in loan agreements and the nature of the
private syndication of loans including, for example, the lack of publicly-available information, some loans are not as easily purchased
or sold as publicly-traded securities. Some loans are illiquid, which may make it difficult for the Fund to value them or dispose of them
at an acceptable price when it wants to. Additionally, valuation of Senior Loans may require greater research due to limited public information
available and elements of judgment may play a greater role in valuation since there may be a lack of objective data available. The market
price of investments in floating rate loans is expected to be less affected by changes in interest rates than fixed-rate investments because
floating rate loans pay a floating rate of interest that will fluctuate as market interest rates do and therefore should more closely
track market movements in interest rates.
Direct
investments in loans and, to a lesser degree, investments in participation
interests in or assignments of loans may be limited. A limited availability of loans could reduce the amount of attractive investments
for the Fund. If market demand for loans increases, the interest paid by loans that the Fund holds may decrease. Due to the possible limited
availability of loans in the market at a given time in which the Fund can invest, there is a risk that the Fund may not be able to invest
a sufficient amount in loans at all times to meet its 80% asset investment requirement (including borrowings for investment purposes).
Compared
to securities and to certain other types of financial assets, purchases
and sales of loans take relatively longer to settle. This extended settlement process can (i) increase the counterparty credit risk borne
by the Fund; (ii) leave the Fund unable to timely vote, or otherwise act with respect to, loans it has agreed to purchase; (iii) delay
the Fund from realizing the proceeds of a sale of a loan; (iv) inhibit the Fund’s ability to re-sell a loan
6 Invesco Master
Loan Fund
that it
has agreed to purchase if conditions change (leaving the Fund more exposed to price fluctuations); (v) prevent the Fund from timely collecting
principal and interest payments; and (vi) expose the Fund to adverse tax or regulatory consequences. To the extent the extended loan settlement
process gives rise to short-term liquidity needs, such as the need to satisfy redemption requests, the Fund may hold cash, sell investments
or temporarily borrow from banks or other lenders. If the Fund undertakes such measures, the Fund’s ability to pay redemption proceeds
in a timely manner, as well as the Fund’s performance, may be adversely affected.
If
the Fund invests in a loan via a participation, the Fund will be exposed to
the ongoing counterparty risk of the entity providing exposure to the loan (and, in certain circumstances, such entity’s credit
risk) in addition to the exposure the Fund has to the creditworthiness of the borrower. The terms of the participation may not entitle
the Fund to all rights of a direct lender under the loan (for example, with respect to consent, voting or enforcement rights). Therefore,
the Fund’s rights under a participation interest for a particular loan may be more limited than the rights of the original lender
or an investor who acquires an assignment of that loan. Where the Fund invests in a loan via a participation, the Fund generally will
have no right of direct recourse against the borrower or ability to otherwise directly enforce the terms of the loan agreement.
In
certain circumstances, loans may not be deemed to be securities, and
in the event of fraud or misrepresentation by a borrower or an arranger, lenders will not have the protection of the anti-fraud provisions
of the federal securities laws, as would be the case for bonds or stocks. Instead, in such cases, lenders generally rely on the contractual
provisions in the loan agreement itself, and common-law fraud protections under applicable state law.
Debt
Securities Risk. The prices of debt securities held by the Fund
will be affected by changes in interest rates, the creditworthiness of the issuer and other factors. An increase in prevailing interest
rates typically causes the value of existing debt securities to fall and often has a greater impact on longer-duration debt securities
and higher quality debt securities. Falling interest rates will cause the Fund to reinvest the proceeds of debt securities that have been
repaid by the issuer at lower interest rates. Falling interest rates may also reduce the Fund’s distributable income because interest
payments on floating rate debt instruments held by the Fund will decline. The Fund could lose money on investments in debt securities
if the issuer or borrower fails to meet its obligations to make interest payments and/or to repay principal in a timely manner. If an
issuer seeks to restructure the terms of its borrowings or the Fund is required to seek recovery upon a default in the payment of interest
or the repayment of principal, the Fund may incur additional expenses. Changes in an issuer’s financial strength, the market’s
perception of such strength or in the credit rating of the issuer or the security may affect the value of debt securities. The Adviser’s
credit analysis may fail to anticipate such changes, which could result in buying a debt security at an inopportune time or failing to
sell a debt security in advance of a price decline or other credit event.
High
Yield Debt Securities (Junk Bond) Risk. The Fund’s investments
in high yield debt securities (commonly referred to as “junk bonds”) and other lower-rated securities will subject the Fund
to substantial risk of loss. These securities are considered to be speculative with respect to the issuer’s ability to pay interest
and principal when due and are more susceptible to default or decline in market value due to adverse economic, regulatory, political or
company developments than higher rated or investment grade securities. Prices of high yield debt securities tend to be very volatile.
These securities are less liquid than investment grade debt securities and may be difficult to sell at a desirable time or price, particularly
in times of negative sentiment toward high yield securities.
LIBOR
Transition Risk. The Fund may have investments in financial instruments
that utilize the London Interbank Offered Rate (“LIBOR”) as the reference or benchmark rate for variable interest rate calculations.
LIBOR is intended to measure the rate generally at which banks can lend and borrow from one another in the relevant currency on an unsecured
basis. In the
years
following the 2008 financial crisis, the integrity of LIBOR was increasingly questioned because several banks contributing to its calculation
were accused of rate manipulation and because of a general contraction in the unsecured interbank lending market. As a result, regulators
and financial industry working groups in several jurisdictions have worked over the past several years to identify alternative reference
rates (“ARRs”) to replace LIBOR and to assist with the transition to the new ARRs. In connection with the transition, on March
5, 2021 the UK Financial Conduct Authority (FCA), the regulator that oversees LIBOR, announced that the majority of LIBOR rates would
cease to be published or would no longer be representative on January 1, 2022. Consequently, the publication of most LIBOR rates ceased
at the end of 2021, but a selection of widely used USD LIBOR rates continues to be published until June 2023 to allow for an orderly transition
away from these rates. Additionally, key regulators have instructed banking institutions to cease entering into new contracts that reference
these USD LIBOR settings after December 31, 2021, subject to certain limited exceptions.
There
remains uncertainty and risks relating to the continuing LIBOR
transition and its effects on the Fund and the instruments in which the Fund invests. For example,
there can be no assurance that the composition or characteristics
of any ARRs or financial instruments
in
which the Fund
invests that
utilize ARRs will be similar to or produce the same value or economic
equivalence as LIBOR or that these instruments will have the same volume or liquidity. Additionally, although regulators have generally
prohibited banking institutions from entering into new contracts that reference those USD LIBOR settings that continue to exist,
there remains
uncertainty and risks relating to certain
“legacy”
USD LIBOR
instruments that were issued or entered into before December
31,
2021 and the process by which a replacement interest rate will
be identified and implemented into these instruments when USD LIBOR
is ultimately discontinued. The effects of such uncertainty and risks in
“legacy”
USD LIBOR instruments held by the Fund could result in losses to
the Fund.
Changing
Fixed Income Market Conditions Risk. Increases
in the federal funds and equivalent foreign rates or other changes to monetary policy or regulatory actions may expose fixed income markets
to heightened volatility and reduced liquidity for certain fixed income investments, particularly those with longer maturities. It is
difficult to predict the impact of interest rate changes on various markets. In addition, decreases in fixed income dealer market-making
capacity may also potentially lead to heightened volatility and reduced liquidity in the fixed income markets. As a result, the value
of the Fund’s investments and share price may decline. Changes in
central bank policies
could also result in higher than normal redemptions by shareholders,
which could potentially increase the Fund’s portfolio turnover rate and transaction costs and potentially lower the Fund’s
performance returns.
Defaulted
Securities Risk. Defaulted securities pose a greater risk that
principal will not be repaid than non-defaulted securities. The Fund will generally not receive interest payments on defaulted securities
and may incur costs to protect its investment. Defaulted securities and any securities received in an exchange for such securities may
be subject to restrictions on resale. Investments in defaulted securities and obligations of distressed issuers are considered speculative
and the prices of these securities may be more volatile than non-defaulted securities.
Credit
Quality Risk. The Fund can invest in securities that are rated
or unrated. “Investment-grade” securities are those rated within the four highest rating categories by nationally recognized
statistical rating organizations such as Moody’s or S&P (or, in the case of unrated securities, determined by the investment
adviser to be comparable to securities rated investment-grade). “Below-investment-grade” securities are those that are rated
below those categories, which are also referred to as “junk bonds.” While securities rated within the fourth highest category
by S&P (meaning BBB+, BBB or BBB-) or by Moody’s (meaning Baa1, Baa2 or Baa3) are considered “investment-grade,”
they have some speculative characteristics. If two or more nationally recognized statistical rating organizations have
7 Invesco Master
Loan Fund
assigned
different ratings to a security, the investment adviser uses the highest rating assigned.
Credit
ratings evaluate the expectation that scheduled interest and principal
payments will be made in a timely manner. They do not reflect any judgment of market risk. Ratings and market value may change from time
to time, positively or negatively, to reflect new developments regarding the issuer. Rating organizations might not change their credit
rating of an issuer in a timely manner to reflect events that could affect the issuer’s ability to make timely payments on its obligations.
In selecting securities for its portfolio and evaluating their income potential and credit risk, the Fund does not rely solely on ratings
by rating organizations but evaluates business, economic and other factors affecting issuers as well. Many factors affect an issuer’s
ability to make timely payments, and the credit risk of a particular security may change over time. The Adviser also may use its own research
and analysis to assess those risks. If a bond is insured, it will usually be rated by the rating organizations based on the financial
strength of the insurer. The rating categories are described in an Appendix to the SAI.
Unrated
Securities Risk. The investment adviser may internally assign ratings
to securities that are not rated by any nationally recognized statistical rating organization, after assessing their credit quality and
other factors, in categories similar to those of nationally recognized statistical rating organizations. There can be no assurance, nor
is it intended, that the investment adviser’s credit analysis process is consistent or comparable with the credit analysis process
used by a nationally recognized statistical rating organization. Unrated securities are considered “investment-grade” or “below-investment-grade”
if judged by the investment adviser to be comparable to rated investment-grade or below-investment-grade securities. The investment adviser’s
rating does not constitute a guarantee of the credit quality. In addition, some unrated securities may not have an active trading market
or may trade less actively than rated securities, which means that the Fund might have difficulty selling them promptly at an acceptable
price.
In
evaluating the credit quality of a particular security, whether rated or unrated,
the investment adviser will normally take into consideration a number of factors such as, if applicable, the financial resources of the
issuer, the underlying source of funds for debt service on a security, the issuer’s sensitivity to economic conditions and trends,
any operating history of the facility financed by the obligation, the degree of community support for the financed facility, the capabilities
of the issuer’s management, and regulatory factors affecting the issuer or the particular facility.
A
reduction in the rating of a security after the Fund buys it will not require
the Fund to dispose of the security. However, the investment adviser will evaluate such downgraded securities to determine whether to
keep them in the Fund’s portfolio.
Concentration
in Financial Securities Sector Risk. The Fund will not concentrate
its investments in issuers in any one industry, except that the Fund may invest without limit in instruments of the group of industries
in the financial securities sector. At times, the Fund may emphasize investments in some industries more than others. The Securities and
Exchange Commission has taken the position that investment of more than 25% of a fund’s total assets in issuers in the same industry
constitutes concentration in that industry. That limit does not apply to securities issued or guaranteed by the U.S. government or its
agencies and instrumentalities. The Fund will consider, to the extent practicable, the concentration of the portfolio securities of any
underlying investment companies in which it may invest when determining compliance with its concentration policy.
The
Fund regards the “issuer” of a loan as including the borrower under the
loan agreement, the agent bank and any intermediate participant. The Fund may look to the creditworthiness of the agent bank and other
intermediate participants in a loan, in addition to the borrower. That is because it may be necessary to assert through the agent bank
or intermediate participant any rights that may exist under the loan against the borrower if the borrower defaults. Those parties typically
are commercial banks, thrift institutions, insurance companies and finance companies (and
their
holding companies). The Fund will be subject to the risks associated with these financial institutions. Companies in the financial securities
industries may be more susceptible to particular economic and regulatory events such as fluctuations in interest rates, changes in the
monetary policy of the Board of Governors of the Federal Reserve System, governmental regulations concerning those industries and affecting
capital raising activities and fluctuations in the financial markets.
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.
Investing
in Stocks Risk. Common stock represents an ownership interest in
a company. It ranks below preferred stock and debt securities in claims for dividends and in claims for assets of the issuer in a liquidation
or bankruptcy. Common stocks may be exchange-traded or over-the-counter securities. Over-the-counter securities may be less liquid than
exchange-traded securities.
The
value of the Fund’s portfolio may be affected by changes in the stock
markets. Stocks and other equity securities fluctuate in price in response to changes to equity markets in general. Stock markets may
experience significant short-term volatility and may fall or rise sharply at times. Adverse events in any part of the equity or fixed-income
markets may have unexpected negative effects on other market segments. Different stock markets may behave differently from each other
and U.S. stock markets may move in the opposite direction from one or more foreign stock markets.
The
prices of individual stocks generally do not all move in the same direction
at the same time. However, individual stock prices tend to go up and down more dramatically than those of certain other types of investments,
such as bonds. A variety of factors can negatively affect the price of a particular company’s stock. These factors may include,
but are not limited to: poor earnings reports, a loss of customers, litigation against the company, general unfavorable performance of
the company’s sector or industry, or changes in government regulations affecting the company or its industry. To the extent that
securities of a particular type are emphasized (for example foreign stocks, stocks of small- or mid-cap companies, growth or
8 Invesco Master
Loan Fund
value
stocks, or stocks of companies in a particular industry), their share values may fluctuate more in response to events affecting the market
for those types of securities.
Preferred
Securities Risk. Preferred securities are subject to issuer-specific
and market risks applicable generally to equity securities. Preferred stock has a set dividend rate and ranks ahead of common stocks and
behind debt securities in claims for dividends and for assets of the issuer in a liquidation or bankruptcy. Preferred securities also
may be subordinated to bonds or other debt instruments in an issuer’s capital structure, subjecting them to a greater risk of non-payment
than these more senior securities. For this reason, the value of preferred securities will usually react more strongly than bonds and
other debt securities to actual or perceived changes in the company’s financial condition or prospects. Preferred securities may
be less liquid than many other securities, such as common stocks, and generally offer no voting rights with respect to the issuer.
Rights
and Warrants Risk. Rights and warrants may be purchased directly
or acquired as part of other securities. Warrants are options to purchase equity securities at a specific price during a specific period
of time. The price of a warrant does not necessarily move parallel to, and is generally more volatile than, the price of the underlying
security. Warrants may be significantly less valuable or worthless on their expiration date and may also be postponed or terminated early,
resulting in a partial or total loss. Rights are similar to warrants, but normally have a short duration and are distributed directly
by the issuer to its shareholders. Rights and warrants have no voting rights, receive no dividends and have no rights with respect to
the assets of the issuer. Warrants and rights are highly volatile and, therefore, more susceptible to sharp declines in value than the
underlying security might be. The market for rights or warrants may be very limited and it may be difficult to sell them promptly at an
acceptable price.
Convertible
Securities Risk. The market value of a convertible security performs
like that of a regular debt security; that is, if market interest rates rise, the value of a convertible security usually falls. In addition,
convertible securities are subject to the risk that the issuer will not be able to pay interest or dividends when due, and their market
value may change based on changes in the issuer’s credit rating or the market’s perception of the issuer’s creditworthiness.
Convertible securities can be converted into or exchanged for a set amount of common stock of an issuer within a particular period of
time at a specified price or according to a price formula. Convertible debt securities pay interest and convertible preferred stocks pay
dividends until they mature or are converted, exchanged or redeemed. Some convertible debt securities may be considered “equity
equivalents” because of the feature that makes them convertible into common stock. Since a convertible security derives a portion
of its value from the common stock into which it may be converted, a convertible security is also subject to the same types of market
and issuer risks that apply to the underlying common stock. In addition, certain convertible securities are subject to involuntary conversions
and may undergo principal write-downs upon the occurrence of certain triggering events. These convertible securities are subject to an
increased risk of loss and are generally subordinate in rank to other debt obligations of the issuer. Convertible securities may be rated
below investment grade, which are considered to have more speculative characteristics and greater susceptibility to default or decline
in market value than investment grade securities.
Warrants,
Equity Securities and Junior Debt Securities of the Borrower Risk.
Warrants, equity securities and junior debt securities have a subordinate claim on a Borrower’s assets as compared with Senior Loans.
As a result, the values of warrants, equity securities and junior debt securities generally are more dependent on the financial condition
of the Borrower and less dependent on fluctuations in interest rates than are the values of many debt securities. The values of warrants,
equity securities and junior debt securities may be more volatile than those of Senior Loans and thus may increase the volatility of the
Fund’s net asset value. Additionally, warrants may be significantly less valuable on their relevant expiration date
resulting
in a loss of money or they may expire worthless resulting in a total loss of the investment. Warrants may also be postponed or terminated
early resulting in a partial or total loss of the investment. Warrants may also be illiquid.
Derivatives
Risk. A derivative is an instrument whose value depends largely
on (and is derived from) the value of an underlying security, currency, commodity, interest rate, index or other asset (each referred
to as an underlying asset). In addition to risks relating to the underlying assets, the use of derivatives may include other, possibly
greater, risks, which are described below.
◾
Counterparty
Risk. Certain derivatives do not trade on an established exchange
(referred to as over-the-counter (OTC) derivatives) and are simply financial contracts between the Fund and a counterparty. When the Fund
is owed money on an OTC derivative, the Fund is dependent on the counterparty to pay or, in some cases, deliver the underlying asset,
unless the Fund can otherwise sell its derivative contract to a third party prior to its expiration. Many counterparties are financial
institutions such as banks and broker-dealers and their creditworthiness (and ability to pay or perform) may be negatively impacted by
factors affecting financial institutions generally. In addition, in the event that a counterparty becomes bankrupt or insolvent, the Fund’s
ability to recover the collateral that the Fund has on deposit with the counterparty could be delayed or impaired. For derivatives traded
on a centralized exchange, the Fund generally is dependent upon the solvency of the relevant exchange clearing house (which acts as a
guarantor for each contractual obligation under such derivatives) for payment on derivative instruments for which the Fund is owed money.
◾
Leverage
Risk. Many derivatives do not require a payment up front equal
to the economic exposure created by holding a position in the derivative, which creates a form of leverage. As a result, an adverse change
in the value of the underlying asset could result in the Fund sustaining a loss that is substantially greater than the amount invested
in the derivative or the anticipated value of the underlying asset. In addition,
some derivatives have the potential for unlimited loss, regardless
of the size of the Fund’s initial investment. Leverage may therefore make the Fund’s returns more volatile and increase
the risk of loss. In certain market conditions, losses on derivative
instruments can grow larger while the value of the Fund’s other assets fall, resulting in the Fund’s derivative positions
becoming a larger percentage of the Fund’s investments.
◾
Liquidity
Risk. There is a smaller pool of buyers and sellers for certain
derivatives, particularly OTC derivatives, than more traditional investments such as stocks. These buyers and sellers are often financial
institutions that may be unable or unwilling to buy or sell derivatives during times of financial or market stress. Derivative instruments
may therefore be less liquid than more traditional investments and the Fund may be unable to sell or exit its derivative positions at
a desirable time or price. This risk may be more acute under adverse market conditions, during which the Fund may be most in need of liquidating
its derivative positions. To the extent that the Fund is unable to exit a derivative position because of market illiquidity, the Fund
may not be able to prevent further losses of value in its derivatives holdings and the liquidity of the Fund and its ability to meet redemption
requests may be impaired to the extent that a substantial portion of the Fund’s otherwise liquid assets must be used as margin.
Another consequence of illiquidity is that the Fund may be required to hold a derivative instrument to maturity and take or make delivery
of the underlying asset that the Adviser would otherwise avoid.
◾
Forward
Contracts Risk. The projection of short-term currency market movements
is extremely difficult, and the successful execution of a short-term hedging strategy is highly uncertain. The precise matching of the
amounts under forward contracts and the value of the
9 Invesco Master
Loan Fund
securities
involved generally will not be possible because the future value of securities denominated in foreign currencies will change as a consequence
of market movements between the date the forward contract is entered into and the date it is sold. Investments in forward contracts involve
the risk that anticipated currency movements will not be accurately predicted, causing the Fund to sustain losses on these contracts and
to pay additional transaction costs.
◾
Futures
Contracts Risk. The volatility of futures contracts prices has
been historically greater than the volatility of stocks and bonds. The liquidity of the futures market depends on participants entering
into offsetting transactions rather than making or taking delivery. To the extent participants decide to make or take delivery, liquidity
in the futures market could be reduced. In addition, futures exchanges often impose a maximum permissible price movement on each futures
contract for each trading session. The Fund may be disadvantaged if it is prohibited from executing a trade outside the daily permissible
price movement.
◾
Swap
Transactions Risk. Under U.S. financial reform legislation enacted
in 2010, certain types of swaps are required to be executed on a regulated market and cleared through a central clearing house counterparty,
which may entail further risks and costs for the Fund. Swap agreements are privately negotiated in the over-the-counter market and
may be entered into as a bilateral contract or may be centrally cleared. In a centrally cleared swap, immediately following execution
of the swap agreement, the swap agreement is submitted for clearing to a central clearing house counterparty, and the Fund faces the central
clearing house counterparty by means of an account with a futures commission merchant that is a member of the clearing house.
◾
Other
Risks. Compared to other types of investments, derivatives may
be harder to value and may also be less tax efficient, as described under the “Taxes” section of the prospectus. In addition,
changes in government regulation of derivative instruments could affect the character, timing and amount of the Fund’s taxable income
or gains, and may limit or prevent the Fund from using certain types of derivative instruments as a part of its investment strategy, which
could make the investment strategy more costly to implement or require the Fund to change its investment strategy. Derivatives strategies
may not always be successful. For example, to the extent that the Fund uses derivatives for hedging or to gain or limit exposure to a
particular market or market segment, there may be imperfect correlation between the value of the derivative instrument and the value of
the instrument being hedged or the relevant market or market segment, in which case the Fund may not realize the intended benefits. There
is also the risk that during adverse market conditions, an instrument which would usually operate as a hedge provides no hedging benefits
at all. The Fund’s use of derivatives may be limited by the requirements for taxation of the Fund as a regulated investment company.
Liquidity
Risk. The Fund may be unable to sell illiquid investments at the
time or price it desires and, as a result, could lose its entire investment in such investments. An investment may be illiquid due to
a lack of trading volume in the investment or if the investment is privately placed and not traded in any public market or is otherwise
restricted from trading. Liquid securities can become illiquid during periods of market stress. If a significant amount of the Fund’s
securities become illiquid, the Fund may not be able to timely pay redemption proceeds and may need to sell securities at significantly
reduced prices.
Borrowing
Risk. Borrowing money to buy securities exposes the Fund to leverage
because the Fund seeks to achieve a return on a capital base larger than the assets that shareholders have contributed to the Fund. Borrowing
will cause the Fund’s share price to be more volatile because leverage will exaggerate the effect of any increase or decrease in
the value of the Fund’s portfolio securities. The Fund may also be required to liquidate
positions
when it may not be advantageous to do so in order to repay borrowed money when due. In addition, the Fund will incur interest expenses
and other fees on borrowed money. There can be no assurance that the Fund’s borrowing strategy will enhance and not reduce the Fund’s
returns.
Environmental,
Social and Governance (ESG) Considerations Risk. The ESG considerations
that may be assessed as part of a credit research process to implement the Fund's investment strategy in pursuit of its investment objective
may vary, and not every ESG factor may be identified or evaluated for every investment, and not every investment or issuer may be evaluated
for ESG considerations. The incorporation of ESG factors as part of a credit analysis may affect the Fund’s exposure to certain
issuers or industries and may not work as intended. The Fund may underperform other funds that do not incorporate ESG factors or that
use a different methodology to identify and/or incorporate ESG factors. Information used to evaluate such factors may not be readily available,
complete or accurate, and may vary across providers and issuers as ESG is not a uniformly defined characteristic, which could negatively
impact the ability to accurately assess credit quality, which could negatively impact the Fund’s performance. There is no guarantee
that the incorporation of ESG considerations will be additive to the Fund’s performance.
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.
Fund Management
The
Adviser(s)
Invesco
Advisers, Inc. serves as the Fund’s investment adviser. The Adviser manages the investment operations of the Fund as well as other
investment portfolios that encompass a broad range of investment objectives, and has agreed to perform or arrange for the performance
of the Fund’s day-to-day management. The Adviser is located at 1555 Peachtree Street, N.E., Atlanta, Georgia 30309. The Adviser,
as successor in interest to multiple investment advisers, has been an investment adviser since 1976.
Invesco
Senior Secured Management, Inc. (Invesco Senior Secured) serves
as the Fund’s investment sub-adviser. Invesco Senior Secured, an affiliate of the Adviser, is located at 225 Liberty Street, New
York, New York 10281. Invesco Senior Secured has experience managing senior secured loans dating back to 1990. Invesco Senior Secured
manages a broad array of portfolio types including retail mutual funds, commingled institutional funds, separate accounts and structured
products for a variety of retail and institutional investors (both public and private). Invesco Senior Secured provides portfolio management
services to the Fund.
In
addition, Invesco has entered into one or more Sub-Advisory Agreements
with certain affiliates to serve as sub-advisers to the Fund (the Sub-Advisers). Invesco may appoint the Sub-Advisers from time to time
to provide discretionary investment management services, investment advice, and/or order execution services to the Fund. The Sub-Advisers
and the Sub-Advisory Agreements are described in the SAI.
Potential
New Sub-Advisers (Exemptive Order Structure). The SEC has also
granted exemptive relief that permits the Adviser, subject to certain conditions, to enter into new sub-advisory agreements with affiliated
or
10 Invesco Master
Loan Fund
unaffiliated
sub-advisers on behalf of the Fund without shareholder approval. The exemptive relief also permits material amendments to existing sub-advisory
agreements with affiliated or unaffiliated sub-advisers (including the Sub-Advisory Agreements with the Sub-Advisers) without shareholder
approval. Under this structure, the Adviser has ultimate responsibility, subject to oversight of the Board, for overseeing such sub-advisers
and recommending to the Board their hiring, termination, or replacement. The structure does not permit investment advisory fees paid by
the Fund to be increased without shareholder approval, or change the Adviser's obligations under the investment advisory agreement, including
the Adviser's responsibility to monitor and oversee sub-advisory services furnished to the Fund.
Exclusion
of Adviser from Commodity Pool Operator Definition
With
respect to the Fund, the Adviser has claimed an exclusion from the definition of “commodity pool operator” (CPO) under the
Commodity Exchange Act (CEA) and the rules of the Commodity Futures Trading Commission (CFTC) and, therefore, is not subject to CFTC registration
or regulation as a CPO. In addition, the Adviser is relying upon a related exclusion from the definition of “commodity trading advisor”
(CTA) under the CEA and the rules of the CFTC with respect to the Fund.
The
terms of the CPO exclusion require the Fund, among other things, to
adhere to certain limits on its investments in “commodity interests.” Commodity interests include commodity futures, commodity
options and swaps, which in turn include non-deliverable forwards. The Fund is permitted to invest in these instruments as further described
in the Fund’s SAI. However, the Fund is not intended as a vehicle for trading in the commodity futures, commodity options or swaps
markets. The CFTC has neither reviewed nor approved the Adviser’s reliance on these exclusions, or the Fund, its investment strategies
or this prospectus.
Adviser
Compensation
During
the fiscal year ended August 31, 2022, the Adviser received compensation of 0.28% of the Fund’s average daily net assets, after
fee waiver and/or expense reimbursement, if any. The advisory fee payable by the Fund shall be reduced by any amounts paid by the Fund
under the administrative services agreement with the Adviser.
Invesco,
not the Fund, pays sub-advisory fees, 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
Investment
management decisions for the Fund are made by the investment management team at Invesco Senior Secured.
The
following individuals are jointly and primarily responsible for the day-to-day
management of the Fund’s portfolio:
◾
David
Lukkes, CFA (lead manager), Portfolio Manager, who has been responsible for the Fund since 2019 and has been associated with Invesco Senior
Secured and/or its affiliates since 2019. Prior to the commencement of the Fund’s operations, Mr. Lukkes managed the predecessor
fund since 2015 and was associated with OppenheimerFunds, a global asset management firm, since 2008.
◾
Thomas
Ewald, Portfolio Manager, who has been responsible for the Fund since 2020 and has been associated with Invesco Senior Secured and/or
its affiliates since 2000.
◾
Philip
Yarrow, CFA, Portfolio Manager, who has been responsible for the Fund since 2020 and has been associated with Invesco Senior Secured 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
Tax
Consequences
The
Fund intends to operate as a partnership for federal income tax purposes. Accordingly, the Fund generally will not be subject to any federal
income tax. Based upon the status of the Fund as a partnership, each investor will take into account its allocated share of the Fund’s
income, capital gains, losses, deductions and credits in determining its income tax liability, without regard to whether it has distributed
or will distribute any amount to its investors. The determination of an investor’s share of the Fund’s income, capital gains,
losses, deductions and credits will be made in accordance with the Internal Revenue Code of 1986, as amended, and regulations promulgated
thereunder.
11 Invesco Master
Loan Fund
Financial Highlights
The financial
highlights information presented for the Fund includes the financial history of the predecessor fund, which was reorganized into the Fund
after the close of business on May 24, 2019. The financial highlights show the Fund’s and predecessor fund’s financial history
for the past five fiscal years or, if shorter, the applicable period of operations since the inception of the Fund or predecessor fund.
The financial highlights table is intended to help you understand the Fund’s and the predecessor fund’s financial performance.
Certain information reflects financial results for a single Fund share.
The
total returns in the table represent the rate that an investor would have
earned (or lost) on an investment in the Fund or predecessor fund (assuming reinvestment of all dividends and distributions). The information
for the fiscal years ended after May 24, 2019 has been audited by PricewaterhouseCoopers LLP, an independent registered public accounting
firm, whose report, along with the Fund’s financial statements, is included in the Fund’s annual report, which is available
upon request. The information for fiscal years ended prior to May 24, 2019 has been audited by the predecessor fund’s auditor.
|
|
Net
asset
value,
beginning
of
period |
Net
investment
income(a)
|
Net
gains
(losses)
on
securities
(both
realized
and
unrealized)
|
Total
from
investment
operations
|
Dividends
from
net
investment
income
|
Net
asset
value,
end
of
period |
Total
return(b)
|
Net
assets,
end
of period
(000's
omitted) |
Ratio
of
expenses
to
average
net
assets
with
fee
waivers
and/or
expenses
absorbed
|
Ratio
of
expenses
to
average net
assets
without
fee
waivers
and/or
expenses
absorbed(c)
|
Supplemental
ratio
of
expenses
to
average
net
assets
with
fee waivers
(excluding
interest,
facilities
and
maintenance
fees)
|
Ratio
of net
investment
income
to
average
net
assets |
Portfolio
turnover
(d)
|
|
Class
R6 | |||||||||||||
|
Year
ended 08/31/22 |
$16.07
|
$0.87
|
$(0.70)
|
$0.17
|
$(0.86)
|
$15.38
|
1.11%
|
$176,319
|
0.51%
|
0.51%
|
0.46%
|
5.49%
|
58%
|
|
Year
ended 08/31/21 |
15.15
|
0.78
|
0.91
|
1.69
|
(0.77)
|
16.07
|
11.46
|
199,091
|
0.50
|
0.59
|
0.38
|
4.99
|
89
|
|
Year
ended 08/31/20 |
17.21
|
0.85
|
(2.40)
|
(1.55)
|
(0.51)
|
15.15
|
(8.97)
|
179,282
|
0.69
|
0.69
|
0.50
|
5.17
|
53
|
|
Eleven
months ended 08/31/19 |
17.56
|
0.94
|
(1.29)
|
(0.35)
|
—
|
17.21
|
(1.99)
|
667,514
|
0.50(e)
|
0.50(e)
|
0.36(e)
|
5.90(e)
|
42
|
|
Year
ended 09/30/18 |
16.58
|
0.94
|
0.04
|
0.98
|
—
|
17.56
|
5.91
|
1,352,914
|
0.36
|
0.37
|
0.36
|
5.52
|
66
|
|
Year
ended 09/30/17 |
15.61
|
0.92
|
0.05
|
0.97
|
—
|
16.58
|
6.21
|
1,558,751
|
0.35
|
0.36
|
0.35
|
5.63
|
80
|
|
| |||||||||||||
|
(a)
|
Calculated
using average shares outstanding. |
|
(b)
|
Assumes
an initial investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in
additional shares on the reinvestment date, and
redemption
at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns.
Total returns are not annualized for periods less than
one
full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund
shares. |
|
(c)
|
Does
not include indirect expenses from affiliated fund fees and expenses of 0.00%, 0.01% and 0.01% for the eleven months ended August 31,
2019 and the years ended September 30, 2018
and
2017, respectively. |
|
(d)
|
Portfolio
turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
|
(e)
|
Annualized.
|
12 Invesco Master
Loan 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 all of the Invesco Funds and their share classes that have different fees and expenses.
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 |
|
|
▪ 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) |
A-1 The
Invesco Funds
MCF—12/22
|
Share
Classes |
|
|
|
|
|
Class
A |
Class
C |
Class
R |
Class
Y |
Class
R5 and R6 |
|
|
▪ 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 International Core Equity 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 a specific
Fund may make additional purchases into Class AX and CX, respectively, of such specific Fund. All references in this “Shareholder
Account Information” section of this prospectus to Class A, C or R shares of the Invesco Funds shall include Class AX
(excluding Invesco Government Money Market Fund), or CX shares, respectively, of the Invesco Funds, unless otherwise noted. All references
in this “Shareholder Account Information” section of this prospectus to Invesco Cash Reserve Shares of Invesco Government
Money Market Fund shall include Class AX shares of Invesco Government Money Market Fund, unless otherwise noted.
Class P
Shares
In
addition to the other share classes discussed herein, the Invesco Summit Fund offers Class P shares, which were historically sold
only through the AIM Summit Investors Plans I and II (each a Plan and, collectively, the Summit Plans). Class P shares are sold with
no initial sales charge and have a 12b-1 fee of 0.10%. However, Class P shares are not sold to members of the general public. Only
shareholders who had accounts in the Summit Plans at the close of business on December 8, 2006 may purchase Class P shares and
only until the total of their combined investments in the Summit Plans and in Class P shares directly equals the face amount of their
former Plan under the 30 year extended investment option. The face amount of a Plan is the combined total of all scheduled monthly
investments under the Plan. For a Plan with a scheduled monthly investment of $100.00, the face amount would have been $36,000.00 under
the 30 year extended investment option.
Class R
Shares
Class R
shares are intended for 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 (except for the Invesco Master Loan Fund) are available for use by Employer Sponsored Retirement and Benefit
Plans, held either at the plan level or through omnibus accounts, that generally process no more than one net redemption and one net purchase
transaction each day.
Class
R5 and R6 shares of the Funds are also available to institutional investors.
Institutional investors are: banks, trust companies, collective trust funds, entities acting for the account of a public entity (e.g.,
Taft-Hartley funds, states, cities or government agencies), funds of funds or other pooled investment vehicles, 529 college savings plans,
financial intermediaries and corporations investing for their own accounts, endowments and foundations. For information regarding investment
minimums for Class R5 and R6 shares, please see “Minimum Investments” below.
Class
R6 shares of the Funds are also available through an intermediary that
has agreed with Invesco Distributors, Inc. to make such shares
A-2 The
Invesco Funds
available
for use in retail omnibus accounts that generally process no more than one net redemption and one net purchase transaction each day.
The
Invesco Master Loan Fund is only available for purchase by other Funds
in the Invesco fund family and other Invesco pooled investment vehicles.
Shareholders
eligible to purchase Class R6 Shares must meet the requirements
specified by their intermediary. Not all intermediaries offer Class R6 Shares to their customers.
Class S
Shares
Class S
shares are limited to investors who purchase shares with the proceeds received from a systematic contractual investment plan redemption
within the 12 months prior to purchasing Class S shares, and who purchase through an approved financial intermediary that has
an agreement with the distributor to sell Class S shares. Class S shares are not otherwise sold to members of the general public.
An investor purchasing Class S shares will not pay an initial sales charge. The investor will no longer be eligible to purchase additional
Class S shares at that point where the value of the contributions to the prior systematic contractual investment plan combined with
the subsequent Class S share contributions equals the face amount of what would have been the investor’s systematic contractual
investment plan under the 30-year investment option. The face amount of a systematic contractual investment plan is the combined total
of all scheduled monthly investments under that plan. For a plan with a scheduled monthly investment of $100.00, the face amount would
have been $36,000.00 under the 30-year extended investment option.
Class Y
Shares
Class
Y shares are available to (i) investors who purchase through an account that is charged an asset-based fee or commission by a financial
intermediary, including through brokerage platforms, where a broker is acting as the investor’s agent, that may require the payment
by the investor of a commission and/or other form of compensation to that broker, (ii) endowments, foundations, or Employer Sponsored
Retirement and Benefit Plans (with the exception of “Solo 401(k)” Plans and 403(b) custodial accounts held directly at Invesco),
(iii) banks or bank trust departments acting on their own behalf or as trustee or manager for trust accounts, or (iv) any current, former
or retired trustee, director, officer or employee (or immediate family members of a current, former or retired trustee, director, officer
or employee) of any Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
Subject
to any conditions or limitations imposed on the servicing of Class
Y shares by your financial adviser, if you received Class Y shares as a result of a merger or reorganization of a predecessor fund into
any of the Funds, you will be permitted to make additional Class Y share purchases. In addition, you will be permitted to make additional
Class Y shares purchases if you owned Class Y shares in a “Solo 401(k)” Plan or 403(b) custodial account held directly at
Invesco if you held such shares in your account on or prior to May 24, 2019.
Investor
Class Shares
Investor
Class shares are sold with no initial sales charge and have a maximum 12b-1 fee of 0.25%. Only the following persons may purchase Investor
Class shares:
◾
Investors
who established accounts prior to April 1, 2002, in Investor Class shares with Invesco Distributors, Inc. (Invesco Distributors) who have
continuously maintained an account in Investor Class shares (this includes anyone listed in the registration of an account, such as a
joint owner, trustee or custodian, and immediate family members of such persons) without a designated intermediary. These investors are
referred to as “Investor Class grandfathered investors.”
◾
Customers
of a financial intermediary that has had an agreement with the Funds’ distributor or any Funds that offered Investor Class shares
prior to April 1, 2002, that has continuously maintained such agreement. These intermediaries are referred to as “Investor
Class grandfathered intermediaries.”
◾
Any
current, former or retired trustee, director, officer or employee (or immediate family member of a current, former or retired trustee,
director, officer or employee) of any Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
For
additional shareholder eligibility requirements with respect to Invesco
Premier Portfolio, please see “Shareholder Account Information – Purchasing Shares and Shareholder Eligibility – Invesco
Premier Portfolio.”
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.
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 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
A-4 The
Invesco Funds
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.
Merrill
Lynch
Shareholders
purchasing Fund shares through a Merrill
Lynch platform
or account will be eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at Merrill Lynch
◾
Employer-sponsored
retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to fund those plans,
provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the plan;
◾
Shares
purchased by a 529 Plan (does not include 529 Plan unit or 529-specific share classes or equivalents);
◾
Shares
purchased through a Merrill Lynch affiliated investment advisory program;
◾
Shares
exchanged due to the holdings moving from a Merrill Lynch affiliated investment advisory program to a Merrill Lynch brokerage (non-advisory)
account pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers;
◾
Shares
purchased by third party investment advisors on behalf of their advisory clients through Merrill Lynch’s platform;
◾
Shares
of funds purchased through the Merrill Edge Self-Directed platform (if applicable);
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not
any other fund within the fund family);
◾
Shares
exchanged from Class C (i.e.
level-load) shares of the same fund pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers;
◾
Employees
and registered representatives of Merrill Lynch or its affiliates and their family members;
◾
Directors
or Trustees of the Fund, and employees of the Fund’s investment adviser or any of its affiliates, as described in this prospectus;
and
◾
Eligible
shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days
following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to
a front-end or deferred sales load (known as Rights of Reinstatement). Automated transactions (i.e. systematic purchases and withdrawals)
and purchases made after shares are automatically sold to pay Merrill Lynch’s account maintenance fees are not eligible for reinstatement.
◾
CDSC
Waivers on A and C Shares available at Merrill Lynch
◾
Death
or disability of the shareholder;
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund’s prospectus;
◾
Return
of excess contributions from an IRA Account;
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts pursuant to the Internal Revenue Code;
◾
Shares
sold to pay Merrill Lynch fees but only if the transaction is initiated by Merrill Lynch;
◾
Shares
acquired through a right of reinstatement;
◾
Shares
held in retirement brokerage accounts, that are converted to a lower cost share class due to transfer to a fee based account or platform
(applicable to A and C shares only); and
◾
Shares
received through an exchange due to the holdings moving from a Merrill Lynch affiliated investment advisory program to a Merrill Lynch
brokerage (non-advisory) account pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers.
◾
Front-end
load Discounts Available at Merrill Lynch: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this prospectus;
◾
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts as described in the Fund’s prospectus will be automatically
calculated based on the aggregated holding of fund family assets held by accounts (including 529 program holdings, where applicable) within
the purchaser’s household at Merrill Lynch. Eligible fund family assets not held at Merrill Lynch may be included in the ROA calculation
only if the shareholder notifies his or her financial advisor about such assets; and
◾
Letters
of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Merrill Lynch, over
a 13-month period of time (if applicable).
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).
A-5 The
Invesco Funds
Morgan
Stanley Wealth Management
Shareholders
purchasing Fund shares through a Morgan Stanley
Wealth Management transactional brokerage account will be eligible
only for the following front-end sales charge waivers with respect to Class A shares, which may differ from and may be more limited than
those disclosed elsewhere in this Fund’s Prospectus or SAI.
◾
Front-end
Sales Charge Waivers on Class A Shares available at Morgan Stanley Wealth Management
◾
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and
defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs, SAR-SEPs
or Keogh plans;
◾
Morgan
Stanley employee and employee-related accounts according to Morgan Stanley’s account linking rules;
◾
Shares
purchased through reinvestment of dividends and capital gains distributions when purchasing shares of the same fund;
◾
Shares
purchased through a Morgan Stanley self-directed brokerage account;
◾
Class
C (i.e., level-load) shares that are no longer subject to a contingent deferred sales charge and are converted to Class A shares of the
same fund pursuant to Morgan Stanley Wealth Management’s share class conversion program; and
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (i) the repurchase occurs within 90 days following the
redemption, (ii) the redemption and purchase occur in the same account, and (iii) redeemed shares were subject to a front-end or deferred
sales charge.
Raymond
James Financial Services, Inc.
Shareholders
purchasing Fund shares through a Raymond
James Financial Services, Inc., Raymond James affiliates and each
entity’s affiliates (Raymond James) platform or account, or through an introducing broker-dealer or independent registered investment
adviser for which Raymond James provides trade execution, clearance, and/or custody services, will be eligible only for the following
load waivers (front-end sales charge waivers and contingent deferred, or back-end, sales charge waivers) and discounts, which may differ
from those disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
sales load waivers on Class A shares available at Raymond James
◾
Shares
purchased in an investment advisory program.
◾
Shares
purchased within the same fund family through a systematic reinvestment of capital gains distributions and dividend distributions.
◾
Employees
and registered representatives of Raymond James or its affiliates and their family members as designated by Raymond James.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (known as Rights of Reinstatement).
◾
A
shareholder in the Fund’s Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate
share class) of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures
of Raymond James.
◾
CDSC
Waivers on Classes A and C shares available at Raymond James
◾
Death
or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the fund’s prospectus.
◾
Return
of excess contributions from an IRA Account.
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based
on applicable IRS regulations as described in the fund’s prospectus.
◾
Shares
sold to pay Raymond James fees but only if the transaction is initiated by Raymond James.
◾
Shares
acquired through a right of reinstatement.
◾
Front-end
load discounts available at Raymond James: breakpoints, rights of accumulation, and/or letters of intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of
fund family assets held by accounts within the purchaser’s household at Raymond James. Eligible fund family assets not held at Raymond
James may be included in the calculation of rights of accumulation only if the shareholder notifies his or her financial advisor about
such assets.
◾
Letters
of intent which allow for breakpoint discounts based on anticipated purchases within a fund family, over a 13-month time period. Eligible
fund family assets not held at Raymond James may be included in the calculation of letters of intent only if the shareholder notifies
his or her financial advisor about such assets.
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.
A-6 The
Invesco Funds
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.
◾
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.
Oppenheimer
& Co. Inc. (“OPCO”)
Shareholders
purchasing Fund shares through an OPCO
platform or account are eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund's prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at OPCO
◾
Employer-sponsored
retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to
fund
those plans, provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the
plan
◾
Shares
purchased by or through a 529 Plan
◾
Shares
purchased through an OPCO affiliated investment advisory program
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not
any other fund within the fund family)
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (known as Rights of Reinstatement).
◾
A
shareholder in the Fund's Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate share
class) of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures of OPCO
◾
Employees
and registered representatives of OPCO or its affiliates and their family members
◾
Directors
or Trustees of the Fund, and employees of the Fund's investment adviser or any of its affiliates, as described in this prospectus
◾
CDSC
Waivers on A and C Shares available at OPCO
◾
Death
or disability of the shareholder
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund's prospectus
◾
Return
of excess contributions from an IRA Account
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based
on applicable IRS regulations as described in the prospectus
◾
Shares
sold to pay OPCO fees but only if the transaction is initiated by OPCO Shares acquired through a right of reinstatement
◾
Front-end
load Discounts Available at OPCO: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding
of fund family assets held by accounts within the purchaser's household at OPCO. Eligible fund family assets not held at OPCO may be included
in the ROA calculation only if the shareholder notifies his or her financial advisor about such assets.
Robert
W. Baird & Co. Incorporated (“Baird”)
Shareholders
purchasing fund shares through a Baird
platform or account will only be eligible for the following sales charge waivers (front-end sales charge waivers and CDSC waivers) and
discounts, which may differ from those disclosed elsewhere in this prospectus or the SAI.
◾
Front-End
Sales Charge Waivers on Class A-shares Available at Baird
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund.
◾
Shares
purchased by employees and registered representatives of Baird or its affiliate and their family members as designated by Baird.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales charge (known as rights of reinstatement).
◾
A
shareholder in the Fund’s Class C Shares will have their shares converted at net asset value to Class A shares of the fund if the
shares are no longer subject to CDSC and the conversion is in line with the policies and procedures of Baird.
◾
Employer-sponsored
retirement plans or charitable accounts in a transactional brokerage account at Baird, including 401(k) plans, 457 plans, employer-sponsored
403(b) plans, profit sharing and money
A-7 The
Invesco Funds
purchase
pension plans and defined benefit plans. For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs,
Simple IRAs or SAR-SEPs.
◾
CDSC
Waivers on Classes A and C shares Available at Baird
◾
Shares
sold due to death or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund’s Prospectus.
◾
Return
of excess contributions from an IRA Account.
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching age 72 as described in
the Fund’s prospectus.
◾
Shares
sold to pay Baird fees but only if the transaction is initiated by Baird.
◾
Shares
acquired through a right of reinstatement.
◾
Front-End
Sales Charge Discounts Available at Baird: Breakpoints, Rights of Accumulation and/or letters of intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of
fund family assets held by accounts within the purchaser’s household at Baird. Eligible fund family assets not held at Baird may
be included in the rights of accumulation calculation only if the shareholder notifies his or her financial advisor about such assets.
◾
Letters
of Intent (LOI) allow for breakpoint discounts based on anticipated purchases of within a fund family through Baird, over a 13-month period
of time.
Edward
D. Jones & Co., L.P. (“Edward Jones”)
Policies
Regarding Transactions Through Edward Jones
The
following information has been provided by Edward Jones:
The
following information supersedes prior information with respect to transactions
and positions held in fund shares through an Edward Jones system. Shareholders purchasing Fund shares through the Edward
Jones commission
and fee-based platforms will be eligible for the following load waivers (front- end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund's prospectus or statement of additional
information (“SAI”). 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 (including holdings of 529 Plans where Invesco serves as primary distributor), 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.
◾
Front-end
sales load waivers on Class A shares available at Edward Jones
◾
Associates
of Edward Jones and its affiliates and their family members who are 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: 1) the proceeds are
from the sale of shares within 60 days of the purchase, and 2) the sale and purchase are made in the same share class and the same account
or the purchase is made in an individual retirement account with proceeds from liquidations in a non-retirement account.
◾
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.
◾
CDSC
Waivers on Classes A and C shares available at Edward Jones
◾
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
sold 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 the qualified age based on applicable IRS regulations.
◾
Shares
sold 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 Minimum Balances, as described below.
◾
Front-end
load discounts available at Edward Jones: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoint
pricing, otherwise known as volume pricing, at dollar thresholds as described in the prospectus.
◾
Rights
of Accumulation (“ROA”) which entitles the shareholder to the applicable sales charge on a purchase of Class A shares will
be determined by taking into account all share classes (except certain money market funds and any assets held in group retirement plans)
of Invesco Funds (including holdings of 529 Plans where Invesco serves as primary distributor) 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).
◾
Letters
of Intent (“LOI”) allow shareholders to receive 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.
Other
Important Information Regarding Transactions Through Edward
Jones
Minimum
Purchase Amounts
•
Initial
purchase minimum: $250
•
Subsequent
purchase minimum: none
A-8 The
Invesco Funds
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.
Stifel,
Nicolaus & Company (“Stifel”)
Shareholders
purchasing Fund shares through a Stifel
platform or account will be eligible only for the following front-end sales charge waivers and discounts, which may differ from those
disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at Stifel: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this 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 Stifel. Eligible
fund family assets not held at Stifel may be included in the ROA calculation only if the shareholder notifies his or her financial advisor
about such assets; and
◾
Letters
of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Stifel, over a 13-month
period of time (if applicable).
◾
Shares
converted from Class C (i.e. level-load) shares of the same fund pursuant to Stifel policies relating to sales load discounts and waivers.
PFS
Investments Inc. (“PFSI”)
Policies
Regarding Transactions Through PFSI
The
following information supersedes all prior information with respect to transactions and positions held in fund shares purchased through
PFSI and held on the mutual fund platform of its affiliate, Primerica Shareholder Services (“PSS”). Clients of PFSI (also
referred to as “shareholders”) purchasing fund shares on the PSS platform are eligible only for the following share classes,
sales charge discounts (also referred to as “breakpoints”) and waivers, which can differ from share classes, discounts and
waivers described elsewhere in this prospectus or the related statement of additional information (“SAI”) or through another
broker-dealer. In all instances, it is the shareholder’s responsibility to inform PFSI at the time of a purchase of all holdings
of Invesco Funds on the PSS platform, or other facts qualifying the purchaser for discounts or waivers. PFSI may request reasonable documentation
of such facts, and condition the granting of any discount or waiver on the timely receipt of such documents. Shareholders should contact
PSS if they have questions regarding their eligibility for these discounts and waivers.
Share
Classes
◾
Class
A shares: in non-retirement accounts, individual retirement accounts (IRA), SEP IRAs, SIMPLE IRAs, Keogh Plans, and all other account
types unless expressly provided for below.
◾
Class
C shares: only in accounts with existing Class C share holdings.
Breakpoints
◾
Breakpoint
pricing at dollar thresholds as described in the prospectus of the fund you are purchasing.
Rights
of Accumulation (“ROA”)
◾
The
applicable sales charge on a purchase of Class A shares is determined by taking into account all share classes (except any assets held
in group retirement plans) of Invesco Funds held by the shareholder on the PSS Platform. The inclusion of eligible fund family assets
in the ROA calculation is dependent on the shareholder notifying PFSI of such assets at the time of calculation. Shares of money market
funds are
included
only if such shares were acquired in exchange for shares of another Invesco Fund purchased with a sales charge. No shares of Invesco Funds
held by the shareholder away from the PSS platform will be granted ROA with shares of any Invesco Fund purchased on the PSS platform.
◾
Any
SEP IRA plan, any SIMPLE IRA plan or any Payroll Deduction plan (“PDP”) on the PSS platform will be defaulted to plan-level
grouping for purposes of ROA, which allows each participating employee ROA with all other eligible shares held in plan accounts on the
PSS platform. At any time, a participating employee may elect to exercise a one-time option to change grouping for purposes of ROA to
shareholder- level grouping, which allows the plan account of the electing employee ROA with her other eligible holdings on the PSS platform,
but not with all other eligible participant holdings in the plan. Eligible shares held in plan accounts electing shareholder-level grouping
will not be available for purposes of ROA to plan accounts electing plan-level grouping.
◾
ROA
is determined by calculating the higher of cost minus redemptions or current market value (current shares x NAV).
Letter
of Intent (“LOI”)
◾
By
executing a LOI, shareholders can receive the sales charge and breakpoint discounts for purchases shareholders intend to make over a 13-month
period through PFSI, from the date PSS receives the LOI. The purchase price of the LOI is determined by calculating the higher of cost
or market value of qualifying holdings at LOI initiation in combination with the dollar amount the shareholder intends to invest over
a 13-month period to arrive at total investment for purposes of determining any breakpoint discount and the applicable front-end sales
charge. Each purchase the shareholder makes during that 13-month period will receive the sales charge and breakpoint discount that applies
to the projected total investment.
◾
Only
holdings of Invesco Funds on the PSS platform are eligible for inclusion in the LOI calculation and the shareholder must notify PFSI of
all eligible assets at the time of calculation.
◾
Purchases
made before the LOI is received by PSS are not adjusted under the LOI, and the LOI will not reduce any sales charge previously paid. Sales
charges will be automatically adjusted if the total purchases required by the LOI are not met.
◾
If
an employer maintaining a SEP IRA plan, SIMPLE IRA plan or non-IRA PDP on the PSS platform has elected to establish or change ROA for
the accounts associated with the plan to a plan-level grouping, LOIs will also be at the plan-level and may only be established by the
employer. LOIs are not available to PDP IRA plans on the PSS platform with plan-level grouping for purposes of ROA, but are available
to any participating employee that elects shareholder-level grouping for purposes of ROA.
Sales
Charge Waivers
Sales
charges are waived for the following shareholders and in the following
situations:
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment.
◾
Shares
purchased with the proceeds of redeemed shares of the same fund family so long as the following conditions are met: 1) the proceeds are
from the sale of shares within 90 days of the purchase, 2) the sale and purchase are made in the same share class and the same account
or the purchase is made in an individual retirement account with proceeds from liquidations in a non-retirement account, and 3) the redeemed
shares were subject to a front-end or deferred sales load, Automated transactions (i.e. systematic purchases and withdrawals), full or
partial transfers or rollovers of retirement accounts, and purchases made after shares are automatically sold to pay account maintenance
fees are not eligible for this sales charge waiver.
◾
Shares
exchanged into Class A shares from another share class so long as the exchange is into the same fund and was initiated at the discretion
of PFSI. PFSI is responsible for any remaining CDSC due to the fund company, if applicable. Any future purchases are subject to the applicable
sales charge as disclosed in the prospectus.
Policies
Regarding Fund Purchases Through PFSI That Are Not Held
on the PSS Platform
A-9 The
Invesco Funds
◾
Class
R shares
are available through PFSI only in 401(k) plans covering a business owner with no employees, commonly referred to as a one-participant
401(k) plan or solo 401(k).
UBS
Financial Services Inc. (“UBS”)
Pursuant
to an agreement with the Distributor, UBS may offer Class Y
shares
to its retail brokerage clients whose shares are held in omnibus
accounts at UBS, or its designee. For these clients, UBS may charge commissions or transaction fees with respect to brokerage transactions
in Class Y shares. The
minimum investment for Class Y shares is waived for transactions through such brokerage platforms at UBS. Please contact your UBS representative
for more information about these fees and other eligibility requirements.
Qualifying
for Reduced Sales Charges and Sales Charge Exceptions
The
following types of accounts qualify for reduced sales charges or sales charge exceptions under ROAs and LOIs:
1.
an
individual account owner;
2.
immediate
family of the individual account owner (which includes the individual’s spouse or domestic partner; the individual’s children,
step-children or grandchildren; the spouse or domestic partner of the individual’s children, step-children or grandchildren; the
individual’s parents and step-parents; the parents or step-parents of the individual’s spouse or domestic partner; the individual’s
grandparents; and the individual’s siblings);
3.
a
Retirement and Benefit Plan so long as the plan is established exclusively for the benefit of an individual account owner; and
4.
a
Coverdell Education Savings Account (Coverdell ESA), maintained pursuant to Section 530 of the Code (in either case, the account
must be established by an individual account owner or have an individual account owner named as the beneficiary thereof).
Alternatively,
an Employer Sponsored Retirement and Benefit Plan (but not including
plans utilizing the Invesco 403(b)(7) Custodial Account program, or the individual custodial accounts thereunder) or Employer Sponsored
IRA may be eligible to purchase shares pursuant to a ROA at the plan level, and receive a reduced applicable initial sales charge for
a new purchase based on the total value of the current purchase and the value of other shares owned by the plan’s participants if:
a)
the
employer or plan sponsor submits all contributions for all participating employees in a single contribution transmittal (the Invesco Funds
will not accept separate contributions submitted with respect to individual participants);
b)
each
transmittal is accompanied by checks or wire transfers; and
c)
if
the Invesco Funds are expected to carry separate accounts in the names of each of the plan participants, (i) the employer or plan
sponsor notifies Invesco Distributors or its designee in writing that the separate accounts of all plan participants should be linked,
and (ii) all new participant accounts are established by submitting an appropriate Account Application on behalf of each new participant
with the contribution transmittal.
Participant
accounts in a retirement plan that are eligible to purchase shares
pursuant to a ROA at the plan level may not also be considered eligible to do so for the benefit of an individual account owner.
In
all instances, it is the purchaser’s responsibility to notify Invesco Distributors
or its designee of any relationship or other facts qualifying the purchaser as eligible for reduced sales charges and/or sales charge
exceptions and to provide all necessary documentation of such facts in order to qualify for reduced sales charges or sales charge exceptions.
For additional information on linking accounts to qualify for ROA or LOI, please see the Funds’ SAI.
Purchases
of Class A shares of Invesco Conservative Income Fund, Invesco
Government Money Market Fund and Invesco Short Term Municipal Fund, Class AX shares or Invesco Cash Reserve Shares of Invesco Government
Money Market Fund and Invesco U.S. Government Money Portfolio, as applicable, or Investor Class shares of any Fund will not be
taken
into account in determining whether a purchase qualifies for a reduction in initial sales charges pursuant to ROAs or LOIs.
Rights
of Accumulation
Purchasers
that qualify for ROA may combine new purchases of Class A shares of a Fund with shares of the Fund or other open-end Invesco Funds
currently owned (Class A, C, IB, IC, P, R, S or Y) for the purpose of qualifying for the lower initial sales charge rates that apply
to larger purchases. The applicable initial sales charge for the new purchase will be based on the total of your current purchase and
the value of other shares owned based on their current public offering price. The Funds’ transfer agent may automatically link certain
accounts registered in the same name with the same taxpayer identification number for the purpose of qualifying you for lower initial
sales charge rates.
Letters
of Intent
Under
a LOI, you commit to purchase a specified dollar amount of Class A shares of one or more Funds during a 13-month period. The amount
you agree to purchase determines the initial sales charge you pay. If the full amount committed to in the LOI is not invested by the end
of the 13-month period, your account will generally be assessed the higher initial sales charge that would normally be applicable to the
total amount actually invested. Shares equal in value to 5% of the intended purchase amount will be held in escrow for this purpose.
Reinstatement
Following Redemption
If
you redeem any class of shares of a Fund, you may reinvest all or a portion of the proceeds from the redemption (and may include that
amount necessary to acquire a fractional Share to round off his or her purchase to the next full Share) in the same share class of any
Fund within 180 days of the redemption without paying an initial sales charge. Class P, S, and Y redemptions may be reinvested into Class
A shares without an initial sales charge.
This
reinstatement privilege does not apply to a purchase made through a
regularly scheduled automatic investment plan, such as a purchase by a regularly scheduled payroll deduction or transfer from a bank account.
This
reinstatement privilege shall be suspended for the period of time in which
a purchase block is in place on a shareholder’s account. Please see “Purchase Blocking Policy” discussed below.
In
order to take advantage of this reinstatement privilege, you must inform
your financial adviser or the Funds’ transfer agent that you wish to do so at the time of your reinvestment.
Contingent
Deferred Sales Charges (CDSCs)
CDSCs
on Class A Shares and Invesco Cash Reserve Shares
Any
shares of a Large Purchase of Class A shares redeemed prior to 18 months after the date of purchase will be subject to a CDSC of 1% with
the exception of Class A shares of Invesco Conservative Income Fund and Invesco Short Term Municipal Fund which do not have CDSCs on redemptions.
If
Invesco Distributors pays a concession to a financial intermediary in connection
with a Large Purchase of Class A shares by an Employer Sponsored Retirement and Benefit Plan or SIMPLE IRA Plan, the Class A shares will
be subject to a 1% CDSC if all of the Employer Sponsored Retirement and Benefit Plan’s or SIMPLE IRA’s shares are redeemed
within one year from the date of initial purchase.
If
you acquire Invesco Cash Reserve Shares or Class A shares of Invesco
Government Money Market Fund or Invesco Cash Reserve Shares of Invesco U.S. Government Money Portfolio through an exchange involving Class
A shares that were subject to a CDSC, the shares acquired as a result of the exchange will continue to be subject to that same CDSC.
CDSCs
on Class C Shares
Class
C shares are subject to a CDSC; however, the CDSC shall not apply to the purchases of Class C shares where the selling broker-dealer was
not paid a commission at the time of purchase. If you redeem your shares during the first year since your purchase has been made you will
be
A-10 The
Invesco Funds
assessed
a CDSC as disclosed in the “Fees and Expenses - Shareholder Fees” table in the prospectus, unless you qualify for one of the
CDSC exceptions outlined below.
CDSCs
on Class C Shares – Employer Sponsored Retirement and Benefit Plans and Employer Sponsored IRAs
Class
C shares are subject to a 1.00% CDSC at the time of redemption if all of the Employer Sponsored Retirement and Benefit Plan’s or
Employer Sponsored IRA’s shares are redeemed within one year from the date of initial purchase.
CDSCs
on Class C Shares of Invesco Short Term Bond Fund
Effective
November 1, 2021, Class C shares of Invesco Short Term Bond Fund are subject to a CDSC. If you acquire Class C shares of any other Fund
as a result of an exchange involving Class C shares of Invesco Short Term Bond Fund that were not subject to a CDSC prior to November
1, 2021, then the shares acquired as a result of the exchange will not be subject to a CDSC.
Computing
a CDSC
The
CDSC on redemptions of shares is computed based on the lower of their original purchase price or current net asset value, net of reinvested
dividends and capital gains distributions. In determining whether to charge a CDSC, shares are accounted for on a first-in, first-out
basis, which means that you will redeem shares on which there is no CDSC first, and then shares in the order of their purchase.
CDSC
Exceptions
Investors
who own shares that are otherwise subject to a CDSC will not pay a CDSC in the following circumstances:
◾
If
you participate in the Systematic Redemption Plan and withdraw up to 12% of the value of your shares that are subject to a CDSC in any
twelve-month period.
◾
If
you redeem shares to pay account fees.
◾
If
you are the executor, administrator or beneficiary of an estate or are otherwise entitled to assets remaining in an account following
the death or post-purchase disability of a shareholder or beneficial owner and you choose to redeem those shares.
There
are other circumstances under which you may be able to redeem shares
without paying CDSCs. For additional information about such circumstances, please see the Appendix entitled “Purchase, Redemption
and Pricing of Shares” in each Fund’s SAI.
Shares
acquired through the reinvestment of dividends and distributions are
not subject to CDSCs.
The
following share classes are sold without a CDSC:
◾
Class
A2 shares of Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund
◾
Class
A shares of Invesco Government Money Market Fund
◾
Invesco
Cash Reserve Shares of Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio
◾
Investor
Class shares of any Fund
◾
Class
P shares of Invesco Summit Fund
◾
Class
R5 and R6 shares of any Fund
◾
Class
R shares of any Fund
◾
Class
S shares of Invesco Charter Fund, Invesco Select Risk: Moderately Conservative Investor Fund, Invesco Select Risk: Growth Investor Fund,
Invesco Select Risk: Moderate Investor Fund and Invesco Summit Fund
◾
Class
Y shares of any Fund
Purchasing
Shares and Shareholder Eligibility
Invesco
Premier U.S. Government Money Portfolio
For
Invesco Premier U.S. Government Money Portfolio, you may purchase shares using one of the options below. Unless the Fund closes early
on a business day, the Fund’s transfer agent will generally accept any purchase order placed until 5:00 p.m. Eastern Time on a business
day and may accept a purchase order placed until 5:30 p.m. Eastern Time on a business
day.
If you wish to place an order between 5:00 p.m. and 5:30 p.m. Eastern Time on a business day, you must place such order by telephone;
however, the Fund’s transfer agent reserves the right to reject or limit the amount of orders placed during this time. If the Fund
closes early on a business day, the Fund’s transfer agent must receive your purchase order prior to such closing time. Purchase
orders will not be processed unless the account application and purchase payment are received in good order. In accordance with the USA
PATRIOT Act, if you fail to provide all the required information requested in the current account application, your purchase order will
not be processed. Additionally, federal law requires that the Fund verifies and records your identifying information.
Invesco
Premier Portfolio
Only
accounts beneficially owned by natural persons will be permitted to retain their shares. The Fund has implemented policies and procedures
reasonably designed to limit all beneficial owners of the Fund to natural persons, and investments in the Fund are limited to accounts
beneficially owned by natural persons. Natural persons may invest in the Fund through certain tax-advantaged savings accounts, trusts
and other retirement and investment accounts, which may include, among others: participant-directed defined contribution plans; individual
retirement accounts; simplified employee pension arrangements; simple retirement accounts; custodial accounts; deferred compensation plans
for government or tax-exempt organization employees; Archer medical savings accounts; college savings plans; health savings account plans;
ordinary trusts and estates of natural persons; or certain other retirement and investment accounts with ultimate investment authority
held by the natural person beneficial owner, notwithstanding having an institutional decision maker making day-to-day decisions (e.g.,
a plan sponsor in certain retirement arrangements or an investment adviser managing discretionary investment accounts).
Further,
financial intermediaries may only submit purchase orders if they have
implemented policies and procedures reasonably designed to limit all investors on behalf of whom they submit orders to accounts beneficially
owned by natural persons. Financial intermediaries may be required to provide a written statement or other representation that they have
in place, and operate in compliance with, such policies and procedures prior to submitting purchase orders. Such policies and procedures
may include provisions for the financial intermediary to promptly report to the Fund or the transfer agent the identification of any shareholder
of the Fund that does not qualify as a natural person of whom they are aware and promptly take steps to redeem any such shareholder’s
shares of the Fund upon request by the Fund or the transfer agent, in such manner as it may reasonably request. The Fund may involuntarily
redeem any such shareholder who does not voluntarily redeem their shares.
Natural
persons may purchase shares using one of the options below. For
all classes of the Fund, other than Investor Class shares, unless the Fund closes early on a business day, the Fund’s transfer agent
will generally accept any purchase order placed until 5:00 p.m. Eastern Time on a business day and may accept a purchase order placed
until 5:30 p.m. Eastern Time on a business day. If you wish to place an order between 5:00 p.m. and 5:30 p.m. Eastern Time on a business
day, you must place such order by telephone; or send your request by a pre-arranged Liquidity Link data transmission however, the Fund’s
transfer agent reserves the right to reject or limit the amount of orders placed during this time. For Investor Class shares of the Fund,
unless the Fund closes early on a business day, the Fund’s transfer agent will generally accept any purchase order placed until
4:00 p.m. Eastern Time on a business day and may accept a purchase order placed until 4:30 p.m. Eastern Time on a business day. If you
wish to place an order between 4:00 p.m. and 4:30 p.m. Eastern Time on a business day, you must place such order by telephone; however,
the Fund’s transfer agent reserves the right to reject or limit the amount of orders placed during this time. If the Fund closes
early on a business day, the Fund’s transfer agent must receive your purchase order prior to such closing time. Purchase orders
will not be processed unless the account application and purchase payment are received in good order. In accordance with the USA PATRIOT
Act, if you fail to provide all the required information requested in the current account application, your purchase order will not be
A-11 The
Invesco Funds
processed.
Additionally, federal law requires that the Fund verify and record your identifying information.
Minimum Investments
There
are no minimum investments for Class P or S shares for fund accounts. The minimum investments for Class A, C, R, Y, Investor Class and
Invesco Cash Reserve shares for fund accounts are as follows:
|
Type
of Account |
Initial
Investment
Per
Fund |
Additional
Investments
Per
Fund |
|
Asset
or fee-based accounts managed by your financial
adviser
|
None
|
None
|
|
| ||
|
Employer
Sponsored Retirement and Benefit Plans and
Employer
Sponsored IRAs |
None
|
None
|
|
| ||
|
IRAs
and Coverdell ESAs if the new investor is
purchasing
shares through a systematic purchase plan |
$25
|
$25
|
|
| ||
|
All
other accounts if the investor is purchasing shares
through
a systematic purchase plan |
50
|
50
|
|
| ||
|
IRAs
and Coverdell ESAs |
250
|
25
|
|
| ||
|
All
other accounts |
1,000
|
50
|
|
| ||
Invesco
Distributors or its designee has the discretion to accept orders on behalf of clients for lesser amounts.
The
minimum investments for Class R5 and R6 shares are as follows:
There
is no minimum initial investment for an Employer Sponsored Retirement
and Benefit Plan investing through a retirement platform that administers at least $2.5 billion in retirement plan assets. All other Employer
Sponsored Retirement and Benefit Plans must meet a minimum initial investment of at least $1 million in each Fund in which it invests.
The
minimum initial investment in each share class for all other institutional
investors is $1 million, unless such investment is made by (i) an investment company, as defined under the 1940 Act, as amended, that
is part of a family of investment companies which own in the aggregate at least $100 million in securities, or (ii) an account established
with a 529 college savings plan managed by Invesco, in which case there is no minimum initial investment.
There
are no minimum investment amounts for Class R6 shares held through
retail omnibus accounts where the intermediary:
◾
generally
charges an asset-based fee or commission in addition to those described in this prospectus; and
◾
maintains
Class R6 shares and makes them available to retail investors.
A
financial intermediary may impose different investment minimums than
those set forth above. The Fund is not responsible for any investment minimums imposed by financial intermediaries or for notifying shareholders
of any changes to them. See “Waivers Available Through Certain Financial Intermediaries and Other Financial Intermediary-Specific
Arrangements” for more information on certain intermediary-specific investment minimums. Please consult with your financial intermediary
if you have any questions regarding their policies.
How
to Purchase Shares*
|
|
Opening
An Account |
Adding
To An Account |
|
Through
a
Financial
Adviser
or
Financial
Intermediary*
|
Contact
your financial adviser or
financial
intermediary. |
Contact
your financial adviser or
financial
intermediary. |
|
By
Mail |
Mail
completed account application
and
check to the Funds’ transfer
agent,
Invesco
Investment Services, Inc.
P.O.
Box 219078,
Kansas
City, MO 64121-9078.
The
Funds’ transfer agent does NOT
accept
the following types of
payments:
Credit Card Checks,
Temporary/Starter
Checks, Third
Party
Checks, and Cash. |
Mail
your check and the remittance
slip
from your confirmation
statement
to the Funds’ transfer
agent.
The Funds’ transfer agent
does
NOT accept the following
types
of payments: Credit Card
Checks,
Temporary/Starter Checks,
Third
Party Checks, and Cash. |
|
|
Opening
An Account |
Adding
To An Account |
|
By
Wire* |
Mail
completed account application
to
the Funds’ transfer agent. Call
the
Funds’ transfer agent at (800)
959-4246
to receive a reference
number.
Then, use the wire
instructions
provided below. |
Call
the Funds’ transfer agent to
receive
a reference number. Then,
use
the wire instructions provided
below.
|
|
Wire
Instructions |
Beneficiary
Bank ABA/Routing #: 011001234
Beneficiary
Account Number: 729639
Beneficiary
Account Name: Invesco Investment Services, Inc.
RFB:
Fund Name, Reference #
OBI:
Your Name, Account # | |
|
By
Telephone* |
Open
your account using one of the
methods
described above. |
The
Bank Account Information
option
on your completed account
application
or complete a
Systematic
Options and Bank
Information
Form. Mail the
application
or form to the Funds’
transfer
agent. Once the Funds’
transfer
agent has received the
form,
call the Funds’ transfer agent
at
the number below to place your
purchase
order. For Class R5 and
R6
shares, call the Funds’ transfer
agent
at (800) 959-4246 and wire
payment
for your purchase order in
accordance
with the wire
instructions
listed above. |
|
Automated
Investor
Line |
Open
your account using one of the
methods
described above. |
Call
the Funds’ transfer agent’s
24-hour
Automated Investor Line at
1-800-246-5463.
You may place
your
order after you have provided
the
bank instructions that will be
requested.
|
|
By
Internet |
Open
your account using one of the
methods
described above. |
Access
your account at
www.invesco.com/us.
The proper
bank
instructions must have been
provided
on your account. You may
not
purchase shares in Retirement
and
Benefit Plans on the internet. |
|
*Class
R5 and R6 shares may only be purchased through a financial intermediary or by
telephone
at (800) 959-4246. | ||
Non-retirement
retail investors, including high net worth investors investing
directly or through a financial intermediary, are not eligible for Class R5 shares. IRAs and Employer Sponsored IRAs are also not eligible
for Class R5 shares. If you hold your shares through a financial intermediary, the terms by which you purchase, redeem and exchange shares
may differ than the terms in this prospectus depending upon the policies and procedures of your financial intermediary.
Purchase
orders will not be processed unless the account application and
purchase payment are received in good order. In accordance with the USA PATRIOT Act, if you fail to provide all the required information
requested in the current account application, your purchase order will not be processed. Additionally, federal law requires that the Funds
verify and record your identifying information.
Systematic
Purchase Plan (Available for all classes except Class R5 and R6 shares)
You
can arrange for periodic investments in any of the Funds by authorizing the Funds’ transfer agent to withdraw the amount of your
investment from your bank account on a day or dates you specify and in an amount of at least $25 per Fund for IRAs and Coverdell ESAs,
and at least $50 per Fund for all other types of accounts (a Systematic Purchase Plan). You may stop the Systematic Purchase Plan at any
time by giving the Funds’ transfer agent notice ten days prior to your next scheduled withdrawal. Certain financial advisers and
other financial intermediaries may also offer systematic purchase plans.
A-12 The
Invesco Funds
Dollar
Cost Averaging (Available for all classes except Class R5 and R6 shares)
Dollar
Cost Averaging allows you to make automatic periodic exchanges, if permitted, from one Fund to another Fund or multiple other Funds. The
account from which exchanges are to be made must have a minimum balance of $5,000 before you can use this option. Exchanges will occur
on (or about) the day of the month you specify, in the amount you specify. Dollar Cost Averaging cannot be set up for the 29th through
the 31st of the month. The minimum amount you can exchange to another Fund is $50. Your financial intermediary may offer alternative dollar
cost averaging programs with different requirements.
Automatic
Dividend and Distribution Investment
Your
dividends and distributions may be paid in cash or reinvested in the same Fund or another Fund without paying an initial sales charge.
Unless
you specify otherwise, your dividends and distributions will automatically
be reinvested in the same Fund. You must comply with the following requirements to be eligible to invest your dividends and distributions
in shares of another Fund:
◾
Your
account balance in the Fund paying the dividend or distribution must be at least $5,000; and
◾
Your
account balance in the Fund receiving the dividend or distribution must be at least $500.
If
you elect to receive your distributions by check, and the distribution amount
is $25 or less, then the amount will be automatically reinvested in the same Fund and no check will be issued. If you have elected to
receive distributions by check, and the postal service is unable to deliver checks to your address of record, then your distribution election
may be converted to having all subsequent distributions reinvested in the same Fund and no checks will be issued. With respect to certain
account types, if your check remains uncashed for six months, the Fund generally reserves the right to reinvest your distribution check
in your account at the then applicable NAV and to reinvest all subsequent distributions in shares of the Fund. Such checks will be reinvested
into the same share class of the Fund. You should contact the Funds’ transfer agent to change your distribution option, and your
request to do so must be received by the Funds’ transfer agent before the record date for a distribution in order to be effective
for that distribution. No interest will accrue on amounts represented by uncashed distribution checks.
Redeeming
Shares*
The
Funds’ transfer agent or authorized intermediary, if applicable, must receive your call before the Funds’ net asset value
determination (as defined by the applicable Fund) in order to effect the redemption at that day’s net asset value.
Your
broker or financial intermediary may charge service fees for handling
redemption transactions.
|
How
to Redeem Shares | |
|
Through
a Financial
Adviser
or Financial
Intermediary*
|
Contact
your financial adviser or financial intermediary. The Funds’
transfer
agent must receive your financial adviser’s or financial
intermediary’s
call before the Funds’ net asset value determination
(as
defined by the applicable Fund) in order to effect the redemption
at
that day’s net asset value. Please contact your financial adviser or
financial
intermediary with respect to reporting of cost basis and
available
elections for your account. |
|
By
Mail |
Send
a written request to the Funds’ transfer agent which includes: |
|
|
▪ Original
signatures of all registered owners/trustees;
▪ The
dollar value or number of shares that you wish to redeem;
▪ The
name of the Fund(s) and your account number;
▪ The
cost basis method or specific shares you wish to redeem for
tax
reporting purposes, if different than the method already on
record;
and |
|
|
▪ Signature
guarantees, if necessary (see below).
The
Funds’ transfer agent may require that you provide additional
documentation,
or information, such as corporate resolutions or
powers
of attorney, if applicable. If you are redeeming from a
Retirement
and Benefit Plan, you must complete the appropriate
distribution
form. |
|
How
to Redeem Shares | |
|
By
Telephone* |
Call
the Funds’ transfer agent at 1-800-959-4246. You will be
allowed
to redeem by telephone if:
▪ Your
redemption proceeds are to be mailed to your address on
record
(and there has been no change in your address of record
within
the last 15 days) or transferred electronically to a
pre-authorized
checking account;
▪ You
can provide proper identification information;
▪ Your
redemption proceeds do not exceed $250,000 per Fund; and
▪ You
have not previously declined the telephone redemption
privilege.
|
|
|
You
may, in limited circumstances, initiate a redemption from an
Invesco
IRA by telephone. Redemptions from Employer Sponsored
Retirement
and Benefit Plans and Employer Sponsored IRAs may be
initiated
only in writing and require the completion of the appropriate
distribution
form, as well as employer authorization. You must call the
Funds’
transfer agent before the Funds’ net asset value
determination
(as defined by the applicable Fund) in order to effect
the
redemption at that day’s net asset value. |
|
Automated
Investor Line |
Call
the Funds’ transfer agent’s 24-hour Automated Investor Line at
1-800-246-5463.
You may place your redemption order after you
have
provided the bank instructions that will be requested. |
|
By
Internet |
Place
your redemption request at www.invesco.com/us. You will be
allowed
to redeem by Internet if:
▪ You
can provide proper identification information;
▪ Your
redemption proceeds do not exceed $250,000 per Fund; and
▪ You
have already provided proper bank information.
Redemptions
from Employer Sponsored Retirement and Benefit
Plans
and Employer Sponsored IRAs may be initiated only in writing
and
require the completion of the appropriate distribution form, as
well
as employer authorization. |
|
*Class
R5 and R6 shares may only be redeemed through a financial intermediary or by
telephone
at (800) 959-4246. | |
Timing
and Method of Payment
The
Funds’ transfer agent typically expects to pay redemption proceeds to redeeming shareholders within one business day after a redemption
request is received in good order, regardless of the method a Fund uses to make such payment. However, a Fund may take up to seven days
to process a redemption request. “Good order” means that all necessary information and documentation related to the redemption
request have been provided to the Funds’ transfer agent or authorized intermediary, if applicable. If your request is not in good
order, the Funds’ transfer agent may require additional documentation in order to redeem your shares. If you redeem shares recently
purchased by check or ACH, you may be required to wait up to ten calendar days before your redemption proceeds are sent. This delay is
necessary to ensure that the purchase has cleared. You can avoid the check hold period if you pay for your shares with a certified check,
a cashier’s check or a federal wire. Payment may be postponed under unusual circumstances, as allowed by the SEC, such as when the
NYSE restricts or suspends trading.
In
addition, a temporary hold may be placed on the disbursement of redemption
proceeds from an account if there is a reasonable belief that financial exploitation of a Specified Adult (as defined below) has occurred,
is occurring, has been attempted, or will be attempted. Notice of such a delay will be provided in accordance with regulatory requirements.
This temporary hold will be for an initial period of no more than 15 business days while an internal review is performed. Should the internal
review support the belief that financial exploitation has occurred, is occurring, has been attempted or will be attempted, the temporary
hold may be extended for up to 10 additional business days. Both the initial and subsequent hold on the disbursement may be terminated
or extended by a state regulator or an agency or court of competent jurisdiction. For purposes of this paragraph, the term “Specified
Adult” refers to an individual who is (a) a natural person age 65 and older, or (b) a natural person age 18 and older who is reasonably
believed to have a mental or physical impairment that renders the individual unable to protect his or her own interests.
If
you redeem by telephone, the Funds’ transfer agent will transmit the amount
of redemption proceeds electronically to your pre-authorized bank account. Redemption checks are mailed to your address of record, via
first
A-13 The
Invesco Funds
class
U.S. mail, unless you make other arrangements with the Funds’ transfer agent.
The
Funds’ transfer agent uses reasonable procedures to confirm that instructions
communicated via telephone and the Internet are genuine, and the Funds and the Funds’ transfer agent are not liable for losses arising
from actions taken in accordance with instructions that are reasonably believed to be genuine.
A
Fund typically expects to use holdings of cash and cash equivalents and
sales of portfolio assets to meet redemption requests, both regularly and in stressed market conditions. The Funds also have the ability
to redeem in kind as further described below under “Redemptions in Kind.” Certain Funds have a line of credit,
as disclosed in such Funds’ principal investment strategy
and risk disclosures that may be used to meet redemptions in stressed market conditions.
Expedited
Redemptions (for Invesco Cash Reserve Shares of Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio only)
If
you place your redemption order by telephone, before 11:30 a.m. Eastern Time and request an expedited redemption, the Funds’ transfer
agent will transmit payment of redemption proceeds on that same day via federal wire to a bank of record on your account. If the Funds’
transfer agent receives your redemption order after 11:30 a.m. Eastern Time and before the close of the customary trading session of the
NYSE, it will transmit payment on the next business day.
Suspension
of Redemptions
The
right of redemption may be suspended or the date of payment postponed when (a) trading on the NYSE is restricted, as determined by applicable
rules and regulations of the SEC, (b) the NYSE is closed for other than customary weekend and holiday closings, (c) the SEC has by order
permitted such suspension, or (d) an emergency as determined by the SEC exists making disposition of portfolio securities or the valuation
of the net assets of the Fund not reasonably practicable. With respect to Invesco Government Money Market Fund, Invesco U.S. Government
Money Portfolio, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio, in the event that the Fund, at the end
of a business day, has invested less than 10% of its total assets in weekly liquid assets or, with respect to the retail and government
money market funds, the Fund’s price per share as computed for the purpose of distribution, redemption and repurchase, rounded to
the nearest 1%, has deviated from the stable price established by the Fund’s Board of Trustees (“Board”) or the Board,
including a majority of trustees who are not interested persons as defined in the 1940 Act, determines that such a deviation is likely
to occur, and the Board, including a majority of trustees who are not interested persons of the Fund, irrevocably has approved the liquidation
of the Fund, the Fund’s Board has the authority to suspend redemptions of Fund shares.
Liquidity
Fees and Redemption Gates
For
Invesco Premier Portfolio, if the Fund’s weekly liquid assets fall below 30% of its total assets, the Board, in its discretion,
may impose liquidity fees of up to 2% of the value of the shares redeemed and/or suspend redemptions (redemption gates). In addition,
if any such Fund’s weekly liquid assets falls below 10% of its total assets at the end of any business day, the Fund must impose
a 1% liquidity fee on shareholder redemptions unless the Board determines that not doing so is in the best interests of the Fund.
Liquidity
fees and redemption gates are most likely to be imposed, if at all,
during times of extraordinary market stress. In the event that a liquidity fee or redemption gate is imposed, the Board expects that for
the duration of its implementation and the day after which such gate or fee is terminated, the Fund would strike only one net asset value
per day, at the Fund’s last scheduled net asset value calculation time.
The
imposition and termination of a liquidity fee or redemption gate will be
reported by a Fund to the SEC on Form N-CR. Such information will also be available on the Fund’s website. In addition, a Fund will
communicate such action through a supplement to its registration statement and may further communicate such action through a press release
or by other means. If a liquidity fee is applied by the Board, it will be charged on all
redemption
orders submitted after the effective time of the imposition of the fee by the Board. Liquidity fees would reduce the amount you receive
upon redemption of your shares. In the event a Fund imposes a redemption gate, the Fund or any financial intermediary on its behalf will
not accept redemption requests until the Fund provides notice that the redemption gate has been terminated.
Redemption
requests submitted while a redemption gate is imposed will be cancelled
without further notice. If shareholders still wish to redeem their shares after a redemption gate has been lifted, they will need to submit
a new redemption request.
Liquidity
fees and redemption gates will generally be used to assist a Fund
to help preserve its market–based NAV per share. It is possible that a liquidity fee will be returned to shareholders in the form
of a distribution. The Board may, in its discretion, terminate a liquidity fee or redemption gate at any time if it believes such action
to be in the best interest of a Fund. Also, liquidity fees and redemption gates will automatically terminate at the beginning of the next
business day once a Fund’s weekly liquid assets reach at least 30% of its total assets. Redemption gates may only last up to 10
business days in any 90-day period. When a fee or a gate is in place, the Fund may elect not to permit the purchase of shares or to subject
the purchase of shares to certain conditions, which may include affirmation of the purchaser’s knowledge that a fee or a gate is
in effect. When a fee or a gate is in place, shareholders will not be permitted to exchange into or out of a Fund.
There
is some degree of uncertainty with respect to the tax treatment of liquidity
fees received by a Fund, and such tax treatment may be the subject to future IRS guidance. If a Fund receives liquidity fees, it will
consider the appropriate tax treatment of such fees to the Fund at such time.
Financial
intermediaries are required to promptly take the steps requested
by the Funds or their designees to impose or help to implement a liquidity fee or redemption gate as requested from time to time, including
the rejection of orders due to the imposition of a fee or gate or the prompt re-confirmation of orders following a notification regarding
the implementation of a fee or gate. If a liquidity fee is imposed, these steps are expected to include the submission of separate, rather
than combined, purchase and redemption orders from the time of the effectiveness of the liquidity fee or redemption gate and the submission
of such order information to the Fund or its designee prior to the next calculation of a Fund’s net asset value. Unless otherwise
agreed to between a Fund and financial intermediary, the Fund will withhold liquidity fees on behalf of financial intermediaries. With
regard to such orders, a redemption request that a Fund determines in its sole discretion has been received in good order by the Fund
or its designated agent prior to the imposition of a liquidity fee or redemption gate may be paid by the Fund despite the imposition of
a redemption gate or without the deduction of a liquidity fee. If a liquidity fee is imposed during the day, an intermediary who receives
both purchase and redemption orders from a single account holder is not required to net the purchase and redemption orders. However, the
intermediary is permitted to apply the liquidity fee to the net amount of redemptions (even if the purchase order was received prior to
the time the liquidity fee was imposed).
Where
a Financial Intermediary serves as a Fund’s agent for the purpose
of receiving orders, trades that are not transmitted to the Fund by the Financial Intermediary before the time required by the Fund or
the transfer agent may, in the Fund’s discretion, be processed on an as-of basis, and any cost or loss to the Fund or transfer agent
or their affiliates, from such transactions shall be borne exclusively by the Financial Intermediary.
Systematic
Withdrawals (Available for all classes except Class R5 and R6 shares)
You
may arrange for regular periodic withdrawals from your account in amounts equal to or greater than $50 per Fund. The Funds’ transfer
agent will redeem the appropriate number of shares from your account to provide redemption proceeds in the amount requested. You must
have a total account balance of at least $5,000 in order to establish a Systematic Redemption Plan, unless you are establishing a Required
Minimum
A-14 The
Invesco Funds
Distribution
for a Retirement and Benefit Plan. You can stop this plan at any time by giving ten days’ prior notice to the Funds’ transfer
agent.
Check
Writing
The
Funds’ transfer agent provides check writing privileges for accounts in the following Funds and share classes:
◾
Invesco
Government Money Market Fund, Invesco Cash Reserve Shares, Class AX shares, Class Y shares and Investor Class shares
◾
Invesco
U.S. Government Money Portfolio, Invesco Cash Reserve Shares and Class Y shares
◾
Invesco
Premier Portfolio, Investor Class shares
◾
Invesco
Premier U.S. Government Money Portfolio, Investor Class shares
You
may redeem shares of these Funds by writing checks in amounts of $250
or more if you have subscribed to the service by completing a Check Writing authorization form.
Check
writing privileges are not available for Retirement and Benefit Plans.
Checks are not eligible to be converted to ACH by the payee. You may not give authorization to a payee by phone to debit your account
by ACH for a debt owed to the payee.
If
you do not have a sufficient number of shares in your account to cover
the amount of the check and any applicable deferred sales charge, the check will be returned and no shares will be redeemed. Because it
is not possible to determine your account’s value in advance, you should not write a check for the entire value of your account
or try to close your account by writing a check.
A
check writing redemption request which is verifiably submitted to a Fund’s
agent before a liquidity fee or redemption gate is imposed will be considered a valid redemption and will be processed normally.
Signature
Guarantees
The
Funds’ transfer agent requires a signature guarantee in the following circumstances:
◾
When
your redemption proceeds exceed $250,000 per Fund.
◾
When
you request that redemption proceeds be paid to someone other than the registered owner of the account.
◾
When
you request that redemption proceeds be sent somewhere other than the address of record or bank of record on the account.
◾
When
you request that redemption proceeds be sent to a new address or an address that changed in the last 15 days.
The
Funds’ transfer agent will accept a guarantee of your signature by a number
of different types of financial institutions. Call the Funds’ transfer agent for additional information. Some institutions have
transaction amount maximums for these guarantees. Please check with the guarantor institution to determine whether the signature guarantee
offered will be sufficient to cover the value of your transaction request.
Redemptions
in Kind
Although
the Funds generally intend to pay redemption proceeds solely in cash, the Funds reserve the right to determine, in their sole discretion,
whether to satisfy redemption requests by making payment in securities or other property (known as a redemption in kind). Redemptions
in kind may result in transaction costs and/or market fluctuations associated with liquidating or holding the securities, respectively.
Purchases-in-Kind
You
may purchase shares of a Fund by transferring securities to a Fund in exchange for Fund shares (“in-kind purchases”). In-kind
purchases may be made only upon the Funds’ approval and determination that the securities are acceptable investments for the Fund
and are purchased consistent with the Fund’s procedures relating to in-kind purchases. The Funds reserve the right to amend or terminate
this practice at any time. You must call the Funds at (800) 959-4246 before sending any securities. Please see the SAI for additional
details.
Redemptions
by Large Shareholders
At
times, the Fund may experience adverse effects when certain large shareholders redeem large amounts of shares of the Fund. Large redemptions
may cause the Fund to sell portfolio securities at times when it would not otherwise do so. In addition, these transactions may also
accelerate
the realization of taxable income to shareholders (if applicable) if such sales of investments resulted in gains and may also increase
transaction costs and/or increase in the Fund’s expense ratio. When experiencing a redemption by a large shareholder, the Fund may
delay payment of the redemption request up to seven days to provide the investment manager with time to determine if the Fund can redeem
the request-in-kind or to consider other alternatives to lessen the harm to remaining shareholders. Under certain circumstances, however,
the Fund may be unable to delay a redemption request, which could result in the automatic processing of a large redemption that is detrimental
to the Fund and its remaining shareholders.
Redemptions
Initiated by the Funds
If
your account (Class A, C, P, S and Investor Class shares only) has been open at least one year, you have not made an additional purchase
in the account during the past six calendar months, and the value of your account falls below $500 for three consecutive months, the Funds
have the right to redeem the account after giving you 60 days’ prior written notice. You may avoid having your account redeemed
during the notice period by bringing the account value up to $500 or by initiating a Systematic Purchase Plan.
A
financial intermediary may have a different policy regarding redemptions
of accounts with small balances. The Fund is not responsible for any small account balance policies imposed by financial intermediaries
or for notifying shareholders of any changes to them. See “Waivers Available Through Certain Financial Intermediaries and Other
Financial Intermediary-Specific Arrangements” for more information on certain intermediary-specific small account balance policies.
Please consult with your financial intermediary if you have any questions regarding their policies.
If
a Fund determines that you have not provided a correct Social Security
or other tax identification number on your account application, or the Fund is not able to verify your identity as required by law, the
Fund may, at its discretion, redeem the account and distribute the proceeds to you.
In
order to separate retail investors (natural persons) and non-retail investors,
the Invesco Premier Portfolio reserve the right to redeem shares in any account that the Funds cannot confirm to their satisfaction are
beneficially owned by natural persons. The Funds will provide advance written notice of their intent to make any such involuntary redemptions.
The Funds reserve the right to redeem shares in any account that they cannot confirm to their satisfaction are beneficially owned by natural
persons, after providing advance notice.
Neither
a Fund nor its investment adviser will be responsible for any loss
in an investor’s account or tax liability resulting from an involuntary redemption.
Minimum
Account Balance (Available for all classes except Class R5 and R6 shares)
A
low balance fee of $12 per year may be deducted in the fourth quarter of each year from all accounts held in the Funds (each a Fund Account)
with a value less than the low balance amount (the Low Balance Amount) as determined from time to time by the Funds and the Adviser. The
Funds and the Adviser generally expect the Low Balance Amount to be $750, but such amount may be adjusted for any year depending on various
factors, including market conditions. The Low Balance Amount and the date on which it will be deducted from any Fund Account will be posted
on our website, www.invesco.com/us, on or about November 1 of each year. This fee will be payable to the Funds’ transfer agent by
redeeming from a Fund Account sufficient shares owned by a shareholder and will be used by the Funds’ transfer agent to offset amounts
that would otherwise be payable by the Funds to the Funds’ transfer agent under the Funds’ transfer agency agreement with
the Funds’ transfer agent. The low balance fee does not apply to participant accounts in advisory programs or to Employer Sponsored
Retirement and Benefit Plans.
Exchanging
Shares
You
may, under certain circumstances, exchange shares in one Fund for those of another Fund. An exchange is the purchase of shares in one
Fund which is paid for with the proceeds from a redemption of shares of another
A-15 The
Invesco Funds
Fund
effectuated on the same day. Any gain on the transaction may be subject to federal income tax. Accordingly, the procedures and processes
applicable to redemptions of Fund shares, as discussed under the heading “Redeeming Shares” above, will apply. Before requesting
an exchange, review the prospectus of the Fund you wish to acquire.
All
exchanges are subject to the limitations set forth in the prospectuses of
the Funds. If you wish to exchange shares of one Fund for those of another Fund, you must consult the prospectus of the Fund whose shares
you wish to acquire to determine whether the Fund is offering shares to new investors and whether you are eligible to acquire shares of
that Fund.
Permitted
Exchanges
Except
as otherwise provided herein or in the SAI, you generally may exchange your shares for shares of the same class of another Fund. The following
table shows generally permitted exchanges from one Fund to another Fund (exceptions listed below under “Exchanges Not Permitted”):
|
Exchange
From |
Exchange
To |
|
Invesco
Cash Reserve Shares |
Class
A, C, R, Investor Class |
|
| |
|
Class
A |
Class
A, Investor Class, Invesco Cash Reserve Shares* |
|
| |
|
Class
A2 |
Class
A, Investor Class, Invesco Cash Reserve Shares |
|
| |
|
Class
AX |
Class
A, AX, Investor Class, Invesco Cash Reserve Shares |
|
| |
|
Investor
Class |
Class
A, Investor Class |
|
| |
|
Class
P |
Class
A, Invesco Cash Reserve Shares |
|
| |
|
Class
S |
Class
A, S, Invesco Cash Reserve Shares |
|
| |
|
Class
C |
Class
C* |
|
| |
|
Class
CX |
Class
C, CX |
|
| |
|
Class
R |
Class
R* |
|
| |
|
Class
R5 |
Class
R5 |
|
| |
|
Class
R6 |
Class
R6 |
|
| |
|
Class
Y |
Class
Y* |
|
|
|
|
* You
may exchange Class Y shares of Invesco U.S. Government Money Portfolio for Class A, C
or
R shares of any other Fund as long as you are otherwise eligible for such share class. If you
exchange
Class Y shares of Invesco U.S. Government Money Portfolio for Class A, C or R shares
of
any other Fund, you may exchange those Class A, C or R shares back into Class Y shares of
Invesco
U.S. Government Money Portfolio, but not Class Y shares of any other Fund. | |
Exchanges
into Invesco Senior Loan Fund
Invesco
Senior Loan Fund is a closed-end interval fund that continuously offers its shares pursuant to the terms and conditions of its prospectus.
The Adviser is the investment adviser for the Invesco Senior Loan Fund. As with the Invesco Funds, you generally may exchange your shares
of Class A (Invesco Cash Reserve Shares of Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio) or Class
C of any Invesco Fund for shares of Class A or Class C, respectively, of Invesco Senior Loan Fund. Please refer to the prospectus for
the Invesco Senior Loan Fund for more information, including limitations on exchanges out of Invesco Senior Loan Fund.
Exchanges
Not Permitted
The
following exchanges are not permitted:
◾
Investor
Class shares cannot be exchanged for Class A shares of any Fund which offers Investor Class shares.
◾
Class A2
shares of Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund cannot be exchanged for Class A shares
of those Funds.
◾
Invesco
Cash Reserve Shares cannot be exchanged for Class C or R shares if the shares being exchanged were acquired by exchange from Class A
shares of any Fund.
◾
All
existing systematic exchanges and reallocations will cease and these options will no longer be available on all 403(b) prototype plans.
◾
Class
A, C or R shares of a Fund acquired by exchange of Class Y shares of Invesco U.S. Government Money Portfolio cannot be exchanged for Class
Y shares of any Fund, except Class Y shares of Invesco U.S. Government Money Portfolio.
Exchange
Conditions
Shares
must have been held for at least one day prior to the exchange with the exception of dividends and distributions that are reinvested.
Under
unusual market conditions, a Fund may delay the exchange of shares
for up to five business days if it determines that it would be materially disadvantaged by the immediate transfer of exchange proceeds.
The exchange privilege is not an option or right to purchase shares. Any of the participating Funds or the distributor may modify or terminate
this privilege at any time.
Initial
Sales Charges, CDSCs and 12b-1 Fees Applicable to Exchanges
You
may be required to pay an initial sales charge when exchanging from a Fund with a lower initial sales charge than the one into which you
are exchanging. If you exchange into shares that are subject to a CDSC, the Funds’ transfer agent will begin the holding period
for purposes of calculating the CDSC on the date you made your initial purchase.
In
addition, as a result of differences in the forms of distribution plans among
the Funds, certain exchanges of Class A shares, Class C shares, and Class R shares of a Fund for the same class of shares of another Fund
may result in investors paying a higher or a lower 12b-1 fee on the Fund being exchanged into. Please refer to the prospectus fee table
and financial highlights table and the SAI for more information on the fees and expenses, including applicable 12b-1 fees, of the Fund
you wish to acquire.
Share
Class Conversions
Shares
of one class of a Fund may be converted into shares of another class of the same Fund, provided that you are eligible to buy that share
class. Investors who hold Fund shares through a financial intermediary that does not have an agreement to make certain share classes of
the Funds available or that cannot systematically support the conversion may not be eligible to convert their shares. Furthermore, your
financial intermediary may have discretion to effect a conversion on your behalf. Consult with your financial intermediary for details.
Any CDSC associated with the converting shares will be assessed immediately prior to the conversion to the new share class. The conversion
of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes and no gain
or loss will be reported on the transaction. See the applicable prospectus for share class information.
Fees
and expenses differ between share classes. You should read the prospectus
for the share class into which you are seeking to convert your shares prior to the conversion.
Automatic
Conversion of Class C and Class CX Shares
Class
C and Class CX shares held for eight years after purchase are eligible for automatic conversion into Class A and Class AX shares of the
same Fund, respectively, except that for the Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio, the Funds’
Class C and/or Class CX shares would be eligible to automatically convert into the Fund’s Invesco Cash Reserve Share Class and all
existing Class C shares of Invesco Short Term Municipal Fund will automatically convert to Class A shares of that Fund at the end of June
2022 (the Conversion Feature). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month
following the eighth anniversary after a purchase of Class C or Class CX shares (the Conversion Date). The first conversion of Class C
and Class CX shares to Class A and Class AX shares under this policy would occur at the end of December 2020 for all Class C and Class
CX shares that were held for more than eight years as of November 30, 2020.
Automatic
conversions pursuant to the Conversion Feature will be on the basis
of the NAV per share, without the imposition of any sales charge (including a CDSC), fee or other charge. All such automatic conversions
of Class C and Class CX shares will constitute tax-free exchanges for federal income tax purposes.
Class
C and Class CX shares of a Fund acquired through a reinvestment of
dividends and distributions will convert to Class A and Class AX shares, respectively, of the Fund (or Invesco Cash Reserve shares for
Invesco
A-16 The
Invesco Funds
Government
Money Market Fund) on the Conversion Date pro rata with the converting Class C and Class CX shares of that Fund that were not acquired
through reinvestment of dividends and distributions.
Class
C or Class CX shares held through a financial intermediary in existing
omnibus Employer Sponsored Retirement and Benefit Plans and other omnibus accounts may be converted pursuant to the Conversion Feature
by the financial intermediary once it is determined that the Class C or Class CX shares have been held for the required holding period.
It is the financial intermediary’s (and not the Fund’s) responsibility to keep records and to ensure that the shareholder
is credited with the proper holding period as the Fund and its agents may not have transparency into how long a shareholder has held Class
C or Class CX shares for purposes of determining whether such Class C or Class CX shares are eligible to automatically convert pursuant
to the Conversion Feature. In order to determine eligibility for automatic conversion in these circumstances, it is the responsibility
of the shareholder or their financial intermediary to determine that the shareholder is eligible to exercise the Conversion Feature, and
the shareholder or their financial intermediary may be required to maintain records that substantiate the holding period of Class C or
Class CX shares.
In
addition, a financial intermediary may sponsor and/or control programs
or platforms that impose a different conversion schedule or eligibility requirements for conversions of Class C or Class CX shares. In
these cases, Class C and Class CX shares of certain shareholders may not be eligible for automatic conversion pursuant to the Conversion
Feature as described above. The Fund has no responsibility for overseeing, monitoring or implementing a financial intermediary’s
process for determining whether a shareholder meets the required holding period for automatic conversion. Please consult with your financial
intermediary if you have any questions regarding the Conversion Feature.
Share
Class Conversions Not Permitted
The
following share class conversions are not permitted:
◾
Conversions
into Class A from Class A2 of the same Fund.
◾
Conversions
into Class A2, Class AX, Class CX, Class P or Class S of the same Fund.
Rights
Reserved by the Funds
Each
Fund and its agents reserve the right at any time to:
◾
Reject
or cancel all or any part of any purchase or exchange order.
◾
Modify
any terms or conditions related to the purchase, redemption or exchange of shares of any Fund.
◾
Reject
or cancel any request to establish a Systematic Purchase Plan or Systematic Redemption Plan.
◾
Modify
or terminate any sales charge waivers or exceptions.
◾
Suspend,
change or withdraw all or any part of the offering made by this prospectus.
Excessive
Short-Term Trading Activity (Market Timing) Disclosures
While
the Funds provide their shareholders with daily liquidity, their investment programs are designed to serve long-term investors and are
not designed to accommodate excessive short-term trading activity in violation of our policies described below. Excessive short-term trading
activity in the Funds’ shares (i.e., a purchase of Fund shares followed shortly thereafter by a redemption of such shares, or vice
versa) may hurt the long-term performance of certain Funds by requiring them to maintain an excessive amount of cash or to liquidate portfolio
holdings at a disadvantageous time, thus interfering with the efficient management of such Funds by causing them to incur increased brokerage
and administrative costs. Where excessive short-term trading activity seeks to take advantage of arbitrage opportunities from stale prices
for portfolio securities, the value of Fund shares held by long-term investors may be diluted. The Board has adopted policies and procedures
designed to discourage excessive or short-term trading of Fund shares for all Funds except the money market funds, Invesco Conservative
Income Fund, and Invesco Short Term Municipal Fund. However, there is the risk that these Funds’ policies and procedures will prove
ineffective in whole or in part to detect or prevent excessive or
short-term
trading. These Funds may alter their policies at any time without prior notice to shareholders if the Adviser believes the change would
be in the best interests of long-term shareholders.
Invesco
and certain of its corporate affiliates (Invesco and such affiliates,
collectively, the Invesco Affiliates) currently use the following tools designed to discourage excessive short-term trading in the retail
Funds:
◾
Trade
activity monitoring.
◾
Discretion
to reject orders.
◾
Purchase
blocking.
◾
The
use of fair value pricing consistent with the valuation policy approved by the Board and related procedures.
Each
of these tools is described in more detail below. Although these tools
are designed to discourage excessive short-term trading, you should understand that none of these tools alone nor all of them taken together
eliminate the possibility that excessive short-term trading activity in the Funds will occur. Moreover, each of these tools involves judgments
that are inherently subjective. Invesco Affiliates seek to make these judgments to the best of their abilities in a manner that they believe
is consistent with long-term shareholder interests.
Money
Market Funds. The Boards of Invesco Government Money Market Fund,
Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio (the money market
funds) have not adopted any policies and procedures that would limit frequent purchases and redemptions of such Funds’ shares. The
Boards of the money market funds considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal. Nonetheless, to the extent that a money market fund must maintain additional cash and/or
securities with short-term durations in greater amounts than may otherwise be required or borrow to honor redemption requests, the money
market fund’s yield could be negatively impacted.
The
Boards of the money market funds do not believe that it is appropriate
to adopt any such policies and procedures for the money market funds for the following reasons:
◾
The
money market funds are offered to investors as cash management vehicles; therefore, investors should be able to purchase and redeem shares
regularly and frequently.
◾
One
of the advantages of a money market fund as compared to other investment options is liquidity. Any policy that diminishes the liquidity
of the money market funds will be detrimental to the continuing operations of such Funds.
◾
With
respect to the money market funds maintaining a constant net asset value, the money market funds’ portfolio securities are valued
on the basis of amortized cost, and such Funds seek to maintain a constant net asset value. As a result, the money market funds are not
subject to price arbitrage opportunities.
◾
With
respect to the money market funds maintaining a constant net asset value, because such Funds seek to maintain a constant net asset value,
investors are more likely to expect to receive the amount they originally invested in the Funds upon redemption than other mutual funds.
Invesco
Conservative Income Fund. The Board of Invesco Conservative Income
Fund has not adopted any policies and procedures that would limit frequent purchases and redemptions of such Fund’s shares. The
Board of Invesco Conservative Income Fund considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal especially in light of the reasons for not having such a policy as described below. Nonetheless,
to the extent that the Fund must maintain additional cash and/or securities with short-term durations in greater amounts than may otherwise
be required or borrow to honor redemption requests, the Fund’s yield could be negatively impacted.
The
Board of the Invesco Conservative Income Fund does not believe that
it is appropriate to adopt any such policies and procedures for the Fund for the following reasons:
◾
The
Fund is offered to investors as a cash management vehicle; investors perceive an investment in the Fund as an alternative to cash and
must be able to purchase and redeem shares regularly and frequently.
A-17 The
Invesco Funds
◾
One
of the advantages of the Fund as compared to other investment options is liquidity. Any policy that diminishes the liquidity of the Fund
will be detrimental to the continuing operations of the Fund.
Excessive
trading activity in the Fund’s shares may cause the Fund to incur
increased brokerage and administrative costs.
The
Fund and its agent reserve the right at any time to reject or cancel any
part of any purchase order. This could occur if the Fund determines that such purchase may disrupt the Fund’s operation or performance.
Invesco
Short Term Municipal Fund. The Board of Invesco Short Term Municipal
Fund has not adopted any policies and procedures that would limit frequent purchases and redemptions of such Fund’s shares. The
Board of Invesco Short Term Municipal Fund considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal, especially in light of the reasons for not having such a policy as described below. Nonetheless,
to the extent that the Fund must maintain additional cash and/or securities with short-term durations in greater amounts than may otherwise
be required or borrow to honor redemption requests, the Fund’s yield could be negatively impacted.
The
Board of Invesco Short Term Municipal Fund does not believe that it is
appropriate to adopt any such policies and procedures for the Fund for the following reasons:
◾
The
Fund is designed to address the needs of retail investors who seek liquidity in their investment and seek the ability to purchase and
redeem shares at any time.
◾
Any
policy that diminishes the ability of shareholders to purchase and redeem shares of the Fund will be detrimental to the continuing operations
of the Fund.
◾
The
Fund generally invests in short duration liquid investment grade municipal securities.
Excessive
trading activity in the Fund’s shares may cause the Fund to incur
increased brokerage and administrative costs. The Fund and its agent reserve the right at any time to reject or cancel any part of any
purchase order. This could occur if the Fund determines that such purchase may disrupt the Fund’s operation or performance.
Trade
Activity Monitoring
Invesco
Affiliates monitor selected trades on a daily basis in an effort to detect excessive short-term trading activities. If, as a result of
this monitoring, Invesco Affiliates believe that a shareholder has engaged in excessive short-term trading, they will seek to act in a
manner that they believe is consistent with the best interests of long-term investors, which may include taking steps such as (i) asking
the shareholder to take action to stop such activities or (ii) refusing to process future purchases or exchanges related to such activities
in the shareholder’s accounts other than exchanges into a money market fund. Invesco Affiliates will use reasonable efforts to apply
the Funds’ policies uniformly given the practical limitations described above.
The
ability of Invesco Affiliates to monitor trades that are made through accounts
that are maintained by intermediaries (rather than the Funds’ transfer agent) and through conduit investment vehicles may be limited
or non-existent.
Discretion
to Reject Orders
If
a Fund or an Invesco Affiliate determines, in its sole discretion, that your short-term trading activity is excessive, the Fund may, in
its sole discretion, reject any additional purchase and exchange orders. This discretion may be exercised with respect to purchase or
exchange orders placed directly with the Funds’ transfer agent or through a financial intermediary.
Purchase
Blocking Policy
The
Funds (except those listed below) have adopted a policy under which any shareholder redeeming shares having a value of $50,000 or more
from a Fund on any trading day will be precluded from investing in that Fund for 30 calendar days after the redemption transaction date.
The policy applies to redemptions and purchases that are part of exchange transactions. Under the purchase blocking policy, certain purchases
will not be prevented and certain redemptions will not trigger a purchase block, such as: purchases
and redemptions
of shares having a value of less than $50,000; systematic purchase, redemption and exchange account options; transfers of shares within
the same Fund; non-discretionary rebalancing in fund-of-funds; asset allocation features; fee-based accounts; account maintenance fees;
small balance account fees; plan-level omnibus Retirement and Benefit Plans; death and disability and hardship distributions; loan transactions;
transfers of assets; Retirement and Benefit Plan rollovers; IRA conversions and re-characterizations; and mandatory distributions from
Retirement and Benefit Plans.
The
Funds reserve the right to modify any of the parameters (including those
not listed above) of the purchase blocking policy at any time. Further, the purchase blocking policy may be waived with respect to specific
shareholder accounts in those instances where the Adviser determines that its surveillance procedures are adequate to detect frequent
trading in Fund shares.
If
an account is maintained by a financial intermediary whose systems are
unable to apply Invesco’s purchase blocking policy, the Adviser will accept the establishment of an account only if the Adviser
believes the policies and procedures are reasonably designed to enforce the frequent trading policies of the Funds. You should refer to
disclosures provided by the financial intermediary with which you have an account to determine the specific trading restrictions that
apply to you. If the Adviser identifies any activity that may constitute frequent trading, it reserves the right to contact the intermediary
and request that the intermediary either provide information regarding an account owner’s transactions or restrict the account owner’s
trading. There is no guarantee that all instances of frequent trading in Fund shares will be prevented.
The
purchase blocking policy does not apply to Invesco Conservative Income
Fund, Invesco Short Term Municipal Fund, Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government
Money Portfolio and Invesco U.S. Government Money Portfolio.
Pricing
of Shares
Determination
of Net Asset Value
The
price of each Fund’s shares is the Fund’s net asset value per share. The Funds (except Invesco Government Money Market Fund,
Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio) value portfolio
securities for which market quotations are readily available at market value. Securities and other assets quoted in foreign currencies
are valued in U.S. dollars based on the prevailing exchange rates on that day. The Funds (except Invesco Government Money Market Fund,
Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio) value securities
and assets for which market quotations are unavailable at their “fair value,” which is described below. Invesco Government
Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio
value portfolio securities on the basis of amortized cost, which approximates market value. This method of valuation is designed to enable
a Fund to price its shares at $1.00 per share. The Funds cannot guarantee their net asset value will always remain at $1.00 per share.
Securities and other assets quoted in foreign currencies are valued in U.S. dollars based on the prevailing exchange rates on that day.
The Fund values securities and assets for which market quotations are unavailable at their “fair value,” which is described
below.
Even
when market quotations are available, they may be stale or not
representative of market value in the Adviser’s judgment (“unreliable”)
because the security is not traded frequently, trading on the security
ceased before the close of the trading market or issuer specific events occurred after the security ceased trading or because of the passage
of time between the close of the market on which the security trades and the close of the NYSE and when the Fund calculates its net asset
value. Issuer specific events may cause the last market quotation to be unreliable. Such events may include a merger or insolvency, events
that affect a geographical area or an industry segment, such as political events or natural disasters, or market events, such as a significant
movement in the U.S. market. Where
A-18 The
Invesco Funds
the Adviser
determines that the closing price of the security is stale or unreliable, the Adviser will value the security at its fair value.
A
fair value price is an estimated price that requires consideration of all appropriate factors, including indications of fair value available
from pricing services. Fair value pricing involves judgment and a Fund that uses fair value methodologies may value securities higher
or lower than another Fund using market quotations or its own fair value methodologies to price the same securities. Investors who purchase
or redeem Fund shares on days when the Fund is holding fair-valued securities may receive a greater or lesser number of shares, or higher
or lower redemption proceeds, than they would have received if the Fund had not fair-valued the security or had used a different methodology.
The
Board has designated the Adviser to perform the daily determination
of fair value prices in accordance with Board approved
policies and related procedures,
subject to the Board’s oversight. Fair value pricing methods
and pricing services can change from time to time.
The
intended effect of applying fair value pricing is to compute an NAV that
accurately reflects the value of a Fund’s portfolio at the time that the NAV is calculated. An additional intended effect is to
discourage those seeking to take advantage of arbitrage opportunities resulting from “stale” prices and to mitigate the dilutive
impact of any such arbitrage. However, the application of fair value pricing cannot eliminate the possibility that arbitrage opportunities
will exist.
Specific
types of securities are valued as follows:
Senior
Secured Floating Rate Loans and Senior Secured Floating Rate Debt
Securities. Senior secured floating rate loans and senior secured
floating rate debt securities are fair valued using evaluated quotes provided by an independent pricing service. Evaluated quotes provided
by the pricing service may reflect appropriate factors such as market quotes, ratings, tranche type, industry, company performance, spread,
individual trading characteristics, institution-size trading in similar groups of securities and other market data.
Domestic
Exchange Traded Equity Securities. Market quotations are generally
available and reliable for domestic exchange traded equity securities. If market quotations are not available or are unreliable, the Adviser
will value the security at fair value in good faith using the valuation policy approved by the Board and related procedures.
Foreign
Securities. If market quotations are available and reliable for
foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign
securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular
security and the close of the customary trading session on the NYSE events occur that are significant and may make the closing price unreliable,
the Fund may fair value the security. If an issuer specific event has occurred that the Adviser determines, in its judgment, is likely
to have affected the closing price of a foreign security, it will price the security at fair value. The Adviser also relies on a screening
process from a pricing vendor to indicate the degree of certainty, based on historical data, that the closing price in the principal market
where a foreign security trades is not the current market value as of the close of the NYSE. For foreign securities where the Adviser
believes, at the approved degree of certainty, that the price is not reflective of current market value, the Adviser will use the indication
of fair value from the pricing service to determine the fair value of the security. The pricing vendor, pricing methodology or degree
of certainty may change from time to time.
Fund
securities primarily traded on foreign markets may trade on days that
are not business days of the Fund. Because the net asset value of Fund shares is determined only on business days of the Fund, the value
of the portfolio securities of a Fund that invests in foreign securities may change on days when you will not be able to purchase or redeem
shares of the Fund.
Fixed
Income Securities. Fixed income securities, such as government,
corporate, asset-backed and municipal bonds, convertible securities, including high yield or junk bonds, and loans, generally are valued
on the basis of prices provided by independent pricing services. Prices provided by the pricing services may be determined without exclusive
reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in
similar
groups of securities, developments related to special securities, dividend rate, maturity and other market data. Pricing services generally
value fixed income securities assuming orderly transactions of institutional round lot size, but a Fund may hold or transact in the same
securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Prices received from pricing
services are fair value prices. In addition, if the price provided by the pricing service and independent quoted prices are unreliable,
the Adviser will fair value the security using the valuation policy approved by the Board and related procedures.
Short-term
Securities. Invesco Government Money Market Fund, Invesco Premier
Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio value all their securities at amortized
cost. Invesco Limited Term Municipal Income Fund values variable rate securities that have an unconditional demand or put feature exercisable
within seven days or less at par, which reflects the market value of such securities.
Futures
and Options. Futures contracts are valued at the final settlement
price set by the exchange on which they are principally traded. U.S.
exchange-traded options are valued at the mean between the last
bid and asked prices from the exchange on which they principally trade. Non-U.S. exchange-traded options are valued at the final settlement
price set by
the exchange on which they trade. Options not listed on an exchange and swaps generally are valued using pricing provided from independent
pricing services.
Swap
Agreements. Swap Agreements are fair valued using an evaluated
quote provided by an independent pricing service. Evaluated quotes provided by the pricing service are based on a model that may include
end of day net present values, spreads, ratings, industry and company performance.
Open-end
Funds. If a Fund invests in other open-end funds, other than open-end
funds that are exchange traded, the investing Fund will calculate its net asset value using the net asset value of the underlying fund
in which it invests, and the prospectuses for such open-end funds explain the circumstances under which they will use fair value pricing
and the effects of using fair value pricing.
Each
Fund, except for Invesco Government Money Market Fund, Invesco Premier
Portfolio and Invesco Premier U.S. Government Money Portfolio, generally determines the net asset value of its shares on each day the
NYSE is open for trading (a business day) as of approximately 4:00 p.m. Eastern Time (the customary close of regular trading) or earlier
in the case of a scheduled early close. In the event of an unscheduled early close of the NYSE, each Fund, except for Invesco Government
Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio, generally still will determine the net
asset value of its shares as of 4:00 p.m. Eastern Time on that business day. Portfolio securities traded on the NYSE would be valued at
their closing prices unless the Adviser determines
that a “fair value” adjustment is appropriate due to subsequent events occurring after an early close consistent with the
valuation policy approved
by the Board and related procedures. Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government
Money Portfolio will generally determine the net asset value of their shares at 5:30 p.m. Eastern Time on each business day. A business
day for Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio is any day
that (1) both the Federal Reserve Bank of New York and a Fund’s custodian are open for business and (2) the primary trading markets
for the Fund’s portfolio instruments are open and the Fund’s management believes there is an adequate market to meet purchase
and redemption requests. Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money
Portfolio are authorized not to open for trading on a day that is otherwise a business day if the Securities Industry and Financial Markets
Association (SIFMA) recommends that government securities dealers not open for trading; any such day will not be considered a business
day. Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio, Invesco
U.S. Government Money Portfolio also may close early on a business day if SIFMA recommends that government securities dealers close early.
If
A-19 The
Invesco Funds
Invesco
Government Money Market Fund, Invesco Premier Portfolio or Invesco Premier U.S. Government Money Portfolio uses its discretion to
close early on a business day, the Fund will calculate its net asset value as of the time of such closing Invesco Premier Portfolio and
Invesco U.S. Government Money Portfolio are authorized to not open for trading on a day that is otherwise a business day if the NYSE recommends
that government securities dealers not open for trading; any such day will not be considered a business day. Invesco Premier Portfolio
also may close early on a business day if the NYSE recommends that government securities dealers close early.
For
financial reporting purposes and shareholder transactions on the last
day of the fiscal quarter, transactions are normally accounted for on a trade date basis. For purposes of executing shareholder transactions
in the normal course of business (other than shareholder transactions at a fiscal period-end), each Fund’s portfolio securities
transactions are recorded no later than the first business day following the trade date.
The
Invesco Advantage International Fund, Invesco Balanced-Risk Allocation
Fund, Invesco Balanced-Risk Commodity Strategy Fund, Invesco Fundamental Alternatives Fund, Invesco Global Allocation Fund, Invesco Global
Strategic Income Fund, Invesco Gold & Special Minerals Fund, Invesco High Yield Bond Factor Fund, Invesco International Bond Fund
and Invesco Macro Allocation Strategy Fund may each invest up to 25% of their total assets in shares of their respective subsidiaries
(the Subsidiaries). The Subsidiaries offer to redeem all or a portion of their shares at the current net asset value per share every regular
business day. The value of shares of the Subsidiaries will fluctuate with the value of the respective Subsidiary’s portfolio investments.
The Subsidiaries price their portfolio investments pursuant to the same pricing and valuation methodologies and procedures used by the
Funds, which require, among other things, that each of the Subsidiaries’ portfolio investments be marked-to-market (that is, the
value on each of the Subsidiaries’ books changes) each business day to reflect changes in the market value of the investment.
Each
Fund’s current net asset value per share is made available on the Funds’
website at www.invesco.com/us.
Fair
Value Pricing
Securities
owned by a Fund (except Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio
and Invesco U.S. Government Money Portfolio) are to be valued at current market value if market quotations are readily available. All
other securities and assets of a Fund for which market quotations are not readily available are to be valued at fair value determined
in good faith consistent with the valuation policy approved by the Board and related procedures. An effect of fair value pricing may be
to reduce the ability of frequent traders to take advantage of arbitrage opportunities resulting from potentially “stale”
prices of portfolio holdings. However, it cannot eliminate the possibility of frequent trading.
The
price a Fund could receive upon the sale of any investment may differ
from the Adviser's valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair
valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions
(i.e., publicly traded company multiples, growth rate, time to exit), to determine a methodology that will result in a valuation that
the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value
from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and
the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the
investment.
Timing
of Orders
Each
Fund prices purchase, exchange and redemption orders at the net asset value next calculated by the Fund after the Fund’s transfer
agent, authorized agent or designee receives an order in good order for the Fund. Purchase, exchange and redemption orders must be received
prior to the close of business on a business day, as defined by the applicable Fund, to receive that day’s net asset value. Any
applicable sales charges are applied at the time an order is processed.
Currently,
certain financial intermediaries may serve as agents for the Funds
and accept orders on their behalf. Where a financial intermediary serves as agent, the order is priced at the Fund’s net asset value
next calculated after it is accepted by the financial intermediary. In such cases, if requested by a Fund, the financial intermediary
is responsible for providing information with regard to the time that such order for purchase, redemption or exchange was received. Orders
submitted through a financial intermediary that has not received authorization to accept orders on a Fund’s behalf are priced at
the Fund’s net asset value next calculated by the Fund after it receives the order from the financial intermediary and accepts it,
which may not occur on the day submitted to the financial intermediary.
Additional
Information Regarding Deferred Tax Liability (only applicable to the Invesco Steelpath Funds)
In
calculating the Fund’s daily NAV, the Fund will, among other things, account for its deferred tax liability and/or asset balances.
As a result, any deferred tax liability and/or asset is reflected in the Fund’s daily NAV.
The
Fund will accrue a deferred income tax liability balance, at the U.S. federal
corporate income tax rate plus an estimated state and local income tax rate for its future tax liability associated with MLP distributions
considered to be a return of capital, as well as for its future tax liability associated with the capital appreciation of its investments.
The Fund’s current and deferred tax liability, if any, will depend upon the Fund’s net investment gains and losses and realized
and unrealized gains and losses on investments and therefore may vary greatly from year to year depending on the nature of the Fund’s
investments, the performance of those investments and general market conditions. Any deferred tax liability balance will reduce the Fund’s
NAV. Upon the Fund’s sale of an MLP security, the Fund may be liable for previously deferred taxes.
The
Fund will accrue, in accordance with generally accepted accounting principles,
a deferred tax asset balance, which reflects an estimate of the Fund’s future tax benefit associated with net operating losses and
unrealized losses. Any deferred tax asset balance will increase the Fund’s NAV. To the extent the Fund has a deferred tax asset
balance, the Fund will assess, in accordance with generally accepted accounting principles, whether a valuation allowance, which would
offset the value of some or all of the Fund’s deferred tax asset balance, is required. Pursuant to Financial Accounting Standards
Board Accounting Standards Codification 740 (FASB ASC 740), the Fund will assess a valuation allowance to reduce some or all of the deferred
tax asset balance if, based on the weight of all available evidence, both negative and positive, it is more likely than not that some
or all of the deferred tax asset will not be realized. The Fund will use judgment in considering the relative impact of negative and positive
evidence. The weight given to the potential effect of negative and positive evidence will be commensurate with the extent to which such
evidence can be objectively verified. The Fund’s assessment considers, among other matters, the nature, frequency and severity of
current and cumulative losses, the duration of statutory carry forward periods and the associated risk that operating loss and capital
loss carry forwards may be limited or expire unused, and unrealized gains and losses on investments. Consideration is also given to market
cycles, the severity and duration of historical deferred tax assets, the impact of redemptions, and the level of MLP distributions. The
Fund will assess whether a valuation allowance is required to offset some or all of any deferred tax asset in connection with the calculation
of the Fund’s NAV per share each day; however, to the extent the final valuation allowance differs from the estimates the Fund used
in calculating the Fund’s daily NAV, the application of such final valuation allowance could have a material impact on the Fund’s
NAV.
The
Fund’s deferred tax asset and/or liability balances are estimated using
estimates of effective tax rates expected to apply to taxable income in the years such balances are realized. The Fund will rely to some
extent on information provided by MLPs in determining the extent to which distributions received from MLPs constitute a return of capital,
which may not be provided to the Fund on a timely basis, to estimate the Fund’s deferred tax liability and/or asset balances for
purposes of financial statement reporting and determining its NAV. If such information is not
A-20 The
Invesco Funds
received
from such MLPs on a timely basis, the Fund will estimate the extent to which distributions received from MLPs constitute a return of capital
based on average historical tax characterization of distributions made by MLPs. The Fund’s estimates regarding its deferred tax
liability and/or asset balances are made in good faith; however, the daily estimate of the Fund’s deferred tax liability and/or
asset balances used to calculate the Fund’s NAV could vary dramatically from the Fund’s actual tax liability. Actual income
tax expense, if any, will be incurred over many years, depending on if and when investment gains and losses are realized, the then-current
basis of the Fund’s assets and other factors. As a result, the determination of the Fund’s actual tax liability may have a
material impact on the Fund’s NAV. The Fund’s daily NAV calculation will be based on then current estimates and assumptions
regarding the Fund’s deferred tax liability and/or asset balances and any applicable valuation allowance, based on all information
available to the Fund at such time. From time to time, the Fund may modify its estimates or assumptions regarding its deferred tax liability
and/or asset balances and any applicable valuation allowance as new information becomes available. Modifications of the Fund’s estimates
or assumptions regarding its deferred tax liability and/or asset balances and any applicable valuation allowance, changes in generally
accepted accounting principles or related guidance or interpretations thereof, limitations imposed on net operating losses (if any) and
changes in applicable tax law could result in increases or decreases in the Fund’s NAV per share, which could be material.
Taxes
(applicable to all Funds except for the Invesco SteelPath Funds and Invesco Master Loan Fund)
A
Fund intends to qualify each year as a regulated investment company (RIC) and, as such, is not subject to entity-level tax on the income
and gain it distributes to shareholders. If you are a taxable investor, dividends and distributions you receive from a Fund generally
are taxable to you whether you reinvest distributions in additional Fund shares or take them in cash. Every year, you will be sent information
showing the amount of dividends and distributions you received from a Fund during the prior calendar year. In addition, investors in taxable
accounts should be aware of the following basic tax points as supplemented below where relevant:
Fund Tax
Basics
◾
A
Fund earns income generally in the form of dividends or interest on its investments. This income, less expenses incurred in the operation
of a Fund, constitutes the Fund’s net investment income from which dividends may be paid to you. If you are a taxable investor,
distributions of net investment income generally are taxable to you as ordinary income.
◾
Distributions
of net short-term capital gains are taxable to you as ordinary income. A Fund with a high portfolio turnover rate (a measure of how frequently
assets within a Fund are bought and sold) is more likely to generate short-term capital gains than a Fund with a low portfolio turnover
rate.
◾
Distributions
of net long-term capital gains are taxable to you as long-term capital gains no matter how long you have owned your Fund shares.
◾
A
portion of income dividends paid by a Fund to you may be reported as qualified dividend income eligible for taxation by individual shareholders
at long-term capital gain rates, provided certain holding period requirements are met. These reduced rates generally are available for
dividends derived from a Fund’s investment in stocks of domestic corporations and qualified foreign corporations. In the case of
a Fund that invests primarily in debt securities, either none or only a nominal portion of the dividends paid by the Fund will be eligible
for taxation at these reduced rates.
◾
The
use of derivatives by a Fund may cause the Fund to realize higher amounts of ordinary income or short-term capital gain, distributions
from which are taxable to individual shareholders at ordinary income tax rates rather than at the more favorable tax rates for long-term
capital gain.
◾
Distributions
declared to shareholders with a record date in October, November or December—if paid to you by the end of January—are taxable
for federal income tax purposes as if received in December.
◾
Any
long-term or short-term capital gains realized on the sale or redemption of your Fund shares will be subject to federal income tax. For
tax
purposes an exchange of your shares for shares of another Fund is the same as a sale. An exchange occurs when the purchase of shares of
a Fund is made using the proceeds from a redemption of shares of another Fund and is effectuated on the same day as the redemption. Your
gain or loss is calculated by subtracting from the gross proceeds your cost basis. Gross proceeds and, for shares acquired on or after
January 1, 2012 and disposed of after that date, cost basis will be reported to you and the Internal Revenue Service (IRS). Cost
basis will be calculated using the Fund’s default method of average cost, unless you instruct the Fund to use a different calculation
method. As a service to you, the Fund will continue to provide to you (but not the IRS) cost basis information for shares acquired before
2012, when available, using the average cost method. Shareholders should carefully review the cost basis information provided by a Fund
and make any additional basis, holding period or other adjustments that are required when reporting these amounts on their federal income
tax returns. If you hold your Fund shares through a broker (or other nominee), please contact that broker (nominee) with respect to reporting
of cost basis and available elections for your account. For more information about the cost basis methods offered by Invesco, please refer
to the Tax Center located under the Account Access & Forms menu of our website at www.Invesco.com/us.
◾
The
conversion of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes
and no gain or loss will be reported on the transaction. This is true whether the conversion occurs automatically pursuant to the terms
of the class or is initiated by the shareholder.
◾
At
the time you purchase your Fund shares, the Fund’s net asset value may reflect undistributed income or undistributed capital gains.
A subsequent distribution to you of such amounts, although constituting a return of your investment, would be taxable. Buying shares in
a Fund just before it declares an income dividend or capital gains distribution is sometimes known as “buying a dividend.”
In addition, a Fund’s net asset value may, at any time, reflect net unrealized appreciation, which may result in future taxable
distributions to you.
◾
By
law, if you do not provide a Fund with your proper taxpayer identification number and certain required certifications, you may be subject
to backup withholding on any distributions of income, capital gains, or proceeds from the sale of your shares. A Fund also must withhold
if the IRS instructs it to do so. When withholding is required, the amount will be 24% of any distributions or proceeds paid.
◾
An
additional 3.8% Medicare tax is imposed on certain net investment income (including ordinary dividends and capital gain distributions
received from a Fund and net gains from redemptions or other taxable dispositions of Fund shares) of U.S. individuals, estates and trusts
to the extent that such person’s “modified adjusted gross income” (in the case of an individual) or “adjusted
gross income” (in the case of an estate or trust) exceeds a threshold amount. This Medicare tax, if applicable, is reported by you
on, and paid with, your federal income tax return.
◾
You
will not be required to include the portion of dividends paid by a Fund derived from interest on U.S. government obligations in your
gross income for purposes of personal and, in some cases, corporate income taxes in many state and local tax jurisdictions. The percentage
of dividends that constitutes dividends derived from interest on federal obligations will be determined annually. This percentage may
differ from the actual percentage of interest received by the Fund on federal obligations for the particular days on which you hold shares.
◾
Fund
distributions and gains from sale or exchange of your Fund shares generally are subject to state and local income taxes.
◾
If
a Fund qualifies to pass through to you the tax benefits from foreign taxes it pays on its investments, and elects to do so, then any
foreign taxes it pays on these investments may be passed through to you. You will then be required to include your pro-rata share of these
taxes in gross income, even though not actually received by you, and will be entitled either to deduct your share of these taxes in computing
your taxable income, or to claim a foreign tax credit for these taxes against your U.S. federal income tax.
A-21 The
Invesco Funds
◾
Foreign
investors should be aware that U.S. withholding, special certification requirements to avoid U.S. backup withholding and claim
any treaty benefits, and estate taxes may apply to an investment in a Fund.
◾
Under
the Foreign Account Tax Compliance Act (FATCA), a Fund will be required to withhold a 30% tax on income dividends made by the Fund to
certain foreign entities, referred to as foreign financial institutions or non-financial foreign entities, that fail to comply (or be
deemed compliant) with extensive reporting and withholding requirements designed to inform the U.S. Department of the Treasury of U.S.-owned
foreign investment accounts. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide otherwise (which
is not expected). A Fund may disclose the information that it receives from its shareholders to the IRS, non-U.S. taxing authorities or
other parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that is a shareholder
of a Fund fails to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.
◾
If
a Fund invests in an underlying fund taxed as a RIC, please see any relevant section below for more information regarding the Fund’s
investment in such underlying fund.
The
above discussion concerning the taxability of Fund dividends and distributions and of redemptions and exchanges of Fund shares is inapplicable
to investors holding shares through a tax-advantaged arrangement, such as Retirement and Benefit Plans or 529 college savings plans. Such
investors should refer to the applicable account documents/program description for that arrangement for more information regarding the
tax consequences of holding and redeeming Fund shares.
Funds
Investing in Municipal Securities
◾
You
will not be required to include the “exempt-interest” portion of dividends paid by the Fund in either your gross income for
federal income tax purposes or your net investment income subject to the additional 3.8% Medicare tax. You will be required to report
the receipt of exempt-interest dividends and other tax-exempt interest on your federal income tax returns. The percentage of dividends
that constitutes exempt-interest dividends will be determined annually. This percentage may differ from the actual percentage of exempt
interest received by the Fund for the particular days in which you hold shares.
◾
A
Fund may invest in municipal securities the interest on which constitutes an item of tax preference and could give rise to a federal alternative
minimum tax liability for noncorporate shareholders, unless such municipal securities were issued in 2009 or 2010.
◾
Exempt-interest
dividends from interest earned on municipal securities of a state, or its political subdivisions, generally are exempt from that state’s
personal income tax. Most states, however, do not grant tax-free treatment to interest from municipal securities of other states.
◾
A
Fund may invest a portion of its assets in securities that pay income that is not tax-exempt. To the extent that dividends paid by a Fund
are derived from taxable investments or realized capital gains, they will be taxable as ordinary income or long-term capital gains.
◾
A
Fund may distribute to you any market discount and net short-term capital gains from the sale of its portfolio securities. If you are
a taxable investor, Fund distributions from this income are taxable to you as ordinary income, and generally will neither qualify for
the dividends-received deduction in the case of corporate shareholders nor as qualified dividend income subject to reduced rates of taxation
in the case of noncorporate shareholders.
◾
Exempt-interest
dividends from a Fund are taken into account when determining the taxable portion of your social security or railroad retirement benefits,
may be subject to state and local income taxes, may affect the deductibility of interest on certain indebtedness, and may have other collateral
federal income tax consequences for you.
◾
There
are risks that: (a) a security issued as tax-exempt may be reclassified by the IRS or a state tax authority as taxable and/or (b) future
legislative,
administrative or court actions could adversely impact the qualification of income from a tax-exempt security as tax-free. Such reclassifications
or actions could cause interest from a security to become taxable, possibly retroactively, subjecting you to increased tax liability.
In addition, such reclassifications or actions could cause the value of a security, and therefore, the value of the Fund’s shares,
to decline.
Money
Market Funds
◾
A
Fund does not anticipate realizing any long-term capital gains.
◾
If
a Fund expects to maintain a stable net asset value of $1.00 per share, investors should not have any gain or loss on sale or exchange
of Fund shares (unless the investor incurs a liquidity fee on such sale or exchange). See “Liquidity Fees and Redemption Gates.”
◾
There
is some degree of uncertainty with respect to the tax treatment of liquidity fees received by a Fund, and such tax treatment may be the
subject of future IRS guidance. If a Fund receives liquidity fees, it will consider the appropriate tax treatment of such fees to the
Fund at such time.
◾
Unless
you choose to adopt a simplified “NAV method” of accounting (described below), any capital gain or loss on the sale or exchange
of Fund shares (as noted above) generally will be treated either as short-term if you held your Fund shares for one year or less, or long-term
if you held your Fund shares longer. If you elect to adopt the NAV method of accounting, rather than computing gain or loss on every taxable
disposition of Fund shares as described above, you would determine your gain or loss based on the change in the aggregate value of your
Fund shares during a computation period (such as your taxable year), reduced by your net investment (purchases minus sales) in those shares
during that period. Under the NAV method, any resulting net capital gain or loss would be treated as short-term capital gain or loss.
Funds
Investing in Real Estate Securities
◾
Because
of “noncash” expenses such as property depreciation, the cash flow of a REIT that owns properties will exceed its taxable
income. The REIT, and in turn a Fund, may distribute this excess cash to shareholders. Such a distribution is classified as a return of
capital. Return of capital distributions generally are not taxable to you. Your cost basis in your Fund shares will be decreased by the
amount of any return of capital. Any return of capital distributions in excess of your cost basis will be treated as capital gains.
◾
Dividends
paid to shareholders from the Funds’ investments in U.S. REITs generally will not qualify for taxation at long-term capital gain
rates applicable to qualified dividend income.
◾
The
Fund may derive “excess inclusion income” from certain equity interests in mortgage pooling vehicles either directly or through
an investment in a U.S. REIT. Please see the SAI for a discussion of the risks and special tax consequences to shareholders in the event
the Fund realizes excess inclusion income in excess of certain threshold amounts.
◾
Under
the Tax Cuts and Jobs Act, “qualified REIT dividends” (i.e., ordinary REIT dividends other than capital gain dividends and
portions of REIT dividends designated as qualified dividend income) are treated as eligible for a 20% deduction by noncorporate taxpayers.
The Fund may choose to report the special character of “qualified REIT dividends” to a shareholder, provided both the Fund
and a shareholder meet certain holding period requirements with respect to their shares.
◾
The
Fund’s foreign shareholders should see the SAI for a discussion of the risks and special tax consequences to them from a sale of
a U.S. real property interest by a REIT in which the Fund invests.
Funds
Investing in Partnerships
◾
Taxes,
penalties, and interest associated with an audit of a partnership
are generally required to be assessed and collected at the partnership level. Therefore, an adverse federal income tax audit of a partnership
that a Fund invests in (including MLPs taxed as partnerships) could result in the Fund being required to pay federal income tax. A Fund
may have little input in any audit asserted against a partnership and may be contractually or legally obligated to make payments in regard
to deficiencies asserted without the ability to put forward an independent defense. Accordingly,
A-22 The
Invesco Funds
even
if a partnership in which the Fund invests were to remain classified as a partnership (instead of as a corporation), it could be required
to pay additional taxes, interest and penalties as a result of an audit adjustment, and the Fund, as a direct or indirect partner of such
partnership, could be required to bear the economic burden of those taxes, interest and penalties, which would reduce the value of Fund
shares.
◾
Under
the Tax Cuts and Jobs Act “qualified publicly traded partnership income” is treated as eligible for a 20% deduction by noncorporate
taxpayers. The legislation does not contain a provision permitting a RIC, such as a Fund, to pass the special character of this income
through to its shareholders. It is uncertain whether a future technical corrections bill or regulations issued by the IRS will address
this issue to enable a Fund to pass through the special character of “qualified publicly traded partnership income” to its
shareholders.
◾
Some
amounts received by a Fund from the MLPs in which it invests likely will be treated as returns of capital to such Fund because of accelerated
deductions available to the MLPs. The receipt of returns of capital from the MLPs in which a Fund invests could cause some or all of the
Fund’s distributions to be classified as a return of capital. Return of capital distributions generally are not taxable to you.
Your cost basis in your Fund shares will be decreased by the amount of any return of capital. Any return of capital distributions in excess
of your cost basis will be treated as capital gains.
Funds
Investing in Commodities
◾
The
Funds’ strategies of investing through their respective Subsidiary in derivatives and other financially linked instruments whose
performance is expected to correspond to the commodity markets may cause the Funds to recognize more ordinary income and short-term capital
gains taxable as ordinary income than would be the case if the Funds invested directly in commodities.
◾
The
Funds must meet certain requirements under the Code for favorable tax treatment as a RIC, including asset diversification and income requirements.
The IRS has issued a revenue ruling which holds that income derived from commodity-linked swaps is not qualifying income for purposes
of the Income Requirement. In a subsequent revenue ruling, as well as in a number of follow-on private letter rulings (upon which only
the fund that received the private letter ruling may rely), the IRS provides that income from certain alternative investments which create
commodity exposure, such as certain commodity-linked or structured notes or a corporate subsidiary that invests in commodities, may be
considered qualifying income under the Code. However, the portion of such rulings relating to the treatment of a corporation as a regulated
investment company that require a determination of whether a financial instrument or position is a security under section 2(a)(36) of
the 1940 Act was revoked because of changes in the IRS’s position.
(A financial instrument or position that constitutes a security
under section 2(a)(36) of the 1940 Act generates qualifying income for a corporation taxed as a regulated investment company.) The Funds
intend to treat the income each derives from commodity-linked notes as qualifying income based on an opinion from counsel confirming that
income from such investments should be qualifying income because such commodity-linked notes constitute securities under section 2(a)(36)
of the 1940 Act. Each Subsidiary will be classified for federal income tax purposes as a controlled foreign corporation (CFC) with respect
to the Fund. As such, the Fund will be required to include in its gross income each year amounts earned by the Subsidiary during that
year (“Subpart F” income), whether or not such earnings are distributed by the Subsidiary to the Fund (deemed inclusions).
Treasury Regulations also permit the Fund to treat such deemed inclusions of “Subpart F” income from the Subsidiary as qualifying
income to the Fund, even if the Subsidiary does not make a distribution of such income. Consequently, the Fund and the Subsidiary reserve
the right to rely on deemed inclusions being treated as qualifying income to the Fund consistent with recently released Treasury Regulations.
If, contrary to the opinion of counsel or other guidance issued by the IRS, the IRS were to determine that income from direct investment
in commodity-linked notes is non-qualifying, a Fund might fail to satisfy
the
income requirement. In lieu of disqualification, the Funds are permitted to pay a tax for certain failures to satisfy the asset diversification
or income requirements, which, in general, are limited to those due to reasonable cause and not willful neglect. The Funds intend to limit
their investments in their respective Subsidiary to no more than 25% of the value of each Fund’s total assets in order to satisfy
the asset diversification requirement.
Funds
Investing in Foreign Currencies
◾
The
Funds may realize gains from the sale or other disposition of foreign currencies (including but not limited to gains from options, futures
or forward contracts) derived from investing in securities or foreign currencies. The U.S. Treasury Department is authorized to issue
regulations on whether the realization of such foreign currency gains is qualified income for the Funds. If such regulations are issued,
each Fund may not qualify as a RIC and/or the Fund may change its investment policy. As of the date of this prospectus, no regulations
have been issued pursuant to this authorization. It is possible, however, that such regulations may be issued in the future. Additionally,
the IRS has not issued any guidance on how to apply the asset diversification test to such foreign currency positions. Thus, the IRS’
determination as to how to treat such foreign currency positions for purposes of satisfying the asset diversification test might differ
from that of each Fund resulting in the Fund’s failure to qualify as a RIC. In lieu of disqualification, each Fund is permitted
to pay a tax for certain failures to satisfy the asset diversification or income requirements, which, in general, are limited to those
due to reasonable cause and not willful neglect.
◾
The
Funds’ transactions in foreign currencies may give rise to ordinary income or loss to the extent such income or loss results from
fluctuations in the value of the foreign currency concerned. This treatment could increase or decrease the Funds' ordinary income distributions
to you, and may cause some or all of the Funds' previously distributed income to be classified as a return of capital. Return of capital
distributions generally are not taxable to you. Your cost basis in your Fund shares will be decreased by the amount of any return of capital.
Any return of capital distributions in excess of your cost basis will be treated as capital gains.
This
discussion of “Taxes” is for general information only and not
tax advice. All investors should consult their own tax advisers as to the federal, state, local and foreign tax provisions applicable
to them.
Taxes
(applicable to the Invesco SteelPath Funds
only)
Although
the Code generally provides that a RIC does not pay an entity-level income tax, provided that it distributes all or substantially all
of its income, the Fund is not and does not anticipate becoming eligible to elect to be treated as a RIC because most or substantially
all of the Fund’s investments will consist of investments in MLP securities. The RIC tax rules therefore have no application to
the Fund or to its shareholders. As a result, the Fund is treated as a regular corporation, or “C” corporation, for U.S. federal
income tax purposes, and generally is subject to U.S. federal income tax on its taxable income at the corporate income tax rate. In addition,
as a regular corporation, the Fund will be subject to state and local taxes by reason of its tax status and its investments in MLPs. Therefore,
the Fund may have to pay federal, multiple state, and local taxes, which would reduce the Fund’s cash available to make distributions
to shareholders. An estimate for federal, state, and local tax liabilities will reduce the fund’s net asset value. The extent to
which the Fund is required to pay U.S. federal, state or local corporate income, franchise or other corporate taxes could materially reduce
the Fund’s cash available to make distributions to shareholders. In addition, investors in taxable accounts should be aware of the
following basic tax points as supplemented below where relevant:
Fund
Tax Basics
◾
The
Fund intends to invest a significant portion of its assets in MLPs, which are generally treated as partnerships for U.S. federal income
tax purposes. To the extent that the Fund invests in equity securities of an MLP, the Fund will be a partner in such MLP. Accordingly,
the Fund will be
A-23 The
Invesco Funds
required
to take into account the Fund’s allocable share of the income, gains, losses, deductions, and credits recognized by each such MLP,
regardless of whether the MLP distributes cash to the Fund. MLP distributions to partners, such as the Fund, are not taxable unless the
cash amount (or in certain cases, the fair market value of marketable securities) distributed exceeds the Fund’s basis in its MLP
interest. The Fund expects that the cash distributions it will receive with respect to its investments in equity securities of MLPs will
exceed the net taxable income allocated to the Fund from such MLPs because of tax deductions such as depreciation, amortization and depletion
that will be allocated to the Fund from the MLPs. No assurance, however, can be given in this regard. If this expectation is not realized,
the Fund will have a larger corporate income tax expense than expected, which will result in less cash available for distribution to shareholders.
◾
The
Fund will recognize gain or loss on the sale, exchange or other taxable disposition of its portfolio assets, including equity securities
of MLPs, equal to the difference between the amount realized by the Fund on the sale, exchange or other taxable disposition and the Fund’s
adjusted tax basis in such assets. Any such gain will be subject to U.S. federal income tax at the corporate income tax rate, regardless
of how long the Fund has held such assets since preferential capital gain rates do not apply to regular corporations such as the Fund.
The amount realized by the Fund in any case generally will be the amount paid by the purchaser of the assets plus, in the case of MLP
equity securities, the Fund’s allocable share, if any, of the MLP’s debt that will be allocated to the purchaser as a result
of the sale, exchange or other taxable disposition. The Fund’s tax basis in its equity securities in an MLP generally is equal to
the amount the Fund paid for the equity securities, (i) increased by the Fund’s allocable share of the MLP’s net taxable income
and certain MLP debt, if any, and (ii) decreased by the Fund’s allocable share of the MLP’s net losses and any distributions
received by the Fund from the MLP. Although any distribution by an MLP to the Fund in excess of the Fund’s allocable share of such
MLP’s net taxable income may create a temporary economic benefit to the Fund, net of a deferred tax liability, such distribution
will decrease the Fund’s tax basis in its MLP investment and will therefore increase the amount of gain (or decrease the amount
of loss) that will be recognized on the sale of an equity security in the MLP by the Fund. To the extent that the Fund has a net capital
loss in any year, the net capital loss can be carried back three taxable years and forward five taxable years to reduce the Fund’s
capital gains in such years. In the event a capital loss carryover cannot be utilized in the carryover periods, the Fund’s federal
income tax liability may be higher than expected, which will result in less cash available to distribute to shareholders.
◾
Distributions
by the Fund of cash or property in respect of the shares (other than certain distributions in redemption of shares) will be treated as
dividends for U.S. federal income tax purposes to the extent paid from the Fund’s current or accumulated earnings and profits (as
determined under U.S. federal income tax principles). Generally, the Fund’s earnings and profits are computed based upon the Fund’s
taxable income (loss), with certain specified adjustments. Any such dividend likely will be eligible for the dividends-received deduction
if received by an otherwise qualifying corporate U.S. shareholder that meets certain holding period and other requirements for the dividends-received
deduction. Dividends paid by the Fund to certain non-corporate U.S. shareholders (including individuals), generally are eligible for U.S.
federal income taxation at the rates generally applicable to long-term capital gains for individuals provided that the U.S. shareholder
receiving the dividend satisfies applicable holding period and other requirements. Otherwise, dividends paid by the Fund to non-corporate
U.S. Shareholders (including individuals) will be taxable at ordinary income rates.
◾
If
the amount of a Fund distribution exceeds the Fund’s current and accumulated earnings and profits, such excess will be treated first
as a tax-deferred return of capital to the extent of, and in reduction of, a shareholder’s tax basis in the shares, and thereafter
as capital gain to the extent the shareholder held the shares as a capital asset. Any such capital gain will be long-term capital gain
if such shareholder has held the applicable shares for more than one year. The portion of the distribution
received
by a shareholder from the Fund that is treated as a return of capital will decrease the shareholder’s tax basis in his or her Fund
shares (but not below zero), which will result in an increase in the amount of gain (or decrease in the amount of loss) that will be recognized
by the shareholder for tax purposes on the later sale of such Fund shares.
◾
The
Fund anticipates that the cash distributions it will receive with respect to its investments in equity securities of MLPs and which it
will distribute to its shareholders will exceed the Fund’s current and accumulated earnings and profits. Accordingly, the Fund expects
that only a part of its distributions to shareholders with respect to the shares will be treated as dividends for U.S. federal income
tax purposes. No assurance, however, can be given in this regard.
◾
Special
rules may apply to the calculation of the Fund’s earnings and profits. For example, the Fund’s earnings and profits will be
calculated using the straight-line depreciation method rather than the accelerated depreciation method. This difference in treatment may,
for example, result in the Fund’s earnings and profits being higher than the Fund’s taxable income or loss in a particular
year if the MLPs in which the Fund invests calculate their income using accelerated depreciation. Because of these special earnings profits
rules, the Fund may make distributions in a particular year out of earnings and profits (treated as dividends) in excess of the amount
of the Fund’s taxable income or loss for such year, which means that a larger percentage of the Fund ’s distributions could
be taxable to shareholders as ordinary income instead of tax-deferred return of capital or capital gain.
◾
Shareholders
that receive distributions in shares rather than in cash will be treated for U.S. federal income tax purposes as having (i) received a
cash distribution equal to the fair market value of the shares received and (ii) reinvested such amount in shares.
◾
A
redemption of shares will be treated as a sale or exchange of such shares, provided the redemption is not essentially equivalent to a
dividend, is a substantially disproportionate redemption, is a complete redemption of a shareholder’s entire interest in the Fund,
or is in partial liquidation of such Fund. Redemptions that do not qualify for sale or exchange treatment will be treated as distributions
as described above. Upon a redemption treated as a sale or exchange under these rules, a shareholder generally will recognize capital
gain or loss equal to the difference between the adjusted tax basis of his or her shares and the amount received when they are sold.
◾
If
the Fund is required to sell portfolio securities to meet redemption requests, the Fund may recognize income and gains for U.S. federal,
state and local income and other tax purposes, which may result in the imposition of corporate income or other taxes on the Fund and may
increase the Fund’s current and accumulated earnings and profits, which will result in a greater portion of distributions to Fund
shareholders being treated as dividends. Any long-term or short-term capital gains realized on sale or redemption of your Fund shares
will be subject to federal income tax. For tax purposes an exchange of your shares for shares of another Fund is the same as a sale. An
exchange occurs when the purchase of shares of a Fund is made using the proceeds from a redemption of shares of another Fund and is effectuated
on the same day as the redemption. Your gain or loss is calculated by subtracting from the gross proceeds your cost basis. Gross proceeds
and, for shares acquired on or after January 1, 2012 and disposed of after that date, cost basis will be reported to you and the IRS.
Cost basis will be calculated using the Fund’s default method of first-in, first-out (FIFO), unless you instruct the Fund to use
a different calculation method. Shareholders should carefully review the cost basis information provided by a Fund and make any additional
basis, holding period or other adjustments that are required when reporting these amounts on their federal income tax returns. If you
hold your Fund shares through a broker (or other nominee), please contact that broker (nominee) with respect to reporting of cost basis
and available elections for your account. For more information about the cost basis methods offered by Invesco, please refer to the Tax
Center located under the Account Access & Forms menu of our website at www.invesco.com/us.
A-24 The
Invesco Funds
◾
The
conversion of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes
and no gain or loss will be reported on the transaction. This is true whether the conversion occurs automatically pursuant to the terms
of the class or is initiated by the shareholder.
◾
At
the time you purchase your Fund shares, the Fund’s net asset value may reflect undistributed income. A subsequent distribution to
you of such amounts, although constituting a return of your investment, would be taxable. Buying shares in a Fund just before it declares
an income dividend is sometimes known as “buying a dividend.” In addition, a Fund’s net asset value may, at any time,
reflect net unrealized appreciation, which may result in future taxable distributions to you.
◾
By
law, if you do not provide a Fund with your proper taxpayer identification number and certain required certifications, you may be subject
to backup withholding on any distributions of income, capital gains, or proceeds from the sale of your shares. A Fund also must withhold
if the IRS instructs it to do so. When withholding is required, the amount will be 24% of any distributions or proceeds paid.
◾
A
3.8% Medicare tax is imposed on certain net investment income (including ordinary dividends received from a Fund and net gains from redemptions
or other taxable dispositions of Fund shares) of U.S. individuals, estates and trusts to the extent that such person’s “modified
adjusted gross income” (in the case of an individual) or “adjusted gross income” (in the case of an estate or trust)
exceeds a threshold amount. This Medicare tax, if applicable, is reported by you on, and paid with, your federal income tax return.
◾
Fund
distributions and gains from sale or exchange of your Fund shares generally are subject to state and local income taxes.
◾
Foreign
investors should be aware that U.S. withholding, special certification requirements to avoid U.S. backup withholding and claim any treaty
benefits, and estate taxes may apply to an investment in a Fund.
◾
Under
the Foreign Account Tax Compliance Act (FATCA), a Fund will be required to withhold a 30% tax on income dividends made by the Fund to
certain foreign entities, referred to as foreign financial institutions or non-financial foreign entities, that fail to comply (or be
deemed compliant) with extensive reporting and withholding requirements designed to inform the U.S. Department of the Treasury of U.S.-owned
foreign investment accounts. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide otherwise (which
is not expected). A Fund may disclose the information that it receives from its shareholders to the IRS, non-U.S. taxing authorities or
other parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that is a shareholder
of a Fund fails to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.
◾
Taxes,
penalties, and interest associated with an audit of a partnership are generally required to be assessed and collected at the partnership
level. Therefore, an adverse federal income tax audit of an MLP taxed as a partnership that the Fund invests in could result in the Fund
being required to pay federal income tax. The Fund may have little input in any audit asserted against an MLP and may be contractually
or legally obligated to make payments in regard to deficiencies asserted without the ability to put forward an independent defense. Accordingly,
even if an MLP in which the Fund invests were to remain classified as a partnership, it could be required to pay additional taxes, interest
and penalties as a result of an audit adjustment, and the Fund, as a direct or indirect partner of such MLP, could be required to bear
the economic burden of those taxes, interest and penalties, which would reduce the value of Fund shares.
◾
Under
the Tax Cuts and Jobs Act certain “qualified publicly traded partnership income” (e.g., certain income from certain of the
MLPs in which the Fund invests) is treated as eligible for a 20% deduction by noncorporate taxpayers. The Tax Cuts and Jobs Act does not
contain a provision permitting an entity, such as the Fund, to benefit from this
deduction
(since the Fund is taxed as a “C” corporation) or pass the special character of this income through to its shareholders. Qualified
publicly traded partnership income allocated to a noncorporate investor investing directly in an MLP might, however, be eligible for the
deduction.
The
above discussion concerning the taxability of Fund dividends and distributions
and of redemptions and exchanges of Fund shares is inapplicable to investors holding shares through a tax-advantaged arrangement, such
as Retirement and Benefit Plans or 529 college savings plans. Such investors should refer to the applicable account documents/program
description for that arrangement for more information regarding the tax consequences of holding and redeeming Fund shares.
This
discussion of “Taxes” is for general information only and not
tax advice. All investors should consult their own tax advisers as to the federal, state, local and foreign tax provisions applicable
to them.
Federal
Income Taxes (applicable to Invesco Master Loan Fund only)
United
States Taxes
The
Fund is classified as a partnership and will not be a regulated investment company for US federal income tax purposes. As a partnership,
the Fund is not a taxable entity for federal income tax purposes and, subject to the application of the partnership audit rules described
below, incurs no federal income tax liability. Each Investor is required to take into account its proportionate share of items of income,
gain, loss and deduction of the partnership in computing its federal income tax liability regardless of whether or not cash or property
distributions are then made by the Fund. Following the close of the Fund’s taxable year end, Investors will receive a tax statement
entitled Schedule K-1 Partner’s Share of Income, Deductions, Credits, etc., which reports the tax status of their distributive share
of the Fund’s items for the previous year.
Taxation
of Distributions, Sales and Exchanges
In
general, distributions of money by the Fund to an Investor will represent a non-taxable return of capital up to the amount of an Investor’s
adjusted tax basis in its shares. An Investor will recognize gain to the extent that any money distributed by the Fund exceeds the Investor’s
adjusted tax basis in its shares. In the case of a non-taxable return of capital by the Fund to an Investor, other than in liquidation
of the Investor’s interest in the Fund, the tax basis of his shares will be reduced (but not below zero) and will result in an increase
in the amount of gain (or decrease in the amount of loss) that will be recognized by the Investor on the later sale of its shares. A distribution
in partial or complete redemption of your shares in the Fund is taxable as a sale or exchange only to the extent the amount of money received
exceeds the tax basis of your entire interest in the Fund. Any loss may be recognized only if you redeem your entire interest in the Fund
for money.
When
you sell shares of the Fund, you may have a capital gain or loss.
Derivatives
The
use of derivatives by the Fund may cause the Fund to realize higher amounts of ordinary income or short-term capital gain, allocations
of which are taxable to individual Investors at ordinary income tax rates rather than at the more favorable tax rates for long-term capital
gain. Changes in government regulation of derivative instruments could affect the character, timing and amount of the Fund’s taxable
income or gains, and may limit the Fund from using certain types of derivative instruments as part of its investment strategy.
Risk
of Audit of the Fund
Under
the partnership audit rules, which are generally applicable to tax years beginning after December 31, 2017, the Internal Revenue Service
(“IRS”) may collect any taxes resulting from audit adjustments to the Fund’s income tax returns (including any applicable
penalties and interest) directly from the Fund. In that case, current Investors would bear some or all of the
A-25 The
Invesco Funds
tax liability
resulting from such audit adjustment, even if they did not own interests in the Fund during the tax year under audit. The Fund may have
the ability to shift any such tax liability to the Investors in accordance with their interests in the Fund during the year under audit,
but there can be no assurance that the Fund will be able to do so under all circumstances. For taxable years not subject to the new audit
rules, items of Fund income, gain, loss, deduction and credit will be determined at the Fund level in a unified audit. NO REPRESENTATION
OR WARRANTY OF ANY KIND IS MADE WITH RESPECT TO THE TAXATION, DEDUCTIBILITY OR CAPITALIZATION OF ANY ITEM BY THE FUND OR INVESTOR. In
addition, the “partnership representative” (tax matters partner, for taxable years before the partnership audit rules become
effective) will have the sole authority to act on the Fund’s behalf for purposes of, among other things, federal income tax audits
and judicial review of administrative adjustments by the IRS, and any such actions will be binding on the Fund and all of the Investors.
Unrelated
Business Taxable Income
An
allocable share of a tax-exempt Investor’s income will be “unrelated business taxable income” (“UBTI”) to
the extent that the Fund borrows money to acquire property or invests in assets that produce UBTI.
Medicare
Tax
An
additional 3.8% Medicare tax is imposed on certain net investment income of US individuals, estates and trusts to the extent that such
person’s “modified adjusted gross income” (in the case of an individual) or “adjusted gross income” (in
the case of an estate or trust) exceeds a threshold amount. “Net investment income,” for these purposes, means investment
income (including (i) net gains from the taxable disposition of shares of a Fund to the extent the net gain would be taken into account
by the Investor if the Fund sold all of its property for fair market value immediately before the disposition of the shares of the Fund,
and (ii) an allocable share of a Fund’s interest, dividends and net gains) reduced by the deductions properly allocable to such
income. This Medicare tax, if applicable, is reported by Investors on, and paid with, the Investor’s federal income tax return.
State,
Local and Non-US Tax Matters
An
Investor’s distributive share of the Fund’s income, and gains from the sale or exchange of an Investor’s Fund shares,
generally are subject to state and local taxes in the jurisdiction in which the Investor resides or is otherwise subject to tax.
Prospective
investors should consider their individual state and local tax consequences
of an investment in the Fund.
Tax
Considerations for Non-US Investors
If,
as anticipated, the Fund is not deemed to be engaged in a US trade or business, the Fund generally will be required to withhold tax on
the distributive share of certain items of gross income from US sources allocated to non-US Investors at a 30% (or lower treaty) rate.
Certain categories of income, including portfolio interest, are not subject to US withholding tax. Capital gains (other than gain realized
on disposition of US real property interests) are not subject to US withholding tax unless the non-US Investor is a nonresident alien
individual present in the United States for a period or periods aggregating 183 days or more during the taxable year. If, on the other
hand, the Fund derives income which is effectively connected with a US trade or business carried on by the Fund, this 30% tax will not
apply to such effectively connected income of the Fund, and the Fund generally will be required to withhold tax from the amount of effectively
connected income allocable to non-US Investors at the highest rate of tax applicable to US residents, and non-US Investors generally would
be required to file US income tax returns and be subject to US income tax on a net basis. Gain or loss on a sale of shares will be treated
as effectively connected with a U.S. trade or business to the extent that a foreign corporation or foreign individual that owns the shares
(whether directly or indirectly through other partnerships) would have had effectively connected gain or loss had the partnership sold
its underlying assets and applicable US
withholding
tax will apply. Non-US Investors may be subject to US estate tax and are subject to special US tax certification requirements.
Other
Reporting and Withholding Requirements
Under
the Foreign Account Tax Compliance Act (“FATCA”), the Fund will be required to withhold at a 30% rate on certain US source
payments (such as interest and dividends) to certain Investors if the Investor fails to provide the Fund with the information which identifies
its direct and indirect US ownership. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide otherwise (which
is not expected). A Fund may disclose the information that it receives from an Investor to the IRS, non-US taxing authorities or other
parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that is an Investor fails
to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.
For
a more complete discussion of the federal income tax consequences
of investing in the Fund, see the Statement of Additional Information.
This
discussion of “Federal Income Taxes” is not intended or written
to be used as tax advice. Because everyone’s tax situation is unique, Investors should consult their tax professional about federal,
state, local and foreign tax consequences before making an investment in the Fund.
Payments
to Financial Intermediaries – All Share Classes except Class R6 shares
The
financial adviser or intermediary through which you purchase your shares may receive all or a portion of the sales charges and distribution
fees discussed above. In addition to those payments, Invesco Distributors and other Invesco Affiliates, may make additional cash payments
to financial intermediaries in connection with the promotion and sale of shares of the Funds. These additional cash payments may include
cash payments and other payments for certain marketing and support services. Invesco Affiliates make these payments from their own resources,
from Invesco Distributors’ retention of initial sales charges and from payments to Invesco Distributors made by the Funds under
their 12b-1 plans. In the context of this prospectus, “financial intermediaries” include any broker, dealer, bank (including
bank trust departments), registered investment adviser, financial planner, retirement plan administrator, insurance company and any other
financial intermediary having a selling, administration or similar agreement with Invesco Affiliates.
The
benefits Invesco Affiliates receive when they make these payments include,
among other things, placing the Funds on the financial intermediary’s fund sales system, and access (in some cases on a preferential
basis over other competitors) to individual members of the financial intermediary’s sales force or to the financial intermediary’s
management. These payments are sometimes referred to as “shelf space” payments because the payments compensate the financial
intermediary for including the Funds in its fund sales system (on its “sales shelf”). Invesco Affiliates compensate financial
intermediaries differently depending typically on the level and/or type of considerations provided by the financial intermediary. The
payments Invesco Affiliates make may be calculated based on sales of shares of the Funds (Sales-Based Payments), in which case the total
amount of such payments shall not exceed 0.25% (0.10% for Class R5 shares) of the public offering price of all shares sold by the financial
intermediary during the particular period. Payments may also be calculated based on the average daily net assets of the applicable Funds
attributable to that particular financial intermediary (Asset-Based Payments), in which case the total amount of such cash payments shall
not exceed 0.25% per annum of those assets during a defined period. Sales-Based Payments primarily create incentives to make new sales
of shares of the Funds and Asset-Based Payments primarily create incentives to retain previously sold shares of the Funds in investor
accounts. Invesco Affiliates
A-26 The
Invesco Funds
may pay a financial
intermediary either or both Sales-Based Payments and Asset-Based Payments.
Invesco
Affiliates are motivated to make these payments as they promote
the sale of Fund shares and the retention of those investments by clients of the financial intermediaries. To the extent financial intermediaries
sell more shares of the Funds or retain shares of the Funds in their clients’ accounts, Invesco Affiliates benefit from the incremental
management and other fees paid to Invesco Affiliates by the Funds with respect to those assets.
The
Funds’ transfer agent may make payments to certain financial intermediaries
for certain administrative services, including record keeping and sub-accounting of shareholder accounts pursuant to a sub-transfer agency,
omnibus account service or sub-accounting agreement. All fees payable by Invesco Affiliates under this category of services are charged
back to the Funds, subject to certain limitations approved by the Board.
You
can find further details in the Fund’s SAI about these payments and the
services provided by financial intermediaries. In certain cases these payments could be significant to the financial intermediaries. Your
financial adviser may charge you additional fees or commissions other than those disclosed in this prospectus. You can ask your financial
adviser about any payments it receives from Invesco Affiliates or the Funds, as well as about fees and/or commissions it charges.
Important
Notice Regarding Delivery of Security Holder Documents
To
reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address
(Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not
want the mailing of these documents to be combined with those for other members of your household, please contact the Funds’ transfer
agent at 800-959-4246 or contact your financial institution. The Funds’ transfer agent will begin sending you individual copies
for each account within thirty days after receiving your request.
A-27 The
Invesco Funds
Obtaining Additional Information
More information
may be obtained free of charge upon request. The SAI, a current version of which is on file with the SEC, contains more details about
the Fund and is incorporated by reference into this prospectus (is legally a part of this prospectus). Annual and semi-annual reports
to shareholders contain additional information about the Fund’s investments. The Fund’s annual report also discusses the market
conditions and investment strategies that significantly affected the Fund’s performance during its last fiscal year. The Fund also
files its complete schedule of portfolio holdings with the SEC for the 1st and 3rd quarters of each fiscal year as an exhibit to its reports
on Form N-PORT.
If
you have questions about an Invesco Fund or your account, or you wish to obtain a free copy of the Fund’s current SAI, annual or
semi-annual reports or Form N-PORT, please contact us.
|
By
Mail: |
Invesco
Investment Services, Inc.
P.O.
Box 219078
Kansas
City, MO 64121-9078 |
|
By
Telephone: |
(800)
959-4246 |
|
On
the Internet: |
You
can send us a request by e-mail or
download
prospectuses, SAIs, annual or
semi-annual
reports via our website:
www.invesco.com/us
|
Reports
and other information about the Fund are available on the EDGAR Database on the SEC's Internet site at http://www.sec.gov, and copies
of this information may be obtained, after paying a duplicating fee, by electronic request at the following e-mail address: publicinfo@sec.gov.
|
Invesco Master
Loan Fund
SEC 1940 Act file
number: 811-09913 |
|
invesco.com/us
|
O-MLF-PRO-1
|
Prospectus
December
16,
2022
Class:
R6 (IVNQX )
Invesco
NASDAQ 100 Index Fund
As
with all other mutual fund securities, the U.S. Securities and Exchange Commission (SEC) has not approved or disapproved these securities
or passed upon the adequacy of this prospectus. Any representation to the contrary is a criminal offense.
An
investment in the Fund:
◾
is
not FDIC insured;
◾
may
lose value; and
◾
is
not guaranteed by a bank.
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Back
Cover |
Invesco
NASDAQ 100 Index Fund
The
Fund’s investment objective is to seek to track the investment results (before fees and expenses) of the Nasdaq-100 Index®
(the “Underlying Index”).
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 R6 shares.
|
Class:
|
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:
|
R6
|
|
Management
Fees |
|
|
| |
|
Distribution
and/or Service (12b-1) Fees |
|
|
| |
|
Other
Expenses |
|
|
| |
|
Total
Annual Fund Operating Expenses |
|
|
| |
|
Fee
Waiver and/or Expense Reimbursement1
|
|
|
| |
|
Total
Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement |
|
|
| |
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 R6 shares. The Example also assumes that your investment has a 5% return
each year and that the Fund’s operating expenses remain equal to the Total Annual Fund Operating Expenses After Fee Waiver and/or
Expense Reimbursement in the first year and the Total Annual Fund Operating Expenses thereafter.
Although
your actual costs may be higher or lower, based on these assumptions,
your costs would be:
|
|
1
Year |
3
Years |
5
Years |
10
Years |
|
Class
R6 |
$
|
$
|
$
|
$
|
|
| ||||
The
Fund invests, under normal circumstances, at least 80% of its net assets (plus any borrowings for investment purposes) in securities represented
in the Underlying Index and in derivatives and other instruments that have economic characteristics similar to such securities. The Underlying
Index includes securities of 100 of the largest domestic and international nonfinancial companies listed on The Nasdaq Stock Market LLC
based on market capitalization.
The
Underlying Index is a modified market capitalization-weighted (a hybrid
between equal weighting and conventional capitalization weighting) index that reflects companies from all major sectors, except for companies
that are classified as
“financials” according
to the
Industry Classification Benchmark (“ICB”), a product of FTSE International Limited. Security types generally eligible for
inclusion in the Underlying Index are common stocks, ordinary shares, tracking stocks, and American depositary receipts that represent
securities of non-U.S. issuers. Companies organized as Real Estate Investment Trusts (“REITs”) are not eligible for inclusion
in the Underlying Index.
The
Underlying Index is typically reweighted quarterly and rebalanced annually.
At the annual weight adjustment, no security may exceed 14% of the Underlying Index. At the quarterly weight adjustment, no issuer may
exceed 24% of the weight of the Underlying Index. The Fund is generally reweighted and rebalanced in accordance with the Underlying Index.
In
seeking to track the investment results (before fees and expenses) of the
Underlying Index, the portfolio managers primarily utilize a “full replication” methodology, pursuant to which the Fund generally
invests in all of the securities comprising the Underlying Index in proportion to their weightings in the Underlying Index.
The
Fund can invest in derivative instruments including futures contracts.
The Fund can use exchange-traded futures contracts, including index futures, to gain exposure to equity securities represented in the
Underlying Index while managing cash balances.
The
Fund intends to be diversified in approximately the same proportion as
the Underlying Index is diversified. The Fund may be “non-diversified,” as defined in the Investment Company Act of 1940 (1940
Act), solely as a result of a change in relative market capitalization or index weighting of one or more constituents of the Underlying
Index. As a “non-diversified” fund, the Fund can invest a greater percentage of its assets in a small group of issuers or
in any one issuer than a diversified fund can. Shareholder approval will not be sought when the Fund crosses from diversified to non-diversified
status due solely to a change in the relative market capitalization or index weighting of one or more constituents of the Underlying Index.
As of August 31, 2022, the Underlying Index is non-diversified, and therefore as of that same date, the Fund is managed as non-diversified
solely in accordance with the Underlying Index.
The
Fund will concentrate its investments (i.e., invest more than 25% of the
value of its total assets) in securities of issuers in any one industry or group of industries only to the extent that the Underlying
Index reflects a concentration in that industry or group of industries. The Fund will not otherwise concentrate its investments in securities
of issuers in any one industry or group of industries. As of August 31, 2022, the Fund had significant exposure to the information technology
sector. The Fund’s portfolio holdings, and the extent to which it concentrates, are likely to change over time.
1 Invesco
NASDAQ 100 Index Fund
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, natural or environmental disasters, widespread disease or other public health issues, war, military conflict, acts of terrorism
or adverse investor sentiment generally. Individual stock prices tend to go up and down more dramatically than those of certain other
types of investments, such as bonds. 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.
Investing
in Stocks Risk. The value of the Fund’s portfolio may be
affected by changes in the stock markets. Stock markets may experience significant short-term volatility and may fall 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.
Index
Risk. Unlike many investment companies, the Fund does not utilize
an investing strategy that seeks returns in excess of its Underlying Index. Therefore, the Fund would not necessarily buy or sell a security
unless that security is added to or removed from, respectively, the Underlying Index, even if that security generally is underperforming.
Additionally, the Fund generally rebalances its portfolio in accordance with the Underlying Index, and, therefore, any changes to the
Underlying Index’s rebalance schedule will typically result in corresponding changes to the Fund’s rebalance schedule.
Industry
Concentration Risk. In following its methodology, the Underlying
Index from time to time may be concentrated to a significant degree in securities of issuers operating in a single industry or group of
industries. To the extent that the Underlying Index concentrates in the securities of issuers in a particular industry or group of industries,
the Fund will also concentrate its investments to approximately the same extent. By concentrating its investments in an industry or group
of industries, the Fund faces more risks than if it were diversified broadly over numerous industries or groups of industries. Such industry-based
risks, any of which may adversely affect the companies in which the Fund invests, may include, but are not limited to, legislative or
regulatory changes, adverse market conditions and/or increased competition within the industry or group of industries. In addition, at
times, such industry or group of industries may be out of favor and underperform other industries, groups of industries or the market
as a whole.
Technology
Sector Risk. Technology companies are subject to intense competition,
rapid obsolescence of their products, issues with obtaining financing or regulatory approvals, product incompatibility, changing consumer
preferences, increased government scrutiny, high required
corporate
capital expenditure for research and development or infrastructure and development of new products, each of which make the prices of securities
issued by these companies more volatile. Technology companies are also heavily dependent on patent and other intellectual property rights,
and the loss or impairment of these rights may adversely affect the company's profitability.
Non-Diversification
Risk. Under
the Investment Company Act of 1940 (1940 Act), a fund designated as “diversified” must limit its holdings such that the securities
of issuers which individually represent more than 5% of its total assets must in the aggregate represent less than 25% of its total assets.
The Fund is “diversified” for purposes of the 1940 Act. However, in seeking to track its Underlying Index, the Fund may be
“non-diversified,” as defined in the 1940 Act, solely as a result of a change in relative market capitalization or index weighting
of one or more constituents of the Underlying Index. A non-diversified fund 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. In such circumstances, a change in the value
of one or a few issuers’ securities will therefore affect the value of the Fund more than if it was a diversified fund.
Depositary
Receipts Risk. Investing in depositary receipts involves the same
risks as direct investments in foreign securities. In addition, the underlying issuers of certain depositary receipts are under no obligation
to distribute shareholder communications or pass through any voting rights with respect to the deposited securities to the holders of
such receipts. The Fund may therefore receive less timely information or have less control than if it invested directly in the foreign
issuer.
Derivatives
Risk. The value of a derivative instrument depends largely on (and
is derived from) the value of an underlying security, currency, commodity, interest rate, index or other asset (each referred to as an
underlying asset). In addition to risks relating to the underlying assets, the use of derivatives may include other, possibly greater,
risks, including counterparty, leverage and liquidity risks. Counterparty risk is the risk that the counterparty to the derivative contract
will default on its obligation to pay the Fund the amount owed or otherwise perform under the derivative contract. Derivatives create
leverage risk because they do not require payment up front equal to the economic exposure created by holding a position in the derivative.
As a result, an adverse change in the value of the underlying asset could result in the Fund sustaining a loss that is substantially greater
than the amount invested in the derivative or the anticipated value of the underlying asset, which may make the Fund’s returns more
volatile and increase the risk of loss. Derivative instruments may also be less liquid than more traditional investments and the Fund
may be unable to sell or close out its derivative positions at a desirable time or price. This risk may be more acute under adverse market
conditions, during which the Fund may be most in need of liquidating its derivative positions. Derivatives may also be harder to value,
less tax efficient and subject to changing government regulation that could impact the Fund’s ability to use certain derivatives
or their cost. Derivatives strategies may not always be successful. For example, derivatives used for hedging or to gain or limit exposure
to a particular market segment may not provide the expected benefits, particularly during adverse market conditions.
Non-Correlation
Risk. The Fund’s return may not match the return of the Underlying
Index for a number of reasons. For example, the Fund incurs operating expenses not applicable to the Underlying Index, and incurs costs
in buying and selling securities, especially when rebalancing and reconstituting the Fund’s securities holdings to reflect changes
in the composition of the Underlying Index. In addition, the performance of the Fund and the Underlying Index may vary due to asset valuation
differences and differences between the Fund’s portfolio and the Underlying Index resulting from legal restrictions, costs or liquidity
constraints.
2 Invesco
NASDAQ 100 Index Fund
the Fund
from year to year as of December 31. The performance table compares
the Fund's performance to that of a broad-based/style-specific securities market benchmark and a peer group benchmark comprised of funds
with investment objectives and strategies similar to those of the Fund (in that order).
The
Fund's past performance (before and after taxes) is not necessarily an indication of its future performance.
Updated
performance information is available on the Fund's website at www.invesco.com/us .
Annual Total Returns
|
Class
R6 |
Period
Ended |
Returns
|
|
|
|
-
|
|
|
|
|
|
|
|
|
Average Annual Total Returns (for the periods ended December 31, 2021)
|
|
Inception
Date
|
1
Year
|
Since
Inception
|
|
Class
R6 |
|
|
|
|
Return
Before Taxes |
|
|
|
|
Return
After Taxes on Distributions |
|
|
|
|
Return
After Taxes on Distributions and Sale of Fund
Shares
|
|
|
|
|
| |||
|
Nasdaq-100®
Index net
of withholding taxes) |
|
|
|
|
| |||
|
Lipper
Large-Cap Growth Funds Index |
|
|
|
|
| |||
Management
of the Fund
Investment
Adviser: Invesco Advisers, Inc. (Invesco or the Adviser)
Investment
Sub-Adviser: Invesco Capital Management LLC
|
Portfolio
Managers |
Title
|
Length
of Service on the Fund |
|
Peter
Hubbard |
Portfolio
Manager |
2020
|
|
| ||
|
Pratik
Doshi, CFA |
Portfolio
Manager |
2020
|
|
| ||
|
Michael
Jeanette |
Portfolio
Manager |
2020
|
|
| ||
|
Tony
Seisser |
Portfolio
Manager |
2020
|
|
| ||
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.
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 R6 shares, the minimum
initial investment 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’s distributor or its related
companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest
by influencing the broker-dealer or other intermediary and your salesperson or financial adviser to recommend the Fund over another investment.
Ask your salesperson or financial adviser or visit your financial intermediary’s website for more information.
Investment Objective(s), Strategies, Risks and Portfolio Holdings
Objective(s)
and Strategies
The
Fund’s investment objective is to seek to track the investment results (before fees and expenses) of the Nasdaq-100 Index®
(the “Underlying Index”).
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 represented in the Underlying Index and in derivatives and other instruments
that have economic characteristics similar to such securities. This policy may be changed by the Board, but no change is anticipated.
If the Fund’s policy changes, the Fund will notify shareholders at least 60 days prior to implementation of the change.
The
Underlying Index includes securities of 100 of the largest domestic and
international nonfinancial companies listed on the Nasdaq Stock Market LLC based on market capitalization. Non-financial companies are
all companies except for those classified as “financials” according to ICB, a product of FTSE International Limited. The Underlying
Index reflects companies across major industry groups, including computer hardware and software, telecommunications, retail/wholesale
trade, and biotechnology. It excludes financial companies, including investment companies. Security types generally eligible for inclusion
in the Underlying Index are common stocks, ordinary shares, tracking stocks, and American depositary receipts that represent securities
of non-U.S. issuers. Companies organized as REITs are not eligible for inclusion in the Underlying Index. There is no minimum market capitalization
requirement for inclusion in the Underlying Index.
To
be eligible for inclusion in the Underlying Index, a security must meet additional
criteria, including:
◾
the
security must have a minimum three-month average daily trading volume of 200,000 shares;
◾
the
security may not be issued by an issuer currently in bankruptcy proceedings;
3 Invesco
NASDAQ 100 Index Fund
◾
if
the issuer of the security is organized under the laws of a jurisdiction outside the U.S., then such security must have listed options
on a recognized options market in the U.S. or be eligible for listed-options trading on a recognized options market in the U.S.;
◾
the
issuer of the security generally may not have entered into a definitive agreement or other arrangement that would make it ineligible for
Index inclusion and where the transaction is imminent as determined by Nasdaq, Inc. (the “Index Provider”);
◾
if
an issuer has listed multiple security classes, all security classes are eligible, subject to meeting all other eligibility criteria;
and
◾
the
security must have traded for at least three full calendar months, not including the month of initial listing, on an eligible exchange
(such as The Nasdaq Stock Market LLC, New York Stock Exchange, NYSE American or CBOE BZX) and is determined as of the constituent selection
reference date, including that month.
The
Underlying Index is typically rebalanced annually after the close of trading
on the third Friday in December. To be eligible for inclusion in the Underlying Index, a security must meet the above eligibility criteria
based on market data as of the end of October and total shares outstanding as of the end of November. The Underlying Index is calculated
under a “modified market capitalization-weighted” methodology, which is a hybrid between equal weighting and conventional
capitalization weighting. At the annual weight adjustment, no security may exceed 14% of the Underlying Index. At the quarterly weight
adjustment, no issuer may exceed 24% of the weight of the Underlying Index. As of October 31, 2022, the Underlying Index was comprised
of 102 constituents with market capitalizations ranging from $8.9 billion to $2.4 trillion.
The
Underlying Index is typically reweighted quarterly in March, June, September
and December after the close of trading on the third Friday in those respective months. The reweighting process uses data regarding the
total outstanding shares and last sale price of all component securities as of the end of the month prior to the reweighting (i.e., February,
May, August and November). However, a special rebalance may be conducted at any time if it is determined to be necessary to maintain the
integrity of the Underlying Index. In addition, securities may be added to or removed from the Underlying Index outside of a scheduled
rebalance in certain situations, including, for example, if the Index Provider determines that a security has or will undergo a fundamental
alteration that would make it ineligible for inclusion in the Underlying Index. Furthermore, certain corporate actions and events of issuers
in the Underlying Index may require maintenance and adjustments to the Underlying Index.
The
Fund is generally rebalanced and reweighted in accordance with the
Underlying Index.
In
seeking to track the investment results (before fees and expenses) of the
Underlying Index, the portfolio managers primarily utilize a “full replication” methodology pursuant to which the Fund generally
invests in all of the securities comprising its Underlying Index in approximately the same proportions as the weightings of the securities
in the Underlying Index. However, under various circumstances, it may not be possible or practicable to purchase all of those securities
in those same weightings. In those circumstances, the portfolio managers may purchase a sample of securities in its Underlying Index.
A
“sampling” methodology means that the portfolio managers use a quantitative
analysis to select securities from the Underlying Index universe to obtain a representative sample of securities that have, in the aggregate,
investment characteristics similar to the Underlying Index in terms of key risk factors, performance attributes and other characteristics.
These include industry weightings, market capitalization, return variability, earnings valuation, yield and other financial characteristics
of securities. When employing a sampling methodology, the portfolio managers base the quantity of holdings in the Fund on a number of
factors, including asset size of the Fund, and generally expects the Fund to hold less than the total number of securities in the Underlying
Index. However, the portfolio
managers
reserve the right to invest the Fund in as many securities as they believe necessary to achieve the Fund’s investment objective.
There
also may be instances in which the Adviser may choose to (i) overweight
or underweight a security in the Underlying Index, (ii) purchase securities not contained in the Underlying Index that the Adviser believes
are appropriate to substitute for certain securities in the Underlying Index, or (iii) utilize various combinations of other available
investment techniques in seeking to track the Underlying Index.
The
Fund may sell securities included in the Underlying Index in anticipation
of their removal from the Underlying Index, or purchase securities not included in the Underlying Index in anticipation of their addition
to the Underlying Index.
The
Fund can use exchange-traded futures contracts, including index futures,
to gain exposure to equity securities represented in the Underlying Index while managing cash balances. For example, the Fund may receive
cash as a result of a shareholder purchase prior to its periodic rebalancing; instead of holding the cash until the next rebalancing of
the Fund’s portfolio, the portfolio managers may purchase index futures to maintain exposure to securities included in the Underlying
Index. When the Fund’s portfolio is rebalanced, the index futures would be sold and the resulting cash would be invested in securities
included in the Underlying Index.
A
futures contract is a standardized agreement between two parties to buy
or sell a specified quantity of an underlying asset at a specified price at a specified future time. The value of a futures contract tends
to increase and decrease in tandem with the value of the underlying asset. Futures contracts are bilateral agreements, with both the purchaser
and the seller equally obligated to complete the transaction. Depending on the terms of the particular contract, futures contracts are
settled by purchasing an offsetting contract, physically delivering the underlying asset on the settlement date or paying a cash settlement
amount on the settlement date.
The
Fund intends to be diversified in approximately the same proportion as
the Underlying Index is diversified. The Fund may be “non-diversified,” as defined in the 1940 Act, solely as a result of
a change in relative market capitalization or index weighting of one or more constituents of the Underlying Index. As a “non-diversified”
fund, the Fund can invest a greater percentage of its assets in a small group of issuers or in any one issuer than a diversified fund
can. Shareholder approval will not be sought when the Fund crosses from diversified to non-diversified status due solely to a change in
the relative market capitalization or index weighting of one or more constituents of the Underlying Index. As of August 31, 2022, the
Underlying Index is non-diversified, and therefore as of that same date, the Fund is managed as non-diversified solely in accordance with
the Underlying Index.
The
Fund will concentrate its investments (i.e., invest more than 25% of the
value of its net assets) in securities of issuers in any one industry or group of industries only to the extent that the Underlying Index
reflects a concentration in that industry or group of industries. The Fund will not otherwise concentrate its investments in securities
of issuers in any one industry or group of industries. As of August 31, 2022, the Fund had significant exposure to the information technology
sector. The Fund’s portfolio holdings, and the extent to which it concentrates, are likely to change over time.
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 Fund and Its 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
4 Invesco
NASDAQ 100 Index Fund
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 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. Because the Fund is passively managed, such
circumstances may also impact the Fund to a greater degree than mutual funds with investment advisers that actively manage their portfolio
assets to take advantage of or defend against market events. Individual stock prices tend to go up and down more dramatically than those
of certain other types of investments, such as bonds. 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.
◾
COVID-19.
The “COVID-19” strain of coronavirus has resulted in instances of market closures and dislocations, extreme volatility, liquidity
constraints and increased trading costs. Efforts to contain its spread have resulted in travel restrictions, disruptions of healthcare
systems, business operations (including business closures) and supply chains, layoffs, lower consumer demand and employee availability,
and defaults and credit downgrades, among other significant economic impacts that have disrupted global economic activity across many
industries. Such economic impacts may exacerbate other pre-existing political, social and economic risks locally or globally and cause
general concern and uncertainty. The full economic impact and ongoing effects of COVID-19 (or other future epidemics or pandemics) at
the macro-level and on individual businesses are unpredictable and may result in significant and prolonged effects on the Fund’s
performance.
Investing
in Stocks Risk. Common stock represents an ownership interest in
a company. It ranks below preferred stock and debt securities in claims for dividends and in claims for assets of the issuer in a liquidation
or bankruptcy. Common stocks may be exchange-traded or over-the-counter securities. Over-the-counter securities may be less liquid than
exchange-traded securities.
The
value of the Fund’s portfolio may be affected by changes in the stock
markets. Stocks and other equity securities fluctuate in price in response to changes to equity markets in general. Stock markets may
experience significant short-term volatility and may fall or rise sharply at times. Adverse events in any part of the equity or fixed-income
markets may have unexpected negative effects on other market segments. Different stock markets may behave differently from each other
and U.S. stock markets may move in the opposite direction from one or more foreign stock markets.
The
prices of individual stocks generally do not all move in the same direction
at the same time. However, individual stock prices tend to go up and down more dramatically than those of certain other types of investments,
such as bonds. A variety of factors can negatively affect the price of a particular company’s stock. These factors may include,
but are not limited to: poor earnings reports, a loss of customers, litigation against the company, general unfavorable performance of
the company’s sector or industry, or changes in government regulations affecting the company or its industry. To the extent that
securities of a particular type are emphasized (for example foreign stocks, stocks of small- or mid-cap companies, growth or value stocks,
or stocks of companies in a particular industry), their share values may fluctuate more in response to events affecting the market for
those types of securities.
Index
Risk. Unlike many investment companies that are “actively
managed,” the Fund is a “passive” investor and therefore does not utilize an investing strategy that seeks returns in
excess of the Underlying Index. Therefore, the Fund would not necessarily buy or sell a security unless that security is added to or removed
from, respectively, the Underlying Index, even if that security generally is underperforming. If a specific security is removed from the
Underlying Index, the Fund may be forced to sell such security at an inopportune time or for a price lower than the security’s current
market value. The Underlying Index may not contain the appropriate mix of securities for any particular economic cycle. Additionally,
the Fund generally rebalances its portfolio in accordance with the Underlying Index, and, therefore, any changes to the Underlying Index’s
rebalance schedule will typically result in corresponding changes to the Fund’s rebalance schedule. Further, unlike with an actively
managed fund, the Adviser does not use techniques or defensive strategies designed to lessen the impact of periods of market volatility
or market decline. This means that, based on certain market and economic conditions, the Fund’s performance could be lower than
other types of mutual funds with investment advisers that actively manage their portfolio assets to take advantage of or defend against
market events.
Industry
Concentration Risk. In following its methodology, the Underlying
Index from time to time may be concentrated to a significant degree in securities of issuers operating in a single industry or group of
industries. To the extent that the Underlying Index concentrates in the securities of issuers in a particular industry or group of industries,
the Fund will also concentrate its investments to approximately the same extent. By concentrating its investments in an industry or group
of industries, the Fund may face more risks than if it were diversified broadly over numerous industries or groups of industries. Such
industry-based risks, any of which may adversely affect the companies in which the Fund invests, may include, but are not limited to legislative
or regulatory changes, adverse market conditions and/or increased competition within the industry or group of industries. In addition,
at times, such industry or group of industries may be out of favor and underperform other industries, groups of industries or the market
as a whole. Information about the Fund’s exposure to a particular industry or group of industries will be available in the Fund’s
Annual and Semi-Annual Reports to Shareholders, as well as on required forms filed with the SEC.
Technology
Sector Risk. Technology companies are subject to intense competition
and their products are at risk of rapid obsolescence, which make the prices of securities issued by these companies particularly volatile.
Product obsolescence can result from rapid technological developments, frequent new product introduction, unpredictable changes in growth
rates and competition for the services of qualified personnel. Factors
5 Invesco
NASDAQ 100 Index Fund
that may
also significantly affect the market value of securities of issuers in the technology sector include the failure to obtain, or delays
in obtaining, financing or regulatory approvals, product incompatibility, changing consumer preferences, increased government scrutiny,
high required corporate capital expenditure for research and development or infrastructure and development of new products. Technology
companies are also heavily dependent on patent and other intellectual property rights, and the loss or impairment of these rights may
adversely affect the company's profitability.
Non-Diversification
Risk. Under the 1940 Act, a fund designated as “diversified”
must limit its holdings such that the securities of issuers which individually represent more than 5% of its total assets must in the
aggregate represent less than 25% of its total assets. The Fund is “diversified” for purposes of the 1940 Act. However, in
seeking to track its Underlying Index, the Fund may be “non-diversified,” as defined in the 1940 Act, solely as a result of
a change in relative market capitalization or index weighting of one or more constituents of the Underlying Index. A non-diversified fund
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. In such circumstances, a change in the value of one or a few issuers’ securities will therefore affect the value of the
Fund more than if it was a diversified fund.
Depositary
Receipts Risk. Depositary receipts involve many of the same risks
as those associated with direct investment in foreign securities. In addition, the underlying issuers of certain depositary receipts,
particularly unsponsored or unregistered depositary receipts, are under no obligation to distribute shareholder communications to the
holders of such receipts or to pass through to them any voting rights with respect to the deposited securities. The Fund may therefore
receive less timely information or have less control than if it invested directly in the foreign issuer.
Derivatives
Risk. A derivative is an instrument whose value depends largely
on (and is derived from) the value of an underlying security, currency, commodity, interest rate, index or other asset (each referred
to as an underlying asset). In addition to risks relating to the underlying assets, the use of derivatives may include other, possibly
greater, risks, which are described below.
◾
Counterparty
Risk. Certain derivatives do not trade on an established exchange
(referred to as over-the-counter (OTC) derivatives) and are simply financial contracts between the Fund and a counterparty. When the Fund
is owed money on an OTC derivative, the Fund is dependent on the counterparty to pay or, in some cases, deliver the underlying asset,
unless the Fund can otherwise sell its derivative contract to a third party prior to its expiration. Many counterparties are financial
institutions such as banks and broker-dealers and their creditworthiness (and ability to pay or perform) may be negatively impacted by
factors affecting financial institutions generally. In addition, in the event that a counterparty becomes bankrupt or insolvent, the Fund’s
ability to recover the collateral that the Fund has on deposit with the counterparty could be delayed or impaired. For derivatives traded
on a centralized exchange, the Fund generally is dependent upon the solvency of the relevant exchange clearing house (which acts as a
guarantor for each contractual obligation under such derivatives) for payment on derivative instruments for which the Fund is owed money.
◾
Leverage
Risk. Many derivatives do not require a payment up front equal
to the economic exposure created by holding a position in the derivative, which creates a form of leverage. As a result, an adverse change
in the value of the underlying asset could result in the Fund sustaining a loss that is substantially greater than the amount invested
in the derivative or the anticipated value of the underlying asset. In addition,
some derivatives have the potential for unlimited loss, regardless
of the size of the Fund’s initial investment. Leverage may therefore make the Fund’s returns more volatile and increase
the risk of loss. In certain market conditions, losses on derivative
instruments
can grow larger while the value of the Fund’s other assets fall, resulting in the Fund’s derivative positions becoming a larger
percentage of the Fund’s investments.
◾
Liquidity
Risk. There is a smaller pool of buyers and sellers for certain
derivatives, particularly OTC derivatives, than more traditional investments such as stocks. These buyers and sellers are often financial
institutions that may be unable or unwilling to buy or sell derivatives during times of financial or market stress. Derivative instruments
may therefore be less liquid than more traditional investments and the Fund may be unable to sell or exit its derivative positions at
a desirable time or price. This risk may be more acute under adverse market conditions, during which the Fund may be most in need of liquidating
its derivative positions. To the extent that the Fund is unable to exit a derivative position because of market illiquidity, the Fund
may not be able to prevent further losses of value in its derivatives holdings and the liquidity of the Fund and its ability to meet redemption
requests may be impaired to the extent that a substantial portion of the Fund’s otherwise liquid assets must be used as margin.
Another consequence of illiquidity is that the Fund may be required to hold a derivative instrument to maturity and take or make delivery
of the underlying asset that the Adviser would otherwise avoid.
◾
Futures
Contracts Risk. The volatility of futures contracts prices has
been historically greater than the volatility of stocks and bonds. The liquidity of the futures market depends on participants entering
into offsetting transactions rather than making or taking delivery. To the extent participants decide to make or take delivery, liquidity
in the futures market could be reduced. In addition, futures exchanges often impose a maximum permissible price movement on each futures
contract for each trading session. The Fund may be disadvantaged if it is prohibited from executing a trade outside the daily permissible
price movement.
◾
Other
Risks. Compared to other types of investments, derivatives may
be harder to value and may also be less tax efficient, as described under the “Taxes” section of the prospectus. In addition,
changes in government regulation of derivative instruments could affect the character, timing and amount of the Fund’s taxable income
or gains, and may limit or prevent the Fund from using certain types of derivative instruments as a part of its investment strategy, which
could make the investment strategy more costly to implement or require the Fund to change its investment strategy. Derivatives strategies
may not always be successful. For example, to the extent that the Fund uses derivatives for hedging or to gain or limit exposure to a
particular market or market segment, there may be imperfect correlation between the value of the derivative instrument and the value of
the instrument being hedged or the relevant market or market segment, in which case the Fund may not realize the intended benefits. There
is also the risk that during adverse market conditions, an instrument which would usually operate as a hedge provides no hedging benefits
at all. The Fund’s use of derivatives may be limited by the requirements for taxation of the Fund as a regulated investment company.
Non-Correlation
Risk. The Fund’s returns may not match the return of the
Underlying Index (that is, it may experience tracking error) for a number of reasons. For example, the Fund incurs operating expenses
not applicable to the Underlying Index and incurs costs in buying and selling securities, especially when rebalancing the Fund’s
securities holdings to reflect changes in the composition of the Underlying Index. To the extent that the Fund has recently commenced
operations and/or otherwise has a relatively small amount of assets, such transaction costs could have a proportionally greater impact
on the Fund. Additionally, if the Fund uses a sampling approach, it may result in returns for the Fund that are not as well-correlated
with the return of the Underlying Index as would be the case
6 Invesco
NASDAQ 100 Index Fund
if the
Fund purchased all of the securities in the Underlying Index in the proportions represented in the Underlying Index.
The
performance of the Fund and the Underlying Index may vary due to asset
valuation differences and differences between the Fund’s portfolio and the Underlying Index resulting from legal restrictions, costs
or liquidity constraints. The Fund’s transactions, which are principally in cash and therefore could be subject to incurring higher
costs in buying or selling securities, may also contribute to tracking error. The Fund may fair value certain of the securities it holds.
To the extent the Fund calculates its NAV based on fair value prices, the Fund’s ability to track the Underlying Index may be adversely
affected. Since the Underlying Index is not subject to the tax diversification requirements to which the Fund must adhere, the Fund may
be required to deviate its investments from the securities contained in, and relative weightings of, the Underlying Index. The Fund may
not invest in certain securities included in the Underlying Index due to liquidity constraints. Liquidity constraints also may delay the
Fund’s purchase or sale of securities included in the Underlying Index. For tax efficiency purposes, the Fund may sell certain securities
to realize losses, causing it to deviate from the Underlying Index.
The
Fund generally attempts to remain fully invested in the constituents of
the Underlying Index. However, the Adviser may not fully invest the Fund at times, either as a result of cash flows into the Fund, to
retain a reserve of cash to meet redemptions and expenses, or because of low assets (particularly when the Fund is new and has operated
only for a short period).
The
investment activities of one or more of the Adviser’s affiliates, including
other subsidiaries of the Adviser’s parent company, Invesco Ltd., for their proprietary accounts and for client accounts also may
adversely impact the Fund’s ability to track the Underlying Index. For example, in regulated industries, certain emerging or international
markets and under corporate and regulatory ownership definitions, there may be limits on the aggregate amount of investment by affiliated
investors that may not be exceeded, or that may not be exceeded without the grant of a license or other regulatory or corporate consent,
or, if exceeded, may cause the Adviser, the Fund or other client accounts to suffer disadvantages or business restrictions. As a result,
the Fund may be restricted in its ability to acquire particular securities due to positions held by the Fund and the Adviser’s affiliates.
Sampling
Risk. The use of a representative sampling approach may result
in the Fund holding a smaller number of securities than are in the Underlying Index. As a result, an adverse development to an issuer
of securities that the Fund holds could result in a greater decline in NAV than would be the case if the Fund held all of the securities
in the Underlying Index. To the extent the assets in the Fund are smaller, these risks will be greater. In addition, by sampling the securities
in the Underlying Index, the Fund faces the risk that the securities selected for the Fund, in the aggregate, will not provide investment
performance matching that of the Underlying Index, thereby increasing tracking error.
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 1555 Peachtree Street, N.E., Atlanta, Georgia 30309. The Adviser, as successor in interest to multiple
investment advisers, has been an investment adviser since 1976.
Sub-Advisers.
Invesco Capital Management LLC (Invesco Capital or the Sub-Adviser) serves as the Fund’s investment sub-adviser. Invesco Capital,
an affiliate of the Adviser, incorporated in 2003, is located at 3500 Lacey Road, Suite 700, Downers Grove, Illinois 60515. Invesco Capital
is a registered investment adviser that serves as the investment adviser to the Invesco family of ETFs, with combined assets under management
of $170.5 billion as of October 31, 2022. Invesco Capital provides portfolio management services to the Fund.
In
addition, Invesco has entered into one or more Sub-Advisory Agreements
with certain affiliates to serve as sub-advisers to the Fund (the Sub-Advisers). Invesco may appoint the Sub-Advisers from time to time
to provide discretionary investment management services, investment advice, and/or order execution services to the Fund. The Sub-Advisers
and the Sub-Advisory Agreements are described in the SAI.
Potential
New Sub-Advisers (Exemptive Order Structure). The SEC has also
granted exemptive relief that permits the Adviser, subject to certain conditions, to enter into new sub-advisory agreements with affiliated
or unaffiliated sub-advisers on behalf of the Fund without shareholder approval. The exemptive relief also permits material amendments
to existing sub-advisory agreements with affiliated or unaffiliated sub-advisers (including the Sub-Advisory Agreements with the Sub-Advisers)
without shareholder approval. Under this structure, the Adviser has ultimate responsibility, subject to oversight of the Board, for overseeing
such sub-advisers and recommending to the Board their hiring, termination, or replacement. The structure does not permit investment advisory
fees paid by the Fund to be increased without shareholder approval, or change the Adviser's obligations under the investment advisory
agreement, including the Adviser's responsibility to monitor and oversee sub-advisory services furnished to the Fund.
Exclusion
of Adviser from Commodity Pool Operator Definition
With
respect to the Fund, the Adviser has claimed an exclusion from the definition of “commodity pool operator” (CPO) under the
Commodity Exchange Act (CEA) and the rules of the Commodity Futures Trading Commission (CFTC) and, therefore, is not subject to CFTC registration
or regulation as a CPO. In addition, the Adviser is relying upon a related exclusion from the definition of “commodity trading advisor”
(CTA) under the CEA and the rules of the CFTC with respect to the Fund.
The
terms of the CPO exclusion require the Fund, among other things, to
adhere to certain limits on its investments in “commodity interests.” Commodity interests include commodity futures, commodity
options and swaps, which in turn include non-deliverable forwards. The Fund is permitted to invest in these instruments as further described
in the Fund's SAI. However, the Fund is not intended as a vehicle for trading in the commodity futures, commodity options or swaps markets.
The CFTC has neither reviewed nor approved the Adviser’s reliance on these exclusions, or the Fund, its investment strategies or
this prospectus.
Adviser
Compensation
During
the fiscal year ended August 31, 2022, the Adviser did not receive any compensation from the Fund, after fee waiver
and/or expense reimbursement,
if any.
Invesco,
not the Fund, pays sub-advisory fees, 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
Investment
management decisions for the Fund are made by the investment management team at Invesco and Invesco Capital.
The
following individuals are jointly and primarily responsible for the day-to-day
management of the Fund’s portfolio:
7 Invesco
NASDAQ 100 Index Fund
◾
Peter
Hubbard, Portfolio Manager, who has been responsible for the Fund since 2020 and has been associated with Invesco Capital and/or its affiliates
since 2005.
◾
Pratik
Doshi, CFA, Portfolio Manager, who has been responsible for the Fund since 2020 and has been associated with Invesco Capital and/or its
affiliates since 2018. From 2016 to 2018, Mr. Doshi earned his MBA from the University of Chicago. From 2014 to 2016, he was employed
by Bank of America-Merrill Lynch where he served as a vice president.
◾
Michael
Jeanette, Portfolio Manager, who has been responsible for the Fund since 2020 and has been associated with Invesco Capital and/or its
affiliates since 2008.
◾
Tony
Seisser, Portfolio Manager, who has been responsible for the Fund since 2020 and has been associated with Invesco Capital and/or its affiliates
since 2013.
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
Dividends
and Distributions
The
Fund expects, based on its investment objective and strategies, that its distributions, if any, will consist of ordinary income, capital
gains, or some combination of both.
Dividends
The
Fund generally declares and pays dividends from net investment income, if any, quarterly.
Capital
Gains Distributions
The
Fund generally distributes long-term and short-term capital gains (net of any available capital loss carryovers), if any, at least annually.
Capital gains distributions may vary considerably from year to year as a result of the Fund's normal investment activities and cash flows.
During a time of economic volatility, the Fund may experience capital losses and unrealized depreciation in value of investments, the
effect of which may be to reduce or eliminate capital gains distributions for a period of time. Even though the Fund may experience a
current year loss, it may nonetheless distribute prior year capital gains.
Disclaimers
The
Fund is not sponsored, endorsed, sold or promoted by Nasdaq, Inc. or its
affiliates (Nasdaq, with its affiliates, are referred to as the “Corporations”). The Corporations have not passed on the legality
or suitability of, or the accuracy or adequacy of descriptions and disclosures relating to, the Fund. The Corporations make no representation
or warranty, express or implied, to the owners of the Fund or any member of the public regarding the advisability of investing in securities
generally or in the Fund particularly, or the ability of the Underlying Index to track general stock market performance. The Corporations'
only relationship to the Adviser and the Fund (together, the “Licensee”) is in the licensing of the Nasdaq®,
Nasdaq-100®,
Nasdaq 100 Index®,
NDX®,
“QQQ®”,
and certain trade names of the Corporations and the use of the Underlying Index which is determined, composed and calculated by Nasdaq
without regard to the Licensee. Nasdaq has no obligation to take the needs of the Licensee or the owners of the Fund into consideration
in determining, composing or calculating the Underlying Index. The Corporations are not responsible for and have not participated in the
determination of the timing of, prices at, or quantities of the Fund to be issued or in the determination or calculation of
the equation
by which the Fund is to be converted into cash. The Corporations have no liability in connection with the administration, marketing or
trading of the Fund.
THE
CORPORATIONS DO NOT GUARANTEE THE ACCURACY AND/OR
UNINTERRUPTED CALCULATION OF THE UNDERLYING INDEX OR ANY DATA INCLUDED THEREIN. THE CORPORATIONS MAKE NO WARRANTY, EXPRESS OR IMPLIED,
AS TO RESULTS TO BE OBTAINED BY THE LICENSEE, OWNERS OF THE FUND, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE UNDERLYING INDEX OR
ANY DATA INCLUDED THEREIN. THE CORPORATIONS MAKE NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIM ALL WARRANTIES OF MERCHANTABILITY
OR FITNESS FOR A PARTICULAR PURPOSE OR USE WITH RESPECT TO THE UNDERLYING INDEX OR ANY DATA INCLUDED THEREIN. WITHOUT LIMITING ANY OF
THE FOREGOING, IN NO EVENT SHALL THE CORPORATIONS HAVE ANY LIABILITY FOR ANY LOST PROFITS OR SPECIAL, INCIDENTAL, PUNITIVE, INDIRECT,
OR CONSEQUENTIAL DAMAGES, EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES.
The
Adviser, Sub-Adviser and their affiliates (collectively, the
Adviser Parties) do not guarantee the accuracy and/or the completeness
of the Underlying Index or any data included therein, and the Adviser Parties shall have no liability for any errors, omissions, restatements,
re-calculations or interruptions therein. The Adviser Parties make no warranty, express or implied, as to results to be obtained by the
Fund, owners of shares of the Fund, or any other person or entity from the use of the Underlying Index or any data included therein. The
Adviser Parties make no express or implied warranties and expressly disclaim all warranties of merchantability or fitness for a particular
purpose or use with respect to the Underlying Index or any data included therein. Without limiting any of the foregoing, in no event shall
the Adviser Parties have any liability for any special, punitive, direct, indirect or consequential damages (including lost profits) arising
out of matters relating to the use of the Underlying Index, even if notified of the possibility of such damages.
8 Invesco
NASDAQ 100 Index Fund
Financial Highlights
The financial
highlights show the Fund’s financial history for the past five fiscal years or, if shorter, the period of operations of the Fund
or any of its share classes. The financial highlights table is intended to help you understand the Fund’s financial performance.
Certain information reflects financial results for a single Fund share.
The
total returns in the table represent the rate that an investor would have
earned (or lost) on an investment in the Fund (assuming reinvestment of all dividends and distributions).
This
information has been audited by PricewaterhouseCoopers LLP, an independent
registered public accounting firm, whose report, along with the Fund’s financial statements, is included in the Fund’s annual
report, which is available upon request.
|
|
Net
asset
value,
beginning
of
period |
Net
investment
income(a)
|
Net
gains
(losses)
on
securities
(both
realized
and
unrealized)
|
Total
from
investment
operations
|
Dividends
from
net
investment
income
|
Distributions
from
net
realized
gains
|
Total
distributions
|
Net
asset
value,
end
of
period |
Total
return
(b)
|
Net
assets,
end
of period
(000's
omitted) |
Ratio
of
expenses
to
average
net
assets
with
fee waivers
and/or
expenses
absorbed
|
Ratio
of
expenses
to
average net
assets
without
fee
waivers
and/or
expenses
absorbed
|
Ratio
of net
investment
income
to
average
net
assets |
Portfolio
turnover
(c)
|
|
Class
R6 | ||||||||||||||
|
Year
ended 08/31/22 |
$32.18
|
$0.15
|
$(6.81)
|
$(6.66)
|
$(0.14)
|
$(0.15)
|
$(0.29)
|
$25.23
|
(20.86)%
|
$8,796
|
0.29%
|
1.71%
|
0.52%
|
21%
|
|
Period
ended 08/31/21(d)
|
25.00
|
0.11
|
7.18
|
7.29
|
(0.11)
|
—
|
(0.11)
|
32.18
|
29.24
|
4,396
|
0.29(e)
|
5.30(e)
|
0.46(e)
|
6
|
|
| ||||||||||||||
|
(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. Not annualized for periods less
than one year, if applicable. |
|
(c)
|
Portfolio
turnover is not annualized for periods less than one year, if applicable. |
|
(d)
|
Commencement
date of October 13, 2020. |
|
(e)
|
Annualized.
|
9 Invesco
NASDAQ 100 Index 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 all of the Invesco Funds and their share classes that have different fees and expenses.
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 |
|
|
▪ 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) |
A-1 The
Invesco Funds
MCF—12/22
|
Share
Classes |
|
|
|
|
|
Class
A |
Class
C |
Class
R |
Class
Y |
Class
R5 and R6 |
|
|
▪ 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 International Core Equity 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 a specific
Fund may make additional purchases into Class AX and CX, respectively, of such specific Fund. All references in this “Shareholder
Account Information” section of this prospectus to Class A, C or R shares of the Invesco Funds shall include Class AX
(excluding Invesco Government Money Market Fund), or CX shares, respectively, of the Invesco Funds, unless otherwise noted. All references
in this “Shareholder Account Information” section of this prospectus to Invesco Cash Reserve Shares of Invesco Government
Money Market Fund shall include Class AX shares of Invesco Government Money Market Fund, unless otherwise noted.
Class P
Shares
In
addition to the other share classes discussed herein, the Invesco Summit Fund offers Class P shares, which were historically sold
only through the AIM Summit Investors Plans I and II (each a Plan and, collectively, the Summit Plans). Class P shares are sold with
no initial sales charge and have a 12b-1 fee of 0.10%. However, Class P shares are not sold to members of the general public. Only
shareholders who had accounts in the Summit Plans at the close of business on December 8, 2006 may purchase Class P shares and
only until the total of their combined investments in the Summit Plans and in Class P shares directly equals the face amount of their
former Plan under the 30 year extended investment option. The face amount of a Plan is the combined total of all scheduled monthly
investments under the Plan. For a Plan with a scheduled monthly investment of $100.00, the face amount would have been $36,000.00 under
the 30 year extended investment option.
Class R
Shares
Class R
shares are intended for 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 (except for the Invesco Master Loan Fund) are available for use by Employer Sponsored Retirement and Benefit
Plans, held either at the plan level or through omnibus accounts, that generally process no more than one net redemption and one net purchase
transaction each day.
Class
R5 and R6 shares of the Funds are also available to institutional investors.
Institutional investors are: banks, trust companies, collective trust funds, entities acting for the account of a public entity (e.g.,
Taft-Hartley funds, states, cities or government agencies), funds of funds or other pooled investment vehicles, 529 college savings plans,
financial intermediaries and corporations investing for their own accounts, endowments and foundations. For information regarding investment
minimums for Class R5 and R6 shares, please see “Minimum Investments” below.
Class
R6 shares of the Funds are also available through an intermediary that
has agreed with Invesco Distributors, Inc. to make such shares
A-2 The
Invesco Funds
available
for use in retail omnibus accounts that generally process no more than one net redemption and one net purchase transaction each day.
The
Invesco Master Loan Fund is only available for purchase by other Funds
in the Invesco fund family and other Invesco pooled investment vehicles.
Shareholders
eligible to purchase Class R6 Shares must meet the requirements
specified by their intermediary. Not all intermediaries offer Class R6 Shares to their customers.
Class S
Shares
Class S
shares are limited to investors who purchase shares with the proceeds received from a systematic contractual investment plan redemption
within the 12 months prior to purchasing Class S shares, and who purchase through an approved financial intermediary that has
an agreement with the distributor to sell Class S shares. Class S shares are not otherwise sold to members of the general public.
An investor purchasing Class S shares will not pay an initial sales charge. The investor will no longer be eligible to purchase additional
Class S shares at that point where the value of the contributions to the prior systematic contractual investment plan combined with
the subsequent Class S share contributions equals the face amount of what would have been the investor’s systematic contractual
investment plan under the 30-year investment option. The face amount of a systematic contractual investment plan is the combined total
of all scheduled monthly investments under that plan. For a plan with a scheduled monthly investment of $100.00, the face amount would
have been $36,000.00 under the 30-year extended investment option.
Class Y
Shares
Class
Y shares are available to (i) investors who purchase through an account that is charged an asset-based fee or commission by a financial
intermediary, including through brokerage platforms, where a broker is acting as the investor’s agent, that may require the payment
by the investor of a commission and/or other form of compensation to that broker, (ii) endowments, foundations, or Employer Sponsored
Retirement and Benefit Plans (with the exception of “Solo 401(k)” Plans and 403(b) custodial accounts held directly at Invesco),
(iii) banks or bank trust departments acting on their own behalf or as trustee or manager for trust accounts, or (iv) any current, former
or retired trustee, director, officer or employee (or immediate family members of a current, former or retired trustee, director, officer
or employee) of any Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
Subject
to any conditions or limitations imposed on the servicing of Class
Y shares by your financial adviser, if you received Class Y shares as a result of a merger or reorganization of a predecessor fund into
any of the Funds, you will be permitted to make additional Class Y share purchases. In addition, you will be permitted to make additional
Class Y shares purchases if you owned Class Y shares in a “Solo 401(k)” Plan or 403(b) custodial account held directly at
Invesco if you held such shares in your account on or prior to May 24, 2019.
Investor
Class Shares
Investor
Class shares are sold with no initial sales charge and have a maximum 12b-1 fee of 0.25%. Only the following persons may purchase Investor
Class shares:
◾
Investors
who established accounts prior to April 1, 2002, in Investor Class shares with Invesco Distributors, Inc. (Invesco Distributors) who have
continuously maintained an account in Investor Class shares (this includes anyone listed in the registration of an account, such as a
joint owner, trustee or custodian, and immediate family members of such persons) without a designated intermediary. These investors are
referred to as “Investor Class grandfathered investors.”
◾
Customers
of a financial intermediary that has had an agreement with the Funds’ distributor or any Funds that offered Investor Class shares
prior to April 1, 2002, that has continuously maintained such agreement. These intermediaries are referred to as “Investor
Class grandfathered intermediaries.”
◾
Any
current, former or retired trustee, director, officer or employee (or immediate family member of a current, former or retired trustee,
director, officer or employee) of any Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
For
additional shareholder eligibility requirements with respect to Invesco
Premier Portfolio, please see “Shareholder Account Information – Purchasing Shares and Shareholder Eligibility – Invesco
Premier Portfolio.”
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.
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 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
A-4 The
Invesco Funds
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.
Merrill
Lynch
Shareholders
purchasing Fund shares through a Merrill
Lynch platform
or account will be eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at Merrill Lynch
◾
Employer-sponsored
retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to fund those plans,
provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the plan;
◾
Shares
purchased by a 529 Plan (does not include 529 Plan unit or 529-specific share classes or equivalents);
◾
Shares
purchased through a Merrill Lynch affiliated investment advisory program;
◾
Shares
exchanged due to the holdings moving from a Merrill Lynch affiliated investment advisory program to a Merrill Lynch brokerage (non-advisory)
account pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers;
◾
Shares
purchased by third party investment advisors on behalf of their advisory clients through Merrill Lynch’s platform;
◾
Shares
of funds purchased through the Merrill Edge Self-Directed platform (if applicable);
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not
any other fund within the fund family);
◾
Shares
exchanged from Class C (i.e.
level-load) shares of the same fund pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers;
◾
Employees
and registered representatives of Merrill Lynch or its affiliates and their family members;
◾
Directors
or Trustees of the Fund, and employees of the Fund’s investment adviser or any of its affiliates, as described in this prospectus;
and
◾
Eligible
shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days
following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to
a front-end or deferred sales load (known as Rights of Reinstatement). Automated transactions (i.e. systematic purchases and withdrawals)
and purchases made after shares are automatically sold to pay Merrill Lynch’s account maintenance fees are not eligible for reinstatement.
◾
CDSC
Waivers on A and C Shares available at Merrill Lynch
◾
Death
or disability of the shareholder;
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund’s prospectus;
◾
Return
of excess contributions from an IRA Account;
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts pursuant to the Internal Revenue Code;
◾
Shares
sold to pay Merrill Lynch fees but only if the transaction is initiated by Merrill Lynch;
◾
Shares
acquired through a right of reinstatement;
◾
Shares
held in retirement brokerage accounts, that are converted to a lower cost share class due to transfer to a fee based account or platform
(applicable to A and C shares only); and
◾
Shares
received through an exchange due to the holdings moving from a Merrill Lynch affiliated investment advisory program to a Merrill Lynch
brokerage (non-advisory) account pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers.
◾
Front-end
load Discounts Available at Merrill Lynch: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this prospectus;
◾
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts as described in the Fund’s prospectus will be automatically
calculated based on the aggregated holding of fund family assets held by accounts (including 529 program holdings, where applicable) within
the purchaser’s household at Merrill Lynch. Eligible fund family assets not held at Merrill Lynch may be included in the ROA calculation
only if the shareholder notifies his or her financial advisor about such assets; and
◾
Letters
of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Merrill Lynch, over
a 13-month period of time (if applicable).
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).
A-5 The
Invesco Funds
Morgan
Stanley Wealth Management
Shareholders
purchasing Fund shares through a Morgan Stanley
Wealth Management transactional brokerage account will be eligible
only for the following front-end sales charge waivers with respect to Class A shares, which may differ from and may be more limited than
those disclosed elsewhere in this Fund’s Prospectus or SAI.
◾
Front-end
Sales Charge Waivers on Class A Shares available at Morgan Stanley Wealth Management
◾
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and
defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs, SAR-SEPs
or Keogh plans;
◾
Morgan
Stanley employee and employee-related accounts according to Morgan Stanley’s account linking rules;
◾
Shares
purchased through reinvestment of dividends and capital gains distributions when purchasing shares of the same fund;
◾
Shares
purchased through a Morgan Stanley self-directed brokerage account;
◾
Class
C (i.e., level-load) shares that are no longer subject to a contingent deferred sales charge and are converted to Class A shares of the
same fund pursuant to Morgan Stanley Wealth Management’s share class conversion program; and
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (i) the repurchase occurs within 90 days following the
redemption, (ii) the redemption and purchase occur in the same account, and (iii) redeemed shares were subject to a front-end or deferred
sales charge.
Raymond
James Financial Services, Inc.
Shareholders
purchasing Fund shares through a Raymond
James Financial Services, Inc., Raymond James affiliates and each
entity’s affiliates (Raymond James) platform or account, or through an introducing broker-dealer or independent registered investment
adviser for which Raymond James provides trade execution, clearance, and/or custody services, will be eligible only for the following
load waivers (front-end sales charge waivers and contingent deferred, or back-end, sales charge waivers) and discounts, which may differ
from those disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
sales load waivers on Class A shares available at Raymond James
◾
Shares
purchased in an investment advisory program.
◾
Shares
purchased within the same fund family through a systematic reinvestment of capital gains distributions and dividend distributions.
◾
Employees
and registered representatives of Raymond James or its affiliates and their family members as designated by Raymond James.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (known as Rights of Reinstatement).
◾
A
shareholder in the Fund’s Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate
share class) of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures
of Raymond James.
◾
CDSC
Waivers on Classes A and C shares available at Raymond James
◾
Death
or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the fund’s prospectus.
◾
Return
of excess contributions from an IRA Account.
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based
on applicable IRS regulations as described in the fund’s prospectus.
◾
Shares
sold to pay Raymond James fees but only if the transaction is initiated by Raymond James.
◾
Shares
acquired through a right of reinstatement.
◾
Front-end
load discounts available at Raymond James: breakpoints, rights of accumulation, and/or letters of intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of
fund family assets held by accounts within the purchaser’s household at Raymond James. Eligible fund family assets not held at Raymond
James may be included in the calculation of rights of accumulation only if the shareholder notifies his or her financial advisor about
such assets.
◾
Letters
of intent which allow for breakpoint discounts based on anticipated purchases within a fund family, over a 13-month time period. Eligible
fund family assets not held at Raymond James may be included in the calculation of letters of intent only if the shareholder notifies
his or her financial advisor about such assets.
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.
A-6 The
Invesco Funds
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.
◾
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.
Oppenheimer
& Co. Inc. (“OPCO”)
Shareholders
purchasing Fund shares through an OPCO
platform or account are eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund's prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at OPCO
◾
Employer-sponsored
retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to
fund
those plans, provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the
plan
◾
Shares
purchased by or through a 529 Plan
◾
Shares
purchased through an OPCO affiliated investment advisory program
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not
any other fund within the fund family)
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (known as Rights of Reinstatement).
◾
A
shareholder in the Fund's Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate share
class) of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures of OPCO
◾
Employees
and registered representatives of OPCO or its affiliates and their family members
◾
Directors
or Trustees of the Fund, and employees of the Fund's investment adviser or any of its affiliates, as described in this prospectus
◾
CDSC
Waivers on A and C Shares available at OPCO
◾
Death
or disability of the shareholder
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund's prospectus
◾
Return
of excess contributions from an IRA Account
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based
on applicable IRS regulations as described in the prospectus
◾
Shares
sold to pay OPCO fees but only if the transaction is initiated by OPCO Shares acquired through a right of reinstatement
◾
Front-end
load Discounts Available at OPCO: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding
of fund family assets held by accounts within the purchaser's household at OPCO. Eligible fund family assets not held at OPCO may be included
in the ROA calculation only if the shareholder notifies his or her financial advisor about such assets.
Robert
W. Baird & Co. Incorporated (“Baird”)
Shareholders
purchasing fund shares through a Baird
platform or account will only be eligible for the following sales charge waivers (front-end sales charge waivers and CDSC waivers) and
discounts, which may differ from those disclosed elsewhere in this prospectus or the SAI.
◾
Front-End
Sales Charge Waivers on Class A-shares Available at Baird
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund.
◾
Shares
purchased by employees and registered representatives of Baird or its affiliate and their family members as designated by Baird.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales charge (known as rights of reinstatement).
◾
A
shareholder in the Fund’s Class C Shares will have their shares converted at net asset value to Class A shares of the fund if the
shares are no longer subject to CDSC and the conversion is in line with the policies and procedures of Baird.
◾
Employer-sponsored
retirement plans or charitable accounts in a transactional brokerage account at Baird, including 401(k) plans, 457 plans, employer-sponsored
403(b) plans, profit sharing and money
A-7 The
Invesco Funds
purchase
pension plans and defined benefit plans. For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs,
Simple IRAs or SAR-SEPs.
◾
CDSC
Waivers on Classes A and C shares Available at Baird
◾
Shares
sold due to death or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund’s Prospectus.
◾
Return
of excess contributions from an IRA Account.
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching age 72 as described in
the Fund’s prospectus.
◾
Shares
sold to pay Baird fees but only if the transaction is initiated by Baird.
◾
Shares
acquired through a right of reinstatement.
◾
Front-End
Sales Charge Discounts Available at Baird: Breakpoints, Rights of Accumulation and/or letters of intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of
fund family assets held by accounts within the purchaser’s household at Baird. Eligible fund family assets not held at Baird may
be included in the rights of accumulation calculation only if the shareholder notifies his or her financial advisor about such assets.
◾
Letters
of Intent (LOI) allow for breakpoint discounts based on anticipated purchases of within a fund family through Baird, over a 13-month period
of time.
Edward
D. Jones & Co., L.P. (“Edward Jones”)
Policies
Regarding Transactions Through Edward Jones
The
following information has been provided by Edward Jones:
The
following information supersedes prior information with respect to transactions
and positions held in fund shares through an Edward Jones system. Shareholders purchasing Fund shares through the Edward
Jones commission
and fee-based platforms will be eligible for the following load waivers (front- end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund's prospectus or statement of additional
information (“SAI”). 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 (including holdings of 529 Plans where Invesco serves as primary distributor), 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.
◾
Front-end
sales load waivers on Class A shares available at Edward Jones
◾
Associates
of Edward Jones and its affiliates and their family members who are 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: 1) the proceeds are
from the sale of shares within 60 days of the purchase, and 2) the sale and purchase are made in the same share class and the same account
or the purchase is made in an individual retirement account with proceeds from liquidations in a non-retirement account.
◾
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.
◾
CDSC
Waivers on Classes A and C shares available at Edward Jones
◾
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
sold 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 the qualified age based on applicable IRS regulations.
◾
Shares
sold 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 Minimum Balances, as described below.
◾
Front-end
load discounts available at Edward Jones: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoint
pricing, otherwise known as volume pricing, at dollar thresholds as described in the prospectus.
◾
Rights
of Accumulation (“ROA”) which entitles the shareholder to the applicable sales charge on a purchase of Class A shares will
be determined by taking into account all share classes (except certain money market funds and any assets held in group retirement plans)
of Invesco Funds (including holdings of 529 Plans where Invesco serves as primary distributor) 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).
◾
Letters
of Intent (“LOI”) allow shareholders to receive 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.
Other
Important Information Regarding Transactions Through Edward
Jones
Minimum
Purchase Amounts
•
Initial
purchase minimum: $250
•
Subsequent
purchase minimum: none
A-8 The
Invesco Funds
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.
Stifel,
Nicolaus & Company (“Stifel”)
Shareholders
purchasing Fund shares through a Stifel
platform or account will be eligible only for the following front-end sales charge waivers and discounts, which may differ from those
disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at Stifel: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this 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 Stifel. Eligible
fund family assets not held at Stifel may be included in the ROA calculation only if the shareholder notifies his or her financial advisor
about such assets; and
◾
Letters
of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Stifel, over a 13-month
period of time (if applicable).
◾
Shares
converted from Class C (i.e. level-load) shares of the same fund pursuant to Stifel policies relating to sales load discounts and waivers.
PFS
Investments Inc. (“PFSI”)
Policies
Regarding Transactions Through PFSI
The
following information supersedes all prior information with respect to transactions and positions held in fund shares purchased through
PFSI and held on the mutual fund platform of its affiliate, Primerica Shareholder Services (“PSS”). Clients of PFSI (also
referred to as “shareholders”) purchasing fund shares on the PSS platform are eligible only for the following share classes,
sales charge discounts (also referred to as “breakpoints”) and waivers, which can differ from share classes, discounts and
waivers described elsewhere in this prospectus or the related statement of additional information (“SAI”) or through another
broker-dealer. In all instances, it is the shareholder’s responsibility to inform PFSI at the time of a purchase of all holdings
of Invesco Funds on the PSS platform, or other facts qualifying the purchaser for discounts or waivers. PFSI may request reasonable documentation
of such facts, and condition the granting of any discount or waiver on the timely receipt of such documents. Shareholders should contact
PSS if they have questions regarding their eligibility for these discounts and waivers.
Share
Classes
◾
Class
A shares: in non-retirement accounts, individual retirement accounts (IRA), SEP IRAs, SIMPLE IRAs, Keogh Plans, and all other account
types unless expressly provided for below.
◾
Class
C shares: only in accounts with existing Class C share holdings.
Breakpoints
◾
Breakpoint
pricing at dollar thresholds as described in the prospectus of the fund you are purchasing.
Rights
of Accumulation (“ROA”)
◾
The
applicable sales charge on a purchase of Class A shares is determined by taking into account all share classes (except any assets held
in group retirement plans) of Invesco Funds held by the shareholder on the PSS Platform. The inclusion of eligible fund family assets
in the ROA calculation is dependent on the shareholder notifying PFSI of such assets at the time of calculation. Shares of money market
funds are
included
only if such shares were acquired in exchange for shares of another Invesco Fund purchased with a sales charge. No shares of Invesco Funds
held by the shareholder away from the PSS platform will be granted ROA with shares of any Invesco Fund purchased on the PSS platform.
◾
Any
SEP IRA plan, any SIMPLE IRA plan or any Payroll Deduction plan (“PDP”) on the PSS platform will be defaulted to plan-level
grouping for purposes of ROA, which allows each participating employee ROA with all other eligible shares held in plan accounts on the
PSS platform. At any time, a participating employee may elect to exercise a one-time option to change grouping for purposes of ROA to
shareholder- level grouping, which allows the plan account of the electing employee ROA with her other eligible holdings on the PSS platform,
but not with all other eligible participant holdings in the plan. Eligible shares held in plan accounts electing shareholder-level grouping
will not be available for purposes of ROA to plan accounts electing plan-level grouping.
◾
ROA
is determined by calculating the higher of cost minus redemptions or current market value (current shares x NAV).
Letter
of Intent (“LOI”)
◾
By
executing a LOI, shareholders can receive the sales charge and breakpoint discounts for purchases shareholders intend to make over a 13-month
period through PFSI, from the date PSS receives the LOI. The purchase price of the LOI is determined by calculating the higher of cost
or market value of qualifying holdings at LOI initiation in combination with the dollar amount the shareholder intends to invest over
a 13-month period to arrive at total investment for purposes of determining any breakpoint discount and the applicable front-end sales
charge. Each purchase the shareholder makes during that 13-month period will receive the sales charge and breakpoint discount that applies
to the projected total investment.
◾
Only
holdings of Invesco Funds on the PSS platform are eligible for inclusion in the LOI calculation and the shareholder must notify PFSI of
all eligible assets at the time of calculation.
◾
Purchases
made before the LOI is received by PSS are not adjusted under the LOI, and the LOI will not reduce any sales charge previously paid. Sales
charges will be automatically adjusted if the total purchases required by the LOI are not met.
◾
If
an employer maintaining a SEP IRA plan, SIMPLE IRA plan or non-IRA PDP on the PSS platform has elected to establish or change ROA for
the accounts associated with the plan to a plan-level grouping, LOIs will also be at the plan-level and may only be established by the
employer. LOIs are not available to PDP IRA plans on the PSS platform with plan-level grouping for purposes of ROA, but are available
to any participating employee that elects shareholder-level grouping for purposes of ROA.
Sales
Charge Waivers
Sales
charges are waived for the following shareholders and in the following
situations:
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment.
◾
Shares
purchased with the proceeds of redeemed shares of the same fund family so long as the following conditions are met: 1) the proceeds are
from the sale of shares within 90 days of the purchase, 2) the sale and purchase are made in the same share class and the same account
or the purchase is made in an individual retirement account with proceeds from liquidations in a non-retirement account, and 3) the redeemed
shares were subject to a front-end or deferred sales load, Automated transactions (i.e. systematic purchases and withdrawals), full or
partial transfers or rollovers of retirement accounts, and purchases made after shares are automatically sold to pay account maintenance
fees are not eligible for this sales charge waiver.
◾
Shares
exchanged into Class A shares from another share class so long as the exchange is into the same fund and was initiated at the discretion
of PFSI. PFSI is responsible for any remaining CDSC due to the fund company, if applicable. Any future purchases are subject to the applicable
sales charge as disclosed in the prospectus.
Policies
Regarding Fund Purchases Through PFSI That Are Not Held
on the PSS Platform
A-9 The
Invesco Funds
◾
Class
R shares
are available through PFSI only in 401(k) plans covering a business owner with no employees, commonly referred to as a one-participant
401(k) plan or solo 401(k).
UBS
Financial Services Inc. (“UBS”)
Pursuant
to an agreement with the Distributor, UBS may offer Class Y
shares
to its retail brokerage clients whose shares are held in omnibus
accounts at UBS, or its designee. For these clients, UBS may charge commissions or transaction fees with respect to brokerage transactions
in Class Y shares. The
minimum investment for Class Y shares is waived for transactions through such brokerage platforms at UBS. Please contact your UBS representative
for more information about these fees and other eligibility requirements.
Qualifying
for Reduced Sales Charges and Sales Charge Exceptions
The
following types of accounts qualify for reduced sales charges or sales charge exceptions under ROAs and LOIs:
1.
an
individual account owner;
2.
immediate
family of the individual account owner (which includes the individual’s spouse or domestic partner; the individual’s children,
step-children or grandchildren; the spouse or domestic partner of the individual’s children, step-children or grandchildren; the
individual’s parents and step-parents; the parents or step-parents of the individual’s spouse or domestic partner; the individual’s
grandparents; and the individual’s siblings);
3.
a
Retirement and Benefit Plan so long as the plan is established exclusively for the benefit of an individual account owner; and
4.
a
Coverdell Education Savings Account (Coverdell ESA), maintained pursuant to Section 530 of the Code (in either case, the account
must be established by an individual account owner or have an individual account owner named as the beneficiary thereof).
Alternatively,
an Employer Sponsored Retirement and Benefit Plan (but not including
plans utilizing the Invesco 403(b)(7) Custodial Account program, or the individual custodial accounts thereunder) or Employer Sponsored
IRA may be eligible to purchase shares pursuant to a ROA at the plan level, and receive a reduced applicable initial sales charge for
a new purchase based on the total value of the current purchase and the value of other shares owned by the plan’s participants if:
a)
the
employer or plan sponsor submits all contributions for all participating employees in a single contribution transmittal (the Invesco Funds
will not accept separate contributions submitted with respect to individual participants);
b)
each
transmittal is accompanied by checks or wire transfers; and
c)
if
the Invesco Funds are expected to carry separate accounts in the names of each of the plan participants, (i) the employer or plan
sponsor notifies Invesco Distributors or its designee in writing that the separate accounts of all plan participants should be linked,
and (ii) all new participant accounts are established by submitting an appropriate Account Application on behalf of each new participant
with the contribution transmittal.
Participant
accounts in a retirement plan that are eligible to purchase shares
pursuant to a ROA at the plan level may not also be considered eligible to do so for the benefit of an individual account owner.
In
all instances, it is the purchaser’s responsibility to notify Invesco Distributors
or its designee of any relationship or other facts qualifying the purchaser as eligible for reduced sales charges and/or sales charge
exceptions and to provide all necessary documentation of such facts in order to qualify for reduced sales charges or sales charge exceptions.
For additional information on linking accounts to qualify for ROA or LOI, please see the Funds’ SAI.
Purchases
of Class A shares of Invesco Conservative Income Fund, Invesco
Government Money Market Fund and Invesco Short Term Municipal Fund, Class AX shares or Invesco Cash Reserve Shares of Invesco Government
Money Market Fund and Invesco U.S. Government Money Portfolio, as applicable, or Investor Class shares of any Fund will not be
taken
into account in determining whether a purchase qualifies for a reduction in initial sales charges pursuant to ROAs or LOIs.
Rights
of Accumulation
Purchasers
that qualify for ROA may combine new purchases of Class A shares of a Fund with shares of the Fund or other open-end Invesco Funds
currently owned (Class A, C, IB, IC, P, R, S or Y) for the purpose of qualifying for the lower initial sales charge rates that apply
to larger purchases. The applicable initial sales charge for the new purchase will be based on the total of your current purchase and
the value of other shares owned based on their current public offering price. The Funds’ transfer agent may automatically link certain
accounts registered in the same name with the same taxpayer identification number for the purpose of qualifying you for lower initial
sales charge rates.
Letters
of Intent
Under
a LOI, you commit to purchase a specified dollar amount of Class A shares of one or more Funds during a 13-month period. The amount
you agree to purchase determines the initial sales charge you pay. If the full amount committed to in the LOI is not invested by the end
of the 13-month period, your account will generally be assessed the higher initial sales charge that would normally be applicable to the
total amount actually invested. Shares equal in value to 5% of the intended purchase amount will be held in escrow for this purpose.
Reinstatement
Following Redemption
If
you redeem any class of shares of a Fund, you may reinvest all or a portion of the proceeds from the redemption (and may include that
amount necessary to acquire a fractional Share to round off his or her purchase to the next full Share) in the same share class of any
Fund within 180 days of the redemption without paying an initial sales charge. Class P, S, and Y redemptions may be reinvested into Class
A shares without an initial sales charge.
This
reinstatement privilege does not apply to a purchase made through a
regularly scheduled automatic investment plan, such as a purchase by a regularly scheduled payroll deduction or transfer from a bank account.
This
reinstatement privilege shall be suspended for the period of time in which
a purchase block is in place on a shareholder’s account. Please see “Purchase Blocking Policy” discussed below.
In
order to take advantage of this reinstatement privilege, you must inform
your financial adviser or the Funds’ transfer agent that you wish to do so at the time of your reinvestment.
Contingent
Deferred Sales Charges (CDSCs)
CDSCs
on Class A Shares and Invesco Cash Reserve Shares
Any
shares of a Large Purchase of Class A shares redeemed prior to 18 months after the date of purchase will be subject to a CDSC of 1% with
the exception of Class A shares of Invesco Conservative Income Fund and Invesco Short Term Municipal Fund which do not have CDSCs on redemptions.
If
Invesco Distributors pays a concession to a financial intermediary in connection
with a Large Purchase of Class A shares by an Employer Sponsored Retirement and Benefit Plan or SIMPLE IRA Plan, the Class A shares will
be subject to a 1% CDSC if all of the Employer Sponsored Retirement and Benefit Plan’s or SIMPLE IRA’s shares are redeemed
within one year from the date of initial purchase.
If
you acquire Invesco Cash Reserve Shares or Class A shares of Invesco
Government Money Market Fund or Invesco Cash Reserve Shares of Invesco U.S. Government Money Portfolio through an exchange involving Class
A shares that were subject to a CDSC, the shares acquired as a result of the exchange will continue to be subject to that same CDSC.
CDSCs
on Class C Shares
Class
C shares are subject to a CDSC; however, the CDSC shall not apply to the purchases of Class C shares where the selling broker-dealer was
not paid a commission at the time of purchase. If you redeem your shares during the first year since your purchase has been made you will
be
A-10 The
Invesco Funds
assessed
a CDSC as disclosed in the “Fees and Expenses - Shareholder Fees” table in the prospectus, unless you qualify for one of the
CDSC exceptions outlined below.
CDSCs
on Class C Shares – Employer Sponsored Retirement and Benefit Plans and Employer Sponsored IRAs
Class
C shares are subject to a 1.00% CDSC at the time of redemption if all of the Employer Sponsored Retirement and Benefit Plan’s or
Employer Sponsored IRA’s shares are redeemed within one year from the date of initial purchase.
CDSCs
on Class C Shares of Invesco Short Term Bond Fund
Effective
November 1, 2021, Class C shares of Invesco Short Term Bond Fund are subject to a CDSC. If you acquire Class C shares of any other Fund
as a result of an exchange involving Class C shares of Invesco Short Term Bond Fund that were not subject to a CDSC prior to November
1, 2021, then the shares acquired as a result of the exchange will not be subject to a CDSC.
Computing
a CDSC
The
CDSC on redemptions of shares is computed based on the lower of their original purchase price or current net asset value, net of reinvested
dividends and capital gains distributions. In determining whether to charge a CDSC, shares are accounted for on a first-in, first-out
basis, which means that you will redeem shares on which there is no CDSC first, and then shares in the order of their purchase.
CDSC
Exceptions
Investors
who own shares that are otherwise subject to a CDSC will not pay a CDSC in the following circumstances:
◾
If
you participate in the Systematic Redemption Plan and withdraw up to 12% of the value of your shares that are subject to a CDSC in any
twelve-month period.
◾
If
you redeem shares to pay account fees.
◾
If
you are the executor, administrator or beneficiary of an estate or are otherwise entitled to assets remaining in an account following
the death or post-purchase disability of a shareholder or beneficial owner and you choose to redeem those shares.
There
are other circumstances under which you may be able to redeem shares
without paying CDSCs. For additional information about such circumstances, please see the Appendix entitled “Purchase, Redemption
and Pricing of Shares” in each Fund’s SAI.
Shares
acquired through the reinvestment of dividends and distributions are
not subject to CDSCs.
The
following share classes are sold without a CDSC:
◾
Class
A2 shares of Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund
◾
Class
A shares of Invesco Government Money Market Fund
◾
Invesco
Cash Reserve Shares of Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio
◾
Investor
Class shares of any Fund
◾
Class
P shares of Invesco Summit Fund
◾
Class
R5 and R6 shares of any Fund
◾
Class
R shares of any Fund
◾
Class
S shares of Invesco Charter Fund, Invesco Select Risk: Moderately Conservative Investor Fund, Invesco Select Risk: Growth Investor Fund,
Invesco Select Risk: Moderate Investor Fund and Invesco Summit Fund
◾
Class
Y shares of any Fund
Purchasing
Shares and Shareholder Eligibility
Invesco
Premier U.S. Government Money Portfolio
For
Invesco Premier U.S. Government Money Portfolio, you may purchase shares using one of the options below. Unless the Fund closes early
on a business day, the Fund’s transfer agent will generally accept any purchase order placed until 5:00 p.m. Eastern Time on a business
day and may accept a purchase order placed until 5:30 p.m. Eastern Time on a business
day.
If you wish to place an order between 5:00 p.m. and 5:30 p.m. Eastern Time on a business day, you must place such order by telephone;
however, the Fund’s transfer agent reserves the right to reject or limit the amount of orders placed during this time. If the Fund
closes early on a business day, the Fund’s transfer agent must receive your purchase order prior to such closing time. Purchase
orders will not be processed unless the account application and purchase payment are received in good order. In accordance with the USA
PATRIOT Act, if you fail to provide all the required information requested in the current account application, your purchase order will
not be processed. Additionally, federal law requires that the Fund verifies and records your identifying information.
Invesco
Premier Portfolio
Only
accounts beneficially owned by natural persons will be permitted to retain their shares. The Fund has implemented policies and procedures
reasonably designed to limit all beneficial owners of the Fund to natural persons, and investments in the Fund are limited to accounts
beneficially owned by natural persons. Natural persons may invest in the Fund through certain tax-advantaged savings accounts, trusts
and other retirement and investment accounts, which may include, among others: participant-directed defined contribution plans; individual
retirement accounts; simplified employee pension arrangements; simple retirement accounts; custodial accounts; deferred compensation plans
for government or tax-exempt organization employees; Archer medical savings accounts; college savings plans; health savings account plans;
ordinary trusts and estates of natural persons; or certain other retirement and investment accounts with ultimate investment authority
held by the natural person beneficial owner, notwithstanding having an institutional decision maker making day-to-day decisions (e.g.,
a plan sponsor in certain retirement arrangements or an investment adviser managing discretionary investment accounts).
Further,
financial intermediaries may only submit purchase orders if they have
implemented policies and procedures reasonably designed to limit all investors on behalf of whom they submit orders to accounts beneficially
owned by natural persons. Financial intermediaries may be required to provide a written statement or other representation that they have
in place, and operate in compliance with, such policies and procedures prior to submitting purchase orders. Such policies and procedures
may include provisions for the financial intermediary to promptly report to the Fund or the transfer agent the identification of any shareholder
of the Fund that does not qualify as a natural person of whom they are aware and promptly take steps to redeem any such shareholder’s
shares of the Fund upon request by the Fund or the transfer agent, in such manner as it may reasonably request. The Fund may involuntarily
redeem any such shareholder who does not voluntarily redeem their shares.
Natural
persons may purchase shares using one of the options below. For
all classes of the Fund, other than Investor Class shares, unless the Fund closes early on a business day, the Fund’s transfer agent
will generally accept any purchase order placed until 5:00 p.m. Eastern Time on a business day and may accept a purchase order placed
until 5:30 p.m. Eastern Time on a business day. If you wish to place an order between 5:00 p.m. and 5:30 p.m. Eastern Time on a business
day, you must place such order by telephone; or send your request by a pre-arranged Liquidity Link data transmission however, the Fund’s
transfer agent reserves the right to reject or limit the amount of orders placed during this time. For Investor Class shares of the Fund,
unless the Fund closes early on a business day, the Fund’s transfer agent will generally accept any purchase order placed until
4:00 p.m. Eastern Time on a business day and may accept a purchase order placed until 4:30 p.m. Eastern Time on a business day. If you
wish to place an order between 4:00 p.m. and 4:30 p.m. Eastern Time on a business day, you must place such order by telephone; however,
the Fund’s transfer agent reserves the right to reject or limit the amount of orders placed during this time. If the Fund closes
early on a business day, the Fund’s transfer agent must receive your purchase order prior to such closing time. Purchase orders
will not be processed unless the account application and purchase payment are received in good order. In accordance with the USA PATRIOT
Act, if you fail to provide all the required information requested in the current account application, your purchase order will not be
A-11 The
Invesco Funds
processed.
Additionally, federal law requires that the Fund verify and record your identifying information.
Minimum Investments
There
are no minimum investments for Class P or S shares for fund accounts. The minimum investments for Class A, C, R, Y, Investor Class and
Invesco Cash Reserve shares for fund accounts are as follows:
|
Type
of Account |
Initial
Investment
Per
Fund |
Additional
Investments
Per
Fund |
|
Asset
or fee-based accounts managed by your financial
adviser
|
None
|
None
|
|
| ||
|
Employer
Sponsored Retirement and Benefit Plans and
Employer
Sponsored IRAs |
None
|
None
|
|
| ||
|
IRAs
and Coverdell ESAs if the new investor is
purchasing
shares through a systematic purchase plan |
$25
|
$25
|
|
| ||
|
All
other accounts if the investor is purchasing shares
through
a systematic purchase plan |
50
|
50
|
|
| ||
|
IRAs
and Coverdell ESAs |
250
|
25
|
|
| ||
|
All
other accounts |
1,000
|
50
|
|
| ||
Invesco
Distributors or its designee has the discretion to accept orders on behalf of clients for lesser amounts.
The
minimum investments for Class R5 and R6 shares are as follows:
There
is no minimum initial investment for an Employer Sponsored Retirement
and Benefit Plan investing through a retirement platform that administers at least $2.5 billion in retirement plan assets. All other Employer
Sponsored Retirement and Benefit Plans must meet a minimum initial investment of at least $1 million in each Fund in which it invests.
The
minimum initial investment in each share class for all other institutional
investors is $1 million, unless such investment is made by (i) an investment company, as defined under the 1940 Act, as amended, that
is part of a family of investment companies which own in the aggregate at least $100 million in securities, or (ii) an account established
with a 529 college savings plan managed by Invesco, in which case there is no minimum initial investment.
There
are no minimum investment amounts for Class R6 shares held through
retail omnibus accounts where the intermediary:
◾
generally
charges an asset-based fee or commission in addition to those described in this prospectus; and
◾
maintains
Class R6 shares and makes them available to retail investors.
A
financial intermediary may impose different investment minimums than
those set forth above. The Fund is not responsible for any investment minimums imposed by financial intermediaries or for notifying shareholders
of any changes to them. See “Waivers Available Through Certain Financial Intermediaries and Other Financial Intermediary-Specific
Arrangements” for more information on certain intermediary-specific investment minimums. Please consult with your financial intermediary
if you have any questions regarding their policies.
How
to Purchase Shares*
|
|
Opening
An Account |
Adding
To An Account |
|
Through
a
Financial
Adviser
or
Financial
Intermediary*
|
Contact
your financial adviser or
financial
intermediary. |
Contact
your financial adviser or
financial
intermediary. |
|
By
Mail |
Mail
completed account application
and
check to the Funds’ transfer
agent,
Invesco
Investment Services, Inc.
P.O.
Box 219078,
Kansas
City, MO 64121-9078.
The
Funds’ transfer agent does NOT
accept
the following types of
payments:
Credit Card Checks,
Temporary/Starter
Checks, Third
Party
Checks, and Cash. |
Mail
your check and the remittance
slip
from your confirmation
statement
to the Funds’ transfer
agent.
The Funds’ transfer agent
does
NOT accept the following
types
of payments: Credit Card
Checks,
Temporary/Starter Checks,
Third
Party Checks, and Cash. |
|
|
Opening
An Account |
Adding
To An Account |
|
By
Wire* |
Mail
completed account application
to
the Funds’ transfer agent. Call
the
Funds’ transfer agent at (800)
959-4246
to receive a reference
number.
Then, use the wire
instructions
provided below. |
Call
the Funds’ transfer agent to
receive
a reference number. Then,
use
the wire instructions provided
below.
|
|
Wire
Instructions |
Beneficiary
Bank ABA/Routing #: 011001234
Beneficiary
Account Number: 729639
Beneficiary
Account Name: Invesco Investment Services, Inc.
RFB:
Fund Name, Reference #
OBI:
Your Name, Account # | |
|
By
Telephone* |
Open
your account using one of the
methods
described above. |
The
Bank Account Information
option
on your completed account
application
or complete a
Systematic
Options and Bank
Information
Form. Mail the
application
or form to the Funds’
transfer
agent. Once the Funds’
transfer
agent has received the
form,
call the Funds’ transfer agent
at
the number below to place your
purchase
order. For Class R5 and
R6
shares, call the Funds’ transfer
agent
at (800) 959-4246 and wire
payment
for your purchase order in
accordance
with the wire
instructions
listed above. |
|
Automated
Investor
Line |
Open
your account using one of the
methods
described above. |
Call
the Funds’ transfer agent’s
24-hour
Automated Investor Line at
1-800-246-5463.
You may place
your
order after you have provided
the
bank instructions that will be
requested.
|
|
By
Internet |
Open
your account using one of the
methods
described above. |
Access
your account at
www.invesco.com/us.
The proper
bank
instructions must have been
provided
on your account. You may
not
purchase shares in Retirement
and
Benefit Plans on the internet. |
|
*Class
R5 and R6 shares may only be purchased through a financial intermediary or by
telephone
at (800) 959-4246. | ||
Non-retirement
retail investors, including high net worth investors investing
directly or through a financial intermediary, are not eligible for Class R5 shares. IRAs and Employer Sponsored IRAs are also not eligible
for Class R5 shares. If you hold your shares through a financial intermediary, the terms by which you purchase, redeem and exchange shares
may differ than the terms in this prospectus depending upon the policies and procedures of your financial intermediary.
Purchase
orders will not be processed unless the account application and
purchase payment are received in good order. In accordance with the USA PATRIOT Act, if you fail to provide all the required information
requested in the current account application, your purchase order will not be processed. Additionally, federal law requires that the Funds
verify and record your identifying information.
Systematic
Purchase Plan (Available for all classes except Class R5 and R6 shares)
You
can arrange for periodic investments in any of the Funds by authorizing the Funds’ transfer agent to withdraw the amount of your
investment from your bank account on a day or dates you specify and in an amount of at least $25 per Fund for IRAs and Coverdell ESAs,
and at least $50 per Fund for all other types of accounts (a Systematic Purchase Plan). You may stop the Systematic Purchase Plan at any
time by giving the Funds’ transfer agent notice ten days prior to your next scheduled withdrawal. Certain financial advisers and
other financial intermediaries may also offer systematic purchase plans.
A-12 The
Invesco Funds
Dollar
Cost Averaging (Available for all classes except Class R5 and R6 shares)
Dollar
Cost Averaging allows you to make automatic periodic exchanges, if permitted, from one Fund to another Fund or multiple other Funds. The
account from which exchanges are to be made must have a minimum balance of $5,000 before you can use this option. Exchanges will occur
on (or about) the day of the month you specify, in the amount you specify. Dollar Cost Averaging cannot be set up for the 29th through
the 31st of the month. The minimum amount you can exchange to another Fund is $50. Your financial intermediary may offer alternative dollar
cost averaging programs with different requirements.
Automatic
Dividend and Distribution Investment
Your
dividends and distributions may be paid in cash or reinvested in the same Fund or another Fund without paying an initial sales charge.
Unless
you specify otherwise, your dividends and distributions will automatically
be reinvested in the same Fund. You must comply with the following requirements to be eligible to invest your dividends and distributions
in shares of another Fund:
◾
Your
account balance in the Fund paying the dividend or distribution must be at least $5,000; and
◾
Your
account balance in the Fund receiving the dividend or distribution must be at least $500.
If
you elect to receive your distributions by check, and the distribution amount
is $25 or less, then the amount will be automatically reinvested in the same Fund and no check will be issued. If you have elected to
receive distributions by check, and the postal service is unable to deliver checks to your address of record, then your distribution election
may be converted to having all subsequent distributions reinvested in the same Fund and no checks will be issued. With respect to certain
account types, if your check remains uncashed for six months, the Fund generally reserves the right to reinvest your distribution check
in your account at the then applicable NAV and to reinvest all subsequent distributions in shares of the Fund. Such checks will be reinvested
into the same share class of the Fund. You should contact the Funds’ transfer agent to change your distribution option, and your
request to do so must be received by the Funds’ transfer agent before the record date for a distribution in order to be effective
for that distribution. No interest will accrue on amounts represented by uncashed distribution checks.
Redeeming
Shares*
The
Funds’ transfer agent or authorized intermediary, if applicable, must receive your call before the Funds’ net asset value
determination (as defined by the applicable Fund) in order to effect the redemption at that day’s net asset value.
Your
broker or financial intermediary may charge service fees for handling
redemption transactions.
|
How
to Redeem Shares | |
|
Through
a Financial
Adviser
or Financial
Intermediary*
|
Contact
your financial adviser or financial intermediary. The Funds’
transfer
agent must receive your financial adviser’s or financial
intermediary’s
call before the Funds’ net asset value determination
(as
defined by the applicable Fund) in order to effect the redemption
at
that day’s net asset value. Please contact your financial adviser or
financial
intermediary with respect to reporting of cost basis and
available
elections for your account. |
|
By
Mail |
Send
a written request to the Funds’ transfer agent which includes: |
|
|
▪ Original
signatures of all registered owners/trustees;
▪ The
dollar value or number of shares that you wish to redeem;
▪ The
name of the Fund(s) and your account number;
▪ The
cost basis method or specific shares you wish to redeem for
tax
reporting purposes, if different than the method already on
record;
and |
|
|
▪ Signature
guarantees, if necessary (see below).
The
Funds’ transfer agent may require that you provide additional
documentation,
or information, such as corporate resolutions or
powers
of attorney, if applicable. If you are redeeming from a
Retirement
and Benefit Plan, you must complete the appropriate
distribution
form. |
|
How
to Redeem Shares | |
|
By
Telephone* |
Call
the Funds’ transfer agent at 1-800-959-4246. You will be
allowed
to redeem by telephone if:
▪ Your
redemption proceeds are to be mailed to your address on
record
(and there has been no change in your address of record
within
the last 15 days) or transferred electronically to a
pre-authorized
checking account;
▪ You
can provide proper identification information;
▪ Your
redemption proceeds do not exceed $250,000 per Fund; and
▪ You
have not previously declined the telephone redemption
privilege.
|
|
|
You
may, in limited circumstances, initiate a redemption from an
Invesco
IRA by telephone. Redemptions from Employer Sponsored
Retirement
and Benefit Plans and Employer Sponsored IRAs may be
initiated
only in writing and require the completion of the appropriate
distribution
form, as well as employer authorization. You must call the
Funds’
transfer agent before the Funds’ net asset value
determination
(as defined by the applicable Fund) in order to effect
the
redemption at that day’s net asset value. |
|
Automated
Investor Line |
Call
the Funds’ transfer agent’s 24-hour Automated Investor Line at
1-800-246-5463.
You may place your redemption order after you
have
provided the bank instructions that will be requested. |
|
By
Internet |
Place
your redemption request at www.invesco.com/us. You will be
allowed
to redeem by Internet if:
▪ You
can provide proper identification information;
▪ Your
redemption proceeds do not exceed $250,000 per Fund; and
▪ You
have already provided proper bank information.
Redemptions
from Employer Sponsored Retirement and Benefit
Plans
and Employer Sponsored IRAs may be initiated only in writing
and
require the completion of the appropriate distribution form, as
well
as employer authorization. |
|
*Class
R5 and R6 shares may only be redeemed through a financial intermediary or by
telephone
at (800) 959-4246. | |
Timing
and Method of Payment
The
Funds’ transfer agent typically expects to pay redemption proceeds to redeeming shareholders within one business day after a redemption
request is received in good order, regardless of the method a Fund uses to make such payment. However, a Fund may take up to seven days
to process a redemption request. “Good order” means that all necessary information and documentation related to the redemption
request have been provided to the Funds’ transfer agent or authorized intermediary, if applicable. If your request is not in good
order, the Funds’ transfer agent may require additional documentation in order to redeem your shares. If you redeem shares recently
purchased by check or ACH, you may be required to wait up to ten calendar days before your redemption proceeds are sent. This delay is
necessary to ensure that the purchase has cleared. You can avoid the check hold period if you pay for your shares with a certified check,
a cashier’s check or a federal wire. Payment may be postponed under unusual circumstances, as allowed by the SEC, such as when the
NYSE restricts or suspends trading.
In
addition, a temporary hold may be placed on the disbursement of redemption
proceeds from an account if there is a reasonable belief that financial exploitation of a Specified Adult (as defined below) has occurred,
is occurring, has been attempted, or will be attempted. Notice of such a delay will be provided in accordance with regulatory requirements.
This temporary hold will be for an initial period of no more than 15 business days while an internal review is performed. Should the internal
review support the belief that financial exploitation has occurred, is occurring, has been attempted or will be attempted, the temporary
hold may be extended for up to 10 additional business days. Both the initial and subsequent hold on the disbursement may be terminated
or extended by a state regulator or an agency or court of competent jurisdiction. For purposes of this paragraph, the term “Specified
Adult” refers to an individual who is (a) a natural person age 65 and older, or (b) a natural person age 18 and older who is reasonably
believed to have a mental or physical impairment that renders the individual unable to protect his or her own interests.
If
you redeem by telephone, the Funds’ transfer agent will transmit the amount
of redemption proceeds electronically to your pre-authorized bank account. Redemption checks are mailed to your address of record, via
first
A-13 The
Invesco Funds
class
U.S. mail, unless you make other arrangements with the Funds’ transfer agent.
The
Funds’ transfer agent uses reasonable procedures to confirm that instructions
communicated via telephone and the Internet are genuine, and the Funds and the Funds’ transfer agent are not liable for losses arising
from actions taken in accordance with instructions that are reasonably believed to be genuine.
A
Fund typically expects to use holdings of cash and cash equivalents and
sales of portfolio assets to meet redemption requests, both regularly and in stressed market conditions. The Funds also have the ability
to redeem in kind as further described below under “Redemptions in Kind.” Certain Funds have a line of credit,
as disclosed in such Funds’ principal investment strategy
and risk disclosures that may be used to meet redemptions in stressed market conditions.
Expedited
Redemptions (for Invesco Cash Reserve Shares of Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio only)
If
you place your redemption order by telephone, before 11:30 a.m. Eastern Time and request an expedited redemption, the Funds’ transfer
agent will transmit payment of redemption proceeds on that same day via federal wire to a bank of record on your account. If the Funds’
transfer agent receives your redemption order after 11:30 a.m. Eastern Time and before the close of the customary trading session of the
NYSE, it will transmit payment on the next business day.
Suspension
of Redemptions
The
right of redemption may be suspended or the date of payment postponed when (a) trading on the NYSE is restricted, as determined by applicable
rules and regulations of the SEC, (b) the NYSE is closed for other than customary weekend and holiday closings, (c) the SEC has by order
permitted such suspension, or (d) an emergency as determined by the SEC exists making disposition of portfolio securities or the valuation
of the net assets of the Fund not reasonably practicable. With respect to Invesco Government Money Market Fund, Invesco U.S. Government
Money Portfolio, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio, in the event that the Fund, at the end
of a business day, has invested less than 10% of its total assets in weekly liquid assets or, with respect to the retail and government
money market funds, the Fund’s price per share as computed for the purpose of distribution, redemption and repurchase, rounded to
the nearest 1%, has deviated from the stable price established by the Fund’s Board of Trustees (“Board”) or the Board,
including a majority of trustees who are not interested persons as defined in the 1940 Act, determines that such a deviation is likely
to occur, and the Board, including a majority of trustees who are not interested persons of the Fund, irrevocably has approved the liquidation
of the Fund, the Fund’s Board has the authority to suspend redemptions of Fund shares.
Liquidity
Fees and Redemption Gates
For
Invesco Premier Portfolio, if the Fund’s weekly liquid assets fall below 30% of its total assets, the Board, in its discretion,
may impose liquidity fees of up to 2% of the value of the shares redeemed and/or suspend redemptions (redemption gates). In addition,
if any such Fund’s weekly liquid assets falls below 10% of its total assets at the end of any business day, the Fund must impose
a 1% liquidity fee on shareholder redemptions unless the Board determines that not doing so is in the best interests of the Fund.
Liquidity
fees and redemption gates are most likely to be imposed, if at all,
during times of extraordinary market stress. In the event that a liquidity fee or redemption gate is imposed, the Board expects that for
the duration of its implementation and the day after which such gate or fee is terminated, the Fund would strike only one net asset value
per day, at the Fund’s last scheduled net asset value calculation time.
The
imposition and termination of a liquidity fee or redemption gate will be
reported by a Fund to the SEC on Form N-CR. Such information will also be available on the Fund’s website. In addition, a Fund will
communicate such action through a supplement to its registration statement and may further communicate such action through a press release
or by other means. If a liquidity fee is applied by the Board, it will be charged on all
redemption
orders submitted after the effective time of the imposition of the fee by the Board. Liquidity fees would reduce the amount you receive
upon redemption of your shares. In the event a Fund imposes a redemption gate, the Fund or any financial intermediary on its behalf will
not accept redemption requests until the Fund provides notice that the redemption gate has been terminated.
Redemption
requests submitted while a redemption gate is imposed will be cancelled
without further notice. If shareholders still wish to redeem their shares after a redemption gate has been lifted, they will need to submit
a new redemption request.
Liquidity
fees and redemption gates will generally be used to assist a Fund
to help preserve its market–based NAV per share. It is possible that a liquidity fee will be returned to shareholders in the form
of a distribution. The Board may, in its discretion, terminate a liquidity fee or redemption gate at any time if it believes such action
to be in the best interest of a Fund. Also, liquidity fees and redemption gates will automatically terminate at the beginning of the next
business day once a Fund’s weekly liquid assets reach at least 30% of its total assets. Redemption gates may only last up to 10
business days in any 90-day period. When a fee or a gate is in place, the Fund may elect not to permit the purchase of shares or to subject
the purchase of shares to certain conditions, which may include affirmation of the purchaser’s knowledge that a fee or a gate is
in effect. When a fee or a gate is in place, shareholders will not be permitted to exchange into or out of a Fund.
There
is some degree of uncertainty with respect to the tax treatment of liquidity
fees received by a Fund, and such tax treatment may be the subject to future IRS guidance. If a Fund receives liquidity fees, it will
consider the appropriate tax treatment of such fees to the Fund at such time.
Financial
intermediaries are required to promptly take the steps requested
by the Funds or their designees to impose or help to implement a liquidity fee or redemption gate as requested from time to time, including
the rejection of orders due to the imposition of a fee or gate or the prompt re-confirmation of orders following a notification regarding
the implementation of a fee or gate. If a liquidity fee is imposed, these steps are expected to include the submission of separate, rather
than combined, purchase and redemption orders from the time of the effectiveness of the liquidity fee or redemption gate and the submission
of such order information to the Fund or its designee prior to the next calculation of a Fund’s net asset value. Unless otherwise
agreed to between a Fund and financial intermediary, the Fund will withhold liquidity fees on behalf of financial intermediaries. With
regard to such orders, a redemption request that a Fund determines in its sole discretion has been received in good order by the Fund
or its designated agent prior to the imposition of a liquidity fee or redemption gate may be paid by the Fund despite the imposition of
a redemption gate or without the deduction of a liquidity fee. If a liquidity fee is imposed during the day, an intermediary who receives
both purchase and redemption orders from a single account holder is not required to net the purchase and redemption orders. However, the
intermediary is permitted to apply the liquidity fee to the net amount of redemptions (even if the purchase order was received prior to
the time the liquidity fee was imposed).
Where
a Financial Intermediary serves as a Fund’s agent for the purpose
of receiving orders, trades that are not transmitted to the Fund by the Financial Intermediary before the time required by the Fund or
the transfer agent may, in the Fund’s discretion, be processed on an as-of basis, and any cost or loss to the Fund or transfer agent
or their affiliates, from such transactions shall be borne exclusively by the Financial Intermediary.
Systematic
Withdrawals (Available for all classes except Class R5 and R6 shares)
You
may arrange for regular periodic withdrawals from your account in amounts equal to or greater than $50 per Fund. The Funds’ transfer
agent will redeem the appropriate number of shares from your account to provide redemption proceeds in the amount requested. You must
have a total account balance of at least $5,000 in order to establish a Systematic Redemption Plan, unless you are establishing a Required
Minimum
A-14 The
Invesco Funds
Distribution
for a Retirement and Benefit Plan. You can stop this plan at any time by giving ten days’ prior notice to the Funds’ transfer
agent.
Check
Writing
The
Funds’ transfer agent provides check writing privileges for accounts in the following Funds and share classes:
◾
Invesco
Government Money Market Fund, Invesco Cash Reserve Shares, Class AX shares, Class Y shares and Investor Class shares
◾
Invesco
U.S. Government Money Portfolio, Invesco Cash Reserve Shares and Class Y shares
◾
Invesco
Premier Portfolio, Investor Class shares
◾
Invesco
Premier U.S. Government Money Portfolio, Investor Class shares
You
may redeem shares of these Funds by writing checks in amounts of $250
or more if you have subscribed to the service by completing a Check Writing authorization form.
Check
writing privileges are not available for Retirement and Benefit Plans.
Checks are not eligible to be converted to ACH by the payee. You may not give authorization to a payee by phone to debit your account
by ACH for a debt owed to the payee.
If
you do not have a sufficient number of shares in your account to cover
the amount of the check and any applicable deferred sales charge, the check will be returned and no shares will be redeemed. Because it
is not possible to determine your account’s value in advance, you should not write a check for the entire value of your account
or try to close your account by writing a check.
A
check writing redemption request which is verifiably submitted to a Fund’s
agent before a liquidity fee or redemption gate is imposed will be considered a valid redemption and will be processed normally.
Signature
Guarantees
The
Funds’ transfer agent requires a signature guarantee in the following circumstances:
◾
When
your redemption proceeds exceed $250,000 per Fund.
◾
When
you request that redemption proceeds be paid to someone other than the registered owner of the account.
◾
When
you request that redemption proceeds be sent somewhere other than the address of record or bank of record on the account.
◾
When
you request that redemption proceeds be sent to a new address or an address that changed in the last 15 days.
The
Funds’ transfer agent will accept a guarantee of your signature by a number
of different types of financial institutions. Call the Funds’ transfer agent for additional information. Some institutions have
transaction amount maximums for these guarantees. Please check with the guarantor institution to determine whether the signature guarantee
offered will be sufficient to cover the value of your transaction request.
Redemptions
in Kind
Although
the Funds generally intend to pay redemption proceeds solely in cash, the Funds reserve the right to determine, in their sole discretion,
whether to satisfy redemption requests by making payment in securities or other property (known as a redemption in kind). Redemptions
in kind may result in transaction costs and/or market fluctuations associated with liquidating or holding the securities, respectively.
Purchases-in-Kind
You
may purchase shares of a Fund by transferring securities to a Fund in exchange for Fund shares (“in-kind purchases”). In-kind
purchases may be made only upon the Funds’ approval and determination that the securities are acceptable investments for the Fund
and are purchased consistent with the Fund’s procedures relating to in-kind purchases. The Funds reserve the right to amend or terminate
this practice at any time. You must call the Funds at (800) 959-4246 before sending any securities. Please see the SAI for additional
details.
Redemptions
by Large Shareholders
At
times, the Fund may experience adverse effects when certain large shareholders redeem large amounts of shares of the Fund. Large redemptions
may cause the Fund to sell portfolio securities at times when it would not otherwise do so. In addition, these transactions may also
accelerate
the realization of taxable income to shareholders (if applicable) if such sales of investments resulted in gains and may also increase
transaction costs and/or increase in the Fund’s expense ratio. When experiencing a redemption by a large shareholder, the Fund may
delay payment of the redemption request up to seven days to provide the investment manager with time to determine if the Fund can redeem
the request-in-kind or to consider other alternatives to lessen the harm to remaining shareholders. Under certain circumstances, however,
the Fund may be unable to delay a redemption request, which could result in the automatic processing of a large redemption that is detrimental
to the Fund and its remaining shareholders.
Redemptions
Initiated by the Funds
If
your account (Class A, C, P, S and Investor Class shares only) has been open at least one year, you have not made an additional purchase
in the account during the past six calendar months, and the value of your account falls below $500 for three consecutive months, the Funds
have the right to redeem the account after giving you 60 days’ prior written notice. You may avoid having your account redeemed
during the notice period by bringing the account value up to $500 or by initiating a Systematic Purchase Plan.
A
financial intermediary may have a different policy regarding redemptions
of accounts with small balances. The Fund is not responsible for any small account balance policies imposed by financial intermediaries
or for notifying shareholders of any changes to them. See “Waivers Available Through Certain Financial Intermediaries and Other
Financial Intermediary-Specific Arrangements” for more information on certain intermediary-specific small account balance policies.
Please consult with your financial intermediary if you have any questions regarding their policies.
If
a Fund determines that you have not provided a correct Social Security
or other tax identification number on your account application, or the Fund is not able to verify your identity as required by law, the
Fund may, at its discretion, redeem the account and distribute the proceeds to you.
In
order to separate retail investors (natural persons) and non-retail investors,
the Invesco Premier Portfolio reserve the right to redeem shares in any account that the Funds cannot confirm to their satisfaction are
beneficially owned by natural persons. The Funds will provide advance written notice of their intent to make any such involuntary redemptions.
The Funds reserve the right to redeem shares in any account that they cannot confirm to their satisfaction are beneficially owned by natural
persons, after providing advance notice.
Neither
a Fund nor its investment adviser will be responsible for any loss
in an investor’s account or tax liability resulting from an involuntary redemption.
Minimum
Account Balance (Available for all classes except Class R5 and R6 shares)
A
low balance fee of $12 per year may be deducted in the fourth quarter of each year from all accounts held in the Funds (each a Fund Account)
with a value less than the low balance amount (the Low Balance Amount) as determined from time to time by the Funds and the Adviser. The
Funds and the Adviser generally expect the Low Balance Amount to be $750, but such amount may be adjusted for any year depending on various
factors, including market conditions. The Low Balance Amount and the date on which it will be deducted from any Fund Account will be posted
on our website, www.invesco.com/us, on or about November 1 of each year. This fee will be payable to the Funds’ transfer agent by
redeeming from a Fund Account sufficient shares owned by a shareholder and will be used by the Funds’ transfer agent to offset amounts
that would otherwise be payable by the Funds to the Funds’ transfer agent under the Funds’ transfer agency agreement with
the Funds’ transfer agent. The low balance fee does not apply to participant accounts in advisory programs or to Employer Sponsored
Retirement and Benefit Plans.
Exchanging
Shares
You
may, under certain circumstances, exchange shares in one Fund for those of another Fund. An exchange is the purchase of shares in one
Fund which is paid for with the proceeds from a redemption of shares of another
A-15 The
Invesco Funds
Fund
effectuated on the same day. Any gain on the transaction may be subject to federal income tax. Accordingly, the procedures and processes
applicable to redemptions of Fund shares, as discussed under the heading “Redeeming Shares” above, will apply. Before requesting
an exchange, review the prospectus of the Fund you wish to acquire.
All
exchanges are subject to the limitations set forth in the prospectuses of
the Funds. If you wish to exchange shares of one Fund for those of another Fund, you must consult the prospectus of the Fund whose shares
you wish to acquire to determine whether the Fund is offering shares to new investors and whether you are eligible to acquire shares of
that Fund.
Permitted
Exchanges
Except
as otherwise provided herein or in the SAI, you generally may exchange your shares for shares of the same class of another Fund. The following
table shows generally permitted exchanges from one Fund to another Fund (exceptions listed below under “Exchanges Not Permitted”):
|
Exchange
From |
Exchange
To |
|
Invesco
Cash Reserve Shares |
Class
A, C, R, Investor Class |
|
| |
|
Class
A |
Class
A, Investor Class, Invesco Cash Reserve Shares* |
|
| |
|
Class
A2 |
Class
A, Investor Class, Invesco Cash Reserve Shares |
|
| |
|
Class
AX |
Class
A, AX, Investor Class, Invesco Cash Reserve Shares |
|
| |
|
Investor
Class |
Class
A, Investor Class |
|
| |
|
Class
P |
Class
A, Invesco Cash Reserve Shares |
|
| |
|
Class
S |
Class
A, S, Invesco Cash Reserve Shares |
|
| |
|
Class
C |
Class
C* |
|
| |
|
Class
CX |
Class
C, CX |
|
| |
|
Class
R |
Class
R* |
|
| |
|
Class
R5 |
Class
R5 |
|
| |
|
Class
R6 |
Class
R6 |
|
| |
|
Class
Y |
Class
Y* |
|
|
|
|
* You
may exchange Class Y shares of Invesco U.S. Government Money Portfolio for Class A, C
or
R shares of any other Fund as long as you are otherwise eligible for such share class. If you
exchange
Class Y shares of Invesco U.S. Government Money Portfolio for Class A, C or R shares
of
any other Fund, you may exchange those Class A, C or R shares back into Class Y shares of
Invesco
U.S. Government Money Portfolio, but not Class Y shares of any other Fund. | |
Exchanges
into Invesco Senior Loan Fund
Invesco
Senior Loan Fund is a closed-end interval fund that continuously offers its shares pursuant to the terms and conditions of its prospectus.
The Adviser is the investment adviser for the Invesco Senior Loan Fund. As with the Invesco Funds, you generally may exchange your shares
of Class A (Invesco Cash Reserve Shares of Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio) or Class
C of any Invesco Fund for shares of Class A or Class C, respectively, of Invesco Senior Loan Fund. Please refer to the prospectus for
the Invesco Senior Loan Fund for more information, including limitations on exchanges out of Invesco Senior Loan Fund.
Exchanges
Not Permitted
The
following exchanges are not permitted:
◾
Investor
Class shares cannot be exchanged for Class A shares of any Fund which offers Investor Class shares.
◾
Class A2
shares of Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund cannot be exchanged for Class A shares
of those Funds.
◾
Invesco
Cash Reserve Shares cannot be exchanged for Class C or R shares if the shares being exchanged were acquired by exchange from Class A
shares of any Fund.
◾
All
existing systematic exchanges and reallocations will cease and these options will no longer be available on all 403(b) prototype plans.
◾
Class
A, C or R shares of a Fund acquired by exchange of Class Y shares of Invesco U.S. Government Money Portfolio cannot be exchanged for Class
Y shares of any Fund, except Class Y shares of Invesco U.S. Government Money Portfolio.
Exchange
Conditions
Shares
must have been held for at least one day prior to the exchange with the exception of dividends and distributions that are reinvested.
Under
unusual market conditions, a Fund may delay the exchange of shares
for up to five business days if it determines that it would be materially disadvantaged by the immediate transfer of exchange proceeds.
The exchange privilege is not an option or right to purchase shares. Any of the participating Funds or the distributor may modify or terminate
this privilege at any time.
Initial
Sales Charges, CDSCs and 12b-1 Fees Applicable to Exchanges
You
may be required to pay an initial sales charge when exchanging from a Fund with a lower initial sales charge than the one into which you
are exchanging. If you exchange into shares that are subject to a CDSC, the Funds’ transfer agent will begin the holding period
for purposes of calculating the CDSC on the date you made your initial purchase.
In
addition, as a result of differences in the forms of distribution plans among
the Funds, certain exchanges of Class A shares, Class C shares, and Class R shares of a Fund for the same class of shares of another Fund
may result in investors paying a higher or a lower 12b-1 fee on the Fund being exchanged into. Please refer to the prospectus fee table
and financial highlights table and the SAI for more information on the fees and expenses, including applicable 12b-1 fees, of the Fund
you wish to acquire.
Share
Class Conversions
Shares
of one class of a Fund may be converted into shares of another class of the same Fund, provided that you are eligible to buy that share
class. Investors who hold Fund shares through a financial intermediary that does not have an agreement to make certain share classes of
the Funds available or that cannot systematically support the conversion may not be eligible to convert their shares. Furthermore, your
financial intermediary may have discretion to effect a conversion on your behalf. Consult with your financial intermediary for details.
Any CDSC associated with the converting shares will be assessed immediately prior to the conversion to the new share class. The conversion
of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes and no gain
or loss will be reported on the transaction. See the applicable prospectus for share class information.
Fees
and expenses differ between share classes. You should read the prospectus
for the share class into which you are seeking to convert your shares prior to the conversion.
Automatic
Conversion of Class C and Class CX Shares
Class
C and Class CX shares held for eight years after purchase are eligible for automatic conversion into Class A and Class AX shares of the
same Fund, respectively, except that for the Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio, the Funds’
Class C and/or Class CX shares would be eligible to automatically convert into the Fund’s Invesco Cash Reserve Share Class and all
existing Class C shares of Invesco Short Term Municipal Fund will automatically convert to Class A shares of that Fund at the end of June
2022 (the Conversion Feature). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month
following the eighth anniversary after a purchase of Class C or Class CX shares (the Conversion Date). The first conversion of Class C
and Class CX shares to Class A and Class AX shares under this policy would occur at the end of December 2020 for all Class C and Class
CX shares that were held for more than eight years as of November 30, 2020.
Automatic
conversions pursuant to the Conversion Feature will be on the basis
of the NAV per share, without the imposition of any sales charge (including a CDSC), fee or other charge. All such automatic conversions
of Class C and Class CX shares will constitute tax-free exchanges for federal income tax purposes.
Class
C and Class CX shares of a Fund acquired through a reinvestment of
dividends and distributions will convert to Class A and Class AX shares, respectively, of the Fund (or Invesco Cash Reserve shares for
Invesco
A-16 The
Invesco Funds
Government
Money Market Fund) on the Conversion Date pro rata with the converting Class C and Class CX shares of that Fund that were not acquired
through reinvestment of dividends and distributions.
Class
C or Class CX shares held through a financial intermediary in existing
omnibus Employer Sponsored Retirement and Benefit Plans and other omnibus accounts may be converted pursuant to the Conversion Feature
by the financial intermediary once it is determined that the Class C or Class CX shares have been held for the required holding period.
It is the financial intermediary’s (and not the Fund’s) responsibility to keep records and to ensure that the shareholder
is credited with the proper holding period as the Fund and its agents may not have transparency into how long a shareholder has held Class
C or Class CX shares for purposes of determining whether such Class C or Class CX shares are eligible to automatically convert pursuant
to the Conversion Feature. In order to determine eligibility for automatic conversion in these circumstances, it is the responsibility
of the shareholder or their financial intermediary to determine that the shareholder is eligible to exercise the Conversion Feature, and
the shareholder or their financial intermediary may be required to maintain records that substantiate the holding period of Class C or
Class CX shares.
In
addition, a financial intermediary may sponsor and/or control programs
or platforms that impose a different conversion schedule or eligibility requirements for conversions of Class C or Class CX shares. In
these cases, Class C and Class CX shares of certain shareholders may not be eligible for automatic conversion pursuant to the Conversion
Feature as described above. The Fund has no responsibility for overseeing, monitoring or implementing a financial intermediary’s
process for determining whether a shareholder meets the required holding period for automatic conversion. Please consult with your financial
intermediary if you have any questions regarding the Conversion Feature.
Share
Class Conversions Not Permitted
The
following share class conversions are not permitted:
◾
Conversions
into Class A from Class A2 of the same Fund.
◾
Conversions
into Class A2, Class AX, Class CX, Class P or Class S of the same Fund.
Rights
Reserved by the Funds
Each
Fund and its agents reserve the right at any time to:
◾
Reject
or cancel all or any part of any purchase or exchange order.
◾
Modify
any terms or conditions related to the purchase, redemption or exchange of shares of any Fund.
◾
Reject
or cancel any request to establish a Systematic Purchase Plan or Systematic Redemption Plan.
◾
Modify
or terminate any sales charge waivers or exceptions.
◾
Suspend,
change or withdraw all or any part of the offering made by this prospectus.
Excessive
Short-Term Trading Activity (Market Timing) Disclosures
While
the Funds provide their shareholders with daily liquidity, their investment programs are designed to serve long-term investors and are
not designed to accommodate excessive short-term trading activity in violation of our policies described below. Excessive short-term trading
activity in the Funds’ shares (i.e., a purchase of Fund shares followed shortly thereafter by a redemption of such shares, or vice
versa) may hurt the long-term performance of certain Funds by requiring them to maintain an excessive amount of cash or to liquidate portfolio
holdings at a disadvantageous time, thus interfering with the efficient management of such Funds by causing them to incur increased brokerage
and administrative costs. Where excessive short-term trading activity seeks to take advantage of arbitrage opportunities from stale prices
for portfolio securities, the value of Fund shares held by long-term investors may be diluted. The Board has adopted policies and procedures
designed to discourage excessive or short-term trading of Fund shares for all Funds except the money market funds, Invesco Conservative
Income Fund, and Invesco Short Term Municipal Fund. However, there is the risk that these Funds’ policies and procedures will prove
ineffective in whole or in part to detect or prevent excessive or
short-term
trading. These Funds may alter their policies at any time without prior notice to shareholders if the Adviser believes the change would
be in the best interests of long-term shareholders.
Invesco
and certain of its corporate affiliates (Invesco and such affiliates,
collectively, the Invesco Affiliates) currently use the following tools designed to discourage excessive short-term trading in the retail
Funds:
◾
Trade
activity monitoring.
◾
Discretion
to reject orders.
◾
Purchase
blocking.
◾
The
use of fair value pricing consistent with the valuation policy approved by the Board and related procedures.
Each
of these tools is described in more detail below. Although these tools
are designed to discourage excessive short-term trading, you should understand that none of these tools alone nor all of them taken together
eliminate the possibility that excessive short-term trading activity in the Funds will occur. Moreover, each of these tools involves judgments
that are inherently subjective. Invesco Affiliates seek to make these judgments to the best of their abilities in a manner that they believe
is consistent with long-term shareholder interests.
Money
Market Funds. The Boards of Invesco Government Money Market Fund,
Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio (the money market
funds) have not adopted any policies and procedures that would limit frequent purchases and redemptions of such Funds’ shares. The
Boards of the money market funds considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal. Nonetheless, to the extent that a money market fund must maintain additional cash and/or
securities with short-term durations in greater amounts than may otherwise be required or borrow to honor redemption requests, the money
market fund’s yield could be negatively impacted.
The
Boards of the money market funds do not believe that it is appropriate
to adopt any such policies and procedures for the money market funds for the following reasons:
◾
The
money market funds are offered to investors as cash management vehicles; therefore, investors should be able to purchase and redeem shares
regularly and frequently.
◾
One
of the advantages of a money market fund as compared to other investment options is liquidity. Any policy that diminishes the liquidity
of the money market funds will be detrimental to the continuing operations of such Funds.
◾
With
respect to the money market funds maintaining a constant net asset value, the money market funds’ portfolio securities are valued
on the basis of amortized cost, and such Funds seek to maintain a constant net asset value. As a result, the money market funds are not
subject to price arbitrage opportunities.
◾
With
respect to the money market funds maintaining a constant net asset value, because such Funds seek to maintain a constant net asset value,
investors are more likely to expect to receive the amount they originally invested in the Funds upon redemption than other mutual funds.
Invesco
Conservative Income Fund. The Board of Invesco Conservative Income
Fund has not adopted any policies and procedures that would limit frequent purchases and redemptions of such Fund’s shares. The
Board of Invesco Conservative Income Fund considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal especially in light of the reasons for not having such a policy as described below. Nonetheless,
to the extent that the Fund must maintain additional cash and/or securities with short-term durations in greater amounts than may otherwise
be required or borrow to honor redemption requests, the Fund’s yield could be negatively impacted.
The
Board of the Invesco Conservative Income Fund does not believe that
it is appropriate to adopt any such policies and procedures for the Fund for the following reasons:
◾
The
Fund is offered to investors as a cash management vehicle; investors perceive an investment in the Fund as an alternative to cash and
must be able to purchase and redeem shares regularly and frequently.
A-17 The
Invesco Funds
◾
One
of the advantages of the Fund as compared to other investment options is liquidity. Any policy that diminishes the liquidity of the Fund
will be detrimental to the continuing operations of the Fund.
Excessive
trading activity in the Fund’s shares may cause the Fund to incur
increased brokerage and administrative costs.
The
Fund and its agent reserve the right at any time to reject or cancel any
part of any purchase order. This could occur if the Fund determines that such purchase may disrupt the Fund’s operation or performance.
Invesco
Short Term Municipal Fund. The Board of Invesco Short Term Municipal
Fund has not adopted any policies and procedures that would limit frequent purchases and redemptions of such Fund’s shares. The
Board of Invesco Short Term Municipal Fund considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal, especially in light of the reasons for not having such a policy as described below. Nonetheless,
to the extent that the Fund must maintain additional cash and/or securities with short-term durations in greater amounts than may otherwise
be required or borrow to honor redemption requests, the Fund’s yield could be negatively impacted.
The
Board of Invesco Short Term Municipal Fund does not believe that it is
appropriate to adopt any such policies and procedures for the Fund for the following reasons:
◾
The
Fund is designed to address the needs of retail investors who seek liquidity in their investment and seek the ability to purchase and
redeem shares at any time.
◾
Any
policy that diminishes the ability of shareholders to purchase and redeem shares of the Fund will be detrimental to the continuing operations
of the Fund.
◾
The
Fund generally invests in short duration liquid investment grade municipal securities.
Excessive
trading activity in the Fund’s shares may cause the Fund to incur
increased brokerage and administrative costs. The Fund and its agent reserve the right at any time to reject or cancel any part of any
purchase order. This could occur if the Fund determines that such purchase may disrupt the Fund’s operation or performance.
Trade
Activity Monitoring
Invesco
Affiliates monitor selected trades on a daily basis in an effort to detect excessive short-term trading activities. If, as a result of
this monitoring, Invesco Affiliates believe that a shareholder has engaged in excessive short-term trading, they will seek to act in a
manner that they believe is consistent with the best interests of long-term investors, which may include taking steps such as (i) asking
the shareholder to take action to stop such activities or (ii) refusing to process future purchases or exchanges related to such activities
in the shareholder’s accounts other than exchanges into a money market fund. Invesco Affiliates will use reasonable efforts to apply
the Funds’ policies uniformly given the practical limitations described above.
The
ability of Invesco Affiliates to monitor trades that are made through accounts
that are maintained by intermediaries (rather than the Funds’ transfer agent) and through conduit investment vehicles may be limited
or non-existent.
Discretion
to Reject Orders
If
a Fund or an Invesco Affiliate determines, in its sole discretion, that your short-term trading activity is excessive, the Fund may, in
its sole discretion, reject any additional purchase and exchange orders. This discretion may be exercised with respect to purchase or
exchange orders placed directly with the Funds’ transfer agent or through a financial intermediary.
Purchase
Blocking Policy
The
Funds (except those listed below) have adopted a policy under which any shareholder redeeming shares having a value of $50,000 or more
from a Fund on any trading day will be precluded from investing in that Fund for 30 calendar days after the redemption transaction date.
The policy applies to redemptions and purchases that are part of exchange transactions. Under the purchase blocking policy, certain purchases
will not be prevented and certain redemptions will not trigger a purchase block, such as: purchases
and redemptions
of shares having a value of less than $50,000; systematic purchase, redemption and exchange account options; transfers of shares within
the same Fund; non-discretionary rebalancing in fund-of-funds; asset allocation features; fee-based accounts; account maintenance fees;
small balance account fees; plan-level omnibus Retirement and Benefit Plans; death and disability and hardship distributions; loan transactions;
transfers of assets; Retirement and Benefit Plan rollovers; IRA conversions and re-characterizations; and mandatory distributions from
Retirement and Benefit Plans.
The
Funds reserve the right to modify any of the parameters (including those
not listed above) of the purchase blocking policy at any time. Further, the purchase blocking policy may be waived with respect to specific
shareholder accounts in those instances where the Adviser determines that its surveillance procedures are adequate to detect frequent
trading in Fund shares.
If
an account is maintained by a financial intermediary whose systems are
unable to apply Invesco’s purchase blocking policy, the Adviser will accept the establishment of an account only if the Adviser
believes the policies and procedures are reasonably designed to enforce the frequent trading policies of the Funds. You should refer to
disclosures provided by the financial intermediary with which you have an account to determine the specific trading restrictions that
apply to you. If the Adviser identifies any activity that may constitute frequent trading, it reserves the right to contact the intermediary
and request that the intermediary either provide information regarding an account owner’s transactions or restrict the account owner’s
trading. There is no guarantee that all instances of frequent trading in Fund shares will be prevented.
The
purchase blocking policy does not apply to Invesco Conservative Income
Fund, Invesco Short Term Municipal Fund, Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government
Money Portfolio and Invesco U.S. Government Money Portfolio.
Pricing
of Shares
Determination
of Net Asset Value
The
price of each Fund’s shares is the Fund’s net asset value per share. The Funds (except Invesco Government Money Market Fund,
Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio) value portfolio
securities for which market quotations are readily available at market value. Securities and other assets quoted in foreign currencies
are valued in U.S. dollars based on the prevailing exchange rates on that day. The Funds (except Invesco Government Money Market Fund,
Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio) value securities
and assets for which market quotations are unavailable at their “fair value,” which is described below. Invesco Government
Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio
value portfolio securities on the basis of amortized cost, which approximates market value. This method of valuation is designed to enable
a Fund to price its shares at $1.00 per share. The Funds cannot guarantee their net asset value will always remain at $1.00 per share.
Securities and other assets quoted in foreign currencies are valued in U.S. dollars based on the prevailing exchange rates on that day.
The Fund values securities and assets for which market quotations are unavailable at their “fair value,” which is described
below.
Even
when market quotations are available, they may be stale or not
representative of market value in the Adviser’s judgment (“unreliable”)
because the security is not traded frequently, trading on the security
ceased before the close of the trading market or issuer specific events occurred after the security ceased trading or because of the passage
of time between the close of the market on which the security trades and the close of the NYSE and when the Fund calculates its net asset
value. Issuer specific events may cause the last market quotation to be unreliable. Such events may include a merger or insolvency, events
that affect a geographical area or an industry segment, such as political events or natural disasters, or market events, such as a significant
movement in the U.S. market. Where
A-18 The
Invesco Funds
the Adviser
determines that the closing price of the security is stale or unreliable, the Adviser will value the security at its fair value.
A
fair value price is an estimated price that requires consideration of all appropriate factors, including indications of fair value available
from pricing services. Fair value pricing involves judgment and a Fund that uses fair value methodologies may value securities higher
or lower than another Fund using market quotations or its own fair value methodologies to price the same securities. Investors who purchase
or redeem Fund shares on days when the Fund is holding fair-valued securities may receive a greater or lesser number of shares, or higher
or lower redemption proceeds, than they would have received if the Fund had not fair-valued the security or had used a different methodology.
The
Board has designated the Adviser to perform the daily determination
of fair value prices in accordance with Board approved
policies and related procedures,
subject to the Board’s oversight. Fair value pricing methods
and pricing services can change from time to time.
The
intended effect of applying fair value pricing is to compute an NAV that
accurately reflects the value of a Fund’s portfolio at the time that the NAV is calculated. An additional intended effect is to
discourage those seeking to take advantage of arbitrage opportunities resulting from “stale” prices and to mitigate the dilutive
impact of any such arbitrage. However, the application of fair value pricing cannot eliminate the possibility that arbitrage opportunities
will exist.
Specific
types of securities are valued as follows:
Senior
Secured Floating Rate Loans and Senior Secured Floating Rate Debt
Securities. Senior secured floating rate loans and senior secured
floating rate debt securities are fair valued using evaluated quotes provided by an independent pricing service. Evaluated quotes provided
by the pricing service may reflect appropriate factors such as market quotes, ratings, tranche type, industry, company performance, spread,
individual trading characteristics, institution-size trading in similar groups of securities and other market data.
Domestic
Exchange Traded Equity Securities. Market quotations are generally
available and reliable for domestic exchange traded equity securities. If market quotations are not available or are unreliable, the Adviser
will value the security at fair value in good faith using the valuation policy approved by the Board and related procedures.
Foreign
Securities. If market quotations are available and reliable for
foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign
securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular
security and the close of the customary trading session on the NYSE events occur that are significant and may make the closing price unreliable,
the Fund may fair value the security. If an issuer specific event has occurred that the Adviser determines, in its judgment, is likely
to have affected the closing price of a foreign security, it will price the security at fair value. The Adviser also relies on a screening
process from a pricing vendor to indicate the degree of certainty, based on historical data, that the closing price in the principal market
where a foreign security trades is not the current market value as of the close of the NYSE. For foreign securities where the Adviser
believes, at the approved degree of certainty, that the price is not reflective of current market value, the Adviser will use the indication
of fair value from the pricing service to determine the fair value of the security. The pricing vendor, pricing methodology or degree
of certainty may change from time to time.
Fund
securities primarily traded on foreign markets may trade on days that
are not business days of the Fund. Because the net asset value of Fund shares is determined only on business days of the Fund, the value
of the portfolio securities of a Fund that invests in foreign securities may change on days when you will not be able to purchase or redeem
shares of the Fund.
Fixed
Income Securities. Fixed income securities, such as government,
corporate, asset-backed and municipal bonds, convertible securities, including high yield or junk bonds, and loans, generally are valued
on the basis of prices provided by independent pricing services. Prices provided by the pricing services may be determined without exclusive
reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in
similar
groups of securities, developments related to special securities, dividend rate, maturity and other market data. Pricing services generally
value fixed income securities assuming orderly transactions of institutional round lot size, but a Fund may hold or transact in the same
securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Prices received from pricing
services are fair value prices. In addition, if the price provided by the pricing service and independent quoted prices are unreliable,
the Adviser will fair value the security using the valuation policy approved by the Board and related procedures.
Short-term
Securities. Invesco Government Money Market Fund, Invesco Premier
Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio value all their securities at amortized
cost. Invesco Limited Term Municipal Income Fund values variable rate securities that have an unconditional demand or put feature exercisable
within seven days or less at par, which reflects the market value of such securities.
Futures
and Options. Futures contracts are valued at the final settlement
price set by the exchange on which they are principally traded. U.S.
exchange-traded options are valued at the mean between the last
bid and asked prices from the exchange on which they principally trade. Non-U.S. exchange-traded options are valued at the final settlement
price set by
the exchange on which they trade. Options not listed on an exchange and swaps generally are valued using pricing provided from independent
pricing services.
Swap
Agreements. Swap Agreements are fair valued using an evaluated
quote provided by an independent pricing service. Evaluated quotes provided by the pricing service are based on a model that may include
end of day net present values, spreads, ratings, industry and company performance.
Open-end
Funds. If a Fund invests in other open-end funds, other than open-end
funds that are exchange traded, the investing Fund will calculate its net asset value using the net asset value of the underlying fund
in which it invests, and the prospectuses for such open-end funds explain the circumstances under which they will use fair value pricing
and the effects of using fair value pricing.
Each
Fund, except for Invesco Government Money Market Fund, Invesco Premier
Portfolio and Invesco Premier U.S. Government Money Portfolio, generally determines the net asset value of its shares on each day the
NYSE is open for trading (a business day) as of approximately 4:00 p.m. Eastern Time (the customary close of regular trading) or earlier
in the case of a scheduled early close. In the event of an unscheduled early close of the NYSE, each Fund, except for Invesco Government
Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio, generally still will determine the net
asset value of its shares as of 4:00 p.m. Eastern Time on that business day. Portfolio securities traded on the NYSE would be valued at
their closing prices unless the Adviser determines
that a “fair value” adjustment is appropriate due to subsequent events occurring after an early close consistent with the
valuation policy approved
by the Board and related procedures. Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government
Money Portfolio will generally determine the net asset value of their shares at 5:30 p.m. Eastern Time on each business day. A business
day for Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio is any day
that (1) both the Federal Reserve Bank of New York and a Fund’s custodian are open for business and (2) the primary trading markets
for the Fund’s portfolio instruments are open and the Fund’s management believes there is an adequate market to meet purchase
and redemption requests. Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money
Portfolio are authorized not to open for trading on a day that is otherwise a business day if the Securities Industry and Financial Markets
Association (SIFMA) recommends that government securities dealers not open for trading; any such day will not be considered a business
day. Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio, Invesco
U.S. Government Money Portfolio also may close early on a business day if SIFMA recommends that government securities dealers close early.
If
A-19 The
Invesco Funds
Invesco
Government Money Market Fund, Invesco Premier Portfolio or Invesco Premier U.S. Government Money Portfolio uses its discretion to
close early on a business day, the Fund will calculate its net asset value as of the time of such closing Invesco Premier Portfolio and
Invesco U.S. Government Money Portfolio are authorized to not open for trading on a day that is otherwise a business day if the NYSE recommends
that government securities dealers not open for trading; any such day will not be considered a business day. Invesco Premier Portfolio
also may close early on a business day if the NYSE recommends that government securities dealers close early.
For
financial reporting purposes and shareholder transactions on the last
day of the fiscal quarter, transactions are normally accounted for on a trade date basis. For purposes of executing shareholder transactions
in the normal course of business (other than shareholder transactions at a fiscal period-end), each Fund’s portfolio securities
transactions are recorded no later than the first business day following the trade date.
The
Invesco Advantage International Fund, Invesco Balanced-Risk Allocation
Fund, Invesco Balanced-Risk Commodity Strategy Fund, Invesco Fundamental Alternatives Fund, Invesco Global Allocation Fund, Invesco Global
Strategic Income Fund, Invesco Gold & Special Minerals Fund, Invesco High Yield Bond Factor Fund, Invesco International Bond Fund
and Invesco Macro Allocation Strategy Fund may each invest up to 25% of their total assets in shares of their respective subsidiaries
(the Subsidiaries). The Subsidiaries offer to redeem all or a portion of their shares at the current net asset value per share every regular
business day. The value of shares of the Subsidiaries will fluctuate with the value of the respective Subsidiary’s portfolio investments.
The Subsidiaries price their portfolio investments pursuant to the same pricing and valuation methodologies and procedures used by the
Funds, which require, among other things, that each of the Subsidiaries’ portfolio investments be marked-to-market (that is, the
value on each of the Subsidiaries’ books changes) each business day to reflect changes in the market value of the investment.
Each
Fund’s current net asset value per share is made available on the Funds’
website at www.invesco.com/us.
Fair
Value Pricing
Securities
owned by a Fund (except Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio
and Invesco U.S. Government Money Portfolio) are to be valued at current market value if market quotations are readily available. All
other securities and assets of a Fund for which market quotations are not readily available are to be valued at fair value determined
in good faith consistent with the valuation policy approved by the Board and related procedures. An effect of fair value pricing may be
to reduce the ability of frequent traders to take advantage of arbitrage opportunities resulting from potentially “stale”
prices of portfolio holdings. However, it cannot eliminate the possibility of frequent trading.
The
price a Fund could receive upon the sale of any investment may differ
from the Adviser's valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair
valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions
(i.e., publicly traded company multiples, growth rate, time to exit), to determine a methodology that will result in a valuation that
the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value
from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and
the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the
investment.
Timing
of Orders
Each
Fund prices purchase, exchange and redemption orders at the net asset value next calculated by the Fund after the Fund’s transfer
agent, authorized agent or designee receives an order in good order for the Fund. Purchase, exchange and redemption orders must be received
prior to the close of business on a business day, as defined by the applicable Fund, to receive that day’s net asset value. Any
applicable sales charges are applied at the time an order is processed.
Currently,
certain financial intermediaries may serve as agents for the Funds
and accept orders on their behalf. Where a financial intermediary serves as agent, the order is priced at the Fund’s net asset value
next calculated after it is accepted by the financial intermediary. In such cases, if requested by a Fund, the financial intermediary
is responsible for providing information with regard to the time that such order for purchase, redemption or exchange was received. Orders
submitted through a financial intermediary that has not received authorization to accept orders on a Fund’s behalf are priced at
the Fund’s net asset value next calculated by the Fund after it receives the order from the financial intermediary and accepts it,
which may not occur on the day submitted to the financial intermediary.
Additional
Information Regarding Deferred Tax Liability (only applicable to the Invesco Steelpath Funds)
In
calculating the Fund’s daily NAV, the Fund will, among other things, account for its deferred tax liability and/or asset balances.
As a result, any deferred tax liability and/or asset is reflected in the Fund’s daily NAV.
The
Fund will accrue a deferred income tax liability balance, at the U.S. federal
corporate income tax rate plus an estimated state and local income tax rate for its future tax liability associated with MLP distributions
considered to be a return of capital, as well as for its future tax liability associated with the capital appreciation of its investments.
The Fund’s current and deferred tax liability, if any, will depend upon the Fund’s net investment gains and losses and realized
and unrealized gains and losses on investments and therefore may vary greatly from year to year depending on the nature of the Fund’s
investments, the performance of those investments and general market conditions. Any deferred tax liability balance will reduce the Fund’s
NAV. Upon the Fund’s sale of an MLP security, the Fund may be liable for previously deferred taxes.
The
Fund will accrue, in accordance with generally accepted accounting principles,
a deferred tax asset balance, which reflects an estimate of the Fund’s future tax benefit associated with net operating losses and
unrealized losses. Any deferred tax asset balance will increase the Fund’s NAV. To the extent the Fund has a deferred tax asset
balance, the Fund will assess, in accordance with generally accepted accounting principles, whether a valuation allowance, which would
offset the value of some or all of the Fund’s deferred tax asset balance, is required. Pursuant to Financial Accounting Standards
Board Accounting Standards Codification 740 (FASB ASC 740), the Fund will assess a valuation allowance to reduce some or all of the deferred
tax asset balance if, based on the weight of all available evidence, both negative and positive, it is more likely than not that some
or all of the deferred tax asset will not be realized. The Fund will use judgment in considering the relative impact of negative and positive
evidence. The weight given to the potential effect of negative and positive evidence will be commensurate with the extent to which such
evidence can be objectively verified. The Fund’s assessment considers, among other matters, the nature, frequency and severity of
current and cumulative losses, the duration of statutory carry forward periods and the associated risk that operating loss and capital
loss carry forwards may be limited or expire unused, and unrealized gains and losses on investments. Consideration is also given to market
cycles, the severity and duration of historical deferred tax assets, the impact of redemptions, and the level of MLP distributions. The
Fund will assess whether a valuation allowance is required to offset some or all of any deferred tax asset in connection with the calculation
of the Fund’s NAV per share each day; however, to the extent the final valuation allowance differs from the estimates the Fund used
in calculating the Fund’s daily NAV, the application of such final valuation allowance could have a material impact on the Fund’s
NAV.
The
Fund’s deferred tax asset and/or liability balances are estimated using
estimates of effective tax rates expected to apply to taxable income in the years such balances are realized. The Fund will rely to some
extent on information provided by MLPs in determining the extent to which distributions received from MLPs constitute a return of capital,
which may not be provided to the Fund on a timely basis, to estimate the Fund’s deferred tax liability and/or asset balances for
purposes of financial statement reporting and determining its NAV. If such information is not
A-20 The
Invesco Funds
received
from such MLPs on a timely basis, the Fund will estimate the extent to which distributions received from MLPs constitute a return of capital
based on average historical tax characterization of distributions made by MLPs. The Fund’s estimates regarding its deferred tax
liability and/or asset balances are made in good faith; however, the daily estimate of the Fund’s deferred tax liability and/or
asset balances used to calculate the Fund’s NAV could vary dramatically from the Fund’s actual tax liability. Actual income
tax expense, if any, will be incurred over many years, depending on if and when investment gains and losses are realized, the then-current
basis of the Fund’s assets and other factors. As a result, the determination of the Fund’s actual tax liability may have a
material impact on the Fund’s NAV. The Fund’s daily NAV calculation will be based on then current estimates and assumptions
regarding the Fund’s deferred tax liability and/or asset balances and any applicable valuation allowance, based on all information
available to the Fund at such time. From time to time, the Fund may modify its estimates or assumptions regarding its deferred tax liability
and/or asset balances and any applicable valuation allowance as new information becomes available. Modifications of the Fund’s estimates
or assumptions regarding its deferred tax liability and/or asset balances and any applicable valuation allowance, changes in generally
accepted accounting principles or related guidance or interpretations thereof, limitations imposed on net operating losses (if any) and
changes in applicable tax law could result in increases or decreases in the Fund’s NAV per share, which could be material.
Taxes
(applicable to all Funds except for the Invesco SteelPath Funds and Invesco Master Loan Fund)
A
Fund intends to qualify each year as a regulated investment company (RIC) and, as such, is not subject to entity-level tax on the income
and gain it distributes to shareholders. If you are a taxable investor, dividends and distributions you receive from a Fund generally
are taxable to you whether you reinvest distributions in additional Fund shares or take them in cash. Every year, you will be sent information
showing the amount of dividends and distributions you received from a Fund during the prior calendar year. In addition, investors in taxable
accounts should be aware of the following basic tax points as supplemented below where relevant:
Fund Tax
Basics
◾
A
Fund earns income generally in the form of dividends or interest on its investments. This income, less expenses incurred in the operation
of a Fund, constitutes the Fund’s net investment income from which dividends may be paid to you. If you are a taxable investor,
distributions of net investment income generally are taxable to you as ordinary income.
◾
Distributions
of net short-term capital gains are taxable to you as ordinary income. A Fund with a high portfolio turnover rate (a measure of how frequently
assets within a Fund are bought and sold) is more likely to generate short-term capital gains than a Fund with a low portfolio turnover
rate.
◾
Distributions
of net long-term capital gains are taxable to you as long-term capital gains no matter how long you have owned your Fund shares.
◾
A
portion of income dividends paid by a Fund to you may be reported as qualified dividend income eligible for taxation by individual shareholders
at long-term capital gain rates, provided certain holding period requirements are met. These reduced rates generally are available for
dividends derived from a Fund’s investment in stocks of domestic corporations and qualified foreign corporations. In the case of
a Fund that invests primarily in debt securities, either none or only a nominal portion of the dividends paid by the Fund will be eligible
for taxation at these reduced rates.
◾
The
use of derivatives by a Fund may cause the Fund to realize higher amounts of ordinary income or short-term capital gain, distributions
from which are taxable to individual shareholders at ordinary income tax rates rather than at the more favorable tax rates for long-term
capital gain.
◾
Distributions
declared to shareholders with a record date in October, November or December—if paid to you by the end of January—are taxable
for federal income tax purposes as if received in December.
◾
Any
long-term or short-term capital gains realized on the sale or redemption of your Fund shares will be subject to federal income tax. For
tax
purposes an exchange of your shares for shares of another Fund is the same as a sale. An exchange occurs when the purchase of shares of
a Fund is made using the proceeds from a redemption of shares of another Fund and is effectuated on the same day as the redemption. Your
gain or loss is calculated by subtracting from the gross proceeds your cost basis. Gross proceeds and, for shares acquired on or after
January 1, 2012 and disposed of after that date, cost basis will be reported to you and the Internal Revenue Service (IRS). Cost
basis will be calculated using the Fund’s default method of average cost, unless you instruct the Fund to use a different calculation
method. As a service to you, the Fund will continue to provide to you (but not the IRS) cost basis information for shares acquired before
2012, when available, using the average cost method. Shareholders should carefully review the cost basis information provided by a Fund
and make any additional basis, holding period or other adjustments that are required when reporting these amounts on their federal income
tax returns. If you hold your Fund shares through a broker (or other nominee), please contact that broker (nominee) with respect to reporting
of cost basis and available elections for your account. For more information about the cost basis methods offered by Invesco, please refer
to the Tax Center located under the Account Access & Forms menu of our website at www.Invesco.com/us.
◾
The
conversion of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes
and no gain or loss will be reported on the transaction. This is true whether the conversion occurs automatically pursuant to the terms
of the class or is initiated by the shareholder.
◾
At
the time you purchase your Fund shares, the Fund’s net asset value may reflect undistributed income or undistributed capital gains.
A subsequent distribution to you of such amounts, although constituting a return of your investment, would be taxable. Buying shares in
a Fund just before it declares an income dividend or capital gains distribution is sometimes known as “buying a dividend.”
In addition, a Fund’s net asset value may, at any time, reflect net unrealized appreciation, which may result in future taxable
distributions to you.
◾
By
law, if you do not provide a Fund with your proper taxpayer identification number and certain required certifications, you may be subject
to backup withholding on any distributions of income, capital gains, or proceeds from the sale of your shares. A Fund also must withhold
if the IRS instructs it to do so. When withholding is required, the amount will be 24% of any distributions or proceeds paid.
◾
An
additional 3.8% Medicare tax is imposed on certain net investment income (including ordinary dividends and capital gain distributions
received from a Fund and net gains from redemptions or other taxable dispositions of Fund shares) of U.S. individuals, estates and trusts
to the extent that such person’s “modified adjusted gross income” (in the case of an individual) or “adjusted
gross income” (in the case of an estate or trust) exceeds a threshold amount. This Medicare tax, if applicable, is reported by you
on, and paid with, your federal income tax return.
◾
You
will not be required to include the portion of dividends paid by a Fund derived from interest on U.S. government obligations in your
gross income for purposes of personal and, in some cases, corporate income taxes in many state and local tax jurisdictions. The percentage
of dividends that constitutes dividends derived from interest on federal obligations will be determined annually. This percentage may
differ from the actual percentage of interest received by the Fund on federal obligations for the particular days on which you hold shares.
◾
Fund
distributions and gains from sale or exchange of your Fund shares generally are subject to state and local income taxes.
◾
If
a Fund qualifies to pass through to you the tax benefits from foreign taxes it pays on its investments, and elects to do so, then any
foreign taxes it pays on these investments may be passed through to you. You will then be required to include your pro-rata share of these
taxes in gross income, even though not actually received by you, and will be entitled either to deduct your share of these taxes in computing
your taxable income, or to claim a foreign tax credit for these taxes against your U.S. federal income tax.
A-21 The
Invesco Funds
◾
Foreign
investors should be aware that U.S. withholding, special certification requirements to avoid U.S. backup withholding and claim
any treaty benefits, and estate taxes may apply to an investment in a Fund.
◾
Under
the Foreign Account Tax Compliance Act (FATCA), a Fund will be required to withhold a 30% tax on income dividends made by the Fund to
certain foreign entities, referred to as foreign financial institutions or non-financial foreign entities, that fail to comply (or be
deemed compliant) with extensive reporting and withholding requirements designed to inform the U.S. Department of the Treasury of U.S.-owned
foreign investment accounts. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide otherwise (which
is not expected). A Fund may disclose the information that it receives from its shareholders to the IRS, non-U.S. taxing authorities or
other parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that is a shareholder
of a Fund fails to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.
◾
If
a Fund invests in an underlying fund taxed as a RIC, please see any relevant section below for more information regarding the Fund’s
investment in such underlying fund.
The
above discussion concerning the taxability of Fund dividends and distributions and of redemptions and exchanges of Fund shares is inapplicable
to investors holding shares through a tax-advantaged arrangement, such as Retirement and Benefit Plans or 529 college savings plans. Such
investors should refer to the applicable account documents/program description for that arrangement for more information regarding the
tax consequences of holding and redeeming Fund shares.
Funds
Investing in Municipal Securities
◾
You
will not be required to include the “exempt-interest” portion of dividends paid by the Fund in either your gross income for
federal income tax purposes or your net investment income subject to the additional 3.8% Medicare tax. You will be required to report
the receipt of exempt-interest dividends and other tax-exempt interest on your federal income tax returns. The percentage of dividends
that constitutes exempt-interest dividends will be determined annually. This percentage may differ from the actual percentage of exempt
interest received by the Fund for the particular days in which you hold shares.
◾
A
Fund may invest in municipal securities the interest on which constitutes an item of tax preference and could give rise to a federal alternative
minimum tax liability for noncorporate shareholders, unless such municipal securities were issued in 2009 or 2010.
◾
Exempt-interest
dividends from interest earned on municipal securities of a state, or its political subdivisions, generally are exempt from that state’s
personal income tax. Most states, however, do not grant tax-free treatment to interest from municipal securities of other states.
◾
A
Fund may invest a portion of its assets in securities that pay income that is not tax-exempt. To the extent that dividends paid by a Fund
are derived from taxable investments or realized capital gains, they will be taxable as ordinary income or long-term capital gains.
◾
A
Fund may distribute to you any market discount and net short-term capital gains from the sale of its portfolio securities. If you are
a taxable investor, Fund distributions from this income are taxable to you as ordinary income, and generally will neither qualify for
the dividends-received deduction in the case of corporate shareholders nor as qualified dividend income subject to reduced rates of taxation
in the case of noncorporate shareholders.
◾
Exempt-interest
dividends from a Fund are taken into account when determining the taxable portion of your social security or railroad retirement benefits,
may be subject to state and local income taxes, may affect the deductibility of interest on certain indebtedness, and may have other collateral
federal income tax consequences for you.
◾
There
are risks that: (a) a security issued as tax-exempt may be reclassified by the IRS or a state tax authority as taxable and/or (b) future
legislative,
administrative or court actions could adversely impact the qualification of income from a tax-exempt security as tax-free. Such reclassifications
or actions could cause interest from a security to become taxable, possibly retroactively, subjecting you to increased tax liability.
In addition, such reclassifications or actions could cause the value of a security, and therefore, the value of the Fund’s shares,
to decline.
Money
Market Funds
◾
A
Fund does not anticipate realizing any long-term capital gains.
◾
If
a Fund expects to maintain a stable net asset value of $1.00 per share, investors should not have any gain or loss on sale or exchange
of Fund shares (unless the investor incurs a liquidity fee on such sale or exchange). See “Liquidity Fees and Redemption Gates.”
◾
There
is some degree of uncertainty with respect to the tax treatment of liquidity fees received by a Fund, and such tax treatment may be the
subject of future IRS guidance. If a Fund receives liquidity fees, it will consider the appropriate tax treatment of such fees to the
Fund at such time.
◾
Unless
you choose to adopt a simplified “NAV method” of accounting (described below), any capital gain or loss on the sale or exchange
of Fund shares (as noted above) generally will be treated either as short-term if you held your Fund shares for one year or less, or long-term
if you held your Fund shares longer. If you elect to adopt the NAV method of accounting, rather than computing gain or loss on every taxable
disposition of Fund shares as described above, you would determine your gain or loss based on the change in the aggregate value of your
Fund shares during a computation period (such as your taxable year), reduced by your net investment (purchases minus sales) in those shares
during that period. Under the NAV method, any resulting net capital gain or loss would be treated as short-term capital gain or loss.
Funds
Investing in Real Estate Securities
◾
Because
of “noncash” expenses such as property depreciation, the cash flow of a REIT that owns properties will exceed its taxable
income. The REIT, and in turn a Fund, may distribute this excess cash to shareholders. Such a distribution is classified as a return of
capital. Return of capital distributions generally are not taxable to you. Your cost basis in your Fund shares will be decreased by the
amount of any return of capital. Any return of capital distributions in excess of your cost basis will be treated as capital gains.
◾
Dividends
paid to shareholders from the Funds’ investments in U.S. REITs generally will not qualify for taxation at long-term capital gain
rates applicable to qualified dividend income.
◾
The
Fund may derive “excess inclusion income” from certain equity interests in mortgage pooling vehicles either directly or through
an investment in a U.S. REIT. Please see the SAI for a discussion of the risks and special tax consequences to shareholders in the event
the Fund realizes excess inclusion income in excess of certain threshold amounts.
◾
Under
the Tax Cuts and Jobs Act, “qualified REIT dividends” (i.e., ordinary REIT dividends other than capital gain dividends and
portions of REIT dividends designated as qualified dividend income) are treated as eligible for a 20% deduction by noncorporate taxpayers.
The Fund may choose to report the special character of “qualified REIT dividends” to a shareholder, provided both the Fund
and a shareholder meet certain holding period requirements with respect to their shares.
◾
The
Fund’s foreign shareholders should see the SAI for a discussion of the risks and special tax consequences to them from a sale of
a U.S. real property interest by a REIT in which the Fund invests.
Funds
Investing in Partnerships
◾
Taxes,
penalties, and interest associated with an audit of a partnership
are generally required to be assessed and collected at the partnership level. Therefore, an adverse federal income tax audit of a partnership
that a Fund invests in (including MLPs taxed as partnerships) could result in the Fund being required to pay federal income tax. A Fund
may have little input in any audit asserted against a partnership and may be contractually or legally obligated to make payments in regard
to deficiencies asserted without the ability to put forward an independent defense. Accordingly,
A-22 The
Invesco Funds
even
if a partnership in which the Fund invests were to remain classified as a partnership (instead of as a corporation), it could be required
to pay additional taxes, interest and penalties as a result of an audit adjustment, and the Fund, as a direct or indirect partner of such
partnership, could be required to bear the economic burden of those taxes, interest and penalties, which would reduce the value of Fund
shares.
◾
Under
the Tax Cuts and Jobs Act “qualified publicly traded partnership income” is treated as eligible for a 20% deduction by noncorporate
taxpayers. The legislation does not contain a provision permitting a RIC, such as a Fund, to pass the special character of this income
through to its shareholders. It is uncertain whether a future technical corrections bill or regulations issued by the IRS will address
this issue to enable a Fund to pass through the special character of “qualified publicly traded partnership income” to its
shareholders.
◾
Some
amounts received by a Fund from the MLPs in which it invests likely will be treated as returns of capital to such Fund because of accelerated
deductions available to the MLPs. The receipt of returns of capital from the MLPs in which a Fund invests could cause some or all of the
Fund’s distributions to be classified as a return of capital. Return of capital distributions generally are not taxable to you.
Your cost basis in your Fund shares will be decreased by the amount of any return of capital. Any return of capital distributions in excess
of your cost basis will be treated as capital gains.
Funds
Investing in Commodities
◾
The
Funds’ strategies of investing through their respective Subsidiary in derivatives and other financially linked instruments whose
performance is expected to correspond to the commodity markets may cause the Funds to recognize more ordinary income and short-term capital
gains taxable as ordinary income than would be the case if the Funds invested directly in commodities.
◾
The
Funds must meet certain requirements under the Code for favorable tax treatment as a RIC, including asset diversification and income requirements.
The IRS has issued a revenue ruling which holds that income derived from commodity-linked swaps is not qualifying income for purposes
of the Income Requirement. In a subsequent revenue ruling, as well as in a number of follow-on private letter rulings (upon which only
the fund that received the private letter ruling may rely), the IRS provides that income from certain alternative investments which create
commodity exposure, such as certain commodity-linked or structured notes or a corporate subsidiary that invests in commodities, may be
considered qualifying income under the Code. However, the portion of such rulings relating to the treatment of a corporation as a regulated
investment company that require a determination of whether a financial instrument or position is a security under section 2(a)(36) of
the 1940 Act was revoked because of changes in the IRS’s position.
(A financial instrument or position that constitutes a security
under section 2(a)(36) of the 1940 Act generates qualifying income for a corporation taxed as a regulated investment company.) The Funds
intend to treat the income each derives from commodity-linked notes as qualifying income based on an opinion from counsel confirming that
income from such investments should be qualifying income because such commodity-linked notes constitute securities under section 2(a)(36)
of the 1940 Act. Each Subsidiary will be classified for federal income tax purposes as a controlled foreign corporation (CFC) with respect
to the Fund. As such, the Fund will be required to include in its gross income each year amounts earned by the Subsidiary during that
year (“Subpart F” income), whether or not such earnings are distributed by the Subsidiary to the Fund (deemed inclusions).
Treasury Regulations also permit the Fund to treat such deemed inclusions of “Subpart F” income from the Subsidiary as qualifying
income to the Fund, even if the Subsidiary does not make a distribution of such income. Consequently, the Fund and the Subsidiary reserve
the right to rely on deemed inclusions being treated as qualifying income to the Fund consistent with recently released Treasury Regulations.
If, contrary to the opinion of counsel or other guidance issued by the IRS, the IRS were to determine that income from direct investment
in commodity-linked notes is non-qualifying, a Fund might fail to satisfy
the
income requirement. In lieu of disqualification, the Funds are permitted to pay a tax for certain failures to satisfy the asset diversification
or income requirements, which, in general, are limited to those due to reasonable cause and not willful neglect. The Funds intend to limit
their investments in their respective Subsidiary to no more than 25% of the value of each Fund’s total assets in order to satisfy
the asset diversification requirement.
Funds
Investing in Foreign Currencies
◾
The
Funds may realize gains from the sale or other disposition of foreign currencies (including but not limited to gains from options, futures
or forward contracts) derived from investing in securities or foreign currencies. The U.S. Treasury Department is authorized to issue
regulations on whether the realization of such foreign currency gains is qualified income for the Funds. If such regulations are issued,
each Fund may not qualify as a RIC and/or the Fund may change its investment policy. As of the date of this prospectus, no regulations
have been issued pursuant to this authorization. It is possible, however, that such regulations may be issued in the future. Additionally,
the IRS has not issued any guidance on how to apply the asset diversification test to such foreign currency positions. Thus, the IRS’
determination as to how to treat such foreign currency positions for purposes of satisfying the asset diversification test might differ
from that of each Fund resulting in the Fund’s failure to qualify as a RIC. In lieu of disqualification, each Fund is permitted
to pay a tax for certain failures to satisfy the asset diversification or income requirements, which, in general, are limited to those
due to reasonable cause and not willful neglect.
◾
The
Funds’ transactions in foreign currencies may give rise to ordinary income or loss to the extent such income or loss results from
fluctuations in the value of the foreign currency concerned. This treatment could increase or decrease the Funds' ordinary income distributions
to you, and may cause some or all of the Funds' previously distributed income to be classified as a return of capital. Return of capital
distributions generally are not taxable to you. Your cost basis in your Fund shares will be decreased by the amount of any return of capital.
Any return of capital distributions in excess of your cost basis will be treated as capital gains.
This
discussion of “Taxes” is for general information only and not
tax advice. All investors should consult their own tax advisers as to the federal, state, local and foreign tax provisions applicable
to them.
Taxes
(applicable to the Invesco SteelPath Funds
only)
Although
the Code generally provides that a RIC does not pay an entity-level income tax, provided that it distributes all or substantially all
of its income, the Fund is not and does not anticipate becoming eligible to elect to be treated as a RIC because most or substantially
all of the Fund’s investments will consist of investments in MLP securities. The RIC tax rules therefore have no application to
the Fund or to its shareholders. As a result, the Fund is treated as a regular corporation, or “C” corporation, for U.S. federal
income tax purposes, and generally is subject to U.S. federal income tax on its taxable income at the corporate income tax rate. In addition,
as a regular corporation, the Fund will be subject to state and local taxes by reason of its tax status and its investments in MLPs. Therefore,
the Fund may have to pay federal, multiple state, and local taxes, which would reduce the Fund’s cash available to make distributions
to shareholders. An estimate for federal, state, and local tax liabilities will reduce the fund’s net asset value. The extent to
which the Fund is required to pay U.S. federal, state or local corporate income, franchise or other corporate taxes could materially reduce
the Fund’s cash available to make distributions to shareholders. In addition, investors in taxable accounts should be aware of the
following basic tax points as supplemented below where relevant:
Fund
Tax Basics
◾
The
Fund intends to invest a significant portion of its assets in MLPs, which are generally treated as partnerships for U.S. federal income
tax purposes. To the extent that the Fund invests in equity securities of an MLP, the Fund will be a partner in such MLP. Accordingly,
the Fund will be
A-23 The
Invesco Funds
required
to take into account the Fund’s allocable share of the income, gains, losses, deductions, and credits recognized by each such MLP,
regardless of whether the MLP distributes cash to the Fund. MLP distributions to partners, such as the Fund, are not taxable unless the
cash amount (or in certain cases, the fair market value of marketable securities) distributed exceeds the Fund’s basis in its MLP
interest. The Fund expects that the cash distributions it will receive with respect to its investments in equity securities of MLPs will
exceed the net taxable income allocated to the Fund from such MLPs because of tax deductions such as depreciation, amortization and depletion
that will be allocated to the Fund from the MLPs. No assurance, however, can be given in this regard. If this expectation is not realized,
the Fund will have a larger corporate income tax expense than expected, which will result in less cash available for distribution to shareholders.
◾
The
Fund will recognize gain or loss on the sale, exchange or other taxable disposition of its portfolio assets, including equity securities
of MLPs, equal to the difference between the amount realized by the Fund on the sale, exchange or other taxable disposition and the Fund’s
adjusted tax basis in such assets. Any such gain will be subject to U.S. federal income tax at the corporate income tax rate, regardless
of how long the Fund has held such assets since preferential capital gain rates do not apply to regular corporations such as the Fund.
The amount realized by the Fund in any case generally will be the amount paid by the purchaser of the assets plus, in the case of MLP
equity securities, the Fund’s allocable share, if any, of the MLP’s debt that will be allocated to the purchaser as a result
of the sale, exchange or other taxable disposition. The Fund’s tax basis in its equity securities in an MLP generally is equal to
the amount the Fund paid for the equity securities, (i) increased by the Fund’s allocable share of the MLP’s net taxable income
and certain MLP debt, if any, and (ii) decreased by the Fund’s allocable share of the MLP’s net losses and any distributions
received by the Fund from the MLP. Although any distribution by an MLP to the Fund in excess of the Fund’s allocable share of such
MLP’s net taxable income may create a temporary economic benefit to the Fund, net of a deferred tax liability, such distribution
will decrease the Fund’s tax basis in its MLP investment and will therefore increase the amount of gain (or decrease the amount
of loss) that will be recognized on the sale of an equity security in the MLP by the Fund. To the extent that the Fund has a net capital
loss in any year, the net capital loss can be carried back three taxable years and forward five taxable years to reduce the Fund’s
capital gains in such years. In the event a capital loss carryover cannot be utilized in the carryover periods, the Fund’s federal
income tax liability may be higher than expected, which will result in less cash available to distribute to shareholders.
◾
Distributions
by the Fund of cash or property in respect of the shares (other than certain distributions in redemption of shares) will be treated as
dividends for U.S. federal income tax purposes to the extent paid from the Fund’s current or accumulated earnings and profits (as
determined under U.S. federal income tax principles). Generally, the Fund’s earnings and profits are computed based upon the Fund’s
taxable income (loss), with certain specified adjustments. Any such dividend likely will be eligible for the dividends-received deduction
if received by an otherwise qualifying corporate U.S. shareholder that meets certain holding period and other requirements for the dividends-received
deduction. Dividends paid by the Fund to certain non-corporate U.S. shareholders (including individuals), generally are eligible for U.S.
federal income taxation at the rates generally applicable to long-term capital gains for individuals provided that the U.S. shareholder
receiving the dividend satisfies applicable holding period and other requirements. Otherwise, dividends paid by the Fund to non-corporate
U.S. Shareholders (including individuals) will be taxable at ordinary income rates.
◾
If
the amount of a Fund distribution exceeds the Fund’s current and accumulated earnings and profits, such excess will be treated first
as a tax-deferred return of capital to the extent of, and in reduction of, a shareholder’s tax basis in the shares, and thereafter
as capital gain to the extent the shareholder held the shares as a capital asset. Any such capital gain will be long-term capital gain
if such shareholder has held the applicable shares for more than one year. The portion of the distribution
received
by a shareholder from the Fund that is treated as a return of capital will decrease the shareholder’s tax basis in his or her Fund
shares (but not below zero), which will result in an increase in the amount of gain (or decrease in the amount of loss) that will be recognized
by the shareholder for tax purposes on the later sale of such Fund shares.
◾
The
Fund anticipates that the cash distributions it will receive with respect to its investments in equity securities of MLPs and which it
will distribute to its shareholders will exceed the Fund’s current and accumulated earnings and profits. Accordingly, the Fund expects
that only a part of its distributions to shareholders with respect to the shares will be treated as dividends for U.S. federal income
tax purposes. No assurance, however, can be given in this regard.
◾
Special
rules may apply to the calculation of the Fund’s earnings and profits. For example, the Fund’s earnings and profits will be
calculated using the straight-line depreciation method rather than the accelerated depreciation method. This difference in treatment may,
for example, result in the Fund’s earnings and profits being higher than the Fund’s taxable income or loss in a particular
year if the MLPs in which the Fund invests calculate their income using accelerated depreciation. Because of these special earnings profits
rules, the Fund may make distributions in a particular year out of earnings and profits (treated as dividends) in excess of the amount
of the Fund’s taxable income or loss for such year, which means that a larger percentage of the Fund ’s distributions could
be taxable to shareholders as ordinary income instead of tax-deferred return of capital or capital gain.
◾
Shareholders
that receive distributions in shares rather than in cash will be treated for U.S. federal income tax purposes as having (i) received a
cash distribution equal to the fair market value of the shares received and (ii) reinvested such amount in shares.
◾
A
redemption of shares will be treated as a sale or exchange of such shares, provided the redemption is not essentially equivalent to a
dividend, is a substantially disproportionate redemption, is a complete redemption of a shareholder’s entire interest in the Fund,
or is in partial liquidation of such Fund. Redemptions that do not qualify for sale or exchange treatment will be treated as distributions
as described above. Upon a redemption treated as a sale or exchange under these rules, a shareholder generally will recognize capital
gain or loss equal to the difference between the adjusted tax basis of his or her shares and the amount received when they are sold.
◾
If
the Fund is required to sell portfolio securities to meet redemption requests, the Fund may recognize income and gains for U.S. federal,
state and local income and other tax purposes, which may result in the imposition of corporate income or other taxes on the Fund and may
increase the Fund’s current and accumulated earnings and profits, which will result in a greater portion of distributions to Fund
shareholders being treated as dividends. Any long-term or short-term capital gains realized on sale or redemption of your Fund shares
will be subject to federal income tax. For tax purposes an exchange of your shares for shares of another Fund is the same as a sale. An
exchange occurs when the purchase of shares of a Fund is made using the proceeds from a redemption of shares of another Fund and is effectuated
on the same day as the redemption. Your gain or loss is calculated by subtracting from the gross proceeds your cost basis. Gross proceeds
and, for shares acquired on or after January 1, 2012 and disposed of after that date, cost basis will be reported to you and the IRS.
Cost basis will be calculated using the Fund’s default method of first-in, first-out (FIFO), unless you instruct the Fund to use
a different calculation method. Shareholders should carefully review the cost basis information provided by a Fund and make any additional
basis, holding period or other adjustments that are required when reporting these amounts on their federal income tax returns. If you
hold your Fund shares through a broker (or other nominee), please contact that broker (nominee) with respect to reporting of cost basis
and available elections for your account. For more information about the cost basis methods offered by Invesco, please refer to the Tax
Center located under the Account Access & Forms menu of our website at www.invesco.com/us.
A-24 The
Invesco Funds
◾
The
conversion of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes
and no gain or loss will be reported on the transaction. This is true whether the conversion occurs automatically pursuant to the terms
of the class or is initiated by the shareholder.
◾
At
the time you purchase your Fund shares, the Fund’s net asset value may reflect undistributed income. A subsequent distribution to
you of such amounts, although constituting a return of your investment, would be taxable. Buying shares in a Fund just before it declares
an income dividend is sometimes known as “buying a dividend.” In addition, a Fund’s net asset value may, at any time,
reflect net unrealized appreciation, which may result in future taxable distributions to you.
◾
By
law, if you do not provide a Fund with your proper taxpayer identification number and certain required certifications, you may be subject
to backup withholding on any distributions of income, capital gains, or proceeds from the sale of your shares. A Fund also must withhold
if the IRS instructs it to do so. When withholding is required, the amount will be 24% of any distributions or proceeds paid.
◾
A
3.8% Medicare tax is imposed on certain net investment income (including ordinary dividends received from a Fund and net gains from redemptions
or other taxable dispositions of Fund shares) of U.S. individuals, estates and trusts to the extent that such person’s “modified
adjusted gross income” (in the case of an individual) or “adjusted gross income” (in the case of an estate or trust)
exceeds a threshold amount. This Medicare tax, if applicable, is reported by you on, and paid with, your federal income tax return.
◾
Fund
distributions and gains from sale or exchange of your Fund shares generally are subject to state and local income taxes.
◾
Foreign
investors should be aware that U.S. withholding, special certification requirements to avoid U.S. backup withholding and claim any treaty
benefits, and estate taxes may apply to an investment in a Fund.
◾
Under
the Foreign Account Tax Compliance Act (FATCA), a Fund will be required to withhold a 30% tax on income dividends made by the Fund to
certain foreign entities, referred to as foreign financial institutions or non-financial foreign entities, that fail to comply (or be
deemed compliant) with extensive reporting and withholding requirements designed to inform the U.S. Department of the Treasury of U.S.-owned
foreign investment accounts. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide otherwise (which
is not expected). A Fund may disclose the information that it receives from its shareholders to the IRS, non-U.S. taxing authorities or
other parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that is a shareholder
of a Fund fails to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.
◾
Taxes,
penalties, and interest associated with an audit of a partnership are generally required to be assessed and collected at the partnership
level. Therefore, an adverse federal income tax audit of an MLP taxed as a partnership that the Fund invests in could result in the Fund
being required to pay federal income tax. The Fund may have little input in any audit asserted against an MLP and may be contractually
or legally obligated to make payments in regard to deficiencies asserted without the ability to put forward an independent defense. Accordingly,
even if an MLP in which the Fund invests were to remain classified as a partnership, it could be required to pay additional taxes, interest
and penalties as a result of an audit adjustment, and the Fund, as a direct or indirect partner of such MLP, could be required to bear
the economic burden of those taxes, interest and penalties, which would reduce the value of Fund shares.
◾
Under
the Tax Cuts and Jobs Act certain “qualified publicly traded partnership income” (e.g., certain income from certain of the
MLPs in which the Fund invests) is treated as eligible for a 20% deduction by noncorporate taxpayers. The Tax Cuts and Jobs Act does not
contain a provision permitting an entity, such as the Fund, to benefit from this
deduction
(since the Fund is taxed as a “C” corporation) or pass the special character of this income through to its shareholders. Qualified
publicly traded partnership income allocated to a noncorporate investor investing directly in an MLP might, however, be eligible for the
deduction.
The
above discussion concerning the taxability of Fund dividends and distributions
and of redemptions and exchanges of Fund shares is inapplicable to investors holding shares through a tax-advantaged arrangement, such
as Retirement and Benefit Plans or 529 college savings plans. Such investors should refer to the applicable account documents/program
description for that arrangement for more information regarding the tax consequences of holding and redeeming Fund shares.
This
discussion of “Taxes” is for general information only and not
tax advice. All investors should consult their own tax advisers as to the federal, state, local and foreign tax provisions applicable
to them.
Federal
Income Taxes (applicable to Invesco Master Loan Fund only)
United
States Taxes
The
Fund is classified as a partnership and will not be a regulated investment company for US federal income tax purposes. As a partnership,
the Fund is not a taxable entity for federal income tax purposes and, subject to the application of the partnership audit rules described
below, incurs no federal income tax liability. Each Investor is required to take into account its proportionate share of items of income,
gain, loss and deduction of the partnership in computing its federal income tax liability regardless of whether or not cash or property
distributions are then made by the Fund. Following the close of the Fund’s taxable year end, Investors will receive a tax statement
entitled Schedule K-1 Partner’s Share of Income, Deductions, Credits, etc., which reports the tax status of their distributive share
of the Fund’s items for the previous year.
Taxation
of Distributions, Sales and Exchanges
In
general, distributions of money by the Fund to an Investor will represent a non-taxable return of capital up to the amount of an Investor’s
adjusted tax basis in its shares. An Investor will recognize gain to the extent that any money distributed by the Fund exceeds the Investor’s
adjusted tax basis in its shares. In the case of a non-taxable return of capital by the Fund to an Investor, other than in liquidation
of the Investor’s interest in the Fund, the tax basis of his shares will be reduced (but not below zero) and will result in an increase
in the amount of gain (or decrease in the amount of loss) that will be recognized by the Investor on the later sale of its shares. A distribution
in partial or complete redemption of your shares in the Fund is taxable as a sale or exchange only to the extent the amount of money received
exceeds the tax basis of your entire interest in the Fund. Any loss may be recognized only if you redeem your entire interest in the Fund
for money.
When
you sell shares of the Fund, you may have a capital gain or loss.
Derivatives
The
use of derivatives by the Fund may cause the Fund to realize higher amounts of ordinary income or short-term capital gain, allocations
of which are taxable to individual Investors at ordinary income tax rates rather than at the more favorable tax rates for long-term capital
gain. Changes in government regulation of derivative instruments could affect the character, timing and amount of the Fund’s taxable
income or gains, and may limit the Fund from using certain types of derivative instruments as part of its investment strategy.
Risk
of Audit of the Fund
Under
the partnership audit rules, which are generally applicable to tax years beginning after December 31, 2017, the Internal Revenue Service
(“IRS”) may collect any taxes resulting from audit adjustments to the Fund’s income tax returns (including any applicable
penalties and interest) directly from the Fund. In that case, current Investors would bear some or all of the
A-25 The
Invesco Funds
tax liability
resulting from such audit adjustment, even if they did not own interests in the Fund during the tax year under audit. The Fund may have
the ability to shift any such tax liability to the Investors in accordance with their interests in the Fund during the year under audit,
but there can be no assurance that the Fund will be able to do so under all circumstances. For taxable years not subject to the new audit
rules, items of Fund income, gain, loss, deduction and credit will be determined at the Fund level in a unified audit. NO REPRESENTATION
OR WARRANTY OF ANY KIND IS MADE WITH RESPECT TO THE TAXATION, DEDUCTIBILITY OR CAPITALIZATION OF ANY ITEM BY THE FUND OR INVESTOR. In
addition, the “partnership representative” (tax matters partner, for taxable years before the partnership audit rules become
effective) will have the sole authority to act on the Fund’s behalf for purposes of, among other things, federal income tax audits
and judicial review of administrative adjustments by the IRS, and any such actions will be binding on the Fund and all of the Investors.
Unrelated
Business Taxable Income
An
allocable share of a tax-exempt Investor’s income will be “unrelated business taxable income” (“UBTI”) to
the extent that the Fund borrows money to acquire property or invests in assets that produce UBTI.
Medicare
Tax
An
additional 3.8% Medicare tax is imposed on certain net investment income of US individuals, estates and trusts to the extent that such
person’s “modified adjusted gross income” (in the case of an individual) or “adjusted gross income” (in
the case of an estate or trust) exceeds a threshold amount. “Net investment income,” for these purposes, means investment
income (including (i) net gains from the taxable disposition of shares of a Fund to the extent the net gain would be taken into account
by the Investor if the Fund sold all of its property for fair market value immediately before the disposition of the shares of the Fund,
and (ii) an allocable share of a Fund’s interest, dividends and net gains) reduced by the deductions properly allocable to such
income. This Medicare tax, if applicable, is reported by Investors on, and paid with, the Investor’s federal income tax return.
State,
Local and Non-US Tax Matters
An
Investor’s distributive share of the Fund’s income, and gains from the sale or exchange of an Investor’s Fund shares,
generally are subject to state and local taxes in the jurisdiction in which the Investor resides or is otherwise subject to tax.
Prospective
investors should consider their individual state and local tax consequences
of an investment in the Fund.
Tax
Considerations for Non-US Investors
If,
as anticipated, the Fund is not deemed to be engaged in a US trade or business, the Fund generally will be required to withhold tax on
the distributive share of certain items of gross income from US sources allocated to non-US Investors at a 30% (or lower treaty) rate.
Certain categories of income, including portfolio interest, are not subject to US withholding tax. Capital gains (other than gain realized
on disposition of US real property interests) are not subject to US withholding tax unless the non-US Investor is a nonresident alien
individual present in the United States for a period or periods aggregating 183 days or more during the taxable year. If, on the other
hand, the Fund derives income which is effectively connected with a US trade or business carried on by the Fund, this 30% tax will not
apply to such effectively connected income of the Fund, and the Fund generally will be required to withhold tax from the amount of effectively
connected income allocable to non-US Investors at the highest rate of tax applicable to US residents, and non-US Investors generally would
be required to file US income tax returns and be subject to US income tax on a net basis. Gain or loss on a sale of shares will be treated
as effectively connected with a U.S. trade or business to the extent that a foreign corporation or foreign individual that owns the shares
(whether directly or indirectly through other partnerships) would have had effectively connected gain or loss had the partnership sold
its underlying assets and applicable US
withholding
tax will apply. Non-US Investors may be subject to US estate tax and are subject to special US tax certification requirements.
Other
Reporting and Withholding Requirements
Under
the Foreign Account Tax Compliance Act (“FATCA”), the Fund will be required to withhold at a 30% rate on certain US source
payments (such as interest and dividends) to certain Investors if the Investor fails to provide the Fund with the information which identifies
its direct and indirect US ownership. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide otherwise (which
is not expected). A Fund may disclose the information that it receives from an Investor to the IRS, non-US taxing authorities or other
parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that is an Investor fails
to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.
For
a more complete discussion of the federal income tax consequences
of investing in the Fund, see the Statement of Additional Information.
This
discussion of “Federal Income Taxes” is not intended or written
to be used as tax advice. Because everyone’s tax situation is unique, Investors should consult their tax professional about federal,
state, local and foreign tax consequences before making an investment in the Fund.
Payments
to Financial Intermediaries – All Share Classes except Class R6 shares
The
financial adviser or intermediary through which you purchase your shares may receive all or a portion of the sales charges and distribution
fees discussed above. In addition to those payments, Invesco Distributors and other Invesco Affiliates, may make additional cash payments
to financial intermediaries in connection with the promotion and sale of shares of the Funds. These additional cash payments may include
cash payments and other payments for certain marketing and support services. Invesco Affiliates make these payments from their own resources,
from Invesco Distributors’ retention of initial sales charges and from payments to Invesco Distributors made by the Funds under
their 12b-1 plans. In the context of this prospectus, “financial intermediaries” include any broker, dealer, bank (including
bank trust departments), registered investment adviser, financial planner, retirement plan administrator, insurance company and any other
financial intermediary having a selling, administration or similar agreement with Invesco Affiliates.
The
benefits Invesco Affiliates receive when they make these payments include,
among other things, placing the Funds on the financial intermediary’s fund sales system, and access (in some cases on a preferential
basis over other competitors) to individual members of the financial intermediary’s sales force or to the financial intermediary’s
management. These payments are sometimes referred to as “shelf space” payments because the payments compensate the financial
intermediary for including the Funds in its fund sales system (on its “sales shelf”). Invesco Affiliates compensate financial
intermediaries differently depending typically on the level and/or type of considerations provided by the financial intermediary. The
payments Invesco Affiliates make may be calculated based on sales of shares of the Funds (Sales-Based Payments), in which case the total
amount of such payments shall not exceed 0.25% (0.10% for Class R5 shares) of the public offering price of all shares sold by the financial
intermediary during the particular period. Payments may also be calculated based on the average daily net assets of the applicable Funds
attributable to that particular financial intermediary (Asset-Based Payments), in which case the total amount of such cash payments shall
not exceed 0.25% per annum of those assets during a defined period. Sales-Based Payments primarily create incentives to make new sales
of shares of the Funds and Asset-Based Payments primarily create incentives to retain previously sold shares of the Funds in investor
accounts. Invesco Affiliates
A-26 The
Invesco Funds
may pay a financial
intermediary either or both Sales-Based Payments and Asset-Based Payments.
Invesco
Affiliates are motivated to make these payments as they promote
the sale of Fund shares and the retention of those investments by clients of the financial intermediaries. To the extent financial intermediaries
sell more shares of the Funds or retain shares of the Funds in their clients’ accounts, Invesco Affiliates benefit from the incremental
management and other fees paid to Invesco Affiliates by the Funds with respect to those assets.
The
Funds’ transfer agent may make payments to certain financial intermediaries
for certain administrative services, including record keeping and sub-accounting of shareholder accounts pursuant to a sub-transfer agency,
omnibus account service or sub-accounting agreement. All fees payable by Invesco Affiliates under this category of services are charged
back to the Funds, subject to certain limitations approved by the Board.
You
can find further details in the Fund’s SAI about these payments and the
services provided by financial intermediaries. In certain cases these payments could be significant to the financial intermediaries. Your
financial adviser may charge you additional fees or commissions other than those disclosed in this prospectus. You can ask your financial
adviser about any payments it receives from Invesco Affiliates or the Funds, as well as about fees and/or commissions it charges.
Important
Notice Regarding Delivery of Security Holder Documents
To
reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address
(Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not
want the mailing of these documents to be combined with those for other members of your household, please contact the Funds’ transfer
agent at 800-959-4246 or contact your financial institution. The Funds’ transfer agent will begin sending you individual copies
for each account within thirty days after receiving your request.
A-27 The
Invesco Funds
Obtaining Additional Information
More information
may be obtained free of charge upon request. The SAI, a current version of which is on file with the SEC, contains more details about
the Fund and is incorporated by reference into this prospectus (is legally a part of this prospectus). Annual and semi-annual reports
to shareholders contain additional information about the Fund’s investments. The Fund’s annual report also discusses the market
conditions and investment strategies that significantly affected the Fund’s performance during its last fiscal year. The Fund also
files its complete schedule of portfolio holdings with the SEC for the 1st and 3rd quarters of each fiscal year as an exhibit to its reports
on Form N-PORT.
If
you have questions about an Invesco Fund or your account, or you wish to obtain a free copy of the Fund’s current SAI, annual or
semi-annual reports or Form N-PORT, please contact us.
|
By
Mail: |
Invesco
Investment Services, Inc.
P.O. Box 219078,
Kansas
City, MO 64121-9078 |
|
By
Telephone: |
(800)
959-4246 |
|
On
the Internet: |
You
can send us a request by e-mail or
download
prospectuses, SAIs, annual or
semi-annual
reports via our website:
www.invesco.com/us
|
Reports
and other information about the Fund are available on the EDGAR Database on the SEC's Internet site at http://www.sec.gov, and copies
of this information may be obtained, after paying a duplicating fee, by electronic request at the following e-mail address: publicinfo@sec.gov.
|
Invesco
NASDAQ 100 Index Fund
SEC 1940 Act file
number: 811-09913 |
|
invesco.com/us
|
NDQ-PRO-1
|
Prospectus
December
16,
2022
Class:
A (ORSTX ), Y (ORSYX ),
R6 (STMUX )
Invesco Short
Term Municipal 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.
Table of Contents
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A-25
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A-26
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A-27
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Back
Cover |
Invesco Short
Term Municipal Fund
The
Fund’s investment objective is to seek tax-free income.
This
table describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund.
The
table and Examples below do not reflect any transaction fees
that may be charged by financial intermediaries, or commissions that a shareholder may be required to pay directly to its financial intermediary
when buying or selling Class Y and Class R6 shares.
|
Class:
|
A
|
Y
|
R6
|
|
Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage
of
offering price) |
|
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|
| |||
|
Maximum
Deferred Sales Charge (Load) (as a percentage of original
purchase
price or redemption proceeds, whichever is less) |
|
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|
Class:
|
A
|
Y
|
R6
|
|
Management
Fees |
|
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| |||
|
Distribution
and/or Service (12b-1) Fees |
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|
Other
Expenses |
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|
Interest
|
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Total
Other Expenses |
|
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| |||
|
Total
Annual Fund Operating Expenses |
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| |||
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
Y |
$
|
$
|
$
|
$
|
|
| ||||
|
Class
R6 |
$
|
$
|
$
|
$
|
|
| ||||
Under
normal market conditions, and as a fundamental policy, the Fund invests at least 80% of its net assets (plus borrowings for investment
purposes) in securities the income from which, in the opinion of counsel to the issuer of each security, is exempt from regular federal
individual and, as applicable, the Fund’s state income tax. The policy stated in the foregoing sentence is a fundamental policy
of the Fund and may not be changed
without
shareholder approval of a majority of the Fund’s outstanding voting securities, as defined in the Investment Company Act of 1940,
as amended (Investment Company Act of 1940 or 1940 Act). In complying with this 80% investment requirement, the Fund may invest in derivatives
and other instruments that have economic characteristics similar to the Fund’s direct investments that are counted toward the 80%
investment requirement. The Fund will not invest more than 5% of its net assets in securities that produce income subject to the federal
alternative minimum tax (AMT).
The
Fund invests in municipal securities issued by the governments of states,
their political subdivisions (such as cities, towns, counties, agencies and authorities) and the District of Columbia, U.S. territories,
commonwealths and possessions or by their agencies, instrumentalities and authorities. These primarily include municipal bonds (long-term
(more than one-year) obligations), municipal notes (short-term obligations), interests in municipal leases, and tax-exempt commercial
paper. Municipal securities generally are classified as general or revenue obligations. General obligations are secured by the issuer’s
pledge of its full faith, credit and taxing power for the payment of principal and interest. Revenue obligations are bonds whose interest
is payable only from the revenues derived from a particular facility or class of facilities, or a specific excise tax or other revenue
source.
The
Fund seeks to maintain a dollar-weighted average effective portfolio maturity
of two years or less; however, it can buy securities that have short, intermediate or long maturities. A substantial percentage of the
securities the Fund buys may be “callable,” meaning that the issuer can redeem them before their maturity date. Because of
events affecting the bond markets and interest rate changes, the maturity of the portfolio might not meet that target for temporary periods.
The
Fund will not invest more than 5% of its total assets in securities that
are rated below investment grade (sometimes referred to as “junk bonds”). The Fund also will not invest more than 15% of its
total assets in securities rated below the top three investment grade categories. Each of these restrictions is applied at the time of
purchase and the Fund may continue to hold a security whose credit rating has been downgraded or, in the case of an unrated security,
after the Fund’s Adviser,
Invesco Advisers, Inc.
(Invesco or the Adviser), has changed its assessment of the security’s credit quality. As a result, credit rating downgrades or
other market fluctuations may cause the Fund’s holdings of these securities to exceed, at times significantly, these restrictions
for an extended period of time. Investment-grade-securities are rated in one of the four highest rating categories of nationally recognized
statistical rating organizations, such as S&P Global Ratings (or, in the case of unrated securities, determined by the Fund’s
Adviser to be comparable to securities rated investment-grade). The Fund also invests in unrated securities, in which case the Fund’s
Adviser internally assigns ratings to those securities, after assessing their credit quality and other factors, in investment-grade or
below-investment-grade categories similar to those of nationally recognized statistical rating organizations. There can be no assurance,
nor is it intended, that the Fund’s Adviser’s credit analysis process is consistent or comparable with the credit analysis
process used by a nationally recognized statistical rating organization. The Fund will not invest more than 5% of its total assets in
unrated securities. For purposes of the limitations described above regarding “unrated securities,” such securities do not
include securities that are not rated but that the Fund’s Adviser determines to be comparable to securities of the same issuer that
are rated by a nationally recognized statistical rating organization.
The
Fund will not invest more than 15% of its total assets in municipal securities
issued by the government of a single state, its political sub-divisions, or the District of Columbia, U.S. territory, commonwealth or
possession, or their agencies, instrumentalities and authorities. Notwithstanding this limitation, the Fund may invest up to 25% of its
total
1 Invesco Short
Term Municipal Fund
assets
in municipal securities issued by each of California, New York, and Texas, or their respective agencies, instrumentalities and authorities.
In addition, the Fund will not invest more than 15% of its total assets in a single sector, as determined by the Adviser. This limitation
does not apply to investments in the general obligations sector.
The
Fund can invest in derivative instruments, including futures contracts.
The Fund can use futures contracts, including interest rate futures, to reduce exposure to interest rate changes and to manage duration.
The
Fund may invest up to 20% of its net assets (plus borrowings for investment
purposes) in investments that generate income subject to income taxes. Taxable investments include
many of the types of securities the Fund would buy for temporary
defensive purposes. The Fund does not anticipate investing substantial amounts of its assets in taxable investments under normal market
conditions or as part of its normal trading strategies and policies.
To
the extent the Fund invests in pre-refunded municipal securities collateralized
by U.S. government securities, the Fund may treat those securities as investment-grade (AAA) securities even if the issuer itself has
a below-investment-grade rating.
In
selecting investments for the Fund, the portfolio managers generally look
for high current income; favorable credit characteristics; a wide range of issuers including different municipalities, agencies, sectors
and revenue sources; unrated bonds or securities of smaller issuers that might be overlooked by other investors; and special situations
that may offer high current income or opportunities for value. The portfolio managers may consider selling a security if any of these
factors no longer applies, but are not required to do so.
In
attempting to meet its investment objective or to manage subscription
and redemption requests, the Fund engages in active and frequent trading of portfolio securities.
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, natural or environmental disasters, widespread disease or other public health issues, war, military conflict, acts of terrorism
or adverse investor sentiment generally. 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.
Debt
Securities Risk. The prices of debt securities held by the Fund
will be affected by changes in interest rates, the creditworthiness of the issuer and other factors. An increase in prevailing interest
rates typically causes the value of existing debt securities to fall and often has a greater impact on longer-duration debt securities
and higher quality debt securities. Falling interest rates will cause the Fund to reinvest the proceeds of debt securities that have been
repaid by the issuer at lower interest rates. Falling interest rates may also reduce the Fund’s distributable income because interest
payments on floating rate debt instruments held by the Fund will decline. The Fund could lose money on investments in debt securities
if the issuer or borrower fails to meet its obligations to make interest payments and/or to
repay
principal in a timely manner. Changes in an issuer’s financial strength, the market’s perception of such strength or in the
credit rating of the issuer or the security may affect the value of debt securities. The Adviser’s credit analysis may fail to anticipate
such changes, which could result in buying a debt security at an inopportune time or failing to sell a debt security in advance of a price
decline or other credit event.
Municipal
Securities Risk. The risk of a municipal obligation generally depends
on the financial and credit status of the issuer. Constitutional amendments, legislative enactments, executive orders, administrative
regulations, voter initiatives, and the issuer’s regional economic conditions may affect the municipal security’s value, interest
payments, repayment of principal and the Fund’s ability to sell the security. Failure of a municipal security issuer to comply with
applicable tax requirements may make income paid thereon taxable, resulting in a decline in the security’s value. In addition, there
could be changes in applicable tax laws or tax treatments that reduce or eliminate the current federal income tax exemption on municipal
securities or otherwise adversely affect the current federal or state tax status of municipal securities.
Shorter-Term
Securities Risk. Normally, when interest rates change, the values
of shorter-term debt securities change less than the values of securities with longer maturities. The Fund tries to reduce the volatility
of its share prices by seeking to maintain a shorter average effective portfolio maturity. However, shorter-term securities may have lower
yields than longer-term securities. Shorter-term securities are also subject to extension and reinvestment risk. The Fund is subject to
extension risk when principal payments on a debt security occur at a slower rate than expected, potentially extending the average life
of the security. For securities with a call date in the near future, there is the risk that an increase in interest rates could result
in the issuer of that security choosing not to redeem the security as anticipated on the security’s call date. Such a decision by
the issuer may effectively change a short- or intermediate-term security into a longer term security, which could have the effect of locking
in a below-market interest rate on the security, increasing the security’s duration, making the security more vulnerable to interest
rate risk, reducing the security’s market value and increasing the Fund’s average effective portfolio maturity. Under such
circumstances, because the values of longer term securities generally fluctuate more widely in response to interest rate changes than
shorter term securities, the Fund’s volatility could increase. Reinvestment risk is the risk that if interest rates fall the Fund
may need to invest the proceeds of redeemed securities in securities with lower interest rates.
Municipal
Issuer Focus Risk. The municipal issuers in which the Fund invests
may be located in the same geographic area or may pay their interest obligations from revenue of similar projects, such as hospitals,
airports, utility systems and housing finance agencies. This may make the Fund’s investments more susceptible to similar social,
economic, political or regulatory occurrences, making the Fund more susceptible to experience a drop in its share price than if the Fund
had been more diversified across issuers that did not have similar characteristics.
Investing
in U.S. Territories, Commonwealths and Possessions Risk. The Fund
also invests in obligations of the governments of U.S. territories, commonwealths and possessions such as Puerto Rico, the U.S. Virgin
Islands, Guam and the Northern Mariana Islands to the extent such obligations are exempt from regular federal individual and state
income taxes. Accordingly, the Fund may be adversely affected by local political, economic, social and environmental conditions and developments,
including natural disasters, within these U.S. territories, commonwealths and possessions affecting the issuers of such obligations.
Certain
of the municipalities in which the Fund invests, including Puerto Rico,
currently experience significant financial difficulties, which may include default, insolvency or bankruptcy. As a result, securities
issued by certain of these municipalities are currently considered below-investment-grade securities. A credit rating downgrade relating
to, default by, or insolvency or bankruptcy of, one or several municipal security issuers of a state, territory,
2 Invesco Short
Term Municipal Fund
commonwealth
or possession in which the Fund invests could affect the payment of principal and interest, the market values and marketability of many
or all municipal obligations of such state, territory, commonwealth or possession.
High
Yield Debt Securities (Junk Bond) Risk. Investments in high yield
debt securities (“junk bonds”) and other lower-rated securities will subject the Fund to substantial risk of loss. These securities
are considered to be speculative with respect to the issuer’s ability to pay interest and principal when due, are more susceptible
to default or decline in market value and are less liquid than investment grade debt securities. Prices of high yield debt securities
tend to be very volatile.
Medium-
and Lower-Grade Municipal Securities Risk. Medium- and lower-grade
municipal securities generally involve more volatility and greater risks, including credit, market, liquidity and management risks, than
higher-grade securities. Furthermore, many issuers of medium- and lower-grade securities choose not to have a rating assigned to their
obligations. As such, the Fund’s portfolio may consist of a higher portion of unrated securities than an investment company investing
solely in higher-grade securities. Unrated securities may not be as attractive to as many buyers as are rated securities, which may have
the effect of limiting the Fund’s ability to sell such securities at the desired price.
Unrated
Securities Risk. The investment adviser may internally assign ratings
to securities that are not rated by any nationally recognized statistical rating organization, after assessing their credit quality and
other factors, in categories similar to those of nationally recognized statistical rating organizations. There can be no assurance, nor
is it intended, that the investment adviser’s credit analysis process is consistent or comparable with the credit analysis process
used by a nationally recognized statistical rating organization. Unrated securities are considered “investment-grade” or “below-investment-grade”
if judged by the investment adviser to be comparable to rated investment-grade or below-investment-grade securities. The investment adviser’s
rating does not constitute a guarantee of the credit quality. In addition, some unrated securities may not have an active trading market
or may trade less actively than rated securities, which means that unrated securities may be difficult to sell promptly at an acceptable
price.
Rule
144A Securities and Other Exempt Securities Risk. The market for
Rule 144A and other securities exempt from certain registration requirements typically is less active than the market for publicly-traded
securities. Rule 144A and other exempt securities, which are also known as privately issued securities, carry the risk that their liquidity
may become impaired and the Fund may be unable to dispose of the securities at a desirable time or price.
Variable-Rate
Demand Notes Risk. The absence of an active secondary market for
certain variable and floating rate notes could make it difficult to dispose of these instruments, which could result in a loss.
Zero
Coupon or Pay-In-Kind Securities Risk. The value, interest rates,
and liquidity of non-cash paying instruments, such as zero coupon and pay-in-kind securities, are subject to greater fluctuation than
other types of securities. The higher yields and interest rates on pay-in-kind securities reflect the payment deferral and increased credit
risk associated with such instruments and that such investments may represent a higher credit risk than loans that periodically pay interest.
When-Issued,
Delayed Delivery and Forward Commitment Risks.
When-issued and delayed delivery transactions subject the Fund
to market risk because the value or yield of a security at delivery may be more or less than the purchase price or yield generally available
when delivery occurs, and counterparty risk because the Fund relies on the buyer or seller, as the case may be, to consummate the transaction.
These transactions also have a leveraging effect on the Fund because the Fund commits to purchase securities that it does not have to
pay for until a later date, which increases the Fund’s overall investment exposure and, as a result, its volatility.
Derivatives
Risk. The value of a derivative instrument depends largely on
(and is derived from) the value of an underlying security,
currency,
commodity,
interest rate,
index or
other asset
(each referred to as an underlying asset). In addition to risks
relating to the underlying assets, the use of derivatives may include other,
possibly greater, risks, including counterparty, leverage and liquidity
risks. Counterparty risk is the risk that the counterparty to the derivative contract will default on its obligation to pay the Fund the
amount owed or otherwise perform under the derivative contract.
Derivatives create leverage risk because they do not require payment
up front equal to the economic exposure created by holding a position in the derivative. As a result, an adverse change in the value of
the underlying asset could result in the Fund sustaining a loss that is substantially greater than the amount invested in the derivative
or the anticipated value of the underlying asset, which may make the Fund’s returns more volatile and increase the risk of loss.
Derivative instruments may also be less liquid than more traditional investments and the Fund may be unable to sell or close out its derivative
positions at a desirable time or price. This risk may be more acute under adverse market conditions, during which the Fund may be most
in need of liquidating its derivative positions. Derivatives may also be harder to value, less tax efficient and subject to changing government
regulation that could impact the Fund’s ability to use certain derivatives or their cost. Derivatives strategies may not always
be successful. For example, derivatives used for hedging or to gain or limit
exposure to a particular market
segment may not provide the expected benefits,
particularly during adverse market conditions.
Alternative
Minimum Tax Risk. A portion of the Fund’s otherwise tax-exempt
income may be taxable to those shareholders subject to the federal alternative minimum tax.
Taxability
Risk. The Fund’s investments in municipal securities rely
on the opinion of the issuer’s bond counsel that the interest paid on those securities will not be subject to federal income tax.
Tax opinions are generally provided at the time the municipal security is initially issued. However, tax opinions are not binding on the
Internal Revenue Service or any court, and after the Fund buys a security, the Internal Revenue Service or a court may determine that
a bond issued as tax-exempt should in fact be taxable and the Fund’s dividends with respect to that bond might be subject to federal
income tax. In addition, income from tax-exempt municipal securities could be declared taxable because of unfavorable changes in tax laws,
adverse interpretations by the Internal Revenue Service or a court, or the non-compliant conduct of a bond issuer.
Changing
Fixed Income Market Conditions Risk. Increases in the federal funds
and equivalent foreign rates or other changes to monetary policy or regulatory actions may expose fixed income markets to heightened volatility
and reduced liquidity for certain fixed income investments, particularly those with longer maturities. It is difficult to predict the
impact of interest rate changes on various markets. In addition, decreases in fixed income dealer market-making capacity may also potentially
lead to heightened volatility and reduced liquidity in the fixed income markets. As a result, the value of the Fund’s investments
and share price may decline. Changes in central bank policies could also result in higher than normal redemptions by shareholders, which
could potentially increase the Fund’s portfolio turnover rate and transaction costs.
Financial
Markets Regulatory Risk. Policy changes by the U.S. government
or its regulatory agencies and political events within the U.S. and abroad may, among other things, affect investor and consumer confidence
and increase volatility in the financial markets, perhaps suddenly and to a significant degree, which may adversely impact the Fund’s
operations, universe of potential investment options, and return potential.
Management
Risk. The Fund is actively managed and depends heavily on the Adviser’s
judgment about markets, interest rates or the attractiveness, relative values, liquidity, or potential appreciation of particular investments
made for the Fund’s portfolio. The Fund could experience losses if these judgments prove to be incorrect. Additionally, legislative,
regulatory, or tax developments may adversely affect management of the Fund and, therefore, the ability of the Fund to achieve its investment
objective.
3 Invesco Short
Term Municipal Fund
Active
Trading Risk. Active trading of portfolio securities may result
in added expenses, a lower return and increased tax liability.
Fund
performance reflects any applicable fee waivers and expense reimbursements.
Performance returns would be lower without applicable fee waivers and expense reimbursements.
Updated
performance information is available on the Fund’s website at www.invesco.com/us .
Annual Total Returns
|
Class
A |
Period
Ended |
Returns
|
|
|
|
-
|
|
|
|
|
|
|
|
-
|
Average Annual Total Returns (for the periods ended December 31, 2021)
|
|
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
Y |
|
|
|
|
|
| ||||
|
Class
R6 |
|
|
|
|
|
| ||||
|
S&P
Municipal Bond Short Index deduction
for fees, expenses or taxes) |
|
|
|
|
|
| ||||
1
Management
of the Fund
Investment
Adviser: Invesco Advisers, Inc.
|
Portfolio
Managers |
Title
|
Length
of Service on the Fund |
|
Michael
Magee |
Portfolio
Manager |
2021
|
|
| ||
|
Tim
O'Reilly |
Portfolio
Manager |
2019
|
|
| ||
|
Mark
Paris |
Portfolio
Manager |
2019
|
|
| ||
|
Rebecca
Setcavage, CFA |
Portfolio
Manager |
2019
|
|
| ||
|
Julius
Williams |
Portfolio
Manager |
2019
|
|
| ||
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 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 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 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 R6 shares, the minimum
initial investment 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 primarily are exempt from regular federal income tax. All or a portion of these distributions, however, may
be subject to the federal alternative minimum tax and state and local taxes. The Fund may also make distributions that are taxable to
you as ordinary income or capital gains.
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
4 Invesco Short
Term Municipal 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 tax-free income. The Fund’s investment objective may be changed by the Board of Trustees
(the Board) without shareholder approval.
Under
normal market conditions, and as a fundamental policy, the Fund invests
at least 80% of its net assets (plus borrowings for investment purposes) in securities the income from which, in the opinion of counsel
to the issuer of each security, is exempt from regular federal individual and, as applicable, the Fund’s state income tax. The policy
stated in the foregoing sentence is a fundamental policy of the Fund and may not be changed without shareholder approval of a majority
of the Fund’s outstanding voting securities, as defined in the Investment Company Act of 1940. In complying with this 80% investment
requirement, the Fund may invest in derivatives and other instruments that have economic characteristics similar to the Fund’s direct
investments that are counted toward the 80% investment requirement. The Fund will not invest more than 5% of its net assets in securities
that produce income subject to the federal alternative minimum tax (AMT).
The
Fund invests in municipal securities issued by the governments of states,
their political subdivisions (such as cities, towns, counties, agencies and authorities) and the District of Columbia, U.S. territories,
commonwealths and possessions or by their agencies, instrumentalities and authorities. These primarily include municipal bonds (long-term
(more than one-year) obligations), municipal notes (short-term obligations), interests in municipal leases, and tax-exempt commercial
paper. Municipal securities generally are classified as general or revenue obligations. General obligations are secured by the issuer’s
pledge of its full faith, credit and taxing power for the payment of principal and interest. Revenue obligations are bonds whose interest
is payable only from the revenues derived from a particular facility or class of facilities, or a specific excise tax or other revenue
source.
The
Fund seeks to maintain a dollar-weighted average effective portfolio maturity
of two years or less; however, it can buy securities that have short, intermediate or long maturities. A substantial percentage of the
securities the Fund buys may be “callable,” meaning that the issuer can redeem them before their maturity date. Because of
events affecting the bond markets and interest rate changes, the maturity of the portfolio might not meet that target for temporary periods.
The
Fund will not invest more than 5% of its total assets in securities that
are rated below investment grade (sometimes referred to as “junk bonds”). The Fund also will not invest more than 15% of its
total assets in securities rated below the top three investment grade categories. Each of these restrictions is applied at the time of
purchase and the Fund may continue to hold a security whose credit rating has been downgraded or, in the case of an unrated security,
after the Fund’s Adviser has changed its assessment of the security’s credit quality. As a result, credit rating downgrades
or other market fluctuations may cause the Fund’s holdings of these securities to exceed, at times significantly, these restrictions
for an extended period of time. Investment-grade-securities are rated in one of the four highest rating categories of nationally recognized
statistical rating organizations, such as S&P Global Ratings (or, in the case of unrated securities, determined by the Fund’s
Adviser to be comparable to securities rated investment-grade). The Fund also invests in unrated securities, in which case the Fund’s
Adviser internally assigns ratings to those securities, after assessing their credit quality and other factors, in investment-grade or
below-investment-grade categories similar to those of nationally recognized
statistical
rating organizations. There can be no assurance, nor is it intended, that the Fund’s Adviser’s credit analysis process is
consistent or comparable with the credit analysis process used by a nationally recognized statistical rating organization. The Fund will
not invest more than 5% of its total assets in unrated securities. For purposes of the limitations described above regarding “unrated
securities,” such securities do not include securities that are not rated but that the Fund’s Adviser determines to be comparable
to securities of the same issuer that are rated by a nationally recognized statistical rating organization.
The
Fund will not invest more than 15% of its total assets in municipal securities
issued by the government of a single state, its political sub-divisions, or the District of Columbia, U.S. territory, commonwealth or
possession, or their agencies, instrumentalities and authorities. Notwithstanding this limitation, the Fund may invest up to 25% of its
total assets in municipal securities issued by each of California, New York, and Texas, or their respective agencies, instrumentalities
and authorities. In addition, the Fund will not invest more than 15% of its total assets in a single sector, as determined by the Adviser.
This limitation does not apply to investments in the general obligations sector.
To
the extent the Fund invests in pre-refunded municipal securities collateralized
by U.S. government securities, the Fund may treat those securities as investment-grade (AAA) securities even if the issuer itself has
a below-investment-grade rating.
In
selecting investments for the Fund, the portfolio managers generally look
for high current income; favorable credit characteristics; a wide range of issuers including different municipalities, agencies, sectors
and revenue sources; unrated bonds or securities of smaller issuers that might be overlooked by other investors; and special situations
that may offer high current income or opportunities for value. The portfolio managers may consider selling a security if any of these
factors no longer applies, but are not required to do so.
The
Fund may invest up to 25% of its total assets in tobacco settlement revenue
bonds.
The
Fund may write (that is, sell) call options. The Fund’s call writing is subject
to a restriction such that after the Fund writes a call, not more than 20% of the Fund’s total assets may be subject to calls.
The
Fund can invest in derivative instruments, including futures contracts.
The Fund can use futures contracts, including interest rate futures, to reduce exposure to interest rate changes and to manage duration.
A
futures contract is a standardized agreement between two parties to buy
or sell a specified quantity of an underlying asset at a specified price at a specified future time. The value of the futures contract
tends to increase and decrease in tandem with the value of the underlying asset. Futures contracts are bilateral agreements, with both
the purchaser and the seller equally obligated to complete the transaction. Depending on the terms of the particular contract, futures
contracts are settled by purchasing an offsetting contract, physically delivering the underlying asset on the settlement date or paying
a cash settlement amount on the settlement date.
The
Fund may invest up to 20% of its net assets (plus borrowings for investment
purposes) in investments that generate income subject to income taxes. Taxable investments include many of the types of securities the
Fund would buy for temporary defensive purposes. The Fund does not anticipate investing substantial amounts of its assets in taxable investments
under normal market conditions or as part of its normal trading strategies and policies.
The
Adviser may rely to some extent on credit ratings by nationally recognized
statistical rating organizations in evaluating the credit risk of securities selected for the Fund’s portfolio. Credit ratings evaluate
the expectation that scheduled interest and principal payments will be made in a timely manner. They do not reflect any judgment of market
risk. Ratings and market value may change from time to time, positively or negatively, to reflect new developments regarding the issuer.
5 Invesco Short
Term Municipal Fund
Rating
organizations might not change their credit rating of an issuer in a
timely manner to reflect events that could affect the issuer’s ability to make timely payments on its obligations. In selecting
securities for its portfolio and evaluating their income potential and credit risk, the Fund does not rely solely on ratings by rating
organizations but evaluates business, economic and other factors affecting issuers as well. Many factors affect an issuer’s ability
to make timely payments, and the credit risk of a particular security may change over time. The Adviser also may use its own research
and analysis to assess those risks. If a bond is insured, it will usually be rated by the rating organizations based on the financial
strength of the insurer. The rating categories are described in an appendix to the SAI.
Most
of the municipal securities the Fund buys are “investment-grade” at
the time of purchase. “Investment-grade” securities are those rated within the four highest rating categories of S&P Global
Ratings (S&P), Moody’s, Fitch or another nationally recognized statistical rating organization (or, in the case of unrated securities,
determined by the Adviser to be comparable to securities rated investment-grade). While securities rated within the fourth highest category
by S&P (meaning BBB+, BBB or BBB-) or by Moody’s (meaning Baa1, Baa2 or Baa3) are considered “investment-grade,”
they have some speculative characteristics. If two or more nationally recognized statistical rating organizations have assigned different
ratings to a security, the Adviser uses the highest rating assigned.
The
“effective” maturity of a security is not always the same as the stated
maturity date. A number of factors may cause the “effective” maturity to be shorter than the stated maturity. For example,
a bond’s effective maturity might be deemed to be shorter (for pricing and trading purposes) than its stated maturity as a result
of differences between its coupon interest rate and current market interest rates, whether the bond is callable (which means the issuer
can pay off the bond prior to its stated maturity), and other factors such as mandatory put provisions and scheduled sinking fund payments.
When interest rates change, securities that have an effective maturity that is shorter than their stated maturity tend to behave like
securities having those stated shorter maturity dates. The portfolio’s “average” effective maturity rate is measured
on a “dollar-weighted” basis, meaning that larger securities holdings have a greater effect on overall portfolio maturity
than smaller holdings.
To
seek to reduce volatility, the Fund will generally maintain a dollar-weighted
average effective maturity of two years or less. However, the Fund might not always be successful in maintaining its average effective
portfolio maturity at two years or less or in reducing the volatility of its share prices.
In
attempting to meet its investment objective or to manage subscription
and redemption requests, the Fund engages in active and frequent trading of portfolio securities.
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 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.
◾
COVID-19.
The “COVID-19” strain of coronavirus has resulted in instances of market closures and dislocations, extreme volatility, liquidity
constraints and increased trading costs. Efforts to contain its spread have resulted in travel restrictions, disruptions of healthcare
systems, business operations (including business closures) and supply chains, layoffs, lower consumer demand and employee availability,
and defaults and credit downgrades, among other significant economic impacts that have disrupted global economic activity across many
industries. Such economic impacts may exacerbate other pre-existing political, social and economic risks locally or globally and cause
general concern and uncertainty. The full economic impact and ongoing effects of COVID-19 (or other future epidemics or pandemics) at
the macro-level and on individual businesses are unpredictable and may result in significant and prolonged effects on the Fund’s
performance.
Debt
Securities Risk. The prices of debt securities held by the Fund
will be affected by changes in interest rates, the creditworthiness of the issuer and other factors. An increase in prevailing interest
rates typically causes the value of existing debt securities to fall and often has a greater impact on longer-duration debt securities
and higher quality debt securities. Falling interest rates will cause the Fund to reinvest the proceeds of debt securities that have been
repaid by the issuer at lower interest rates. Falling interest rates may also reduce the Fund’s distributable income because interest
payments on floating rate debt instruments held by the Fund will decline. The Fund could lose money on investments in debt securities
if the issuer or borrower fails to meet its obligations to make interest payments and/or to repay principal in a timely manner. If an
issuer seeks to restructure the terms of its borrowings or the Fund is required to seek recovery upon a
6 Invesco Short
Term Municipal Fund
default
in the payment of interest or the repayment of principal, the Fund may incur additional expenses. Changes in an issuer’s financial
strength, the market’s perception of such strength or in the credit rating of the issuer or the security may affect the value of
debt securities. The Adviser’s credit analysis may fail to anticipate such changes, which could result in buying a debt security
at an inopportune time or failing to sell a debt security in advance of a price decline or other credit event.
Municipal
Securities Risk. The risk of a municipal obligation generally depends
on the financial and credit status of the issuer. Constitutional amendments, legislative enactments, executive orders, administrative
regulations, voter initiatives, and the issuer’s regional economic conditions may affect the municipal security’s value, interest
payments, repayment of principal and the Fund’s ability to sell the security. Municipal obligations may be more susceptible to downgrades
or defaults during recessions or similar periods of economic stress. Municipal securities structured as revenue bonds are generally not
backed by the taxing power of the issuing municipality but rather the revenue from the particular project or entity for which the bonds
were issued. If the Internal Revenue Service determines that an issuer of a municipal security has not complied with applicable tax requirements,
interest from the security could be treated as taxable, which could result in a decline in the security’s value. In addition, there
could be changes in applicable tax laws or tax treatments that reduce or eliminate the current federal income tax exemption on municipal
securities or otherwise adversely affect the current federal or state tax status of municipal securities.
Shorter-Term
Securities Risk. Normally, when interest rates change, the values
of shorter-term debt securities change less than the values of securities with longer maturities. The Fund tries to reduce the volatility
of its share prices by seeking to maintain a shorter average effective portfolio maturity. However, shorter-term securities may have lower
yields than longer-term securities. Shorter-term securities are also subject to extension and reinvestment risk. The Fund is subject to
extension risk when principal payments on a debt security occur at a slower rate than expected, potentially extending the average life
of the security. For securities with a call date in the near future, there is the risk that an increase in interest rates could result
in the issuer of that security choosing not to redeem the security as anticipated on the security’s call date. Such a decision by
the issuer may effectively change a short- or intermediate-term security into a longer term security, which could have the effect of locking
in a below-market interest rate on the security, increasing the security’s duration, making the security more vulnerable to interest
rate risk, reducing the security’s market value and increasing the Fund’s average effective portfolio maturity. Under such
circumstances, because the values of longer term securities generally fluctuate more widely in response to interest rate changes than
shorter term securities, the Fund’s volatility could increase. Reinvestment risk is the risk that if interest rates fall the Fund
may need to invest the proceeds of redeemed securities in securities with lower interest rates.
Municipal
Issuer Focus Risk. The municipal issuers in which the Fund invests
may be located in the same geographic area or may pay their interest obligations from revenue of similar projects, such as hospitals,
airports, utility systems and housing finance agencies. This may make the Fund’s investments more susceptible to similar social,
economic, political or regulatory occurrences, making the Fund more susceptible to experience a drop in its share price than if the Fund
had been more diversified across issuers that did not have similar characteristics. From time to time, the Fund’s investments may
include securities that alone or together with securities held by other funds or accounts managed by the Adviser, represents a major portion
or all of an issue of municipal securities. Because there may be relatively few potential purchasers for such investments and, in some
cases, there may be contractual restrictions on resales, the Fund may find it more difficult to sell such securities at a desirable time
or price.
Investing
in U.S. Territories, Commonwealths and Possessions Risk. The Fund
also invests in obligations of the governments of U.S. territories, commonwealths and possessions such as Puerto Rico, the U.S. Virgin
Islands, Guam and the Northern Mariana Islands to the extent such obligations are exempt from regular federal individual and state income
taxes. Accordingly, the Fund may be adversely affected by local political, economic, social and environmental conditions and developments,
including natural disasters, within these U.S. territories, commonwealths and possessions affecting the issuers of such obligations. A
discussion of the special considerations relating to the Fund’s municipal obligations and other factors or economic conditions in
those territories, commonwealths or possessions is provided in an appendix to the SAI.
High
Yield Debt Securities (Junk Bond) Risk. The Fund’s investments
in high yield debt securities (commonly referred to as “junk bonds”) and other lower-rated securities will subject the Fund
to substantial risk of loss. These securities are considered to be speculative with respect to the issuer’s ability to pay interest
and principal when due and are more susceptible to default or decline in market value due to adverse economic, regulatory, political or
company developments than higher rated or investment grade securities. Prices of high yield debt securities tend to be very volatile.
These securities are less liquid than investment grade debt securities and may be difficult to sell at a desirable time or price, particularly
in times of negative sentiment toward high yield securities.
Medium-
and Lower-Grade Municipal Securities Risk. Securities which are
in the medium- and lower-grade categories generally offer higher yields than are offered by higher-grade securities of similar maturity,
but they also generally involve more volatility and greater risks, such as greater credit risk, market risk, liquidity risk and management
risk. Furthermore, many issuers of medium- and lower-grade securities choose not to have a rating assigned to their obligations by any
nationally recognized statistical rating organization. As such, the Fund’s portfolio may consist of a higher portion of unrated
securities as compared with an investment company that invests solely in higher-grade securities. Unrated securities may not be as attractive
to as many buyers as are rated securities, a factor which may make unrated securities less able to be sold at a desirable time or price.
These factors may limit the ability of the Fund to sell such securities at the desired price
either to meet redemption requests or in response to changes in
the economy or the financial markets.
Unrated
Securities Risk. The investment adviser may internally assign ratings
to securities that are not rated by any nationally recognized statistical rating organization, after assessing their credit quality and
other factors, in categories similar to those of nationally recognized statistical rating organizations. There can be no assurance, nor
is it intended, that the investment adviser’s credit analysis process is consistent or comparable with the credit analysis process
used by a nationally recognized statistical rating organization. Unrated securities are considered “investment-grade” or “below-investment-grade”
if judged by the investment adviser to be comparable to rated investment-grade or below-investment-grade securities. The investment adviser’s
rating does not constitute a guarantee of the credit quality. In addition, some unrated securities may not have an active trading market
or may trade less actively than rated securities, which means that the Fund might have difficulty selling them promptly at an acceptable
price.
In
evaluating the credit quality of a particular security, whether rated or unrated,
the investment adviser will normally take into consideration a number of factors including, but not limited to, the financial resources
of the issuer, the underlying source of funds for debt service on a security, the issuer’s sensitivity to economic conditions and
trends, any operating history of the facility financed by the obligation, the degree of community support for the financed facility, the
capabilities of the issuer’s management, and regulatory factors affecting the issuer or the particular facility.
A
reduction in the rating of a security after the Fund buys it will not require
the Fund to dispose of the security. However, the investment adviser
7 Invesco Short
Term Municipal Fund
will evaluate
such downgraded securities to determine whether to keep them in the Fund’s portfolio.
Rule
144A Securities and Other Exempt Securities Risk. The Fund may
invest in Rule 144A securities and other types of exempt securities, which are not registered for sale pursuant to an exemption from registration
under the Securities Act of 1933, as amended. These securities are also known as privately issued securities, and typically may be resold
only to qualified institutional buyers, or in a privately negotiated transaction, or to a limited number of purchasers, or in limited
quantities after they have been held for a specified period of time and other conditions are met for an exemption from registration. Although
such securities may be determined to be liquid in accordance with the requirements of Rule 22e-4 under the Investment Company Act of 1940,
as amended, if there are an insufficient number of qualified institutional buyers interested in purchasing such securities at a particular
time, the Fund may have difficulty selling such securities at a desirable time or price. As a result, the Fund’s investment in such
securities may be subject to increased liquidity risk. In addition, the issuers of Rule 144A securities may require their qualified institutional
buyers (such as the Fund) to keep certain offering information confidential, which could adversely affect the ability of the Fund to sell
such securities.
Variable-Rate
Demand Notes Risk. The absence of an active secondary market for
certain variable and floating rate notes could make it difficult to dispose of these instruments, and a portfolio could suffer a loss
if the issuer defaults during periods in which a portfolio is not entitled to exercise its demand rights.
Zero
Coupon or Pay-In-Kind Securities Risk. Zero coupon and pay-in-kind
securities may be subject to greater fluctuation in value and less liquidity in the event of adverse market conditions than comparably
rated securities paying cash interest at regular interest payment periods. Prices on non-cash-paying instruments may be more sensitive
to changes in the issuer’s financial condition, fluctuation in interest rates and market demand/supply imbalances than cash-paying
securities with similar credit ratings, and thus may be more speculative. Investors may purchase zero coupon and pay-in-kind securities
at a price below the amount payable at maturity. Because such securities do not entitle the holder to any periodic payments of interest
prior to maturity, this prevents any reinvestment of interest payments at prevailing interest rates if prevailing interest rates rise.
The higher yields and interest rates on pay-in-kind securities reflect the payment deferral and increased credit risk associated with
such instruments and that such investments may represent a higher credit risk than coupon loans. Pay-in-kind securities may have a potential
variability in valuations because their continuing accruals require continuing judgments about the collectability of the deferred payments
and the value of any associated collateral. Special tax considerations are associated with investing in certain lower-grade securities,
such as zero coupon or pay-in-kind securities.
When-Issued,
Delayed Delivery and Forward Commitment Risks.
When-issued and delayed delivery transactions are subject to market
risk as the value or yield of a security at delivery may be more or less than the purchase price or the yield generally available on securities
when delivery occurs. In addition, the Fund is subject to counterparty risk because it relies on the buyer or seller, as the case may
be, to consummate the transaction, and failure by the counterparty to complete the transaction may result in the Fund missing the opportunity
of obtaining a price or yield considered to be advantageous. These transactions have a leveraging effect on the Fund because the Fund
commits to purchase securities that it does not have to pay for until a later date. These investments therefore increase the Fund’s
overall investment exposure and, as a result, its volatility. Typically, no income accrues on securities the Fund has committed to purchase
prior to the time delivery of the securities is made.
Derivatives
Risk. A derivative is an instrument whose value depends largely
on (and is derived from) the value of an underlying security, currency, commodity, interest rate, index or other asset (each referred
to as an underlying asset). In addition to risks relating to the underlying assets, the
use
of derivatives may include other, possibly greater, risks, which are described below.
◾
Counterparty
Risk.
Certain derivatives do not trade on an established exchange
(referred to as over-the-counter (OTC) derivatives)
and are simply financial contracts between the Fund and a counterparty.
When the Fund is owed money on an OTC derivative, the Fund is dependent on the counterparty to pay or, in some cases, deliver the underlying
asset, unless
the Fund can otherwise sell its derivative contract to a third party prior to its expiration. Many counterparties are financial institutions
such as banks and broker-dealers and their creditworthiness (and
ability to pay or perform) may be
negatively impacted by factors affecting financial institutions
generally. In addition, in the event that a counterparty becomes bankrupt or insolvent,
the Fund’s ability to recover the collateral that the Fund
has on deposit with the counterparty could be delayed or impaired. For derivatives traded on a centralized exchange, the
Fund generally is dependent upon the
solvency of the relevant exchange clearing house
(which acts as a guarantor for each contractual obligation under
such derivatives) for
payment on derivative instruments for which the Fund is owed money.
◾
Leverage
Risk. Many derivatives do not require a payment up front equal
to the economic exposure created by holding a position in the derivative, which creates a form of leverage. As a result, an adverse change
in the value of the underlying asset could result in the Fund sustaining a loss that is substantially greater than the amount invested
in the derivative or the anticipated value of the underlying asset. In addition, some derivatives have the potential for unlimited loss,
regardless of the size of the Fund’s initial investment. Leverage may therefore make the Fund’s returns more volatile and
increase the risk of loss. In certain market conditions,
losses on derivative instruments can grow larger while the value
of the Fund’s other assets fall, resulting
in the Fund’s derivative positions becoming a larger percentage of the Fund’s investments.
◾
Liquidity
Risk. There
is a smaller pool of buyers and sellers for certain derivatives,
particularly OTC derivatives,
than more traditional investments such as stocks. These buyers
and sellers are often financial institutions that may be unable or unwilling to buy or sell derivatives during times of financial or market
stress. Derivative instruments may therefore be less liquid than more traditional investments and the Fund may be unable to sell or exit
its derivative positions at a desirable time or price. This risk may be more acute under adverse market conditions, during which the Fund
may be most in need of liquidating its derivative positions. To the extent that the Fund is unable to exit a derivative position because
of market illiquidity, the Fund may not be able to prevent further losses of value
in its derivatives holdings and the liquidity of the Fund and its
ability to meet redemption requests may be impaired to the extent that a substantial portion of the Fund’s otherwise liquid assets
must be used as margin. Another consequence of illiquidity is that the Fund may be required to hold a derivative instrument to maturity
and take or make delivery of the underlying asset that the Adviser would otherwise avoid.
◾
Futures
Contracts Risk. The volatility of futures contracts prices has
been historically greater than the volatility of stocks and
bonds. The liquidity of the futures market depends on participants
entering into offsetting transactions rather than making or taking delivery. To the extent participants decide to make or take delivery,
liquidity in the futures market could be reduced. In addition, futures exchanges often impose a maximum permissible price movement on
each futures contract for each trading session. The Fund may
be
disadvantaged if it is prohibited from executing a trade outside
the daily permissible price movement.
◾
Other
Risks. Compared
to other types of
investments, derivatives
may be harder to value and may also be less tax efficient, as described
8 Invesco Short
Term Municipal Fund
under
the
“Taxes” section
of the prospectus. In addition, changes in government regulation of derivative instruments could affect the character,
timing and amount of the Fund’s taxable income or gains,
and may limit or prevent the Fund from using certain types of derivative instruments as a part of its investment strategy, which could
make the investment strategy more costly to implement or require the Fund to change its investment strategy. Derivatives strategies may
not always be successful. For example, to the extent that the Fund uses derivatives for hedging or to gain or limit exposure to a particular
market or market segment,
there may be imperfect correlation between the value of the derivative instrument and the value of the instrument being hedged or the
relevant market or market segment, in which case the Fund may not realize the intended benefits. There is also the risk that during adverse
market conditions, an instrument which would usually operate as a hedge provides no hedging benefits at all. The Fund’s use of derivatives
may be limited by the requirements for taxation of the Fund as a regulated investment company.
Alternative
Minimum Tax Risk. Although the interest received from municipal
securities generally is exempt from federal income tax, the Fund may invest all or a portion of its total assets in municipal securities
subject to the federal alternative minimum tax. Accordingly, investment in the Fund could cause shareholders to be subject to, or result
in an increased liability under, the federal alternative minimum tax.
Taxability
Risk. The Fund’s investments in municipal securities rely
on the opinion of the issuer’s bond counsel that the interest paid on those securities will not be subject to federal income tax.
Tax opinions are generally provided at the time the municipal security is initially issued. However, tax opinions are not binding on the
Internal Revenue Service or any court, and after the Fund buys a security, the Internal Revenue Service or a court may determine that
a bond issued as tax-exempt should in fact be taxable and the Fund’s dividends with respect to that bond might be subject to federal
income tax. In addition, income from tax-exempt municipal securities could be declared taxable because of unfavorable changes in tax laws,
adverse interpretations by the Internal Revenue Service or a court, or the non-compliant conduct of a bond issuer.
Changing
Fixed Income Market Conditions Risk. Increases in the federal funds
and equivalent foreign rates or other changes to monetary policy or regulatory actions may expose fixed income markets to heightened volatility
and reduced liquidity for certain fixed income investments, particularly those with longer maturities. It is difficult to predict the
impact of interest rate changes on various markets. In addition, decreases in fixed income dealer market-making capacity may also potentially
lead to heightened volatility and reduced liquidity in the fixed income markets. As a result, the value of the Fund’s investments
and share price may decline. Changes in central bank policies could also result in higher than normal redemptions by shareholders, which
could potentially increase the Fund’s portfolio turnover rate and transaction costs and potentially lower the Fund’s performance
returns.
Financial
Markets Regulatory Risk. Policy changes by the U.S. government
or its regulatory agencies and political events within the U.S. and abroad, changes to the monetary policy by the Federal Reserve or other
regulatory actions, the U.S. government’s inability at times to agree on a long-term budget and deficit reduction plan or other
legislation aimed at addressing financial or economic conditions, the threat of a federal government shutdown, and threats not to increase
or suspend the federal government’s debt limit, may affect investor and consumer confidence, increase volatility in the financial
markets, perhaps suddenly and to a significant degree, result in higher interest rates, and even raise concerns about the U.S. government’s
credit rating and ability to service its debt. Such changes and events may adversely impact the Fund’s operations, universe of potential
investment options, and return potential.
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.
Active
Trading Risk. Active trading of portfolio securities may result
in high brokerage costs, which may lower the Fund’s actual return. Active trading also may increase the proportion of the Fund’s
gains that are short term, which are taxed at a higher rate than long term gains.
Portfolio
Holdings
A description
of Fund policies and procedures with respect to the disclosure of Fund portfolio holdings is available in the SAI, which is available
at www.invesco.com/us.
Fund Management
The
Adviser(s)
Invesco
Advisers, Inc. serves as the Fund’s investment adviser. The Adviser manages the investment operations of the Fund as well as other
investment portfolios that encompass a broad range of investment objectives, and has agreed to perform or arrange for the performance
of the Fund’s day-to-day management. The Adviser is located at 1555 Peachtree Street, N.E., Atlanta, Georgia 30309. The Adviser,
as successor in interest to multiple investment advisers, has been an investment adviser since 1976.
Sub-Advisers.
Invesco has entered into one or more Sub-Advisory Agreements with
certain affiliates to serve as sub-advisers to the Fund (the Sub-Advisers). Invesco may appoint the Sub-Advisers from time to time to
provide discretionary investment management services, investment advice, and/or order execution services to the Fund. The Sub-Advisers
and the Sub-Advisory Agreements are described in the SAI.
Potential
New Sub-Advisers (Exemptive Order Structure). The SEC has also
granted exemptive relief that permits the Adviser, subject to certain conditions, to enter into new sub-advisory agreements with affiliated
or unaffiliated sub-advisers on behalf of the Fund without shareholder approval. The exemptive relief also permits material amendments
to existing sub-advisory agreements with affiliated or unaffiliated sub-advisers (including the Sub-Advisory Agreements with the Sub-Advisers)
without shareholder approval. Under this structure, the Adviser has ultimate responsibility, subject to oversight of the Board, for overseeing
such sub-advisers and recommending to the Board their hiring, termination, or replacement. The structure does not permit investment advisory
fees paid by the Fund to be increased without shareholder approval, or change the Adviser's obligations under the investment advisory
agreement, including the Adviser's responsibility to monitor and oversee sub-advisory services furnished to the Fund.
Exclusion
of Adviser from Commodity Pool Operator Definition
With
respect to the Fund, the Adviser has claimed an exclusion from the definition of “commodity pool operator” (CPO) under the
Commodity Exchange Act (CEA) and the rules of the Commodity Futures Trading Commission (CFTC) and, therefore, is not subject to CFTC registration
or regulation as a CPO. In addition, the Adviser is relying upon a related exclusion from the definition of “commodity trading advisor”
(CTA) under the CEA and the rules of the CFTC with respect to the Fund.
The
terms of the CPO exclusion require the Fund, among other things, to
adhere to certain limits on its investments in “commodity interests.” Commodity interests include commodity futures, commodity
options and swaps, which in turn include non-deliverable forwards. The Fund is permitted to invest in these instruments as further described
in the Fund’s
9 Invesco Short
Term Municipal Fund
SAI. However,
the Fund is not intended as a vehicle for trading in the commodity futures, commodity options or swaps markets. The CFTC has neither reviewed
nor approved the Adviser’s reliance on these exclusions, or the Fund, its investment strategies or this prospectus.
Adviser
Compensation
During
the fiscal year ended August 31, 2022, the Adviser received compensation of 0.37% of the Fund's average daily net assets, after fee waiver
and/or expense reimbursement, if any. The advisory fee payable by the Fund shall be reduced by any amounts paid by the Fund under the
administrative services agreement with the Adviser.
A
discussion regarding the basis for the Board’s approval of the investment
advisory agreement and investment sub-advisory agreements of the Fund is available in the Fund’s most recent annual or semi-annual
report to shareholders.
Portfolio
Managers
The
following individuals are jointly and primarily responsible for the day-to-day management of the Fund’s portfolio:
◾
Michael
Magee, Portfolio Manager, who has been responsible for the Fund since 2021 and has been associated with Invesco and/or its affiliates
since 2010.
◾
Tim
O'Reilly, Portfolio Manager, who has been responsible for the Fund since 2019 and has been associated with Invesco and/or its affiliates
since 2010.
◾
Mark
Paris, Portfolio Manager, who has been responsible for the Fund since 2019 and has been associated with Invesco and/or its affiliates
since 2010.
◾
Rebecca
Setcavage, CFA, Portfolio Manager, who has been responsible for the Fund since 2019 and has been associated with Invesco and/or its affiliates
since 2019. Ms. Setcavage was associated with OppenheimerFunds, a global asset management firm
from 2017 to 2019. From 2004 to 2017, she was employed by T. Rowe
Price where she last served as a Portfolio Investment Analyst.
◾
Julius
Williams, Portfolio Manager, who has been responsible for the Fund since 2019 and has been associated with Invesco and/or its affiliates
since 2010.
The
portfolio managers are assisted by investment professionals from the
Invesco Municipal Fund Management Team. Members of the team 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
Dividends
and Distributions
The
Fund expects, based on its investment objective and strategies, that its distributions, if any, primarily will consist of tax-exempt income.
Dividends
The
Fund generally declares dividends from net investment income, if any, daily and pays them monthly.
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.
10 Invesco Short
Term Municipal Fund
Financial Highlights
The
financial highlights information presented for the Fund includes the financial history of the predecessor fund, which was reorganized
into the Fund after the close of business on May 24, 2019. The financial highlights show the Fund’s and predecessor fund’s
financial history for the past five fiscal years or, if shorter, the applicable period of operations since the inception of the Fund or
predecessor fund or class of Fund or predecessor fund shares. The financial highlights table is intended to help you understand the Fund’s
and the predecessor fund’s financial performance. Certain information reflects financial results for a single Fund share.
The
total returns in the table represent the rate that an investor would have
earned (or lost) on an investment in the Fund or predecessor fund (assuming reinvestment of all dividends and distributions). The information
for the fiscal years ended after May 24, 2019 has been audited by PricewaterhouseCoopers LLP, an independent registered public accounting
firm, whose report, along with the Fund’s financial statements, is included in the Fund’s annual report, which is available
upon request. The information for fiscal years ended prior to May 24, 2019 has been audited by the predecessor fund’s auditor.
|
|
Net
asset
value,
beginning
of
period |
Net
investment
income(a)
|
Net
gains
(losses)
on
securities
(both
realized
and
unrealized)
|
Total
from
investment
operations
|
Dividends
from
net
investment
income
|
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
|
Supplemental
ratio
of
expenses
to
average
net
assets
with
fee waivers
(excluding
interest,
facilities
and
maintenance
fees)
|
Ratio
of net
investment
income
to
average
net
assets |
Portfolio
turnover
(c)
|
|
Class
A | |||||||||||||
|
Year
ended 08/31/22 |
$3.79
|
$0.02
|
$(0.06)
|
$(0.04)
|
$(0.02)
|
$3.73
|
(1.08)%
|
$1,001,761
|
0.75%
|
0.75%
|
0.74%
|
0.57%
|
114%
|
|
Year
ended 08/31/21 |
3.79
|
0.02
|
0.01
|
0.03
|
(0.03)
|
3.79
|
0.72
|
1,581,245
|
0.78
|
0.78
|
0.75
|
0.59
|
24
|
|
Year
ended 08/31/20 |
3.77
|
0.06
|
0.02
|
0.08
|
(0.06)
|
3.79
|
2.14
|
896,488
|
0.82
|
0.82
|
0.76
|
1.56
|
89
|
|
Three
months ended 08/31/19 |
3.75
|
0.02
|
0.02
|
0.04
|
(0.02)
|
3.77
|
1.03
|
405,334
|
0.82(d)
|
0.82(d)
|
0.76(d)
|
1.72(d)
|
13
|
|
Year
ended 05/31/19 |
3.72
|
0.07
|
0.03
|
0.10
|
(0.07)
|
3.75
|
2.74
|
402,504
|
0.85
|
0.85
|
0.77
|
1.85
|
69
|
|
Year
ended 05/31/18 |
3.75
|
0.07
|
(0.04)
|
0.03
|
(0.06)
|
3.72
|
0.94
|
413,457
|
0.86
|
0.86
|
0.79
|
1.84
|
80
|
|
| |||||||||||||
|
Class
Y | |||||||||||||
|
Year
ended 08/31/22 |
3.80
|
0.03
|
(0.07)
|
(0.04)
|
(0.03)
|
3.73
|
(1.08)
|
1,538,307
|
0.50
|
0.50
|
0.49
|
0.82
|
114
|
|
Year
ended 08/31/21 |
3.79
|
0.03
|
0.02
|
0.05
|
(0.04)
|
3.80
|
1.24
|
1,764,272
|
0.53
|
0.53
|
0.50
|
0.84
|
24
|
|
Year
ended 08/31/20 |
3.77
|
0.07
|
0.02
|
0.09
|
(0.07)
|
3.79
|
2.39
|
1,230,817
|
0.57
|
0.57
|
0.51
|
1.81
|
89
|
|
Three
months ended 08/31/19 |
3.75
|
0.02
|
0.02
|
0.04
|
(0.02)
|
3.77
|
1.09
|
797,580
|
0.57(d)
|
0.57(d)
|
0.51(d)
|
1.97(d)
|
13
|
|
Year
ended 05/31/19 |
3.72
|
0.08
|
0.03
|
0.11
|
(0.08)
|
3.75
|
3.00
|
786,224
|
0.60
|
0.60
|
0.52
|
2.09
|
69
|
|
Year
ended 05/31/18 |
3.75
|
0.08
|
(0.04)
|
0.04
|
(0.07)
|
3.72
|
1.19
|
594,628
|
0.61
|
0.61
|
0.54
|
2.09
|
80
|
|
| |||||||||||||
|
Class
R6 | |||||||||||||
|
Year
ended 08/31/22 |
3.81
|
0.03
|
(0.06)
|
(0.03)
|
(0.03)
|
3.75
|
(0.75)
|
45,727
|
0.44
|
0.44
|
0.43
|
0.88
|
114
|
|
Year
ended 08/31/21 |
3.80
|
0.03
|
0.02
|
0.05
|
(0.04)
|
3.81
|
1.32
|
25,405
|
0.44
|
0.44
|
0.41
|
0.93
|
24
|
|
Year
ended 08/31/20 |
3.77
|
0.07
|
0.03
|
0.10
|
(0.07)
|
3.80
|
2.72
|
2,903
|
0.50
|
0.51
|
0.44
|
1.88
|
89
|
|
Three
months ended 08/31/19 |
3.75
|
0.02
|
0.02
|
0.04
|
(0.02)
|
3.77
|
1.10
|
10
|
0.50(d)
|
0.50(d)
|
0.44(d)
|
2.05(d)
|
13
|
|
Period
ended 05/31/19(e)
|
3.75
|
0.00
|
0.00
|
0.00
|
(0.00)
|
3.75
|
2.73
|
10
|
0.50(d)
|
0.50(d)
|
0.42(d)
|
2.20(d)
|
69
|
|
| |||||||||||||
|
(a)
|
Calculated
using average shares outstanding. |
|
(b)
|
Assumes
an initial investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in
additional shares on the reinvestment date, and
redemption
at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns.
Total returns are not annualized for periods less than
one
full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund
shares. |
|
(c)
|
Portfolio
turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
|
(d)
|
Annualized.
|
|
(e)
|
Commencement
date after the close of business on May 24, 2019. |
11 Invesco Short
Term Municipal 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 all of the Invesco Funds and their share classes that have different fees and expenses.
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 |
|
|
▪ 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) |
A-1 The
Invesco Funds
MCF—12/22
|
Share
Classes |
|
|
|
|
|
Class
A |
Class
C |
Class
R |
Class
Y |
Class
R5 and R6 |
|
|
▪ 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 International Core Equity 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 a specific
Fund may make additional purchases into Class AX and CX, respectively, of such specific Fund. All references in this “Shareholder
Account Information” section of this prospectus to Class A, C or R shares of the Invesco Funds shall include Class AX
(excluding Invesco Government Money Market Fund), or CX shares, respectively, of the Invesco Funds, unless otherwise noted. All references
in this “Shareholder Account Information” section of this prospectus to Invesco Cash Reserve Shares of Invesco Government
Money Market Fund shall include Class AX shares of Invesco Government Money Market Fund, unless otherwise noted.
Class P
Shares
In
addition to the other share classes discussed herein, the Invesco Summit Fund offers Class P shares, which were historically sold
only through the AIM Summit Investors Plans I and II (each a Plan and, collectively, the Summit Plans). Class P shares are sold with
no initial sales charge and have a 12b-1 fee of 0.10%. However, Class P shares are not sold to members of the general public. Only
shareholders who had accounts in the Summit Plans at the close of business on December 8, 2006 may purchase Class P shares and
only until the total of their combined investments in the Summit Plans and in Class P shares directly equals the face amount of their
former Plan under the 30 year extended investment option. The face amount of a Plan is the combined total of all scheduled monthly
investments under the Plan. For a Plan with a scheduled monthly investment of $100.00, the face amount would have been $36,000.00 under
the 30 year extended investment option.
Class R
Shares
Class R
shares are intended for 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 (except for the Invesco Master Loan Fund) are available for use by Employer Sponsored Retirement and Benefit
Plans, held either at the plan level or through omnibus accounts, that generally process no more than one net redemption and one net purchase
transaction each day.
Class
R5 and R6 shares of the Funds are also available to institutional investors.
Institutional investors are: banks, trust companies, collective trust funds, entities acting for the account of a public entity (e.g.,
Taft-Hartley funds, states, cities or government agencies), funds of funds or other pooled investment vehicles, 529 college savings plans,
financial intermediaries and corporations investing for their own accounts, endowments and foundations. For information regarding investment
minimums for Class R5 and R6 shares, please see “Minimum Investments” below.
Class
R6 shares of the Funds are also available through an intermediary that
has agreed with Invesco Distributors, Inc. to make such shares
A-2 The
Invesco Funds
available
for use in retail omnibus accounts that generally process no more than one net redemption and one net purchase transaction each day.
The
Invesco Master Loan Fund is only available for purchase by other Funds
in the Invesco fund family and other Invesco pooled investment vehicles.
Shareholders
eligible to purchase Class R6 Shares must meet the requirements
specified by their intermediary. Not all intermediaries offer Class R6 Shares to their customers.
Class S
Shares
Class S
shares are limited to investors who purchase shares with the proceeds received from a systematic contractual investment plan redemption
within the 12 months prior to purchasing Class S shares, and who purchase through an approved financial intermediary that has
an agreement with the distributor to sell Class S shares. Class S shares are not otherwise sold to members of the general public.
An investor purchasing Class S shares will not pay an initial sales charge. The investor will no longer be eligible to purchase additional
Class S shares at that point where the value of the contributions to the prior systematic contractual investment plan combined with
the subsequent Class S share contributions equals the face amount of what would have been the investor’s systematic contractual
investment plan under the 30-year investment option. The face amount of a systematic contractual investment plan is the combined total
of all scheduled monthly investments under that plan. For a plan with a scheduled monthly investment of $100.00, the face amount would
have been $36,000.00 under the 30-year extended investment option.
Class Y
Shares
Class
Y shares are available to (i) investors who purchase through an account that is charged an asset-based fee or commission by a financial
intermediary, including through brokerage platforms, where a broker is acting as the investor’s agent, that may require the payment
by the investor of a commission and/or other form of compensation to that broker, (ii) endowments, foundations, or Employer Sponsored
Retirement and Benefit Plans (with the exception of “Solo 401(k)” Plans and 403(b) custodial accounts held directly at Invesco),
(iii) banks or bank trust departments acting on their own behalf or as trustee or manager for trust accounts, or (iv) any current, former
or retired trustee, director, officer or employee (or immediate family members of a current, former or retired trustee, director, officer
or employee) of any Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
Subject
to any conditions or limitations imposed on the servicing of Class
Y shares by your financial adviser, if you received Class Y shares as a result of a merger or reorganization of a predecessor fund into
any of the Funds, you will be permitted to make additional Class Y share purchases. In addition, you will be permitted to make additional
Class Y shares purchases if you owned Class Y shares in a “Solo 401(k)” Plan or 403(b) custodial account held directly at
Invesco if you held such shares in your account on or prior to May 24, 2019.
Investor
Class Shares
Investor
Class shares are sold with no initial sales charge and have a maximum 12b-1 fee of 0.25%. Only the following persons may purchase Investor
Class shares:
◾
Investors
who established accounts prior to April 1, 2002, in Investor Class shares with Invesco Distributors, Inc. (Invesco Distributors) who have
continuously maintained an account in Investor Class shares (this includes anyone listed in the registration of an account, such as a
joint owner, trustee or custodian, and immediate family members of such persons) without a designated intermediary. These investors are
referred to as “Investor Class grandfathered investors.”
◾
Customers
of a financial intermediary that has had an agreement with the Funds’ distributor or any Funds that offered Investor Class shares
prior to April 1, 2002, that has continuously maintained such agreement. These intermediaries are referred to as “Investor
Class grandfathered intermediaries.”
◾
Any
current, former or retired trustee, director, officer or employee (or immediate family member of a current, former or retired trustee,
director, officer or employee) of any Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
For
additional shareholder eligibility requirements with respect to Invesco
Premier Portfolio, please see “Shareholder Account Information – Purchasing Shares and Shareholder Eligibility – Invesco
Premier Portfolio.”
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.
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 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
A-4 The
Invesco Funds
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.
Merrill
Lynch
Shareholders
purchasing Fund shares through a Merrill
Lynch platform
or account will be eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at Merrill Lynch
◾
Employer-sponsored
retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to fund those plans,
provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the plan;
◾
Shares
purchased by a 529 Plan (does not include 529 Plan unit or 529-specific share classes or equivalents);
◾
Shares
purchased through a Merrill Lynch affiliated investment advisory program;
◾
Shares
exchanged due to the holdings moving from a Merrill Lynch affiliated investment advisory program to a Merrill Lynch brokerage (non-advisory)
account pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers;
◾
Shares
purchased by third party investment advisors on behalf of their advisory clients through Merrill Lynch’s platform;
◾
Shares
of funds purchased through the Merrill Edge Self-Directed platform (if applicable);
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not
any other fund within the fund family);
◾
Shares
exchanged from Class C (i.e.
level-load) shares of the same fund pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers;
◾
Employees
and registered representatives of Merrill Lynch or its affiliates and their family members;
◾
Directors
or Trustees of the Fund, and employees of the Fund’s investment adviser or any of its affiliates, as described in this prospectus;
and
◾
Eligible
shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days
following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to
a front-end or deferred sales load (known as Rights of Reinstatement). Automated transactions (i.e. systematic purchases and withdrawals)
and purchases made after shares are automatically sold to pay Merrill Lynch’s account maintenance fees are not eligible for reinstatement.
◾
CDSC
Waivers on A and C Shares available at Merrill Lynch
◾
Death
or disability of the shareholder;
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund’s prospectus;
◾
Return
of excess contributions from an IRA Account;
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts pursuant to the Internal Revenue Code;
◾
Shares
sold to pay Merrill Lynch fees but only if the transaction is initiated by Merrill Lynch;
◾
Shares
acquired through a right of reinstatement;
◾
Shares
held in retirement brokerage accounts, that are converted to a lower cost share class due to transfer to a fee based account or platform
(applicable to A and C shares only); and
◾
Shares
received through an exchange due to the holdings moving from a Merrill Lynch affiliated investment advisory program to a Merrill Lynch
brokerage (non-advisory) account pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers.
◾
Front-end
load Discounts Available at Merrill Lynch: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this prospectus;
◾
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts as described in the Fund’s prospectus will be automatically
calculated based on the aggregated holding of fund family assets held by accounts (including 529 program holdings, where applicable) within
the purchaser’s household at Merrill Lynch. Eligible fund family assets not held at Merrill Lynch may be included in the ROA calculation
only if the shareholder notifies his or her financial advisor about such assets; and
◾
Letters
of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Merrill Lynch, over
a 13-month period of time (if applicable).
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).
A-5 The
Invesco Funds
Morgan
Stanley Wealth Management
Shareholders
purchasing Fund shares through a Morgan Stanley
Wealth Management transactional brokerage account will be eligible
only for the following front-end sales charge waivers with respect to Class A shares, which may differ from and may be more limited than
those disclosed elsewhere in this Fund’s Prospectus or SAI.
◾
Front-end
Sales Charge Waivers on Class A Shares available at Morgan Stanley Wealth Management
◾
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and
defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs, SAR-SEPs
or Keogh plans;
◾
Morgan
Stanley employee and employee-related accounts according to Morgan Stanley’s account linking rules;
◾
Shares
purchased through reinvestment of dividends and capital gains distributions when purchasing shares of the same fund;
◾
Shares
purchased through a Morgan Stanley self-directed brokerage account;
◾
Class
C (i.e., level-load) shares that are no longer subject to a contingent deferred sales charge and are converted to Class A shares of the
same fund pursuant to Morgan Stanley Wealth Management’s share class conversion program; and
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (i) the repurchase occurs within 90 days following the
redemption, (ii) the redemption and purchase occur in the same account, and (iii) redeemed shares were subject to a front-end or deferred
sales charge.
Raymond
James Financial Services, Inc.
Shareholders
purchasing Fund shares through a Raymond
James Financial Services, Inc., Raymond James affiliates and each
entity’s affiliates (Raymond James) platform or account, or through an introducing broker-dealer or independent registered investment
adviser for which Raymond James provides trade execution, clearance, and/or custody services, will be eligible only for the following
load waivers (front-end sales charge waivers and contingent deferred, or back-end, sales charge waivers) and discounts, which may differ
from those disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
sales load waivers on Class A shares available at Raymond James
◾
Shares
purchased in an investment advisory program.
◾
Shares
purchased within the same fund family through a systematic reinvestment of capital gains distributions and dividend distributions.
◾
Employees
and registered representatives of Raymond James or its affiliates and their family members as designated by Raymond James.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (known as Rights of Reinstatement).
◾
A
shareholder in the Fund’s Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate
share class) of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures
of Raymond James.
◾
CDSC
Waivers on Classes A and C shares available at Raymond James
◾
Death
or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the fund’s prospectus.
◾
Return
of excess contributions from an IRA Account.
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based
on applicable IRS regulations as described in the fund’s prospectus.
◾
Shares
sold to pay Raymond James fees but only if the transaction is initiated by Raymond James.
◾
Shares
acquired through a right of reinstatement.
◾
Front-end
load discounts available at Raymond James: breakpoints, rights of accumulation, and/or letters of intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of
fund family assets held by accounts within the purchaser’s household at Raymond James. Eligible fund family assets not held at Raymond
James may be included in the calculation of rights of accumulation only if the shareholder notifies his or her financial advisor about
such assets.
◾
Letters
of intent which allow for breakpoint discounts based on anticipated purchases within a fund family, over a 13-month time period. Eligible
fund family assets not held at Raymond James may be included in the calculation of letters of intent only if the shareholder notifies
his or her financial advisor about such assets.
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.
A-6 The
Invesco Funds
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.
◾
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.
Oppenheimer
& Co. Inc. (“OPCO”)
Shareholders
purchasing Fund shares through an OPCO
platform or account are eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund's prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at OPCO
◾
Employer-sponsored
retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to
fund
those plans, provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the
plan
◾
Shares
purchased by or through a 529 Plan
◾
Shares
purchased through an OPCO affiliated investment advisory program
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not
any other fund within the fund family)
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (known as Rights of Reinstatement).
◾
A
shareholder in the Fund's Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate share
class) of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures of OPCO
◾
Employees
and registered representatives of OPCO or its affiliates and their family members
◾
Directors
or Trustees of the Fund, and employees of the Fund's investment adviser or any of its affiliates, as described in this prospectus
◾
CDSC
Waivers on A and C Shares available at OPCO
◾
Death
or disability of the shareholder
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund's prospectus
◾
Return
of excess contributions from an IRA Account
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based
on applicable IRS regulations as described in the prospectus
◾
Shares
sold to pay OPCO fees but only if the transaction is initiated by OPCO Shares acquired through a right of reinstatement
◾
Front-end
load Discounts Available at OPCO: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding
of fund family assets held by accounts within the purchaser's household at OPCO. Eligible fund family assets not held at OPCO may be included
in the ROA calculation only if the shareholder notifies his or her financial advisor about such assets.
Robert
W. Baird & Co. Incorporated (“Baird”)
Shareholders
purchasing fund shares through a Baird
platform or account will only be eligible for the following sales charge waivers (front-end sales charge waivers and CDSC waivers) and
discounts, which may differ from those disclosed elsewhere in this prospectus or the SAI.
◾
Front-End
Sales Charge Waivers on Class A-shares Available at Baird
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund.
◾
Shares
purchased by employees and registered representatives of Baird or its affiliate and their family members as designated by Baird.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales charge (known as rights of reinstatement).
◾
A
shareholder in the Fund’s Class C Shares will have their shares converted at net asset value to Class A shares of the fund if the
shares are no longer subject to CDSC and the conversion is in line with the policies and procedures of Baird.
◾
Employer-sponsored
retirement plans or charitable accounts in a transactional brokerage account at Baird, including 401(k) plans, 457 plans, employer-sponsored
403(b) plans, profit sharing and money
A-7 The
Invesco Funds
purchase
pension plans and defined benefit plans. For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs,
Simple IRAs or SAR-SEPs.
◾
CDSC
Waivers on Classes A and C shares Available at Baird
◾
Shares
sold due to death or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund’s Prospectus.
◾
Return
of excess contributions from an IRA Account.
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching age 72 as described in
the Fund’s prospectus.
◾
Shares
sold to pay Baird fees but only if the transaction is initiated by Baird.
◾
Shares
acquired through a right of reinstatement.
◾
Front-End
Sales Charge Discounts Available at Baird: Breakpoints, Rights of Accumulation and/or letters of intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of
fund family assets held by accounts within the purchaser’s household at Baird. Eligible fund family assets not held at Baird may
be included in the rights of accumulation calculation only if the shareholder notifies his or her financial advisor about such assets.
◾
Letters
of Intent (LOI) allow for breakpoint discounts based on anticipated purchases of within a fund family through Baird, over a 13-month period
of time.
Edward
D. Jones & Co., L.P. (“Edward Jones”)
Policies
Regarding Transactions Through Edward Jones
The
following information has been provided by Edward Jones:
The
following information supersedes prior information with respect to transactions
and positions held in fund shares through an Edward Jones system. Shareholders purchasing Fund shares through the Edward
Jones commission
and fee-based platforms will be eligible for the following load waivers (front- end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund's prospectus or statement of additional
information (“SAI”). 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 (including holdings of 529 Plans where Invesco serves as primary distributor), 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.
◾
Front-end
sales load waivers on Class A shares available at Edward Jones
◾
Associates
of Edward Jones and its affiliates and their family members who are 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: 1) the proceeds are
from the sale of shares within 60 days of the purchase, and 2) the sale and purchase are made in the same share class and the same account
or the purchase is made in an individual retirement account with proceeds from liquidations in a non-retirement account.
◾
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.
◾
CDSC
Waivers on Classes A and C shares available at Edward Jones
◾
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
sold 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 the qualified age based on applicable IRS regulations.
◾
Shares
sold 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 Minimum Balances, as described below.
◾
Front-end
load discounts available at Edward Jones: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoint
pricing, otherwise known as volume pricing, at dollar thresholds as described in the prospectus.
◾
Rights
of Accumulation (“ROA”) which entitles the shareholder to the applicable sales charge on a purchase of Class A shares will
be determined by taking into account all share classes (except certain money market funds and any assets held in group retirement plans)
of Invesco Funds (including holdings of 529 Plans where Invesco serves as primary distributor) 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).
◾
Letters
of Intent (“LOI”) allow shareholders to receive 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.
Other
Important Information Regarding Transactions Through Edward
Jones
Minimum
Purchase Amounts
•
Initial
purchase minimum: $250
•
Subsequent
purchase minimum: none
A-8 The
Invesco Funds
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.
Stifel,
Nicolaus & Company (“Stifel”)
Shareholders
purchasing Fund shares through a Stifel
platform or account will be eligible only for the following front-end sales charge waivers and discounts, which may differ from those
disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at Stifel: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this 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 Stifel. Eligible
fund family assets not held at Stifel may be included in the ROA calculation only if the shareholder notifies his or her financial advisor
about such assets; and
◾
Letters
of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Stifel, over a 13-month
period of time (if applicable).
◾
Shares
converted from Class C (i.e. level-load) shares of the same fund pursuant to Stifel policies relating to sales load discounts and waivers.
PFS
Investments Inc. (“PFSI”)
Policies
Regarding Transactions Through PFSI
The
following information supersedes all prior information with respect to transactions and positions held in fund shares purchased through
PFSI and held on the mutual fund platform of its affiliate, Primerica Shareholder Services (“PSS”). Clients of PFSI (also
referred to as “shareholders”) purchasing fund shares on the PSS platform are eligible only for the following share classes,
sales charge discounts (also referred to as “breakpoints”) and waivers, which can differ from share classes, discounts and
waivers described elsewhere in this prospectus or the related statement of additional information (“SAI”) or through another
broker-dealer. In all instances, it is the shareholder’s responsibility to inform PFSI at the time of a purchase of all holdings
of Invesco Funds on the PSS platform, or other facts qualifying the purchaser for discounts or waivers. PFSI may request reasonable documentation
of such facts, and condition the granting of any discount or waiver on the timely receipt of such documents. Shareholders should contact
PSS if they have questions regarding their eligibility for these discounts and waivers.
Share
Classes
◾
Class
A shares: in non-retirement accounts, individual retirement accounts (IRA), SEP IRAs, SIMPLE IRAs, Keogh Plans, and all other account
types unless expressly provided for below.
◾
Class
C shares: only in accounts with existing Class C share holdings.
Breakpoints
◾
Breakpoint
pricing at dollar thresholds as described in the prospectus of the fund you are purchasing.
Rights
of Accumulation (“ROA”)
◾
The
applicable sales charge on a purchase of Class A shares is determined by taking into account all share classes (except any assets held
in group retirement plans) of Invesco Funds held by the shareholder on the PSS Platform. The inclusion of eligible fund family assets
in the ROA calculation is dependent on the shareholder notifying PFSI of such assets at the time of calculation. Shares of money market
funds are
included
only if such shares were acquired in exchange for shares of another Invesco Fund purchased with a sales charge. No shares of Invesco Funds
held by the shareholder away from the PSS platform will be granted ROA with shares of any Invesco Fund purchased on the PSS platform.
◾
Any
SEP IRA plan, any SIMPLE IRA plan or any Payroll Deduction plan (“PDP”) on the PSS platform will be defaulted to plan-level
grouping for purposes of ROA, which allows each participating employee ROA with all other eligible shares held in plan accounts on the
PSS platform. At any time, a participating employee may elect to exercise a one-time option to change grouping for purposes of ROA to
shareholder- level grouping, which allows the plan account of the electing employee ROA with her other eligible holdings on the PSS platform,
but not with all other eligible participant holdings in the plan. Eligible shares held in plan accounts electing shareholder-level grouping
will not be available for purposes of ROA to plan accounts electing plan-level grouping.
◾
ROA
is determined by calculating the higher of cost minus redemptions or current market value (current shares x NAV).
Letter
of Intent (“LOI”)
◾
By
executing a LOI, shareholders can receive the sales charge and breakpoint discounts for purchases shareholders intend to make over a 13-month
period through PFSI, from the date PSS receives the LOI. The purchase price of the LOI is determined by calculating the higher of cost
or market value of qualifying holdings at LOI initiation in combination with the dollar amount the shareholder intends to invest over
a 13-month period to arrive at total investment for purposes of determining any breakpoint discount and the applicable front-end sales
charge. Each purchase the shareholder makes during that 13-month period will receive the sales charge and breakpoint discount that applies
to the projected total investment.
◾
Only
holdings of Invesco Funds on the PSS platform are eligible for inclusion in the LOI calculation and the shareholder must notify PFSI of
all eligible assets at the time of calculation.
◾
Purchases
made before the LOI is received by PSS are not adjusted under the LOI, and the LOI will not reduce any sales charge previously paid. Sales
charges will be automatically adjusted if the total purchases required by the LOI are not met.
◾
If
an employer maintaining a SEP IRA plan, SIMPLE IRA plan or non-IRA PDP on the PSS platform has elected to establish or change ROA for
the accounts associated with the plan to a plan-level grouping, LOIs will also be at the plan-level and may only be established by the
employer. LOIs are not available to PDP IRA plans on the PSS platform with plan-level grouping for purposes of ROA, but are available
to any participating employee that elects shareholder-level grouping for purposes of ROA.
Sales
Charge Waivers
Sales
charges are waived for the following shareholders and in the following
situations:
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment.
◾
Shares
purchased with the proceeds of redeemed shares of the same fund family so long as the following conditions are met: 1) the proceeds are
from the sale of shares within 90 days of the purchase, 2) the sale and purchase are made in the same share class and the same account
or the purchase is made in an individual retirement account with proceeds from liquidations in a non-retirement account, and 3) the redeemed
shares were subject to a front-end or deferred sales load, Automated transactions (i.e. systematic purchases and withdrawals), full or
partial transfers or rollovers of retirement accounts, and purchases made after shares are automatically sold to pay account maintenance
fees are not eligible for this sales charge waiver.
◾
Shares
exchanged into Class A shares from another share class so long as the exchange is into the same fund and was initiated at the discretion
of PFSI. PFSI is responsible for any remaining CDSC due to the fund company, if applicable. Any future purchases are subject to the applicable
sales charge as disclosed in the prospectus.
Policies
Regarding Fund Purchases Through PFSI That Are Not Held
on the PSS Platform
A-9 The
Invesco Funds
◾
Class
R shares
are available through PFSI only in 401(k) plans covering a business owner with no employees, commonly referred to as a one-participant
401(k) plan or solo 401(k).
UBS
Financial Services Inc. (“UBS”)
Pursuant
to an agreement with the Distributor, UBS may offer Class Y
shares
to its retail brokerage clients whose shares are held in omnibus
accounts at UBS, or its designee. For these clients, UBS may charge commissions or transaction fees with respect to brokerage transactions
in Class Y shares. The
minimum investment for Class Y shares is waived for transactions through such brokerage platforms at UBS. Please contact your UBS representative
for more information about these fees and other eligibility requirements.
Qualifying
for Reduced Sales Charges and Sales Charge Exceptions
The
following types of accounts qualify for reduced sales charges or sales charge exceptions under ROAs and LOIs:
1.
an
individual account owner;
2.
immediate
family of the individual account owner (which includes the individual’s spouse or domestic partner; the individual’s children,
step-children or grandchildren; the spouse or domestic partner of the individual’s children, step-children or grandchildren; the
individual’s parents and step-parents; the parents or step-parents of the individual’s spouse or domestic partner; the individual’s
grandparents; and the individual’s siblings);
3.
a
Retirement and Benefit Plan so long as the plan is established exclusively for the benefit of an individual account owner; and
4.
a
Coverdell Education Savings Account (Coverdell ESA), maintained pursuant to Section 530 of the Code (in either case, the account
must be established by an individual account owner or have an individual account owner named as the beneficiary thereof).
Alternatively,
an Employer Sponsored Retirement and Benefit Plan (but not including
plans utilizing the Invesco 403(b)(7) Custodial Account program, or the individual custodial accounts thereunder) or Employer Sponsored
IRA may be eligible to purchase shares pursuant to a ROA at the plan level, and receive a reduced applicable initial sales charge for
a new purchase based on the total value of the current purchase and the value of other shares owned by the plan’s participants if:
a)
the
employer or plan sponsor submits all contributions for all participating employees in a single contribution transmittal (the Invesco Funds
will not accept separate contributions submitted with respect to individual participants);
b)
each
transmittal is accompanied by checks or wire transfers; and
c)
if
the Invesco Funds are expected to carry separate accounts in the names of each of the plan participants, (i) the employer or plan
sponsor notifies Invesco Distributors or its designee in writing that the separate accounts of all plan participants should be linked,
and (ii) all new participant accounts are established by submitting an appropriate Account Application on behalf of each new participant
with the contribution transmittal.
Participant
accounts in a retirement plan that are eligible to purchase shares
pursuant to a ROA at the plan level may not also be considered eligible to do so for the benefit of an individual account owner.
In
all instances, it is the purchaser’s responsibility to notify Invesco Distributors
or its designee of any relationship or other facts qualifying the purchaser as eligible for reduced sales charges and/or sales charge
exceptions and to provide all necessary documentation of such facts in order to qualify for reduced sales charges or sales charge exceptions.
For additional information on linking accounts to qualify for ROA or LOI, please see the Funds’ SAI.
Purchases
of Class A shares of Invesco Conservative Income Fund, Invesco
Government Money Market Fund and Invesco Short Term Municipal Fund, Class AX shares or Invesco Cash Reserve Shares of Invesco Government
Money Market Fund and Invesco U.S. Government Money Portfolio, as applicable, or Investor Class shares of any Fund will not be
taken
into account in determining whether a purchase qualifies for a reduction in initial sales charges pursuant to ROAs or LOIs.
Rights
of Accumulation
Purchasers
that qualify for ROA may combine new purchases of Class A shares of a Fund with shares of the Fund or other open-end Invesco Funds
currently owned (Class A, C, IB, IC, P, R, S or Y) for the purpose of qualifying for the lower initial sales charge rates that apply
to larger purchases. The applicable initial sales charge for the new purchase will be based on the total of your current purchase and
the value of other shares owned based on their current public offering price. The Funds’ transfer agent may automatically link certain
accounts registered in the same name with the same taxpayer identification number for the purpose of qualifying you for lower initial
sales charge rates.
Letters
of Intent
Under
a LOI, you commit to purchase a specified dollar amount of Class A shares of one or more Funds during a 13-month period. The amount
you agree to purchase determines the initial sales charge you pay. If the full amount committed to in the LOI is not invested by the end
of the 13-month period, your account will generally be assessed the higher initial sales charge that would normally be applicable to the
total amount actually invested. Shares equal in value to 5% of the intended purchase amount will be held in escrow for this purpose.
Reinstatement
Following Redemption
If
you redeem any class of shares of a Fund, you may reinvest all or a portion of the proceeds from the redemption (and may include that
amount necessary to acquire a fractional Share to round off his or her purchase to the next full Share) in the same share class of any
Fund within 180 days of the redemption without paying an initial sales charge. Class P, S, and Y redemptions may be reinvested into Class
A shares without an initial sales charge.
This
reinstatement privilege does not apply to a purchase made through a
regularly scheduled automatic investment plan, such as a purchase by a regularly scheduled payroll deduction or transfer from a bank account.
This
reinstatement privilege shall be suspended for the period of time in which
a purchase block is in place on a shareholder’s account. Please see “Purchase Blocking Policy” discussed below.
In
order to take advantage of this reinstatement privilege, you must inform
your financial adviser or the Funds’ transfer agent that you wish to do so at the time of your reinvestment.
Contingent
Deferred Sales Charges (CDSCs)
CDSCs
on Class A Shares and Invesco Cash Reserve Shares
Any
shares of a Large Purchase of Class A shares redeemed prior to 18 months after the date of purchase will be subject to a CDSC of 1% with
the exception of Class A shares of Invesco Conservative Income Fund and Invesco Short Term Municipal Fund which do not have CDSCs on redemptions.
If
Invesco Distributors pays a concession to a financial intermediary in connection
with a Large Purchase of Class A shares by an Employer Sponsored Retirement and Benefit Plan or SIMPLE IRA Plan, the Class A shares will
be subject to a 1% CDSC if all of the Employer Sponsored Retirement and Benefit Plan’s or SIMPLE IRA’s shares are redeemed
within one year from the date of initial purchase.
If
you acquire Invesco Cash Reserve Shares or Class A shares of Invesco
Government Money Market Fund or Invesco Cash Reserve Shares of Invesco U.S. Government Money Portfolio through an exchange involving Class
A shares that were subject to a CDSC, the shares acquired as a result of the exchange will continue to be subject to that same CDSC.
CDSCs
on Class C Shares
Class
C shares are subject to a CDSC; however, the CDSC shall not apply to the purchases of Class C shares where the selling broker-dealer was
not paid a commission at the time of purchase. If you redeem your shares during the first year since your purchase has been made you will
be
A-10 The
Invesco Funds
assessed
a CDSC as disclosed in the “Fees and Expenses - Shareholder Fees” table in the prospectus, unless you qualify for one of the
CDSC exceptions outlined below.
CDSCs
on Class C Shares – Employer Sponsored Retirement and Benefit Plans and Employer Sponsored IRAs
Class
C shares are subject to a 1.00% CDSC at the time of redemption if all of the Employer Sponsored Retirement and Benefit Plan’s or
Employer Sponsored IRA’s shares are redeemed within one year from the date of initial purchase.
CDSCs
on Class C Shares of Invesco Short Term Bond Fund
Effective
November 1, 2021, Class C shares of Invesco Short Term Bond Fund are subject to a CDSC. If you acquire Class C shares of any other Fund
as a result of an exchange involving Class C shares of Invesco Short Term Bond Fund that were not subject to a CDSC prior to November
1, 2021, then the shares acquired as a result of the exchange will not be subject to a CDSC.
Computing
a CDSC
The
CDSC on redemptions of shares is computed based on the lower of their original purchase price or current net asset value, net of reinvested
dividends and capital gains distributions. In determining whether to charge a CDSC, shares are accounted for on a first-in, first-out
basis, which means that you will redeem shares on which there is no CDSC first, and then shares in the order of their purchase.
CDSC
Exceptions
Investors
who own shares that are otherwise subject to a CDSC will not pay a CDSC in the following circumstances:
◾
If
you participate in the Systematic Redemption Plan and withdraw up to 12% of the value of your shares that are subject to a CDSC in any
twelve-month period.
◾
If
you redeem shares to pay account fees.
◾
If
you are the executor, administrator or beneficiary of an estate or are otherwise entitled to assets remaining in an account following
the death or post-purchase disability of a shareholder or beneficial owner and you choose to redeem those shares.
There
are other circumstances under which you may be able to redeem shares
without paying CDSCs. For additional information about such circumstances, please see the Appendix entitled “Purchase, Redemption
and Pricing of Shares” in each Fund’s SAI.
Shares
acquired through the reinvestment of dividends and distributions are
not subject to CDSCs.
The
following share classes are sold without a CDSC:
◾
Class
A2 shares of Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund
◾
Class
A shares of Invesco Government Money Market Fund
◾
Invesco
Cash Reserve Shares of Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio
◾
Investor
Class shares of any Fund
◾
Class
P shares of Invesco Summit Fund
◾
Class
R5 and R6 shares of any Fund
◾
Class
R shares of any Fund
◾
Class
S shares of Invesco Charter Fund, Invesco Select Risk: Moderately Conservative Investor Fund, Invesco Select Risk: Growth Investor Fund,
Invesco Select Risk: Moderate Investor Fund and Invesco Summit Fund
◾
Class
Y shares of any Fund
Purchasing
Shares and Shareholder Eligibility
Invesco
Premier U.S. Government Money Portfolio
For
Invesco Premier U.S. Government Money Portfolio, you may purchase shares using one of the options below. Unless the Fund closes early
on a business day, the Fund’s transfer agent will generally accept any purchase order placed until 5:00 p.m. Eastern Time on a business
day and may accept a purchase order placed until 5:30 p.m. Eastern Time on a business
day.
If you wish to place an order between 5:00 p.m. and 5:30 p.m. Eastern Time on a business day, you must place such order by telephone;
however, the Fund’s transfer agent reserves the right to reject or limit the amount of orders placed during this time. If the Fund
closes early on a business day, the Fund’s transfer agent must receive your purchase order prior to such closing time. Purchase
orders will not be processed unless the account application and purchase payment are received in good order. In accordance with the USA
PATRIOT Act, if you fail to provide all the required information requested in the current account application, your purchase order will
not be processed. Additionally, federal law requires that the Fund verifies and records your identifying information.
Invesco
Premier Portfolio
Only
accounts beneficially owned by natural persons will be permitted to retain their shares. The Fund has implemented policies and procedures
reasonably designed to limit all beneficial owners of the Fund to natural persons, and investments in the Fund are limited to accounts
beneficially owned by natural persons. Natural persons may invest in the Fund through certain tax-advantaged savings accounts, trusts
and other retirement and investment accounts, which may include, among others: participant-directed defined contribution plans; individual
retirement accounts; simplified employee pension arrangements; simple retirement accounts; custodial accounts; deferred compensation plans
for government or tax-exempt organization employees; Archer medical savings accounts; college savings plans; health savings account plans;
ordinary trusts and estates of natural persons; or certain other retirement and investment accounts with ultimate investment authority
held by the natural person beneficial owner, notwithstanding having an institutional decision maker making day-to-day decisions (e.g.,
a plan sponsor in certain retirement arrangements or an investment adviser managing discretionary investment accounts).
Further,
financial intermediaries may only submit purchase orders if they have
implemented policies and procedures reasonably designed to limit all investors on behalf of whom they submit orders to accounts beneficially
owned by natural persons. Financial intermediaries may be required to provide a written statement or other representation that they have
in place, and operate in compliance with, such policies and procedures prior to submitting purchase orders. Such policies and procedures
may include provisions for the financial intermediary to promptly report to the Fund or the transfer agent the identification of any shareholder
of the Fund that does not qualify as a natural person of whom they are aware and promptly take steps to redeem any such shareholder’s
shares of the Fund upon request by the Fund or the transfer agent, in such manner as it may reasonably request. The Fund may involuntarily
redeem any such shareholder who does not voluntarily redeem their shares.
Natural
persons may purchase shares using one of the options below. For
all classes of the Fund, other than Investor Class shares, unless the Fund closes early on a business day, the Fund’s transfer agent
will generally accept any purchase order placed until 5:00 p.m. Eastern Time on a business day and may accept a purchase order placed
until 5:30 p.m. Eastern Time on a business day. If you wish to place an order between 5:00 p.m. and 5:30 p.m. Eastern Time on a business
day, you must place such order by telephone; or send your request by a pre-arranged Liquidity Link data transmission however, the Fund’s
transfer agent reserves the right to reject or limit the amount of orders placed during this time. For Investor Class shares of the Fund,
unless the Fund closes early on a business day, the Fund’s transfer agent will generally accept any purchase order placed until
4:00 p.m. Eastern Time on a business day and may accept a purchase order placed until 4:30 p.m. Eastern Time on a business day. If you
wish to place an order between 4:00 p.m. and 4:30 p.m. Eastern Time on a business day, you must place such order by telephone; however,
the Fund’s transfer agent reserves the right to reject or limit the amount of orders placed during this time. If the Fund closes
early on a business day, the Fund’s transfer agent must receive your purchase order prior to such closing time. Purchase orders
will not be processed unless the account application and purchase payment are received in good order. In accordance with the USA PATRIOT
Act, if you fail to provide all the required information requested in the current account application, your purchase order will not be
A-11 The
Invesco Funds
processed.
Additionally, federal law requires that the Fund verify and record your identifying information.
Minimum Investments
There
are no minimum investments for Class P or S shares for fund accounts. The minimum investments for Class A, C, R, Y, Investor Class and
Invesco Cash Reserve shares for fund accounts are as follows:
|
Type
of Account |
Initial
Investment
Per
Fund |
Additional
Investments
Per
Fund |
|
Asset
or fee-based accounts managed by your financial
adviser
|
None
|
None
|
|
| ||
|
Employer
Sponsored Retirement and Benefit Plans and
Employer
Sponsored IRAs |
None
|
None
|
|
| ||
|
IRAs
and Coverdell ESAs if the new investor is
purchasing
shares through a systematic purchase plan |
$25
|
$25
|
|
| ||
|
All
other accounts if the investor is purchasing shares
through
a systematic purchase plan |
50
|
50
|
|
| ||
|
IRAs
and Coverdell ESAs |
250
|
25
|
|
| ||
|
All
other accounts |
1,000
|
50
|
|
| ||
Invesco
Distributors or its designee has the discretion to accept orders on behalf of clients for lesser amounts.
The
minimum investments for Class R5 and R6 shares are as follows:
There
is no minimum initial investment for an Employer Sponsored Retirement
and Benefit Plan investing through a retirement platform that administers at least $2.5 billion in retirement plan assets. All other Employer
Sponsored Retirement and Benefit Plans must meet a minimum initial investment of at least $1 million in each Fund in which it invests.
The
minimum initial investment in each share class for all other institutional
investors is $1 million, unless such investment is made by (i) an investment company, as defined under the 1940 Act, as amended, that
is part of a family of investment companies which own in the aggregate at least $100 million in securities, or (ii) an account established
with a 529 college savings plan managed by Invesco, in which case there is no minimum initial investment.
There
are no minimum investment amounts for Class R6 shares held through
retail omnibus accounts where the intermediary:
◾
generally
charges an asset-based fee or commission in addition to those described in this prospectus; and
◾
maintains
Class R6 shares and makes them available to retail investors.
A
financial intermediary may impose different investment minimums than
those set forth above. The Fund is not responsible for any investment minimums imposed by financial intermediaries or for notifying shareholders
of any changes to them. See “Waivers Available Through Certain Financial Intermediaries and Other Financial Intermediary-Specific
Arrangements” for more information on certain intermediary-specific investment minimums. Please consult with your financial intermediary
if you have any questions regarding their policies.
How
to Purchase Shares*
|
|
Opening
An Account |
Adding
To An Account |
|
Through
a
Financial
Adviser
or
Financial
Intermediary*
|
Contact
your financial adviser or
financial
intermediary. |
Contact
your financial adviser or
financial
intermediary. |
|
By
Mail |
Mail
completed account application
and
check to the Funds’ transfer
agent,
Invesco
Investment Services, Inc.
P.O.
Box 219078,
Kansas
City, MO 64121-9078.
The
Funds’ transfer agent does NOT
accept
the following types of
payments:
Credit Card Checks,
Temporary/Starter
Checks, Third
Party
Checks, and Cash. |
Mail
your check and the remittance
slip
from your confirmation
statement
to the Funds’ transfer
agent.
The Funds’ transfer agent
does
NOT accept the following
types
of payments: Credit Card
Checks,
Temporary/Starter Checks,
Third
Party Checks, and Cash. |
|
|
Opening
An Account |
Adding
To An Account |
|
By
Wire* |
Mail
completed account application
to
the Funds’ transfer agent. Call
the
Funds’ transfer agent at (800)
959-4246
to receive a reference
number.
Then, use the wire
instructions
provided below. |
Call
the Funds’ transfer agent to
receive
a reference number. Then,
use
the wire instructions provided
below.
|
|
Wire
Instructions |
Beneficiary
Bank ABA/Routing #: 011001234
Beneficiary
Account Number: 729639
Beneficiary
Account Name: Invesco Investment Services, Inc.
RFB:
Fund Name, Reference #
OBI:
Your Name, Account # | |
|
By
Telephone* |
Open
your account using one of the
methods
described above. |
The
Bank Account Information
option
on your completed account
application
or complete a
Systematic
Options and Bank
Information
Form. Mail the
application
or form to the Funds’
transfer
agent. Once the Funds’
transfer
agent has received the
form,
call the Funds’ transfer agent
at
the number below to place your
purchase
order. For Class R5 and
R6
shares, call the Funds’ transfer
agent
at (800) 959-4246 and wire
payment
for your purchase order in
accordance
with the wire
instructions
listed above. |
|
Automated
Investor
Line |
Open
your account using one of the
methods
described above. |
Call
the Funds’ transfer agent’s
24-hour
Automated Investor Line at
1-800-246-5463.
You may place
your
order after you have provided
the
bank instructions that will be
requested.
|
|
By
Internet |
Open
your account using one of the
methods
described above. |
Access
your account at
www.invesco.com/us.
The proper
bank
instructions must have been
provided
on your account. You may
not
purchase shares in Retirement
and
Benefit Plans on the internet. |
|
*Class
R5 and R6 shares may only be purchased through a financial intermediary or by
telephone
at (800) 959-4246. | ||
Non-retirement
retail investors, including high net worth investors investing
directly or through a financial intermediary, are not eligible for Class R5 shares. IRAs and Employer Sponsored IRAs are also not eligible
for Class R5 shares. If you hold your shares through a financial intermediary, the terms by which you purchase, redeem and exchange shares
may differ than the terms in this prospectus depending upon the policies and procedures of your financial intermediary.
Purchase
orders will not be processed unless the account application and
purchase payment are received in good order. In accordance with the USA PATRIOT Act, if you fail to provide all the required information
requested in the current account application, your purchase order will not be processed. Additionally, federal law requires that the Funds
verify and record your identifying information.
Systematic
Purchase Plan (Available for all classes except Class R5 and R6 shares)
You
can arrange for periodic investments in any of the Funds by authorizing the Funds’ transfer agent to withdraw the amount of your
investment from your bank account on a day or dates you specify and in an amount of at least $25 per Fund for IRAs and Coverdell ESAs,
and at least $50 per Fund for all other types of accounts (a Systematic Purchase Plan). You may stop the Systematic Purchase Plan at any
time by giving the Funds’ transfer agent notice ten days prior to your next scheduled withdrawal. Certain financial advisers and
other financial intermediaries may also offer systematic purchase plans.
A-12 The
Invesco Funds
Dollar
Cost Averaging (Available for all classes except Class R5 and R6 shares)
Dollar
Cost Averaging allows you to make automatic periodic exchanges, if permitted, from one Fund to another Fund or multiple other Funds. The
account from which exchanges are to be made must have a minimum balance of $5,000 before you can use this option. Exchanges will occur
on (or about) the day of the month you specify, in the amount you specify. Dollar Cost Averaging cannot be set up for the 29th through
the 31st of the month. The minimum amount you can exchange to another Fund is $50. Your financial intermediary may offer alternative dollar
cost averaging programs with different requirements.
Automatic
Dividend and Distribution Investment
Your
dividends and distributions may be paid in cash or reinvested in the same Fund or another Fund without paying an initial sales charge.
Unless
you specify otherwise, your dividends and distributions will automatically
be reinvested in the same Fund. You must comply with the following requirements to be eligible to invest your dividends and distributions
in shares of another Fund:
◾
Your
account balance in the Fund paying the dividend or distribution must be at least $5,000; and
◾
Your
account balance in the Fund receiving the dividend or distribution must be at least $500.
If
you elect to receive your distributions by check, and the distribution amount
is $25 or less, then the amount will be automatically reinvested in the same Fund and no check will be issued. If you have elected to
receive distributions by check, and the postal service is unable to deliver checks to your address of record, then your distribution election
may be converted to having all subsequent distributions reinvested in the same Fund and no checks will be issued. With respect to certain
account types, if your check remains uncashed for six months, the Fund generally reserves the right to reinvest your distribution check
in your account at the then applicable NAV and to reinvest all subsequent distributions in shares of the Fund. Such checks will be reinvested
into the same share class of the Fund. You should contact the Funds’ transfer agent to change your distribution option, and your
request to do so must be received by the Funds’ transfer agent before the record date for a distribution in order to be effective
for that distribution. No interest will accrue on amounts represented by uncashed distribution checks.
Redeeming
Shares*
The
Funds’ transfer agent or authorized intermediary, if applicable, must receive your call before the Funds’ net asset value
determination (as defined by the applicable Fund) in order to effect the redemption at that day’s net asset value.
Your
broker or financial intermediary may charge service fees for handling
redemption transactions.
|
How
to Redeem Shares | |
|
Through
a Financial
Adviser
or Financial
Intermediary*
|
Contact
your financial adviser or financial intermediary. The Funds’
transfer
agent must receive your financial adviser’s or financial
intermediary’s
call before the Funds’ net asset value determination
(as
defined by the applicable Fund) in order to effect the redemption
at
that day’s net asset value. Please contact your financial adviser or
financial
intermediary with respect to reporting of cost basis and
available
elections for your account. |
|
By
Mail |
Send
a written request to the Funds’ transfer agent which includes: |
|
|
▪ Original
signatures of all registered owners/trustees;
▪ The
dollar value or number of shares that you wish to redeem;
▪ The
name of the Fund(s) and your account number;
▪ The
cost basis method or specific shares you wish to redeem for
tax
reporting purposes, if different than the method already on
record;
and |
|
|
▪ Signature
guarantees, if necessary (see below).
The
Funds’ transfer agent may require that you provide additional
documentation,
or information, such as corporate resolutions or
powers
of attorney, if applicable. If you are redeeming from a
Retirement
and Benefit Plan, you must complete the appropriate
distribution
form. |
|
How
to Redeem Shares | |
|
By
Telephone* |
Call
the Funds’ transfer agent at 1-800-959-4246. You will be
allowed
to redeem by telephone if:
▪ Your
redemption proceeds are to be mailed to your address on
record
(and there has been no change in your address of record
within
the last 15 days) or transferred electronically to a
pre-authorized
checking account;
▪ You
can provide proper identification information;
▪ Your
redemption proceeds do not exceed $250,000 per Fund; and
▪ You
have not previously declined the telephone redemption
privilege.
|
|
|
You
may, in limited circumstances, initiate a redemption from an
Invesco
IRA by telephone. Redemptions from Employer Sponsored
Retirement
and Benefit Plans and Employer Sponsored IRAs may be
initiated
only in writing and require the completion of the appropriate
distribution
form, as well as employer authorization. You must call the
Funds’
transfer agent before the Funds’ net asset value
determination
(as defined by the applicable Fund) in order to effect
the
redemption at that day’s net asset value. |
|
Automated
Investor Line |
Call
the Funds’ transfer agent’s 24-hour Automated Investor Line at
1-800-246-5463.
You may place your redemption order after you
have
provided the bank instructions that will be requested. |
|
By
Internet |
Place
your redemption request at www.invesco.com/us. You will be
allowed
to redeem by Internet if:
▪ You
can provide proper identification information;
▪ Your
redemption proceeds do not exceed $250,000 per Fund; and
▪ You
have already provided proper bank information.
Redemptions
from Employer Sponsored Retirement and Benefit
Plans
and Employer Sponsored IRAs may be initiated only in writing
and
require the completion of the appropriate distribution form, as
well
as employer authorization. |
|
*Class
R5 and R6 shares may only be redeemed through a financial intermediary or by
telephone
at (800) 959-4246. | |
Timing
and Method of Payment
The
Funds’ transfer agent typically expects to pay redemption proceeds to redeeming shareholders within one business day after a redemption
request is received in good order, regardless of the method a Fund uses to make such payment. However, a Fund may take up to seven days
to process a redemption request. “Good order” means that all necessary information and documentation related to the redemption
request have been provided to the Funds’ transfer agent or authorized intermediary, if applicable. If your request is not in good
order, the Funds’ transfer agent may require additional documentation in order to redeem your shares. If you redeem shares recently
purchased by check or ACH, you may be required to wait up to ten calendar days before your redemption proceeds are sent. This delay is
necessary to ensure that the purchase has cleared. You can avoid the check hold period if you pay for your shares with a certified check,
a cashier’s check or a federal wire. Payment may be postponed under unusual circumstances, as allowed by the SEC, such as when the
NYSE restricts or suspends trading.
In
addition, a temporary hold may be placed on the disbursement of redemption
proceeds from an account if there is a reasonable belief that financial exploitation of a Specified Adult (as defined below) has occurred,
is occurring, has been attempted, or will be attempted. Notice of such a delay will be provided in accordance with regulatory requirements.
This temporary hold will be for an initial period of no more than 15 business days while an internal review is performed. Should the internal
review support the belief that financial exploitation has occurred, is occurring, has been attempted or will be attempted, the temporary
hold may be extended for up to 10 additional business days. Both the initial and subsequent hold on the disbursement may be terminated
or extended by a state regulator or an agency or court of competent jurisdiction. For purposes of this paragraph, the term “Specified
Adult” refers to an individual who is (a) a natural person age 65 and older, or (b) a natural person age 18 and older who is reasonably
believed to have a mental or physical impairment that renders the individual unable to protect his or her own interests.
If
you redeem by telephone, the Funds’ transfer agent will transmit the amount
of redemption proceeds electronically to your pre-authorized bank account. Redemption checks are mailed to your address of record, via
first
A-13 The
Invesco Funds
class
U.S. mail, unless you make other arrangements with the Funds’ transfer agent.
The
Funds’ transfer agent uses reasonable procedures to confirm that instructions
communicated via telephone and the Internet are genuine, and the Funds and the Funds’ transfer agent are not liable for losses arising
from actions taken in accordance with instructions that are reasonably believed to be genuine.
A
Fund typically expects to use holdings of cash and cash equivalents and
sales of portfolio assets to meet redemption requests, both regularly and in stressed market conditions. The Funds also have the ability
to redeem in kind as further described below under “Redemptions in Kind.” Certain Funds have a line of credit,
as disclosed in such Funds’ principal investment strategy
and risk disclosures that may be used to meet redemptions in stressed market conditions.
Expedited
Redemptions (for Invesco Cash Reserve Shares of Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio only)
If
you place your redemption order by telephone, before 11:30 a.m. Eastern Time and request an expedited redemption, the Funds’ transfer
agent will transmit payment of redemption proceeds on that same day via federal wire to a bank of record on your account. If the Funds’
transfer agent receives your redemption order after 11:30 a.m. Eastern Time and before the close of the customary trading session of the
NYSE, it will transmit payment on the next business day.
Suspension
of Redemptions
The
right of redemption may be suspended or the date of payment postponed when (a) trading on the NYSE is restricted, as determined by applicable
rules and regulations of the SEC, (b) the NYSE is closed for other than customary weekend and holiday closings, (c) the SEC has by order
permitted such suspension, or (d) an emergency as determined by the SEC exists making disposition of portfolio securities or the valuation
of the net assets of the Fund not reasonably practicable. With respect to Invesco Government Money Market Fund, Invesco U.S. Government
Money Portfolio, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio, in the event that the Fund, at the end
of a business day, has invested less than 10% of its total assets in weekly liquid assets or, with respect to the retail and government
money market funds, the Fund’s price per share as computed for the purpose of distribution, redemption and repurchase, rounded to
the nearest 1%, has deviated from the stable price established by the Fund’s Board of Trustees (“Board”) or the Board,
including a majority of trustees who are not interested persons as defined in the 1940 Act, determines that such a deviation is likely
to occur, and the Board, including a majority of trustees who are not interested persons of the Fund, irrevocably has approved the liquidation
of the Fund, the Fund’s Board has the authority to suspend redemptions of Fund shares.
Liquidity
Fees and Redemption Gates
For
Invesco Premier Portfolio, if the Fund’s weekly liquid assets fall below 30% of its total assets, the Board, in its discretion,
may impose liquidity fees of up to 2% of the value of the shares redeemed and/or suspend redemptions (redemption gates). In addition,
if any such Fund’s weekly liquid assets falls below 10% of its total assets at the end of any business day, the Fund must impose
a 1% liquidity fee on shareholder redemptions unless the Board determines that not doing so is in the best interests of the Fund.
Liquidity
fees and redemption gates are most likely to be imposed, if at all,
during times of extraordinary market stress. In the event that a liquidity fee or redemption gate is imposed, the Board expects that for
the duration of its implementation and the day after which such gate or fee is terminated, the Fund would strike only one net asset value
per day, at the Fund’s last scheduled net asset value calculation time.
The
imposition and termination of a liquidity fee or redemption gate will be
reported by a Fund to the SEC on Form N-CR. Such information will also be available on the Fund’s website. In addition, a Fund will
communicate such action through a supplement to its registration statement and may further communicate such action through a press release
or by other means. If a liquidity fee is applied by the Board, it will be charged on all
redemption
orders submitted after the effective time of the imposition of the fee by the Board. Liquidity fees would reduce the amount you receive
upon redemption of your shares. In the event a Fund imposes a redemption gate, the Fund or any financial intermediary on its behalf will
not accept redemption requests until the Fund provides notice that the redemption gate has been terminated.
Redemption
requests submitted while a redemption gate is imposed will be cancelled
without further notice. If shareholders still wish to redeem their shares after a redemption gate has been lifted, they will need to submit
a new redemption request.
Liquidity
fees and redemption gates will generally be used to assist a Fund
to help preserve its market–based NAV per share. It is possible that a liquidity fee will be returned to shareholders in the form
of a distribution. The Board may, in its discretion, terminate a liquidity fee or redemption gate at any time if it believes such action
to be in the best interest of a Fund. Also, liquidity fees and redemption gates will automatically terminate at the beginning of the next
business day once a Fund’s weekly liquid assets reach at least 30% of its total assets. Redemption gates may only last up to 10
business days in any 90-day period. When a fee or a gate is in place, the Fund may elect not to permit the purchase of shares or to subject
the purchase of shares to certain conditions, which may include affirmation of the purchaser’s knowledge that a fee or a gate is
in effect. When a fee or a gate is in place, shareholders will not be permitted to exchange into or out of a Fund.
There
is some degree of uncertainty with respect to the tax treatment of liquidity
fees received by a Fund, and such tax treatment may be the subject to future IRS guidance. If a Fund receives liquidity fees, it will
consider the appropriate tax treatment of such fees to the Fund at such time.
Financial
intermediaries are required to promptly take the steps requested
by the Funds or their designees to impose or help to implement a liquidity fee or redemption gate as requested from time to time, including
the rejection of orders due to the imposition of a fee or gate or the prompt re-confirmation of orders following a notification regarding
the implementation of a fee or gate. If a liquidity fee is imposed, these steps are expected to include the submission of separate, rather
than combined, purchase and redemption orders from the time of the effectiveness of the liquidity fee or redemption gate and the submission
of such order information to the Fund or its designee prior to the next calculation of a Fund’s net asset value. Unless otherwise
agreed to between a Fund and financial intermediary, the Fund will withhold liquidity fees on behalf of financial intermediaries. With
regard to such orders, a redemption request that a Fund determines in its sole discretion has been received in good order by the Fund
or its designated agent prior to the imposition of a liquidity fee or redemption gate may be paid by the Fund despite the imposition of
a redemption gate or without the deduction of a liquidity fee. If a liquidity fee is imposed during the day, an intermediary who receives
both purchase and redemption orders from a single account holder is not required to net the purchase and redemption orders. However, the
intermediary is permitted to apply the liquidity fee to the net amount of redemptions (even if the purchase order was received prior to
the time the liquidity fee was imposed).
Where
a Financial Intermediary serves as a Fund’s agent for the purpose
of receiving orders, trades that are not transmitted to the Fund by the Financial Intermediary before the time required by the Fund or
the transfer agent may, in the Fund’s discretion, be processed on an as-of basis, and any cost or loss to the Fund or transfer agent
or their affiliates, from such transactions shall be borne exclusively by the Financial Intermediary.
Systematic
Withdrawals (Available for all classes except Class R5 and R6 shares)
You
may arrange for regular periodic withdrawals from your account in amounts equal to or greater than $50 per Fund. The Funds’ transfer
agent will redeem the appropriate number of shares from your account to provide redemption proceeds in the amount requested. You must
have a total account balance of at least $5,000 in order to establish a Systematic Redemption Plan, unless you are establishing a Required
Minimum
A-14 The
Invesco Funds
Distribution
for a Retirement and Benefit Plan. You can stop this plan at any time by giving ten days’ prior notice to the Funds’ transfer
agent.
Check
Writing
The
Funds’ transfer agent provides check writing privileges for accounts in the following Funds and share classes:
◾
Invesco
Government Money Market Fund, Invesco Cash Reserve Shares, Class AX shares, Class Y shares and Investor Class shares
◾
Invesco
U.S. Government Money Portfolio, Invesco Cash Reserve Shares and Class Y shares
◾
Invesco
Premier Portfolio, Investor Class shares
◾
Invesco
Premier U.S. Government Money Portfolio, Investor Class shares
You
may redeem shares of these Funds by writing checks in amounts of $250
or more if you have subscribed to the service by completing a Check Writing authorization form.
Check
writing privileges are not available for Retirement and Benefit Plans.
Checks are not eligible to be converted to ACH by the payee. You may not give authorization to a payee by phone to debit your account
by ACH for a debt owed to the payee.
If
you do not have a sufficient number of shares in your account to cover
the amount of the check and any applicable deferred sales charge, the check will be returned and no shares will be redeemed. Because it
is not possible to determine your account’s value in advance, you should not write a check for the entire value of your account
or try to close your account by writing a check.
A
check writing redemption request which is verifiably submitted to a Fund’s
agent before a liquidity fee or redemption gate is imposed will be considered a valid redemption and will be processed normally.
Signature
Guarantees
The
Funds’ transfer agent requires a signature guarantee in the following circumstances:
◾
When
your redemption proceeds exceed $250,000 per Fund.
◾
When
you request that redemption proceeds be paid to someone other than the registered owner of the account.
◾
When
you request that redemption proceeds be sent somewhere other than the address of record or bank of record on the account.
◾
When
you request that redemption proceeds be sent to a new address or an address that changed in the last 15 days.
The
Funds’ transfer agent will accept a guarantee of your signature by a number
of different types of financial institutions. Call the Funds’ transfer agent for additional information. Some institutions have
transaction amount maximums for these guarantees. Please check with the guarantor institution to determine whether the signature guarantee
offered will be sufficient to cover the value of your transaction request.
Redemptions
in Kind
Although
the Funds generally intend to pay redemption proceeds solely in cash, the Funds reserve the right to determine, in their sole discretion,
whether to satisfy redemption requests by making payment in securities or other property (known as a redemption in kind). Redemptions
in kind may result in transaction costs and/or market fluctuations associated with liquidating or holding the securities, respectively.
Purchases-in-Kind
You
may purchase shares of a Fund by transferring securities to a Fund in exchange for Fund shares (“in-kind purchases”). In-kind
purchases may be made only upon the Funds’ approval and determination that the securities are acceptable investments for the Fund
and are purchased consistent with the Fund’s procedures relating to in-kind purchases. The Funds reserve the right to amend or terminate
this practice at any time. You must call the Funds at (800) 959-4246 before sending any securities. Please see the SAI for additional
details.
Redemptions
by Large Shareholders
At
times, the Fund may experience adverse effects when certain large shareholders redeem large amounts of shares of the Fund. Large redemptions
may cause the Fund to sell portfolio securities at times when it would not otherwise do so. In addition, these transactions may also
accelerate
the realization of taxable income to shareholders (if applicable) if such sales of investments resulted in gains and may also increase
transaction costs and/or increase in the Fund’s expense ratio. When experiencing a redemption by a large shareholder, the Fund may
delay payment of the redemption request up to seven days to provide the investment manager with time to determine if the Fund can redeem
the request-in-kind or to consider other alternatives to lessen the harm to remaining shareholders. Under certain circumstances, however,
the Fund may be unable to delay a redemption request, which could result in the automatic processing of a large redemption that is detrimental
to the Fund and its remaining shareholders.
Redemptions
Initiated by the Funds
If
your account (Class A, C, P, S and Investor Class shares only) has been open at least one year, you have not made an additional purchase
in the account during the past six calendar months, and the value of your account falls below $500 for three consecutive months, the Funds
have the right to redeem the account after giving you 60 days’ prior written notice. You may avoid having your account redeemed
during the notice period by bringing the account value up to $500 or by initiating a Systematic Purchase Plan.
A
financial intermediary may have a different policy regarding redemptions
of accounts with small balances. The Fund is not responsible for any small account balance policies imposed by financial intermediaries
or for notifying shareholders of any changes to them. See “Waivers Available Through Certain Financial Intermediaries and Other
Financial Intermediary-Specific Arrangements” for more information on certain intermediary-specific small account balance policies.
Please consult with your financial intermediary if you have any questions regarding their policies.
If
a Fund determines that you have not provided a correct Social Security
or other tax identification number on your account application, or the Fund is not able to verify your identity as required by law, the
Fund may, at its discretion, redeem the account and distribute the proceeds to you.
In
order to separate retail investors (natural persons) and non-retail investors,
the Invesco Premier Portfolio reserve the right to redeem shares in any account that the Funds cannot confirm to their satisfaction are
beneficially owned by natural persons. The Funds will provide advance written notice of their intent to make any such involuntary redemptions.
The Funds reserve the right to redeem shares in any account that they cannot confirm to their satisfaction are beneficially owned by natural
persons, after providing advance notice.
Neither
a Fund nor its investment adviser will be responsible for any loss
in an investor’s account or tax liability resulting from an involuntary redemption.
Minimum
Account Balance (Available for all classes except Class R5 and R6 shares)
A
low balance fee of $12 per year may be deducted in the fourth quarter of each year from all accounts held in the Funds (each a Fund Account)
with a value less than the low balance amount (the Low Balance Amount) as determined from time to time by the Funds and the Adviser. The
Funds and the Adviser generally expect the Low Balance Amount to be $750, but such amount may be adjusted for any year depending on various
factors, including market conditions. The Low Balance Amount and the date on which it will be deducted from any Fund Account will be posted
on our website, www.invesco.com/us, on or about November 1 of each year. This fee will be payable to the Funds’ transfer agent by
redeeming from a Fund Account sufficient shares owned by a shareholder and will be used by the Funds’ transfer agent to offset amounts
that would otherwise be payable by the Funds to the Funds’ transfer agent under the Funds’ transfer agency agreement with
the Funds’ transfer agent. The low balance fee does not apply to participant accounts in advisory programs or to Employer Sponsored
Retirement and Benefit Plans.
Exchanging
Shares
You
may, under certain circumstances, exchange shares in one Fund for those of another Fund. An exchange is the purchase of shares in one
Fund which is paid for with the proceeds from a redemption of shares of another
A-15 The
Invesco Funds
Fund
effectuated on the same day. Any gain on the transaction may be subject to federal income tax. Accordingly, the procedures and processes
applicable to redemptions of Fund shares, as discussed under the heading “Redeeming Shares” above, will apply. Before requesting
an exchange, review the prospectus of the Fund you wish to acquire.
All
exchanges are subject to the limitations set forth in the prospectuses of
the Funds. If you wish to exchange shares of one Fund for those of another Fund, you must consult the prospectus of the Fund whose shares
you wish to acquire to determine whether the Fund is offering shares to new investors and whether you are eligible to acquire shares of
that Fund.
Permitted
Exchanges
Except
as otherwise provided herein or in the SAI, you generally may exchange your shares for shares of the same class of another Fund. The following
table shows generally permitted exchanges from one Fund to another Fund (exceptions listed below under “Exchanges Not Permitted”):
|
Exchange
From |
Exchange
To |
|
Invesco
Cash Reserve Shares |
Class
A, C, R, Investor Class |
|
| |
|
Class
A |
Class
A, Investor Class, Invesco Cash Reserve Shares* |
|
| |
|
Class
A2 |
Class
A, Investor Class, Invesco Cash Reserve Shares |
|
| |
|
Class
AX |
Class
A, AX, Investor Class, Invesco Cash Reserve Shares |
|
| |
|
Investor
Class |
Class
A, Investor Class |
|
| |
|
Class
P |
Class
A, Invesco Cash Reserve Shares |
|
| |
|
Class
S |
Class
A, S, Invesco Cash Reserve Shares |
|
| |
|
Class
C |
Class
C* |
|
| |
|
Class
CX |
Class
C, CX |
|
| |
|
Class
R |
Class
R* |
|
| |
|
Class
R5 |
Class
R5 |
|
| |
|
Class
R6 |
Class
R6 |
|
| |
|
Class
Y |
Class
Y* |
|
|
|
|
* You
may exchange Class Y shares of Invesco U.S. Government Money Portfolio for Class A, C
or
R shares of any other Fund as long as you are otherwise eligible for such share class. If you
exchange
Class Y shares of Invesco U.S. Government Money Portfolio for Class A, C or R shares
of
any other Fund, you may exchange those Class A, C or R shares back into Class Y shares of
Invesco
U.S. Government Money Portfolio, but not Class Y shares of any other Fund. | |
Exchanges
into Invesco Senior Loan Fund
Invesco
Senior Loan Fund is a closed-end interval fund that continuously offers its shares pursuant to the terms and conditions of its prospectus.
The Adviser is the investment adviser for the Invesco Senior Loan Fund. As with the Invesco Funds, you generally may exchange your shares
of Class A (Invesco Cash Reserve Shares of Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio) or Class
C of any Invesco Fund for shares of Class A or Class C, respectively, of Invesco Senior Loan Fund. Please refer to the prospectus for
the Invesco Senior Loan Fund for more information, including limitations on exchanges out of Invesco Senior Loan Fund.
Exchanges
Not Permitted
The
following exchanges are not permitted:
◾
Investor
Class shares cannot be exchanged for Class A shares of any Fund which offers Investor Class shares.
◾
Class A2
shares of Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund cannot be exchanged for Class A shares
of those Funds.
◾
Invesco
Cash Reserve Shares cannot be exchanged for Class C or R shares if the shares being exchanged were acquired by exchange from Class A
shares of any Fund.
◾
All
existing systematic exchanges and reallocations will cease and these options will no longer be available on all 403(b) prototype plans.
◾
Class
A, C or R shares of a Fund acquired by exchange of Class Y shares of Invesco U.S. Government Money Portfolio cannot be exchanged for Class
Y shares of any Fund, except Class Y shares of Invesco U.S. Government Money Portfolio.
Exchange
Conditions
Shares
must have been held for at least one day prior to the exchange with the exception of dividends and distributions that are reinvested.
Under
unusual market conditions, a Fund may delay the exchange of shares
for up to five business days if it determines that it would be materially disadvantaged by the immediate transfer of exchange proceeds.
The exchange privilege is not an option or right to purchase shares. Any of the participating Funds or the distributor may modify or terminate
this privilege at any time.
Initial
Sales Charges, CDSCs and 12b-1 Fees Applicable to Exchanges
You
may be required to pay an initial sales charge when exchanging from a Fund with a lower initial sales charge than the one into which you
are exchanging. If you exchange into shares that are subject to a CDSC, the Funds’ transfer agent will begin the holding period
for purposes of calculating the CDSC on the date you made your initial purchase.
In
addition, as a result of differences in the forms of distribution plans among
the Funds, certain exchanges of Class A shares, Class C shares, and Class R shares of a Fund for the same class of shares of another Fund
may result in investors paying a higher or a lower 12b-1 fee on the Fund being exchanged into. Please refer to the prospectus fee table
and financial highlights table and the SAI for more information on the fees and expenses, including applicable 12b-1 fees, of the Fund
you wish to acquire.
Share
Class Conversions
Shares
of one class of a Fund may be converted into shares of another class of the same Fund, provided that you are eligible to buy that share
class. Investors who hold Fund shares through a financial intermediary that does not have an agreement to make certain share classes of
the Funds available or that cannot systematically support the conversion may not be eligible to convert their shares. Furthermore, your
financial intermediary may have discretion to effect a conversion on your behalf. Consult with your financial intermediary for details.
Any CDSC associated with the converting shares will be assessed immediately prior to the conversion to the new share class. The conversion
of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes and no gain
or loss will be reported on the transaction. See the applicable prospectus for share class information.
Fees
and expenses differ between share classes. You should read the prospectus
for the share class into which you are seeking to convert your shares prior to the conversion.
Automatic
Conversion of Class C and Class CX Shares
Class
C and Class CX shares held for eight years after purchase are eligible for automatic conversion into Class A and Class AX shares of the
same Fund, respectively, except that for the Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio, the Funds’
Class C and/or Class CX shares would be eligible to automatically convert into the Fund’s Invesco Cash Reserve Share Class and all
existing Class C shares of Invesco Short Term Municipal Fund will automatically convert to Class A shares of that Fund at the end of June
2022 (the Conversion Feature). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month
following the eighth anniversary after a purchase of Class C or Class CX shares (the Conversion Date). The first conversion of Class C
and Class CX shares to Class A and Class AX shares under this policy would occur at the end of December 2020 for all Class C and Class
CX shares that were held for more than eight years as of November 30, 2020.
Automatic
conversions pursuant to the Conversion Feature will be on the basis
of the NAV per share, without the imposition of any sales charge (including a CDSC), fee or other charge. All such automatic conversions
of Class C and Class CX shares will constitute tax-free exchanges for federal income tax purposes.
Class
C and Class CX shares of a Fund acquired through a reinvestment of
dividends and distributions will convert to Class A and Class AX shares, respectively, of the Fund (or Invesco Cash Reserve shares for
Invesco
A-16 The
Invesco Funds
Government
Money Market Fund) on the Conversion Date pro rata with the converting Class C and Class CX shares of that Fund that were not acquired
through reinvestment of dividends and distributions.
Class
C or Class CX shares held through a financial intermediary in existing
omnibus Employer Sponsored Retirement and Benefit Plans and other omnibus accounts may be converted pursuant to the Conversion Feature
by the financial intermediary once it is determined that the Class C or Class CX shares have been held for the required holding period.
It is the financial intermediary’s (and not the Fund’s) responsibility to keep records and to ensure that the shareholder
is credited with the proper holding period as the Fund and its agents may not have transparency into how long a shareholder has held Class
C or Class CX shares for purposes of determining whether such Class C or Class CX shares are eligible to automatically convert pursuant
to the Conversion Feature. In order to determine eligibility for automatic conversion in these circumstances, it is the responsibility
of the shareholder or their financial intermediary to determine that the shareholder is eligible to exercise the Conversion Feature, and
the shareholder or their financial intermediary may be required to maintain records that substantiate the holding period of Class C or
Class CX shares.
In
addition, a financial intermediary may sponsor and/or control programs
or platforms that impose a different conversion schedule or eligibility requirements for conversions of Class C or Class CX shares. In
these cases, Class C and Class CX shares of certain shareholders may not be eligible for automatic conversion pursuant to the Conversion
Feature as described above. The Fund has no responsibility for overseeing, monitoring or implementing a financial intermediary’s
process for determining whether a shareholder meets the required holding period for automatic conversion. Please consult with your financial
intermediary if you have any questions regarding the Conversion Feature.
Share
Class Conversions Not Permitted
The
following share class conversions are not permitted:
◾
Conversions
into Class A from Class A2 of the same Fund.
◾
Conversions
into Class A2, Class AX, Class CX, Class P or Class S of the same Fund.
Rights
Reserved by the Funds
Each
Fund and its agents reserve the right at any time to:
◾
Reject
or cancel all or any part of any purchase or exchange order.
◾
Modify
any terms or conditions related to the purchase, redemption or exchange of shares of any Fund.
◾
Reject
or cancel any request to establish a Systematic Purchase Plan or Systematic Redemption Plan.
◾
Modify
or terminate any sales charge waivers or exceptions.
◾
Suspend,
change or withdraw all or any part of the offering made by this prospectus.
Excessive
Short-Term Trading Activity (Market Timing) Disclosures
While
the Funds provide their shareholders with daily liquidity, their investment programs are designed to serve long-term investors and are
not designed to accommodate excessive short-term trading activity in violation of our policies described below. Excessive short-term trading
activity in the Funds’ shares (i.e., a purchase of Fund shares followed shortly thereafter by a redemption of such shares, or vice
versa) may hurt the long-term performance of certain Funds by requiring them to maintain an excessive amount of cash or to liquidate portfolio
holdings at a disadvantageous time, thus interfering with the efficient management of such Funds by causing them to incur increased brokerage
and administrative costs. Where excessive short-term trading activity seeks to take advantage of arbitrage opportunities from stale prices
for portfolio securities, the value of Fund shares held by long-term investors may be diluted. The Board has adopted policies and procedures
designed to discourage excessive or short-term trading of Fund shares for all Funds except the money market funds, Invesco Conservative
Income Fund, and Invesco Short Term Municipal Fund. However, there is the risk that these Funds’ policies and procedures will prove
ineffective in whole or in part to detect or prevent excessive or
short-term
trading. These Funds may alter their policies at any time without prior notice to shareholders if the Adviser believes the change would
be in the best interests of long-term shareholders.
Invesco
and certain of its corporate affiliates (Invesco and such affiliates,
collectively, the Invesco Affiliates) currently use the following tools designed to discourage excessive short-term trading in the retail
Funds:
◾
Trade
activity monitoring.
◾
Discretion
to reject orders.
◾
Purchase
blocking.
◾
The
use of fair value pricing consistent with the valuation policy approved by the Board and related procedures.
Each
of these tools is described in more detail below. Although these tools
are designed to discourage excessive short-term trading, you should understand that none of these tools alone nor all of them taken together
eliminate the possibility that excessive short-term trading activity in the Funds will occur. Moreover, each of these tools involves judgments
that are inherently subjective. Invesco Affiliates seek to make these judgments to the best of their abilities in a manner that they believe
is consistent with long-term shareholder interests.
Money
Market Funds. The Boards of Invesco Government Money Market Fund,
Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio (the money market
funds) have not adopted any policies and procedures that would limit frequent purchases and redemptions of such Funds’ shares. The
Boards of the money market funds considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal. Nonetheless, to the extent that a money market fund must maintain additional cash and/or
securities with short-term durations in greater amounts than may otherwise be required or borrow to honor redemption requests, the money
market fund’s yield could be negatively impacted.
The
Boards of the money market funds do not believe that it is appropriate
to adopt any such policies and procedures for the money market funds for the following reasons:
◾
The
money market funds are offered to investors as cash management vehicles; therefore, investors should be able to purchase and redeem shares
regularly and frequently.
◾
One
of the advantages of a money market fund as compared to other investment options is liquidity. Any policy that diminishes the liquidity
of the money market funds will be detrimental to the continuing operations of such Funds.
◾
With
respect to the money market funds maintaining a constant net asset value, the money market funds’ portfolio securities are valued
on the basis of amortized cost, and such Funds seek to maintain a constant net asset value. As a result, the money market funds are not
subject to price arbitrage opportunities.
◾
With
respect to the money market funds maintaining a constant net asset value, because such Funds seek to maintain a constant net asset value,
investors are more likely to expect to receive the amount they originally invested in the Funds upon redemption than other mutual funds.
Invesco
Conservative Income Fund. The Board of Invesco Conservative Income
Fund has not adopted any policies and procedures that would limit frequent purchases and redemptions of such Fund’s shares. The
Board of Invesco Conservative Income Fund considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal especially in light of the reasons for not having such a policy as described below. Nonetheless,
to the extent that the Fund must maintain additional cash and/or securities with short-term durations in greater amounts than may otherwise
be required or borrow to honor redemption requests, the Fund’s yield could be negatively impacted.
The
Board of the Invesco Conservative Income Fund does not believe that
it is appropriate to adopt any such policies and procedures for the Fund for the following reasons:
◾
The
Fund is offered to investors as a cash management vehicle; investors perceive an investment in the Fund as an alternative to cash and
must be able to purchase and redeem shares regularly and frequently.
A-17 The
Invesco Funds
◾
One
of the advantages of the Fund as compared to other investment options is liquidity. Any policy that diminishes the liquidity of the Fund
will be detrimental to the continuing operations of the Fund.
Excessive
trading activity in the Fund’s shares may cause the Fund to incur
increased brokerage and administrative costs.
The
Fund and its agent reserve the right at any time to reject or cancel any
part of any purchase order. This could occur if the Fund determines that such purchase may disrupt the Fund’s operation or performance.
Invesco
Short Term Municipal Fund. The Board of Invesco Short Term Municipal
Fund has not adopted any policies and procedures that would limit frequent purchases and redemptions of such Fund’s shares. The
Board of Invesco Short Term Municipal Fund considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal, especially in light of the reasons for not having such a policy as described below. Nonetheless,
to the extent that the Fund must maintain additional cash and/or securities with short-term durations in greater amounts than may otherwise
be required or borrow to honor redemption requests, the Fund’s yield could be negatively impacted.
The
Board of Invesco Short Term Municipal Fund does not believe that it is
appropriate to adopt any such policies and procedures for the Fund for the following reasons:
◾
The
Fund is designed to address the needs of retail investors who seek liquidity in their investment and seek the ability to purchase and
redeem shares at any time.
◾
Any
policy that diminishes the ability of shareholders to purchase and redeem shares of the Fund will be detrimental to the continuing operations
of the Fund.
◾
The
Fund generally invests in short duration liquid investment grade municipal securities.
Excessive
trading activity in the Fund’s shares may cause the Fund to incur
increased brokerage and administrative costs. The Fund and its agent reserve the right at any time to reject or cancel any part of any
purchase order. This could occur if the Fund determines that such purchase may disrupt the Fund’s operation or performance.
Trade
Activity Monitoring
Invesco
Affiliates monitor selected trades on a daily basis in an effort to detect excessive short-term trading activities. If, as a result of
this monitoring, Invesco Affiliates believe that a shareholder has engaged in excessive short-term trading, they will seek to act in a
manner that they believe is consistent with the best interests of long-term investors, which may include taking steps such as (i) asking
the shareholder to take action to stop such activities or (ii) refusing to process future purchases or exchanges related to such activities
in the shareholder’s accounts other than exchanges into a money market fund. Invesco Affiliates will use reasonable efforts to apply
the Funds’ policies uniformly given the practical limitations described above.
The
ability of Invesco Affiliates to monitor trades that are made through accounts
that are maintained by intermediaries (rather than the Funds’ transfer agent) and through conduit investment vehicles may be limited
or non-existent.
Discretion
to Reject Orders
If
a Fund or an Invesco Affiliate determines, in its sole discretion, that your short-term trading activity is excessive, the Fund may, in
its sole discretion, reject any additional purchase and exchange orders. This discretion may be exercised with respect to purchase or
exchange orders placed directly with the Funds’ transfer agent or through a financial intermediary.
Purchase
Blocking Policy
The
Funds (except those listed below) have adopted a policy under which any shareholder redeeming shares having a value of $50,000 or more
from a Fund on any trading day will be precluded from investing in that Fund for 30 calendar days after the redemption transaction date.
The policy applies to redemptions and purchases that are part of exchange transactions. Under the purchase blocking policy, certain purchases
will not be prevented and certain redemptions will not trigger a purchase block, such as: purchases
and redemptions
of shares having a value of less than $50,000; systematic purchase, redemption and exchange account options; transfers of shares within
the same Fund; non-discretionary rebalancing in fund-of-funds; asset allocation features; fee-based accounts; account maintenance fees;
small balance account fees; plan-level omnibus Retirement and Benefit Plans; death and disability and hardship distributions; loan transactions;
transfers of assets; Retirement and Benefit Plan rollovers; IRA conversions and re-characterizations; and mandatory distributions from
Retirement and Benefit Plans.
The
Funds reserve the right to modify any of the parameters (including those
not listed above) of the purchase blocking policy at any time. Further, the purchase blocking policy may be waived with respect to specific
shareholder accounts in those instances where the Adviser determines that its surveillance procedures are adequate to detect frequent
trading in Fund shares.
If
an account is maintained by a financial intermediary whose systems are
unable to apply Invesco’s purchase blocking policy, the Adviser will accept the establishment of an account only if the Adviser
believes the policies and procedures are reasonably designed to enforce the frequent trading policies of the Funds. You should refer to
disclosures provided by the financial intermediary with which you have an account to determine the specific trading restrictions that
apply to you. If the Adviser identifies any activity that may constitute frequent trading, it reserves the right to contact the intermediary
and request that the intermediary either provide information regarding an account owner’s transactions or restrict the account owner’s
trading. There is no guarantee that all instances of frequent trading in Fund shares will be prevented.
The
purchase blocking policy does not apply to Invesco Conservative Income
Fund, Invesco Short Term Municipal Fund, Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government
Money Portfolio and Invesco U.S. Government Money Portfolio.
Pricing
of Shares
Determination
of Net Asset Value
The
price of each Fund’s shares is the Fund’s net asset value per share. The Funds (except Invesco Government Money Market Fund,
Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio) value portfolio
securities for which market quotations are readily available at market value. Securities and other assets quoted in foreign currencies
are valued in U.S. dollars based on the prevailing exchange rates on that day. The Funds (except Invesco Government Money Market Fund,
Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio) value securities
and assets for which market quotations are unavailable at their “fair value,” which is described below. Invesco Government
Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio
value portfolio securities on the basis of amortized cost, which approximates market value. This method of valuation is designed to enable
a Fund to price its shares at $1.00 per share. The Funds cannot guarantee their net asset value will always remain at $1.00 per share.
Securities and other assets quoted in foreign currencies are valued in U.S. dollars based on the prevailing exchange rates on that day.
The Fund values securities and assets for which market quotations are unavailable at their “fair value,” which is described
below.
Even
when market quotations are available, they may be stale or not
representative of market value in the Adviser’s judgment (“unreliable”)
because the security is not traded frequently, trading on the security
ceased before the close of the trading market or issuer specific events occurred after the security ceased trading or because of the passage
of time between the close of the market on which the security trades and the close of the NYSE and when the Fund calculates its net asset
value. Issuer specific events may cause the last market quotation to be unreliable. Such events may include a merger or insolvency, events
that affect a geographical area or an industry segment, such as political events or natural disasters, or market events, such as a significant
movement in the U.S. market. Where
A-18 The
Invesco Funds
the Adviser
determines that the closing price of the security is stale or unreliable, the Adviser will value the security at its fair value.
A
fair value price is an estimated price that requires consideration of all appropriate factors, including indications of fair value available
from pricing services. Fair value pricing involves judgment and a Fund that uses fair value methodologies may value securities higher
or lower than another Fund using market quotations or its own fair value methodologies to price the same securities. Investors who purchase
or redeem Fund shares on days when the Fund is holding fair-valued securities may receive a greater or lesser number of shares, or higher
or lower redemption proceeds, than they would have received if the Fund had not fair-valued the security or had used a different methodology.
The
Board has designated the Adviser to perform the daily determination
of fair value prices in accordance with Board approved
policies and related procedures,
subject to the Board’s oversight. Fair value pricing methods
and pricing services can change from time to time.
The
intended effect of applying fair value pricing is to compute an NAV that
accurately reflects the value of a Fund’s portfolio at the time that the NAV is calculated. An additional intended effect is to
discourage those seeking to take advantage of arbitrage opportunities resulting from “stale” prices and to mitigate the dilutive
impact of any such arbitrage. However, the application of fair value pricing cannot eliminate the possibility that arbitrage opportunities
will exist.
Specific
types of securities are valued as follows:
Senior
Secured Floating Rate Loans and Senior Secured Floating Rate Debt
Securities. Senior secured floating rate loans and senior secured
floating rate debt securities are fair valued using evaluated quotes provided by an independent pricing service. Evaluated quotes provided
by the pricing service may reflect appropriate factors such as market quotes, ratings, tranche type, industry, company performance, spread,
individual trading characteristics, institution-size trading in similar groups of securities and other market data.
Domestic
Exchange Traded Equity Securities. Market quotations are generally
available and reliable for domestic exchange traded equity securities. If market quotations are not available or are unreliable, the Adviser
will value the security at fair value in good faith using the valuation policy approved by the Board and related procedures.
Foreign
Securities. If market quotations are available and reliable for
foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign
securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular
security and the close of the customary trading session on the NYSE events occur that are significant and may make the closing price unreliable,
the Fund may fair value the security. If an issuer specific event has occurred that the Adviser determines, in its judgment, is likely
to have affected the closing price of a foreign security, it will price the security at fair value. The Adviser also relies on a screening
process from a pricing vendor to indicate the degree of certainty, based on historical data, that the closing price in the principal market
where a foreign security trades is not the current market value as of the close of the NYSE. For foreign securities where the Adviser
believes, at the approved degree of certainty, that the price is not reflective of current market value, the Adviser will use the indication
of fair value from the pricing service to determine the fair value of the security. The pricing vendor, pricing methodology or degree
of certainty may change from time to time.
Fund
securities primarily traded on foreign markets may trade on days that
are not business days of the Fund. Because the net asset value of Fund shares is determined only on business days of the Fund, the value
of the portfolio securities of a Fund that invests in foreign securities may change on days when you will not be able to purchase or redeem
shares of the Fund.
Fixed
Income Securities. Fixed income securities, such as government,
corporate, asset-backed and municipal bonds, convertible securities, including high yield or junk bonds, and loans, generally are valued
on the basis of prices provided by independent pricing services. Prices provided by the pricing services may be determined without exclusive
reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in
similar
groups of securities, developments related to special securities, dividend rate, maturity and other market data. Pricing services generally
value fixed income securities assuming orderly transactions of institutional round lot size, but a Fund may hold or transact in the same
securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Prices received from pricing
services are fair value prices. In addition, if the price provided by the pricing service and independent quoted prices are unreliable,
the Adviser will fair value the security using the valuation policy approved by the Board and related procedures.
Short-term
Securities. Invesco Government Money Market Fund, Invesco Premier
Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio value all their securities at amortized
cost. Invesco Limited Term Municipal Income Fund values variable rate securities that have an unconditional demand or put feature exercisable
within seven days or less at par, which reflects the market value of such securities.
Futures
and Options. Futures contracts are valued at the final settlement
price set by the exchange on which they are principally traded. U.S.
exchange-traded options are valued at the mean between the last
bid and asked prices from the exchange on which they principally trade. Non-U.S. exchange-traded options are valued at the final settlement
price set by
the exchange on which they trade. Options not listed on an exchange and swaps generally are valued using pricing provided from independent
pricing services.
Swap
Agreements. Swap Agreements are fair valued using an evaluated
quote provided by an independent pricing service. Evaluated quotes provided by the pricing service are based on a model that may include
end of day net present values, spreads, ratings, industry and company performance.
Open-end
Funds. If a Fund invests in other open-end funds, other than open-end
funds that are exchange traded, the investing Fund will calculate its net asset value using the net asset value of the underlying fund
in which it invests, and the prospectuses for such open-end funds explain the circumstances under which they will use fair value pricing
and the effects of using fair value pricing.
Each
Fund, except for Invesco Government Money Market Fund, Invesco Premier
Portfolio and Invesco Premier U.S. Government Money Portfolio, generally determines the net asset value of its shares on each day the
NYSE is open for trading (a business day) as of approximately 4:00 p.m. Eastern Time (the customary close of regular trading) or earlier
in the case of a scheduled early close. In the event of an unscheduled early close of the NYSE, each Fund, except for Invesco Government
Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio, generally still will determine the net
asset value of its shares as of 4:00 p.m. Eastern Time on that business day. Portfolio securities traded on the NYSE would be valued at
their closing prices unless the Adviser determines
that a “fair value” adjustment is appropriate due to subsequent events occurring after an early close consistent with the
valuation policy approved
by the Board and related procedures. Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government
Money Portfolio will generally determine the net asset value of their shares at 5:30 p.m. Eastern Time on each business day. A business
day for Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio is any day
that (1) both the Federal Reserve Bank of New York and a Fund’s custodian are open for business and (2) the primary trading markets
for the Fund’s portfolio instruments are open and the Fund’s management believes there is an adequate market to meet purchase
and redemption requests. Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money
Portfolio are authorized not to open for trading on a day that is otherwise a business day if the Securities Industry and Financial Markets
Association (SIFMA) recommends that government securities dealers not open for trading; any such day will not be considered a business
day. Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio, Invesco
U.S. Government Money Portfolio also may close early on a business day if SIFMA recommends that government securities dealers close early.
If
A-19 The
Invesco Funds
Invesco
Government Money Market Fund, Invesco Premier Portfolio or Invesco Premier U.S. Government Money Portfolio uses its discretion to
close early on a business day, the Fund will calculate its net asset value as of the time of such closing Invesco Premier Portfolio and
Invesco U.S. Government Money Portfolio are authorized to not open for trading on a day that is otherwise a business day if the NYSE recommends
that government securities dealers not open for trading; any such day will not be considered a business day. Invesco Premier Portfolio
also may close early on a business day if the NYSE recommends that government securities dealers close early.
For
financial reporting purposes and shareholder transactions on the last
day of the fiscal quarter, transactions are normally accounted for on a trade date basis. For purposes of executing shareholder transactions
in the normal course of business (other than shareholder transactions at a fiscal period-end), each Fund’s portfolio securities
transactions are recorded no later than the first business day following the trade date.
The
Invesco Advantage International Fund, Invesco Balanced-Risk Allocation
Fund, Invesco Balanced-Risk Commodity Strategy Fund, Invesco Fundamental Alternatives Fund, Invesco Global Allocation Fund, Invesco Global
Strategic Income Fund, Invesco Gold & Special Minerals Fund, Invesco High Yield Bond Factor Fund, Invesco International Bond Fund
and Invesco Macro Allocation Strategy Fund may each invest up to 25% of their total assets in shares of their respective subsidiaries
(the Subsidiaries). The Subsidiaries offer to redeem all or a portion of their shares at the current net asset value per share every regular
business day. The value of shares of the Subsidiaries will fluctuate with the value of the respective Subsidiary’s portfolio investments.
The Subsidiaries price their portfolio investments pursuant to the same pricing and valuation methodologies and procedures used by the
Funds, which require, among other things, that each of the Subsidiaries’ portfolio investments be marked-to-market (that is, the
value on each of the Subsidiaries’ books changes) each business day to reflect changes in the market value of the investment.
Each
Fund’s current net asset value per share is made available on the Funds’
website at www.invesco.com/us.
Fair
Value Pricing
Securities
owned by a Fund (except Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio
and Invesco U.S. Government Money Portfolio) are to be valued at current market value if market quotations are readily available. All
other securities and assets of a Fund for which market quotations are not readily available are to be valued at fair value determined
in good faith consistent with the valuation policy approved by the Board and related procedures. An effect of fair value pricing may be
to reduce the ability of frequent traders to take advantage of arbitrage opportunities resulting from potentially “stale”
prices of portfolio holdings. However, it cannot eliminate the possibility of frequent trading.
The
price a Fund could receive upon the sale of any investment may differ
from the Adviser's valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair
valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions
(i.e., publicly traded company multiples, growth rate, time to exit), to determine a methodology that will result in a valuation that
the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value
from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and
the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the
investment.
Timing
of Orders
Each
Fund prices purchase, exchange and redemption orders at the net asset value next calculated by the Fund after the Fund’s transfer
agent, authorized agent or designee receives an order in good order for the Fund. Purchase, exchange and redemption orders must be received
prior to the close of business on a business day, as defined by the applicable Fund, to receive that day’s net asset value. Any
applicable sales charges are applied at the time an order is processed.
Currently,
certain financial intermediaries may serve as agents for the Funds
and accept orders on their behalf. Where a financial intermediary serves as agent, the order is priced at the Fund’s net asset value
next calculated after it is accepted by the financial intermediary. In such cases, if requested by a Fund, the financial intermediary
is responsible for providing information with regard to the time that such order for purchase, redemption or exchange was received. Orders
submitted through a financial intermediary that has not received authorization to accept orders on a Fund’s behalf are priced at
the Fund’s net asset value next calculated by the Fund after it receives the order from the financial intermediary and accepts it,
which may not occur on the day submitted to the financial intermediary.
Additional
Information Regarding Deferred Tax Liability (only applicable to the Invesco Steelpath Funds)
In
calculating the Fund’s daily NAV, the Fund will, among other things, account for its deferred tax liability and/or asset balances.
As a result, any deferred tax liability and/or asset is reflected in the Fund’s daily NAV.
The
Fund will accrue a deferred income tax liability balance, at the U.S. federal
corporate income tax rate plus an estimated state and local income tax rate for its future tax liability associated with MLP distributions
considered to be a return of capital, as well as for its future tax liability associated with the capital appreciation of its investments.
The Fund’s current and deferred tax liability, if any, will depend upon the Fund’s net investment gains and losses and realized
and unrealized gains and losses on investments and therefore may vary greatly from year to year depending on the nature of the Fund’s
investments, the performance of those investments and general market conditions. Any deferred tax liability balance will reduce the Fund’s
NAV. Upon the Fund’s sale of an MLP security, the Fund may be liable for previously deferred taxes.
The
Fund will accrue, in accordance with generally accepted accounting principles,
a deferred tax asset balance, which reflects an estimate of the Fund’s future tax benefit associated with net operating losses and
unrealized losses. Any deferred tax asset balance will increase the Fund’s NAV. To the extent the Fund has a deferred tax asset
balance, the Fund will assess, in accordance with generally accepted accounting principles, whether a valuation allowance, which would
offset the value of some or all of the Fund’s deferred tax asset balance, is required. Pursuant to Financial Accounting Standards
Board Accounting Standards Codification 740 (FASB ASC 740), the Fund will assess a valuation allowance to reduce some or all of the deferred
tax asset balance if, based on the weight of all available evidence, both negative and positive, it is more likely than not that some
or all of the deferred tax asset will not be realized. The Fund will use judgment in considering the relative impact of negative and positive
evidence. The weight given to the potential effect of negative and positive evidence will be commensurate with the extent to which such
evidence can be objectively verified. The Fund’s assessment considers, among other matters, the nature, frequency and severity of
current and cumulative losses, the duration of statutory carry forward periods and the associated risk that operating loss and capital
loss carry forwards may be limited or expire unused, and unrealized gains and losses on investments. Consideration is also given to market
cycles, the severity and duration of historical deferred tax assets, the impact of redemptions, and the level of MLP distributions. The
Fund will assess whether a valuation allowance is required to offset some or all of any deferred tax asset in connection with the calculation
of the Fund’s NAV per share each day; however, to the extent the final valuation allowance differs from the estimates the Fund used
in calculating the Fund’s daily NAV, the application of such final valuation allowance could have a material impact on the Fund’s
NAV.
The
Fund’s deferred tax asset and/or liability balances are estimated using
estimates of effective tax rates expected to apply to taxable income in the years such balances are realized. The Fund will rely to some
extent on information provided by MLPs in determining the extent to which distributions received from MLPs constitute a return of capital,
which may not be provided to the Fund on a timely basis, to estimate the Fund’s deferred tax liability and/or asset balances for
purposes of financial statement reporting and determining its NAV. If such information is not
A-20 The
Invesco Funds
received
from such MLPs on a timely basis, the Fund will estimate the extent to which distributions received from MLPs constitute a return of capital
based on average historical tax characterization of distributions made by MLPs. The Fund’s estimates regarding its deferred tax
liability and/or asset balances are made in good faith; however, the daily estimate of the Fund’s deferred tax liability and/or
asset balances used to calculate the Fund’s NAV could vary dramatically from the Fund’s actual tax liability. Actual income
tax expense, if any, will be incurred over many years, depending on if and when investment gains and losses are realized, the then-current
basis of the Fund’s assets and other factors. As a result, the determination of the Fund’s actual tax liability may have a
material impact on the Fund’s NAV. The Fund’s daily NAV calculation will be based on then current estimates and assumptions
regarding the Fund’s deferred tax liability and/or asset balances and any applicable valuation allowance, based on all information
available to the Fund at such time. From time to time, the Fund may modify its estimates or assumptions regarding its deferred tax liability
and/or asset balances and any applicable valuation allowance as new information becomes available. Modifications of the Fund’s estimates
or assumptions regarding its deferred tax liability and/or asset balances and any applicable valuation allowance, changes in generally
accepted accounting principles or related guidance or interpretations thereof, limitations imposed on net operating losses (if any) and
changes in applicable tax law could result in increases or decreases in the Fund’s NAV per share, which could be material.
Taxes
(applicable to all Funds except for the Invesco SteelPath Funds and Invesco Master Loan Fund)
A
Fund intends to qualify each year as a regulated investment company (RIC) and, as such, is not subject to entity-level tax on the income
and gain it distributes to shareholders. If you are a taxable investor, dividends and distributions you receive from a Fund generally
are taxable to you whether you reinvest distributions in additional Fund shares or take them in cash. Every year, you will be sent information
showing the amount of dividends and distributions you received from a Fund during the prior calendar year. In addition, investors in taxable
accounts should be aware of the following basic tax points as supplemented below where relevant:
Fund Tax
Basics
◾
A
Fund earns income generally in the form of dividends or interest on its investments. This income, less expenses incurred in the operation
of a Fund, constitutes the Fund’s net investment income from which dividends may be paid to you. If you are a taxable investor,
distributions of net investment income generally are taxable to you as ordinary income.
◾
Distributions
of net short-term capital gains are taxable to you as ordinary income. A Fund with a high portfolio turnover rate (a measure of how frequently
assets within a Fund are bought and sold) is more likely to generate short-term capital gains than a Fund with a low portfolio turnover
rate.
◾
Distributions
of net long-term capital gains are taxable to you as long-term capital gains no matter how long you have owned your Fund shares.
◾
A
portion of income dividends paid by a Fund to you may be reported as qualified dividend income eligible for taxation by individual shareholders
at long-term capital gain rates, provided certain holding period requirements are met. These reduced rates generally are available for
dividends derived from a Fund’s investment in stocks of domestic corporations and qualified foreign corporations. In the case of
a Fund that invests primarily in debt securities, either none or only a nominal portion of the dividends paid by the Fund will be eligible
for taxation at these reduced rates.
◾
The
use of derivatives by a Fund may cause the Fund to realize higher amounts of ordinary income or short-term capital gain, distributions
from which are taxable to individual shareholders at ordinary income tax rates rather than at the more favorable tax rates for long-term
capital gain.
◾
Distributions
declared to shareholders with a record date in October, November or December—if paid to you by the end of January—are taxable
for federal income tax purposes as if received in December.
◾
Any
long-term or short-term capital gains realized on the sale or redemption of your Fund shares will be subject to federal income tax. For
tax
purposes an exchange of your shares for shares of another Fund is the same as a sale. An exchange occurs when the purchase of shares of
a Fund is made using the proceeds from a redemption of shares of another Fund and is effectuated on the same day as the redemption. Your
gain or loss is calculated by subtracting from the gross proceeds your cost basis. Gross proceeds and, for shares acquired on or after
January 1, 2012 and disposed of after that date, cost basis will be reported to you and the Internal Revenue Service (IRS). Cost
basis will be calculated using the Fund’s default method of average cost, unless you instruct the Fund to use a different calculation
method. As a service to you, the Fund will continue to provide to you (but not the IRS) cost basis information for shares acquired before
2012, when available, using the average cost method. Shareholders should carefully review the cost basis information provided by a Fund
and make any additional basis, holding period or other adjustments that are required when reporting these amounts on their federal income
tax returns. If you hold your Fund shares through a broker (or other nominee), please contact that broker (nominee) with respect to reporting
of cost basis and available elections for your account. For more information about the cost basis methods offered by Invesco, please refer
to the Tax Center located under the Account Access & Forms menu of our website at www.Invesco.com/us.
◾
The
conversion of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes
and no gain or loss will be reported on the transaction. This is true whether the conversion occurs automatically pursuant to the terms
of the class or is initiated by the shareholder.
◾
At
the time you purchase your Fund shares, the Fund’s net asset value may reflect undistributed income or undistributed capital gains.
A subsequent distribution to you of such amounts, although constituting a return of your investment, would be taxable. Buying shares in
a Fund just before it declares an income dividend or capital gains distribution is sometimes known as “buying a dividend.”
In addition, a Fund’s net asset value may, at any time, reflect net unrealized appreciation, which may result in future taxable
distributions to you.
◾
By
law, if you do not provide a Fund with your proper taxpayer identification number and certain required certifications, you may be subject
to backup withholding on any distributions of income, capital gains, or proceeds from the sale of your shares. A Fund also must withhold
if the IRS instructs it to do so. When withholding is required, the amount will be 24% of any distributions or proceeds paid.
◾
An
additional 3.8% Medicare tax is imposed on certain net investment income (including ordinary dividends and capital gain distributions
received from a Fund and net gains from redemptions or other taxable dispositions of Fund shares) of U.S. individuals, estates and trusts
to the extent that such person’s “modified adjusted gross income” (in the case of an individual) or “adjusted
gross income” (in the case of an estate or trust) exceeds a threshold amount. This Medicare tax, if applicable, is reported by you
on, and paid with, your federal income tax return.
◾
You
will not be required to include the portion of dividends paid by a Fund derived from interest on U.S. government obligations in your
gross income for purposes of personal and, in some cases, corporate income taxes in many state and local tax jurisdictions. The percentage
of dividends that constitutes dividends derived from interest on federal obligations will be determined annually. This percentage may
differ from the actual percentage of interest received by the Fund on federal obligations for the particular days on which you hold shares.
◾
Fund
distributions and gains from sale or exchange of your Fund shares generally are subject to state and local income taxes.
◾
If
a Fund qualifies to pass through to you the tax benefits from foreign taxes it pays on its investments, and elects to do so, then any
foreign taxes it pays on these investments may be passed through to you. You will then be required to include your pro-rata share of these
taxes in gross income, even though not actually received by you, and will be entitled either to deduct your share of these taxes in computing
your taxable income, or to claim a foreign tax credit for these taxes against your U.S. federal income tax.
A-21 The
Invesco Funds
◾
Foreign
investors should be aware that U.S. withholding, special certification requirements to avoid U.S. backup withholding and claim
any treaty benefits, and estate taxes may apply to an investment in a Fund.
◾
Under
the Foreign Account Tax Compliance Act (FATCA), a Fund will be required to withhold a 30% tax on income dividends made by the Fund to
certain foreign entities, referred to as foreign financial institutions or non-financial foreign entities, that fail to comply (or be
deemed compliant) with extensive reporting and withholding requirements designed to inform the U.S. Department of the Treasury of U.S.-owned
foreign investment accounts. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide otherwise (which
is not expected). A Fund may disclose the information that it receives from its shareholders to the IRS, non-U.S. taxing authorities or
other parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that is a shareholder
of a Fund fails to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.
◾
If
a Fund invests in an underlying fund taxed as a RIC, please see any relevant section below for more information regarding the Fund’s
investment in such underlying fund.
The
above discussion concerning the taxability of Fund dividends and distributions and of redemptions and exchanges of Fund shares is inapplicable
to investors holding shares through a tax-advantaged arrangement, such as Retirement and Benefit Plans or 529 college savings plans. Such
investors should refer to the applicable account documents/program description for that arrangement for more information regarding the
tax consequences of holding and redeeming Fund shares.
Funds
Investing in Municipal Securities
◾
You
will not be required to include the “exempt-interest” portion of dividends paid by the Fund in either your gross income for
federal income tax purposes or your net investment income subject to the additional 3.8% Medicare tax. You will be required to report
the receipt of exempt-interest dividends and other tax-exempt interest on your federal income tax returns. The percentage of dividends
that constitutes exempt-interest dividends will be determined annually. This percentage may differ from the actual percentage of exempt
interest received by the Fund for the particular days in which you hold shares.
◾
A
Fund may invest in municipal securities the interest on which constitutes an item of tax preference and could give rise to a federal alternative
minimum tax liability for noncorporate shareholders, unless such municipal securities were issued in 2009 or 2010.
◾
Exempt-interest
dividends from interest earned on municipal securities of a state, or its political subdivisions, generally are exempt from that state’s
personal income tax. Most states, however, do not grant tax-free treatment to interest from municipal securities of other states.
◾
A
Fund may invest a portion of its assets in securities that pay income that is not tax-exempt. To the extent that dividends paid by a Fund
are derived from taxable investments or realized capital gains, they will be taxable as ordinary income or long-term capital gains.
◾
A
Fund may distribute to you any market discount and net short-term capital gains from the sale of its portfolio securities. If you are
a taxable investor, Fund distributions from this income are taxable to you as ordinary income, and generally will neither qualify for
the dividends-received deduction in the case of corporate shareholders nor as qualified dividend income subject to reduced rates of taxation
in the case of noncorporate shareholders.
◾
Exempt-interest
dividends from a Fund are taken into account when determining the taxable portion of your social security or railroad retirement benefits,
may be subject to state and local income taxes, may affect the deductibility of interest on certain indebtedness, and may have other collateral
federal income tax consequences for you.
◾
There
are risks that: (a) a security issued as tax-exempt may be reclassified by the IRS or a state tax authority as taxable and/or (b) future
legislative,
administrative or court actions could adversely impact the qualification of income from a tax-exempt security as tax-free. Such reclassifications
or actions could cause interest from a security to become taxable, possibly retroactively, subjecting you to increased tax liability.
In addition, such reclassifications or actions could cause the value of a security, and therefore, the value of the Fund’s shares,
to decline.
Money
Market Funds
◾
A
Fund does not anticipate realizing any long-term capital gains.
◾
If
a Fund expects to maintain a stable net asset value of $1.00 per share, investors should not have any gain or loss on sale or exchange
of Fund shares (unless the investor incurs a liquidity fee on such sale or exchange). See “Liquidity Fees and Redemption Gates.”
◾
There
is some degree of uncertainty with respect to the tax treatment of liquidity fees received by a Fund, and such tax treatment may be the
subject of future IRS guidance. If a Fund receives liquidity fees, it will consider the appropriate tax treatment of such fees to the
Fund at such time.
◾
Unless
you choose to adopt a simplified “NAV method” of accounting (described below), any capital gain or loss on the sale or exchange
of Fund shares (as noted above) generally will be treated either as short-term if you held your Fund shares for one year or less, or long-term
if you held your Fund shares longer. If you elect to adopt the NAV method of accounting, rather than computing gain or loss on every taxable
disposition of Fund shares as described above, you would determine your gain or loss based on the change in the aggregate value of your
Fund shares during a computation period (such as your taxable year), reduced by your net investment (purchases minus sales) in those shares
during that period. Under the NAV method, any resulting net capital gain or loss would be treated as short-term capital gain or loss.
Funds
Investing in Real Estate Securities
◾
Because
of “noncash” expenses such as property depreciation, the cash flow of a REIT that owns properties will exceed its taxable
income. The REIT, and in turn a Fund, may distribute this excess cash to shareholders. Such a distribution is classified as a return of
capital. Return of capital distributions generally are not taxable to you. Your cost basis in your Fund shares will be decreased by the
amount of any return of capital. Any return of capital distributions in excess of your cost basis will be treated as capital gains.
◾
Dividends
paid to shareholders from the Funds’ investments in U.S. REITs generally will not qualify for taxation at long-term capital gain
rates applicable to qualified dividend income.
◾
The
Fund may derive “excess inclusion income” from certain equity interests in mortgage pooling vehicles either directly or through
an investment in a U.S. REIT. Please see the SAI for a discussion of the risks and special tax consequences to shareholders in the event
the Fund realizes excess inclusion income in excess of certain threshold amounts.
◾
Under
the Tax Cuts and Jobs Act, “qualified REIT dividends” (i.e., ordinary REIT dividends other than capital gain dividends and
portions of REIT dividends designated as qualified dividend income) are treated as eligible for a 20% deduction by noncorporate taxpayers.
The Fund may choose to report the special character of “qualified REIT dividends” to a shareholder, provided both the Fund
and a shareholder meet certain holding period requirements with respect to their shares.
◾
The
Fund’s foreign shareholders should see the SAI for a discussion of the risks and special tax consequences to them from a sale of
a U.S. real property interest by a REIT in which the Fund invests.
Funds
Investing in Partnerships
◾
Taxes,
penalties, and interest associated with an audit of a partnership
are generally required to be assessed and collected at the partnership level. Therefore, an adverse federal income tax audit of a partnership
that a Fund invests in (including MLPs taxed as partnerships) could result in the Fund being required to pay federal income tax. A Fund
may have little input in any audit asserted against a partnership and may be contractually or legally obligated to make payments in regard
to deficiencies asserted without the ability to put forward an independent defense. Accordingly,
A-22 The
Invesco Funds
even
if a partnership in which the Fund invests were to remain classified as a partnership (instead of as a corporation), it could be required
to pay additional taxes, interest and penalties as a result of an audit adjustment, and the Fund, as a direct or indirect partner of such
partnership, could be required to bear the economic burden of those taxes, interest and penalties, which would reduce the value of Fund
shares.
◾
Under
the Tax Cuts and Jobs Act “qualified publicly traded partnership income” is treated as eligible for a 20% deduction by noncorporate
taxpayers. The legislation does not contain a provision permitting a RIC, such as a Fund, to pass the special character of this income
through to its shareholders. It is uncertain whether a future technical corrections bill or regulations issued by the IRS will address
this issue to enable a Fund to pass through the special character of “qualified publicly traded partnership income” to its
shareholders.
◾
Some
amounts received by a Fund from the MLPs in which it invests likely will be treated as returns of capital to such Fund because of accelerated
deductions available to the MLPs. The receipt of returns of capital from the MLPs in which a Fund invests could cause some or all of the
Fund’s distributions to be classified as a return of capital. Return of capital distributions generally are not taxable to you.
Your cost basis in your Fund shares will be decreased by the amount of any return of capital. Any return of capital distributions in excess
of your cost basis will be treated as capital gains.
Funds
Investing in Commodities
◾
The
Funds’ strategies of investing through their respective Subsidiary in derivatives and other financially linked instruments whose
performance is expected to correspond to the commodity markets may cause the Funds to recognize more ordinary income and short-term capital
gains taxable as ordinary income than would be the case if the Funds invested directly in commodities.
◾
The
Funds must meet certain requirements under the Code for favorable tax treatment as a RIC, including asset diversification and income requirements.
The IRS has issued a revenue ruling which holds that income derived from commodity-linked swaps is not qualifying income for purposes
of the Income Requirement. In a subsequent revenue ruling, as well as in a number of follow-on private letter rulings (upon which only
the fund that received the private letter ruling may rely), the IRS provides that income from certain alternative investments which create
commodity exposure, such as certain commodity-linked or structured notes or a corporate subsidiary that invests in commodities, may be
considered qualifying income under the Code. However, the portion of such rulings relating to the treatment of a corporation as a regulated
investment company that require a determination of whether a financial instrument or position is a security under section 2(a)(36) of
the 1940 Act was revoked because of changes in the IRS’s position.
(A financial instrument or position that constitutes a security
under section 2(a)(36) of the 1940 Act generates qualifying income for a corporation taxed as a regulated investment company.) The Funds
intend to treat the income each derives from commodity-linked notes as qualifying income based on an opinion from counsel confirming that
income from such investments should be qualifying income because such commodity-linked notes constitute securities under section 2(a)(36)
of the 1940 Act. Each Subsidiary will be classified for federal income tax purposes as a controlled foreign corporation (CFC) with respect
to the Fund. As such, the Fund will be required to include in its gross income each year amounts earned by the Subsidiary during that
year (“Subpart F” income), whether or not such earnings are distributed by the Subsidiary to the Fund (deemed inclusions).
Treasury Regulations also permit the Fund to treat such deemed inclusions of “Subpart F” income from the Subsidiary as qualifying
income to the Fund, even if the Subsidiary does not make a distribution of such income. Consequently, the Fund and the Subsidiary reserve
the right to rely on deemed inclusions being treated as qualifying income to the Fund consistent with recently released Treasury Regulations.
If, contrary to the opinion of counsel or other guidance issued by the IRS, the IRS were to determine that income from direct investment
in commodity-linked notes is non-qualifying, a Fund might fail to satisfy
the
income requirement. In lieu of disqualification, the Funds are permitted to pay a tax for certain failures to satisfy the asset diversification
or income requirements, which, in general, are limited to those due to reasonable cause and not willful neglect. The Funds intend to limit
their investments in their respective Subsidiary to no more than 25% of the value of each Fund’s total assets in order to satisfy
the asset diversification requirement.
Funds
Investing in Foreign Currencies
◾
The
Funds may realize gains from the sale or other disposition of foreign currencies (including but not limited to gains from options, futures
or forward contracts) derived from investing in securities or foreign currencies. The U.S. Treasury Department is authorized to issue
regulations on whether the realization of such foreign currency gains is qualified income for the Funds. If such regulations are issued,
each Fund may not qualify as a RIC and/or the Fund may change its investment policy. As of the date of this prospectus, no regulations
have been issued pursuant to this authorization. It is possible, however, that such regulations may be issued in the future. Additionally,
the IRS has not issued any guidance on how to apply the asset diversification test to such foreign currency positions. Thus, the IRS’
determination as to how to treat such foreign currency positions for purposes of satisfying the asset diversification test might differ
from that of each Fund resulting in the Fund’s failure to qualify as a RIC. In lieu of disqualification, each Fund is permitted
to pay a tax for certain failures to satisfy the asset diversification or income requirements, which, in general, are limited to those
due to reasonable cause and not willful neglect.
◾
The
Funds’ transactions in foreign currencies may give rise to ordinary income or loss to the extent such income or loss results from
fluctuations in the value of the foreign currency concerned. This treatment could increase or decrease the Funds' ordinary income distributions
to you, and may cause some or all of the Funds' previously distributed income to be classified as a return of capital. Return of capital
distributions generally are not taxable to you. Your cost basis in your Fund shares will be decreased by the amount of any return of capital.
Any return of capital distributions in excess of your cost basis will be treated as capital gains.
This
discussion of “Taxes” is for general information only and not
tax advice. All investors should consult their own tax advisers as to the federal, state, local and foreign tax provisions applicable
to them.
Taxes
(applicable to the Invesco SteelPath Funds
only)
Although
the Code generally provides that a RIC does not pay an entity-level income tax, provided that it distributes all or substantially all
of its income, the Fund is not and does not anticipate becoming eligible to elect to be treated as a RIC because most or substantially
all of the Fund’s investments will consist of investments in MLP securities. The RIC tax rules therefore have no application to
the Fund or to its shareholders. As a result, the Fund is treated as a regular corporation, or “C” corporation, for U.S. federal
income tax purposes, and generally is subject to U.S. federal income tax on its taxable income at the corporate income tax rate. In addition,
as a regular corporation, the Fund will be subject to state and local taxes by reason of its tax status and its investments in MLPs. Therefore,
the Fund may have to pay federal, multiple state, and local taxes, which would reduce the Fund’s cash available to make distributions
to shareholders. An estimate for federal, state, and local tax liabilities will reduce the fund’s net asset value. The extent to
which the Fund is required to pay U.S. federal, state or local corporate income, franchise or other corporate taxes could materially reduce
the Fund’s cash available to make distributions to shareholders. In addition, investors in taxable accounts should be aware of the
following basic tax points as supplemented below where relevant:
Fund
Tax Basics
◾
The
Fund intends to invest a significant portion of its assets in MLPs, which are generally treated as partnerships for U.S. federal income
tax purposes. To the extent that the Fund invests in equity securities of an MLP, the Fund will be a partner in such MLP. Accordingly,
the Fund will be
A-23 The
Invesco Funds
required
to take into account the Fund’s allocable share of the income, gains, losses, deductions, and credits recognized by each such MLP,
regardless of whether the MLP distributes cash to the Fund. MLP distributions to partners, such as the Fund, are not taxable unless the
cash amount (or in certain cases, the fair market value of marketable securities) distributed exceeds the Fund’s basis in its MLP
interest. The Fund expects that the cash distributions it will receive with respect to its investments in equity securities of MLPs will
exceed the net taxable income allocated to the Fund from such MLPs because of tax deductions such as depreciation, amortization and depletion
that will be allocated to the Fund from the MLPs. No assurance, however, can be given in this regard. If this expectation is not realized,
the Fund will have a larger corporate income tax expense than expected, which will result in less cash available for distribution to shareholders.
◾
The
Fund will recognize gain or loss on the sale, exchange or other taxable disposition of its portfolio assets, including equity securities
of MLPs, equal to the difference between the amount realized by the Fund on the sale, exchange or other taxable disposition and the Fund’s
adjusted tax basis in such assets. Any such gain will be subject to U.S. federal income tax at the corporate income tax rate, regardless
of how long the Fund has held such assets since preferential capital gain rates do not apply to regular corporations such as the Fund.
The amount realized by the Fund in any case generally will be the amount paid by the purchaser of the assets plus, in the case of MLP
equity securities, the Fund’s allocable share, if any, of the MLP’s debt that will be allocated to the purchaser as a result
of the sale, exchange or other taxable disposition. The Fund’s tax basis in its equity securities in an MLP generally is equal to
the amount the Fund paid for the equity securities, (i) increased by the Fund’s allocable share of the MLP’s net taxable income
and certain MLP debt, if any, and (ii) decreased by the Fund’s allocable share of the MLP’s net losses and any distributions
received by the Fund from the MLP. Although any distribution by an MLP to the Fund in excess of the Fund’s allocable share of such
MLP’s net taxable income may create a temporary economic benefit to the Fund, net of a deferred tax liability, such distribution
will decrease the Fund’s tax basis in its MLP investment and will therefore increase the amount of gain (or decrease the amount
of loss) that will be recognized on the sale of an equity security in the MLP by the Fund. To the extent that the Fund has a net capital
loss in any year, the net capital loss can be carried back three taxable years and forward five taxable years to reduce the Fund’s
capital gains in such years. In the event a capital loss carryover cannot be utilized in the carryover periods, the Fund’s federal
income tax liability may be higher than expected, which will result in less cash available to distribute to shareholders.
◾
Distributions
by the Fund of cash or property in respect of the shares (other than certain distributions in redemption of shares) will be treated as
dividends for U.S. federal income tax purposes to the extent paid from the Fund’s current or accumulated earnings and profits (as
determined under U.S. federal income tax principles). Generally, the Fund’s earnings and profits are computed based upon the Fund’s
taxable income (loss), with certain specified adjustments. Any such dividend likely will be eligible for the dividends-received deduction
if received by an otherwise qualifying corporate U.S. shareholder that meets certain holding period and other requirements for the dividends-received
deduction. Dividends paid by the Fund to certain non-corporate U.S. shareholders (including individuals), generally are eligible for U.S.
federal income taxation at the rates generally applicable to long-term capital gains for individuals provided that the U.S. shareholder
receiving the dividend satisfies applicable holding period and other requirements. Otherwise, dividends paid by the Fund to non-corporate
U.S. Shareholders (including individuals) will be taxable at ordinary income rates.
◾
If
the amount of a Fund distribution exceeds the Fund’s current and accumulated earnings and profits, such excess will be treated first
as a tax-deferred return of capital to the extent of, and in reduction of, a shareholder’s tax basis in the shares, and thereafter
as capital gain to the extent the shareholder held the shares as a capital asset. Any such capital gain will be long-term capital gain
if such shareholder has held the applicable shares for more than one year. The portion of the distribution
received
by a shareholder from the Fund that is treated as a return of capital will decrease the shareholder’s tax basis in his or her Fund
shares (but not below zero), which will result in an increase in the amount of gain (or decrease in the amount of loss) that will be recognized
by the shareholder for tax purposes on the later sale of such Fund shares.
◾
The
Fund anticipates that the cash distributions it will receive with respect to its investments in equity securities of MLPs and which it
will distribute to its shareholders will exceed the Fund’s current and accumulated earnings and profits. Accordingly, the Fund expects
that only a part of its distributions to shareholders with respect to the shares will be treated as dividends for U.S. federal income
tax purposes. No assurance, however, can be given in this regard.
◾
Special
rules may apply to the calculation of the Fund’s earnings and profits. For example, the Fund’s earnings and profits will be
calculated using the straight-line depreciation method rather than the accelerated depreciation method. This difference in treatment may,
for example, result in the Fund’s earnings and profits being higher than the Fund’s taxable income or loss in a particular
year if the MLPs in which the Fund invests calculate their income using accelerated depreciation. Because of these special earnings profits
rules, the Fund may make distributions in a particular year out of earnings and profits (treated as dividends) in excess of the amount
of the Fund’s taxable income or loss for such year, which means that a larger percentage of the Fund ’s distributions could
be taxable to shareholders as ordinary income instead of tax-deferred return of capital or capital gain.
◾
Shareholders
that receive distributions in shares rather than in cash will be treated for U.S. federal income tax purposes as having (i) received a
cash distribution equal to the fair market value of the shares received and (ii) reinvested such amount in shares.
◾
A
redemption of shares will be treated as a sale or exchange of such shares, provided the redemption is not essentially equivalent to a
dividend, is a substantially disproportionate redemption, is a complete redemption of a shareholder’s entire interest in the Fund,
or is in partial liquidation of such Fund. Redemptions that do not qualify for sale or exchange treatment will be treated as distributions
as described above. Upon a redemption treated as a sale or exchange under these rules, a shareholder generally will recognize capital
gain or loss equal to the difference between the adjusted tax basis of his or her shares and the amount received when they are sold.
◾
If
the Fund is required to sell portfolio securities to meet redemption requests, the Fund may recognize income and gains for U.S. federal,
state and local income and other tax purposes, which may result in the imposition of corporate income or other taxes on the Fund and may
increase the Fund’s current and accumulated earnings and profits, which will result in a greater portion of distributions to Fund
shareholders being treated as dividends. Any long-term or short-term capital gains realized on sale or redemption of your Fund shares
will be subject to federal income tax. For tax purposes an exchange of your shares for shares of another Fund is the same as a sale. An
exchange occurs when the purchase of shares of a Fund is made using the proceeds from a redemption of shares of another Fund and is effectuated
on the same day as the redemption. Your gain or loss is calculated by subtracting from the gross proceeds your cost basis. Gross proceeds
and, for shares acquired on or after January 1, 2012 and disposed of after that date, cost basis will be reported to you and the IRS.
Cost basis will be calculated using the Fund’s default method of first-in, first-out (FIFO), unless you instruct the Fund to use
a different calculation method. Shareholders should carefully review the cost basis information provided by a Fund and make any additional
basis, holding period or other adjustments that are required when reporting these amounts on their federal income tax returns. If you
hold your Fund shares through a broker (or other nominee), please contact that broker (nominee) with respect to reporting of cost basis
and available elections for your account. For more information about the cost basis methods offered by Invesco, please refer to the Tax
Center located under the Account Access & Forms menu of our website at www.invesco.com/us.
A-24 The
Invesco Funds
◾
The
conversion of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes
and no gain or loss will be reported on the transaction. This is true whether the conversion occurs automatically pursuant to the terms
of the class or is initiated by the shareholder.
◾
At
the time you purchase your Fund shares, the Fund’s net asset value may reflect undistributed income. A subsequent distribution to
you of such amounts, although constituting a return of your investment, would be taxable. Buying shares in a Fund just before it declares
an income dividend is sometimes known as “buying a dividend.” In addition, a Fund’s net asset value may, at any time,
reflect net unrealized appreciation, which may result in future taxable distributions to you.
◾
By
law, if you do not provide a Fund with your proper taxpayer identification number and certain required certifications, you may be subject
to backup withholding on any distributions of income, capital gains, or proceeds from the sale of your shares. A Fund also must withhold
if the IRS instructs it to do so. When withholding is required, the amount will be 24% of any distributions or proceeds paid.
◾
A
3.8% Medicare tax is imposed on certain net investment income (including ordinary dividends received from a Fund and net gains from redemptions
or other taxable dispositions of Fund shares) of U.S. individuals, estates and trusts to the extent that such person’s “modified
adjusted gross income” (in the case of an individual) or “adjusted gross income” (in the case of an estate or trust)
exceeds a threshold amount. This Medicare tax, if applicable, is reported by you on, and paid with, your federal income tax return.
◾
Fund
distributions and gains from sale or exchange of your Fund shares generally are subject to state and local income taxes.
◾
Foreign
investors should be aware that U.S. withholding, special certification requirements to avoid U.S. backup withholding and claim any treaty
benefits, and estate taxes may apply to an investment in a Fund.
◾
Under
the Foreign Account Tax Compliance Act (FATCA), a Fund will be required to withhold a 30% tax on income dividends made by the Fund to
certain foreign entities, referred to as foreign financial institutions or non-financial foreign entities, that fail to comply (or be
deemed compliant) with extensive reporting and withholding requirements designed to inform the U.S. Department of the Treasury of U.S.-owned
foreign investment accounts. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide otherwise (which
is not expected). A Fund may disclose the information that it receives from its shareholders to the IRS, non-U.S. taxing authorities or
other parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that is a shareholder
of a Fund fails to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.
◾
Taxes,
penalties, and interest associated with an audit of a partnership are generally required to be assessed and collected at the partnership
level. Therefore, an adverse federal income tax audit of an MLP taxed as a partnership that the Fund invests in could result in the Fund
being required to pay federal income tax. The Fund may have little input in any audit asserted against an MLP and may be contractually
or legally obligated to make payments in regard to deficiencies asserted without the ability to put forward an independent defense. Accordingly,
even if an MLP in which the Fund invests were to remain classified as a partnership, it could be required to pay additional taxes, interest
and penalties as a result of an audit adjustment, and the Fund, as a direct or indirect partner of such MLP, could be required to bear
the economic burden of those taxes, interest and penalties, which would reduce the value of Fund shares.
◾
Under
the Tax Cuts and Jobs Act certain “qualified publicly traded partnership income” (e.g., certain income from certain of the
MLPs in which the Fund invests) is treated as eligible for a 20% deduction by noncorporate taxpayers. The Tax Cuts and Jobs Act does not
contain a provision permitting an entity, such as the Fund, to benefit from this
deduction
(since the Fund is taxed as a “C” corporation) or pass the special character of this income through to its shareholders. Qualified
publicly traded partnership income allocated to a noncorporate investor investing directly in an MLP might, however, be eligible for the
deduction.
The
above discussion concerning the taxability of Fund dividends and distributions
and of redemptions and exchanges of Fund shares is inapplicable to investors holding shares through a tax-advantaged arrangement, such
as Retirement and Benefit Plans or 529 college savings plans. Such investors should refer to the applicable account documents/program
description for that arrangement for more information regarding the tax consequences of holding and redeeming Fund shares.
This
discussion of “Taxes” is for general information only and not
tax advice. All investors should consult their own tax advisers as to the federal, state, local and foreign tax provisions applicable
to them.
Federal
Income Taxes (applicable to Invesco Master Loan Fund only)
United
States Taxes
The
Fund is classified as a partnership and will not be a regulated investment company for US federal income tax purposes. As a partnership,
the Fund is not a taxable entity for federal income tax purposes and, subject to the application of the partnership audit rules described
below, incurs no federal income tax liability. Each Investor is required to take into account its proportionate share of items of income,
gain, loss and deduction of the partnership in computing its federal income tax liability regardless of whether or not cash or property
distributions are then made by the Fund. Following the close of the Fund’s taxable year end, Investors will receive a tax statement
entitled Schedule K-1 Partner’s Share of Income, Deductions, Credits, etc., which reports the tax status of their distributive share
of the Fund’s items for the previous year.
Taxation
of Distributions, Sales and Exchanges
In
general, distributions of money by the Fund to an Investor will represent a non-taxable return of capital up to the amount of an Investor’s
adjusted tax basis in its shares. An Investor will recognize gain to the extent that any money distributed by the Fund exceeds the Investor’s
adjusted tax basis in its shares. In the case of a non-taxable return of capital by the Fund to an Investor, other than in liquidation
of the Investor’s interest in the Fund, the tax basis of his shares will be reduced (but not below zero) and will result in an increase
in the amount of gain (or decrease in the amount of loss) that will be recognized by the Investor on the later sale of its shares. A distribution
in partial or complete redemption of your shares in the Fund is taxable as a sale or exchange only to the extent the amount of money received
exceeds the tax basis of your entire interest in the Fund. Any loss may be recognized only if you redeem your entire interest in the Fund
for money.
When
you sell shares of the Fund, you may have a capital gain or loss.
Derivatives
The
use of derivatives by the Fund may cause the Fund to realize higher amounts of ordinary income or short-term capital gain, allocations
of which are taxable to individual Investors at ordinary income tax rates rather than at the more favorable tax rates for long-term capital
gain. Changes in government regulation of derivative instruments could affect the character, timing and amount of the Fund’s taxable
income or gains, and may limit the Fund from using certain types of derivative instruments as part of its investment strategy.
Risk
of Audit of the Fund
Under
the partnership audit rules, which are generally applicable to tax years beginning after December 31, 2017, the Internal Revenue Service
(“IRS”) may collect any taxes resulting from audit adjustments to the Fund’s income tax returns (including any applicable
penalties and interest) directly from the Fund. In that case, current Investors would bear some or all of the
A-25 The
Invesco Funds
tax liability
resulting from such audit adjustment, even if they did not own interests in the Fund during the tax year under audit. The Fund may have
the ability to shift any such tax liability to the Investors in accordance with their interests in the Fund during the year under audit,
but there can be no assurance that the Fund will be able to do so under all circumstances. For taxable years not subject to the new audit
rules, items of Fund income, gain, loss, deduction and credit will be determined at the Fund level in a unified audit. NO REPRESENTATION
OR WARRANTY OF ANY KIND IS MADE WITH RESPECT TO THE TAXATION, DEDUCTIBILITY OR CAPITALIZATION OF ANY ITEM BY THE FUND OR INVESTOR. In
addition, the “partnership representative” (tax matters partner, for taxable years before the partnership audit rules become
effective) will have the sole authority to act on the Fund’s behalf for purposes of, among other things, federal income tax audits
and judicial review of administrative adjustments by the IRS, and any such actions will be binding on the Fund and all of the Investors.
Unrelated
Business Taxable Income
An
allocable share of a tax-exempt Investor’s income will be “unrelated business taxable income” (“UBTI”) to
the extent that the Fund borrows money to acquire property or invests in assets that produce UBTI.
Medicare
Tax
An
additional 3.8% Medicare tax is imposed on certain net investment income of US individuals, estates and trusts to the extent that such
person’s “modified adjusted gross income” (in the case of an individual) or “adjusted gross income” (in
the case of an estate or trust) exceeds a threshold amount. “Net investment income,” for these purposes, means investment
income (including (i) net gains from the taxable disposition of shares of a Fund to the extent the net gain would be taken into account
by the Investor if the Fund sold all of its property for fair market value immediately before the disposition of the shares of the Fund,
and (ii) an allocable share of a Fund’s interest, dividends and net gains) reduced by the deductions properly allocable to such
income. This Medicare tax, if applicable, is reported by Investors on, and paid with, the Investor’s federal income tax return.
State,
Local and Non-US Tax Matters
An
Investor’s distributive share of the Fund’s income, and gains from the sale or exchange of an Investor’s Fund shares,
generally are subject to state and local taxes in the jurisdiction in which the Investor resides or is otherwise subject to tax.
Prospective
investors should consider their individual state and local tax consequences
of an investment in the Fund.
Tax
Considerations for Non-US Investors
If,
as anticipated, the Fund is not deemed to be engaged in a US trade or business, the Fund generally will be required to withhold tax on
the distributive share of certain items of gross income from US sources allocated to non-US Investors at a 30% (or lower treaty) rate.
Certain categories of income, including portfolio interest, are not subject to US withholding tax. Capital gains (other than gain realized
on disposition of US real property interests) are not subject to US withholding tax unless the non-US Investor is a nonresident alien
individual present in the United States for a period or periods aggregating 183 days or more during the taxable year. If, on the other
hand, the Fund derives income which is effectively connected with a US trade or business carried on by the Fund, this 30% tax will not
apply to such effectively connected income of the Fund, and the Fund generally will be required to withhold tax from the amount of effectively
connected income allocable to non-US Investors at the highest rate of tax applicable to US residents, and non-US Investors generally would
be required to file US income tax returns and be subject to US income tax on a net basis. Gain or loss on a sale of shares will be treated
as effectively connected with a U.S. trade or business to the extent that a foreign corporation or foreign individual that owns the shares
(whether directly or indirectly through other partnerships) would have had effectively connected gain or loss had the partnership sold
its underlying assets and applicable US
withholding
tax will apply. Non-US Investors may be subject to US estate tax and are subject to special US tax certification requirements.
Other
Reporting and Withholding Requirements
Under
the Foreign Account Tax Compliance Act (“FATCA”), the Fund will be required to withhold at a 30% rate on certain US source
payments (such as interest and dividends) to certain Investors if the Investor fails to provide the Fund with the information which identifies
its direct and indirect US ownership. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide otherwise (which
is not expected). A Fund may disclose the information that it receives from an Investor to the IRS, non-US taxing authorities or other
parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that is an Investor fails
to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.
For
a more complete discussion of the federal income tax consequences
of investing in the Fund, see the Statement of Additional Information.
This
discussion of “Federal Income Taxes” is not intended or written
to be used as tax advice. Because everyone’s tax situation is unique, Investors should consult their tax professional about federal,
state, local and foreign tax consequences before making an investment in the Fund.
Payments
to Financial Intermediaries – All Share Classes except Class R6 shares
The
financial adviser or intermediary through which you purchase your shares may receive all or a portion of the sales charges and distribution
fees discussed above. In addition to those payments, Invesco Distributors and other Invesco Affiliates, may make additional cash payments
to financial intermediaries in connection with the promotion and sale of shares of the Funds. These additional cash payments may include
cash payments and other payments for certain marketing and support services. Invesco Affiliates make these payments from their own resources,
from Invesco Distributors’ retention of initial sales charges and from payments to Invesco Distributors made by the Funds under
their 12b-1 plans. In the context of this prospectus, “financial intermediaries” include any broker, dealer, bank (including
bank trust departments), registered investment adviser, financial planner, retirement plan administrator, insurance company and any other
financial intermediary having a selling, administration or similar agreement with Invesco Affiliates.
The
benefits Invesco Affiliates receive when they make these payments include,
among other things, placing the Funds on the financial intermediary’s fund sales system, and access (in some cases on a preferential
basis over other competitors) to individual members of the financial intermediary’s sales force or to the financial intermediary’s
management. These payments are sometimes referred to as “shelf space” payments because the payments compensate the financial
intermediary for including the Funds in its fund sales system (on its “sales shelf”). Invesco Affiliates compensate financial
intermediaries differently depending typically on the level and/or type of considerations provided by the financial intermediary. The
payments Invesco Affiliates make may be calculated based on sales of shares of the Funds (Sales-Based Payments), in which case the total
amount of such payments shall not exceed 0.25% (0.10% for Class R5 shares) of the public offering price of all shares sold by the financial
intermediary during the particular period. Payments may also be calculated based on the average daily net assets of the applicable Funds
attributable to that particular financial intermediary (Asset-Based Payments), in which case the total amount of such cash payments shall
not exceed 0.25% per annum of those assets during a defined period. Sales-Based Payments primarily create incentives to make new sales
of shares of the Funds and Asset-Based Payments primarily create incentives to retain previously sold shares of the Funds in investor
accounts. Invesco Affiliates
A-26 The
Invesco Funds
may pay a financial
intermediary either or both Sales-Based Payments and Asset-Based Payments.
Invesco
Affiliates are motivated to make these payments as they promote
the sale of Fund shares and the retention of those investments by clients of the financial intermediaries. To the extent financial intermediaries
sell more shares of the Funds or retain shares of the Funds in their clients’ accounts, Invesco Affiliates benefit from the incremental
management and other fees paid to Invesco Affiliates by the Funds with respect to those assets.
The
Funds’ transfer agent may make payments to certain financial intermediaries
for certain administrative services, including record keeping and sub-accounting of shareholder accounts pursuant to a sub-transfer agency,
omnibus account service or sub-accounting agreement. All fees payable by Invesco Affiliates under this category of services are charged
back to the Funds, subject to certain limitations approved by the Board.
You
can find further details in the Fund’s SAI about these payments and the
services provided by financial intermediaries. In certain cases these payments could be significant to the financial intermediaries. Your
financial adviser may charge you additional fees or commissions other than those disclosed in this prospectus. You can ask your financial
adviser about any payments it receives from Invesco Affiliates or the Funds, as well as about fees and/or commissions it charges.
Important
Notice Regarding Delivery of Security Holder Documents
To
reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address
(Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not
want the mailing of these documents to be combined with those for other members of your household, please contact the Funds’ transfer
agent at 800-959-4246 or contact your financial institution. The Funds’ transfer agent will begin sending you individual copies
for each account within thirty days after receiving your request.
A-27 The
Invesco Funds
Obtaining Additional Information
More information
may be obtained free of charge upon request. The SAI, a current version of which is on file with the SEC, contains more details about
the Fund and is incorporated by reference into this prospectus (is legally a part of this prospectus). Annual and semi-annual reports
to shareholders contain additional information about the Fund’s investments. The Fund’s annual report also discusses the market
conditions and investment strategies that significantly affected the Fund’s performance during its last fiscal year. The Fund also
files its complete schedule of portfolio holdings with the SEC for the 1st and 3rd quarters of each fiscal year as an exhibit to its reports
on Form N-PORT.
If
you have questions about an Invesco Fund or your account, or you wish to obtain a free copy of the Fund’s current SAI, annual or
semi-annual reports or Form N-PORT, please contact us.
|
By
Mail: |
Invesco
Investment Services, Inc.
P.O.
Box 219078
Kansas
City, MO 64121-9078 |
|
By
Telephone: |
(800)
959-4246 |
|
On
the Internet: |
You
can send us a request by e-mail or
download
prospectuses, SAIs, annual or
semi-annual
reports via our website:
www.invesco.com/us
|
Reports
and other information about the Fund are available on the EDGAR Database on the SEC's Internet site at http://www.sec.gov, and copies
of this information may be obtained, after paying a duplicating fee, by electronic request at the following e-mail address: publicinfo@sec.gov.
|
Invesco Short
Term Municipal Fund
SEC 1940 Act file
number: 811-09913 |
|
invesco.com/us
|
O-STM-PRO-1
|
Prospectus
December
16,
2022
Class:
A (SPIAX ), C (SPICX ), Y (SPIDX ),
R6 (SPISX )
Invesco S&P
500 Index 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.
Table of Contents
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3
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6
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6
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6
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6
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7
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8
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A-1
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A-1
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A-2
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A-3
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A-3
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A-10
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A-11
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A-13
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A-15
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A-17
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A-17
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A-18
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A-21
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A-23
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A-25
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A-26
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A-27
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Back
Cover |
Invesco
S&P 500 Index Fund
The
Fund’s investment objective is total return through growth of capital and current income.
This
table describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund.
The
table and Examples below do not reflect any transaction fees
that may be charged by financial intermediaries or commissions that a shareholder may be required to pay directly to its financial intermediary
when buying or selling Class Y or Class R6 shares.
You
may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000
in the Invesco Funds. More information about these and other discounts is available from your financial professional and
in the section “Shareholder Account Information – Initial Sales Charges (Class A Shares Only)” on page A-3 of the prospectus
and the section “Purchase, Redemption and Pricing of Shares – Purchase and Redemption of Shares” on page L-1 of the
statement of additional information (SAI).
|
Class:
|
A
|
C
|
Y
|
R6
|
|
Maximum
Sales Charge (Load) Imposed on Purchases (as a
percentage
of offering price) |
|
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|
|
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| ||||
|
Maximum
Deferred Sales Charge (Load) (as a percentage of
original
purchase price or redemption proceeds, whichever is
less)
|
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| ||||
|
Class:
|
A
|
C
|
Y
|
R6
|
|
Management
Fees |
|
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| ||||
|
Distribution
and/or Service (12b-1) Fees |
|
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| ||||
|
Other
Expenses |
|
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| ||||
|
Total
Annual Fund Operating Expenses |
|
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| ||||
1
The
Example assumes that you invest $10,000 in the Fund for the time periods
indicated and then redeem all of your shares at the end of those periods. This Example does not include commissions and/or other forms
of compensation that investors may pay on transactions in Class Y and Class R6 shares. The Example also assumes that your investment has
a 5% return each year and that the Fund’s operating expenses remain the same.
Although
your actual costs may be higher or lower, based on these assumptions,
your costs would be:
|
|
1
Year |
3
Years |
5
Years |
10
Years |
|
Class
A |
$
|
$
|
$
|
$
|
|
| ||||
|
Class
C |
$
|
$
|
$
|
$
|
|
| ||||
|
Class
Y |
$
|
$
|
$
|
$
|
|
| ||||
|
Class
R6 |
$
|
$
|
$
|
$
|
|
| ||||
|
|
1
Year |
3
Years |
5
Years |
10
Years |
|
Class
A |
$
|
$
|
$
|
$
|
|
| ||||
|
Class
C |
$
|
$
|
$
|
$
|
|
| ||||
|
Class
Y |
$
|
$
|
$
|
$
|
|
| ||||
|
Class
R6 |
$
|
$
|
$
|
$
|
|
| ||||
The
Fund invests, under normal circumstances, at least 80% of its net assets (plus any borrowings for investment purposes) in common stocks
of companies included in the S&P 500®
Index (the Underlying Index), and in derivatives and other instruments that have economic characteristics similar to such securities.
The Underlying Index measures the performance of equity securities of larger U.S. companies. The Underlying Index employs a float-adjusted
market capitalization weighted methodology, with larger companies generally receiving greater weights.
In
seeking to track the investment results
(before fees and expenses) of the Underlying Index, the portfolio managers primarily utilize a “full replication” methodology,
pursuant to which the Fund generally invests in all of the securities comprising the Underlying Index in proportion to their weightings
in the Underlying Index.
The
Underlying Index is typically rebalanced quarterly. There is no regularly
scheduled reconstitution of the Underlying Index; rather, changes to the composition of the Underlying Index are made on an as-needed
basis in accordance with the index provider’s methodology. The Fund is generally rebalanced in accordance with the Underlying Index.
Constituent changes are generally incorporated in the Fund as and when they are made to the Underlying Index.
The
Fund can invest in derivative instruments including futures contracts.
The
Fund can use futures contracts, including index futures, to seek exposure
to certain equity securities represented in the Underlying Index while managing cash balances.
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, natural or environmental disasters, widespread disease or other public health issues, war, military conflict, acts of terrorism
or adverse investor sentiment generally. During a general downturn in the financial markets, multiple asset classes may decline in
1 Invesco
S&P 500 Index Fund
value.
When markets perform well, there can be no assurance that specific investments held by the Fund will rise in value.
Investing
in Stocks Risk. The value of the Fund’s portfolio may be
affected by changes in the stock markets. Stock markets may experience significant short-term volatility and may fall 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.
Index
Risk. Unlike many investment companies, the Fund does not utilize
an investing strategy that seeks returns in excess of its Underlying Index. Therefore, the Fund would not necessarily buy or sell a security
unless that security is added to or removed from, respectively, the Underlying Index, even if that security generally is underperforming.
Additionally, the Fund generally rebalances its portfolio in accordance with the Underlying Index, and, therefore, any changes to the
Underlying Index’s rebalance schedule will typically result in corresponding changes to the Fund’s rebalance schedule.
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. 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.
Derivatives
Risk. The value of a derivative instrument depends largely on (and
is derived from) the value of an underlying security, currency, commodity, interest rate, index or other asset (each referred to as an
underlying asset). In addition to risks relating to the underlying assets, the use of derivatives may include other, possibly greater,
risks, including counterparty, leverage and liquidity risks. Counterparty risk is the risk that the counterparty to the derivative contract
will default on its obligation to pay the Fund the amount owed or otherwise perform under the derivative contract. Derivatives create
leverage risk because they do not require payment up front equal to the economic exposure created by holding a position in the derivative.
As a result, an adverse change in the value of the underlying asset could result in the Fund sustaining a loss that is substantially greater
than the amount invested in the derivative or the anticipated value of the underlying asset, which may make the Fund’s returns more
volatile and increase the risk of loss. Derivative instruments may also be less liquid than more traditional investments and the Fund
may be unable to sell or close out its derivative positions at a desirable time or price. This risk may be more acute under adverse market
conditions, during which the Fund may be most in need of liquidating its derivative positions. Derivatives may also be harder to value,
less tax efficient and subject to changing government regulation that could impact the Fund’s ability to use certain derivatives
or their cost. Derivatives strategies may not always be successful. For example, derivatives used for hedging or to gain or limit exposure
to a particular market segment may not provide the expected benefits, particularly during adverse market conditions.
Non-Correlation
Risk. The Fund’s return may not match the return of the Underlying
Index for a number of reasons. For example, the Fund incurs
operating
expenses not applicable to the Underlying Index, and incurs costs in buying and selling securities, especially when rebalancing and reconstituting
the Fund’s securities holdings to reflect changes in the composition of the Underlying Index. In addition, the performance of the
Fund and the Underlying Index may vary due to asset valuation differences and differences between the Fund’s portfolio and the Underlying
Index resulting from legal restrictions, costs or liquidity constraints.
Fund
performance reflects any applicable fee waivers and expense reimbursements.
Performance returns would be lower without applicable fee waivers and expense reimbursements.
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, 2021)
|
|
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
Y |
|
|
|
|
|
| ||||
|
Class
R61 |
|
|
|
|
|
| ||||
|
S&P
500®
Index expenses
or taxes) |
|
|
|
|
|
| ||||
|
Lipper
S&P 500 Objective Funds Index |
|
|
|
|
|
| ||||
1
2 Invesco
S&P 500 Index Fund
Management
of the Fund
Investment
Adviser: Invesco Advisers, Inc.
|
Portfolio
Managers |
Title
|
Length
of Service on the Fund |
|
Peter
Hubbard |
Portfolio
Manager |
2020
|
|
| ||
|
Pratik
Doshi, CFA |
Portfolio
Manager |
2020
|
|
| ||
|
Michael
Jeanette |
Portfolio
Manager |
2020
|
|
| ||
|
Tony
Seisser |
Portfolio
Manager |
2020
|
|
| ||
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 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 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 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 R6 shares, the minimum
initial investment is $1 million, unless such investment is made by (i) an investment company, as defined under the Investment Company
Act of 1940, as amended (1940 Act), that is part of a family of investment companies which own in the aggregate at least $100 million
in securities, or (ii) an account established with a 529 college savings plan managed by Invesco, in which case there is no minimum initial
investment.
There
are no minimum investment amounts for Class R6 shares held through
retail omnibus accounts maintained by an intermediary, such as a broker, that (i) generally charges an asset-based fee or commission in
addition to those described in this prospectus, and (ii) maintains Class R6 shares and makes them available to retail investors.
Tax
Information
The
Fund’s distributions generally are taxable to you as ordinary income, capital gains, or some combination of both, unless you are
investing through a tax-advantaged arrangement, such as a 401(k) plan, 529 college savings plan or individual retirement account. Any
distributions from a 401(k) plan or individual retirement account may be taxed as ordinary income when withdrawn from such plan or account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund, the Fund’s distributor
or its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict
of interest by influencing the broker-dealer or other intermediary and your salesperson or financial adviser to recommend the Fund over
another investment. Ask your
salesperson
or financial adviser or visit your financial intermediary’s website for more information.
Investment Objective(s), Strategies, Risks and Portfolio Holdings
Objective(s)
and Strategies
The
Fund’s investment objective is total return through growth of capital and current income. The Fund’s investment objective
may be changed by the Board of Trustees (the Board) without shareholder approval.
The
Fund invests, under normal circumstances, at least 80% of its net assets
(plus any borrowings for investment purposes) in common stocks of companies included in the Underlying Index, and in derivatives and other
instruments that have economic characteristics similar to such securities. The Underlying Index measures the performance of equity securities
of larger U.S. companies. The Underlying Index employs a float-adjusted market capitalization weighted methodology, with larger companies
generally receiving greater weights.
In
seeking to track the investment results
(before fees and expenses) of
the Underlying Index, the portfolio managers primarily utilize a “full replication” methodology pursuant to which the Fund
generally invests in all of the securities comprising its Underlying Index in approximately the same proportions as the weightings of
the securities in the Underlying Index. However, under various circumstances, it may not be possible or practicable to purchase all of
those securities in those same weightings. In those circumstances, the portfolio managers may purchase a sample of securities in its Underlying
Index.
A
“sampling” methodology means that the portfolio managers use a quantitative
analysis to select securities from the Underlying Index universe to obtain a representative sample of securities that have, in the aggregate,
investment characteristics similar to the Underlying Index in terms of key risk factors, performance attributes and other characteristics.
These include industry weightings, market capitalization, return variability, earnings valuation, yield and other financial characteristics
of securities. When employing a sampling methodology, the portfolio managers base the quantity of holdings in the Fund on a number of
factors, including asset size of the Fund, and generally expects the Fund to hold less than the total number of securities in the Underlying
Index. However, the portfolio managers reserve the right to invest the Fund in as many securities as they believe necessary to achieve
the Fund’s investment objective.
There
also may be instances in which the Adviser may choose to (i) overweight
or underweight a security in the Underlying Index, (ii) purchase securities not contained in the Underlying Index that the Adviser believes
are appropriate to substitute for certain securities in the Underlying Index, or (iii) utilize various combinations of other available
investment techniques in seeking to track the Underlying Index.
The
Fund may sell securities included in the Underlying Index in anticipation
of their removal from the Underlying Index, or purchase securities not included in the Underlying Index in anticipation of their addition
to the Underlying Index.
The
Underlying Index is typically rebalanced quarterly. Index constituents are
added and removed on an as-needed basis, there is no scheduled reconstitution. Rather, changes in response to corporate actions and market
developments can be made at any time. The Index Provider rebalances the Underlying Index on a quarterly basis after the close of business
on the third Friday in March, June, September and December.
Share counts are updated to the latest publicly available filings
on a quarterly basis. Investable weight factor (IWF) changes are only made at the quarterly review if the change represents at least 5%
of total current shares outstanding and is related to a single corporate action. The Underlying Index components, shares outstanding and
weightings factors are determined as of the rebalancing date.
3 Invesco
S&P 500 Index Fund
The
Fund can invest in derivative instruments including futures contracts.
A
futures contract is a standardized agreement between two parties to buy
or sell a specified quantity of an underlying asset at a specified price at a specified future time. The value of the futures contract
tends to increase and decrease in tandem with the value of the underlying asset. Futures contracts are bilateral agreements, with both
the purchaser and the seller equally obligated to complete the transaction. Depending on the terms of the particular contract, futures
contracts are settled by purchasing an offsetting contract, physically delivering the underlying asset on the settlement date or paying
a cash settlement amount on the settlement date. The Fund can use futures contracts, including index futures, to seek exposure to certain
equity securities represented in the Underlying Index while managing cash balances.
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 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. Because the Fund is passively managed, such circumstances may also impact the Fund to a greater
degree than mutual funds with investment advisers that actively manage their portfolio assets to take advantage of or defend against market
events. 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.
◾
COVID-19.
The “COVID-19” strain of coronavirus has resulted in instances of market closures and dislocations, extreme volatility, liquidity
constraints and increased trading costs. Efforts to contain its spread have resulted in travel restrictions, disruptions of healthcare
systems, business operations (including business closures) and supply chains, layoffs, lower consumer demand and employee availability,
and defaults and credit downgrades, among other significant economic impacts that have disrupted global economic activity across many
industries. Such economic impacts may exacerbate other pre-existing political, social and economic risks locally or globally and cause
general concern and uncertainty. The full economic impact and ongoing effects of COVID-19 (or other future epidemics or pandemics) at
the macro-level and on individual businesses are unpredictable and may result in significant and prolonged effects on the Fund’s
performance.
Investing
in Stocks Risk. Common stock represents an ownership interest in
a company. It ranks below preferred stock and debt securities in claims for dividends and in claims for assets of the issuer in a liquidation
or bankruptcy. Common stocks may be exchange-traded or over-the-counter securities. Over-the-counter securities may be less liquid than
exchange-traded securities.
The
value of the Fund’s portfolio may be affected by changes in the stock
markets. Stocks and other equity securities fluctuate in price in response to changes to equity markets in general. Stock markets may
experience significant short-term volatility and may fall or rise sharply at times. Adverse events in any part of the equity or fixed-income
markets may have unexpected negative effects on other market segments. Different stock markets may behave differently from each other
and U.S. stock markets may move in the opposite direction from one or more foreign stock markets.
The
prices of individual stocks generally do not all move in the same direction
at the same time. However, individual stock prices tend to go up and down more dramatically than those of certain other types of investments,
such as bonds. A variety of factors can negatively affect the price of a particular company’s stock. These factors may include,
but are not limited to: poor earnings reports, a loss of customers, litigation against the company, general unfavorable performance of
the company’s sector or industry, or changes in government regulations affecting the company or its industry. To the extent that
securities of a particular type are emphasized (for example foreign stocks, stocks of small- or mid-cap companies, growth or value stocks,
or stocks of companies in a particular industry), their share values may fluctuate more in response to events affecting the market for
those types of securities.
Index
Risk. Unlike many investment companies that are “actively
managed,” the Fund is a “passive” investor and therefore does not utilize an investing strategy that seeks returns in
excess of the Underlying Index. Therefore, the Fund would not necessarily buy or sell a security unless that security is added to or removed
from, respectively, the Underlying Index, even if that security generally is underperforming. If a specific security is removed from the
Underlying Index, the Fund may be forced to sell such security at an inopportune time or for a price lower than the security’s current
market value. The Underlying Index may not contain the appropriate mix of securities for any particular economic cycle. Additionally,
the Fund generally rebalances its portfolio in accordance with the Underlying Index, and, therefore, any changes to the Underlying Index’s
rebalance schedule will typically result in corresponding changes to the Fund’s rebalance schedule. Further, unlike with an actively
managed fund, the Adviser does not use techniques or defensive strategies designed to lessen the impact of periods of market volatility
or market decline. This means that, based on certain market and economic conditions, the Fund’s performance could be lower than
other types of mutual funds with investment advisers that
4 Invesco
S&P 500 Index Fund
actively
manage their portfolio assets to take advantage of or defend against market events.
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.
Derivatives
Risk. A derivative is an instrument whose value depends largely
on (and is derived from) the value of an underlying security, currency, commodity, interest rate, index or other asset (each referred
to as an underlying asset). In addition to risks relating to the underlying assets, the use of derivatives may include other, possibly
greater, risks, which are described below.
◾
Counterparty
Risk. Certain derivatives do not trade on an established exchange
(referred to as over-the-counter (OTC) derivatives) and are simply financial contracts between the Fund and a counterparty. When the Fund
is owed money on an OTC derivative, the Fund is dependent on the counterparty to pay or, in some cases, deliver the underlying asset,
unless the Fund can otherwise sell its derivative contract to a third party prior to its expiration. Many counterparties are financial
institutions such as banks and broker-dealers and their creditworthiness (and ability to pay or perform) may be negatively impacted by
factors affecting financial institutions generally. In addition, in the event that a counterparty becomes bankrupt or insolvent, the Fund’s
ability to recover the collateral that the Fund has on deposit with the counterparty could be delayed or impaired. For derivatives traded
on a centralized exchange, the Fund generally is dependent upon the solvency of the relevant exchange clearing house (which acts as a
guarantor for each contractual obligation under such derivatives) for payment on derivative instruments for which the Fund is owed money.
◾
Leverage
Risk. Many derivatives do not require a payment up front equal
to the economic exposure created by holding a position in the derivative, which creates a form of leverage. As a result, an adverse change
in the value of the underlying asset could result in the Fund sustaining a loss that is substantially greater than the amount invested
in the derivative or the anticipated value of the underlying asset. In addition,
some derivatives have the potential for unlimited loss, regardless
of the size of the Fund’s initial investment. Leverage may therefore make the Fund’s returns more volatile and increase
the risk of loss. In certain market conditions, losses on derivative
instruments can grow larger while the value of the Fund’s other assets fall, resulting in the Fund’s derivative positions
becoming a larger percentage of the Fund’s investments.
◾
Liquidity
Risk. There is a smaller pool of buyers and sellers for certain
derivatives, particularly OTC derivatives, than more traditional investments such as stocks. These buyers and sellers are often financial
institutions that may be unable or unwilling to buy or sell derivatives during times of financial or market stress. Derivative instruments
may therefore be less liquid than more traditional investments and the Fund may be unable to sell or exit its derivative positions at
a desirable time or price. This risk may be more acute under adverse market conditions, during which the Fund may be most in need of liquidating
its derivative positions. To the extent that the Fund is unable to exit a derivative position because of market illiquidity, the Fund
may not be able to prevent further losses of value in its derivatives holdings and the liquidity of the Fund and its ability
to
meet redemption requests may be impaired to the extent that a substantial portion of the Fund’s otherwise liquid assets must be
used as margin. Another consequence of illiquidity is that the Fund may be required to hold a derivative instrument to maturity and take
or make delivery of the underlying asset that the Adviser would otherwise avoid.
◾
Futures
Contracts Risk. The volatility of futures contracts prices has
been historically greater than the volatility of stocks and bonds. The liquidity of the futures market depends on participants entering
into offsetting transactions rather than making or taking delivery. To the extent participants decide to make or take delivery, liquidity
in the futures market could be reduced. In addition, futures exchanges often impose a maximum permissible price movement on each futures
contract for each trading session. The Fund may be disadvantaged if it is prohibited from executing a trade outside the daily permissible
price movement.
◾
Other
Risks. Compared to other types of investments, derivatives may
be harder to value and may also be less tax efficient, as described under the “Taxes” section of the prospectus. In addition,
changes in government regulation of derivative instruments could affect the character, timing and amount of the Fund’s taxable income
or gains, and may limit or prevent the Fund from using certain types of derivative instruments as a part of its investment strategy, which
could make the investment strategy more costly to implement or require the Fund to change its investment strategy. Derivatives strategies
may not always be successful. For example, to the extent that the Fund uses derivatives for hedging or to gain or limit exposure to a
particular market or market segment, there may be imperfect correlation between the value of the derivative instrument and the value of
the instrument being hedged or the relevant market or market segment, in which case the Fund may not realize the intended benefits. There
is also the risk that during adverse market conditions, an instrument which would usually operate as a hedge provides no hedging benefits
at all. The Fund’s use of derivatives may be limited by the requirements for taxation of the Fund as a regulated investment company.
Non-Correlation
Risk. The Fund’s returns may not match the return of the
Underlying Index (that is, it may experience tracking error) for a number of reasons. For example, the Fund incurs operating expenses
not applicable to the Underlying Index and incurs costs in buying and selling securities, especially when rebalancing the Fund’s
securities holdings to reflect changes in the composition of the Underlying Index. To the extent that the Fund has recently commenced
operations and/or otherwise has a relatively small amount of assets, such transaction costs could have a proportionally greater impact
on the Fund. Additionally, if the Fund uses a sampling approach, it may result in returns for the Fund that are not as well-correlated
with the return of the Underlying Index as would be the case if the Fund purchased all of the securities in the Underlying Index in the
proportions represented in the Underlying Index.
The
performance of the Fund and the Underlying Index may vary due to asset
valuation differences and differences between the Fund’s portfolio and the Underlying Index resulting from legal restrictions, costs
or liquidity constraints. The Fund’s transactions, which are principally in cash and therefore could be subject to incurring higher
costs in buying or selling securities, may also contribute to tracking error. The Fund may fair value certain of the securities it holds.
To the extent the Fund calculates its NAV based on fair value prices, the Fund’s ability to track the Underlying Index may be adversely
affected. Since the Underlying Index is not subject to the tax diversification requirements to which the Fund must adhere, the Fund may
be required to deviate its investments from the securities contained in, and relative weightings of, the Underlying Index. The Fund may
not invest in certain securities included in the Underlying Index due to liquidity constraints. Liquidity constraints also may delay the
Fund’s purchase or sale of securities included in the Underlying Index. For tax efficiency purposes,
5 Invesco
S&P 500 Index Fund
the
Fund may sell certain securities to realize losses, causing it to deviate from the Underlying Index.
The
Fund generally attempts to remain fully invested in the constituents of
the Underlying Index. However, the Adviser may not fully invest the Fund at times, either as a result of cash flows into the Fund, to
retain a reserve of cash to meet redemptions and expenses, or because of low assets (particularly when the Fund is new and has operated
only for a short period).
The
investment activities of one or more of the Adviser’s affiliates, including
other subsidiaries of the Adviser’s parent company, Invesco Ltd., for their proprietary accounts and for client accounts also may
adversely impact the Fund’s ability to track the Underlying Index. For example, in regulated industries, certain emerging or international
markets and under corporate and regulatory ownership definitions, there may be limits on the aggregate amount of investment by affiliated
investors that may not be exceeded, or that may not be exceeded without the grant of a license or other regulatory or corporate consent,
or, if exceeded, may cause the Adviser, the Fund or other client accounts to suffer disadvantages or business restrictions. As a result,
the Fund may be restricted in its ability to acquire particular securities due to positions held by the Fund and the Adviser’s affiliates.
Sampling
Risk. The use of a representative sampling approach may result
in the Fund holding a smaller number of securities than are in the Underlying Index. As a result, an adverse development to an issuer
of securities that the Fund holds could result in a greater decline in NAV than would be the case if the Fund held all of the securities
in the Underlying Index. To the extent the assets in the Fund are smaller, these risks will be greater. In addition, by sampling the securities
in the Underlying Index, the Fund faces the risk that the securities selected for the Fund, in the aggregate, will not provide investment
performance matching that of the Underlying Index, thereby increasing tracking error.
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 1555 Peachtree Street, N.E., Atlanta, Georgia 30309. The Adviser, as successor in interest to multiple
investment advisers, has been an investment adviser since 1976.
Sub-Advisers.
Invesco has entered into one or more Sub-Advisory Agreements with certain affiliates to serve as sub-advisers to the Fund (the Sub-Advisers).
Invesco may appoint the Sub-Advisers from time to time to provide discretionary investment management services, investment advice, and/or
order execution services to the Fund. The Sub-Advisers and the Sub-Advisory Agreements are described in the SAI.
Exclusion
of Adviser from Commodity Pool Operator Definition
With
respect to the Fund, the Adviser has claimed an exclusion from the definition of “commodity pool operator” (CPO) under the
Commodity Exchange Act (CEA) and the rules of the Commodity Futures Trading Commission (CFTC) and, therefore, is not subject to CFTC registration
or regulation as a CPO. In addition, the Adviser is relying upon a related exclusion from the definition of “commodity trading advisor”
(CTA) under the CEA and the rules of the CFTC with respect to the Fund.
The
terms of the CPO exclusion require the Fund, among other things, to
adhere to certain limits on its investments in “commodity interests.”
Commodity
interests include commodity futures, commodity options and swaps, which in turn include non-deliverable forwards. The Fund is permitted
to invest in these instruments as further described in the Fund’s SAI. However, the Fund is not intended as a vehicle for trading
in the commodity futures, commodity options or swaps markets. The CFTC has neither reviewed nor approved the Adviser’s reliance
on these exclusions, or the Fund, its investment strategies or this prospectus.
Adviser
Compensation
During
the fiscal year ended August 31, 2022, the Adviser received compensation of 0.12% 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:
◾
Peter
Hubbard, Portfolio Manager, who has been responsible for the Fund since 2020 and has been associated with Invesco and/or its affiliates
since 2005.
◾
Pratik
Doshi, CFA, Portfolio Manager, who has been responsible for the Fund since 2020 and has been associated with Invesco and/or its affiliates
since 2018. From 2016 to 2018, Mr. Doshi earned his MBA from the University of Chicago. From 2014 to 2016, he was employed by Bank of
America-Merrill Lynch where he served as a vice president.
◾
Michael
Jeanette, Portfolio Manager, who has been responsible for the Fund since 2020 and has been associated with Invesco and/or its affiliates
since 2008.
◾
Tony
Seisser, Portfolio Manager, who has been responsible for the Fund since 2020 and has been associated with Invesco and/or its affiliates
since 2013.
More
information on the portfolio managers may be found at www.invesco.com/us.
The website is not part of this prospectus.
The
Fund’s SAI provides additional information about the portfolio managers’
investments in the Fund, a description of the compensation structure and information regarding other accounts managed.
Other Information
Sales
Charges
Purchases
of Class A shares of the Fund are subject to the maximum 5.50% initial sales charge as listed under the heading “Category I Initial
Sales Charges” in the “Shareholder Account Information—Initial Sales Charges (Class A Shares Only)” section of
the prospectus. Purchases of Class C shares are subject to a contingent deferred sales charge (CDSC) if you sell Class C shares within
one year of purchase; however, the CDSC shall not apply to the purchases of Class C shares where the selling broker-dealer was not paid
a commission at the time of purchase. For more information on CDSCs, see the “Shareholder Account Information—Contingent Deferred
Sales Charges (CDSCs)” section of this prospectus.
Dividends
and Distributions
The
Fund expects, based on its investment objective and strategies, that its distributions, if any, will consist of ordinary income, capital
gains or some combination of both.
Dividends
The
Fund generally declares and pays dividends from net investment income, if any, annually.
6 Invesco
S&P 500 Index Fund
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.
Disclaimers
The
Underlying Index is a product of S&P Dow Jones Indices LLC or its affiliates
(“SPDJI”) and has been licensed for use by Invesco. Standard & Poor’s®
and S&P®
are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”) and Dow Jones®
is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”). These trademarks have been licensed for use by
SPDJI and sublicensed for certain purposes by Invesco. It is not possible to invest directly in an index. The Fund is not sponsored, endorsed,
sold or promoted by SPDJI, Dow Jones, S&P, any of their respective affiliates (collectively, “S&P Dow Jones Indices”).
S&P Dow Jones Indices does not make any representation or warranty, express or implied, to the owners of the Fund or any member of
the public regarding the advisability of investing in securities generally or in the Fund particularly or the ability of the Underlying
Index to track general market performance. Past performance of an index is not an indication or guarantee of future results. S&P Dow
Jones Indices’ only relationship to Invesco with respect to the Underlying Index is the licensing of the Index and certain trademarks,
service marks and/or trade names of S&P Dow Jones Indices and/or its licensors. The Underlying Index is determined, composed and calculated
by S&P Dow Jones Indices without regard to Invesco or the Fund. S&P Dow Jones Indices has no obligation to take the needs of Invesco
or the owners of the Fund into consideration in determining, composing or calculating the Underlying Index. S&P Dow Jones Indices
is not responsible for and has not participated in the determination of the prices, and amount of the Fund or the timing of the issuance
or sale of the Fund or in the determination or calculation of the equation by which the Fund is to be converted into cash, surrendered
or redeemed, as the case may be. S&P Dow Jones Indices has no obligation or liability in connection with the administration, marketing
or trading of the Fund. There is no assurance that investment products based on the Underlying Index will accurately track index performance
or provide positive investment returns. S&P Dow Jones Indices LLC is not an investment or tax advisor. A tax advisor should be consulted
to evaluate the impact of any tax-exempt securities on portfolios and the tax consequences of making any particular investment decision.
Inclusion of a security within an index is not a recommendation by S&P Dow Jones Indices to buy, sell, or hold such security, nor
is it considered to be investment advice.
S&P
DOW JONES INDICES DOES NOT GUARANTEE THE ADEQUACY, ACCURACY, TIMELINESS
AND/OR THE COMPLETENESS OF THE UNDERLYING INDEX OR ANY DATA RELATED THERETO OR ANY COMMUNICATION, INCLUDING BUT NOT LIMITED TO, ORAL OR
WRITTEN COMMUNICATION (INCLUDING ELECTRONIC COMMUNICATIONS) WITH RESPECT THERETO. S&P DOW JONES INDICES SHALL NOT BE SUBJECT TO ANY
DAMAGES OR LIABILITY FOR ANY ERRORS, OMISSIONS, OR DELAYS THEREIN. S&P DOW JONES INDICES MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND
EXPRESSLY DISCLAIMS ALL WARRANTIES, OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE OR AS TO RESULTS TO BE OBTAINED BY INVESCO,
OWNERS OF THE FUND, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE UNDERLYING INDEX OR WITH RESPECT TO ANY DATA RELATED THERETO. WITHOUT
LIMITING ANY OF THE FOREGOING, IN NO EVENT WHATSOEVER SHALL S&P DOW JONES INDICES BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL,
PUNITIVE,
OR CONSEQUENTIAL DAMAGES INCLUDING BUT NOT LIMITED TO, LOSS OF PROFITS, TRADING LOSSES, LOST TIME OR GOODWILL, EVEN IF THEY HAVE BEEN
ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, WHETHER IN CONTRACT, TORT, STRICT LIABILITY, OR OTHERWISE. THERE ARE NO THIRD PARTY BENEFICIARIES
OF ANY AGREEMENTS OR ARRANGEMENTS BETWEEN S&P DOW JONES INDICES AND INVESCO, OTHER THAN THE LICENSORS OF S&P DOW JONES INDICES.
The
Adviser and its affiliates (collectively, the Adviser Parties) do not guarantee
the accuracy and/or the completeness of the Underlying Index or any data included therein, and the Adviser Parties shall have no liability
for any errors, omissions, restatements, re-calculations or interruptions therein.
The
Adviser Parties make no warranty, express or implied, as to results to
be obtained by the Fund, owners of shares of the Fund, or any other person or entity from the use of the Underlying Index or any data
included therein. The Adviser Parties make no express or implied warranties and expressly disclaim all warranties of merchantability or
fitness for a particular purpose or use with respect to the Underlying Index or any data included therein. Without limiting any of the
foregoing, in no event shall the Adviser Parties have any liability for any special, punitive, direct, indirect or consequential damages
(including lost profits) arising out of matters relating to the use of the Underlying Index, even if notified of the possibility of such
damages.
7 Invesco
S&P 500 Index Fund
Financial Highlights
The financial
highlights show the Fund’s financial history for the past five fiscal years or, if shorter, the period of operations of the Fund
or any of its share classes. The financial highlights table is intended to help you understand the Fund’s financial performance.
Certain information reflects financial results for a single Fund share.
The
total returns in the table represent the rate that an investor would have
earned (or lost) on an investment in the Fund (assuming reinvestment of all dividends and distributions).
This
information has been audited by PricewaterhouseCoopers LLP, an independent
registered public accounting firm, whose report, along with the Fund’s financial statements, is included in the Fund’s annual
report, which is available upon request.
|
|
Net
asset
value,
beginning
of
period |
Net
investment
income(a)
|
Net
gains
(losses)
on
securities
(both
realized
and
unrealized)
|
Total
from
investment
operations
|
Dividends
from
net
investment
income
|
Distributions
from
net
realized
gains
|
Total
distributions
|
Net
asset
value,
end
of
period |
Total
return
(b)
|
Net
assets,
end
of period
(000's
omitted) |
Ratio
of
expenses
to
average
net
assets
with
fee waivers
and/or
expenses
absorbed
|
Ratio
of
expenses
to
average net
assets
without
fee
waivers
and/or
expenses
absorbed
|
Ratio
of net
investment
income
to
average
net
assets |
Portfolio
turnover
(c)
|
|
Class
A | ||||||||||||||
|
Year
ended 08/31/22 |
$48.42
|
$0.44
|
$(5.97)
|
$(5.53)
|
$(0.39)
|
$(0.56)
|
$(0.95)
|
$41.94
|
(11.70)%
|
$1,392,433
|
0.54%
|
0.54%
|
0.95%
|
2%
|
|
Year
ended 08/31/21 |
37.59
|
0.39
|
10.94
|
11.33
|
(0.43)
|
(0.07)
|
(0.50)
|
48.42
|
30.46
|
1,544,523
|
0.54
|
0.54
|
0.93
|
5
|
|
Year
ended 08/31/20 |
31.59
|
0.45
|
6.21
|
6.66
|
(0.45)
|
(0.21)
|
(0.66)
|
37.59
|
21.33(d)
|
1,147,062
|
0.54(d)
|
0.54(d)
|
1.36(d)
|
2
|
|
Year
ended 08/31/19 |
31.63
|
0.45
|
0.20
|
0.65
|
(0.42)
|
(0.27)
|
(0.69)
|
31.59
|
2.36(d)
|
906,581
|
0.55(d)
|
0.55(d)
|
1.47(d)
|
3
|
|
Year
ended 08/31/18 |
26.93
|
0.38
|
4.69
|
5.07
|
(0.37)
|
—
|
(0.37)
|
31.63
|
18.96
|
805,009
|
0.57
|
0.57
|
1.30
|
4
|
|
| ||||||||||||||
|
Class
C | ||||||||||||||
|
Year
ended 08/31/22 |
46.48
|
0.09
|
(5.75)
|
(5.66)
|
(0.09)
|
(0.56)
|
(0.65)
|
40.17
|
(12.38)
|
329,140
|
1.29
|
1.29
|
0.20
|
2
|
|
Year
ended 08/31/21 |
36.09
|
0.12
|
10.52
|
10.64
|
(0.18)
|
(0.07)
|
(0.25)
|
46.48
|
29.65(e)
|
400,963
|
1.18(e)
|
1.18(e)
|
0.29(e)
|
5
|
|
Year
ended 08/31/20 |
30.36
|
0.19
|
5.96
|
6.15
|
(0.21)
|
(0.21)
|
(0.42)
|
36.09
|
20.41
|
353,371
|
1.30
|
1.30
|
0.60
|
2
|
|
Year
ended 08/31/19 |
30.43
|
0.21
|
0.21
|
0.42
|
(0.22)
|
(0.27)
|
(0.49)
|
30.36
|
1.60
|
294,011
|
1.31
|
1.31
|
0.71
|
3
|
|
Year
ended 08/31/18 |
25.95
|
0.17
|
4.51
|
4.68
|
(0.20)
|
—
|
(0.20)
|
30.43
|
18.11(e)
|
345,823
|
1.29(e)
|
1.29(e)
|
0.58(e)
|
4
|
|
| ||||||||||||||
|
Class
Y | ||||||||||||||
|
Year
ended 08/31/22 |
49.12
|
0.56
|
(6.05)
|
(5.49)
|
(0.50)
|
(0.56)
|
(1.06)
|
42.57
|
(11.48)
|
284,424
|
0.29
|
0.29
|
1.20
|
2
|
|
Year
ended 08/31/21 |
38.11
|
0.50
|
11.10
|
11.60
|
(0.52)
|
(0.07)
|
(0.59)
|
49.12
|
30.80
|
286,102
|
0.29
|
0.29
|
1.18
|
5
|
|
Year
ended 08/31/20 |
32.01
|
0.53
|
6.30
|
6.83
|
(0.52)
|
(0.21)
|
(0.73)
|
38.11
|
21.62
|
203,430
|
0.30
|
0.30
|
1.60
|
2
|
|
Year
ended 08/31/19 |
32.04
|
0.53
|
0.20
|
0.73
|
(0.49)
|
(0.27)
|
(0.76)
|
32.01
|
2.62
|
181,204
|
0.31
|
0.31
|
1.71
|
3
|
|
Year
ended 08/31/18 |
27.26
|
0.46
|
4.75
|
5.21
|
(0.43)
|
—
|
(0.43)
|
32.04
|
19.29
|
152,974
|
0.32
|
0.32
|
1.55
|
4
|
|
| ||||||||||||||
|
Class
R6 | ||||||||||||||
|
Year
ended 08/31/22 |
49.15
|
0.60
|
(6.05)
|
(5.45)
|
(0.53)
|
(0.56)
|
(1.09)
|
42.61
|
(11.40)
|
16,438
|
0.20
|
0.20
|
1.29
|
2
|
|
Year
ended 08/31/21 |
38.13
|
0.53
|
11.09
|
11.62
|
(0.53)
|
(0.07)
|
(0.60)
|
49.15
|
30.86
|
12,765
|
0.24
|
0.24
|
1.23
|
5
|
|
Year
ended 08/31/20 |
32.02
|
0.55
|
6.31
|
6.86
|
(0.54)
|
(0.21)
|
(0.75)
|
38.13
|
21.70
|
8,020
|
0.24
|
0.24
|
1.66
|
2
|
|
Year
ended 08/31/19 |
32.05
|
0.54
|
0.20
|
0.74
|
(0.50)
|
(0.27)
|
(0.77)
|
32.02
|
2.65
|
5,646
|
0.26
|
0.26
|
1.76
|
3
|
|
Year
ended 08/31/18 |
27.28
|
0.48
|
4.75
|
5.23
|
(0.46)
|
—
|
(0.46)
|
32.05
|
19.33
|
4,186
|
0.29
|
0.29
|
1.58
|
4
|
|
| ||||||||||||||
|
(a)
|
Calculated
using average shares outstanding. |
|
(b)
|
Includes
adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value
for financial reporting purposes and the returns
based
upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges
and is not annualized for periods less than one
year,
if applicable. |
|
(c)
|
Portfolio
turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
|
(d)
|
The
total return, ratio of expenses to average net assets and ratio of net investment income to average net assets reflect actual 12b-1 fees
of 0.24% for the years ended August 31, 2020 and
2019,
respectively. |
|
(e)
|
The
total return, ratio of expenses to average net assets and ratio of net investment income to average net assets reflect actual 12b-1 fees
of 0.89% and 0.97% for the years ended August 31,
2021
and August 31, 2018, respectively. |
8 Invesco
S&P 500 Index 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 all of the Invesco Funds and their share classes that have different fees and expenses.
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 |
|
|
▪ 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) |
A-1 The
Invesco Funds
MCF—12/22
|
Share
Classes |
|
|
|
|
|
Class
A |
Class
C |
Class
R |
Class
Y |
Class
R5 and R6 |
|
|
▪ 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 International Core Equity 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 a specific
Fund may make additional purchases into Class AX and CX, respectively, of such specific Fund. All references in this “Shareholder
Account Information” section of this prospectus to Class A, C or R shares of the Invesco Funds shall include Class AX
(excluding Invesco Government Money Market Fund), or CX shares, respectively, of the Invesco Funds, unless otherwise noted. All references
in this “Shareholder Account Information” section of this prospectus to Invesco Cash Reserve Shares of Invesco Government
Money Market Fund shall include Class AX shares of Invesco Government Money Market Fund, unless otherwise noted.
Class P
Shares
In
addition to the other share classes discussed herein, the Invesco Summit Fund offers Class P shares, which were historically sold
only through the AIM Summit Investors Plans I and II (each a Plan and, collectively, the Summit Plans). Class P shares are sold with
no initial sales charge and have a 12b-1 fee of 0.10%. However, Class P shares are not sold to members of the general public. Only
shareholders who had accounts in the Summit Plans at the close of business on December 8, 2006 may purchase Class P shares and
only until the total of their combined investments in the Summit Plans and in Class P shares directly equals the face amount of their
former Plan under the 30 year extended investment option. The face amount of a Plan is the combined total of all scheduled monthly
investments under the Plan. For a Plan with a scheduled monthly investment of $100.00, the face amount would have been $36,000.00 under
the 30 year extended investment option.
Class R
Shares
Class R
shares are intended for 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 (except for the Invesco Master Loan Fund) are available for use by Employer Sponsored Retirement and Benefit
Plans, held either at the plan level or through omnibus accounts, that generally process no more than one net redemption and one net purchase
transaction each day.
Class
R5 and R6 shares of the Funds are also available to institutional investors.
Institutional investors are: banks, trust companies, collective trust funds, entities acting for the account of a public entity (e.g.,
Taft-Hartley funds, states, cities or government agencies), funds of funds or other pooled investment vehicles, 529 college savings plans,
financial intermediaries and corporations investing for their own accounts, endowments and foundations. For information regarding investment
minimums for Class R5 and R6 shares, please see “Minimum Investments” below.
Class
R6 shares of the Funds are also available through an intermediary that
has agreed with Invesco Distributors, Inc. to make such shares
A-2 The
Invesco Funds
available
for use in retail omnibus accounts that generally process no more than one net redemption and one net purchase transaction each day.
The
Invesco Master Loan Fund is only available for purchase by other Funds
in the Invesco fund family and other Invesco pooled investment vehicles.
Shareholders
eligible to purchase Class R6 Shares must meet the requirements
specified by their intermediary. Not all intermediaries offer Class R6 Shares to their customers.
Class S
Shares
Class S
shares are limited to investors who purchase shares with the proceeds received from a systematic contractual investment plan redemption
within the 12 months prior to purchasing Class S shares, and who purchase through an approved financial intermediary that has
an agreement with the distributor to sell Class S shares. Class S shares are not otherwise sold to members of the general public.
An investor purchasing Class S shares will not pay an initial sales charge. The investor will no longer be eligible to purchase additional
Class S shares at that point where the value of the contributions to the prior systematic contractual investment plan combined with
the subsequent Class S share contributions equals the face amount of what would have been the investor’s systematic contractual
investment plan under the 30-year investment option. The face amount of a systematic contractual investment plan is the combined total
of all scheduled monthly investments under that plan. For a plan with a scheduled monthly investment of $100.00, the face amount would
have been $36,000.00 under the 30-year extended investment option.
Class Y
Shares
Class
Y shares are available to (i) investors who purchase through an account that is charged an asset-based fee or commission by a financial
intermediary, including through brokerage platforms, where a broker is acting as the investor’s agent, that may require the payment
by the investor of a commission and/or other form of compensation to that broker, (ii) endowments, foundations, or Employer Sponsored
Retirement and Benefit Plans (with the exception of “Solo 401(k)” Plans and 403(b) custodial accounts held directly at Invesco),
(iii) banks or bank trust departments acting on their own behalf or as trustee or manager for trust accounts, or (iv) any current, former
or retired trustee, director, officer or employee (or immediate family members of a current, former or retired trustee, director, officer
or employee) of any Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
Subject
to any conditions or limitations imposed on the servicing of Class
Y shares by your financial adviser, if you received Class Y shares as a result of a merger or reorganization of a predecessor fund into
any of the Funds, you will be permitted to make additional Class Y share purchases. In addition, you will be permitted to make additional
Class Y shares purchases if you owned Class Y shares in a “Solo 401(k)” Plan or 403(b) custodial account held directly at
Invesco if you held such shares in your account on or prior to May 24, 2019.
Investor
Class Shares
Investor
Class shares are sold with no initial sales charge and have a maximum 12b-1 fee of 0.25%. Only the following persons may purchase Investor
Class shares:
◾
Investors
who established accounts prior to April 1, 2002, in Investor Class shares with Invesco Distributors, Inc. (Invesco Distributors) who have
continuously maintained an account in Investor Class shares (this includes anyone listed in the registration of an account, such as a
joint owner, trustee or custodian, and immediate family members of such persons) without a designated intermediary. These investors are
referred to as “Investor Class grandfathered investors.”
◾
Customers
of a financial intermediary that has had an agreement with the Funds’ distributor or any Funds that offered Investor Class shares
prior to April 1, 2002, that has continuously maintained such agreement. These intermediaries are referred to as “Investor
Class grandfathered intermediaries.”
◾
Any
current, former or retired trustee, director, officer or employee (or immediate family member of a current, former or retired trustee,
director, officer or employee) of any Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
For
additional shareholder eligibility requirements with respect to Invesco
Premier Portfolio, please see “Shareholder Account Information – Purchasing Shares and Shareholder Eligibility – Invesco
Premier Portfolio.”
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.
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 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
A-4 The
Invesco Funds
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.
Merrill
Lynch
Shareholders
purchasing Fund shares through a Merrill
Lynch platform
or account will be eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at Merrill Lynch
◾
Employer-sponsored
retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to fund those plans,
provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the plan;
◾
Shares
purchased by a 529 Plan (does not include 529 Plan unit or 529-specific share classes or equivalents);
◾
Shares
purchased through a Merrill Lynch affiliated investment advisory program;
◾
Shares
exchanged due to the holdings moving from a Merrill Lynch affiliated investment advisory program to a Merrill Lynch brokerage (non-advisory)
account pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers;
◾
Shares
purchased by third party investment advisors on behalf of their advisory clients through Merrill Lynch’s platform;
◾
Shares
of funds purchased through the Merrill Edge Self-Directed platform (if applicable);
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not
any other fund within the fund family);
◾
Shares
exchanged from Class C (i.e.
level-load) shares of the same fund pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers;
◾
Employees
and registered representatives of Merrill Lynch or its affiliates and their family members;
◾
Directors
or Trustees of the Fund, and employees of the Fund’s investment adviser or any of its affiliates, as described in this prospectus;
and
◾
Eligible
shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days
following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to
a front-end or deferred sales load (known as Rights of Reinstatement). Automated transactions (i.e. systematic purchases and withdrawals)
and purchases made after shares are automatically sold to pay Merrill Lynch’s account maintenance fees are not eligible for reinstatement.
◾
CDSC
Waivers on A and C Shares available at Merrill Lynch
◾
Death
or disability of the shareholder;
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund’s prospectus;
◾
Return
of excess contributions from an IRA Account;
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts pursuant to the Internal Revenue Code;
◾
Shares
sold to pay Merrill Lynch fees but only if the transaction is initiated by Merrill Lynch;
◾
Shares
acquired through a right of reinstatement;
◾
Shares
held in retirement brokerage accounts, that are converted to a lower cost share class due to transfer to a fee based account or platform
(applicable to A and C shares only); and
◾
Shares
received through an exchange due to the holdings moving from a Merrill Lynch affiliated investment advisory program to a Merrill Lynch
brokerage (non-advisory) account pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers.
◾
Front-end
load Discounts Available at Merrill Lynch: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this prospectus;
◾
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts as described in the Fund’s prospectus will be automatically
calculated based on the aggregated holding of fund family assets held by accounts (including 529 program holdings, where applicable) within
the purchaser’s household at Merrill Lynch. Eligible fund family assets not held at Merrill Lynch may be included in the ROA calculation
only if the shareholder notifies his or her financial advisor about such assets; and
◾
Letters
of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Merrill Lynch, over
a 13-month period of time (if applicable).
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).
A-5 The
Invesco Funds
Morgan
Stanley Wealth Management
Shareholders
purchasing Fund shares through a Morgan Stanley
Wealth Management transactional brokerage account will be eligible
only for the following front-end sales charge waivers with respect to Class A shares, which may differ from and may be more limited than
those disclosed elsewhere in this Fund’s Prospectus or SAI.
◾
Front-end
Sales Charge Waivers on Class A Shares available at Morgan Stanley Wealth Management
◾
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and
defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs, SAR-SEPs
or Keogh plans;
◾
Morgan
Stanley employee and employee-related accounts according to Morgan Stanley’s account linking rules;
◾
Shares
purchased through reinvestment of dividends and capital gains distributions when purchasing shares of the same fund;
◾
Shares
purchased through a Morgan Stanley self-directed brokerage account;
◾
Class
C (i.e., level-load) shares that are no longer subject to a contingent deferred sales charge and are converted to Class A shares of the
same fund pursuant to Morgan Stanley Wealth Management’s share class conversion program; and
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (i) the repurchase occurs within 90 days following the
redemption, (ii) the redemption and purchase occur in the same account, and (iii) redeemed shares were subject to a front-end or deferred
sales charge.
Raymond
James Financial Services, Inc.
Shareholders
purchasing Fund shares through a Raymond
James Financial Services, Inc., Raymond James affiliates and each
entity’s affiliates (Raymond James) platform or account, or through an introducing broker-dealer or independent registered investment
adviser for which Raymond James provides trade execution, clearance, and/or custody services, will be eligible only for the following
load waivers (front-end sales charge waivers and contingent deferred, or back-end, sales charge waivers) and discounts, which may differ
from those disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
sales load waivers on Class A shares available at Raymond James
◾
Shares
purchased in an investment advisory program.
◾
Shares
purchased within the same fund family through a systematic reinvestment of capital gains distributions and dividend distributions.
◾
Employees
and registered representatives of Raymond James or its affiliates and their family members as designated by Raymond James.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (known as Rights of Reinstatement).
◾
A
shareholder in the Fund’s Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate
share class) of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures
of Raymond James.
◾
CDSC
Waivers on Classes A and C shares available at Raymond James
◾
Death
or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the fund’s prospectus.
◾
Return
of excess contributions from an IRA Account.
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based
on applicable IRS regulations as described in the fund’s prospectus.
◾
Shares
sold to pay Raymond James fees but only if the transaction is initiated by Raymond James.
◾
Shares
acquired through a right of reinstatement.
◾
Front-end
load discounts available at Raymond James: breakpoints, rights of accumulation, and/or letters of intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of
fund family assets held by accounts within the purchaser’s household at Raymond James. Eligible fund family assets not held at Raymond
James may be included in the calculation of rights of accumulation only if the shareholder notifies his or her financial advisor about
such assets.
◾
Letters
of intent which allow for breakpoint discounts based on anticipated purchases within a fund family, over a 13-month time period. Eligible
fund family assets not held at Raymond James may be included in the calculation of letters of intent only if the shareholder notifies
his or her financial advisor about such assets.
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.
A-6 The
Invesco Funds
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.
◾
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.
Oppenheimer
& Co. Inc. (“OPCO”)
Shareholders
purchasing Fund shares through an OPCO
platform or account are eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund's prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at OPCO
◾
Employer-sponsored
retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to
fund
those plans, provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the
plan
◾
Shares
purchased by or through a 529 Plan
◾
Shares
purchased through an OPCO affiliated investment advisory program
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not
any other fund within the fund family)
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (known as Rights of Reinstatement).
◾
A
shareholder in the Fund's Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate share
class) of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures of OPCO
◾
Employees
and registered representatives of OPCO or its affiliates and their family members
◾
Directors
or Trustees of the Fund, and employees of the Fund's investment adviser or any of its affiliates, as described in this prospectus
◾
CDSC
Waivers on A and C Shares available at OPCO
◾
Death
or disability of the shareholder
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund's prospectus
◾
Return
of excess contributions from an IRA Account
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based
on applicable IRS regulations as described in the prospectus
◾
Shares
sold to pay OPCO fees but only if the transaction is initiated by OPCO Shares acquired through a right of reinstatement
◾
Front-end
load Discounts Available at OPCO: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding
of fund family assets held by accounts within the purchaser's household at OPCO. Eligible fund family assets not held at OPCO may be included
in the ROA calculation only if the shareholder notifies his or her financial advisor about such assets.
Robert
W. Baird & Co. Incorporated (“Baird”)
Shareholders
purchasing fund shares through a Baird
platform or account will only be eligible for the following sales charge waivers (front-end sales charge waivers and CDSC waivers) and
discounts, which may differ from those disclosed elsewhere in this prospectus or the SAI.
◾
Front-End
Sales Charge Waivers on Class A-shares Available at Baird
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund.
◾
Shares
purchased by employees and registered representatives of Baird or its affiliate and their family members as designated by Baird.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales charge (known as rights of reinstatement).
◾
A
shareholder in the Fund’s Class C Shares will have their shares converted at net asset value to Class A shares of the fund if the
shares are no longer subject to CDSC and the conversion is in line with the policies and procedures of Baird.
◾
Employer-sponsored
retirement plans or charitable accounts in a transactional brokerage account at Baird, including 401(k) plans, 457 plans, employer-sponsored
403(b) plans, profit sharing and money
A-7 The
Invesco Funds
purchase
pension plans and defined benefit plans. For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs,
Simple IRAs or SAR-SEPs.
◾
CDSC
Waivers on Classes A and C shares Available at Baird
◾
Shares
sold due to death or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund’s Prospectus.
◾
Return
of excess contributions from an IRA Account.
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching age 72 as described in
the Fund’s prospectus.
◾
Shares
sold to pay Baird fees but only if the transaction is initiated by Baird.
◾
Shares
acquired through a right of reinstatement.
◾
Front-End
Sales Charge Discounts Available at Baird: Breakpoints, Rights of Accumulation and/or letters of intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of
fund family assets held by accounts within the purchaser’s household at Baird. Eligible fund family assets not held at Baird may
be included in the rights of accumulation calculation only if the shareholder notifies his or her financial advisor about such assets.
◾
Letters
of Intent (LOI) allow for breakpoint discounts based on anticipated purchases of within a fund family through Baird, over a 13-month period
of time.
Edward
D. Jones & Co., L.P. (“Edward Jones”)
Policies
Regarding Transactions Through Edward Jones
The
following information has been provided by Edward Jones:
The
following information supersedes prior information with respect to transactions
and positions held in fund shares through an Edward Jones system. Shareholders purchasing Fund shares through the Edward
Jones commission
and fee-based platforms will be eligible for the following load waivers (front- end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund's prospectus or statement of additional
information (“SAI”). 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 (including holdings of 529 Plans where Invesco serves as primary distributor), 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.
◾
Front-end
sales load waivers on Class A shares available at Edward Jones
◾
Associates
of Edward Jones and its affiliates and their family members who are 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: 1) the proceeds are
from the sale of shares within 60 days of the purchase, and 2) the sale and purchase are made in the same share class and the same account
or the purchase is made in an individual retirement account with proceeds from liquidations in a non-retirement account.
◾
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.
◾
CDSC
Waivers on Classes A and C shares available at Edward Jones
◾
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
sold 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 the qualified age based on applicable IRS regulations.
◾
Shares
sold 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 Minimum Balances, as described below.
◾
Front-end
load discounts available at Edward Jones: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoint
pricing, otherwise known as volume pricing, at dollar thresholds as described in the prospectus.
◾
Rights
of Accumulation (“ROA”) which entitles the shareholder to the applicable sales charge on a purchase of Class A shares will
be determined by taking into account all share classes (except certain money market funds and any assets held in group retirement plans)
of Invesco Funds (including holdings of 529 Plans where Invesco serves as primary distributor) 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).
◾
Letters
of Intent (“LOI”) allow shareholders to receive 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.
Other
Important Information Regarding Transactions Through Edward
Jones
Minimum
Purchase Amounts
•
Initial
purchase minimum: $250
•
Subsequent
purchase minimum: none
A-8 The
Invesco Funds
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.
Stifel,
Nicolaus & Company (“Stifel”)
Shareholders
purchasing Fund shares through a Stifel
platform or account will be eligible only for the following front-end sales charge waivers and discounts, which may differ from those
disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at Stifel: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this 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 Stifel. Eligible
fund family assets not held at Stifel may be included in the ROA calculation only if the shareholder notifies his or her financial advisor
about such assets; and
◾
Letters
of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Stifel, over a 13-month
period of time (if applicable).
◾
Shares
converted from Class C (i.e. level-load) shares of the same fund pursuant to Stifel policies relating to sales load discounts and waivers.
PFS
Investments Inc. (“PFSI”)
Policies
Regarding Transactions Through PFSI
The
following information supersedes all prior information with respect to transactions and positions held in fund shares purchased through
PFSI and held on the mutual fund platform of its affiliate, Primerica Shareholder Services (“PSS”). Clients of PFSI (also
referred to as “shareholders”) purchasing fund shares on the PSS platform are eligible only for the following share classes,
sales charge discounts (also referred to as “breakpoints”) and waivers, which can differ from share classes, discounts and
waivers described elsewhere in this prospectus or the related statement of additional information (“SAI”) or through another
broker-dealer. In all instances, it is the shareholder’s responsibility to inform PFSI at the time of a purchase of all holdings
of Invesco Funds on the PSS platform, or other facts qualifying the purchaser for discounts or waivers. PFSI may request reasonable documentation
of such facts, and condition the granting of any discount or waiver on the timely receipt of such documents. Shareholders should contact
PSS if they have questions regarding their eligibility for these discounts and waivers.
Share
Classes
◾
Class
A shares: in non-retirement accounts, individual retirement accounts (IRA), SEP IRAs, SIMPLE IRAs, Keogh Plans, and all other account
types unless expressly provided for below.
◾
Class
C shares: only in accounts with existing Class C share holdings.
Breakpoints
◾
Breakpoint
pricing at dollar thresholds as described in the prospectus of the fund you are purchasing.
Rights
of Accumulation (“ROA”)
◾
The
applicable sales charge on a purchase of Class A shares is determined by taking into account all share classes (except any assets held
in group retirement plans) of Invesco Funds held by the shareholder on the PSS Platform. The inclusion of eligible fund family assets
in the ROA calculation is dependent on the shareholder notifying PFSI of such assets at the time of calculation. Shares of money market
funds are
included
only if such shares were acquired in exchange for shares of another Invesco Fund purchased with a sales charge. No shares of Invesco Funds
held by the shareholder away from the PSS platform will be granted ROA with shares of any Invesco Fund purchased on the PSS platform.
◾
Any
SEP IRA plan, any SIMPLE IRA plan or any Payroll Deduction plan (“PDP”) on the PSS platform will be defaulted to plan-level
grouping for purposes of ROA, which allows each participating employee ROA with all other eligible shares held in plan accounts on the
PSS platform. At any time, a participating employee may elect to exercise a one-time option to change grouping for purposes of ROA to
shareholder- level grouping, which allows the plan account of the electing employee ROA with her other eligible holdings on the PSS platform,
but not with all other eligible participant holdings in the plan. Eligible shares held in plan accounts electing shareholder-level grouping
will not be available for purposes of ROA to plan accounts electing plan-level grouping.
◾
ROA
is determined by calculating the higher of cost minus redemptions or current market value (current shares x NAV).
Letter
of Intent (“LOI”)
◾
By
executing a LOI, shareholders can receive the sales charge and breakpoint discounts for purchases shareholders intend to make over a 13-month
period through PFSI, from the date PSS receives the LOI. The purchase price of the LOI is determined by calculating the higher of cost
or market value of qualifying holdings at LOI initiation in combination with the dollar amount the shareholder intends to invest over
a 13-month period to arrive at total investment for purposes of determining any breakpoint discount and the applicable front-end sales
charge. Each purchase the shareholder makes during that 13-month period will receive the sales charge and breakpoint discount that applies
to the projected total investment.
◾
Only
holdings of Invesco Funds on the PSS platform are eligible for inclusion in the LOI calculation and the shareholder must notify PFSI of
all eligible assets at the time of calculation.
◾
Purchases
made before the LOI is received by PSS are not adjusted under the LOI, and the LOI will not reduce any sales charge previously paid. Sales
charges will be automatically adjusted if the total purchases required by the LOI are not met.
◾
If
an employer maintaining a SEP IRA plan, SIMPLE IRA plan or non-IRA PDP on the PSS platform has elected to establish or change ROA for
the accounts associated with the plan to a plan-level grouping, LOIs will also be at the plan-level and may only be established by the
employer. LOIs are not available to PDP IRA plans on the PSS platform with plan-level grouping for purposes of ROA, but are available
to any participating employee that elects shareholder-level grouping for purposes of ROA.
Sales
Charge Waivers
Sales
charges are waived for the following shareholders and in the following
situations:
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment.
◾
Shares
purchased with the proceeds of redeemed shares of the same fund family so long as the following conditions are met: 1) the proceeds are
from the sale of shares within 90 days of the purchase, 2) the sale and purchase are made in the same share class and the same account
or the purchase is made in an individual retirement account with proceeds from liquidations in a non-retirement account, and 3) the redeemed
shares were subject to a front-end or deferred sales load, Automated transactions (i.e. systematic purchases and withdrawals), full or
partial transfers or rollovers of retirement accounts, and purchases made after shares are automatically sold to pay account maintenance
fees are not eligible for this sales charge waiver.
◾
Shares
exchanged into Class A shares from another share class so long as the exchange is into the same fund and was initiated at the discretion
of PFSI. PFSI is responsible for any remaining CDSC due to the fund company, if applicable. Any future purchases are subject to the applicable
sales charge as disclosed in the prospectus.
Policies
Regarding Fund Purchases Through PFSI That Are Not Held
on the PSS Platform
A-9 The
Invesco Funds
◾
Class
R shares
are available through PFSI only in 401(k) plans covering a business owner with no employees, commonly referred to as a one-participant
401(k) plan or solo 401(k).
UBS
Financial Services Inc. (“UBS”)
Pursuant
to an agreement with the Distributor, UBS may offer Class Y
shares
to its retail brokerage clients whose shares are held in omnibus
accounts at UBS, or its designee. For these clients, UBS may charge commissions or transaction fees with respect to brokerage transactions
in Class Y shares. The
minimum investment for Class Y shares is waived for transactions through such brokerage platforms at UBS. Please contact your UBS representative
for more information about these fees and other eligibility requirements.
Qualifying
for Reduced Sales Charges and Sales Charge Exceptions
The
following types of accounts qualify for reduced sales charges or sales charge exceptions under ROAs and LOIs:
1.
an
individual account owner;
2.
immediate
family of the individual account owner (which includes the individual’s spouse or domestic partner; the individual’s children,
step-children or grandchildren; the spouse or domestic partner of the individual’s children, step-children or grandchildren; the
individual’s parents and step-parents; the parents or step-parents of the individual’s spouse or domestic partner; the individual’s
grandparents; and the individual’s siblings);
3.
a
Retirement and Benefit Plan so long as the plan is established exclusively for the benefit of an individual account owner; and
4.
a
Coverdell Education Savings Account (Coverdell ESA), maintained pursuant to Section 530 of the Code (in either case, the account
must be established by an individual account owner or have an individual account owner named as the beneficiary thereof).
Alternatively,
an Employer Sponsored Retirement and Benefit Plan (but not including
plans utilizing the Invesco 403(b)(7) Custodial Account program, or the individual custodial accounts thereunder) or Employer Sponsored
IRA may be eligible to purchase shares pursuant to a ROA at the plan level, and receive a reduced applicable initial sales charge for
a new purchase based on the total value of the current purchase and the value of other shares owned by the plan’s participants if:
a)
the
employer or plan sponsor submits all contributions for all participating employees in a single contribution transmittal (the Invesco Funds
will not accept separate contributions submitted with respect to individual participants);
b)
each
transmittal is accompanied by checks or wire transfers; and
c)
if
the Invesco Funds are expected to carry separate accounts in the names of each of the plan participants, (i) the employer or plan
sponsor notifies Invesco Distributors or its designee in writing that the separate accounts of all plan participants should be linked,
and (ii) all new participant accounts are established by submitting an appropriate Account Application on behalf of each new participant
with the contribution transmittal.
Participant
accounts in a retirement plan that are eligible to purchase shares
pursuant to a ROA at the plan level may not also be considered eligible to do so for the benefit of an individual account owner.
In
all instances, it is the purchaser’s responsibility to notify Invesco Distributors
or its designee of any relationship or other facts qualifying the purchaser as eligible for reduced sales charges and/or sales charge
exceptions and to provide all necessary documentation of such facts in order to qualify for reduced sales charges or sales charge exceptions.
For additional information on linking accounts to qualify for ROA or LOI, please see the Funds’ SAI.
Purchases
of Class A shares of Invesco Conservative Income Fund, Invesco
Government Money Market Fund and Invesco Short Term Municipal Fund, Class AX shares or Invesco Cash Reserve Shares of Invesco Government
Money Market Fund and Invesco U.S. Government Money Portfolio, as applicable, or Investor Class shares of any Fund will not be
taken
into account in determining whether a purchase qualifies for a reduction in initial sales charges pursuant to ROAs or LOIs.
Rights
of Accumulation
Purchasers
that qualify for ROA may combine new purchases of Class A shares of a Fund with shares of the Fund or other open-end Invesco Funds
currently owned (Class A, C, IB, IC, P, R, S or Y) for the purpose of qualifying for the lower initial sales charge rates that apply
to larger purchases. The applicable initial sales charge for the new purchase will be based on the total of your current purchase and
the value of other shares owned based on their current public offering price. The Funds’ transfer agent may automatically link certain
accounts registered in the same name with the same taxpayer identification number for the purpose of qualifying you for lower initial
sales charge rates.
Letters
of Intent
Under
a LOI, you commit to purchase a specified dollar amount of Class A shares of one or more Funds during a 13-month period. The amount
you agree to purchase determines the initial sales charge you pay. If the full amount committed to in the LOI is not invested by the end
of the 13-month period, your account will generally be assessed the higher initial sales charge that would normally be applicable to the
total amount actually invested. Shares equal in value to 5% of the intended purchase amount will be held in escrow for this purpose.
Reinstatement
Following Redemption
If
you redeem any class of shares of a Fund, you may reinvest all or a portion of the proceeds from the redemption (and may include that
amount necessary to acquire a fractional Share to round off his or her purchase to the next full Share) in the same share class of any
Fund within 180 days of the redemption without paying an initial sales charge. Class P, S, and Y redemptions may be reinvested into Class
A shares without an initial sales charge.
This
reinstatement privilege does not apply to a purchase made through a
regularly scheduled automatic investment plan, such as a purchase by a regularly scheduled payroll deduction or transfer from a bank account.
This
reinstatement privilege shall be suspended for the period of time in which
a purchase block is in place on a shareholder’s account. Please see “Purchase Blocking Policy” discussed below.
In
order to take advantage of this reinstatement privilege, you must inform
your financial adviser or the Funds’ transfer agent that you wish to do so at the time of your reinvestment.
Contingent
Deferred Sales Charges (CDSCs)
CDSCs
on Class A Shares and Invesco Cash Reserve Shares
Any
shares of a Large Purchase of Class A shares redeemed prior to 18 months after the date of purchase will be subject to a CDSC of 1% with
the exception of Class A shares of Invesco Conservative Income Fund and Invesco Short Term Municipal Fund which do not have CDSCs on redemptions.
If
Invesco Distributors pays a concession to a financial intermediary in connection
with a Large Purchase of Class A shares by an Employer Sponsored Retirement and Benefit Plan or SIMPLE IRA Plan, the Class A shares will
be subject to a 1% CDSC if all of the Employer Sponsored Retirement and Benefit Plan’s or SIMPLE IRA’s shares are redeemed
within one year from the date of initial purchase.
If
you acquire Invesco Cash Reserve Shares or Class A shares of Invesco
Government Money Market Fund or Invesco Cash Reserve Shares of Invesco U.S. Government Money Portfolio through an exchange involving Class
A shares that were subject to a CDSC, the shares acquired as a result of the exchange will continue to be subject to that same CDSC.
CDSCs
on Class C Shares
Class
C shares are subject to a CDSC; however, the CDSC shall not apply to the purchases of Class C shares where the selling broker-dealer was
not paid a commission at the time of purchase. If you redeem your shares during the first year since your purchase has been made you will
be
A-10 The
Invesco Funds
assessed
a CDSC as disclosed in the “Fees and Expenses - Shareholder Fees” table in the prospectus, unless you qualify for one of the
CDSC exceptions outlined below.
CDSCs
on Class C Shares – Employer Sponsored Retirement and Benefit Plans and Employer Sponsored IRAs
Class
C shares are subject to a 1.00% CDSC at the time of redemption if all of the Employer Sponsored Retirement and Benefit Plan’s or
Employer Sponsored IRA’s shares are redeemed within one year from the date of initial purchase.
CDSCs
on Class C Shares of Invesco Short Term Bond Fund
Effective
November 1, 2021, Class C shares of Invesco Short Term Bond Fund are subject to a CDSC. If you acquire Class C shares of any other Fund
as a result of an exchange involving Class C shares of Invesco Short Term Bond Fund that were not subject to a CDSC prior to November
1, 2021, then the shares acquired as a result of the exchange will not be subject to a CDSC.
Computing
a CDSC
The
CDSC on redemptions of shares is computed based on the lower of their original purchase price or current net asset value, net of reinvested
dividends and capital gains distributions. In determining whether to charge a CDSC, shares are accounted for on a first-in, first-out
basis, which means that you will redeem shares on which there is no CDSC first, and then shares in the order of their purchase.
CDSC
Exceptions
Investors
who own shares that are otherwise subject to a CDSC will not pay a CDSC in the following circumstances:
◾
If
you participate in the Systematic Redemption Plan and withdraw up to 12% of the value of your shares that are subject to a CDSC in any
twelve-month period.
◾
If
you redeem shares to pay account fees.
◾
If
you are the executor, administrator or beneficiary of an estate or are otherwise entitled to assets remaining in an account following
the death or post-purchase disability of a shareholder or beneficial owner and you choose to redeem those shares.
There
are other circumstances under which you may be able to redeem shares
without paying CDSCs. For additional information about such circumstances, please see the Appendix entitled “Purchase, Redemption
and Pricing of Shares” in each Fund’s SAI.
Shares
acquired through the reinvestment of dividends and distributions are
not subject to CDSCs.
The
following share classes are sold without a CDSC:
◾
Class
A2 shares of Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund
◾
Class
A shares of Invesco Government Money Market Fund
◾
Invesco
Cash Reserve Shares of Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio
◾
Investor
Class shares of any Fund
◾
Class
P shares of Invesco Summit Fund
◾
Class
R5 and R6 shares of any Fund
◾
Class
R shares of any Fund
◾
Class
S shares of Invesco Charter Fund, Invesco Select Risk: Moderately Conservative Investor Fund, Invesco Select Risk: Growth Investor Fund,
Invesco Select Risk: Moderate Investor Fund and Invesco Summit Fund
◾
Class
Y shares of any Fund
Purchasing
Shares and Shareholder Eligibility
Invesco
Premier U.S. Government Money Portfolio
For
Invesco Premier U.S. Government Money Portfolio, you may purchase shares using one of the options below. Unless the Fund closes early
on a business day, the Fund’s transfer agent will generally accept any purchase order placed until 5:00 p.m. Eastern Time on a business
day and may accept a purchase order placed until 5:30 p.m. Eastern Time on a business
day.
If you wish to place an order between 5:00 p.m. and 5:30 p.m. Eastern Time on a business day, you must place such order by telephone;
however, the Fund’s transfer agent reserves the right to reject or limit the amount of orders placed during this time. If the Fund
closes early on a business day, the Fund’s transfer agent must receive your purchase order prior to such closing time. Purchase
orders will not be processed unless the account application and purchase payment are received in good order. In accordance with the USA
PATRIOT Act, if you fail to provide all the required information requested in the current account application, your purchase order will
not be processed. Additionally, federal law requires that the Fund verifies and records your identifying information.
Invesco
Premier Portfolio
Only
accounts beneficially owned by natural persons will be permitted to retain their shares. The Fund has implemented policies and procedures
reasonably designed to limit all beneficial owners of the Fund to natural persons, and investments in the Fund are limited to accounts
beneficially owned by natural persons. Natural persons may invest in the Fund through certain tax-advantaged savings accounts, trusts
and other retirement and investment accounts, which may include, among others: participant-directed defined contribution plans; individual
retirement accounts; simplified employee pension arrangements; simple retirement accounts; custodial accounts; deferred compensation plans
for government or tax-exempt organization employees; Archer medical savings accounts; college savings plans; health savings account plans;
ordinary trusts and estates of natural persons; or certain other retirement and investment accounts with ultimate investment authority
held by the natural person beneficial owner, notwithstanding having an institutional decision maker making day-to-day decisions (e.g.,
a plan sponsor in certain retirement arrangements or an investment adviser managing discretionary investment accounts).
Further,
financial intermediaries may only submit purchase orders if they have
implemented policies and procedures reasonably designed to limit all investors on behalf of whom they submit orders to accounts beneficially
owned by natural persons. Financial intermediaries may be required to provide a written statement or other representation that they have
in place, and operate in compliance with, such policies and procedures prior to submitting purchase orders. Such policies and procedures
may include provisions for the financial intermediary to promptly report to the Fund or the transfer agent the identification of any shareholder
of the Fund that does not qualify as a natural person of whom they are aware and promptly take steps to redeem any such shareholder’s
shares of the Fund upon request by the Fund or the transfer agent, in such manner as it may reasonably request. The Fund may involuntarily
redeem any such shareholder who does not voluntarily redeem their shares.
Natural
persons may purchase shares using one of the options below. For
all classes of the Fund, other than Investor Class shares, unless the Fund closes early on a business day, the Fund’s transfer agent
will generally accept any purchase order placed until 5:00 p.m. Eastern Time on a business day and may accept a purchase order placed
until 5:30 p.m. Eastern Time on a business day. If you wish to place an order between 5:00 p.m. and 5:30 p.m. Eastern Time on a business
day, you must place such order by telephone; or send your request by a pre-arranged Liquidity Link data transmission however, the Fund’s
transfer agent reserves the right to reject or limit the amount of orders placed during this time. For Investor Class shares of the Fund,
unless the Fund closes early on a business day, the Fund’s transfer agent will generally accept any purchase order placed until
4:00 p.m. Eastern Time on a business day and may accept a purchase order placed until 4:30 p.m. Eastern Time on a business day. If you
wish to place an order between 4:00 p.m. and 4:30 p.m. Eastern Time on a business day, you must place such order by telephone; however,
the Fund’s transfer agent reserves the right to reject or limit the amount of orders placed during this time. If the Fund closes
early on a business day, the Fund’s transfer agent must receive your purchase order prior to such closing time. Purchase orders
will not be processed unless the account application and purchase payment are received in good order. In accordance with the USA PATRIOT
Act, if you fail to provide all the required information requested in the current account application, your purchase order will not be
A-11 The
Invesco Funds
processed.
Additionally, federal law requires that the Fund verify and record your identifying information.
Minimum Investments
There
are no minimum investments for Class P or S shares for fund accounts. The minimum investments for Class A, C, R, Y, Investor Class and
Invesco Cash Reserve shares for fund accounts are as follows:
|
Type
of Account |
Initial
Investment
Per
Fund |
Additional
Investments
Per
Fund |
|
Asset
or fee-based accounts managed by your financial
adviser
|
None
|
None
|
|
| ||
|
Employer
Sponsored Retirement and Benefit Plans and
Employer
Sponsored IRAs |
None
|
None
|
|
| ||
|
IRAs
and Coverdell ESAs if the new investor is
purchasing
shares through a systematic purchase plan |
$25
|
$25
|
|
| ||
|
All
other accounts if the investor is purchasing shares
through
a systematic purchase plan |
50
|
50
|
|
| ||
|
IRAs
and Coverdell ESAs |
250
|
25
|
|
| ||
|
All
other accounts |
1,000
|
50
|
|
| ||
Invesco
Distributors or its designee has the discretion to accept orders on behalf of clients for lesser amounts.
The
minimum investments for Class R5 and R6 shares are as follows:
There
is no minimum initial investment for an Employer Sponsored Retirement
and Benefit Plan investing through a retirement platform that administers at least $2.5 billion in retirement plan assets. All other Employer
Sponsored Retirement and Benefit Plans must meet a minimum initial investment of at least $1 million in each Fund in which it invests.
The
minimum initial investment in each share class for all other institutional
investors is $1 million, unless such investment is made by (i) an investment company, as defined under the 1940 Act, as amended, that
is part of a family of investment companies which own in the aggregate at least $100 million in securities, or (ii) an account established
with a 529 college savings plan managed by Invesco, in which case there is no minimum initial investment.
There
are no minimum investment amounts for Class R6 shares held through
retail omnibus accounts where the intermediary:
◾
generally
charges an asset-based fee or commission in addition to those described in this prospectus; and
◾
maintains
Class R6 shares and makes them available to retail investors.
A
financial intermediary may impose different investment minimums than
those set forth above. The Fund is not responsible for any investment minimums imposed by financial intermediaries or for notifying shareholders
of any changes to them. See “Waivers Available Through Certain Financial Intermediaries and Other Financial Intermediary-Specific
Arrangements” for more information on certain intermediary-specific investment minimums. Please consult with your financial intermediary
if you have any questions regarding their policies.
How
to Purchase Shares*
|
|
Opening
An Account |
Adding
To An Account |
|
Through
a
Financial
Adviser
or
Financial
Intermediary*
|
Contact
your financial adviser or
financial
intermediary. |
Contact
your financial adviser or
financial
intermediary. |
|
By
Mail |
Mail
completed account application
and
check to the Funds’ transfer
agent,
Invesco
Investment Services, Inc.
P.O.
Box 219078,
Kansas
City, MO 64121-9078.
The
Funds’ transfer agent does NOT
accept
the following types of
payments:
Credit Card Checks,
Temporary/Starter
Checks, Third
Party
Checks, and Cash. |
Mail
your check and the remittance
slip
from your confirmation
statement
to the Funds’ transfer
agent.
The Funds’ transfer agent
does
NOT accept the following
types
of payments: Credit Card
Checks,
Temporary/Starter Checks,
Third
Party Checks, and Cash. |
|
|
Opening
An Account |
Adding
To An Account |
|
By
Wire* |
Mail
completed account application
to
the Funds’ transfer agent. Call
the
Funds’ transfer agent at (800)
959-4246
to receive a reference
number.
Then, use the wire
instructions
provided below. |
Call
the Funds’ transfer agent to
receive
a reference number. Then,
use
the wire instructions provided
below.
|
|
Wire
Instructions |
Beneficiary
Bank ABA/Routing #: 011001234
Beneficiary
Account Number: 729639
Beneficiary
Account Name: Invesco Investment Services, Inc.
RFB:
Fund Name, Reference #
OBI:
Your Name, Account # | |
|
By
Telephone* |
Open
your account using one of the
methods
described above. |
The
Bank Account Information
option
on your completed account
application
or complete a
Systematic
Options and Bank
Information
Form. Mail the
application
or form to the Funds’
transfer
agent. Once the Funds’
transfer
agent has received the
form,
call the Funds’ transfer agent
at
the number below to place your
purchase
order. For Class R5 and
R6
shares, call the Funds’ transfer
agent
at (800) 959-4246 and wire
payment
for your purchase order in
accordance
with the wire
instructions
listed above. |
|
Automated
Investor
Line |
Open
your account using one of the
methods
described above. |
Call
the Funds’ transfer agent’s
24-hour
Automated Investor Line at
1-800-246-5463.
You may place
your
order after you have provided
the
bank instructions that will be
requested.
|
|
By
Internet |
Open
your account using one of the
methods
described above. |
Access
your account at
www.invesco.com/us.
The proper
bank
instructions must have been
provided
on your account. You may
not
purchase shares in Retirement
and
Benefit Plans on the internet. |
|
*Class
R5 and R6 shares may only be purchased through a financial intermediary or by
telephone
at (800) 959-4246. | ||
Non-retirement
retail investors, including high net worth investors investing
directly or through a financial intermediary, are not eligible for Class R5 shares. IRAs and Employer Sponsored IRAs are also not eligible
for Class R5 shares. If you hold your shares through a financial intermediary, the terms by which you purchase, redeem and exchange shares
may differ than the terms in this prospectus depending upon the policies and procedures of your financial intermediary.
Purchase
orders will not be processed unless the account application and
purchase payment are received in good order. In accordance with the USA PATRIOT Act, if you fail to provide all the required information
requested in the current account application, your purchase order will not be processed. Additionally, federal law requires that the Funds
verify and record your identifying information.
Systematic
Purchase Plan (Available for all classes except Class R5 and R6 shares)
You
can arrange for periodic investments in any of the Funds by authorizing the Funds’ transfer agent to withdraw the amount of your
investment from your bank account on a day or dates you specify and in an amount of at least $25 per Fund for IRAs and Coverdell ESAs,
and at least $50 per Fund for all other types of accounts (a Systematic Purchase Plan). You may stop the Systematic Purchase Plan at any
time by giving the Funds’ transfer agent notice ten days prior to your next scheduled withdrawal. Certain financial advisers and
other financial intermediaries may also offer systematic purchase plans.
A-12 The
Invesco Funds
Dollar
Cost Averaging (Available for all classes except Class R5 and R6 shares)
Dollar
Cost Averaging allows you to make automatic periodic exchanges, if permitted, from one Fund to another Fund or multiple other Funds. The
account from which exchanges are to be made must have a minimum balance of $5,000 before you can use this option. Exchanges will occur
on (or about) the day of the month you specify, in the amount you specify. Dollar Cost Averaging cannot be set up for the 29th through
the 31st of the month. The minimum amount you can exchange to another Fund is $50. Your financial intermediary may offer alternative dollar
cost averaging programs with different requirements.
Automatic
Dividend and Distribution Investment
Your
dividends and distributions may be paid in cash or reinvested in the same Fund or another Fund without paying an initial sales charge.
Unless
you specify otherwise, your dividends and distributions will automatically
be reinvested in the same Fund. You must comply with the following requirements to be eligible to invest your dividends and distributions
in shares of another Fund:
◾
Your
account balance in the Fund paying the dividend or distribution must be at least $5,000; and
◾
Your
account balance in the Fund receiving the dividend or distribution must be at least $500.
If
you elect to receive your distributions by check, and the distribution amount
is $25 or less, then the amount will be automatically reinvested in the same Fund and no check will be issued. If you have elected to
receive distributions by check, and the postal service is unable to deliver checks to your address of record, then your distribution election
may be converted to having all subsequent distributions reinvested in the same Fund and no checks will be issued. With respect to certain
account types, if your check remains uncashed for six months, the Fund generally reserves the right to reinvest your distribution check
in your account at the then applicable NAV and to reinvest all subsequent distributions in shares of the Fund. Such checks will be reinvested
into the same share class of the Fund. You should contact the Funds’ transfer agent to change your distribution option, and your
request to do so must be received by the Funds’ transfer agent before the record date for a distribution in order to be effective
for that distribution. No interest will accrue on amounts represented by uncashed distribution checks.
Redeeming
Shares*
The
Funds’ transfer agent or authorized intermediary, if applicable, must receive your call before the Funds’ net asset value
determination (as defined by the applicable Fund) in order to effect the redemption at that day’s net asset value.
Your
broker or financial intermediary may charge service fees for handling
redemption transactions.
|
How
to Redeem Shares | |
|
Through
a Financial
Adviser
or Financial
Intermediary*
|
Contact
your financial adviser or financial intermediary. The Funds’
transfer
agent must receive your financial adviser’s or financial
intermediary’s
call before the Funds’ net asset value determination
(as
defined by the applicable Fund) in order to effect the redemption
at
that day’s net asset value. Please contact your financial adviser or
financial
intermediary with respect to reporting of cost basis and
available
elections for your account. |
|
By
Mail |
Send
a written request to the Funds’ transfer agent which includes: |
|
|
▪ Original
signatures of all registered owners/trustees;
▪ The
dollar value or number of shares that you wish to redeem;
▪ The
name of the Fund(s) and your account number;
▪ The
cost basis method or specific shares you wish to redeem for
tax
reporting purposes, if different than the method already on
record;
and |
|
|
▪ Signature
guarantees, if necessary (see below).
The
Funds’ transfer agent may require that you provide additional
documentation,
or information, such as corporate resolutions or
powers
of attorney, if applicable. If you are redeeming from a
Retirement
and Benefit Plan, you must complete the appropriate
distribution
form. |
|
How
to Redeem Shares | |
|
By
Telephone* |
Call
the Funds’ transfer agent at 1-800-959-4246. You will be
allowed
to redeem by telephone if:
▪ Your
redemption proceeds are to be mailed to your address on
record
(and there has been no change in your address of record
within
the last 15 days) or transferred electronically to a
pre-authorized
checking account;
▪ You
can provide proper identification information;
▪ Your
redemption proceeds do not exceed $250,000 per Fund; and
▪ You
have not previously declined the telephone redemption
privilege.
|
|
|
You
may, in limited circumstances, initiate a redemption from an
Invesco
IRA by telephone. Redemptions from Employer Sponsored
Retirement
and Benefit Plans and Employer Sponsored IRAs may be
initiated
only in writing and require the completion of the appropriate
distribution
form, as well as employer authorization. You must call the
Funds’
transfer agent before the Funds’ net asset value
determination
(as defined by the applicable Fund) in order to effect
the
redemption at that day’s net asset value. |
|
Automated
Investor Line |
Call
the Funds’ transfer agent’s 24-hour Automated Investor Line at
1-800-246-5463.
You may place your redemption order after you
have
provided the bank instructions that will be requested. |
|
By
Internet |
Place
your redemption request at www.invesco.com/us. You will be
allowed
to redeem by Internet if:
▪ You
can provide proper identification information;
▪ Your
redemption proceeds do not exceed $250,000 per Fund; and
▪ You
have already provided proper bank information.
Redemptions
from Employer Sponsored Retirement and Benefit
Plans
and Employer Sponsored IRAs may be initiated only in writing
and
require the completion of the appropriate distribution form, as
well
as employer authorization. |
|
*Class
R5 and R6 shares may only be redeemed through a financial intermediary or by
telephone
at (800) 959-4246. | |
Timing
and Method of Payment
The
Funds’ transfer agent typically expects to pay redemption proceeds to redeeming shareholders within one business day after a redemption
request is received in good order, regardless of the method a Fund uses to make such payment. However, a Fund may take up to seven days
to process a redemption request. “Good order” means that all necessary information and documentation related to the redemption
request have been provided to the Funds’ transfer agent or authorized intermediary, if applicable. If your request is not in good
order, the Funds’ transfer agent may require additional documentation in order to redeem your shares. If you redeem shares recently
purchased by check or ACH, you may be required to wait up to ten calendar days before your redemption proceeds are sent. This delay is
necessary to ensure that the purchase has cleared. You can avoid the check hold period if you pay for your shares with a certified check,
a cashier’s check or a federal wire. Payment may be postponed under unusual circumstances, as allowed by the SEC, such as when the
NYSE restricts or suspends trading.
In
addition, a temporary hold may be placed on the disbursement of redemption
proceeds from an account if there is a reasonable belief that financial exploitation of a Specified Adult (as defined below) has occurred,
is occurring, has been attempted, or will be attempted. Notice of such a delay will be provided in accordance with regulatory requirements.
This temporary hold will be for an initial period of no more than 15 business days while an internal review is performed. Should the internal
review support the belief that financial exploitation has occurred, is occurring, has been attempted or will be attempted, the temporary
hold may be extended for up to 10 additional business days. Both the initial and subsequent hold on the disbursement may be terminated
or extended by a state regulator or an agency or court of competent jurisdiction. For purposes of this paragraph, the term “Specified
Adult” refers to an individual who is (a) a natural person age 65 and older, or (b) a natural person age 18 and older who is reasonably
believed to have a mental or physical impairment that renders the individual unable to protect his or her own interests.
If
you redeem by telephone, the Funds’ transfer agent will transmit the amount
of redemption proceeds electronically to your pre-authorized bank account. Redemption checks are mailed to your address of record, via
first
A-13 The
Invesco Funds
class
U.S. mail, unless you make other arrangements with the Funds’ transfer agent.
The
Funds’ transfer agent uses reasonable procedures to confirm that instructions
communicated via telephone and the Internet are genuine, and the Funds and the Funds’ transfer agent are not liable for losses arising
from actions taken in accordance with instructions that are reasonably believed to be genuine.
A
Fund typically expects to use holdings of cash and cash equivalents and
sales of portfolio assets to meet redemption requests, both regularly and in stressed market conditions. The Funds also have the ability
to redeem in kind as further described below under “Redemptions in Kind.” Certain Funds have a line of credit,
as disclosed in such Funds’ principal investment strategy
and risk disclosures that may be used to meet redemptions in stressed market conditions.
Expedited
Redemptions (for Invesco Cash Reserve Shares of Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio only)
If
you place your redemption order by telephone, before 11:30 a.m. Eastern Time and request an expedited redemption, the Funds’ transfer
agent will transmit payment of redemption proceeds on that same day via federal wire to a bank of record on your account. If the Funds’
transfer agent receives your redemption order after 11:30 a.m. Eastern Time and before the close of the customary trading session of the
NYSE, it will transmit payment on the next business day.
Suspension
of Redemptions
The
right of redemption may be suspended or the date of payment postponed when (a) trading on the NYSE is restricted, as determined by applicable
rules and regulations of the SEC, (b) the NYSE is closed for other than customary weekend and holiday closings, (c) the SEC has by order
permitted such suspension, or (d) an emergency as determined by the SEC exists making disposition of portfolio securities or the valuation
of the net assets of the Fund not reasonably practicable. With respect to Invesco Government Money Market Fund, Invesco U.S. Government
Money Portfolio, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio, in the event that the Fund, at the end
of a business day, has invested less than 10% of its total assets in weekly liquid assets or, with respect to the retail and government
money market funds, the Fund’s price per share as computed for the purpose of distribution, redemption and repurchase, rounded to
the nearest 1%, has deviated from the stable price established by the Fund’s Board of Trustees (“Board”) or the Board,
including a majority of trustees who are not interested persons as defined in the 1940 Act, determines that such a deviation is likely
to occur, and the Board, including a majority of trustees who are not interested persons of the Fund, irrevocably has approved the liquidation
of the Fund, the Fund’s Board has the authority to suspend redemptions of Fund shares.
Liquidity
Fees and Redemption Gates
For
Invesco Premier Portfolio, if the Fund’s weekly liquid assets fall below 30% of its total assets, the Board, in its discretion,
may impose liquidity fees of up to 2% of the value of the shares redeemed and/or suspend redemptions (redemption gates). In addition,
if any such Fund’s weekly liquid assets falls below 10% of its total assets at the end of any business day, the Fund must impose
a 1% liquidity fee on shareholder redemptions unless the Board determines that not doing so is in the best interests of the Fund.
Liquidity
fees and redemption gates are most likely to be imposed, if at all,
during times of extraordinary market stress. In the event that a liquidity fee or redemption gate is imposed, the Board expects that for
the duration of its implementation and the day after which such gate or fee is terminated, the Fund would strike only one net asset value
per day, at the Fund’s last scheduled net asset value calculation time.
The
imposition and termination of a liquidity fee or redemption gate will be
reported by a Fund to the SEC on Form N-CR. Such information will also be available on the Fund’s website. In addition, a Fund will
communicate such action through a supplement to its registration statement and may further communicate such action through a press release
or by other means. If a liquidity fee is applied by the Board, it will be charged on all
redemption
orders submitted after the effective time of the imposition of the fee by the Board. Liquidity fees would reduce the amount you receive
upon redemption of your shares. In the event a Fund imposes a redemption gate, the Fund or any financial intermediary on its behalf will
not accept redemption requests until the Fund provides notice that the redemption gate has been terminated.
Redemption
requests submitted while a redemption gate is imposed will be cancelled
without further notice. If shareholders still wish to redeem their shares after a redemption gate has been lifted, they will need to submit
a new redemption request.
Liquidity
fees and redemption gates will generally be used to assist a Fund
to help preserve its market–based NAV per share. It is possible that a liquidity fee will be returned to shareholders in the form
of a distribution. The Board may, in its discretion, terminate a liquidity fee or redemption gate at any time if it believes such action
to be in the best interest of a Fund. Also, liquidity fees and redemption gates will automatically terminate at the beginning of the next
business day once a Fund’s weekly liquid assets reach at least 30% of its total assets. Redemption gates may only last up to 10
business days in any 90-day period. When a fee or a gate is in place, the Fund may elect not to permit the purchase of shares or to subject
the purchase of shares to certain conditions, which may include affirmation of the purchaser’s knowledge that a fee or a gate is
in effect. When a fee or a gate is in place, shareholders will not be permitted to exchange into or out of a Fund.
There
is some degree of uncertainty with respect to the tax treatment of liquidity
fees received by a Fund, and such tax treatment may be the subject to future IRS guidance. If a Fund receives liquidity fees, it will
consider the appropriate tax treatment of such fees to the Fund at such time.
Financial
intermediaries are required to promptly take the steps requested
by the Funds or their designees to impose or help to implement a liquidity fee or redemption gate as requested from time to time, including
the rejection of orders due to the imposition of a fee or gate or the prompt re-confirmation of orders following a notification regarding
the implementation of a fee or gate. If a liquidity fee is imposed, these steps are expected to include the submission of separate, rather
than combined, purchase and redemption orders from the time of the effectiveness of the liquidity fee or redemption gate and the submission
of such order information to the Fund or its designee prior to the next calculation of a Fund’s net asset value. Unless otherwise
agreed to between a Fund and financial intermediary, the Fund will withhold liquidity fees on behalf of financial intermediaries. With
regard to such orders, a redemption request that a Fund determines in its sole discretion has been received in good order by the Fund
or its designated agent prior to the imposition of a liquidity fee or redemption gate may be paid by the Fund despite the imposition of
a redemption gate or without the deduction of a liquidity fee. If a liquidity fee is imposed during the day, an intermediary who receives
both purchase and redemption orders from a single account holder is not required to net the purchase and redemption orders. However, the
intermediary is permitted to apply the liquidity fee to the net amount of redemptions (even if the purchase order was received prior to
the time the liquidity fee was imposed).
Where
a Financial Intermediary serves as a Fund’s agent for the purpose
of receiving orders, trades that are not transmitted to the Fund by the Financial Intermediary before the time required by the Fund or
the transfer agent may, in the Fund’s discretion, be processed on an as-of basis, and any cost or loss to the Fund or transfer agent
or their affiliates, from such transactions shall be borne exclusively by the Financial Intermediary.
Systematic
Withdrawals (Available for all classes except Class R5 and R6 shares)
You
may arrange for regular periodic withdrawals from your account in amounts equal to or greater than $50 per Fund. The Funds’ transfer
agent will redeem the appropriate number of shares from your account to provide redemption proceeds in the amount requested. You must
have a total account balance of at least $5,000 in order to establish a Systematic Redemption Plan, unless you are establishing a Required
Minimum
A-14 The
Invesco Funds
Distribution
for a Retirement and Benefit Plan. You can stop this plan at any time by giving ten days’ prior notice to the Funds’ transfer
agent.
Check
Writing
The
Funds’ transfer agent provides check writing privileges for accounts in the following Funds and share classes:
◾
Invesco
Government Money Market Fund, Invesco Cash Reserve Shares, Class AX shares, Class Y shares and Investor Class shares
◾
Invesco
U.S. Government Money Portfolio, Invesco Cash Reserve Shares and Class Y shares
◾
Invesco
Premier Portfolio, Investor Class shares
◾
Invesco
Premier U.S. Government Money Portfolio, Investor Class shares
You
may redeem shares of these Funds by writing checks in amounts of $250
or more if you have subscribed to the service by completing a Check Writing authorization form.
Check
writing privileges are not available for Retirement and Benefit Plans.
Checks are not eligible to be converted to ACH by the payee. You may not give authorization to a payee by phone to debit your account
by ACH for a debt owed to the payee.
If
you do not have a sufficient number of shares in your account to cover
the amount of the check and any applicable deferred sales charge, the check will be returned and no shares will be redeemed. Because it
is not possible to determine your account’s value in advance, you should not write a check for the entire value of your account
or try to close your account by writing a check.
A
check writing redemption request which is verifiably submitted to a Fund’s
agent before a liquidity fee or redemption gate is imposed will be considered a valid redemption and will be processed normally.
Signature
Guarantees
The
Funds’ transfer agent requires a signature guarantee in the following circumstances:
◾
When
your redemption proceeds exceed $250,000 per Fund.
◾
When
you request that redemption proceeds be paid to someone other than the registered owner of the account.
◾
When
you request that redemption proceeds be sent somewhere other than the address of record or bank of record on the account.
◾
When
you request that redemption proceeds be sent to a new address or an address that changed in the last 15 days.
The
Funds’ transfer agent will accept a guarantee of your signature by a number
of different types of financial institutions. Call the Funds’ transfer agent for additional information. Some institutions have
transaction amount maximums for these guarantees. Please check with the guarantor institution to determine whether the signature guarantee
offered will be sufficient to cover the value of your transaction request.
Redemptions
in Kind
Although
the Funds generally intend to pay redemption proceeds solely in cash, the Funds reserve the right to determine, in their sole discretion,
whether to satisfy redemption requests by making payment in securities or other property (known as a redemption in kind). Redemptions
in kind may result in transaction costs and/or market fluctuations associated with liquidating or holding the securities, respectively.
Purchases-in-Kind
You
may purchase shares of a Fund by transferring securities to a Fund in exchange for Fund shares (“in-kind purchases”). In-kind
purchases may be made only upon the Funds’ approval and determination that the securities are acceptable investments for the Fund
and are purchased consistent with the Fund’s procedures relating to in-kind purchases. The Funds reserve the right to amend or terminate
this practice at any time. You must call the Funds at (800) 959-4246 before sending any securities. Please see the SAI for additional
details.
Redemptions
by Large Shareholders
At
times, the Fund may experience adverse effects when certain large shareholders redeem large amounts of shares of the Fund. Large redemptions
may cause the Fund to sell portfolio securities at times when it would not otherwise do so. In addition, these transactions may also
accelerate
the realization of taxable income to shareholders (if applicable) if such sales of investments resulted in gains and may also increase
transaction costs and/or increase in the Fund’s expense ratio. When experiencing a redemption by a large shareholder, the Fund may
delay payment of the redemption request up to seven days to provide the investment manager with time to determine if the Fund can redeem
the request-in-kind or to consider other alternatives to lessen the harm to remaining shareholders. Under certain circumstances, however,
the Fund may be unable to delay a redemption request, which could result in the automatic processing of a large redemption that is detrimental
to the Fund and its remaining shareholders.
Redemptions
Initiated by the Funds
If
your account (Class A, C, P, S and Investor Class shares only) has been open at least one year, you have not made an additional purchase
in the account during the past six calendar months, and the value of your account falls below $500 for three consecutive months, the Funds
have the right to redeem the account after giving you 60 days’ prior written notice. You may avoid having your account redeemed
during the notice period by bringing the account value up to $500 or by initiating a Systematic Purchase Plan.
A
financial intermediary may have a different policy regarding redemptions
of accounts with small balances. The Fund is not responsible for any small account balance policies imposed by financial intermediaries
or for notifying shareholders of any changes to them. See “Waivers Available Through Certain Financial Intermediaries and Other
Financial Intermediary-Specific Arrangements” for more information on certain intermediary-specific small account balance policies.
Please consult with your financial intermediary if you have any questions regarding their policies.
If
a Fund determines that you have not provided a correct Social Security
or other tax identification number on your account application, or the Fund is not able to verify your identity as required by law, the
Fund may, at its discretion, redeem the account and distribute the proceeds to you.
In
order to separate retail investors (natural persons) and non-retail investors,
the Invesco Premier Portfolio reserve the right to redeem shares in any account that the Funds cannot confirm to their satisfaction are
beneficially owned by natural persons. The Funds will provide advance written notice of their intent to make any such involuntary redemptions.
The Funds reserve the right to redeem shares in any account that they cannot confirm to their satisfaction are beneficially owned by natural
persons, after providing advance notice.
Neither
a Fund nor its investment adviser will be responsible for any loss
in an investor’s account or tax liability resulting from an involuntary redemption.
Minimum
Account Balance (Available for all classes except Class R5 and R6 shares)
A
low balance fee of $12 per year may be deducted in the fourth quarter of each year from all accounts held in the Funds (each a Fund Account)
with a value less than the low balance amount (the Low Balance Amount) as determined from time to time by the Funds and the Adviser. The
Funds and the Adviser generally expect the Low Balance Amount to be $750, but such amount may be adjusted for any year depending on various
factors, including market conditions. The Low Balance Amount and the date on which it will be deducted from any Fund Account will be posted
on our website, www.invesco.com/us, on or about November 1 of each year. This fee will be payable to the Funds’ transfer agent by
redeeming from a Fund Account sufficient shares owned by a shareholder and will be used by the Funds’ transfer agent to offset amounts
that would otherwise be payable by the Funds to the Funds’ transfer agent under the Funds’ transfer agency agreement with
the Funds’ transfer agent. The low balance fee does not apply to participant accounts in advisory programs or to Employer Sponsored
Retirement and Benefit Plans.
Exchanging
Shares
You
may, under certain circumstances, exchange shares in one Fund for those of another Fund. An exchange is the purchase of shares in one
Fund which is paid for with the proceeds from a redemption of shares of another
A-15 The
Invesco Funds
Fund
effectuated on the same day. Any gain on the transaction may be subject to federal income tax. Accordingly, the procedures and processes
applicable to redemptions of Fund shares, as discussed under the heading “Redeeming Shares” above, will apply. Before requesting
an exchange, review the prospectus of the Fund you wish to acquire.
All
exchanges are subject to the limitations set forth in the prospectuses of
the Funds. If you wish to exchange shares of one Fund for those of another Fund, you must consult the prospectus of the Fund whose shares
you wish to acquire to determine whether the Fund is offering shares to new investors and whether you are eligible to acquire shares of
that Fund.
Permitted
Exchanges
Except
as otherwise provided herein or in the SAI, you generally may exchange your shares for shares of the same class of another Fund. The following
table shows generally permitted exchanges from one Fund to another Fund (exceptions listed below under “Exchanges Not Permitted”):
|
Exchange
From |
Exchange
To |
|
Invesco
Cash Reserve Shares |
Class
A, C, R, Investor Class |
|
| |
|
Class
A |
Class
A, Investor Class, Invesco Cash Reserve Shares* |
|
| |
|
Class
A2 |
Class
A, Investor Class, Invesco Cash Reserve Shares |
|
| |
|
Class
AX |
Class
A, AX, Investor Class, Invesco Cash Reserve Shares |
|
| |
|
Investor
Class |
Class
A, Investor Class |
|
| |
|
Class
P |
Class
A, Invesco Cash Reserve Shares |
|
| |
|
Class
S |
Class
A, S, Invesco Cash Reserve Shares |
|
| |
|
Class
C |
Class
C* |
|
| |
|
Class
CX |
Class
C, CX |
|
| |
|
Class
R |
Class
R* |
|
| |
|
Class
R5 |
Class
R5 |
|
| |
|
Class
R6 |
Class
R6 |
|
| |
|
Class
Y |
Class
Y* |
|
|
|
|
* You
may exchange Class Y shares of Invesco U.S. Government Money Portfolio for Class A, C
or
R shares of any other Fund as long as you are otherwise eligible for such share class. If you
exchange
Class Y shares of Invesco U.S. Government Money Portfolio for Class A, C or R shares
of
any other Fund, you may exchange those Class A, C or R shares back into Class Y shares of
Invesco
U.S. Government Money Portfolio, but not Class Y shares of any other Fund. | |
Exchanges
into Invesco Senior Loan Fund
Invesco
Senior Loan Fund is a closed-end interval fund that continuously offers its shares pursuant to the terms and conditions of its prospectus.
The Adviser is the investment adviser for the Invesco Senior Loan Fund. As with the Invesco Funds, you generally may exchange your shares
of Class A (Invesco Cash Reserve Shares of Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio) or Class
C of any Invesco Fund for shares of Class A or Class C, respectively, of Invesco Senior Loan Fund. Please refer to the prospectus for
the Invesco Senior Loan Fund for more information, including limitations on exchanges out of Invesco Senior Loan Fund.
Exchanges
Not Permitted
The
following exchanges are not permitted:
◾
Investor
Class shares cannot be exchanged for Class A shares of any Fund which offers Investor Class shares.
◾
Class A2
shares of Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund cannot be exchanged for Class A shares
of those Funds.
◾
Invesco
Cash Reserve Shares cannot be exchanged for Class C or R shares if the shares being exchanged were acquired by exchange from Class A
shares of any Fund.
◾
All
existing systematic exchanges and reallocations will cease and these options will no longer be available on all 403(b) prototype plans.
◾
Class
A, C or R shares of a Fund acquired by exchange of Class Y shares of Invesco U.S. Government Money Portfolio cannot be exchanged for Class
Y shares of any Fund, except Class Y shares of Invesco U.S. Government Money Portfolio.
Exchange
Conditions
Shares
must have been held for at least one day prior to the exchange with the exception of dividends and distributions that are reinvested.
Under
unusual market conditions, a Fund may delay the exchange of shares
for up to five business days if it determines that it would be materially disadvantaged by the immediate transfer of exchange proceeds.
The exchange privilege is not an option or right to purchase shares. Any of the participating Funds or the distributor may modify or terminate
this privilege at any time.
Initial
Sales Charges, CDSCs and 12b-1 Fees Applicable to Exchanges
You
may be required to pay an initial sales charge when exchanging from a Fund with a lower initial sales charge than the one into which you
are exchanging. If you exchange into shares that are subject to a CDSC, the Funds’ transfer agent will begin the holding period
for purposes of calculating the CDSC on the date you made your initial purchase.
In
addition, as a result of differences in the forms of distribution plans among
the Funds, certain exchanges of Class A shares, Class C shares, and Class R shares of a Fund for the same class of shares of another Fund
may result in investors paying a higher or a lower 12b-1 fee on the Fund being exchanged into. Please refer to the prospectus fee table
and financial highlights table and the SAI for more information on the fees and expenses, including applicable 12b-1 fees, of the Fund
you wish to acquire.
Share
Class Conversions
Shares
of one class of a Fund may be converted into shares of another class of the same Fund, provided that you are eligible to buy that share
class. Investors who hold Fund shares through a financial intermediary that does not have an agreement to make certain share classes of
the Funds available or that cannot systematically support the conversion may not be eligible to convert their shares. Furthermore, your
financial intermediary may have discretion to effect a conversion on your behalf. Consult with your financial intermediary for details.
Any CDSC associated with the converting shares will be assessed immediately prior to the conversion to the new share class. The conversion
of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes and no gain
or loss will be reported on the transaction. See the applicable prospectus for share class information.
Fees
and expenses differ between share classes. You should read the prospectus
for the share class into which you are seeking to convert your shares prior to the conversion.
Automatic
Conversion of Class C and Class CX Shares
Class
C and Class CX shares held for eight years after purchase are eligible for automatic conversion into Class A and Class AX shares of the
same Fund, respectively, except that for the Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio, the Funds’
Class C and/or Class CX shares would be eligible to automatically convert into the Fund’s Invesco Cash Reserve Share Class and all
existing Class C shares of Invesco Short Term Municipal Fund will automatically convert to Class A shares of that Fund at the end of June
2022 (the Conversion Feature). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month
following the eighth anniversary after a purchase of Class C or Class CX shares (the Conversion Date). The first conversion of Class C
and Class CX shares to Class A and Class AX shares under this policy would occur at the end of December 2020 for all Class C and Class
CX shares that were held for more than eight years as of November 30, 2020.
Automatic
conversions pursuant to the Conversion Feature will be on the basis
of the NAV per share, without the imposition of any sales charge (including a CDSC), fee or other charge. All such automatic conversions
of Class C and Class CX shares will constitute tax-free exchanges for federal income tax purposes.
Class
C and Class CX shares of a Fund acquired through a reinvestment of
dividends and distributions will convert to Class A and Class AX shares, respectively, of the Fund (or Invesco Cash Reserve shares for
Invesco
A-16 The
Invesco Funds
Government
Money Market Fund) on the Conversion Date pro rata with the converting Class C and Class CX shares of that Fund that were not acquired
through reinvestment of dividends and distributions.
Class
C or Class CX shares held through a financial intermediary in existing
omnibus Employer Sponsored Retirement and Benefit Plans and other omnibus accounts may be converted pursuant to the Conversion Feature
by the financial intermediary once it is determined that the Class C or Class CX shares have been held for the required holding period.
It is the financial intermediary’s (and not the Fund’s) responsibility to keep records and to ensure that the shareholder
is credited with the proper holding period as the Fund and its agents may not have transparency into how long a shareholder has held Class
C or Class CX shares for purposes of determining whether such Class C or Class CX shares are eligible to automatically convert pursuant
to the Conversion Feature. In order to determine eligibility for automatic conversion in these circumstances, it is the responsibility
of the shareholder or their financial intermediary to determine that the shareholder is eligible to exercise the Conversion Feature, and
the shareholder or their financial intermediary may be required to maintain records that substantiate the holding period of Class C or
Class CX shares.
In
addition, a financial intermediary may sponsor and/or control programs
or platforms that impose a different conversion schedule or eligibility requirements for conversions of Class C or Class CX shares. In
these cases, Class C and Class CX shares of certain shareholders may not be eligible for automatic conversion pursuant to the Conversion
Feature as described above. The Fund has no responsibility for overseeing, monitoring or implementing a financial intermediary’s
process for determining whether a shareholder meets the required holding period for automatic conversion. Please consult with your financial
intermediary if you have any questions regarding the Conversion Feature.
Share
Class Conversions Not Permitted
The
following share class conversions are not permitted:
◾
Conversions
into Class A from Class A2 of the same Fund.
◾
Conversions
into Class A2, Class AX, Class CX, Class P or Class S of the same Fund.
Rights
Reserved by the Funds
Each
Fund and its agents reserve the right at any time to:
◾
Reject
or cancel all or any part of any purchase or exchange order.
◾
Modify
any terms or conditions related to the purchase, redemption or exchange of shares of any Fund.
◾
Reject
or cancel any request to establish a Systematic Purchase Plan or Systematic Redemption Plan.
◾
Modify
or terminate any sales charge waivers or exceptions.
◾
Suspend,
change or withdraw all or any part of the offering made by this prospectus.
Excessive
Short-Term Trading Activity (Market Timing) Disclosures
While
the Funds provide their shareholders with daily liquidity, their investment programs are designed to serve long-term investors and are
not designed to accommodate excessive short-term trading activity in violation of our policies described below. Excessive short-term trading
activity in the Funds’ shares (i.e., a purchase of Fund shares followed shortly thereafter by a redemption of such shares, or vice
versa) may hurt the long-term performance of certain Funds by requiring them to maintain an excessive amount of cash or to liquidate portfolio
holdings at a disadvantageous time, thus interfering with the efficient management of such Funds by causing them to incur increased brokerage
and administrative costs. Where excessive short-term trading activity seeks to take advantage of arbitrage opportunities from stale prices
for portfolio securities, the value of Fund shares held by long-term investors may be diluted. The Board has adopted policies and procedures
designed to discourage excessive or short-term trading of Fund shares for all Funds except the money market funds, Invesco Conservative
Income Fund, and Invesco Short Term Municipal Fund. However, there is the risk that these Funds’ policies and procedures will prove
ineffective in whole or in part to detect or prevent excessive or
short-term
trading. These Funds may alter their policies at any time without prior notice to shareholders if the Adviser believes the change would
be in the best interests of long-term shareholders.
Invesco
and certain of its corporate affiliates (Invesco and such affiliates,
collectively, the Invesco Affiliates) currently use the following tools designed to discourage excessive short-term trading in the retail
Funds:
◾
Trade
activity monitoring.
◾
Discretion
to reject orders.
◾
Purchase
blocking.
◾
The
use of fair value pricing consistent with the valuation policy approved by the Board and related procedures.
Each
of these tools is described in more detail below. Although these tools
are designed to discourage excessive short-term trading, you should understand that none of these tools alone nor all of them taken together
eliminate the possibility that excessive short-term trading activity in the Funds will occur. Moreover, each of these tools involves judgments
that are inherently subjective. Invesco Affiliates seek to make these judgments to the best of their abilities in a manner that they believe
is consistent with long-term shareholder interests.
Money
Market Funds. The Boards of Invesco Government Money Market Fund,
Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio (the money market
funds) have not adopted any policies and procedures that would limit frequent purchases and redemptions of such Funds’ shares. The
Boards of the money market funds considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal. Nonetheless, to the extent that a money market fund must maintain additional cash and/or
securities with short-term durations in greater amounts than may otherwise be required or borrow to honor redemption requests, the money
market fund’s yield could be negatively impacted.
The
Boards of the money market funds do not believe that it is appropriate
to adopt any such policies and procedures for the money market funds for the following reasons:
◾
The
money market funds are offered to investors as cash management vehicles; therefore, investors should be able to purchase and redeem shares
regularly and frequently.
◾
One
of the advantages of a money market fund as compared to other investment options is liquidity. Any policy that diminishes the liquidity
of the money market funds will be detrimental to the continuing operations of such Funds.
◾
With
respect to the money market funds maintaining a constant net asset value, the money market funds’ portfolio securities are valued
on the basis of amortized cost, and such Funds seek to maintain a constant net asset value. As a result, the money market funds are not
subject to price arbitrage opportunities.
◾
With
respect to the money market funds maintaining a constant net asset value, because such Funds seek to maintain a constant net asset value,
investors are more likely to expect to receive the amount they originally invested in the Funds upon redemption than other mutual funds.
Invesco
Conservative Income Fund. The Board of Invesco Conservative Income
Fund has not adopted any policies and procedures that would limit frequent purchases and redemptions of such Fund’s shares. The
Board of Invesco Conservative Income Fund considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal especially in light of the reasons for not having such a policy as described below. Nonetheless,
to the extent that the Fund must maintain additional cash and/or securities with short-term durations in greater amounts than may otherwise
be required or borrow to honor redemption requests, the Fund’s yield could be negatively impacted.
The
Board of the Invesco Conservative Income Fund does not believe that
it is appropriate to adopt any such policies and procedures for the Fund for the following reasons:
◾
The
Fund is offered to investors as a cash management vehicle; investors perceive an investment in the Fund as an alternative to cash and
must be able to purchase and redeem shares regularly and frequently.
A-17 The
Invesco Funds
◾
One
of the advantages of the Fund as compared to other investment options is liquidity. Any policy that diminishes the liquidity of the Fund
will be detrimental to the continuing operations of the Fund.
Excessive
trading activity in the Fund’s shares may cause the Fund to incur
increased brokerage and administrative costs.
The
Fund and its agent reserve the right at any time to reject or cancel any
part of any purchase order. This could occur if the Fund determines that such purchase may disrupt the Fund’s operation or performance.
Invesco
Short Term Municipal Fund. The Board of Invesco Short Term Municipal
Fund has not adopted any policies and procedures that would limit frequent purchases and redemptions of such Fund’s shares. The
Board of Invesco Short Term Municipal Fund considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal, especially in light of the reasons for not having such a policy as described below. Nonetheless,
to the extent that the Fund must maintain additional cash and/or securities with short-term durations in greater amounts than may otherwise
be required or borrow to honor redemption requests, the Fund’s yield could be negatively impacted.
The
Board of Invesco Short Term Municipal Fund does not believe that it is
appropriate to adopt any such policies and procedures for the Fund for the following reasons:
◾
The
Fund is designed to address the needs of retail investors who seek liquidity in their investment and seek the ability to purchase and
redeem shares at any time.
◾
Any
policy that diminishes the ability of shareholders to purchase and redeem shares of the Fund will be detrimental to the continuing operations
of the Fund.
◾
The
Fund generally invests in short duration liquid investment grade municipal securities.
Excessive
trading activity in the Fund’s shares may cause the Fund to incur
increased brokerage and administrative costs. The Fund and its agent reserve the right at any time to reject or cancel any part of any
purchase order. This could occur if the Fund determines that such purchase may disrupt the Fund’s operation or performance.
Trade
Activity Monitoring
Invesco
Affiliates monitor selected trades on a daily basis in an effort to detect excessive short-term trading activities. If, as a result of
this monitoring, Invesco Affiliates believe that a shareholder has engaged in excessive short-term trading, they will seek to act in a
manner that they believe is consistent with the best interests of long-term investors, which may include taking steps such as (i) asking
the shareholder to take action to stop such activities or (ii) refusing to process future purchases or exchanges related to such activities
in the shareholder’s accounts other than exchanges into a money market fund. Invesco Affiliates will use reasonable efforts to apply
the Funds’ policies uniformly given the practical limitations described above.
The
ability of Invesco Affiliates to monitor trades that are made through accounts
that are maintained by intermediaries (rather than the Funds’ transfer agent) and through conduit investment vehicles may be limited
or non-existent.
Discretion
to Reject Orders
If
a Fund or an Invesco Affiliate determines, in its sole discretion, that your short-term trading activity is excessive, the Fund may, in
its sole discretion, reject any additional purchase and exchange orders. This discretion may be exercised with respect to purchase or
exchange orders placed directly with the Funds’ transfer agent or through a financial intermediary.
Purchase
Blocking Policy
The
Funds (except those listed below) have adopted a policy under which any shareholder redeeming shares having a value of $50,000 or more
from a Fund on any trading day will be precluded from investing in that Fund for 30 calendar days after the redemption transaction date.
The policy applies to redemptions and purchases that are part of exchange transactions. Under the purchase blocking policy, certain purchases
will not be prevented and certain redemptions will not trigger a purchase block, such as: purchases
and redemptions
of shares having a value of less than $50,000; systematic purchase, redemption and exchange account options; transfers of shares within
the same Fund; non-discretionary rebalancing in fund-of-funds; asset allocation features; fee-based accounts; account maintenance fees;
small balance account fees; plan-level omnibus Retirement and Benefit Plans; death and disability and hardship distributions; loan transactions;
transfers of assets; Retirement and Benefit Plan rollovers; IRA conversions and re-characterizations; and mandatory distributions from
Retirement and Benefit Plans.
The
Funds reserve the right to modify any of the parameters (including those
not listed above) of the purchase blocking policy at any time. Further, the purchase blocking policy may be waived with respect to specific
shareholder accounts in those instances where the Adviser determines that its surveillance procedures are adequate to detect frequent
trading in Fund shares.
If
an account is maintained by a financial intermediary whose systems are
unable to apply Invesco’s purchase blocking policy, the Adviser will accept the establishment of an account only if the Adviser
believes the policies and procedures are reasonably designed to enforce the frequent trading policies of the Funds. You should refer to
disclosures provided by the financial intermediary with which you have an account to determine the specific trading restrictions that
apply to you. If the Adviser identifies any activity that may constitute frequent trading, it reserves the right to contact the intermediary
and request that the intermediary either provide information regarding an account owner’s transactions or restrict the account owner’s
trading. There is no guarantee that all instances of frequent trading in Fund shares will be prevented.
The
purchase blocking policy does not apply to Invesco Conservative Income
Fund, Invesco Short Term Municipal Fund, Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government
Money Portfolio and Invesco U.S. Government Money Portfolio.
Pricing
of Shares
Determination
of Net Asset Value
The
price of each Fund’s shares is the Fund’s net asset value per share. The Funds (except Invesco Government Money Market Fund,
Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio) value portfolio
securities for which market quotations are readily available at market value. Securities and other assets quoted in foreign currencies
are valued in U.S. dollars based on the prevailing exchange rates on that day. The Funds (except Invesco Government Money Market Fund,
Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio) value securities
and assets for which market quotations are unavailable at their “fair value,” which is described below. Invesco Government
Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio
value portfolio securities on the basis of amortized cost, which approximates market value. This method of valuation is designed to enable
a Fund to price its shares at $1.00 per share. The Funds cannot guarantee their net asset value will always remain at $1.00 per share.
Securities and other assets quoted in foreign currencies are valued in U.S. dollars based on the prevailing exchange rates on that day.
The Fund values securities and assets for which market quotations are unavailable at their “fair value,” which is described
below.
Even
when market quotations are available, they may be stale or not
representative of market value in the Adviser’s judgment (“unreliable”)
because the security is not traded frequently, trading on the security
ceased before the close of the trading market or issuer specific events occurred after the security ceased trading or because of the passage
of time between the close of the market on which the security trades and the close of the NYSE and when the Fund calculates its net asset
value. Issuer specific events may cause the last market quotation to be unreliable. Such events may include a merger or insolvency, events
that affect a geographical area or an industry segment, such as political events or natural disasters, or market events, such as a significant
movement in the U.S. market. Where
A-18 The
Invesco Funds
the Adviser
determines that the closing price of the security is stale or unreliable, the Adviser will value the security at its fair value.
A
fair value price is an estimated price that requires consideration of all appropriate factors, including indications of fair value available
from pricing services. Fair value pricing involves judgment and a Fund that uses fair value methodologies may value securities higher
or lower than another Fund using market quotations or its own fair value methodologies to price the same securities. Investors who purchase
or redeem Fund shares on days when the Fund is holding fair-valued securities may receive a greater or lesser number of shares, or higher
or lower redemption proceeds, than they would have received if the Fund had not fair-valued the security or had used a different methodology.
The
Board has designated the Adviser to perform the daily determination
of fair value prices in accordance with Board approved
policies and related procedures,
subject to the Board’s oversight. Fair value pricing methods
and pricing services can change from time to time.
The
intended effect of applying fair value pricing is to compute an NAV that
accurately reflects the value of a Fund’s portfolio at the time that the NAV is calculated. An additional intended effect is to
discourage those seeking to take advantage of arbitrage opportunities resulting from “stale” prices and to mitigate the dilutive
impact of any such arbitrage. However, the application of fair value pricing cannot eliminate the possibility that arbitrage opportunities
will exist.
Specific
types of securities are valued as follows:
Senior
Secured Floating Rate Loans and Senior Secured Floating Rate Debt
Securities. Senior secured floating rate loans and senior secured
floating rate debt securities are fair valued using evaluated quotes provided by an independent pricing service. Evaluated quotes provided
by the pricing service may reflect appropriate factors such as market quotes, ratings, tranche type, industry, company performance, spread,
individual trading characteristics, institution-size trading in similar groups of securities and other market data.
Domestic
Exchange Traded Equity Securities. Market quotations are generally
available and reliable for domestic exchange traded equity securities. If market quotations are not available or are unreliable, the Adviser
will value the security at fair value in good faith using the valuation policy approved by the Board and related procedures.
Foreign
Securities. If market quotations are available and reliable for
foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign
securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular
security and the close of the customary trading session on the NYSE events occur that are significant and may make the closing price unreliable,
the Fund may fair value the security. If an issuer specific event has occurred that the Adviser determines, in its judgment, is likely
to have affected the closing price of a foreign security, it will price the security at fair value. The Adviser also relies on a screening
process from a pricing vendor to indicate the degree of certainty, based on historical data, that the closing price in the principal market
where a foreign security trades is not the current market value as of the close of the NYSE. For foreign securities where the Adviser
believes, at the approved degree of certainty, that the price is not reflective of current market value, the Adviser will use the indication
of fair value from the pricing service to determine the fair value of the security. The pricing vendor, pricing methodology or degree
of certainty may change from time to time.
Fund
securities primarily traded on foreign markets may trade on days that
are not business days of the Fund. Because the net asset value of Fund shares is determined only on business days of the Fund, the value
of the portfolio securities of a Fund that invests in foreign securities may change on days when you will not be able to purchase or redeem
shares of the Fund.
Fixed
Income Securities. Fixed income securities, such as government,
corporate, asset-backed and municipal bonds, convertible securities, including high yield or junk bonds, and loans, generally are valued
on the basis of prices provided by independent pricing services. Prices provided by the pricing services may be determined without exclusive
reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in
similar
groups of securities, developments related to special securities, dividend rate, maturity and other market data. Pricing services generally
value fixed income securities assuming orderly transactions of institutional round lot size, but a Fund may hold or transact in the same
securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Prices received from pricing
services are fair value prices. In addition, if the price provided by the pricing service and independent quoted prices are unreliable,
the Adviser will fair value the security using the valuation policy approved by the Board and related procedures.
Short-term
Securities. Invesco Government Money Market Fund, Invesco Premier
Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio value all their securities at amortized
cost. Invesco Limited Term Municipal Income Fund values variable rate securities that have an unconditional demand or put feature exercisable
within seven days or less at par, which reflects the market value of such securities.
Futures
and Options. Futures contracts are valued at the final settlement
price set by the exchange on which they are principally traded. U.S.
exchange-traded options are valued at the mean between the last
bid and asked prices from the exchange on which they principally trade. Non-U.S. exchange-traded options are valued at the final settlement
price set by
the exchange on which they trade. Options not listed on an exchange and swaps generally are valued using pricing provided from independent
pricing services.
Swap
Agreements. Swap Agreements are fair valued using an evaluated
quote provided by an independent pricing service. Evaluated quotes provided by the pricing service are based on a model that may include
end of day net present values, spreads, ratings, industry and company performance.
Open-end
Funds. If a Fund invests in other open-end funds, other than open-end
funds that are exchange traded, the investing Fund will calculate its net asset value using the net asset value of the underlying fund
in which it invests, and the prospectuses for such open-end funds explain the circumstances under which they will use fair value pricing
and the effects of using fair value pricing.
Each
Fund, except for Invesco Government Money Market Fund, Invesco Premier
Portfolio and Invesco Premier U.S. Government Money Portfolio, generally determines the net asset value of its shares on each day the
NYSE is open for trading (a business day) as of approximately 4:00 p.m. Eastern Time (the customary close of regular trading) or earlier
in the case of a scheduled early close. In the event of an unscheduled early close of the NYSE, each Fund, except for Invesco Government
Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio, generally still will determine the net
asset value of its shares as of 4:00 p.m. Eastern Time on that business day. Portfolio securities traded on the NYSE would be valued at
their closing prices unless the Adviser determines
that a “fair value” adjustment is appropriate due to subsequent events occurring after an early close consistent with the
valuation policy approved
by the Board and related procedures. Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government
Money Portfolio will generally determine the net asset value of their shares at 5:30 p.m. Eastern Time on each business day. A business
day for Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio is any day
that (1) both the Federal Reserve Bank of New York and a Fund’s custodian are open for business and (2) the primary trading markets
for the Fund’s portfolio instruments are open and the Fund’s management believes there is an adequate market to meet purchase
and redemption requests. Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money
Portfolio are authorized not to open for trading on a day that is otherwise a business day if the Securities Industry and Financial Markets
Association (SIFMA) recommends that government securities dealers not open for trading; any such day will not be considered a business
day. Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio, Invesco
U.S. Government Money Portfolio also may close early on a business day if SIFMA recommends that government securities dealers close early.
If
A-19 The
Invesco Funds
Invesco
Government Money Market Fund, Invesco Premier Portfolio or Invesco Premier U.S. Government Money Portfolio uses its discretion to
close early on a business day, the Fund will calculate its net asset value as of the time of such closing Invesco Premier Portfolio and
Invesco U.S. Government Money Portfolio are authorized to not open for trading on a day that is otherwise a business day if the NYSE recommends
that government securities dealers not open for trading; any such day will not be considered a business day. Invesco Premier Portfolio
also may close early on a business day if the NYSE recommends that government securities dealers close early.
For
financial reporting purposes and shareholder transactions on the last
day of the fiscal quarter, transactions are normally accounted for on a trade date basis. For purposes of executing shareholder transactions
in the normal course of business (other than shareholder transactions at a fiscal period-end), each Fund’s portfolio securities
transactions are recorded no later than the first business day following the trade date.
The
Invesco Advantage International Fund, Invesco Balanced-Risk Allocation
Fund, Invesco Balanced-Risk Commodity Strategy Fund, Invesco Fundamental Alternatives Fund, Invesco Global Allocation Fund, Invesco Global
Strategic Income Fund, Invesco Gold & Special Minerals Fund, Invesco High Yield Bond Factor Fund, Invesco International Bond Fund
and Invesco Macro Allocation Strategy Fund may each invest up to 25% of their total assets in shares of their respective subsidiaries
(the Subsidiaries). The Subsidiaries offer to redeem all or a portion of their shares at the current net asset value per share every regular
business day. The value of shares of the Subsidiaries will fluctuate with the value of the respective Subsidiary’s portfolio investments.
The Subsidiaries price their portfolio investments pursuant to the same pricing and valuation methodologies and procedures used by the
Funds, which require, among other things, that each of the Subsidiaries’ portfolio investments be marked-to-market (that is, the
value on each of the Subsidiaries’ books changes) each business day to reflect changes in the market value of the investment.
Each
Fund’s current net asset value per share is made available on the Funds’
website at www.invesco.com/us.
Fair
Value Pricing
Securities
owned by a Fund (except Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio
and Invesco U.S. Government Money Portfolio) are to be valued at current market value if market quotations are readily available. All
other securities and assets of a Fund for which market quotations are not readily available are to be valued at fair value determined
in good faith consistent with the valuation policy approved by the Board and related procedures. An effect of fair value pricing may be
to reduce the ability of frequent traders to take advantage of arbitrage opportunities resulting from potentially “stale”
prices of portfolio holdings. However, it cannot eliminate the possibility of frequent trading.
The
price a Fund could receive upon the sale of any investment may differ
from the Adviser's valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair
valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions
(i.e., publicly traded company multiples, growth rate, time to exit), to determine a methodology that will result in a valuation that
the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value
from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and
the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the
investment.
Timing
of Orders
Each
Fund prices purchase, exchange and redemption orders at the net asset value next calculated by the Fund after the Fund’s transfer
agent, authorized agent or designee receives an order in good order for the Fund. Purchase, exchange and redemption orders must be received
prior to the close of business on a business day, as defined by the applicable Fund, to receive that day’s net asset value. Any
applicable sales charges are applied at the time an order is processed.
Currently,
certain financial intermediaries may serve as agents for the Funds
and accept orders on their behalf. Where a financial intermediary serves as agent, the order is priced at the Fund’s net asset value
next calculated after it is accepted by the financial intermediary. In such cases, if requested by a Fund, the financial intermediary
is responsible for providing information with regard to the time that such order for purchase, redemption or exchange was received. Orders
submitted through a financial intermediary that has not received authorization to accept orders on a Fund’s behalf are priced at
the Fund’s net asset value next calculated by the Fund after it receives the order from the financial intermediary and accepts it,
which may not occur on the day submitted to the financial intermediary.
Additional
Information Regarding Deferred Tax Liability (only applicable to the Invesco Steelpath Funds)
In
calculating the Fund’s daily NAV, the Fund will, among other things, account for its deferred tax liability and/or asset balances.
As a result, any deferred tax liability and/or asset is reflected in the Fund’s daily NAV.
The
Fund will accrue a deferred income tax liability balance, at the U.S. federal
corporate income tax rate plus an estimated state and local income tax rate for its future tax liability associated with MLP distributions
considered to be a return of capital, as well as for its future tax liability associated with the capital appreciation of its investments.
The Fund’s current and deferred tax liability, if any, will depend upon the Fund’s net investment gains and losses and realized
and unrealized gains and losses on investments and therefore may vary greatly from year to year depending on the nature of the Fund’s
investments, the performance of those investments and general market conditions. Any deferred tax liability balance will reduce the Fund’s
NAV. Upon the Fund’s sale of an MLP security, the Fund may be liable for previously deferred taxes.
The
Fund will accrue, in accordance with generally accepted accounting principles,
a deferred tax asset balance, which reflects an estimate of the Fund’s future tax benefit associated with net operating losses and
unrealized losses. Any deferred tax asset balance will increase the Fund’s NAV. To the extent the Fund has a deferred tax asset
balance, the Fund will assess, in accordance with generally accepted accounting principles, whether a valuation allowance, which would
offset the value of some or all of the Fund’s deferred tax asset balance, is required. Pursuant to Financial Accounting Standards
Board Accounting Standards Codification 740 (FASB ASC 740), the Fund will assess a valuation allowance to reduce some or all of the deferred
tax asset balance if, based on the weight of all available evidence, both negative and positive, it is more likely than not that some
or all of the deferred tax asset will not be realized. The Fund will use judgment in considering the relative impact of negative and positive
evidence. The weight given to the potential effect of negative and positive evidence will be commensurate with the extent to which such
evidence can be objectively verified. The Fund’s assessment considers, among other matters, the nature, frequency and severity of
current and cumulative losses, the duration of statutory carry forward periods and the associated risk that operating loss and capital
loss carry forwards may be limited or expire unused, and unrealized gains and losses on investments. Consideration is also given to market
cycles, the severity and duration of historical deferred tax assets, the impact of redemptions, and the level of MLP distributions. The
Fund will assess whether a valuation allowance is required to offset some or all of any deferred tax asset in connection with the calculation
of the Fund’s NAV per share each day; however, to the extent the final valuation allowance differs from the estimates the Fund used
in calculating the Fund’s daily NAV, the application of such final valuation allowance could have a material impact on the Fund’s
NAV.
The
Fund’s deferred tax asset and/or liability balances are estimated using
estimates of effective tax rates expected to apply to taxable income in the years such balances are realized. The Fund will rely to some
extent on information provided by MLPs in determining the extent to which distributions received from MLPs constitute a return of capital,
which may not be provided to the Fund on a timely basis, to estimate the Fund’s deferred tax liability and/or asset balances for
purposes of financial statement reporting and determining its NAV. If such information is not
A-20 The
Invesco Funds
received
from such MLPs on a timely basis, the Fund will estimate the extent to which distributions received from MLPs constitute a return of capital
based on average historical tax characterization of distributions made by MLPs. The Fund’s estimates regarding its deferred tax
liability and/or asset balances are made in good faith; however, the daily estimate of the Fund’s deferred tax liability and/or
asset balances used to calculate the Fund’s NAV could vary dramatically from the Fund’s actual tax liability. Actual income
tax expense, if any, will be incurred over many years, depending on if and when investment gains and losses are realized, the then-current
basis of the Fund’s assets and other factors. As a result, the determination of the Fund’s actual tax liability may have a
material impact on the Fund’s NAV. The Fund’s daily NAV calculation will be based on then current estimates and assumptions
regarding the Fund’s deferred tax liability and/or asset balances and any applicable valuation allowance, based on all information
available to the Fund at such time. From time to time, the Fund may modify its estimates or assumptions regarding its deferred tax liability
and/or asset balances and any applicable valuation allowance as new information becomes available. Modifications of the Fund’s estimates
or assumptions regarding its deferred tax liability and/or asset balances and any applicable valuation allowance, changes in generally
accepted accounting principles or related guidance or interpretations thereof, limitations imposed on net operating losses (if any) and
changes in applicable tax law could result in increases or decreases in the Fund’s NAV per share, which could be material.
Taxes
(applicable to all Funds except for the Invesco SteelPath Funds and Invesco Master Loan Fund)
A
Fund intends to qualify each year as a regulated investment company (RIC) and, as such, is not subject to entity-level tax on the income
and gain it distributes to shareholders. If you are a taxable investor, dividends and distributions you receive from a Fund generally
are taxable to you whether you reinvest distributions in additional Fund shares or take them in cash. Every year, you will be sent information
showing the amount of dividends and distributions you received from a Fund during the prior calendar year. In addition, investors in taxable
accounts should be aware of the following basic tax points as supplemented below where relevant:
Fund Tax
Basics
◾
A
Fund earns income generally in the form of dividends or interest on its investments. This income, less expenses incurred in the operation
of a Fund, constitutes the Fund’s net investment income from which dividends may be paid to you. If you are a taxable investor,
distributions of net investment income generally are taxable to you as ordinary income.
◾
Distributions
of net short-term capital gains are taxable to you as ordinary income. A Fund with a high portfolio turnover rate (a measure of how frequently
assets within a Fund are bought and sold) is more likely to generate short-term capital gains than a Fund with a low portfolio turnover
rate.
◾
Distributions
of net long-term capital gains are taxable to you as long-term capital gains no matter how long you have owned your Fund shares.
◾
A
portion of income dividends paid by a Fund to you may be reported as qualified dividend income eligible for taxation by individual shareholders
at long-term capital gain rates, provided certain holding period requirements are met. These reduced rates generally are available for
dividends derived from a Fund’s investment in stocks of domestic corporations and qualified foreign corporations. In the case of
a Fund that invests primarily in debt securities, either none or only a nominal portion of the dividends paid by the Fund will be eligible
for taxation at these reduced rates.
◾
The
use of derivatives by a Fund may cause the Fund to realize higher amounts of ordinary income or short-term capital gain, distributions
from which are taxable to individual shareholders at ordinary income tax rates rather than at the more favorable tax rates for long-term
capital gain.
◾
Distributions
declared to shareholders with a record date in October, November or December—if paid to you by the end of January—are taxable
for federal income tax purposes as if received in December.
◾
Any
long-term or short-term capital gains realized on the sale or redemption of your Fund shares will be subject to federal income tax. For
tax
purposes an exchange of your shares for shares of another Fund is the same as a sale. An exchange occurs when the purchase of shares of
a Fund is made using the proceeds from a redemption of shares of another Fund and is effectuated on the same day as the redemption. Your
gain or loss is calculated by subtracting from the gross proceeds your cost basis. Gross proceeds and, for shares acquired on or after
January 1, 2012 and disposed of after that date, cost basis will be reported to you and the Internal Revenue Service (IRS). Cost
basis will be calculated using the Fund’s default method of average cost, unless you instruct the Fund to use a different calculation
method. As a service to you, the Fund will continue to provide to you (but not the IRS) cost basis information for shares acquired before
2012, when available, using the average cost method. Shareholders should carefully review the cost basis information provided by a Fund
and make any additional basis, holding period or other adjustments that are required when reporting these amounts on their federal income
tax returns. If you hold your Fund shares through a broker (or other nominee), please contact that broker (nominee) with respect to reporting
of cost basis and available elections for your account. For more information about the cost basis methods offered by Invesco, please refer
to the Tax Center located under the Account Access & Forms menu of our website at www.Invesco.com/us.
◾
The
conversion of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes
and no gain or loss will be reported on the transaction. This is true whether the conversion occurs automatically pursuant to the terms
of the class or is initiated by the shareholder.
◾
At
the time you purchase your Fund shares, the Fund’s net asset value may reflect undistributed income or undistributed capital gains.
A subsequent distribution to you of such amounts, although constituting a return of your investment, would be taxable. Buying shares in
a Fund just before it declares an income dividend or capital gains distribution is sometimes known as “buying a dividend.”
In addition, a Fund’s net asset value may, at any time, reflect net unrealized appreciation, which may result in future taxable
distributions to you.
◾
By
law, if you do not provide a Fund with your proper taxpayer identification number and certain required certifications, you may be subject
to backup withholding on any distributions of income, capital gains, or proceeds from the sale of your shares. A Fund also must withhold
if the IRS instructs it to do so. When withholding is required, the amount will be 24% of any distributions or proceeds paid.
◾
An
additional 3.8% Medicare tax is imposed on certain net investment income (including ordinary dividends and capital gain distributions
received from a Fund and net gains from redemptions or other taxable dispositions of Fund shares) of U.S. individuals, estates and trusts
to the extent that such person’s “modified adjusted gross income” (in the case of an individual) or “adjusted
gross income” (in the case of an estate or trust) exceeds a threshold amount. This Medicare tax, if applicable, is reported by you
on, and paid with, your federal income tax return.
◾
You
will not be required to include the portion of dividends paid by a Fund derived from interest on U.S. government obligations in your
gross income for purposes of personal and, in some cases, corporate income taxes in many state and local tax jurisdictions. The percentage
of dividends that constitutes dividends derived from interest on federal obligations will be determined annually. This percentage may
differ from the actual percentage of interest received by the Fund on federal obligations for the particular days on which you hold shares.
◾
Fund
distributions and gains from sale or exchange of your Fund shares generally are subject to state and local income taxes.
◾
If
a Fund qualifies to pass through to you the tax benefits from foreign taxes it pays on its investments, and elects to do so, then any
foreign taxes it pays on these investments may be passed through to you. You will then be required to include your pro-rata share of these
taxes in gross income, even though not actually received by you, and will be entitled either to deduct your share of these taxes in computing
your taxable income, or to claim a foreign tax credit for these taxes against your U.S. federal income tax.
A-21 The
Invesco Funds
◾
Foreign
investors should be aware that U.S. withholding, special certification requirements to avoid U.S. backup withholding and claim
any treaty benefits, and estate taxes may apply to an investment in a Fund.
◾
Under
the Foreign Account Tax Compliance Act (FATCA), a Fund will be required to withhold a 30% tax on income dividends made by the Fund to
certain foreign entities, referred to as foreign financial institutions or non-financial foreign entities, that fail to comply (or be
deemed compliant) with extensive reporting and withholding requirements designed to inform the U.S. Department of the Treasury of U.S.-owned
foreign investment accounts. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide otherwise (which
is not expected). A Fund may disclose the information that it receives from its shareholders to the IRS, non-U.S. taxing authorities or
other parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that is a shareholder
of a Fund fails to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.
◾
If
a Fund invests in an underlying fund taxed as a RIC, please see any relevant section below for more information regarding the Fund’s
investment in such underlying fund.
The
above discussion concerning the taxability of Fund dividends and distributions and of redemptions and exchanges of Fund shares is inapplicable
to investors holding shares through a tax-advantaged arrangement, such as Retirement and Benefit Plans or 529 college savings plans. Such
investors should refer to the applicable account documents/program description for that arrangement for more information regarding the
tax consequences of holding and redeeming Fund shares.
Funds
Investing in Municipal Securities
◾
You
will not be required to include the “exempt-interest” portion of dividends paid by the Fund in either your gross income for
federal income tax purposes or your net investment income subject to the additional 3.8% Medicare tax. You will be required to report
the receipt of exempt-interest dividends and other tax-exempt interest on your federal income tax returns. The percentage of dividends
that constitutes exempt-interest dividends will be determined annually. This percentage may differ from the actual percentage of exempt
interest received by the Fund for the particular days in which you hold shares.
◾
A
Fund may invest in municipal securities the interest on which constitutes an item of tax preference and could give rise to a federal alternative
minimum tax liability for noncorporate shareholders, unless such municipal securities were issued in 2009 or 2010.
◾
Exempt-interest
dividends from interest earned on municipal securities of a state, or its political subdivisions, generally are exempt from that state’s
personal income tax. Most states, however, do not grant tax-free treatment to interest from municipal securities of other states.
◾
A
Fund may invest a portion of its assets in securities that pay income that is not tax-exempt. To the extent that dividends paid by a Fund
are derived from taxable investments or realized capital gains, they will be taxable as ordinary income or long-term capital gains.
◾
A
Fund may distribute to you any market discount and net short-term capital gains from the sale of its portfolio securities. If you are
a taxable investor, Fund distributions from this income are taxable to you as ordinary income, and generally will neither qualify for
the dividends-received deduction in the case of corporate shareholders nor as qualified dividend income subject to reduced rates of taxation
in the case of noncorporate shareholders.
◾
Exempt-interest
dividends from a Fund are taken into account when determining the taxable portion of your social security or railroad retirement benefits,
may be subject to state and local income taxes, may affect the deductibility of interest on certain indebtedness, and may have other collateral
federal income tax consequences for you.
◾
There
are risks that: (a) a security issued as tax-exempt may be reclassified by the IRS or a state tax authority as taxable and/or (b) future
legislative,
administrative or court actions could adversely impact the qualification of income from a tax-exempt security as tax-free. Such reclassifications
or actions could cause interest from a security to become taxable, possibly retroactively, subjecting you to increased tax liability.
In addition, such reclassifications or actions could cause the value of a security, and therefore, the value of the Fund’s shares,
to decline.
Money
Market Funds
◾
A
Fund does not anticipate realizing any long-term capital gains.
◾
If
a Fund expects to maintain a stable net asset value of $1.00 per share, investors should not have any gain or loss on sale or exchange
of Fund shares (unless the investor incurs a liquidity fee on such sale or exchange). See “Liquidity Fees and Redemption Gates.”
◾
There
is some degree of uncertainty with respect to the tax treatment of liquidity fees received by a Fund, and such tax treatment may be the
subject of future IRS guidance. If a Fund receives liquidity fees, it will consider the appropriate tax treatment of such fees to the
Fund at such time.
◾
Unless
you choose to adopt a simplified “NAV method” of accounting (described below), any capital gain or loss on the sale or exchange
of Fund shares (as noted above) generally will be treated either as short-term if you held your Fund shares for one year or less, or long-term
if you held your Fund shares longer. If you elect to adopt the NAV method of accounting, rather than computing gain or loss on every taxable
disposition of Fund shares as described above, you would determine your gain or loss based on the change in the aggregate value of your
Fund shares during a computation period (such as your taxable year), reduced by your net investment (purchases minus sales) in those shares
during that period. Under the NAV method, any resulting net capital gain or loss would be treated as short-term capital gain or loss.
Funds
Investing in Real Estate Securities
◾
Because
of “noncash” expenses such as property depreciation, the cash flow of a REIT that owns properties will exceed its taxable
income. The REIT, and in turn a Fund, may distribute this excess cash to shareholders. Such a distribution is classified as a return of
capital. Return of capital distributions generally are not taxable to you. Your cost basis in your Fund shares will be decreased by the
amount of any return of capital. Any return of capital distributions in excess of your cost basis will be treated as capital gains.
◾
Dividends
paid to shareholders from the Funds’ investments in U.S. REITs generally will not qualify for taxation at long-term capital gain
rates applicable to qualified dividend income.
◾
The
Fund may derive “excess inclusion income” from certain equity interests in mortgage pooling vehicles either directly or through
an investment in a U.S. REIT. Please see the SAI for a discussion of the risks and special tax consequences to shareholders in the event
the Fund realizes excess inclusion income in excess of certain threshold amounts.
◾
Under
the Tax Cuts and Jobs Act, “qualified REIT dividends” (i.e., ordinary REIT dividends other than capital gain dividends and
portions of REIT dividends designated as qualified dividend income) are treated as eligible for a 20% deduction by noncorporate taxpayers.
The Fund may choose to report the special character of “qualified REIT dividends” to a shareholder, provided both the Fund
and a shareholder meet certain holding period requirements with respect to their shares.
◾
The
Fund’s foreign shareholders should see the SAI for a discussion of the risks and special tax consequences to them from a sale of
a U.S. real property interest by a REIT in which the Fund invests.
Funds
Investing in Partnerships
◾
Taxes,
penalties, and interest associated with an audit of a partnership
are generally required to be assessed and collected at the partnership level. Therefore, an adverse federal income tax audit of a partnership
that a Fund invests in (including MLPs taxed as partnerships) could result in the Fund being required to pay federal income tax. A Fund
may have little input in any audit asserted against a partnership and may be contractually or legally obligated to make payments in regard
to deficiencies asserted without the ability to put forward an independent defense. Accordingly,
A-22 The
Invesco Funds
even
if a partnership in which the Fund invests were to remain classified as a partnership (instead of as a corporation), it could be required
to pay additional taxes, interest and penalties as a result of an audit adjustment, and the Fund, as a direct or indirect partner of such
partnership, could be required to bear the economic burden of those taxes, interest and penalties, which would reduce the value of Fund
shares.
◾
Under
the Tax Cuts and Jobs Act “qualified publicly traded partnership income” is treated as eligible for a 20% deduction by noncorporate
taxpayers. The legislation does not contain a provision permitting a RIC, such as a Fund, to pass the special character of this income
through to its shareholders. It is uncertain whether a future technical corrections bill or regulations issued by the IRS will address
this issue to enable a Fund to pass through the special character of “qualified publicly traded partnership income” to its
shareholders.
◾
Some
amounts received by a Fund from the MLPs in which it invests likely will be treated as returns of capital to such Fund because of accelerated
deductions available to the MLPs. The receipt of returns of capital from the MLPs in which a Fund invests could cause some or all of the
Fund’s distributions to be classified as a return of capital. Return of capital distributions generally are not taxable to you.
Your cost basis in your Fund shares will be decreased by the amount of any return of capital. Any return of capital distributions in excess
of your cost basis will be treated as capital gains.
Funds
Investing in Commodities
◾
The
Funds’ strategies of investing through their respective Subsidiary in derivatives and other financially linked instruments whose
performance is expected to correspond to the commodity markets may cause the Funds to recognize more ordinary income and short-term capital
gains taxable as ordinary income than would be the case if the Funds invested directly in commodities.
◾
The
Funds must meet certain requirements under the Code for favorable tax treatment as a RIC, including asset diversification and income requirements.
The IRS has issued a revenue ruling which holds that income derived from commodity-linked swaps is not qualifying income for purposes
of the Income Requirement. In a subsequent revenue ruling, as well as in a number of follow-on private letter rulings (upon which only
the fund that received the private letter ruling may rely), the IRS provides that income from certain alternative investments which create
commodity exposure, such as certain commodity-linked or structured notes or a corporate subsidiary that invests in commodities, may be
considered qualifying income under the Code. However, the portion of such rulings relating to the treatment of a corporation as a regulated
investment company that require a determination of whether a financial instrument or position is a security under section 2(a)(36) of
the 1940 Act was revoked because of changes in the IRS’s position.
(A financial instrument or position that constitutes a security
under section 2(a)(36) of the 1940 Act generates qualifying income for a corporation taxed as a regulated investment company.) The Funds
intend to treat the income each derives from commodity-linked notes as qualifying income based on an opinion from counsel confirming that
income from such investments should be qualifying income because such commodity-linked notes constitute securities under section 2(a)(36)
of the 1940 Act. Each Subsidiary will be classified for federal income tax purposes as a controlled foreign corporation (CFC) with respect
to the Fund. As such, the Fund will be required to include in its gross income each year amounts earned by the Subsidiary during that
year (“Subpart F” income), whether or not such earnings are distributed by the Subsidiary to the Fund (deemed inclusions).
Treasury Regulations also permit the Fund to treat such deemed inclusions of “Subpart F” income from the Subsidiary as qualifying
income to the Fund, even if the Subsidiary does not make a distribution of such income. Consequently, the Fund and the Subsidiary reserve
the right to rely on deemed inclusions being treated as qualifying income to the Fund consistent with recently released Treasury Regulations.
If, contrary to the opinion of counsel or other guidance issued by the IRS, the IRS were to determine that income from direct investment
in commodity-linked notes is non-qualifying, a Fund might fail to satisfy
the
income requirement. In lieu of disqualification, the Funds are permitted to pay a tax for certain failures to satisfy the asset diversification
or income requirements, which, in general, are limited to those due to reasonable cause and not willful neglect. The Funds intend to limit
their investments in their respective Subsidiary to no more than 25% of the value of each Fund’s total assets in order to satisfy
the asset diversification requirement.
Funds
Investing in Foreign Currencies
◾
The
Funds may realize gains from the sale or other disposition of foreign currencies (including but not limited to gains from options, futures
or forward contracts) derived from investing in securities or foreign currencies. The U.S. Treasury Department is authorized to issue
regulations on whether the realization of such foreign currency gains is qualified income for the Funds. If such regulations are issued,
each Fund may not qualify as a RIC and/or the Fund may change its investment policy. As of the date of this prospectus, no regulations
have been issued pursuant to this authorization. It is possible, however, that such regulations may be issued in the future. Additionally,
the IRS has not issued any guidance on how to apply the asset diversification test to such foreign currency positions. Thus, the IRS’
determination as to how to treat such foreign currency positions for purposes of satisfying the asset diversification test might differ
from that of each Fund resulting in the Fund’s failure to qualify as a RIC. In lieu of disqualification, each Fund is permitted
to pay a tax for certain failures to satisfy the asset diversification or income requirements, which, in general, are limited to those
due to reasonable cause and not willful neglect.
◾
The
Funds’ transactions in foreign currencies may give rise to ordinary income or loss to the extent such income or loss results from
fluctuations in the value of the foreign currency concerned. This treatment could increase or decrease the Funds' ordinary income distributions
to you, and may cause some or all of the Funds' previously distributed income to be classified as a return of capital. Return of capital
distributions generally are not taxable to you. Your cost basis in your Fund shares will be decreased by the amount of any return of capital.
Any return of capital distributions in excess of your cost basis will be treated as capital gains.
This
discussion of “Taxes” is for general information only and not
tax advice. All investors should consult their own tax advisers as to the federal, state, local and foreign tax provisions applicable
to them.
Taxes
(applicable to the Invesco SteelPath Funds
only)
Although
the Code generally provides that a RIC does not pay an entity-level income tax, provided that it distributes all or substantially all
of its income, the Fund is not and does not anticipate becoming eligible to elect to be treated as a RIC because most or substantially
all of the Fund’s investments will consist of investments in MLP securities. The RIC tax rules therefore have no application to
the Fund or to its shareholders. As a result, the Fund is treated as a regular corporation, or “C” corporation, for U.S. federal
income tax purposes, and generally is subject to U.S. federal income tax on its taxable income at the corporate income tax rate. In addition,
as a regular corporation, the Fund will be subject to state and local taxes by reason of its tax status and its investments in MLPs. Therefore,
the Fund may have to pay federal, multiple state, and local taxes, which would reduce the Fund’s cash available to make distributions
to shareholders. An estimate for federal, state, and local tax liabilities will reduce the fund’s net asset value. The extent to
which the Fund is required to pay U.S. federal, state or local corporate income, franchise or other corporate taxes could materially reduce
the Fund’s cash available to make distributions to shareholders. In addition, investors in taxable accounts should be aware of the
following basic tax points as supplemented below where relevant:
Fund
Tax Basics
◾
The
Fund intends to invest a significant portion of its assets in MLPs, which are generally treated as partnerships for U.S. federal income
tax purposes. To the extent that the Fund invests in equity securities of an MLP, the Fund will be a partner in such MLP. Accordingly,
the Fund will be
A-23 The
Invesco Funds
required
to take into account the Fund’s allocable share of the income, gains, losses, deductions, and credits recognized by each such MLP,
regardless of whether the MLP distributes cash to the Fund. MLP distributions to partners, such as the Fund, are not taxable unless the
cash amount (or in certain cases, the fair market value of marketable securities) distributed exceeds the Fund’s basis in its MLP
interest. The Fund expects that the cash distributions it will receive with respect to its investments in equity securities of MLPs will
exceed the net taxable income allocated to the Fund from such MLPs because of tax deductions such as depreciation, amortization and depletion
that will be allocated to the Fund from the MLPs. No assurance, however, can be given in this regard. If this expectation is not realized,
the Fund will have a larger corporate income tax expense than expected, which will result in less cash available for distribution to shareholders.
◾
The
Fund will recognize gain or loss on the sale, exchange or other taxable disposition of its portfolio assets, including equity securities
of MLPs, equal to the difference between the amount realized by the Fund on the sale, exchange or other taxable disposition and the Fund’s
adjusted tax basis in such assets. Any such gain will be subject to U.S. federal income tax at the corporate income tax rate, regardless
of how long the Fund has held such assets since preferential capital gain rates do not apply to regular corporations such as the Fund.
The amount realized by the Fund in any case generally will be the amount paid by the purchaser of the assets plus, in the case of MLP
equity securities, the Fund’s allocable share, if any, of the MLP’s debt that will be allocated to the purchaser as a result
of the sale, exchange or other taxable disposition. The Fund’s tax basis in its equity securities in an MLP generally is equal to
the amount the Fund paid for the equity securities, (i) increased by the Fund’s allocable share of the MLP’s net taxable income
and certain MLP debt, if any, and (ii) decreased by the Fund’s allocable share of the MLP’s net losses and any distributions
received by the Fund from the MLP. Although any distribution by an MLP to the Fund in excess of the Fund’s allocable share of such
MLP’s net taxable income may create a temporary economic benefit to the Fund, net of a deferred tax liability, such distribution
will decrease the Fund’s tax basis in its MLP investment and will therefore increase the amount of gain (or decrease the amount
of loss) that will be recognized on the sale of an equity security in the MLP by the Fund. To the extent that the Fund has a net capital
loss in any year, the net capital loss can be carried back three taxable years and forward five taxable years to reduce the Fund’s
capital gains in such years. In the event a capital loss carryover cannot be utilized in the carryover periods, the Fund’s federal
income tax liability may be higher than expected, which will result in less cash available to distribute to shareholders.
◾
Distributions
by the Fund of cash or property in respect of the shares (other than certain distributions in redemption of shares) will be treated as
dividends for U.S. federal income tax purposes to the extent paid from the Fund’s current or accumulated earnings and profits (as
determined under U.S. federal income tax principles). Generally, the Fund’s earnings and profits are computed based upon the Fund’s
taxable income (loss), with certain specified adjustments. Any such dividend likely will be eligible for the dividends-received deduction
if received by an otherwise qualifying corporate U.S. shareholder that meets certain holding period and other requirements for the dividends-received
deduction. Dividends paid by the Fund to certain non-corporate U.S. shareholders (including individuals), generally are eligible for U.S.
federal income taxation at the rates generally applicable to long-term capital gains for individuals provided that the U.S. shareholder
receiving the dividend satisfies applicable holding period and other requirements. Otherwise, dividends paid by the Fund to non-corporate
U.S. Shareholders (including individuals) will be taxable at ordinary income rates.
◾
If
the amount of a Fund distribution exceeds the Fund’s current and accumulated earnings and profits, such excess will be treated first
as a tax-deferred return of capital to the extent of, and in reduction of, a shareholder’s tax basis in the shares, and thereafter
as capital gain to the extent the shareholder held the shares as a capital asset. Any such capital gain will be long-term capital gain
if such shareholder has held the applicable shares for more than one year. The portion of the distribution
received
by a shareholder from the Fund that is treated as a return of capital will decrease the shareholder’s tax basis in his or her Fund
shares (but not below zero), which will result in an increase in the amount of gain (or decrease in the amount of loss) that will be recognized
by the shareholder for tax purposes on the later sale of such Fund shares.
◾
The
Fund anticipates that the cash distributions it will receive with respect to its investments in equity securities of MLPs and which it
will distribute to its shareholders will exceed the Fund’s current and accumulated earnings and profits. Accordingly, the Fund expects
that only a part of its distributions to shareholders with respect to the shares will be treated as dividends for U.S. federal income
tax purposes. No assurance, however, can be given in this regard.
◾
Special
rules may apply to the calculation of the Fund’s earnings and profits. For example, the Fund’s earnings and profits will be
calculated using the straight-line depreciation method rather than the accelerated depreciation method. This difference in treatment may,
for example, result in the Fund’s earnings and profits being higher than the Fund’s taxable income or loss in a particular
year if the MLPs in which the Fund invests calculate their income using accelerated depreciation. Because of these special earnings profits
rules, the Fund may make distributions in a particular year out of earnings and profits (treated as dividends) in excess of the amount
of the Fund’s taxable income or loss for such year, which means that a larger percentage of the Fund ’s distributions could
be taxable to shareholders as ordinary income instead of tax-deferred return of capital or capital gain.
◾
Shareholders
that receive distributions in shares rather than in cash will be treated for U.S. federal income tax purposes as having (i) received a
cash distribution equal to the fair market value of the shares received and (ii) reinvested such amount in shares.
◾
A
redemption of shares will be treated as a sale or exchange of such shares, provided the redemption is not essentially equivalent to a
dividend, is a substantially disproportionate redemption, is a complete redemption of a shareholder’s entire interest in the Fund,
or is in partial liquidation of such Fund. Redemptions that do not qualify for sale or exchange treatment will be treated as distributions
as described above. Upon a redemption treated as a sale or exchange under these rules, a shareholder generally will recognize capital
gain or loss equal to the difference between the adjusted tax basis of his or her shares and the amount received when they are sold.
◾
If
the Fund is required to sell portfolio securities to meet redemption requests, the Fund may recognize income and gains for U.S. federal,
state and local income and other tax purposes, which may result in the imposition of corporate income or other taxes on the Fund and may
increase the Fund’s current and accumulated earnings and profits, which will result in a greater portion of distributions to Fund
shareholders being treated as dividends. Any long-term or short-term capital gains realized on sale or redemption of your Fund shares
will be subject to federal income tax. For tax purposes an exchange of your shares for shares of another Fund is the same as a sale. An
exchange occurs when the purchase of shares of a Fund is made using the proceeds from a redemption of shares of another Fund and is effectuated
on the same day as the redemption. Your gain or loss is calculated by subtracting from the gross proceeds your cost basis. Gross proceeds
and, for shares acquired on or after January 1, 2012 and disposed of after that date, cost basis will be reported to you and the IRS.
Cost basis will be calculated using the Fund’s default method of first-in, first-out (FIFO), unless you instruct the Fund to use
a different calculation method. Shareholders should carefully review the cost basis information provided by a Fund and make any additional
basis, holding period or other adjustments that are required when reporting these amounts on their federal income tax returns. If you
hold your Fund shares through a broker (or other nominee), please contact that broker (nominee) with respect to reporting of cost basis
and available elections for your account. For more information about the cost basis methods offered by Invesco, please refer to the Tax
Center located under the Account Access & Forms menu of our website at www.invesco.com/us.
A-24 The
Invesco Funds
◾
The
conversion of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes
and no gain or loss will be reported on the transaction. This is true whether the conversion occurs automatically pursuant to the terms
of the class or is initiated by the shareholder.
◾
At
the time you purchase your Fund shares, the Fund’s net asset value may reflect undistributed income. A subsequent distribution to
you of such amounts, although constituting a return of your investment, would be taxable. Buying shares in a Fund just before it declares
an income dividend is sometimes known as “buying a dividend.” In addition, a Fund’s net asset value may, at any time,
reflect net unrealized appreciation, which may result in future taxable distributions to you.
◾
By
law, if you do not provide a Fund with your proper taxpayer identification number and certain required certifications, you may be subject
to backup withholding on any distributions of income, capital gains, or proceeds from the sale of your shares. A Fund also must withhold
if the IRS instructs it to do so. When withholding is required, the amount will be 24% of any distributions or proceeds paid.
◾
A
3.8% Medicare tax is imposed on certain net investment income (including ordinary dividends received from a Fund and net gains from redemptions
or other taxable dispositions of Fund shares) of U.S. individuals, estates and trusts to the extent that such person’s “modified
adjusted gross income” (in the case of an individual) or “adjusted gross income” (in the case of an estate or trust)
exceeds a threshold amount. This Medicare tax, if applicable, is reported by you on, and paid with, your federal income tax return.
◾
Fund
distributions and gains from sale or exchange of your Fund shares generally are subject to state and local income taxes.
◾
Foreign
investors should be aware that U.S. withholding, special certification requirements to avoid U.S. backup withholding and claim any treaty
benefits, and estate taxes may apply to an investment in a Fund.
◾
Under
the Foreign Account Tax Compliance Act (FATCA), a Fund will be required to withhold a 30% tax on income dividends made by the Fund to
certain foreign entities, referred to as foreign financial institutions or non-financial foreign entities, that fail to comply (or be
deemed compliant) with extensive reporting and withholding requirements designed to inform the U.S. Department of the Treasury of U.S.-owned
foreign investment accounts. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide otherwise (which
is not expected). A Fund may disclose the information that it receives from its shareholders to the IRS, non-U.S. taxing authorities or
other parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that is a shareholder
of a Fund fails to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.
◾
Taxes,
penalties, and interest associated with an audit of a partnership are generally required to be assessed and collected at the partnership
level. Therefore, an adverse federal income tax audit of an MLP taxed as a partnership that the Fund invests in could result in the Fund
being required to pay federal income tax. The Fund may have little input in any audit asserted against an MLP and may be contractually
or legally obligated to make payments in regard to deficiencies asserted without the ability to put forward an independent defense. Accordingly,
even if an MLP in which the Fund invests were to remain classified as a partnership, it could be required to pay additional taxes, interest
and penalties as a result of an audit adjustment, and the Fund, as a direct or indirect partner of such MLP, could be required to bear
the economic burden of those taxes, interest and penalties, which would reduce the value of Fund shares.
◾
Under
the Tax Cuts and Jobs Act certain “qualified publicly traded partnership income” (e.g., certain income from certain of the
MLPs in which the Fund invests) is treated as eligible for a 20% deduction by noncorporate taxpayers. The Tax Cuts and Jobs Act does not
contain a provision permitting an entity, such as the Fund, to benefit from this
deduction
(since the Fund is taxed as a “C” corporation) or pass the special character of this income through to its shareholders. Qualified
publicly traded partnership income allocated to a noncorporate investor investing directly in an MLP might, however, be eligible for the
deduction.
The
above discussion concerning the taxability of Fund dividends and distributions
and of redemptions and exchanges of Fund shares is inapplicable to investors holding shares through a tax-advantaged arrangement, such
as Retirement and Benefit Plans or 529 college savings plans. Such investors should refer to the applicable account documents/program
description for that arrangement for more information regarding the tax consequences of holding and redeeming Fund shares.
This
discussion of “Taxes” is for general information only and not
tax advice. All investors should consult their own tax advisers as to the federal, state, local and foreign tax provisions applicable
to them.
Federal
Income Taxes (applicable to Invesco Master Loan Fund only)
United
States Taxes
The
Fund is classified as a partnership and will not be a regulated investment company for US federal income tax purposes. As a partnership,
the Fund is not a taxable entity for federal income tax purposes and, subject to the application of the partnership audit rules described
below, incurs no federal income tax liability. Each Investor is required to take into account its proportionate share of items of income,
gain, loss and deduction of the partnership in computing its federal income tax liability regardless of whether or not cash or property
distributions are then made by the Fund. Following the close of the Fund’s taxable year end, Investors will receive a tax statement
entitled Schedule K-1 Partner’s Share of Income, Deductions, Credits, etc., which reports the tax status of their distributive share
of the Fund’s items for the previous year.
Taxation
of Distributions, Sales and Exchanges
In
general, distributions of money by the Fund to an Investor will represent a non-taxable return of capital up to the amount of an Investor’s
adjusted tax basis in its shares. An Investor will recognize gain to the extent that any money distributed by the Fund exceeds the Investor’s
adjusted tax basis in its shares. In the case of a non-taxable return of capital by the Fund to an Investor, other than in liquidation
of the Investor’s interest in the Fund, the tax basis of his shares will be reduced (but not below zero) and will result in an increase
in the amount of gain (or decrease in the amount of loss) that will be recognized by the Investor on the later sale of its shares. A distribution
in partial or complete redemption of your shares in the Fund is taxable as a sale or exchange only to the extent the amount of money received
exceeds the tax basis of your entire interest in the Fund. Any loss may be recognized only if you redeem your entire interest in the Fund
for money.
When
you sell shares of the Fund, you may have a capital gain or loss.
Derivatives
The
use of derivatives by the Fund may cause the Fund to realize higher amounts of ordinary income or short-term capital gain, allocations
of which are taxable to individual Investors at ordinary income tax rates rather than at the more favorable tax rates for long-term capital
gain. Changes in government regulation of derivative instruments could affect the character, timing and amount of the Fund’s taxable
income or gains, and may limit the Fund from using certain types of derivative instruments as part of its investment strategy.
Risk
of Audit of the Fund
Under
the partnership audit rules, which are generally applicable to tax years beginning after December 31, 2017, the Internal Revenue Service
(“IRS”) may collect any taxes resulting from audit adjustments to the Fund’s income tax returns (including any applicable
penalties and interest) directly from the Fund. In that case, current Investors would bear some or all of the
A-25 The
Invesco Funds
tax liability
resulting from such audit adjustment, even if they did not own interests in the Fund during the tax year under audit. The Fund may have
the ability to shift any such tax liability to the Investors in accordance with their interests in the Fund during the year under audit,
but there can be no assurance that the Fund will be able to do so under all circumstances. For taxable years not subject to the new audit
rules, items of Fund income, gain, loss, deduction and credit will be determined at the Fund level in a unified audit. NO REPRESENTATION
OR WARRANTY OF ANY KIND IS MADE WITH RESPECT TO THE TAXATION, DEDUCTIBILITY OR CAPITALIZATION OF ANY ITEM BY THE FUND OR INVESTOR. In
addition, the “partnership representative” (tax matters partner, for taxable years before the partnership audit rules become
effective) will have the sole authority to act on the Fund’s behalf for purposes of, among other things, federal income tax audits
and judicial review of administrative adjustments by the IRS, and any such actions will be binding on the Fund and all of the Investors.
Unrelated
Business Taxable Income
An
allocable share of a tax-exempt Investor’s income will be “unrelated business taxable income” (“UBTI”) to
the extent that the Fund borrows money to acquire property or invests in assets that produce UBTI.
Medicare
Tax
An
additional 3.8% Medicare tax is imposed on certain net investment income of US individuals, estates and trusts to the extent that such
person’s “modified adjusted gross income” (in the case of an individual) or “adjusted gross income” (in
the case of an estate or trust) exceeds a threshold amount. “Net investment income,” for these purposes, means investment
income (including (i) net gains from the taxable disposition of shares of a Fund to the extent the net gain would be taken into account
by the Investor if the Fund sold all of its property for fair market value immediately before the disposition of the shares of the Fund,
and (ii) an allocable share of a Fund’s interest, dividends and net gains) reduced by the deductions properly allocable to such
income. This Medicare tax, if applicable, is reported by Investors on, and paid with, the Investor’s federal income tax return.
State,
Local and Non-US Tax Matters
An
Investor’s distributive share of the Fund’s income, and gains from the sale or exchange of an Investor’s Fund shares,
generally are subject to state and local taxes in the jurisdiction in which the Investor resides or is otherwise subject to tax.
Prospective
investors should consider their individual state and local tax consequences
of an investment in the Fund.
Tax
Considerations for Non-US Investors
If,
as anticipated, the Fund is not deemed to be engaged in a US trade or business, the Fund generally will be required to withhold tax on
the distributive share of certain items of gross income from US sources allocated to non-US Investors at a 30% (or lower treaty) rate.
Certain categories of income, including portfolio interest, are not subject to US withholding tax. Capital gains (other than gain realized
on disposition of US real property interests) are not subject to US withholding tax unless the non-US Investor is a nonresident alien
individual present in the United States for a period or periods aggregating 183 days or more during the taxable year. If, on the other
hand, the Fund derives income which is effectively connected with a US trade or business carried on by the Fund, this 30% tax will not
apply to such effectively connected income of the Fund, and the Fund generally will be required to withhold tax from the amount of effectively
connected income allocable to non-US Investors at the highest rate of tax applicable to US residents, and non-US Investors generally would
be required to file US income tax returns and be subject to US income tax on a net basis. Gain or loss on a sale of shares will be treated
as effectively connected with a U.S. trade or business to the extent that a foreign corporation or foreign individual that owns the shares
(whether directly or indirectly through other partnerships) would have had effectively connected gain or loss had the partnership sold
its underlying assets and applicable US
withholding
tax will apply. Non-US Investors may be subject to US estate tax and are subject to special US tax certification requirements.
Other
Reporting and Withholding Requirements
Under
the Foreign Account Tax Compliance Act (“FATCA”), the Fund will be required to withhold at a 30% rate on certain US source
payments (such as interest and dividends) to certain Investors if the Investor fails to provide the Fund with the information which identifies
its direct and indirect US ownership. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide otherwise (which
is not expected). A Fund may disclose the information that it receives from an Investor to the IRS, non-US taxing authorities or other
parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that is an Investor fails
to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.
For
a more complete discussion of the federal income tax consequences
of investing in the Fund, see the Statement of Additional Information.
This
discussion of “Federal Income Taxes” is not intended or written
to be used as tax advice. Because everyone’s tax situation is unique, Investors should consult their tax professional about federal,
state, local and foreign tax consequences before making an investment in the Fund.
Payments
to Financial Intermediaries – All Share Classes except Class R6 shares
The
financial adviser or intermediary through which you purchase your shares may receive all or a portion of the sales charges and distribution
fees discussed above. In addition to those payments, Invesco Distributors and other Invesco Affiliates, may make additional cash payments
to financial intermediaries in connection with the promotion and sale of shares of the Funds. These additional cash payments may include
cash payments and other payments for certain marketing and support services. Invesco Affiliates make these payments from their own resources,
from Invesco Distributors’ retention of initial sales charges and from payments to Invesco Distributors made by the Funds under
their 12b-1 plans. In the context of this prospectus, “financial intermediaries” include any broker, dealer, bank (including
bank trust departments), registered investment adviser, financial planner, retirement plan administrator, insurance company and any other
financial intermediary having a selling, administration or similar agreement with Invesco Affiliates.
The
benefits Invesco Affiliates receive when they make these payments include,
among other things, placing the Funds on the financial intermediary’s fund sales system, and access (in some cases on a preferential
basis over other competitors) to individual members of the financial intermediary’s sales force or to the financial intermediary’s
management. These payments are sometimes referred to as “shelf space” payments because the payments compensate the financial
intermediary for including the Funds in its fund sales system (on its “sales shelf”). Invesco Affiliates compensate financial
intermediaries differently depending typically on the level and/or type of considerations provided by the financial intermediary. The
payments Invesco Affiliates make may be calculated based on sales of shares of the Funds (Sales-Based Payments), in which case the total
amount of such payments shall not exceed 0.25% (0.10% for Class R5 shares) of the public offering price of all shares sold by the financial
intermediary during the particular period. Payments may also be calculated based on the average daily net assets of the applicable Funds
attributable to that particular financial intermediary (Asset-Based Payments), in which case the total amount of such cash payments shall
not exceed 0.25% per annum of those assets during a defined period. Sales-Based Payments primarily create incentives to make new sales
of shares of the Funds and Asset-Based Payments primarily create incentives to retain previously sold shares of the Funds in investor
accounts. Invesco Affiliates
A-26 The
Invesco Funds
may pay a financial
intermediary either or both Sales-Based Payments and Asset-Based Payments.
Invesco
Affiliates are motivated to make these payments as they promote
the sale of Fund shares and the retention of those investments by clients of the financial intermediaries. To the extent financial intermediaries
sell more shares of the Funds or retain shares of the Funds in their clients’ accounts, Invesco Affiliates benefit from the incremental
management and other fees paid to Invesco Affiliates by the Funds with respect to those assets.
The
Funds’ transfer agent may make payments to certain financial intermediaries
for certain administrative services, including record keeping and sub-accounting of shareholder accounts pursuant to a sub-transfer agency,
omnibus account service or sub-accounting agreement. All fees payable by Invesco Affiliates under this category of services are charged
back to the Funds, subject to certain limitations approved by the Board.
You
can find further details in the Fund’s SAI about these payments and the
services provided by financial intermediaries. In certain cases these payments could be significant to the financial intermediaries. Your
financial adviser may charge you additional fees or commissions other than those disclosed in this prospectus. You can ask your financial
adviser about any payments it receives from Invesco Affiliates or the Funds, as well as about fees and/or commissions it charges.
Important
Notice Regarding Delivery of Security Holder Documents
To
reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address
(Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not
want the mailing of these documents to be combined with those for other members of your household, please contact the Funds’ transfer
agent at 800-959-4246 or contact your financial institution. The Funds’ transfer agent will begin sending you individual copies
for each account within thirty days after receiving your request.
A-27 The
Invesco Funds
Obtaining Additional Information
More information
may be obtained free of charge upon request. The SAI, a current version of which is on file with the SEC, contains more details about
the Fund and is incorporated by reference into this prospectus (is legally a part of this prospectus). Annual and semi-annual reports
to shareholders contain additional information about the Fund’s investments. The Fund’s annual report also discusses the market
conditions and investment strategies that significantly affected the Fund’s performance during its last fiscal year. The Fund also
files its complete schedule of portfolio holdings with the SEC for the 1st and 3rd quarters of each fiscal year as an exhibit to its reports
on Form N-PORT.
If
you have questions about an Invesco Fund or your account, or you wish to obtain a free copy of the Fund’s current SAI, annual or
semi-annual reports or Form N-PORT, please contact us.
|
By
Mail: |
Invesco
Investment Services, Inc.
P.O.
Box 219078
Kansas
City, MO 64121-9078 |
|
By
Telephone: |
(800)
959-4246 |
|
On
the Internet: |
You
can send us a request by e-mail or
download
prospectuses, SAIs, annual or
semi-annual
reports via our website:
www.invesco.com/us
|
Reports
and other information about the Fund are available on the EDGAR Database on the SEC's Internet site at http://www.sec.gov, and copies
of this information may be obtained, after paying a duplicating fee, by electronic request at the following e-mail address: publicinfo@sec.gov.
|
Invesco S&P
500 Index Fund
SEC 1940 Act file
number: 811-09913 |
|
invesco.com/us
|
MS-SPI-PRO-1
|
Prospectus
December
16,
2022
Class:
A (OOSAX ), C (OOSCX ),
R (OOSNX ), Y (OOSYX ),
R5 (SFRRX ), R6 (OOSIX )
Invesco Senior
Floating Rate 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.
Table of Contents
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A-1
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A-1
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A-2
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A-3
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A-3
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A-10
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A-11
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A-13
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A-15
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A-17
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A-17
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A-18
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A-21
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A-23
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A-25
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A-26
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A-27
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Back
Cover |
Invesco Senior
Floating Rate Fund
The
Fund’s investment objective is to seek income.
This
table describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund.
The
table and Examples below do not reflect any transaction fees
that may be charged by financial intermediaries or commissions that a shareholder may be required to pay directly to its financial intermediary
when buying or selling Class Y or Class R6 shares.
You
may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $100,000
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
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C
|
R
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Y
|
R5
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R6
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Maximum
Sales Charge (Load) Imposed on
Purchases
(as a percentage of offering price) |
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Maximum
Deferred Sales Charge (Load) (as a
percentage
of original purchase price or
redemption
proceeds, whichever is less) |
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Class:
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A
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C
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R
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Y
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R5
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R6
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Management
Fees |
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Distribution
and/or Service (12b-1) Fees |
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Other
Expenses |
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Interest
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Total
Other Expenses |
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Acquired
Fund Fees and Expenses |
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Total
Annual Fund Operating Expenses |
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1
The
Example assumes that you invest $10,000 in the Fund for the time periods
indicated and then redeem all of your shares at the end of those periods. This Example does not include commissions and/or other forms
of compensation that investors may pay on transactions in Class Y and Class R6 shares. The Example also assumes that your investment has
a 5% return each year and that the Fund’s operating expenses remain the same.
Although
your actual costs may be higher or lower, based on these assumptions,
your costs would be:
|
|
1
Year |
3
Years |
5
Years |
10
Years |
|
Class
A |
$
|
$
|
$
|
$
|
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| ||||
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Class
C |
$
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$
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$
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$
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Class
R |
$
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$
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$
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$
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Class
Y |
$
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$
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$
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$
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Class
R5 |
$
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$
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$
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$
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|
Class
R6 |
$
|
$
|
$
|
$
|
|
| ||||
|
|
1
Year |
3
Years |
5
Years |
10
Years |
|
Class
A |
$
|
$
|
$
|
$
|
|
| ||||
|
Class
C |
$
|
$
|
$
|
$
|
|
| ||||
|
Class
R |
$
|
$
|
$
|
$
|
|
| ||||
|
Class
Y |
$
|
$
|
$
|
$
|
|
| ||||
|
Class
R5 |
$
|
$
|
$
|
$
|
|
| ||||
|
Class
R6 |
$
|
$
|
$
|
$
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| ||||
The
Fund invests mainly in floating rate loans (sometimes referred to as “adjustable rate loans”) that hold (or in the judgment
of the investment adviser, hold) a senior position in the capital structure of U.S. and foreign corporations, partnerships or other business
entities that, under normal circumstances, allow them to have priority of claim ahead of (or at least as high as) other obligations of
a borrower in the event of liquidation. These investments are referred to as “Senior Loans.” Senior Loans may be collateralized
or uncollateralized. They typically pay interest at rates that float above, or are adjusted periodically based on, a benchmark that reflects
current interest rates.
Under
normal market conditions, the Fund will invest at least 80% of its net
assets (plus the amount of any borrowings for investment purposes) in Senior Loans, and in derivatives and other instruments that have
economic characteristics similar to such securities. The Fund may invest in Senior Loans directly as an original lender, or by assignment
from a lender, or it may invest indirectly through loan participation agreements. While most of these Senior Loans will be collateralized,
the Fund can also invest up to 10% of its net assets (plus the amount of borrowings for investment purposes) in uncollateralized Senior
Loans.
The
Fund can invest up to 20% of its total assets in cash (whether U.S. dollars
or a foreign currency) or cash equivalents, or in other loans, securities and other investments, including but not limited to: secured
or unsecured fixed-rate loans, fixed or floating rate notes or bonds, securities issued or guaranteed by the U.S. government or its agencies
or instrumentalities, investment-grade short-term debt obligations, equity securities (including common stocks, preferred stocks, rights,
warrants, and securities convertible into common stock) and derivatives. The Fund also may invest in Senior Loans made in connection with
highly leveraged transactions, including but not limited to, operating loans, leveraged buyout loans, and leveraged capitalization loans.
The Fund can invest 25% or more of its total assets in securities of the group of industries in the financial securities sector.
The
Fund can invest in investment-grade or below-investment-grade debt
instruments (sometimes referred to as “high yield” or “junk” securities). The Fund can invest up to 100% of its
assets in debt instruments rated below-investment-grade, and will normally invest a substantial portion of its assets in those securities.
“Investment-grade” debt instruments are rated in one of the four highest rating categories by nationally recognized statistical
rating organizations such as Moody’s or S&P Global Ratings (or, in the case of unrated securities, determined by the Adviser
to be comparable to securities rated investment-grade). The Fund may also invest in unrated instruments, in which case the Fund’s
Adviser may assign ratings to those instruments, after assessing their credit quality and other factors, in
1 Invesco Senior
Floating Rate Fund
investment-grade
or below-investment-grade categories similar to those of nationally recognized statistical rating organizations. The Fund may invest in
defaulted or distressed loans and loans to bankrupt companies. There can be no assurance, nor is it intended, that the Adviser’s
credit analysis is consistent or comparable with the credit analysis process used by a nationally recognized statistical rating organization.
The
Fund may invest in securities of U.S. and foreign issuers. The Fund can
invest in Senior Loans or other investments (such as subordinated debt and fixed-rate loans) issued by foreign entities.
The
Fund has no requirements as to the range of maturities of the debt instruments
it can buy or as to the market capitalization of the issuers of those instruments. The Fund can borrow up to one-third of the Fund’s
assets (including the amount borrowed) and use other techniques to manage its cash flow, to redeem shares, or to purchase assets, a technique
referred to as “leverage.” The Fund may also use certain types of derivative investments to try to enhance income or to try
to manage (hedge) investment risks, including, but not limited to, options, futures contracts, swaps, and “structured” notes.
The
Fund can engage in foreign currency transactions either on a spot basis
(i.e. for prompt delivery and settlement at the rate prevailing in the currency exchange market at the time) or through forward foreign
currency contracts to hedge against adverse movements in the foreign currencies in which portfolio securities are denominated. The Fund
can use currency futures and currency swaps to hedge its exposure to foreign currencies.
In
selecting investments for the Fund, the portfolio managers evaluate overall
investment opportunities and risks among the types of investments the Fund can hold. They analyze the credit standing and risks of borrowers
whose loans or debt securities they are considering for the Fund’s portfolio. They evaluate information about borrowers from their
own research or research supplied by rating organizations, agent banks or other sources and select only those loans that they believe
are likely to pay the interest and repay the principal when it becomes due. The portfolio managers consider many factors, including, among
others,
◾
the
borrower’s past and expected future financial performance
◾
the
experience and depth of the borrower’s management
◾
the
status of the borrower’s industry and its position in that industry
◾
the
collateral for the loan or other debt security
◾
the
borrower’s assets and cash flows
◾
the
credit quality of the debt obligations of the bank servicing the loan and other intermediaries imposed between the borrower and the Fund.
The credit research process utilized by the Fund to implement its investment strategy in pursuit of its investment objective considers
factors that may include, but are not limited to, an issuer’s operations, capital structure and environmental, social and governance
(“ESG”) considerations. Credit quality analysis for certain issuers therefore may consider whether any ESG factors pose a
material financial risk or opportunity to an issuer. The Adviser may determine that ESG considerations are not material to certain issuers
or types of investments held by the Fund. In addition, not all issuers or Fund investments may undergo a credit quality analysis that
considers ESG factors, and not all investments held by the Fund will rate strongly on ESG criteria.
There
can be no assurance that the portfolio managers’ analysis will identify
all of the factors that may impair the value of a Senior Loan or other investment.
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, natural or environmental disasters, widespread disease or other public health issues, war, military conflict, acts of terrorism
or adverse investor sentiment generally. 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.
Senior
Loans and Other Loans Risk. Risks associated with an investment
in Senior Loans include credit risk, interest rate risk, liquidity risk,
valuation risk and prepayment risk. These risks are typically
associated with debt securities but may be heightened in part because of the limited public information regarding Senior Loans. Senior
Loans generally are floating rate loans, which are subject to interest rate risk as the interest paid on the floating rate loans adjusts
periodically based on changes in widely accepted reference rates. Lack of an active trading market, restrictions on resale, irregular
trading activity, wide bid/ask spreads and extended trade settlement periods may impair the Fund’s ability to sell Senior Loans
within its desired time frame or at an acceptable price and its ability to accurately value existing and prospective investments. Extended
trade settlement periods may result in cash not being immediately available to the Fund. As a result, the Fund may have to sell other
investments or engage in borrowing transactions to raise cash to meet its obligations. The risk of holding Senior Loans is also directly
tied to the risk of insolvency or bankruptcy of the issuing banks. The value of Senior Loans can be affected by and sensitive to changes
in government regulation and to economic downturns in the United States and abroad. Senior loans are also subject to the risk that a court
could subordinate a senior loan or take other action detrimental to the holders of senior loans. Loans are subject to the risk that the
value of the collateral, if any, securing a loan may decline, be insufficient to meet the obligations of the borrower, or be difficult
to liquidate. Loan investments are often issued in connection with highly leveraged transactions which are subject to greater credit risks
than other investments including a greater possibility that the borrower may default or enter bankruptcy. Highly leveraged loans also
may be less liquid than other loans. These risks could cause the Fund to lose income or principal on a particular investment, which in
turn could affect the Fund’s returns.
Debt
Securities Risk. The prices of debt securities held by the Fund
will be affected by changes in interest rates, the creditworthiness of the issuer and other factors. An increase in prevailing interest
rates typically causes the value of existing debt securities to fall and often has a greater impact on longer-duration debt securities
and higher quality debt securities. Falling interest rates will cause the Fund to reinvest the proceeds of debt securities that have been
repaid by the issuer at lower interest rates. Falling interest rates may also reduce the Fund’s distributable income because interest
payments on floating rate debt instruments held by the Fund will decline. The Fund could lose money on investments in debt securities
if the issuer or borrower fails to meet its obligations to make interest payments and/or to repay principal in a timely manner. Changes
in an issuer’s financial strength, the market’s perception of such strength or in the credit rating of the issuer or the security
may affect the value of debt securities. The Adviser’s credit analysis may fail to anticipate such changes, which could result in
buying a debt security at an inopportune time or failing to sell a debt security in advance of a price decline or other credit event.
High
Yield Debt Securities (Junk Bond) Risk. Investments in high yield
debt securities (“junk bonds”) and other lower-rated securities will subject the Fund to substantial risk of loss. These securities
are considered to be speculative with respect to the issuer’s ability to pay interest and principal
2 Invesco Senior
Floating Rate Fund
when due,
are more susceptible to default or decline in market value and are less liquid than investment grade debt securities. Prices of high yield
debt securities tend to be very volatile.
LIBOR
Transition Risk. The Fund may have investments in financial instruments
that utilize the London Interbank Offered Rate (“LIBOR”) as the reference or benchmark rate for variable interest rate calculations.
LIBOR is intended to measure the rate generally at which banks can lend and borrow from one another in the relevant currency on an unsecured
basis. Regulators and financial industry working groups in several jurisdictions have worked over the past several years to identify alternative
reference rates (“ARRs”) to replace LIBOR and to assist with the transition to the new ARRs. In connection with the transition,
on March 5,
2021 the UK Financial Conduct Authority (FCA), the regulator that oversees LIBOR,
announced that the majority of LIBOR rates would cease to be published
or would no longer be representative on January 1, 2022. Consequently,
the publication of most LIBOR rates ceased at the end of 2021,
but a selection of widely used USD LIBOR rates continues to be published until June 2023 to allow for an orderly
transition away from these rates. Additionally,
key regulators have instructed banking institutions to cease
entering into new contracts that reference these USD LIBOR settings
after December 31,
2021,
subject to certain limited exceptions.
There
remains uncertainty and risks relating to the continuing LIBOR transition
and its effects on the Fund and the instruments in which the Fund invests. For example, there can be no assurance that the composition
or characteristics of any ARRs or financial instruments in which the Fund invests that utilize ARRs will be similar to or produce the
same value or economic equivalence as LIBOR or that these instruments will have the same volume or liquidity. Additionally, although regulators
have generally prohibited banking institutions from entering into new contracts that reference those USD LIBOR settings that continue
to exist, there remains uncertainty and risks relating to certain “legacy” USD LIBOR instruments that were issued or entered
into before December 31, 2021 and the process by which a replacement interest rate will be identified and implemented into these instruments
when USD LIBOR is ultimately discontinued. The effects of such uncertainty and risks in “legacy” USD LIBOR instruments held
by the Fund could result in losses to the Fund.
Changing
Fixed Income Market Conditions Risk. Increases
in the federal funds and equivalent foreign rates or other changes to monetary policy or regulatory actions may expose fixed income markets
to heightened volatility and reduced liquidity for certain fixed income investments, particularly those with longer maturities. It is
difficult to predict the impact of interest rate changes on various markets. In addition, decreases in fixed income dealer market-making
capacity may also potentially lead to heightened volatility and reduced liquidity in the fixed income markets. As a result, the value
of the Fund’s investments and share price may decline. Changes in central bank policies could also result in higher than normal
redemptions by shareholders, which could potentially increase the Fund’s portfolio turnover rate and transaction costs.
Defaulted
Securities Risk. Defaulted securities pose a greater risk that
principal will not be repaid than non-defaulted securities. Defaulted securities and any securities received in an exchange for such securities
may be subject to restrictions on resale.
Concentration
in Financial Securities Sector Risk. The Fund will not concentrate
its investments in issuers in any one industry, except that the Fund may invest without limit in instruments of the group of industries
in the financial securities sector. Financial securities industries may be more susceptible to particular economic and regulatory events
such as volatility in the financial markets and interest rates, changes in domestic and foreign monetary policy, and changes in industry
regulations.
Foreign
Securities Risk. The Fund's foreign investments may be adversely
affected by political and social instability, changes in economic or taxation policies, difficulty in enforcing obligations, decreased
liquidity or increased volatility. 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. There may be less public
information available about foreign companies than U.S. companies, making it difficult to evaluate those foreign companies. 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.
Investing
in Stocks Risk. The value of the Fund’s portfolio may be
affected by changes in the stock markets. Stock markets may experience significant short-term volatility and may fall or rise sharply
at times. Adverse events in any part of the equity or fixed-income markets may have unexpected negative effects on other market segments.
Different stock markets may behave differently from each other and U.S. stock markets may move in the opposite direction from one or more
foreign stock markets.
The
prices of individual stocks generally do not all move in the same direction
at the same time. However, individual stock prices tend to go up and down more dramatically than those of certain other types of investments,
such as bonds. A variety of factors can negatively affect the price of a particular company’s stock. These factors may include,
but are not limited to: poor earnings reports, a loss of customers, litigation against the company, general unfavorable performance of
the company’s sector or industry, or changes in government regulations affecting the company or its industry. To the extent that
securities of a particular type are emphasized (for example foreign stocks, stocks of small- or mid-cap companies, growth or value stocks,
or stocks of companies in a particular industry), fund share values may fluctuate more in response to events affecting the market for
those types of securities.
Preferred
Securities Risk. Preferred securities are subject to issuer-specific
and market risks applicable generally to equity securities. Preferred securities also may be subordinated to bonds or other debt instruments,
subjecting them to a greater risk of non-payment, may be less liquid than many other securities, such as common stocks, and generally
offer no voting rights with respect to the issuer.
Rights
and Warrants Risk. Warrants may be significantly less valuable
or worthless on their expiration date and may also be postponed or terminated early, resulting in a partial or total loss. Rights are
similar to warrants, but normally have a short duration and are distributed directly by the issuer to its shareholders. Rights and warrants
have no voting rights, receive no dividends and have no rights with respect to the assets of the issuer. Warrants and rights are highly
volatile and, therefore, more susceptible to sharp declines in value than the underlying security might be. The market for rights or warrants
may be very limited and it may be difficult to sell them promptly at an acceptable price.
Convertible
Securities Risk. The market values of convertible securities are
affected by market interest rates, the risk of actual issuer default on interest or principal payments and the value of the underlying
common stock into which the convertible security may be converted. Additionally, a convertible security is subject to the same types of
market and issuer risks that apply to the underlying common stock. In addition, certain convertible securities are subject to involuntary
conversions and may undergo principal write-downs upon the occurrence of certain triggering events, and, as a result, are subject to an
increased risk of loss. Convertible securities may be rated below investment grade, which are considered to have more speculative characteristics
and greater susceptibility to default or decline in market value than investment grade securities.
3 Invesco Senior
Floating Rate Fund
Warrants,
Equity Securities and Junior Debt Securities of the Borrower Risk.
Warrants, equity securities and junior debt securities have a subordinate claim on a Borrower’s assets as compared with Senior Loans.
As a result, the values of warrants, equity securities and junior debt securities generally are more dependent on the financial condition
of the Borrower and less dependent on fluctuations in interest rates than are the values of many debt securities. The values of warrants,
equity securities and junior debt securities may be more volatile than those of Senior Loans and thus may increase the volatility of the
Fund’s net asset value. Additionally, warrants may be significantly less valuable on their relevant expiration date resulting in
a loss of money or they may expire worthless resulting in a total loss of the investment. Warrants may also be postponed or terminated
early resulting in a partial or total loss of the investment. Warrants may also be illiquid.
U.S.
Government Obligations Risk. Obligations of U.S. Government agencies
and authorities receive varying levels of support and may not be backed by the full faith and credit of the U.S. Government, which could
affect the Fund’s ability to recover should they default. No assurance can be given that the U.S. Government will provide financial
support to its agencies and authorities if it is not obligated by law to do so.
Derivatives
Risk. The value of a derivative instrument depends largely on (and
is derived from) the value of an underlying security, currency, commodity, interest rate, index or other asset (each referred to as an
underlying asset). In addition to risks relating to the underlying assets, the use of derivatives may include other, possibly greater,
risks, including counterparty, leverage and liquidity risks. Counterparty risk is the risk that the counterparty to the derivative contract
will default on its obligation to pay the Fund the amount owed or otherwise perform under the derivative contract. Derivatives create
leverage risk because they do not require payment up front equal to the economic exposure created by holding a position in the derivative.
As a result, an adverse change in the value of the underlying asset could result in the Fund sustaining a loss that is substantially greater
than the amount invested in the derivative or the anticipated value of the underlying asset, which may make the Fund’s returns more
volatile and increase the risk of loss. Derivative instruments may also be less liquid than more traditional investments and the Fund
may be unable to sell or close out its derivative positions at a desirable time or price. This risk may be more acute under adverse market
conditions, during which the Fund may be most in need of liquidating its derivative positions. Derivatives may also be harder to value,
less tax efficient and subject to changing government regulation that could impact the Fund’s ability to use certain derivatives
or their cost. Derivatives strategies may not always be successful. For example, derivatives used for hedging or to gain or limit exposure
to a particular market segment may not provide the expected benefits, particularly during adverse market conditions.
Liquidity
Risk. The Fund may be unable to sell illiquid investments at the
time or price it desires and, as a result, could lose its entire investment in such investments. Liquid securities can become illiquid
during periods of market stress. If a significant amount of the Fund’s securities become illiquid, the Fund may not be able to timely
pay redemption proceeds and may need to sell securities at significantly reduced prices.
Borrowing
Risk. Borrowing money to buy securities exposes the Fund to leverage
and will cause the Fund’s share price to be more volatile because leverage will exaggerate the effect of any increase or decrease
in the value of the Fund’s portfolio securities. Borrowing money may also require the Fund to liquidate positions when it may not
be advantageous to do so. In addition, the Fund will incur interest expenses and other fees on borrowed money. There can be no assurance
that the Fund’s borrowing strategy will enhance and not reduce the Fund’s returns.
Environmental,
Social and Governance (ESG) Considerations Risk. The ESG considerations
that may be assessed as part of a credit research process to implement the Fund's investment strategy in pursuit of its investment objective
may vary across types of eligible investments and issuers, and not every ESG factor may be identified or evaluated for every
investment,
and not every investment or issuer may be evaluated for ESG considerations. The incorporation of ESG factors as part of a credit analysis
may affect the Fund’s exposure to certain issuers or industries and may not work as intended. Information used to evaluate such
factors may not be readily available, complete or accurate, and may vary across providers and issuers. There is no guarantee that the
incorporation of ESG considerations will be additive to the Fund’s performance.
Management
Risk. The Fund is actively managed and depends heavily on the Adviser’s
judgment about markets, interest rates or the attractiveness, relative values, liquidity, or potential appreciation of particular investments
made for the Fund’s portfolio. The Fund could experience losses if these judgments prove to be incorrect. Additionally, legislative,
regulatory, or tax developments may adversely affect management of the Fund and, therefore, the ability of the Fund to achieve its investment
objective.
The
returns shown for periods ending on or prior to May 24, 2019 are those
of the Class A, Class C, Class R, Class Y and Class I shares of the predecessor fund. Class A, Class C, Class R, Class Y and Class I shares
of the predecessor fund were reorganized into Class A, Class C, Class R, Class Y and Class R6 shares, respectively, of the Fund after
the close of business on May 24, 2019. Class A, Class C, Class R, Class Y and Class R6 shares’ returns of the Fund will be different
from the returns of the predecessor fund as they have different expenses.
Fund
performance reflects any applicable fee waivers and expense reimbursements.
Performance returns would be lower without applicable fee waivers and expense reimbursements.
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
|
|
|
|
-
|
|
|
|
|
|
|
|
-
|
4 Invesco Senior
Floating Rate Fund
Average Annual Total Returns (for the periods ended December 31, 2021)
|
|
Inception
Date
|
1
Year
|
5
Years
|
10
Years
|
Since
Inception
|
|
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 |
|
|
|
—
|
|
|
| |||||
|
Custom
Invesco Senior Floating Rate
Index
|
|
|
|
|
|
|
| |||||
|
JP
Morgan Leveraged Loan Index
(reflects
no deduction for fees,
expenses
or taxes) |
|
|
|
|
—
|
|
| |||||
1
2
Management
of the Fund
Investment
Adviser: Invesco Advisers, Inc.
Investment
Sub-Adviser: Invesco Senior Secured Management, Inc.
|
Portfolio
Managers |
Title
|
Length
of Service on the Fund |
|
David
Lukkes, CFA |
Portfolio
Manager (lead) |
2019
(predecessor fund since 2015) |
|
| ||
|
Thomas
Ewald |
Portfolio
Manager |
2020
|
|
| ||
|
Philip
Yarrow, CFA |
Portfolio
Manager |
2020
|
|
| ||
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 primarily are taxable to you as ordinary income, unless you are investing through a tax-advantaged arrangement,
such as a 401(k) plan, 529 college savings plan or individual retirement account. Any distributionss from a 401(k) plan or individual
retirement account may be taxed as ordinary income when withdrawn from such plan or account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund, the Fund’s distributor
or its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict
of interest by influencing the broker-dealer or other intermediary and your salesperson or financial adviser to recommend the Fund over
another investment. Ask your salesperson or financial adviser or visit your financial intermediary’s website for more information.
Investment Objective(s), Strategies, Risks and Portfolio Holdings
Objective(s)
and Strategies
The
Fund’s investment objective is to seek income. The Fund’s investment objective may be changed by the Board of Trustees (the
Board) without shareholder approval.
The
Fund invests mainly in floating rate loans (sometimes referred to as “adjustable
rate loans”) that hold (or in the judgment of the investment adviser, hold) a senior position in the capital structure of U.S. and
foreign corporations, partnerships or other business entities that, under normal circumstances, allow them to have priority of claim ahead
of (or at least as high as) other obligations of a borrower in the event of liquidation. These investments are referred to as “Senior
Loans.” Senior Loans may be collateralized or uncollateralized. They typically pay interest at rates that float above, or are adjusted
periodically based on, a benchmark that reflects current interest rates.
Under
normal market conditions, the Fund will invest at least 80% of its net
assets (plus the amount of any borrowings for investment purposes) in Senior Loans, and in derivatives and other instruments that have
economic characteristics similar to such securities. The Fund may invest in Senior Loans directly as an original lender, or by assignment
from a lender, or it may invest indirectly through loan participation agreements. While most of these Senior Loans will be collateralized,
the Fund can also invest up to 10% of its net assets (plus the amount of borrowings for investment purposes) in uncollateralized Senior
Loans.
5 Invesco Senior
Floating Rate Fund
The
Fund can invest up to 20% of its total assets in cash (whether U.S. dollars
or a foreign currency) or cash equivalents, or in other loans, securities and other investments, including but not limited to: secured
or unsecured fixed-rate loans, fixed or floating rate notes or bonds, securities issued or guaranteed by the U.S. government or its agencies
or instrumentalities, investment-grade short-term debt obligations, equity securities (including common stocks, preferred stocks, rights,
warrants, and securities convertible into common stock) and derivatives. The Fund also may invest in Senior Loans made in connection with
highly leveraged transactions, including but not limited to, operating loans, leveraged buyout loans, and leveraged capitalization loans.
The
Fund can invest 25% or more of its total assets in securities of the group
of industries in the financial securities sector.
The
Fund can invest in investment-grade or below-investment-grade debt
instruments (sometimes referred to as “high yield” or “junk” securities). The Fund can invest up to 100% of its
assets in debt instruments rated below-investment-grade, and will normally invest a substantial portion of its assets in those securities.
“Investment-grade” debt instruments are rated in one of the four highest rating categories by nationally recognized statistical
rating organizations such as Moody’s or S&P Global Ratings (or, in the case of unrated securities, determined by the Adviser
to be comparable to securities rated investment-grade). The Fund may also invest in unrated instruments, in which case the Fund’s
Adviser may assign ratings to those instruments, after assessing their credit quality and other factors, in investment-grade or below-investment-grade
categories similar to those of nationally recognized statistical rating organizations. There can be no assurance, nor is it intended,
that the Adviser’s credit analysis is consistent or comparable with the credit analysis process used by a nationally recognized
statistical rating organization.
While
the Fund can invest up to 100% of its assets in loans that are below
investment grade, it can invest only a variable amount of its net assets in debt obligations, including loans, rated below “B”
(at the time the Fund buys them). The limit on investments rated below “B” is variable and is measured as a percentage of
the Fund’s net assets. The limit is determined by reference to the J.P. Morgan Leveraged Loan Index, a representative index of tradeable,
senior secured, U.S. dollar-denominated, non-investment grade loans. The limit is equal to the percentage of assets rated below “B”
constituting the J.P. Morgan Leveraged Loan Index plus 10%. The limit is reset monthly based on the percentage of below “B”
assets constituting the J.P. Morgan Leveraged Loan Index at the prior month’s end. For example, if on March 31st, the percentage
of below “B” assets in the J.P. Morgan Leveraged Loan Index was 7.5%, the Fund could invest up to 17.5% of its net assets
in investments rated below “B” during the month of April. The Fund is not obligated to dispose of its investment in a loan
if its rating drops below “B,” but the Adviser will monitor the loan to determine if any action is warranted or desirable.
There is no limit on the Fund’s investment in unrated loans if the limitations set forth above are met. The Fund may invest in defaulted
or distressed loans and loans to bankrupt companies.
The
Fund may invest in securities of U.S. and foreign issuers. The Fund can
invest in Senior Loans or other investments (such as subordinated debt and fixed-rate loans) issued by foreign entities. The Fund has
no requirements as to the range of maturities of the debt instruments it can buy or as to the market capitalization of the issuers of
those instruments. The Fund can borrow up to one-third of the Fund’s assets (including the amount borrowed) and use other techniques
to manage its cash flow, to redeem shares, or to purchase assets, a technique referred to as “leverage.”
The
Fund may also use certain types of derivative investments to try to enhance
income or to try to manage (hedge) investment risks, including, but not limited to, options, futures contracts, swaps, and “structured”
notes. The Fund can engage in foreign currency transactions either on a spot basis (i.e. for prompt delivery and settlement at the rate
prevailing in the currency exchange market at the time) or through forward foreign currency contracts to hedge against adverse movements
in the foreign currencies in which
portfolio
securities are denominated. The Fund can use currency futures and currency swaps to hedge its exposure to foreign currencies.
In
selecting investments for the Fund, the portfolio managers evaluate overall
investment opportunities and risks among the types of investments the Fund can hold. They analyze the credit standing and risks of borrowers
whose loans or debt securities they are considering for the Fund’s portfolio. They evaluate information about borrowers from their
own research or research supplied by rating organizations, agent banks or other sources and select only those loans that they believe
are likely to pay the interest and repay the principal when it becomes due. The portfolio managers consider many factors, including, among
others,
◾
the
borrower’s past and expected future financial performance
◾
the
experience and depth of the borrower’s management
◾
the
status of the borrower’s industry and its position in that industry
◾
the
collateral for the loan or other debt security
◾
the
borrower’s assets and cash flows
◾
the
credit quality of the debt obligations of the bank servicing the loan and other intermediaries imposed between the borrower and the Fund.
The credit research process utilized by the Fund to implement its investment strategy in pursuit of its investment objective considers
factors that may include, but are not limited to, an issuer’s operations, capital structure and environmental, social and governance
(“ESG”) considerations. Credit quality analysis for certain issuers therefore may consider whether any ESG factors pose a
material financial risk or opportunity to an issuer. The Adviser may determine that ESG considerations are not material to certain issuers
or types of investments held by the Fund. In addition, not all issuers or Fund investments may undergo a credit quality analysis that
considers ESG factors, and not all investments held by the Fund will rate strongly on ESG criteria.
There
can be no assurance that the portfolio managers’ analysis will identify
all of the factors that may impair the value of a Senior Loan or other investment.
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 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
6 Invesco Senior
Floating Rate Fund
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.
◾
COVID-19.
The “COVID-19” strain of coronavirus has resulted in instances of market closures and dislocations, extreme volatility, liquidity
constraints and increased trading costs. Efforts to contain its spread have resulted in travel restrictions, disruptions of healthcare
systems, business operations (including business closures) and supply chains, layoffs, lower consumer demand and employee availability,
and defaults and credit downgrades, among other significant economic impacts that have disrupted global economic activity across many
industries. Such economic impacts may exacerbate other pre-existing political, social and economic risks locally or globally and cause
general concern and uncertainty. The full economic impact and ongoing effects of COVID-19 (or other future epidemics or pandemics) at
the macro-level and on individual businesses are unpredictable and may result in significant and prolonged effects on the Fund’s
performance.
Senior
Loans and Other Loans Risk. There are a number of risks associated
with an investment in Senior Loans including credit risk, interest rate risk, liquidity risk,
valuation risk and prepayment risk. These risks are typically
associated with debt securities but may be heightened in part because of the limited public information regarding Senior Loans. Senior
Loans generally are floating rate loans, which are subject to interest rate risk as the interest paid on the floating rate loans adjusts
periodically based on changes in widely accepted reference rates. Lack of an active trading market, restrictions on resale, irregular
trading activity, wide bid/ask spreads and extended trade settlement periods may impair the Fund’s ability to sell Senior Loans
within its desired time frame or at an acceptable price and its ability to accurately value existing and prospective investments. Extended
trade settlement periods may result in cash not being immediately available to the Fund. As a result, the Fund may have to sell other
investments or engage in borrowing transactions to raise cash to meet its obligations. The risk of holding Senior Loans is also directly
tied to the risk of insolvency or bankruptcy of the issuing banks. The value of Senior Loans can be affected by, and is sensitive to,
changes in government regulation and to economic downturns in the United States and abroad. These risks could cause the Fund to lose income
or principal on a particular investment, which in turn could affect the Fund’s returns.
In
addition to the risks typically associated with debt securities, senior loans
are also subject to the risk that a court could subordinate a senior loan, which typically holds a senior position in the capital structure
of a
borrower,
to presently existing or future indebtedness or take other action detrimental to the holders of senior loans. Loans usually have mandatory
and optional prepayment provisions. If a borrower prepays a loan, the Fund will have to reinvest the proceeds in other loans or financial
assets that may pay lower rates of return.
Loans
are subject to the risk that the value of the collateral, if any, securing
a loan may decline, be insufficient to meet the obligations of the borrower, or be difficult to liquidate. In the event of a default,
the Fund may have difficulty collecting on any collateral and would not have the ability to collect on any collateral for an uncollateralized
loan. In addition, the lenders’ security interest or their enforcement of their security under the loan agreement may be found by
a court to be invalid or the collateral may be used to pay other outstanding obligations of the borrower. The Fund’s access to collateral,
if any, may be limited by bankruptcy, other insolvency laws, or by the type of loan the Fund has purchased. As a result, a collateralized
loan may not be fully collateralized and can decline significantly in value.
Loan
investments are often issued in connection with highly leveraged transactions.
Such transactions include leveraged buyout loans, leveraged recapitalization loans, and other types of acquisition financing. These obligations
are subject to greater credit risks than other investments including a greater possibility that the borrower may default or enter bankruptcy.
Highly leveraged loans also may be less liquid than other loans. If the Fund voluntarily or involuntarily sold those types of loans, it
might not receive the full value it expected.
Due
to restrictions on transfers in loan agreements and the nature of the
private syndication of loans including, for example, the lack of publicly-available information, some loans are not as easily purchased
or sold as publicly-traded securities. Some loans are illiquid, which may make it difficult for the Fund to value them or dispose of them
at an acceptable price when it wants to. Additionally, valuation of Senior Loans may require greater research due to limited public information
available and elements of judgment may play a greater role in valuation since there may be a lack of objective data available. The market
price of investments in floating rate loans is expected to be less affected by changes in interest rates than fixed-rate investments because
floating rate loans pay a floating rate of interest that will fluctuate as market interest rates do and therefore should more closely
track market movements in interest rates.
Direct
investments in loans and, to a lesser degree, investments in participation
interests in or assignments of loans may be limited. A limited availability of loans could reduce the amount of attractive investments
for the Fund. If market demand for loans increases, the interest paid by loans that the Fund holds may decrease. Due to the possible limited
availability of loans in the market at a given time in which the Fund can invest, there is a risk that the Fund may not be able to invest
a sufficient amount in loans at all times to meet its 80% asset investment requirement (including borrowings for investment purposes).
Compared
to securities and to certain other types of financial assets, purchases
and sales of loans take relatively longer to settle. This extended settlement process can (i) increase the counterparty credit risk borne
by the Fund; (ii) leave the Fund unable to timely vote, or otherwise act with respect to, loans it has agreed to purchase; (iii) delay
the Fund from realizing the proceeds of a sale of a loan; (iv) inhibit the Fund’s ability to re-sell a loan that it has agreed to
purchase if conditions change (leaving the Fund more exposed to price fluctuations); (v) prevent the Fund from timely collecting principal
and interest payments; and (vi) expose the Fund to adverse tax or regulatory consequences. To the extent the extended loan settlement
process gives rise to short-term liquidity needs, such as the need to satisfy redemption requests, the Fund may hold cash, sell investments
or temporarily borrow from banks or other lenders. If the Fund undertakes such measures, the Fund’s ability to pay redemption proceeds
in a timely manner, as well as the Fund’s performance, may be adversely affected.
If
the Fund invests in a loan via a participation, the Fund will be exposed to
the ongoing counterparty risk of the entity providing exposure to the loan
7 Invesco Senior
Floating Rate Fund
(and,
in certain circumstances, such entity’s credit risk) in addition to the exposure the Fund has to the creditworthiness of the borrower.
The terms of the participation may not entitle the Fund to all rights of a direct lender under the loan (for example, with respect to
consent, voting or enforcement rights). Therefore, the Fund’s rights under a participation interest for a particular loan may be
more limited than the rights of the original lender or an investor who acquires an assignment of that loan. Where the Fund invests in
a loan via a participation, the Fund generally will have no right of direct recourse against the borrower or ability to otherwise directly
enforce the terms of the loan agreement.
In
certain circumstances, loans may not be deemed to be securities, and
in the event of fraud or misrepresentation by a borrower or an arranger, lenders will not have the protection of the anti-fraud provisions
of the federal securities laws, as would be the case for bonds or stocks. Instead, in such cases, lenders generally rely on the contractual
provisions in the loan agreement itself, and common-law fraud protections under applicable state law.
Debt
Securities Risk. The prices of debt securities held by the Fund
will be affected by changes in interest rates, the creditworthiness of the issuer and other factors. An increase in prevailing interest
rates typically causes the value of existing debt securities to fall and often has a greater impact on longer-duration debt securities
and higher quality debt securities. Falling interest rates will cause the Fund to reinvest the proceeds of debt securities that have been
repaid by the issuer at lower interest rates. Falling interest rates may also reduce the Fund’s distributable income because interest
payments on floating rate debt instruments held by the Fund will decline. The Fund could lose money on investments in debt securities
if the issuer or borrower fails to meet its obligations to make interest payments and/or to repay principal in a timely manner. If an
issuer seeks to restructure the terms of its borrowings or the Fund is required to seek recovery upon a default in the payment of interest
or the repayment of principal, the Fund may incur additional expenses. Changes in an issuer’s financial strength, the market’s
perception of such strength or in the credit rating of the issuer or the security may affect the value of debt securities. The Adviser’s
credit analysis may fail to anticipate such changes, which could result in buying a debt security at an inopportune time or failing to
sell a debt security in advance of a price decline or other credit event.
High
Yield Debt Securities (Junk Bond) Risk. The Fund’s investments
in high yield debt securities (commonly referred to as “junk bonds”) and other lower-rated securities will subject the Fund
to substantial risk of loss. These securities are considered to be speculative with respect to the issuer’s ability to pay interest
and principal when due and are more susceptible to default or decline in market value due to adverse economic, regulatory, political or
company developments than higher rated or investment grade securities. Prices of high yield debt securities tend to be very volatile.
These securities are less liquid than investment grade debt securities and may be difficult to sell at a desirable time or price, particularly
in times of negative sentiment toward high yield securities.
LIBOR
Transition Risk. The Fund may have investments in financial instruments
that utilize the London Interbank Offered Rate (“LIBOR”) as the reference or benchmark rate for variable interest rate calculations.
LIBOR is intended to measure the rate generally at which banks can lend and borrow from one another in the relevant currency on an unsecured
basis. In the years following the 2008 financial crisis, the integrity of LIBOR was increasingly questioned because several banks contributing
to its calculation were accused of rate manipulation and because of a general contraction in the unsecured interbank lending market. As
a result, regulators and financial industry working groups in several jurisdictions have worked over the past several years to identify
alternative reference rates (“ARRs”) to replace LIBOR and to assist with the transition to the new ARRs. In connection with
the transition, on March 5, 2021 the UK Financial Conduct Authority (FCA), the regulator that oversees LIBOR, announced that the majority
of LIBOR rates would cease to be published or would no longer be representative on January 1, 2022. Consequently, the publication of most
LIBOR rates ceased
at
the end of 2021, but a selection of widely used USD LIBOR rates continues to be published until June 2023 to allow for an orderly transition
away from these rates. Additionally, key regulators have instructed banking institutions to cease entering into new contracts that reference
these USD LIBOR settings after December 31, 2021, subject to certain limited exceptions.
There
remains uncertainty and risks relating to the continuing LIBOR
transition and its effects on the Fund and the instruments in which the Fund invests. For example,
there can be no assurance that the composition or characteristics
of any ARRs or financial instruments
in
which the Fund
invests that
utilize ARRs will be similar to or produce the same value or economic
equivalence as LIBOR or that these instruments will have the same volume or liquidity. Additionally, although regulators have generally
prohibited banking institutions from entering into new contracts that reference those USD LIBOR settings that continue to exist,
there remains
uncertainty and risks relating to certain
“legacy”
USD LIBOR
instruments that were issued or entered into before December
31,
2021 and the process by which a replacement interest rate will
be identified and implemented into these instruments when USD LIBOR
is ultimately discontinued. The effects of such uncertainty and risks in
“legacy”
USD LIBOR instruments held by the Fund could result in losses to
the Fund.
Changing
Fixed Income Market Conditions Risk. Increases
in the federal funds and equivalent foreign rates or other changes to monetary policy or regulatory actions may expose fixed income markets
to heightened volatility and reduced liquidity for certain fixed income investments, particularly those with longer maturities. It is
difficult to predict the impact of interest rate changes on various markets. In addition, decreases in fixed income dealer market-making
capacity may also potentially lead to heightened volatility and reduced liquidity in the fixed income markets. As a result, the value
of the Fund’s investments and share price may decline. Changes in
central bank policies
could also result in higher than normal redemptions by shareholders,
which could potentially increase the Fund’s portfolio turnover rate and transaction costs and potentially lower the Fund’s
performance returns.
Defaulted
Securities Risk. Defaulted securities pose a greater risk that
principal will not be repaid than non-defaulted securities. The Fund will generally not receive interest payments on defaulted securities
and may incur costs to protect its investment. Defaulted securities and any securities received in an exchange for such securities may
be subject to restrictions on resale. Investments in defaulted securities and obligations of distressed issuers are considered speculative
and the prices of these securities may be more volatile than non-defaulted securities.
Credit
Quality Risk. The Fund can invest in securities that are rated
or unrated. “Investment-grade” securities are those rated within the four highest rating categories by nationally recognized
statistical rating organizations such as Moody’s or S&P (or, in the case of unrated securities, determined by the investment
adviser to be comparable to securities rated investment-grade). “Below-investment-grade” securities are those that are rated
below those categories, which are also referred to as “junk bonds.” While securities rated within the fourth highest category
by S&P (meaning BBB+, BBB or BBB-) or by Moody’s (meaning Baa1, Baa2 or Baa3) are considered “investment-grade,”
they have some speculative characteristics. If two or more nationally recognized statistical rating organizations have assigned different
ratings to a security, the investment adviser uses the highest rating assigned.
Credit
ratings evaluate the expectation that scheduled interest and principal
payments will be made in a timely manner. They do not reflect any judgment of market risk. Ratings and market value may change from time
to time, positively or negatively, to reflect new developments regarding the issuer. Rating organizations might not change their credit
rating of an issuer in a timely manner to reflect events that could affect the issuer’s ability to make timely payments on its obligations.
In selecting securities for its portfolio and evaluating their income potential and credit risk, the Fund does not rely solely on ratings
by rating organizations but evaluates business,
8 Invesco Senior
Floating Rate Fund
economic
and other factors affecting issuers as well. Many factors affect an issuer’s ability to make timely payments, and the credit risk
of a particular security may change over time. The investment adviser also may use its own research and analysis to assess those risks.
If a bond is insured, it will usually be rated by the rating organizations based on the financial strength of the insurer. The rating
categories are described in an Appendix to the SAI.
Unrated
Securities Risk. The investment adviser may internally assign ratings
to securities that are not rated by any nationally recognized statistical rating organization, after assessing their credit quality and
other factors, in categories similar to those of nationally recognized statistical rating organizations. There can be no assurance, nor
is it intended, that the investment adviser’s credit analysis process is consistent or comparable with the credit analysis process
used by a nationally recognized statistical rating organization. Unrated securities are considered “investment-grade” or “below-investment-grade”
if judged by the investment adviser to be comparable to rated investment-grade or below-investment-grade securities. The investment adviser’s
rating does not constitute a guarantee of the credit quality. In addition, some unrated securities may not have an active trading market
or may trade less actively than rated securities, which means that the Fund might have difficulty selling them promptly at an acceptable
price.
In
evaluating the credit quality of a particular security, whether rated or unrated,
the investment adviser will normally take into consideration a number of factors such as, if applicable, the financial resources of the
issuer, the underlying source of funds for debt service on a security, the issuer’s sensitivity to economic conditions and trends,
any operating history of the facility financed by the obligation, the degree of community support for the financed facility, the capabilities
of the issuer’s management, and regulatory factors affecting the issuer or the particular facility.
A
reduction in the rating of a security after the Fund buys it will not require
the Fund to dispose of the security. However, the investment adviser will evaluate such downgraded securities to determine whether to
keep them in the Fund’s portfolio.
Concentration
in Financial Securities Sector Risk. The Fund will not concentrate
its investments in issuers in any one industry, except that the Fund may invest without limit in instruments of the group of industries
in the financial securities sector. At times, the Fund may emphasize investments in some industries more than others. The Securities and
Exchange Commission has taken the position that investment of more than 25% of a fund’s total assets in issuers in the same industry
constitutes concentration in that industry. That limit does not apply to securities issued or guaranteed by the U.S. government or its
agencies and instrumentalities. The Fund will consider, to the extent practicable, the concentration of the portfolio securities of any
underlying investment companies in which it may invest when determining compliance with its concentration policy.
The
Fund regards the “issuer” of a loan as including the borrower under the
loan agreement, the agent bank and any intermediate participant. The Fund may look to the creditworthiness of the agent bank and other
intermediate participants in a loan, in addition to the borrower. That is because it may be necessary to assert through the agent bank
or intermediate participant any rights that may exist under the loan against the borrower if the borrower defaults. Those parties typically
are commercial banks, thrift institutions, insurance companies and finance companies (and their holding companies). The Fund will be subject
to the risks associated with these financial institutions. Companies in the financial securities industries may be more susceptible to
particular economic and regulatory events such as fluctuations in interest rates, changes in the monetary policy of the Board of Governors
of the Federal Reserve System, governmental regulations concerning those industries and affecting capital raising activities and fluctuations
in the financial markets.
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.
Investing
in Stocks Risk. Common stock represents an ownership interest in
a company. It ranks below preferred stock and debt securities in claims for dividends and in claims for assets of the issuer in a liquidation
or bankruptcy. Common stocks may be exchange-traded or over-the-counter securities. Over-the-counter securities may be less liquid than
exchange-traded securities.
The
value of the Fund’s portfolio may be affected by changes in the stock
markets. Stocks and other equity securities fluctuate in price in response to changes to equity markets in general. Stock markets may
experience significant short-term volatility and may fall or rise sharply at times. Adverse events in any part of the equity or fixed-income
markets may have unexpected negative effects on other market segments. Different stock markets may behave differently from each other
and U.S. stock markets may move in the opposite direction from one or more foreign stock markets.
The
prices of individual stocks generally do not all move in the same direction
at the same time. However, individual stock prices tend to go up and down more dramatically than those of certain other types of investments,
such as bonds. A variety of factors can negatively affect the price of a particular company’s stock. These factors may include,
but are not limited to: poor earnings reports, a loss of customers, litigation against the company, general unfavorable performance of
the company’s sector or industry, or changes in government regulations affecting the company or its industry. To the extent that
securities of a particular type are emphasized (for example foreign stocks, stocks of small- or mid-cap companies, growth or value stocks,
or stocks of companies in a particular industry), their share values may fluctuate more in response to events affecting the market for
those types of securities.
Preferred
Securities Risk. Preferred securities are subject to issuer-specific
and market risks applicable generally to equity securities. Preferred stock has a set dividend rate and ranks ahead of common stocks and
behind debt securities in claims for dividends and for assets of the issuer in a liquidation or bankruptcy. Preferred securities also
may be subordinated to bonds or other debt instruments in an issuer’s capital structure, subjecting them to a greater risk of non-payment
than these more senior securities. For this reason, the value of preferred securities will
9 Invesco Senior
Floating Rate Fund
usually
react more strongly than bonds and other debt securities to actual or perceived changes in the company’s financial condition or
prospects. Preferred securities may be less liquid than many other securities, such as common stocks, and generally offer no voting rights
with respect to the issuer.
Rights
and Warrants Risk. Rights and warrants may be purchased directly
or acquired as part of other securities. Warrants are options to purchase equity securities at a specific price during a specific period
of time. The price of a warrant does not necessarily move parallel to, and is generally more volatile than, the price of the underlying
security. Warrants may be significantly less valuable or worthless on their expiration date and may also be postponed or terminated early,
resulting in a partial or total loss. Rights are similar to warrants, but normally have a short duration and are distributed directly
by the issuer to its shareholders. Rights and warrants have no voting rights, receive no dividends and have no rights with respect to
the assets of the issuer. Warrants and rights are highly volatile and, therefore, more susceptible to sharp declines in value than the
underlying security might be. The market for rights or warrants may be very limited and it may be difficult to sell them promptly at an
acceptable price.
Convertible
Securities Risk. The market value of a convertible security performs
like that of a regular debt security; that is, if market interest rates rise, the value of a convertible security usually falls. In addition,
convertible securities are subject to the risk that the issuer will not be able to pay interest or dividends when due, and their market
value may change based on changes in the issuer’s credit rating or the market’s perception of the issuer’s creditworthiness.
Convertible securities can be converted into or exchanged for a set amount of common stock of an issuer within a particular period of
time at a specified price or according to a price formula. Convertible debt securities pay interest and convertible preferred stocks pay
dividends until they mature or are converted, exchanged or redeemed. Some convertible debt securities may be considered “equity
equivalents” because of the feature that makes them convertible into common stock. Since a convertible security derives a portion
of its value from the common stock into which it may be converted, a convertible security is also subject to the same types of market
and issuer risks that apply to the underlying common stock. In addition, certain convertible securities are subject to involuntary conversions
and may undergo principal write-downs upon the occurrence of certain triggering events. These convertible securities are subject to an
increased risk of loss and are generally subordinate in rank to other debt obligations of the issuer. Convertible securities may be rated
below investment grade, which are considered to have more speculative characteristics and greater susceptibility to default or decline
in market value than investment grade securities.
Warrants,
Equity Securities and Junior Debt Securities of the Borrower Risk.
Warrants, equity securities and junior debt securities have a subordinate claim on a Borrower’s assets as compared with Senior Loans.
As a result, the values of warrants, equity securities and junior debt securities generally are more dependent on the financial condition
of the Borrower and less dependent on fluctuations in interest rates than are the values of many debt securities. The values of warrants,
equity securities and junior debt securities may be more volatile than those of Senior Loans and thus may increase the volatility of the
Fund’s net asset value. Additionally, warrants may be significantly less valuable on their relevant expiration date resulting in
a loss of money or they may expire worthless resulting in a total loss of the investment. Warrants may also be postponed or terminated
early resulting in a partial or total loss of the investment. Warrants may also be illiquid.
U.S.
Government Obligations Risk. Obligations of U.S. Government agencies
and authorities receive varying levels of support and may not be backed by the full faith and credit of the U.S. Government, which could
affect the Fund’s ability to recover should they default. No assurance can be given that the U.S. Government will provide financial
support to its agencies and authorities if it is not obligated by law to do so.
Derivatives
Risk. A derivative is an instrument whose value depends largely
on (and is derived from) the value of an underlying security, currency, commodity, interest rate, index or other asset (each referred
to as an underlying asset). In addition to risks relating to the underlying assets, the use of derivatives may include other, possibly
greater, risks, which are described below.
◾
Counterparty
Risk. Certain derivatives do not trade on an established exchange
(referred to as over-the-counter (OTC) derivatives) and are simply financial contracts between the Fund and a counterparty. When the Fund
is owed money on an OTC derivative, the Fund is dependent on the counterparty to pay or, in some cases, deliver the underlying asset,
unless the Fund can otherwise sell its derivative contract to a third party prior to its expiration. Many counterparties are financial
institutions such as banks and broker-dealers and their creditworthiness (and ability to pay or perform) may be negatively impacted by
factors affecting financial institutions generally. In addition, in the event that a counterparty becomes bankrupt or insolvent, the Fund’s
ability to recover the collateral that the Fund has on deposit with the counterparty could be delayed or impaired. For derivatives traded
on a centralized exchange, the Fund generally is dependent upon the solvency of the relevant exchange clearing house (which acts as a
guarantor for each contractual obligation under such derivatives) for payment on derivative instruments for which the Fund is owed money.
◾
Leverage
Risk. Many derivatives do not require a payment up front equal
to the economic exposure created by holding a position in the derivative, which creates a form of leverage. As a result, an adverse change
in the value of the underlying asset could result in the Fund sustaining a loss that is substantially greater than the amount invested
in the derivative or the anticipated value of the underlying asset. In addition,
some derivatives have the potential for unlimited loss, regardless
of the size of the Fund’s initial investment. Leverage may therefore make the Fund’s returns more volatile and increase
the risk of loss. In certain market conditions, losses on derivative
instruments can grow larger while the value of the Fund’s other assets fall, resulting in the Fund’s derivative positions
becoming a larger percentage of the Fund’s investments.
◾
Liquidity
Risk. There is a smaller pool of buyers and sellers for certain
derivatives, particularly OTC derivatives, than more traditional investments such as stocks. These buyers and sellers are often financial
institutions that may be unable or unwilling to buy or sell derivatives during times of financial or market stress. Derivative instruments
may therefore be less liquid than more traditional investments and the Fund may be unable to sell or exit its derivative positions at
a desirable time or price. This risk may be more acute under adverse market conditions, during which the Fund may be most in need of liquidating
its derivative positions. To the extent that the Fund is unable to exit a derivative position because of market illiquidity, the Fund
may not be able to prevent further losses of value in its derivatives holdings and the liquidity of the Fund and its ability to meet redemption
requests may be impaired to the extent that a substantial portion of the Fund’s otherwise liquid assets must be used as margin.
Another consequence of illiquidity is that the Fund may be required to hold a derivative instrument to maturity and take or make delivery
of the underlying asset that the Adviser would otherwise avoid.
◾
Forward
Contracts Risk. The projection of short-term currency market movements
is extremely difficult, and the successful execution of a short-term hedging strategy is highly uncertain. The precise matching of the
amounts under forward contracts and the value of the securities involved generally will not be possible because the future value of securities
denominated in foreign currencies will change as a consequence of market movements between the date the forward contract is entered into
and the date it is sold. Investments in forward
10 Invesco Senior
Floating Rate Fund
contracts
involve the risk that anticipated currency movements will not be accurately predicted, causing the Fund to sustain losses on these contracts
and to pay additional transaction costs.
◾
Futures
Contracts Risk. The volatility of futures contracts prices has
been historically greater than the volatility of stocks and bonds. The liquidity of the futures market depends on participants entering
into offsetting transactions rather than making or taking delivery. To the extent participants decide to make or take delivery, liquidity
in the futures market could be reduced. In addition, futures exchanges often impose a maximum permissible price movement on each futures
contract for each trading session. The Fund may be disadvantaged if it is prohibited from executing a trade outside the daily permissible
price movement.
◾
Swap
Transactions Risk. Under U.S. financial reform legislation enacted
in 2010, certain types of swaps are required to be executed on a regulated market and cleared through a central clearing house counterparty,
which may entail further risks and costs for the Fund. Swap agreements are privately negotiated in the over-the-counter market and
may be entered into as a bilateral contract or may be centrally cleared. In a centrally cleared swap, immediately following execution
of the swap agreement, the swap agreement is submitted for clearing to a central clearing house counterparty, and the Fund faces the central
clearing house counterparty by means of an account with a futures commission merchant that is a member of the clearing house.
◾
Other
Risks. Compared to other types of investments, derivatives may
be harder to value and may also be less tax efficient, as described under the “Taxes” section of the prospectus. In addition,
changes in government regulation of derivative instruments could affect the character, timing and amount of the Fund’s taxable income
or gains, and may limit or prevent the Fund from using certain types of derivative instruments as a part of its investment strategy, which
could make the investment strategy more costly to implement or require the Fund to change its investment strategy. Derivatives strategies
may not always be successful. For example, to the extent that the Fund uses derivatives for hedging or to gain or limit exposure to a
particular market or market segment, there may be imperfect correlation between the value of the derivative instrument and the value of
the instrument being hedged or the relevant market or market segment, in which case the Fund may not realize the intended benefits. There
is also the risk that during adverse market conditions, an instrument which would usually operate as a hedge provides no hedging benefits
at all. The Fund’s use of derivatives may be limited by the requirements for taxation of the Fund as a regulated investment company.
Liquidity
Risk. The Fund may be unable to sell illiquid investments at the
time or price it desires and, as a result, could lose its entire investment in such investments. An investment may be illiquid due to
a lack of trading volume in the investment or if the investment is privately placed and not traded in any public market or is otherwise
restricted from trading. Liquid securities can become illiquid during periods of market stress. If a significant amount of the Fund’s
securities become illiquid, the Fund may not be able to timely pay redemption proceeds and may need to sell securities at significantly
reduced prices.
Borrowing
Risk. Borrowing money to buy securities exposes the Fund to leverage
because the Fund seeks to achieve a return on a capital base larger than the assets that shareholders have contributed to the Fund. Borrowing
will cause the Fund’s share price to be more volatile because leverage will exaggerate the effect of any increase or decrease in
the value of the Fund’s portfolio securities. The Fund may also be required to liquidate positions when it may not be advantageous
to do so in order to repay borrowed money when due. In addition, the Fund will incur interest
expenses
and other fees on borrowed money. There can be no assurance that the Fund’s borrowing strategy will enhance and not reduce the Fund’s
returns.
Environmental,
Social and Governance (ESG) Considerations Risk. The ESG considerations
that may be assessed as part of a credit research process to implement the Fund's investment strategy in pursuit of its investment objective
may vary, and not every ESG factor may be identified or evaluated for every investment, and not every investment or issuer may be evaluated
for ESG considerations. The incorporation of ESG factors as part of a credit analysis may affect the Fund’s exposure to certain
issuers or industries and may not work as intended. The Fund may underperform other funds that do not incorporate ESG factors or that
use a different methodology to identify and/or incorporate ESG factors. Information used to evaluate such factors may not be readily available,
complete or accurate, and may vary across providers and issuers as ESG is not a uniformly defined characteristic, which could negatively
impact the ability to accurately assess credit quality, which could negatively impact the Fund’s performance. There is no guarantee
that the incorporation of ESG considerations will be additive to the Fund’s performance.
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
Advisers, Inc. serves as the Fund’s investment adviser. The Adviser manages the investment operations of the Fund as well as other
investment portfolios that encompass a broad range of investment objectives, and has agreed to perform or arrange for the performance
of the Fund’s day-to-day management. The Adviser is located at 1555 Peachtree Street, N.E., Atlanta, Georgia 30309. The Adviser,
as successor in interest to multiple investment advisers, has been an investment adviser since 1976.
Sub-Advisers:
Invesco Senior Secured Management, Inc. (Invesco Senior Secured)
serves as the Fund’s investment sub-adviser. Invesco Senior Secured, an affiliate of the Adviser, is located at 225 Liberty Street,
New York, New York 10281. Invesco Senior Secured has experience managing senior secured loans dating back to 1990. Invesco Senior Secured
manages a broad array of portfolio types including retail mutual funds, commingled institutional funds, separate accounts and structured
products for a variety of retail and institutional investors (both public and private). Invesco Senior Secured provides portfolio management
services to the Fund.
In
addition, Invesco has entered into one or more Sub-Advisory Agreements
with certain affiliates to serve as sub-advisers to the Fund (the Sub-Advisers). Invesco may appoint the Sub-Advisers from time to time
to provide discretionary investment management services, investment advice, and/or order execution services to the Fund. The Sub-Advisers
and the Sub-Advisory Agreements are described in the SAI.
Potential
New Sub-Advisers (Exemptive Order Structure). The SEC has also
granted exemptive relief that permits the Adviser, subject to certain conditions, to enter into new sub-advisory agreements with affiliated
or
11 Invesco Senior
Floating Rate Fund
unaffiliated
sub-advisers on behalf of the Fund without shareholder approval. The exemptive relief also permits material amendments to existing sub-advisory
agreements with affiliated or unaffiliated sub-advisers (including the Sub-Advisory Agreements with the Sub-Advisers) without shareholder
approval. Under this structure, the Adviser has ultimate responsibility, subject to oversight of the Board, for overseeing such sub-advisers
and recommending to the Board their hiring, termination, or replacement. The structure does not permit investment advisory fees paid by
the Fund to be increased without shareholder approval, or change the Adviser's obligations under the investment advisory agreement, including
the Adviser's responsibility to monitor and oversee sub-advisory services furnished to the Fund.
Exclusion
of Adviser from Commodity Pool Operator Definition
With
respect to the Fund, the Adviser has claimed an exclusion from the definition of “commodity pool operator” (CPO) under the
Commodity Exchange Act (CEA) and the rules of the Commodity Futures Trading Commission (CFTC) and, therefore, is not subject to CFTC registration
or regulation as a CPO. In addition, the Adviser is relying upon a related exclusion from the definition of “commodity trading advisor”
(CTA) under the CEA and the rules of the CFTC with respect to the Fund.
The
terms of the CPO exclusion require the Fund, among other things, to
adhere to certain limits on its investments in “commodity interests.” Commodity interests include commodity futures, commodity
options and swaps, which in turn include non-deliverable forwards. The Fund is permitted to invest in these instruments as further described
in the Fund’s SAI. However, the Fund is not intended as a vehicle for trading in the commodity futures, commodity options or swaps
markets. The CFTC has neither reviewed nor approved the Adviser’s reliance on these exclusions, or the Fund, its investment strategies
or this prospectus.
Adviser
Compensation
During
the fiscal year ended August 31, 2022, the Adviser received compensation of 0.61% of the Fund's average daily net assets, after fee waiver
and/or expense reimbursement, if any. The advisory fee payable by the Fund shall be reduced by any amounts paid by the Fund under the
administrative services agreement with the Adviser.
Invesco,
not the Fund, pays sub-advisory fees, 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
Investment
management decisions for the Fund are made by the investment management team at Invesco Senior Secured.
The
following individuals are jointly and primarily responsible for the day-to-day
management of the Fund’s portfolio:
◾
David
Lukkes, CFA (lead manager), Portfolio Manager, who has been responsible for the Fund since 2019 and has been associated with Invesco Senior
Secured and/or its affiliates since 2019. Prior to the commencement of the Fund’s operations, Mr. Lukkes managed the predecessor
fund since 2015 and was associated with OppenheimerFunds, a global asset management firm, since 2008.
◾
Thomas
Ewald, Portfolio Manager, who has been responsible for the Fund since 2020 and has been associated with Invesco Senior Secured and/or
its affiliates since 2000.
◾
Philip
Yarrow, CFA, Portfolio Manager, who has been responsible for the Fund since 2020 and has been associated with Invesco Senior Secured 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 3.25% initial sales charge as listed under the heading “Category V Initial
Sales Charges” in the “Shareholder Account Information—Initial Sales Charges (Class A Shares Only)” section of
the prospectus. Purchases of Class C shares are subject to a contingent deferred sales charge (CDSC) if you sell Class C shares within
one year of purchase; however, the CDSC shall not apply to the purchases of Class C shares where the selling broker-dealer was not paid
a commission at the time of purchase. For more information on CDSCs, see the “Shareholder Account Information—Contingent Deferred
Sales Charges (CDSCs)” section of this prospectus.
Dividends
and Distributions
The
Fund expects, based on its investment objective and strategies, that its distributions, if any, primarily will consist of ordinary income.
Dividends
The
Fund generally declares dividends from net investment income daily and pays them monthly.
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.
12 Invesco Senior
Floating Rate Fund
Financial Highlights
The
financial highlights information presented for the Fund includes the financial history of the predecessor fund, which was reorganized
into the Fund after the close of business on May 24, 2019. The financial highlights show the Fund’s and predecessor fund’s
financial history for the past five fiscal years or, if shorter, the applicable period of operations since the inception of the Fund or
predecessor fund or class of Fund or predecessor fund shares. The financial highlights table is intended to help you understand the Fund’s
and the predecessor fund’s financial performance. Certain information reflects financial results for a single Fund share.
The
total returns in the table represent the rate that an investor would have
earned (or lost) on an investment in the Fund or predecessor fund (assuming reinvestment of all dividends and distributions). The information
for the fiscal years ended after May 24, 2019 has been audited by PricewaterhouseCoopers LLP, an independent registered public accounting
firm, whose report, along with the Fund’s financial statements, is included in the Fund’s annual report, which is available
upon request. The information for fiscal years ended prior to May 24, 2019 has been audited by the predecessor fund’s auditor.
|
|
Net
asset
value,
beginning
of
period |
Net
investment
income(a)
|
Net
gains
(losses)
on
securities
(both
realized
and
unrealized)
|
Total
from
investment
operations
|
Dividends
from
net
investment
income
|
Net
asset
value,
end
of
period |
Total
return(b)
|
Net
assets,
end
of period
(000's
omitted) |
Ratio
of
expenses
to
average
net
assets
with
fee
waivers
and/or
expenses
absorbed
|
Ratio
of
expenses
to
average net
assets
without
fee
waivers
and/or
expenses
absorbed(c)
|
Supplemental
ratio
of
expenses
to
average
net
assets
with
fee waivers
(excluding
interest,
facilities
and
maintenance
fees)
|
Ratio
of net
investment
income
to
average
net
assets |
Portfolio
turnover
(d)
|
|
Class
A | |||||||||||||
|
Year
ended 08/31/22 |
$7.10
|
$0.35
|
$(0.32)
|
$0.03
|
$(0.34)
|
$6.79
|
0.40%
|
$1,639,394
|
1.04%
|
1.04%
|
1.00%
|
5.05%
|
68%
|
|
Year
ended 08/31/21 |
6.61
|
0.31
|
0.49
|
0.80
|
(0.31)
|
7.10
|
12.35
|
1,666,116
|
1.07
|
1.10
|
1.00
|
4.56
|
86
|
|
Year
ended 08/31/20 |
7.63
|
0.32
|
(1.02)
|
(0.70)
|
(0.32)
|
6.61
|
(9.23)
|
1,586,129
|
1.13
|
1.16
|
1.02
|
4.59
|
53
|
|
One
month ended 08/31/19 |
7.77
|
0.03
|
(0.14)
|
(0.11)
|
(0.03)
|
7.63
|
(1.37)
|
2,962,352
|
1.11(e)
|
1.12(e)
|
1.01(e)
|
5.25(e)
|
1
|
|
Year
ended 07/31/19 |
8.13
|
0.41
|
(0.37)
|
0.04
|
(0.40)
|
7.77
|
0.58
|
3,104,336
|
1.10
|
1.10
|
1.00
|
5.12
|
25
|
|
Year
ended 07/31/18 |
8.15
|
0.37
|
(0.05)
|
0.32
|
(0.34)
|
8.13
|
3.96
|
3,899,006
|
1.11
|
1.12
|
0.99
|
4.53
|
66
|
|
| |||||||||||||
|
Class
C | |||||||||||||
|
Year
ended 08/31/22 |
7.11
|
0.30
|
(0.33)
|
(0.03)
|
(0.29)
|
6.79
|
(0.49)
|
268,127
|
1.79
|
1.79
|
1.75
|
4.30
|
68
|
|
Year
ended 08/31/21 |
6.62
|
0.26
|
0.49
|
0.75
|
(0.26)
|
7.11
|
11.50
|
398,409
|
1.82
|
1.85
|
1.75
|
3.81
|
86
|
|
Year
ended 08/31/20 |
7.64
|
0.27
|
(1.02)
|
(0.75)
|
(0.27)
|
6.62
|
(9.90)
|
733,122
|
1.88
|
1.91
|
1.77
|
3.84
|
53
|
|
One
month ended 08/31/19 |
7.78
|
0.03
|
(0.14)
|
(0.11)
|
(0.03)
|
7.64
|
(1.43)
|
1,640,440
|
1.86(e)
|
1.87(e)
|
1.76(e)
|
4.50(e)
|
1
|
|
Year
ended 07/31/19 |
8.14
|
0.35
|
(0.36)
|
(0.01)
|
(0.35)
|
7.78
|
(0.17)
|
1,734,118
|
1.85
|
1.85
|
1.75
|
4.37
|
25
|
|
Year
ended 07/31/18 |
8.16
|
0.31
|
(0.06)
|
0.25
|
(0.27)
|
8.14
|
3.18
|
2,497,209
|
1.86
|
1.87
|
1.74
|
3.78
|
66
|
|
| |||||||||||||
|
Class
R | |||||||||||||
|
Year
ended 08/31/22 |
7.10
|
0.34
|
(0.33)
|
0.01
|
(0.32)
|
6.79
|
0.14
|
55,615
|
1.29
|
1.29
|
1.25
|
4.80
|
68
|
|
Year
ended 08/31/21 |
6.61
|
0.30
|
0.48
|
0.78
|
(0.29)
|
7.10
|
12.07
|
60,060
|
1.32
|
1.35
|
1.25
|
4.31
|
86
|
|
Year
ended 08/31/20 |
7.62
|
0.31
|
(1.01)
|
(0.70)
|
(0.31)
|
6.61
|
(9.34)
|
59,212
|
1.38
|
1.41
|
1.27
|
4.34
|
53
|
|
One
month ended 08/31/19 |
7.76
|
0.03
|
(0.14)
|
(0.11)
|
(0.03)
|
7.62
|
(1.39)
|
87,586
|
1.36(e)
|
1.37(e)
|
1.26(e)
|
5.00(e)
|
1
|
|
Year
ended 07/31/19 |
8.13
|
0.39
|
(0.38)
|
0.01
|
(0.38)
|
7.76
|
0.20
|
91,419
|
1.35
|
1.35
|
1.25
|
4.87
|
25
|
|
Year
ended 07/31/18 |
8.14
|
0.35
|
(0.04)
|
0.31
|
(0.32)
|
8.13
|
3.82
|
88,230
|
1.36
|
1.37
|
1.24
|
4.29
|
66
|
|
| |||||||||||||
|
Class
Y | |||||||||||||
|
Year
ended 08/31/22 |
7.09
|
0.37
|
(0.33)
|
0.04
|
(0.35)
|
6.78
|
0.63
|
1,450,652
|
0.79
|
0.79
|
0.75
|
5.30
|
68
|
|
Year
ended 08/31/21 |
6.60
|
0.33
|
0.49
|
0.82
|
(0.33)
|
7.09
|
12.65
|
1,323,124
|
0.82
|
0.85
|
0.75
|
4.81
|
86
|
|
Year
ended 08/31/20 |
7.61
|
0.35
|
(1.02)
|
(0.67)
|
(0.34)
|
6.60
|
(8.90)
|
1,571,552
|
0.88
|
0.91
|
0.77
|
4.84
|
53
|
|
One
month ended 08/31/19 |
7.75
|
0.04
|
(0.14)
|
(0.10)
|
(0.04)
|
7.61
|
(1.35)
|
4,734,607
|
0.86(e)
|
0.87(e)
|
0.76(e)
|
5.50(e)
|
1
|
|
Year
ended 07/31/19 |
8.11
|
0.43
|
(0.37)
|
0.06
|
(0.42)
|
7.75
|
0.82
|
5,266,308
|
0.85
|
0.85
|
0.75
|
5.37
|
25
|
|
Year
ended 07/31/18 |
8.13
|
0.39
|
(0.05)
|
0.34
|
(0.36)
|
8.11
|
4.21
|
7,495,276
|
0.86
|
0.87
|
0.74
|
4.78
|
66
|
|
| |||||||||||||
|
Class
R5 | |||||||||||||
|
Year
ended 08/31/22 |
7.11
|
0.38
|
(0.33)
|
0.05
|
(0.36)
|
6.80
|
0.74
|
12
|
0.70
|
0.70
|
0.66
|
5.39
|
68
|
|
Year
ended 08/31/21 |
6.62
|
0.34
|
0.48
|
0.82
|
(0.33)
|
7.11
|
12.65
|
12
|
0.73
|
0.74
|
0.66
|
4.90
|
86
|
|
Year
ended 08/31/20 |
7.63
|
0.34
|
(1.00)
|
(0.66)
|
(0.35)
|
6.62
|
(8.80)
|
8
|
0.80
|
0.80
|
0.69
|
4.92
|
53
|
|
One
month ended 08/31/19 |
7.77
|
0.04
|
(0.14)
|
(0.10)
|
(0.04)
|
7.63
|
(1.34)
|
10
|
0.80(e)
|
0.82(e)
|
0.71(e)
|
5.55(e)
|
1
|
|
Period
ended 07/31/19(f)
|
7.87
|
0.08
|
(0.10)
|
(0.02)
|
(0.08)
|
7.77
|
(0.28)
|
10
|
0.77(e)
|
0.77(e)
|
0.67(e)
|
5.45(e)
|
25
|
|
| |||||||||||||
|
Class
R6 | |||||||||||||
|
Year
ended 08/31/22 |
7.08
|
0.37
|
(0.32)
|
0.05
|
(0.36)
|
6.77
|
0.72
|
245,252
|
0.70
|
0.70
|
0.66
|
5.39
|
68
|
|
Year
ended 08/31/21 |
6.60
|
0.34
|
0.47
|
0.81
|
(0.33)
|
7.08
|
12.60
|
196,230
|
0.69
|
0.74
|
0.62
|
4.94
|
86
|
|
Year
ended 08/31/20 |
7.61
|
0.36
|
(1.02)
|
(0.66)
|
(0.35)
|
6.60
|
(8.80)
|
194,825
|
0.77
|
0.79
|
0.66
|
4.95
|
53
|
|
One
month ended 08/31/19 |
7.75
|
0.04
|
(0.14)
|
(0.10)
|
(0.04)
|
7.61
|
(1.34)
|
997,162
|
0.75(e)
|
0.76(e)
|
0.65(e)
|
5.61(e)
|
1
|
|
Year
ended 07/31/19 |
8.11
|
0.43
|
(0.36)
|
0.07
|
(0.43)
|
7.75
|
0.93
|
1,056,032
|
0.74
|
0.74
|
0.64
|
5.48
|
25
|
|
Year
ended 07/31/18 |
8.13
|
0.40
|
(0.06)
|
0.34
|
(0.36)
|
8.11
|
4.31
|
1,373,036
|
0.77
|
0.78
|
0.65
|
4.88
|
66
|
|
| |||||||||||||
|
(a)
|
Calculated
using average shares outstanding. |
|
(b)
|
Assumes
an initial investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in
additional shares on the reinvestment date, and
redemption
at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns.
Total returns are not annualized for periods less than
one
full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund
shares. |
13 Invesco Senior
Floating Rate Fund
|
(c)
|
In
addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of
the underlying funds in which the Fund invests. Because
the
underlying funds have varied expenses and fee levels and the Fund may own different proportions at different times, the amount of fees
and expenses incurred indirectly by the Fund will vary.
Estimated
underlying fund expenses are not expenses that are incurred directly by the Fund. They are expenses that are incurred directly by the
underlying funds and are deducted from the value
of
the funds the Fund invests in. The effect of the estimated underlying fund expenses that the Fund bears indirectly is included in the
Fund’s total return. Estimated acquired fund fees from
underlying
funds were 1.12%, 1.10% and 1.13% for the one month ended August 31, 2019 and the years ended July 31, 2019 and 2018, respectively.
|
|
(d)
|
Portfolio
turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. For the year ended ended
August 31, 2021, the portfolio turnover calculation
excludes
the value of securities purchased of $42,745,724 in connection with the acquisition of Invesco Senior Floating Rate Plus Fund into the
Fund. |
|
(e)
|
Annualized.
|
|
(f)
|
Commencement
date after the close of business on May 24, 2019. |
14 Invesco Senior
Floating Rate 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 all of the Invesco Funds and their share classes that have different fees and expenses.
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 |
|
|
▪ 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) |
A-1 The
Invesco Funds
MCF—12/22
|
Share
Classes |
|
|
|
|
|
Class
A |
Class
C |
Class
R |
Class
Y |
Class
R5 and R6 |
|
|
▪ 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 International Core Equity 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 a specific
Fund may make additional purchases into Class AX and CX, respectively, of such specific Fund. All references in this “Shareholder
Account Information” section of this prospectus to Class A, C or R shares of the Invesco Funds shall include Class AX
(excluding Invesco Government Money Market Fund), or CX shares, respectively, of the Invesco Funds, unless otherwise noted. All references
in this “Shareholder Account Information” section of this prospectus to Invesco Cash Reserve Shares of Invesco Government
Money Market Fund shall include Class AX shares of Invesco Government Money Market Fund, unless otherwise noted.
Class P
Shares
In
addition to the other share classes discussed herein, the Invesco Summit Fund offers Class P shares, which were historically sold
only through the AIM Summit Investors Plans I and II (each a Plan and, collectively, the Summit Plans). Class P shares are sold with
no initial sales charge and have a 12b-1 fee of 0.10%. However, Class P shares are not sold to members of the general public. Only
shareholders who had accounts in the Summit Plans at the close of business on December 8, 2006 may purchase Class P shares and
only until the total of their combined investments in the Summit Plans and in Class P shares directly equals the face amount of their
former Plan under the 30 year extended investment option. The face amount of a Plan is the combined total of all scheduled monthly
investments under the Plan. For a Plan with a scheduled monthly investment of $100.00, the face amount would have been $36,000.00 under
the 30 year extended investment option.
Class R
Shares
Class R
shares are intended for 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 (except for the Invesco Master Loan Fund) are available for use by Employer Sponsored Retirement and Benefit
Plans, held either at the plan level or through omnibus accounts, that generally process no more than one net redemption and one net purchase
transaction each day.
Class
R5 and R6 shares of the Funds are also available to institutional investors.
Institutional investors are: banks, trust companies, collective trust funds, entities acting for the account of a public entity (e.g.,
Taft-Hartley funds, states, cities or government agencies), funds of funds or other pooled investment vehicles, 529 college savings plans,
financial intermediaries and corporations investing for their own accounts, endowments and foundations. For information regarding investment
minimums for Class R5 and R6 shares, please see “Minimum Investments” below.
Class
R6 shares of the Funds are also available through an intermediary that
has agreed with Invesco Distributors, Inc. to make such shares
A-2 The
Invesco Funds
available
for use in retail omnibus accounts that generally process no more than one net redemption and one net purchase transaction each day.
The
Invesco Master Loan Fund is only available for purchase by other Funds
in the Invesco fund family and other Invesco pooled investment vehicles.
Shareholders
eligible to purchase Class R6 Shares must meet the requirements
specified by their intermediary. Not all intermediaries offer Class R6 Shares to their customers.
Class S
Shares
Class S
shares are limited to investors who purchase shares with the proceeds received from a systematic contractual investment plan redemption
within the 12 months prior to purchasing Class S shares, and who purchase through an approved financial intermediary that has
an agreement with the distributor to sell Class S shares. Class S shares are not otherwise sold to members of the general public.
An investor purchasing Class S shares will not pay an initial sales charge. The investor will no longer be eligible to purchase additional
Class S shares at that point where the value of the contributions to the prior systematic contractual investment plan combined with
the subsequent Class S share contributions equals the face amount of what would have been the investor’s systematic contractual
investment plan under the 30-year investment option. The face amount of a systematic contractual investment plan is the combined total
of all scheduled monthly investments under that plan. For a plan with a scheduled monthly investment of $100.00, the face amount would
have been $36,000.00 under the 30-year extended investment option.
Class Y
Shares
Class
Y shares are available to (i) investors who purchase through an account that is charged an asset-based fee or commission by a financial
intermediary, including through brokerage platforms, where a broker is acting as the investor’s agent, that may require the payment
by the investor of a commission and/or other form of compensation to that broker, (ii) endowments, foundations, or Employer Sponsored
Retirement and Benefit Plans (with the exception of “Solo 401(k)” Plans and 403(b) custodial accounts held directly at Invesco),
(iii) banks or bank trust departments acting on their own behalf or as trustee or manager for trust accounts, or (iv) any current, former
or retired trustee, director, officer or employee (or immediate family members of a current, former or retired trustee, director, officer
or employee) of any Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
Subject
to any conditions or limitations imposed on the servicing of Class
Y shares by your financial adviser, if you received Class Y shares as a result of a merger or reorganization of a predecessor fund into
any of the Funds, you will be permitted to make additional Class Y share purchases. In addition, you will be permitted to make additional
Class Y shares purchases if you owned Class Y shares in a “Solo 401(k)” Plan or 403(b) custodial account held directly at
Invesco if you held such shares in your account on or prior to May 24, 2019.
Investor
Class Shares
Investor
Class shares are sold with no initial sales charge and have a maximum 12b-1 fee of 0.25%. Only the following persons may purchase Investor
Class shares:
◾
Investors
who established accounts prior to April 1, 2002, in Investor Class shares with Invesco Distributors, Inc. (Invesco Distributors) who have
continuously maintained an account in Investor Class shares (this includes anyone listed in the registration of an account, such as a
joint owner, trustee or custodian, and immediate family members of such persons) without a designated intermediary. These investors are
referred to as “Investor Class grandfathered investors.”
◾
Customers
of a financial intermediary that has had an agreement with the Funds’ distributor or any Funds that offered Investor Class shares
prior to April 1, 2002, that has continuously maintained such agreement. These intermediaries are referred to as “Investor
Class grandfathered intermediaries.”
◾
Any
current, former or retired trustee, director, officer or employee (or immediate family member of a current, former or retired trustee,
director, officer or employee) of any Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
For
additional shareholder eligibility requirements with respect to Invesco
Premier Portfolio, please see “Shareholder Account Information – Purchasing Shares and Shareholder Eligibility – Invesco
Premier Portfolio.”
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.
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 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
A-4 The
Invesco Funds
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.
Merrill
Lynch
Shareholders
purchasing Fund shares through a Merrill
Lynch platform
or account will be eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at Merrill Lynch
◾
Employer-sponsored
retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to fund those plans,
provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the plan;
◾
Shares
purchased by a 529 Plan (does not include 529 Plan unit or 529-specific share classes or equivalents);
◾
Shares
purchased through a Merrill Lynch affiliated investment advisory program;
◾
Shares
exchanged due to the holdings moving from a Merrill Lynch affiliated investment advisory program to a Merrill Lynch brokerage (non-advisory)
account pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers;
◾
Shares
purchased by third party investment advisors on behalf of their advisory clients through Merrill Lynch’s platform;
◾
Shares
of funds purchased through the Merrill Edge Self-Directed platform (if applicable);
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not
any other fund within the fund family);
◾
Shares
exchanged from Class C (i.e.
level-load) shares of the same fund pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers;
◾
Employees
and registered representatives of Merrill Lynch or its affiliates and their family members;
◾
Directors
or Trustees of the Fund, and employees of the Fund’s investment adviser or any of its affiliates, as described in this prospectus;
and
◾
Eligible
shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days
following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to
a front-end or deferred sales load (known as Rights of Reinstatement). Automated transactions (i.e. systematic purchases and withdrawals)
and purchases made after shares are automatically sold to pay Merrill Lynch’s account maintenance fees are not eligible for reinstatement.
◾
CDSC
Waivers on A and C Shares available at Merrill Lynch
◾
Death
or disability of the shareholder;
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund’s prospectus;
◾
Return
of excess contributions from an IRA Account;
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts pursuant to the Internal Revenue Code;
◾
Shares
sold to pay Merrill Lynch fees but only if the transaction is initiated by Merrill Lynch;
◾
Shares
acquired through a right of reinstatement;
◾
Shares
held in retirement brokerage accounts, that are converted to a lower cost share class due to transfer to a fee based account or platform
(applicable to A and C shares only); and
◾
Shares
received through an exchange due to the holdings moving from a Merrill Lynch affiliated investment advisory program to a Merrill Lynch
brokerage (non-advisory) account pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers.
◾
Front-end
load Discounts Available at Merrill Lynch: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this prospectus;
◾
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts as described in the Fund’s prospectus will be automatically
calculated based on the aggregated holding of fund family assets held by accounts (including 529 program holdings, where applicable) within
the purchaser’s household at Merrill Lynch. Eligible fund family assets not held at Merrill Lynch may be included in the ROA calculation
only if the shareholder notifies his or her financial advisor about such assets; and
◾
Letters
of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Merrill Lynch, over
a 13-month period of time (if applicable).
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).
A-5 The
Invesco Funds
Morgan
Stanley Wealth Management
Shareholders
purchasing Fund shares through a Morgan Stanley
Wealth Management transactional brokerage account will be eligible
only for the following front-end sales charge waivers with respect to Class A shares, which may differ from and may be more limited than
those disclosed elsewhere in this Fund’s Prospectus or SAI.
◾
Front-end
Sales Charge Waivers on Class A Shares available at Morgan Stanley Wealth Management
◾
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and
defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs, SAR-SEPs
or Keogh plans;
◾
Morgan
Stanley employee and employee-related accounts according to Morgan Stanley’s account linking rules;
◾
Shares
purchased through reinvestment of dividends and capital gains distributions when purchasing shares of the same fund;
◾
Shares
purchased through a Morgan Stanley self-directed brokerage account;
◾
Class
C (i.e., level-load) shares that are no longer subject to a contingent deferred sales charge and are converted to Class A shares of the
same fund pursuant to Morgan Stanley Wealth Management’s share class conversion program; and
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (i) the repurchase occurs within 90 days following the
redemption, (ii) the redemption and purchase occur in the same account, and (iii) redeemed shares were subject to a front-end or deferred
sales charge.
Raymond
James Financial Services, Inc.
Shareholders
purchasing Fund shares through a Raymond
James Financial Services, Inc., Raymond James affiliates and each
entity’s affiliates (Raymond James) platform or account, or through an introducing broker-dealer or independent registered investment
adviser for which Raymond James provides trade execution, clearance, and/or custody services, will be eligible only for the following
load waivers (front-end sales charge waivers and contingent deferred, or back-end, sales charge waivers) and discounts, which may differ
from those disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
sales load waivers on Class A shares available at Raymond James
◾
Shares
purchased in an investment advisory program.
◾
Shares
purchased within the same fund family through a systematic reinvestment of capital gains distributions and dividend distributions.
◾
Employees
and registered representatives of Raymond James or its affiliates and their family members as designated by Raymond James.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (known as Rights of Reinstatement).
◾
A
shareholder in the Fund’s Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate
share class) of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures
of Raymond James.
◾
CDSC
Waivers on Classes A and C shares available at Raymond James
◾
Death
or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the fund’s prospectus.
◾
Return
of excess contributions from an IRA Account.
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based
on applicable IRS regulations as described in the fund’s prospectus.
◾
Shares
sold to pay Raymond James fees but only if the transaction is initiated by Raymond James.
◾
Shares
acquired through a right of reinstatement.
◾
Front-end
load discounts available at Raymond James: breakpoints, rights of accumulation, and/or letters of intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of
fund family assets held by accounts within the purchaser’s household at Raymond James. Eligible fund family assets not held at Raymond
James may be included in the calculation of rights of accumulation only if the shareholder notifies his or her financial advisor about
such assets.
◾
Letters
of intent which allow for breakpoint discounts based on anticipated purchases within a fund family, over a 13-month time period. Eligible
fund family assets not held at Raymond James may be included in the calculation of letters of intent only if the shareholder notifies
his or her financial advisor about such assets.
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.
A-6 The
Invesco Funds
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.
◾
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.
Oppenheimer
& Co. Inc. (“OPCO”)
Shareholders
purchasing Fund shares through an OPCO
platform or account are eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund's prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at OPCO
◾
Employer-sponsored
retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to
fund
those plans, provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the
plan
◾
Shares
purchased by or through a 529 Plan
◾
Shares
purchased through an OPCO affiliated investment advisory program
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not
any other fund within the fund family)
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (known as Rights of Reinstatement).
◾
A
shareholder in the Fund's Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate share
class) of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures of OPCO
◾
Employees
and registered representatives of OPCO or its affiliates and their family members
◾
Directors
or Trustees of the Fund, and employees of the Fund's investment adviser or any of its affiliates, as described in this prospectus
◾
CDSC
Waivers on A and C Shares available at OPCO
◾
Death
or disability of the shareholder
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund's prospectus
◾
Return
of excess contributions from an IRA Account
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based
on applicable IRS regulations as described in the prospectus
◾
Shares
sold to pay OPCO fees but only if the transaction is initiated by OPCO Shares acquired through a right of reinstatement
◾
Front-end
load Discounts Available at OPCO: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding
of fund family assets held by accounts within the purchaser's household at OPCO. Eligible fund family assets not held at OPCO may be included
in the ROA calculation only if the shareholder notifies his or her financial advisor about such assets.
Robert
W. Baird & Co. Incorporated (“Baird”)
Shareholders
purchasing fund shares through a Baird
platform or account will only be eligible for the following sales charge waivers (front-end sales charge waivers and CDSC waivers) and
discounts, which may differ from those disclosed elsewhere in this prospectus or the SAI.
◾
Front-End
Sales Charge Waivers on Class A-shares Available at Baird
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund.
◾
Shares
purchased by employees and registered representatives of Baird or its affiliate and their family members as designated by Baird.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales charge (known as rights of reinstatement).
◾
A
shareholder in the Fund’s Class C Shares will have their shares converted at net asset value to Class A shares of the fund if the
shares are no longer subject to CDSC and the conversion is in line with the policies and procedures of Baird.
◾
Employer-sponsored
retirement plans or charitable accounts in a transactional brokerage account at Baird, including 401(k) plans, 457 plans, employer-sponsored
403(b) plans, profit sharing and money
A-7 The
Invesco Funds
purchase
pension plans and defined benefit plans. For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs,
Simple IRAs or SAR-SEPs.
◾
CDSC
Waivers on Classes A and C shares Available at Baird
◾
Shares
sold due to death or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund’s Prospectus.
◾
Return
of excess contributions from an IRA Account.
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching age 72 as described in
the Fund’s prospectus.
◾
Shares
sold to pay Baird fees but only if the transaction is initiated by Baird.
◾
Shares
acquired through a right of reinstatement.
◾
Front-End
Sales Charge Discounts Available at Baird: Breakpoints, Rights of Accumulation and/or letters of intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of
fund family assets held by accounts within the purchaser’s household at Baird. Eligible fund family assets not held at Baird may
be included in the rights of accumulation calculation only if the shareholder notifies his or her financial advisor about such assets.
◾
Letters
of Intent (LOI) allow for breakpoint discounts based on anticipated purchases of within a fund family through Baird, over a 13-month period
of time.
Edward
D. Jones & Co., L.P. (“Edward Jones”)
Policies
Regarding Transactions Through Edward Jones
The
following information has been provided by Edward Jones:
The
following information supersedes prior information with respect to transactions
and positions held in fund shares through an Edward Jones system. Shareholders purchasing Fund shares through the Edward
Jones commission
and fee-based platforms will be eligible for the following load waivers (front- end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund's prospectus or statement of additional
information (“SAI”). 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 (including holdings of 529 Plans where Invesco serves as primary distributor), 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.
◾
Front-end
sales load waivers on Class A shares available at Edward Jones
◾
Associates
of Edward Jones and its affiliates and their family members who are 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: 1) the proceeds are
from the sale of shares within 60 days of the purchase, and 2) the sale and purchase are made in the same share class and the same account
or the purchase is made in an individual retirement account with proceeds from liquidations in a non-retirement account.
◾
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.
◾
CDSC
Waivers on Classes A and C shares available at Edward Jones
◾
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
sold 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 the qualified age based on applicable IRS regulations.
◾
Shares
sold 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 Minimum Balances, as described below.
◾
Front-end
load discounts available at Edward Jones: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoint
pricing, otherwise known as volume pricing, at dollar thresholds as described in the prospectus.
◾
Rights
of Accumulation (“ROA”) which entitles the shareholder to the applicable sales charge on a purchase of Class A shares will
be determined by taking into account all share classes (except certain money market funds and any assets held in group retirement plans)
of Invesco Funds (including holdings of 529 Plans where Invesco serves as primary distributor) 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).
◾
Letters
of Intent (“LOI”) allow shareholders to receive 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.
Other
Important Information Regarding Transactions Through Edward
Jones
Minimum
Purchase Amounts
•
Initial
purchase minimum: $250
•
Subsequent
purchase minimum: none
A-8 The
Invesco Funds
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.
Stifel,
Nicolaus & Company (“Stifel”)
Shareholders
purchasing Fund shares through a Stifel
platform or account will be eligible only for the following front-end sales charge waivers and discounts, which may differ from those
disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at Stifel: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this 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 Stifel. Eligible
fund family assets not held at Stifel may be included in the ROA calculation only if the shareholder notifies his or her financial advisor
about such assets; and
◾
Letters
of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Stifel, over a 13-month
period of time (if applicable).
◾
Shares
converted from Class C (i.e. level-load) shares of the same fund pursuant to Stifel policies relating to sales load discounts and waivers.
PFS
Investments Inc. (“PFSI”)
Policies
Regarding Transactions Through PFSI
The
following information supersedes all prior information with respect to transactions and positions held in fund shares purchased through
PFSI and held on the mutual fund platform of its affiliate, Primerica Shareholder Services (“PSS”). Clients of PFSI (also
referred to as “shareholders”) purchasing fund shares on the PSS platform are eligible only for the following share classes,
sales charge discounts (also referred to as “breakpoints”) and waivers, which can differ from share classes, discounts and
waivers described elsewhere in this prospectus or the related statement of additional information (“SAI”) or through another
broker-dealer. In all instances, it is the shareholder’s responsibility to inform PFSI at the time of a purchase of all holdings
of Invesco Funds on the PSS platform, or other facts qualifying the purchaser for discounts or waivers. PFSI may request reasonable documentation
of such facts, and condition the granting of any discount or waiver on the timely receipt of such documents. Shareholders should contact
PSS if they have questions regarding their eligibility for these discounts and waivers.
Share
Classes
◾
Class
A shares: in non-retirement accounts, individual retirement accounts (IRA), SEP IRAs, SIMPLE IRAs, Keogh Plans, and all other account
types unless expressly provided for below.
◾
Class
C shares: only in accounts with existing Class C share holdings.
Breakpoints
◾
Breakpoint
pricing at dollar thresholds as described in the prospectus of the fund you are purchasing.
Rights
of Accumulation (“ROA”)
◾
The
applicable sales charge on a purchase of Class A shares is determined by taking into account all share classes (except any assets held
in group retirement plans) of Invesco Funds held by the shareholder on the PSS Platform. The inclusion of eligible fund family assets
in the ROA calculation is dependent on the shareholder notifying PFSI of such assets at the time of calculation. Shares of money market
funds are
included
only if such shares were acquired in exchange for shares of another Invesco Fund purchased with a sales charge. No shares of Invesco Funds
held by the shareholder away from the PSS platform will be granted ROA with shares of any Invesco Fund purchased on the PSS platform.
◾
Any
SEP IRA plan, any SIMPLE IRA plan or any Payroll Deduction plan (“PDP”) on the PSS platform will be defaulted to plan-level
grouping for purposes of ROA, which allows each participating employee ROA with all other eligible shares held in plan accounts on the
PSS platform. At any time, a participating employee may elect to exercise a one-time option to change grouping for purposes of ROA to
shareholder- level grouping, which allows the plan account of the electing employee ROA with her other eligible holdings on the PSS platform,
but not with all other eligible participant holdings in the plan. Eligible shares held in plan accounts electing shareholder-level grouping
will not be available for purposes of ROA to plan accounts electing plan-level grouping.
◾
ROA
is determined by calculating the higher of cost minus redemptions or current market value (current shares x NAV).
Letter
of Intent (“LOI”)
◾
By
executing a LOI, shareholders can receive the sales charge and breakpoint discounts for purchases shareholders intend to make over a 13-month
period through PFSI, from the date PSS receives the LOI. The purchase price of the LOI is determined by calculating the higher of cost
or market value of qualifying holdings at LOI initiation in combination with the dollar amount the shareholder intends to invest over
a 13-month period to arrive at total investment for purposes of determining any breakpoint discount and the applicable front-end sales
charge. Each purchase the shareholder makes during that 13-month period will receive the sales charge and breakpoint discount that applies
to the projected total investment.
◾
Only
holdings of Invesco Funds on the PSS platform are eligible for inclusion in the LOI calculation and the shareholder must notify PFSI of
all eligible assets at the time of calculation.
◾
Purchases
made before the LOI is received by PSS are not adjusted under the LOI, and the LOI will not reduce any sales charge previously paid. Sales
charges will be automatically adjusted if the total purchases required by the LOI are not met.
◾
If
an employer maintaining a SEP IRA plan, SIMPLE IRA plan or non-IRA PDP on the PSS platform has elected to establish or change ROA for
the accounts associated with the plan to a plan-level grouping, LOIs will also be at the plan-level and may only be established by the
employer. LOIs are not available to PDP IRA plans on the PSS platform with plan-level grouping for purposes of ROA, but are available
to any participating employee that elects shareholder-level grouping for purposes of ROA.
Sales
Charge Waivers
Sales
charges are waived for the following shareholders and in the following
situations:
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment.
◾
Shares
purchased with the proceeds of redeemed shares of the same fund family so long as the following conditions are met: 1) the proceeds are
from the sale of shares within 90 days of the purchase, 2) the sale and purchase are made in the same share class and the same account
or the purchase is made in an individual retirement account with proceeds from liquidations in a non-retirement account, and 3) the redeemed
shares were subject to a front-end or deferred sales load, Automated transactions (i.e. systematic purchases and withdrawals), full or
partial transfers or rollovers of retirement accounts, and purchases made after shares are automatically sold to pay account maintenance
fees are not eligible for this sales charge waiver.
◾
Shares
exchanged into Class A shares from another share class so long as the exchange is into the same fund and was initiated at the discretion
of PFSI. PFSI is responsible for any remaining CDSC due to the fund company, if applicable. Any future purchases are subject to the applicable
sales charge as disclosed in the prospectus.
Policies
Regarding Fund Purchases Through PFSI That Are Not Held
on the PSS Platform
A-9 The
Invesco Funds
◾
Class
R shares
are available through PFSI only in 401(k) plans covering a business owner with no employees, commonly referred to as a one-participant
401(k) plan or solo 401(k).
UBS
Financial Services Inc. (“UBS”)
Pursuant
to an agreement with the Distributor, UBS may offer Class Y
shares
to its retail brokerage clients whose shares are held in omnibus
accounts at UBS, or its designee. For these clients, UBS may charge commissions or transaction fees with respect to brokerage transactions
in Class Y shares. The
minimum investment for Class Y shares is waived for transactions through such brokerage platforms at UBS. Please contact your UBS representative
for more information about these fees and other eligibility requirements.
Qualifying
for Reduced Sales Charges and Sales Charge Exceptions
The
following types of accounts qualify for reduced sales charges or sales charge exceptions under ROAs and LOIs:
1.
an
individual account owner;
2.
immediate
family of the individual account owner (which includes the individual’s spouse or domestic partner; the individual’s children,
step-children or grandchildren; the spouse or domestic partner of the individual’s children, step-children or grandchildren; the
individual’s parents and step-parents; the parents or step-parents of the individual’s spouse or domestic partner; the individual’s
grandparents; and the individual’s siblings);
3.
a
Retirement and Benefit Plan so long as the plan is established exclusively for the benefit of an individual account owner; and
4.
a
Coverdell Education Savings Account (Coverdell ESA), maintained pursuant to Section 530 of the Code (in either case, the account
must be established by an individual account owner or have an individual account owner named as the beneficiary thereof).
Alternatively,
an Employer Sponsored Retirement and Benefit Plan (but not including
plans utilizing the Invesco 403(b)(7) Custodial Account program, or the individual custodial accounts thereunder) or Employer Sponsored
IRA may be eligible to purchase shares pursuant to a ROA at the plan level, and receive a reduced applicable initial sales charge for
a new purchase based on the total value of the current purchase and the value of other shares owned by the plan’s participants if:
a)
the
employer or plan sponsor submits all contributions for all participating employees in a single contribution transmittal (the Invesco Funds
will not accept separate contributions submitted with respect to individual participants);
b)
each
transmittal is accompanied by checks or wire transfers; and
c)
if
the Invesco Funds are expected to carry separate accounts in the names of each of the plan participants, (i) the employer or plan
sponsor notifies Invesco Distributors or its designee in writing that the separate accounts of all plan participants should be linked,
and (ii) all new participant accounts are established by submitting an appropriate Account Application on behalf of each new participant
with the contribution transmittal.
Participant
accounts in a retirement plan that are eligible to purchase shares
pursuant to a ROA at the plan level may not also be considered eligible to do so for the benefit of an individual account owner.
In
all instances, it is the purchaser’s responsibility to notify Invesco Distributors
or its designee of any relationship or other facts qualifying the purchaser as eligible for reduced sales charges and/or sales charge
exceptions and to provide all necessary documentation of such facts in order to qualify for reduced sales charges or sales charge exceptions.
For additional information on linking accounts to qualify for ROA or LOI, please see the Funds’ SAI.
Purchases
of Class A shares of Invesco Conservative Income Fund, Invesco
Government Money Market Fund and Invesco Short Term Municipal Fund, Class AX shares or Invesco Cash Reserve Shares of Invesco Government
Money Market Fund and Invesco U.S. Government Money Portfolio, as applicable, or Investor Class shares of any Fund will not be
taken
into account in determining whether a purchase qualifies for a reduction in initial sales charges pursuant to ROAs or LOIs.
Rights
of Accumulation
Purchasers
that qualify for ROA may combine new purchases of Class A shares of a Fund with shares of the Fund or other open-end Invesco Funds
currently owned (Class A, C, IB, IC, P, R, S or Y) for the purpose of qualifying for the lower initial sales charge rates that apply
to larger purchases. The applicable initial sales charge for the new purchase will be based on the total of your current purchase and
the value of other shares owned based on their current public offering price. The Funds’ transfer agent may automatically link certain
accounts registered in the same name with the same taxpayer identification number for the purpose of qualifying you for lower initial
sales charge rates.
Letters
of Intent
Under
a LOI, you commit to purchase a specified dollar amount of Class A shares of one or more Funds during a 13-month period. The amount
you agree to purchase determines the initial sales charge you pay. If the full amount committed to in the LOI is not invested by the end
of the 13-month period, your account will generally be assessed the higher initial sales charge that would normally be applicable to the
total amount actually invested. Shares equal in value to 5% of the intended purchase amount will be held in escrow for this purpose.
Reinstatement
Following Redemption
If
you redeem any class of shares of a Fund, you may reinvest all or a portion of the proceeds from the redemption (and may include that
amount necessary to acquire a fractional Share to round off his or her purchase to the next full Share) in the same share class of any
Fund within 180 days of the redemption without paying an initial sales charge. Class P, S, and Y redemptions may be reinvested into Class
A shares without an initial sales charge.
This
reinstatement privilege does not apply to a purchase made through a
regularly scheduled automatic investment plan, such as a purchase by a regularly scheduled payroll deduction or transfer from a bank account.
This
reinstatement privilege shall be suspended for the period of time in which
a purchase block is in place on a shareholder’s account. Please see “Purchase Blocking Policy” discussed below.
In
order to take advantage of this reinstatement privilege, you must inform
your financial adviser or the Funds’ transfer agent that you wish to do so at the time of your reinvestment.
Contingent
Deferred Sales Charges (CDSCs)
CDSCs
on Class A Shares and Invesco Cash Reserve Shares
Any
shares of a Large Purchase of Class A shares redeemed prior to 18 months after the date of purchase will be subject to a CDSC of 1% with
the exception of Class A shares of Invesco Conservative Income Fund and Invesco Short Term Municipal Fund which do not have CDSCs on redemptions.
If
Invesco Distributors pays a concession to a financial intermediary in connection
with a Large Purchase of Class A shares by an Employer Sponsored Retirement and Benefit Plan or SIMPLE IRA Plan, the Class A shares will
be subject to a 1% CDSC if all of the Employer Sponsored Retirement and Benefit Plan’s or SIMPLE IRA’s shares are redeemed
within one year from the date of initial purchase.
If
you acquire Invesco Cash Reserve Shares or Class A shares of Invesco
Government Money Market Fund or Invesco Cash Reserve Shares of Invesco U.S. Government Money Portfolio through an exchange involving Class
A shares that were subject to a CDSC, the shares acquired as a result of the exchange will continue to be subject to that same CDSC.
CDSCs
on Class C Shares
Class
C shares are subject to a CDSC; however, the CDSC shall not apply to the purchases of Class C shares where the selling broker-dealer was
not paid a commission at the time of purchase. If you redeem your shares during the first year since your purchase has been made you will
be
A-10 The
Invesco Funds
assessed
a CDSC as disclosed in the “Fees and Expenses - Shareholder Fees” table in the prospectus, unless you qualify for one of the
CDSC exceptions outlined below.
CDSCs
on Class C Shares – Employer Sponsored Retirement and Benefit Plans and Employer Sponsored IRAs
Class
C shares are subject to a 1.00% CDSC at the time of redemption if all of the Employer Sponsored Retirement and Benefit Plan’s or
Employer Sponsored IRA’s shares are redeemed within one year from the date of initial purchase.
CDSCs
on Class C Shares of Invesco Short Term Bond Fund
Effective
November 1, 2021, Class C shares of Invesco Short Term Bond Fund are subject to a CDSC. If you acquire Class C shares of any other Fund
as a result of an exchange involving Class C shares of Invesco Short Term Bond Fund that were not subject to a CDSC prior to November
1, 2021, then the shares acquired as a result of the exchange will not be subject to a CDSC.
Computing
a CDSC
The
CDSC on redemptions of shares is computed based on the lower of their original purchase price or current net asset value, net of reinvested
dividends and capital gains distributions. In determining whether to charge a CDSC, shares are accounted for on a first-in, first-out
basis, which means that you will redeem shares on which there is no CDSC first, and then shares in the order of their purchase.
CDSC
Exceptions
Investors
who own shares that are otherwise subject to a CDSC will not pay a CDSC in the following circumstances:
◾
If
you participate in the Systematic Redemption Plan and withdraw up to 12% of the value of your shares that are subject to a CDSC in any
twelve-month period.
◾
If
you redeem shares to pay account fees.
◾
If
you are the executor, administrator or beneficiary of an estate or are otherwise entitled to assets remaining in an account following
the death or post-purchase disability of a shareholder or beneficial owner and you choose to redeem those shares.
There
are other circumstances under which you may be able to redeem shares
without paying CDSCs. For additional information about such circumstances, please see the Appendix entitled “Purchase, Redemption
and Pricing of Shares” in each Fund’s SAI.
Shares
acquired through the reinvestment of dividends and distributions are
not subject to CDSCs.
The
following share classes are sold without a CDSC:
◾
Class
A2 shares of Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund
◾
Class
A shares of Invesco Government Money Market Fund
◾
Invesco
Cash Reserve Shares of Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio
◾
Investor
Class shares of any Fund
◾
Class
P shares of Invesco Summit Fund
◾
Class
R5 and R6 shares of any Fund
◾
Class
R shares of any Fund
◾
Class
S shares of Invesco Charter Fund, Invesco Select Risk: Moderately Conservative Investor Fund, Invesco Select Risk: Growth Investor Fund,
Invesco Select Risk: Moderate Investor Fund and Invesco Summit Fund
◾
Class
Y shares of any Fund
Purchasing
Shares and Shareholder Eligibility
Invesco
Premier U.S. Government Money Portfolio
For
Invesco Premier U.S. Government Money Portfolio, you may purchase shares using one of the options below. Unless the Fund closes early
on a business day, the Fund’s transfer agent will generally accept any purchase order placed until 5:00 p.m. Eastern Time on a business
day and may accept a purchase order placed until 5:30 p.m. Eastern Time on a business
day.
If you wish to place an order between 5:00 p.m. and 5:30 p.m. Eastern Time on a business day, you must place such order by telephone;
however, the Fund’s transfer agent reserves the right to reject or limit the amount of orders placed during this time. If the Fund
closes early on a business day, the Fund’s transfer agent must receive your purchase order prior to such closing time. Purchase
orders will not be processed unless the account application and purchase payment are received in good order. In accordance with the USA
PATRIOT Act, if you fail to provide all the required information requested in the current account application, your purchase order will
not be processed. Additionally, federal law requires that the Fund verifies and records your identifying information.
Invesco
Premier Portfolio
Only
accounts beneficially owned by natural persons will be permitted to retain their shares. The Fund has implemented policies and procedures
reasonably designed to limit all beneficial owners of the Fund to natural persons, and investments in the Fund are limited to accounts
beneficially owned by natural persons. Natural persons may invest in the Fund through certain tax-advantaged savings accounts, trusts
and other retirement and investment accounts, which may include, among others: participant-directed defined contribution plans; individual
retirement accounts; simplified employee pension arrangements; simple retirement accounts; custodial accounts; deferred compensation plans
for government or tax-exempt organization employees; Archer medical savings accounts; college savings plans; health savings account plans;
ordinary trusts and estates of natural persons; or certain other retirement and investment accounts with ultimate investment authority
held by the natural person beneficial owner, notwithstanding having an institutional decision maker making day-to-day decisions (e.g.,
a plan sponsor in certain retirement arrangements or an investment adviser managing discretionary investment accounts).
Further,
financial intermediaries may only submit purchase orders if they have
implemented policies and procedures reasonably designed to limit all investors on behalf of whom they submit orders to accounts beneficially
owned by natural persons. Financial intermediaries may be required to provide a written statement or other representation that they have
in place, and operate in compliance with, such policies and procedures prior to submitting purchase orders. Such policies and procedures
may include provisions for the financial intermediary to promptly report to the Fund or the transfer agent the identification of any shareholder
of the Fund that does not qualify as a natural person of whom they are aware and promptly take steps to redeem any such shareholder’s
shares of the Fund upon request by the Fund or the transfer agent, in such manner as it may reasonably request. The Fund may involuntarily
redeem any such shareholder who does not voluntarily redeem their shares.
Natural
persons may purchase shares using one of the options below. For
all classes of the Fund, other than Investor Class shares, unless the Fund closes early on a business day, the Fund’s transfer agent
will generally accept any purchase order placed until 5:00 p.m. Eastern Time on a business day and may accept a purchase order placed
until 5:30 p.m. Eastern Time on a business day. If you wish to place an order between 5:00 p.m. and 5:30 p.m. Eastern Time on a business
day, you must place such order by telephone; or send your request by a pre-arranged Liquidity Link data transmission however, the Fund’s
transfer agent reserves the right to reject or limit the amount of orders placed during this time. For Investor Class shares of the Fund,
unless the Fund closes early on a business day, the Fund’s transfer agent will generally accept any purchase order placed until
4:00 p.m. Eastern Time on a business day and may accept a purchase order placed until 4:30 p.m. Eastern Time on a business day. If you
wish to place an order between 4:00 p.m. and 4:30 p.m. Eastern Time on a business day, you must place such order by telephone; however,
the Fund’s transfer agent reserves the right to reject or limit the amount of orders placed during this time. If the Fund closes
early on a business day, the Fund’s transfer agent must receive your purchase order prior to such closing time. Purchase orders
will not be processed unless the account application and purchase payment are received in good order. In accordance with the USA PATRIOT
Act, if you fail to provide all the required information requested in the current account application, your purchase order will not be
A-11 The
Invesco Funds
processed.
Additionally, federal law requires that the Fund verify and record your identifying information.
Minimum Investments
There
are no minimum investments for Class P or S shares for fund accounts. The minimum investments for Class A, C, R, Y, Investor Class and
Invesco Cash Reserve shares for fund accounts are as follows:
|
Type
of Account |
Initial
Investment
Per
Fund |
Additional
Investments
Per
Fund |
|
Asset
or fee-based accounts managed by your financial
adviser
|
None
|
None
|
|
| ||
|
Employer
Sponsored Retirement and Benefit Plans and
Employer
Sponsored IRAs |
None
|
None
|
|
| ||
|
IRAs
and Coverdell ESAs if the new investor is
purchasing
shares through a systematic purchase plan |
$25
|
$25
|
|
| ||
|
All
other accounts if the investor is purchasing shares
through
a systematic purchase plan |
50
|
50
|
|
| ||
|
IRAs
and Coverdell ESAs |
250
|
25
|
|
| ||
|
All
other accounts |
1,000
|
50
|
|
| ||
Invesco
Distributors or its designee has the discretion to accept orders on behalf of clients for lesser amounts.
The
minimum investments for Class R5 and R6 shares are as follows:
There
is no minimum initial investment for an Employer Sponsored Retirement
and Benefit Plan investing through a retirement platform that administers at least $2.5 billion in retirement plan assets. All other Employer
Sponsored Retirement and Benefit Plans must meet a minimum initial investment of at least $1 million in each Fund in which it invests.
The
minimum initial investment in each share class for all other institutional
investors is $1 million, unless such investment is made by (i) an investment company, as defined under the 1940 Act, as amended, that
is part of a family of investment companies which own in the aggregate at least $100 million in securities, or (ii) an account established
with a 529 college savings plan managed by Invesco, in which case there is no minimum initial investment.
There
are no minimum investment amounts for Class R6 shares held through
retail omnibus accounts where the intermediary:
◾
generally
charges an asset-based fee or commission in addition to those described in this prospectus; and
◾
maintains
Class R6 shares and makes them available to retail investors.
A
financial intermediary may impose different investment minimums than
those set forth above. The Fund is not responsible for any investment minimums imposed by financial intermediaries or for notifying shareholders
of any changes to them. See “Waivers Available Through Certain Financial Intermediaries and Other Financial Intermediary-Specific
Arrangements” for more information on certain intermediary-specific investment minimums. Please consult with your financial intermediary
if you have any questions regarding their policies.
How
to Purchase Shares*
|
|
Opening
An Account |
Adding
To An Account |
|
Through
a
Financial
Adviser
or
Financial
Intermediary*
|
Contact
your financial adviser or
financial
intermediary. |
Contact
your financial adviser or
financial
intermediary. |
|
By
Mail |
Mail
completed account application
and
check to the Funds’ transfer
agent,
Invesco
Investment Services, Inc.
P.O.
Box 219078,
Kansas
City, MO 64121-9078.
The
Funds’ transfer agent does NOT
accept
the following types of
payments:
Credit Card Checks,
Temporary/Starter
Checks, Third
Party
Checks, and Cash. |
Mail
your check and the remittance
slip
from your confirmation
statement
to the Funds’ transfer
agent.
The Funds’ transfer agent
does
NOT accept the following
types
of payments: Credit Card
Checks,
Temporary/Starter Checks,
Third
Party Checks, and Cash. |
|
|
Opening
An Account |
Adding
To An Account |
|
By
Wire* |
Mail
completed account application
to
the Funds’ transfer agent. Call
the
Funds’ transfer agent at (800)
959-4246
to receive a reference
number.
Then, use the wire
instructions
provided below. |
Call
the Funds’ transfer agent to
receive
a reference number. Then,
use
the wire instructions provided
below.
|
|
Wire
Instructions |
Beneficiary
Bank ABA/Routing #: 011001234
Beneficiary
Account Number: 729639
Beneficiary
Account Name: Invesco Investment Services, Inc.
RFB:
Fund Name, Reference #
OBI:
Your Name, Account # | |
|
By
Telephone* |
Open
your account using one of the
methods
described above. |
The
Bank Account Information
option
on your completed account
application
or complete a
Systematic
Options and Bank
Information
Form. Mail the
application
or form to the Funds’
transfer
agent. Once the Funds’
transfer
agent has received the
form,
call the Funds’ transfer agent
at
the number below to place your
purchase
order. For Class R5 and
R6
shares, call the Funds’ transfer
agent
at (800) 959-4246 and wire
payment
for your purchase order in
accordance
with the wire
instructions
listed above. |
|
Automated
Investor
Line |
Open
your account using one of the
methods
described above. |
Call
the Funds’ transfer agent’s
24-hour
Automated Investor Line at
1-800-246-5463.
You may place
your
order after you have provided
the
bank instructions that will be
requested.
|
|
By
Internet |
Open
your account using one of the
methods
described above. |
Access
your account at
www.invesco.com/us.
The proper
bank
instructions must have been
provided
on your account. You may
not
purchase shares in Retirement
and
Benefit Plans on the internet. |
|
*Class
R5 and R6 shares may only be purchased through a financial intermediary or by
telephone
at (800) 959-4246. | ||
Non-retirement
retail investors, including high net worth investors investing
directly or through a financial intermediary, are not eligible for Class R5 shares. IRAs and Employer Sponsored IRAs are also not eligible
for Class R5 shares. If you hold your shares through a financial intermediary, the terms by which you purchase, redeem and exchange shares
may differ than the terms in this prospectus depending upon the policies and procedures of your financial intermediary.
Purchase
orders will not be processed unless the account application and
purchase payment are received in good order. In accordance with the USA PATRIOT Act, if you fail to provide all the required information
requested in the current account application, your purchase order will not be processed. Additionally, federal law requires that the Funds
verify and record your identifying information.
Systematic
Purchase Plan (Available for all classes except Class R5 and R6 shares)
You
can arrange for periodic investments in any of the Funds by authorizing the Funds’ transfer agent to withdraw the amount of your
investment from your bank account on a day or dates you specify and in an amount of at least $25 per Fund for IRAs and Coverdell ESAs,
and at least $50 per Fund for all other types of accounts (a Systematic Purchase Plan). You may stop the Systematic Purchase Plan at any
time by giving the Funds’ transfer agent notice ten days prior to your next scheduled withdrawal. Certain financial advisers and
other financial intermediaries may also offer systematic purchase plans.
A-12 The
Invesco Funds
Dollar
Cost Averaging (Available for all classes except Class R5 and R6 shares)
Dollar
Cost Averaging allows you to make automatic periodic exchanges, if permitted, from one Fund to another Fund or multiple other Funds. The
account from which exchanges are to be made must have a minimum balance of $5,000 before you can use this option. Exchanges will occur
on (or about) the day of the month you specify, in the amount you specify. Dollar Cost Averaging cannot be set up for the 29th through
the 31st of the month. The minimum amount you can exchange to another Fund is $50. Your financial intermediary may offer alternative dollar
cost averaging programs with different requirements.
Automatic
Dividend and Distribution Investment
Your
dividends and distributions may be paid in cash or reinvested in the same Fund or another Fund without paying an initial sales charge.
Unless
you specify otherwise, your dividends and distributions will automatically
be reinvested in the same Fund. You must comply with the following requirements to be eligible to invest your dividends and distributions
in shares of another Fund:
◾
Your
account balance in the Fund paying the dividend or distribution must be at least $5,000; and
◾
Your
account balance in the Fund receiving the dividend or distribution must be at least $500.
If
you elect to receive your distributions by check, and the distribution amount
is $25 or less, then the amount will be automatically reinvested in the same Fund and no check will be issued. If you have elected to
receive distributions by check, and the postal service is unable to deliver checks to your address of record, then your distribution election
may be converted to having all subsequent distributions reinvested in the same Fund and no checks will be issued. With respect to certain
account types, if your check remains uncashed for six months, the Fund generally reserves the right to reinvest your distribution check
in your account at the then applicable NAV and to reinvest all subsequent distributions in shares of the Fund. Such checks will be reinvested
into the same share class of the Fund. You should contact the Funds’ transfer agent to change your distribution option, and your
request to do so must be received by the Funds’ transfer agent before the record date for a distribution in order to be effective
for that distribution. No interest will accrue on amounts represented by uncashed distribution checks.
Redeeming
Shares*
The
Funds’ transfer agent or authorized intermediary, if applicable, must receive your call before the Funds’ net asset value
determination (as defined by the applicable Fund) in order to effect the redemption at that day’s net asset value.
Your
broker or financial intermediary may charge service fees for handling
redemption transactions.
|
How
to Redeem Shares | |
|
Through
a Financial
Adviser
or Financial
Intermediary*
|
Contact
your financial adviser or financial intermediary. The Funds’
transfer
agent must receive your financial adviser’s or financial
intermediary’s
call before the Funds’ net asset value determination
(as
defined by the applicable Fund) in order to effect the redemption
at
that day’s net asset value. Please contact your financial adviser or
financial
intermediary with respect to reporting of cost basis and
available
elections for your account. |
|
By
Mail |
Send
a written request to the Funds’ transfer agent which includes: |
|
|
▪ Original
signatures of all registered owners/trustees;
▪ The
dollar value or number of shares that you wish to redeem;
▪ The
name of the Fund(s) and your account number;
▪ The
cost basis method or specific shares you wish to redeem for
tax
reporting purposes, if different than the method already on
record;
and |
|
|
▪ Signature
guarantees, if necessary (see below).
The
Funds’ transfer agent may require that you provide additional
documentation,
or information, such as corporate resolutions or
powers
of attorney, if applicable. If you are redeeming from a
Retirement
and Benefit Plan, you must complete the appropriate
distribution
form. |
|
How
to Redeem Shares | |
|
By
Telephone* |
Call
the Funds’ transfer agent at 1-800-959-4246. You will be
allowed
to redeem by telephone if:
▪ Your
redemption proceeds are to be mailed to your address on
record
(and there has been no change in your address of record
within
the last 15 days) or transferred electronically to a
pre-authorized
checking account;
▪ You
can provide proper identification information;
▪ Your
redemption proceeds do not exceed $250,000 per Fund; and
▪ You
have not previously declined the telephone redemption
privilege.
|
|
|
You
may, in limited circumstances, initiate a redemption from an
Invesco
IRA by telephone. Redemptions from Employer Sponsored
Retirement
and Benefit Plans and Employer Sponsored IRAs may be
initiated
only in writing and require the completion of the appropriate
distribution
form, as well as employer authorization. You must call the
Funds’
transfer agent before the Funds’ net asset value
determination
(as defined by the applicable Fund) in order to effect
the
redemption at that day’s net asset value. |
|
Automated
Investor Line |
Call
the Funds’ transfer agent’s 24-hour Automated Investor Line at
1-800-246-5463.
You may place your redemption order after you
have
provided the bank instructions that will be requested. |
|
By
Internet |
Place
your redemption request at www.invesco.com/us. You will be
allowed
to redeem by Internet if:
▪ You
can provide proper identification information;
▪ Your
redemption proceeds do not exceed $250,000 per Fund; and
▪ You
have already provided proper bank information.
Redemptions
from Employer Sponsored Retirement and Benefit
Plans
and Employer Sponsored IRAs may be initiated only in writing
and
require the completion of the appropriate distribution form, as
well
as employer authorization. |
|
*Class
R5 and R6 shares may only be redeemed through a financial intermediary or by
telephone
at (800) 959-4246. | |
Timing
and Method of Payment
The
Funds’ transfer agent typically expects to pay redemption proceeds to redeeming shareholders within one business day after a redemption
request is received in good order, regardless of the method a Fund uses to make such payment. However, a Fund may take up to seven days
to process a redemption request. “Good order” means that all necessary information and documentation related to the redemption
request have been provided to the Funds’ transfer agent or authorized intermediary, if applicable. If your request is not in good
order, the Funds’ transfer agent may require additional documentation in order to redeem your shares. If you redeem shares recently
purchased by check or ACH, you may be required to wait up to ten calendar days before your redemption proceeds are sent. This delay is
necessary to ensure that the purchase has cleared. You can avoid the check hold period if you pay for your shares with a certified check,
a cashier’s check or a federal wire. Payment may be postponed under unusual circumstances, as allowed by the SEC, such as when the
NYSE restricts or suspends trading.
In
addition, a temporary hold may be placed on the disbursement of redemption
proceeds from an account if there is a reasonable belief that financial exploitation of a Specified Adult (as defined below) has occurred,
is occurring, has been attempted, or will be attempted. Notice of such a delay will be provided in accordance with regulatory requirements.
This temporary hold will be for an initial period of no more than 15 business days while an internal review is performed. Should the internal
review support the belief that financial exploitation has occurred, is occurring, has been attempted or will be attempted, the temporary
hold may be extended for up to 10 additional business days. Both the initial and subsequent hold on the disbursement may be terminated
or extended by a state regulator or an agency or court of competent jurisdiction. For purposes of this paragraph, the term “Specified
Adult” refers to an individual who is (a) a natural person age 65 and older, or (b) a natural person age 18 and older who is reasonably
believed to have a mental or physical impairment that renders the individual unable to protect his or her own interests.
If
you redeem by telephone, the Funds’ transfer agent will transmit the amount
of redemption proceeds electronically to your pre-authorized bank account. Redemption checks are mailed to your address of record, via
first
A-13 The
Invesco Funds
class
U.S. mail, unless you make other arrangements with the Funds’ transfer agent.
The
Funds’ transfer agent uses reasonable procedures to confirm that instructions
communicated via telephone and the Internet are genuine, and the Funds and the Funds’ transfer agent are not liable for losses arising
from actions taken in accordance with instructions that are reasonably believed to be genuine.
A
Fund typically expects to use holdings of cash and cash equivalents and
sales of portfolio assets to meet redemption requests, both regularly and in stressed market conditions. The Funds also have the ability
to redeem in kind as further described below under “Redemptions in Kind.” Certain Funds have a line of credit,
as disclosed in such Funds’ principal investment strategy
and risk disclosures that may be used to meet redemptions in stressed market conditions.
Expedited
Redemptions (for Invesco Cash Reserve Shares of Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio only)
If
you place your redemption order by telephone, before 11:30 a.m. Eastern Time and request an expedited redemption, the Funds’ transfer
agent will transmit payment of redemption proceeds on that same day via federal wire to a bank of record on your account. If the Funds’
transfer agent receives your redemption order after 11:30 a.m. Eastern Time and before the close of the customary trading session of the
NYSE, it will transmit payment on the next business day.
Suspension
of Redemptions
The
right of redemption may be suspended or the date of payment postponed when (a) trading on the NYSE is restricted, as determined by applicable
rules and regulations of the SEC, (b) the NYSE is closed for other than customary weekend and holiday closings, (c) the SEC has by order
permitted such suspension, or (d) an emergency as determined by the SEC exists making disposition of portfolio securities or the valuation
of the net assets of the Fund not reasonably practicable. With respect to Invesco Government Money Market Fund, Invesco U.S. Government
Money Portfolio, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio, in the event that the Fund, at the end
of a business day, has invested less than 10% of its total assets in weekly liquid assets or, with respect to the retail and government
money market funds, the Fund’s price per share as computed for the purpose of distribution, redemption and repurchase, rounded to
the nearest 1%, has deviated from the stable price established by the Fund’s Board of Trustees (“Board”) or the Board,
including a majority of trustees who are not interested persons as defined in the 1940 Act, determines that such a deviation is likely
to occur, and the Board, including a majority of trustees who are not interested persons of the Fund, irrevocably has approved the liquidation
of the Fund, the Fund’s Board has the authority to suspend redemptions of Fund shares.
Liquidity
Fees and Redemption Gates
For
Invesco Premier Portfolio, if the Fund’s weekly liquid assets fall below 30% of its total assets, the Board, in its discretion,
may impose liquidity fees of up to 2% of the value of the shares redeemed and/or suspend redemptions (redemption gates). In addition,
if any such Fund’s weekly liquid assets falls below 10% of its total assets at the end of any business day, the Fund must impose
a 1% liquidity fee on shareholder redemptions unless the Board determines that not doing so is in the best interests of the Fund.
Liquidity
fees and redemption gates are most likely to be imposed, if at all,
during times of extraordinary market stress. In the event that a liquidity fee or redemption gate is imposed, the Board expects that for
the duration of its implementation and the day after which such gate or fee is terminated, the Fund would strike only one net asset value
per day, at the Fund’s last scheduled net asset value calculation time.
The
imposition and termination of a liquidity fee or redemption gate will be
reported by a Fund to the SEC on Form N-CR. Such information will also be available on the Fund’s website. In addition, a Fund will
communicate such action through a supplement to its registration statement and may further communicate such action through a press release
or by other means. If a liquidity fee is applied by the Board, it will be charged on all
redemption
orders submitted after the effective time of the imposition of the fee by the Board. Liquidity fees would reduce the amount you receive
upon redemption of your shares. In the event a Fund imposes a redemption gate, the Fund or any financial intermediary on its behalf will
not accept redemption requests until the Fund provides notice that the redemption gate has been terminated.
Redemption
requests submitted while a redemption gate is imposed will be cancelled
without further notice. If shareholders still wish to redeem their shares after a redemption gate has been lifted, they will need to submit
a new redemption request.
Liquidity
fees and redemption gates will generally be used to assist a Fund
to help preserve its market–based NAV per share. It is possible that a liquidity fee will be returned to shareholders in the form
of a distribution. The Board may, in its discretion, terminate a liquidity fee or redemption gate at any time if it believes such action
to be in the best interest of a Fund. Also, liquidity fees and redemption gates will automatically terminate at the beginning of the next
business day once a Fund’s weekly liquid assets reach at least 30% of its total assets. Redemption gates may only last up to 10
business days in any 90-day period. When a fee or a gate is in place, the Fund may elect not to permit the purchase of shares or to subject
the purchase of shares to certain conditions, which may include affirmation of the purchaser’s knowledge that a fee or a gate is
in effect. When a fee or a gate is in place, shareholders will not be permitted to exchange into or out of a Fund.
There
is some degree of uncertainty with respect to the tax treatment of liquidity
fees received by a Fund, and such tax treatment may be the subject to future IRS guidance. If a Fund receives liquidity fees, it will
consider the appropriate tax treatment of such fees to the Fund at such time.
Financial
intermediaries are required to promptly take the steps requested
by the Funds or their designees to impose or help to implement a liquidity fee or redemption gate as requested from time to time, including
the rejection of orders due to the imposition of a fee or gate or the prompt re-confirmation of orders following a notification regarding
the implementation of a fee or gate. If a liquidity fee is imposed, these steps are expected to include the submission of separate, rather
than combined, purchase and redemption orders from the time of the effectiveness of the liquidity fee or redemption gate and the submission
of such order information to the Fund or its designee prior to the next calculation of a Fund’s net asset value. Unless otherwise
agreed to between a Fund and financial intermediary, the Fund will withhold liquidity fees on behalf of financial intermediaries. With
regard to such orders, a redemption request that a Fund determines in its sole discretion has been received in good order by the Fund
or its designated agent prior to the imposition of a liquidity fee or redemption gate may be paid by the Fund despite the imposition of
a redemption gate or without the deduction of a liquidity fee. If a liquidity fee is imposed during the day, an intermediary who receives
both purchase and redemption orders from a single account holder is not required to net the purchase and redemption orders. However, the
intermediary is permitted to apply the liquidity fee to the net amount of redemptions (even if the purchase order was received prior to
the time the liquidity fee was imposed).
Where
a Financial Intermediary serves as a Fund’s agent for the purpose
of receiving orders, trades that are not transmitted to the Fund by the Financial Intermediary before the time required by the Fund or
the transfer agent may, in the Fund’s discretion, be processed on an as-of basis, and any cost or loss to the Fund or transfer agent
or their affiliates, from such transactions shall be borne exclusively by the Financial Intermediary.
Systematic
Withdrawals (Available for all classes except Class R5 and R6 shares)
You
may arrange for regular periodic withdrawals from your account in amounts equal to or greater than $50 per Fund. The Funds’ transfer
agent will redeem the appropriate number of shares from your account to provide redemption proceeds in the amount requested. You must
have a total account balance of at least $5,000 in order to establish a Systematic Redemption Plan, unless you are establishing a Required
Minimum
A-14 The
Invesco Funds
Distribution
for a Retirement and Benefit Plan. You can stop this plan at any time by giving ten days’ prior notice to the Funds’ transfer
agent.
Check
Writing
The
Funds’ transfer agent provides check writing privileges for accounts in the following Funds and share classes:
◾
Invesco
Government Money Market Fund, Invesco Cash Reserve Shares, Class AX shares, Class Y shares and Investor Class shares
◾
Invesco
U.S. Government Money Portfolio, Invesco Cash Reserve Shares and Class Y shares
◾
Invesco
Premier Portfolio, Investor Class shares
◾
Invesco
Premier U.S. Government Money Portfolio, Investor Class shares
You
may redeem shares of these Funds by writing checks in amounts of $250
or more if you have subscribed to the service by completing a Check Writing authorization form.
Check
writing privileges are not available for Retirement and Benefit Plans.
Checks are not eligible to be converted to ACH by the payee. You may not give authorization to a payee by phone to debit your account
by ACH for a debt owed to the payee.
If
you do not have a sufficient number of shares in your account to cover
the amount of the check and any applicable deferred sales charge, the check will be returned and no shares will be redeemed. Because it
is not possible to determine your account’s value in advance, you should not write a check for the entire value of your account
or try to close your account by writing a check.
A
check writing redemption request which is verifiably submitted to a Fund’s
agent before a liquidity fee or redemption gate is imposed will be considered a valid redemption and will be processed normally.
Signature
Guarantees
The
Funds’ transfer agent requires a signature guarantee in the following circumstances:
◾
When
your redemption proceeds exceed $250,000 per Fund.
◾
When
you request that redemption proceeds be paid to someone other than the registered owner of the account.
◾
When
you request that redemption proceeds be sent somewhere other than the address of record or bank of record on the account.
◾
When
you request that redemption proceeds be sent to a new address or an address that changed in the last 15 days.
The
Funds’ transfer agent will accept a guarantee of your signature by a number
of different types of financial institutions. Call the Funds’ transfer agent for additional information. Some institutions have
transaction amount maximums for these guarantees. Please check with the guarantor institution to determine whether the signature guarantee
offered will be sufficient to cover the value of your transaction request.
Redemptions
in Kind
Although
the Funds generally intend to pay redemption proceeds solely in cash, the Funds reserve the right to determine, in their sole discretion,
whether to satisfy redemption requests by making payment in securities or other property (known as a redemption in kind). Redemptions
in kind may result in transaction costs and/or market fluctuations associated with liquidating or holding the securities, respectively.
Purchases-in-Kind
You
may purchase shares of a Fund by transferring securities to a Fund in exchange for Fund shares (“in-kind purchases”). In-kind
purchases may be made only upon the Funds’ approval and determination that the securities are acceptable investments for the Fund
and are purchased consistent with the Fund’s procedures relating to in-kind purchases. The Funds reserve the right to amend or terminate
this practice at any time. You must call the Funds at (800) 959-4246 before sending any securities. Please see the SAI for additional
details.
Redemptions
by Large Shareholders
At
times, the Fund may experience adverse effects when certain large shareholders redeem large amounts of shares of the Fund. Large redemptions
may cause the Fund to sell portfolio securities at times when it would not otherwise do so. In addition, these transactions may also
accelerate
the realization of taxable income to shareholders (if applicable) if such sales of investments resulted in gains and may also increase
transaction costs and/or increase in the Fund’s expense ratio. When experiencing a redemption by a large shareholder, the Fund may
delay payment of the redemption request up to seven days to provide the investment manager with time to determine if the Fund can redeem
the request-in-kind or to consider other alternatives to lessen the harm to remaining shareholders. Under certain circumstances, however,
the Fund may be unable to delay a redemption request, which could result in the automatic processing of a large redemption that is detrimental
to the Fund and its remaining shareholders.
Redemptions
Initiated by the Funds
If
your account (Class A, C, P, S and Investor Class shares only) has been open at least one year, you have not made an additional purchase
in the account during the past six calendar months, and the value of your account falls below $500 for three consecutive months, the Funds
have the right to redeem the account after giving you 60 days’ prior written notice. You may avoid having your account redeemed
during the notice period by bringing the account value up to $500 or by initiating a Systematic Purchase Plan.
A
financial intermediary may have a different policy regarding redemptions
of accounts with small balances. The Fund is not responsible for any small account balance policies imposed by financial intermediaries
or for notifying shareholders of any changes to them. See “Waivers Available Through Certain Financial Intermediaries and Other
Financial Intermediary-Specific Arrangements” for more information on certain intermediary-specific small account balance policies.
Please consult with your financial intermediary if you have any questions regarding their policies.
If
a Fund determines that you have not provided a correct Social Security
or other tax identification number on your account application, or the Fund is not able to verify your identity as required by law, the
Fund may, at its discretion, redeem the account and distribute the proceeds to you.
In
order to separate retail investors (natural persons) and non-retail investors,
the Invesco Premier Portfolio reserve the right to redeem shares in any account that the Funds cannot confirm to their satisfaction are
beneficially owned by natural persons. The Funds will provide advance written notice of their intent to make any such involuntary redemptions.
The Funds reserve the right to redeem shares in any account that they cannot confirm to their satisfaction are beneficially owned by natural
persons, after providing advance notice.
Neither
a Fund nor its investment adviser will be responsible for any loss
in an investor’s account or tax liability resulting from an involuntary redemption.
Minimum
Account Balance (Available for all classes except Class R5 and R6 shares)
A
low balance fee of $12 per year may be deducted in the fourth quarter of each year from all accounts held in the Funds (each a Fund Account)
with a value less than the low balance amount (the Low Balance Amount) as determined from time to time by the Funds and the Adviser. The
Funds and the Adviser generally expect the Low Balance Amount to be $750, but such amount may be adjusted for any year depending on various
factors, including market conditions. The Low Balance Amount and the date on which it will be deducted from any Fund Account will be posted
on our website, www.invesco.com/us, on or about November 1 of each year. This fee will be payable to the Funds’ transfer agent by
redeeming from a Fund Account sufficient shares owned by a shareholder and will be used by the Funds’ transfer agent to offset amounts
that would otherwise be payable by the Funds to the Funds’ transfer agent under the Funds’ transfer agency agreement with
the Funds’ transfer agent. The low balance fee does not apply to participant accounts in advisory programs or to Employer Sponsored
Retirement and Benefit Plans.
Exchanging
Shares
You
may, under certain circumstances, exchange shares in one Fund for those of another Fund. An exchange is the purchase of shares in one
Fund which is paid for with the proceeds from a redemption of shares of another
A-15 The
Invesco Funds
Fund
effectuated on the same day. Any gain on the transaction may be subject to federal income tax. Accordingly, the procedures and processes
applicable to redemptions of Fund shares, as discussed under the heading “Redeeming Shares” above, will apply. Before requesting
an exchange, review the prospectus of the Fund you wish to acquire.
All
exchanges are subject to the limitations set forth in the prospectuses of
the Funds. If you wish to exchange shares of one Fund for those of another Fund, you must consult the prospectus of the Fund whose shares
you wish to acquire to determine whether the Fund is offering shares to new investors and whether you are eligible to acquire shares of
that Fund.
Permitted
Exchanges
Except
as otherwise provided herein or in the SAI, you generally may exchange your shares for shares of the same class of another Fund. The following
table shows generally permitted exchanges from one Fund to another Fund (exceptions listed below under “Exchanges Not Permitted”):
|
Exchange
From |
Exchange
To |
|
Invesco
Cash Reserve Shares |
Class
A, C, R, Investor Class |
|
| |
|
Class
A |
Class
A, Investor Class, Invesco Cash Reserve Shares* |
|
| |
|
Class
A2 |
Class
A, Investor Class, Invesco Cash Reserve Shares |
|
| |
|
Class
AX |
Class
A, AX, Investor Class, Invesco Cash Reserve Shares |
|
| |
|
Investor
Class |
Class
A, Investor Class |
|
| |
|
Class
P |
Class
A, Invesco Cash Reserve Shares |
|
| |
|
Class
S |
Class
A, S, Invesco Cash Reserve Shares |
|
| |
|
Class
C |
Class
C* |
|
| |
|
Class
CX |
Class
C, CX |
|
| |
|
Class
R |
Class
R* |
|
| |
|
Class
R5 |
Class
R5 |
|
| |
|
Class
R6 |
Class
R6 |
|
| |
|
Class
Y |
Class
Y* |
|
|
|
|
* You
may exchange Class Y shares of Invesco U.S. Government Money Portfolio for Class A, C
or
R shares of any other Fund as long as you are otherwise eligible for such share class. If you
exchange
Class Y shares of Invesco U.S. Government Money Portfolio for Class A, C or R shares
of
any other Fund, you may exchange those Class A, C or R shares back into Class Y shares of
Invesco
U.S. Government Money Portfolio, but not Class Y shares of any other Fund. | |
Exchanges
into Invesco Senior Loan Fund
Invesco
Senior Loan Fund is a closed-end interval fund that continuously offers its shares pursuant to the terms and conditions of its prospectus.
The Adviser is the investment adviser for the Invesco Senior Loan Fund. As with the Invesco Funds, you generally may exchange your shares
of Class A (Invesco Cash Reserve Shares of Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio) or Class
C of any Invesco Fund for shares of Class A or Class C, respectively, of Invesco Senior Loan Fund. Please refer to the prospectus for
the Invesco Senior Loan Fund for more information, including limitations on exchanges out of Invesco Senior Loan Fund.
Exchanges
Not Permitted
The
following exchanges are not permitted:
◾
Investor
Class shares cannot be exchanged for Class A shares of any Fund which offers Investor Class shares.
◾
Class A2
shares of Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund cannot be exchanged for Class A shares
of those Funds.
◾
Invesco
Cash Reserve Shares cannot be exchanged for Class C or R shares if the shares being exchanged were acquired by exchange from Class A
shares of any Fund.
◾
All
existing systematic exchanges and reallocations will cease and these options will no longer be available on all 403(b) prototype plans.
◾
Class
A, C or R shares of a Fund acquired by exchange of Class Y shares of Invesco U.S. Government Money Portfolio cannot be exchanged for Class
Y shares of any Fund, except Class Y shares of Invesco U.S. Government Money Portfolio.
Exchange
Conditions
Shares
must have been held for at least one day prior to the exchange with the exception of dividends and distributions that are reinvested.
Under
unusual market conditions, a Fund may delay the exchange of shares
for up to five business days if it determines that it would be materially disadvantaged by the immediate transfer of exchange proceeds.
The exchange privilege is not an option or right to purchase shares. Any of the participating Funds or the distributor may modify or terminate
this privilege at any time.
Initial
Sales Charges, CDSCs and 12b-1 Fees Applicable to Exchanges
You
may be required to pay an initial sales charge when exchanging from a Fund with a lower initial sales charge than the one into which you
are exchanging. If you exchange into shares that are subject to a CDSC, the Funds’ transfer agent will begin the holding period
for purposes of calculating the CDSC on the date you made your initial purchase.
In
addition, as a result of differences in the forms of distribution plans among
the Funds, certain exchanges of Class A shares, Class C shares, and Class R shares of a Fund for the same class of shares of another Fund
may result in investors paying a higher or a lower 12b-1 fee on the Fund being exchanged into. Please refer to the prospectus fee table
and financial highlights table and the SAI for more information on the fees and expenses, including applicable 12b-1 fees, of the Fund
you wish to acquire.
Share
Class Conversions
Shares
of one class of a Fund may be converted into shares of another class of the same Fund, provided that you are eligible to buy that share
class. Investors who hold Fund shares through a financial intermediary that does not have an agreement to make certain share classes of
the Funds available or that cannot systematically support the conversion may not be eligible to convert their shares. Furthermore, your
financial intermediary may have discretion to effect a conversion on your behalf. Consult with your financial intermediary for details.
Any CDSC associated with the converting shares will be assessed immediately prior to the conversion to the new share class. The conversion
of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes and no gain
or loss will be reported on the transaction. See the applicable prospectus for share class information.
Fees
and expenses differ between share classes. You should read the prospectus
for the share class into which you are seeking to convert your shares prior to the conversion.
Automatic
Conversion of Class C and Class CX Shares
Class
C and Class CX shares held for eight years after purchase are eligible for automatic conversion into Class A and Class AX shares of the
same Fund, respectively, except that for the Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio, the Funds’
Class C and/or Class CX shares would be eligible to automatically convert into the Fund’s Invesco Cash Reserve Share Class and all
existing Class C shares of Invesco Short Term Municipal Fund will automatically convert to Class A shares of that Fund at the end of June
2022 (the Conversion Feature). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month
following the eighth anniversary after a purchase of Class C or Class CX shares (the Conversion Date). The first conversion of Class C
and Class CX shares to Class A and Class AX shares under this policy would occur at the end of December 2020 for all Class C and Class
CX shares that were held for more than eight years as of November 30, 2020.
Automatic
conversions pursuant to the Conversion Feature will be on the basis
of the NAV per share, without the imposition of any sales charge (including a CDSC), fee or other charge. All such automatic conversions
of Class C and Class CX shares will constitute tax-free exchanges for federal income tax purposes.
Class
C and Class CX shares of a Fund acquired through a reinvestment of
dividends and distributions will convert to Class A and Class AX shares, respectively, of the Fund (or Invesco Cash Reserve shares for
Invesco
A-16 The
Invesco Funds
Government
Money Market Fund) on the Conversion Date pro rata with the converting Class C and Class CX shares of that Fund that were not acquired
through reinvestment of dividends and distributions.
Class
C or Class CX shares held through a financial intermediary in existing
omnibus Employer Sponsored Retirement and Benefit Plans and other omnibus accounts may be converted pursuant to the Conversion Feature
by the financial intermediary once it is determined that the Class C or Class CX shares have been held for the required holding period.
It is the financial intermediary’s (and not the Fund’s) responsibility to keep records and to ensure that the shareholder
is credited with the proper holding period as the Fund and its agents may not have transparency into how long a shareholder has held Class
C or Class CX shares for purposes of determining whether such Class C or Class CX shares are eligible to automatically convert pursuant
to the Conversion Feature. In order to determine eligibility for automatic conversion in these circumstances, it is the responsibility
of the shareholder or their financial intermediary to determine that the shareholder is eligible to exercise the Conversion Feature, and
the shareholder or their financial intermediary may be required to maintain records that substantiate the holding period of Class C or
Class CX shares.
In
addition, a financial intermediary may sponsor and/or control programs
or platforms that impose a different conversion schedule or eligibility requirements for conversions of Class C or Class CX shares. In
these cases, Class C and Class CX shares of certain shareholders may not be eligible for automatic conversion pursuant to the Conversion
Feature as described above. The Fund has no responsibility for overseeing, monitoring or implementing a financial intermediary’s
process for determining whether a shareholder meets the required holding period for automatic conversion. Please consult with your financial
intermediary if you have any questions regarding the Conversion Feature.
Share
Class Conversions Not Permitted
The
following share class conversions are not permitted:
◾
Conversions
into Class A from Class A2 of the same Fund.
◾
Conversions
into Class A2, Class AX, Class CX, Class P or Class S of the same Fund.
Rights
Reserved by the Funds
Each
Fund and its agents reserve the right at any time to:
◾
Reject
or cancel all or any part of any purchase or exchange order.
◾
Modify
any terms or conditions related to the purchase, redemption or exchange of shares of any Fund.
◾
Reject
or cancel any request to establish a Systematic Purchase Plan or Systematic Redemption Plan.
◾
Modify
or terminate any sales charge waivers or exceptions.
◾
Suspend,
change or withdraw all or any part of the offering made by this prospectus.
Excessive
Short-Term Trading Activity (Market Timing) Disclosures
While
the Funds provide their shareholders with daily liquidity, their investment programs are designed to serve long-term investors and are
not designed to accommodate excessive short-term trading activity in violation of our policies described below. Excessive short-term trading
activity in the Funds’ shares (i.e., a purchase of Fund shares followed shortly thereafter by a redemption of such shares, or vice
versa) may hurt the long-term performance of certain Funds by requiring them to maintain an excessive amount of cash or to liquidate portfolio
holdings at a disadvantageous time, thus interfering with the efficient management of such Funds by causing them to incur increased brokerage
and administrative costs. Where excessive short-term trading activity seeks to take advantage of arbitrage opportunities from stale prices
for portfolio securities, the value of Fund shares held by long-term investors may be diluted. The Board has adopted policies and procedures
designed to discourage excessive or short-term trading of Fund shares for all Funds except the money market funds, Invesco Conservative
Income Fund, and Invesco Short Term Municipal Fund. However, there is the risk that these Funds’ policies and procedures will prove
ineffective in whole or in part to detect or prevent excessive or
short-term
trading. These Funds may alter their policies at any time without prior notice to shareholders if the Adviser believes the change would
be in the best interests of long-term shareholders.
Invesco
and certain of its corporate affiliates (Invesco and such affiliates,
collectively, the Invesco Affiliates) currently use the following tools designed to discourage excessive short-term trading in the retail
Funds:
◾
Trade
activity monitoring.
◾
Discretion
to reject orders.
◾
Purchase
blocking.
◾
The
use of fair value pricing consistent with the valuation policy approved by the Board and related procedures.
Each
of these tools is described in more detail below. Although these tools
are designed to discourage excessive short-term trading, you should understand that none of these tools alone nor all of them taken together
eliminate the possibility that excessive short-term trading activity in the Funds will occur. Moreover, each of these tools involves judgments
that are inherently subjective. Invesco Affiliates seek to make these judgments to the best of their abilities in a manner that they believe
is consistent with long-term shareholder interests.
Money
Market Funds. The Boards of Invesco Government Money Market Fund,
Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio (the money market
funds) have not adopted any policies and procedures that would limit frequent purchases and redemptions of such Funds’ shares. The
Boards of the money market funds considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal. Nonetheless, to the extent that a money market fund must maintain additional cash and/or
securities with short-term durations in greater amounts than may otherwise be required or borrow to honor redemption requests, the money
market fund’s yield could be negatively impacted.
The
Boards of the money market funds do not believe that it is appropriate
to adopt any such policies and procedures for the money market funds for the following reasons:
◾
The
money market funds are offered to investors as cash management vehicles; therefore, investors should be able to purchase and redeem shares
regularly and frequently.
◾
One
of the advantages of a money market fund as compared to other investment options is liquidity. Any policy that diminishes the liquidity
of the money market funds will be detrimental to the continuing operations of such Funds.
◾
With
respect to the money market funds maintaining a constant net asset value, the money market funds’ portfolio securities are valued
on the basis of amortized cost, and such Funds seek to maintain a constant net asset value. As a result, the money market funds are not
subject to price arbitrage opportunities.
◾
With
respect to the money market funds maintaining a constant net asset value, because such Funds seek to maintain a constant net asset value,
investors are more likely to expect to receive the amount they originally invested in the Funds upon redemption than other mutual funds.
Invesco
Conservative Income Fund. The Board of Invesco Conservative Income
Fund has not adopted any policies and procedures that would limit frequent purchases and redemptions of such Fund’s shares. The
Board of Invesco Conservative Income Fund considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal especially in light of the reasons for not having such a policy as described below. Nonetheless,
to the extent that the Fund must maintain additional cash and/or securities with short-term durations in greater amounts than may otherwise
be required or borrow to honor redemption requests, the Fund’s yield could be negatively impacted.
The
Board of the Invesco Conservative Income Fund does not believe that
it is appropriate to adopt any such policies and procedures for the Fund for the following reasons:
◾
The
Fund is offered to investors as a cash management vehicle; investors perceive an investment in the Fund as an alternative to cash and
must be able to purchase and redeem shares regularly and frequently.
A-17 The
Invesco Funds
◾
One
of the advantages of the Fund as compared to other investment options is liquidity. Any policy that diminishes the liquidity of the Fund
will be detrimental to the continuing operations of the Fund.
Excessive
trading activity in the Fund’s shares may cause the Fund to incur
increased brokerage and administrative costs.
The
Fund and its agent reserve the right at any time to reject or cancel any
part of any purchase order. This could occur if the Fund determines that such purchase may disrupt the Fund’s operation or performance.
Invesco
Short Term Municipal Fund. The Board of Invesco Short Term Municipal
Fund has not adopted any policies and procedures that would limit frequent purchases and redemptions of such Fund’s shares. The
Board of Invesco Short Term Municipal Fund considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal, especially in light of the reasons for not having such a policy as described below. Nonetheless,
to the extent that the Fund must maintain additional cash and/or securities with short-term durations in greater amounts than may otherwise
be required or borrow to honor redemption requests, the Fund’s yield could be negatively impacted.
The
Board of Invesco Short Term Municipal Fund does not believe that it is
appropriate to adopt any such policies and procedures for the Fund for the following reasons:
◾
The
Fund is designed to address the needs of retail investors who seek liquidity in their investment and seek the ability to purchase and
redeem shares at any time.
◾
Any
policy that diminishes the ability of shareholders to purchase and redeem shares of the Fund will be detrimental to the continuing operations
of the Fund.
◾
The
Fund generally invests in short duration liquid investment grade municipal securities.
Excessive
trading activity in the Fund’s shares may cause the Fund to incur
increased brokerage and administrative costs. The Fund and its agent reserve the right at any time to reject or cancel any part of any
purchase order. This could occur if the Fund determines that such purchase may disrupt the Fund’s operation or performance.
Trade
Activity Monitoring
Invesco
Affiliates monitor selected trades on a daily basis in an effort to detect excessive short-term trading activities. If, as a result of
this monitoring, Invesco Affiliates believe that a shareholder has engaged in excessive short-term trading, they will seek to act in a
manner that they believe is consistent with the best interests of long-term investors, which may include taking steps such as (i) asking
the shareholder to take action to stop such activities or (ii) refusing to process future purchases or exchanges related to such activities
in the shareholder’s accounts other than exchanges into a money market fund. Invesco Affiliates will use reasonable efforts to apply
the Funds’ policies uniformly given the practical limitations described above.
The
ability of Invesco Affiliates to monitor trades that are made through accounts
that are maintained by intermediaries (rather than the Funds’ transfer agent) and through conduit investment vehicles may be limited
or non-existent.
Discretion
to Reject Orders
If
a Fund or an Invesco Affiliate determines, in its sole discretion, that your short-term trading activity is excessive, the Fund may, in
its sole discretion, reject any additional purchase and exchange orders. This discretion may be exercised with respect to purchase or
exchange orders placed directly with the Funds’ transfer agent or through a financial intermediary.
Purchase
Blocking Policy
The
Funds (except those listed below) have adopted a policy under which any shareholder redeeming shares having a value of $50,000 or more
from a Fund on any trading day will be precluded from investing in that Fund for 30 calendar days after the redemption transaction date.
The policy applies to redemptions and purchases that are part of exchange transactions. Under the purchase blocking policy, certain purchases
will not be prevented and certain redemptions will not trigger a purchase block, such as: purchases
and redemptions
of shares having a value of less than $50,000; systematic purchase, redemption and exchange account options; transfers of shares within
the same Fund; non-discretionary rebalancing in fund-of-funds; asset allocation features; fee-based accounts; account maintenance fees;
small balance account fees; plan-level omnibus Retirement and Benefit Plans; death and disability and hardship distributions; loan transactions;
transfers of assets; Retirement and Benefit Plan rollovers; IRA conversions and re-characterizations; and mandatory distributions from
Retirement and Benefit Plans.
The
Funds reserve the right to modify any of the parameters (including those
not listed above) of the purchase blocking policy at any time. Further, the purchase blocking policy may be waived with respect to specific
shareholder accounts in those instances where the Adviser determines that its surveillance procedures are adequate to detect frequent
trading in Fund shares.
If
an account is maintained by a financial intermediary whose systems are
unable to apply Invesco’s purchase blocking policy, the Adviser will accept the establishment of an account only if the Adviser
believes the policies and procedures are reasonably designed to enforce the frequent trading policies of the Funds. You should refer to
disclosures provided by the financial intermediary with which you have an account to determine the specific trading restrictions that
apply to you. If the Adviser identifies any activity that may constitute frequent trading, it reserves the right to contact the intermediary
and request that the intermediary either provide information regarding an account owner’s transactions or restrict the account owner’s
trading. There is no guarantee that all instances of frequent trading in Fund shares will be prevented.
The
purchase blocking policy does not apply to Invesco Conservative Income
Fund, Invesco Short Term Municipal Fund, Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government
Money Portfolio and Invesco U.S. Government Money Portfolio.
Pricing
of Shares
Determination
of Net Asset Value
The
price of each Fund’s shares is the Fund’s net asset value per share. The Funds (except Invesco Government Money Market Fund,
Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio) value portfolio
securities for which market quotations are readily available at market value. Securities and other assets quoted in foreign currencies
are valued in U.S. dollars based on the prevailing exchange rates on that day. The Funds (except Invesco Government Money Market Fund,
Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio) value securities
and assets for which market quotations are unavailable at their “fair value,” which is described below. Invesco Government
Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio
value portfolio securities on the basis of amortized cost, which approximates market value. This method of valuation is designed to enable
a Fund to price its shares at $1.00 per share. The Funds cannot guarantee their net asset value will always remain at $1.00 per share.
Securities and other assets quoted in foreign currencies are valued in U.S. dollars based on the prevailing exchange rates on that day.
The Fund values securities and assets for which market quotations are unavailable at their “fair value,” which is described
below.
Even
when market quotations are available, they may be stale or not
representative of market value in the Adviser’s judgment (“unreliable”)
because the security is not traded frequently, trading on the security
ceased before the close of the trading market or issuer specific events occurred after the security ceased trading or because of the passage
of time between the close of the market on which the security trades and the close of the NYSE and when the Fund calculates its net asset
value. Issuer specific events may cause the last market quotation to be unreliable. Such events may include a merger or insolvency, events
that affect a geographical area or an industry segment, such as political events or natural disasters, or market events, such as a significant
movement in the U.S. market. Where
A-18 The
Invesco Funds
the Adviser
determines that the closing price of the security is stale or unreliable, the Adviser will value the security at its fair value.
A
fair value price is an estimated price that requires consideration of all appropriate factors, including indications of fair value available
from pricing services. Fair value pricing involves judgment and a Fund that uses fair value methodologies may value securities higher
or lower than another Fund using market quotations or its own fair value methodologies to price the same securities. Investors who purchase
or redeem Fund shares on days when the Fund is holding fair-valued securities may receive a greater or lesser number of shares, or higher
or lower redemption proceeds, than they would have received if the Fund had not fair-valued the security or had used a different methodology.
The
Board has designated the Adviser to perform the daily determination
of fair value prices in accordance with Board approved
policies and related procedures,
subject to the Board’s oversight. Fair value pricing methods
and pricing services can change from time to time.
The
intended effect of applying fair value pricing is to compute an NAV that
accurately reflects the value of a Fund’s portfolio at the time that the NAV is calculated. An additional intended effect is to
discourage those seeking to take advantage of arbitrage opportunities resulting from “stale” prices and to mitigate the dilutive
impact of any such arbitrage. However, the application of fair value pricing cannot eliminate the possibility that arbitrage opportunities
will exist.
Specific
types of securities are valued as follows:
Senior
Secured Floating Rate Loans and Senior Secured Floating Rate Debt
Securities. Senior secured floating rate loans and senior secured
floating rate debt securities are fair valued using evaluated quotes provided by an independent pricing service. Evaluated quotes provided
by the pricing service may reflect appropriate factors such as market quotes, ratings, tranche type, industry, company performance, spread,
individual trading characteristics, institution-size trading in similar groups of securities and other market data.
Domestic
Exchange Traded Equity Securities. Market quotations are generally
available and reliable for domestic exchange traded equity securities. If market quotations are not available or are unreliable, the Adviser
will value the security at fair value in good faith using the valuation policy approved by the Board and related procedures.
Foreign
Securities. If market quotations are available and reliable for
foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign
securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular
security and the close of the customary trading session on the NYSE events occur that are significant and may make the closing price unreliable,
the Fund may fair value the security. If an issuer specific event has occurred that the Adviser determines, in its judgment, is likely
to have affected the closing price of a foreign security, it will price the security at fair value. The Adviser also relies on a screening
process from a pricing vendor to indicate the degree of certainty, based on historical data, that the closing price in the principal market
where a foreign security trades is not the current market value as of the close of the NYSE. For foreign securities where the Adviser
believes, at the approved degree of certainty, that the price is not reflective of current market value, the Adviser will use the indication
of fair value from the pricing service to determine the fair value of the security. The pricing vendor, pricing methodology or degree
of certainty may change from time to time.
Fund
securities primarily traded on foreign markets may trade on days that
are not business days of the Fund. Because the net asset value of Fund shares is determined only on business days of the Fund, the value
of the portfolio securities of a Fund that invests in foreign securities may change on days when you will not be able to purchase or redeem
shares of the Fund.
Fixed
Income Securities. Fixed income securities, such as government,
corporate, asset-backed and municipal bonds, convertible securities, including high yield or junk bonds, and loans, generally are valued
on the basis of prices provided by independent pricing services. Prices provided by the pricing services may be determined without exclusive
reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in
similar
groups of securities, developments related to special securities, dividend rate, maturity and other market data. Pricing services generally
value fixed income securities assuming orderly transactions of institutional round lot size, but a Fund may hold or transact in the same
securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Prices received from pricing
services are fair value prices. In addition, if the price provided by the pricing service and independent quoted prices are unreliable,
the Adviser will fair value the security using the valuation policy approved by the Board and related procedures.
Short-term
Securities. Invesco Government Money Market Fund, Invesco Premier
Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio value all their securities at amortized
cost. Invesco Limited Term Municipal Income Fund values variable rate securities that have an unconditional demand or put feature exercisable
within seven days or less at par, which reflects the market value of such securities.
Futures
and Options. Futures contracts are valued at the final settlement
price set by the exchange on which they are principally traded. U.S.
exchange-traded options are valued at the mean between the last
bid and asked prices from the exchange on which they principally trade. Non-U.S. exchange-traded options are valued at the final settlement
price set by
the exchange on which they trade. Options not listed on an exchange and swaps generally are valued using pricing provided from independent
pricing services.
Swap
Agreements. Swap Agreements are fair valued using an evaluated
quote provided by an independent pricing service. Evaluated quotes provided by the pricing service are based on a model that may include
end of day net present values, spreads, ratings, industry and company performance.
Open-end
Funds. If a Fund invests in other open-end funds, other than open-end
funds that are exchange traded, the investing Fund will calculate its net asset value using the net asset value of the underlying fund
in which it invests, and the prospectuses for such open-end funds explain the circumstances under which they will use fair value pricing
and the effects of using fair value pricing.
Each
Fund, except for Invesco Government Money Market Fund, Invesco Premier
Portfolio and Invesco Premier U.S. Government Money Portfolio, generally determines the net asset value of its shares on each day the
NYSE is open for trading (a business day) as of approximately 4:00 p.m. Eastern Time (the customary close of regular trading) or earlier
in the case of a scheduled early close. In the event of an unscheduled early close of the NYSE, each Fund, except for Invesco Government
Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio, generally still will determine the net
asset value of its shares as of 4:00 p.m. Eastern Time on that business day. Portfolio securities traded on the NYSE would be valued at
their closing prices unless the Adviser determines
that a “fair value” adjustment is appropriate due to subsequent events occurring after an early close consistent with the
valuation policy approved
by the Board and related procedures. Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government
Money Portfolio will generally determine the net asset value of their shares at 5:30 p.m. Eastern Time on each business day. A business
day for Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio is any day
that (1) both the Federal Reserve Bank of New York and a Fund’s custodian are open for business and (2) the primary trading markets
for the Fund’s portfolio instruments are open and the Fund’s management believes there is an adequate market to meet purchase
and redemption requests. Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money
Portfolio are authorized not to open for trading on a day that is otherwise a business day if the Securities Industry and Financial Markets
Association (SIFMA) recommends that government securities dealers not open for trading; any such day will not be considered a business
day. Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio, Invesco
U.S. Government Money Portfolio also may close early on a business day if SIFMA recommends that government securities dealers close early.
If
A-19 The
Invesco Funds
Invesco
Government Money Market Fund, Invesco Premier Portfolio or Invesco Premier U.S. Government Money Portfolio uses its discretion to
close early on a business day, the Fund will calculate its net asset value as of the time of such closing Invesco Premier Portfolio and
Invesco U.S. Government Money Portfolio are authorized to not open for trading on a day that is otherwise a business day if the NYSE recommends
that government securities dealers not open for trading; any such day will not be considered a business day. Invesco Premier Portfolio
also may close early on a business day if the NYSE recommends that government securities dealers close early.
For
financial reporting purposes and shareholder transactions on the last
day of the fiscal quarter, transactions are normally accounted for on a trade date basis. For purposes of executing shareholder transactions
in the normal course of business (other than shareholder transactions at a fiscal period-end), each Fund’s portfolio securities
transactions are recorded no later than the first business day following the trade date.
The
Invesco Advantage International Fund, Invesco Balanced-Risk Allocation
Fund, Invesco Balanced-Risk Commodity Strategy Fund, Invesco Fundamental Alternatives Fund, Invesco Global Allocation Fund, Invesco Global
Strategic Income Fund, Invesco Gold & Special Minerals Fund, Invesco High Yield Bond Factor Fund, Invesco International Bond Fund
and Invesco Macro Allocation Strategy Fund may each invest up to 25% of their total assets in shares of their respective subsidiaries
(the Subsidiaries). The Subsidiaries offer to redeem all or a portion of their shares at the current net asset value per share every regular
business day. The value of shares of the Subsidiaries will fluctuate with the value of the respective Subsidiary’s portfolio investments.
The Subsidiaries price their portfolio investments pursuant to the same pricing and valuation methodologies and procedures used by the
Funds, which require, among other things, that each of the Subsidiaries’ portfolio investments be marked-to-market (that is, the
value on each of the Subsidiaries’ books changes) each business day to reflect changes in the market value of the investment.
Each
Fund’s current net asset value per share is made available on the Funds’
website at www.invesco.com/us.
Fair
Value Pricing
Securities
owned by a Fund (except Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio
and Invesco U.S. Government Money Portfolio) are to be valued at current market value if market quotations are readily available. All
other securities and assets of a Fund for which market quotations are not readily available are to be valued at fair value determined
in good faith consistent with the valuation policy approved by the Board and related procedures. An effect of fair value pricing may be
to reduce the ability of frequent traders to take advantage of arbitrage opportunities resulting from potentially “stale”
prices of portfolio holdings. However, it cannot eliminate the possibility of frequent trading.
The
price a Fund could receive upon the sale of any investment may differ
from the Adviser's valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair
valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions
(i.e., publicly traded company multiples, growth rate, time to exit), to determine a methodology that will result in a valuation that
the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value
from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and
the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the
investment.
Timing
of Orders
Each
Fund prices purchase, exchange and redemption orders at the net asset value next calculated by the Fund after the Fund’s transfer
agent, authorized agent or designee receives an order in good order for the Fund. Purchase, exchange and redemption orders must be received
prior to the close of business on a business day, as defined by the applicable Fund, to receive that day’s net asset value. Any
applicable sales charges are applied at the time an order is processed.
Currently,
certain financial intermediaries may serve as agents for the Funds
and accept orders on their behalf. Where a financial intermediary serves as agent, the order is priced at the Fund’s net asset value
next calculated after it is accepted by the financial intermediary. In such cases, if requested by a Fund, the financial intermediary
is responsible for providing information with regard to the time that such order for purchase, redemption or exchange was received. Orders
submitted through a financial intermediary that has not received authorization to accept orders on a Fund’s behalf are priced at
the Fund’s net asset value next calculated by the Fund after it receives the order from the financial intermediary and accepts it,
which may not occur on the day submitted to the financial intermediary.
Additional
Information Regarding Deferred Tax Liability (only applicable to the Invesco Steelpath Funds)
In
calculating the Fund’s daily NAV, the Fund will, among other things, account for its deferred tax liability and/or asset balances.
As a result, any deferred tax liability and/or asset is reflected in the Fund’s daily NAV.
The
Fund will accrue a deferred income tax liability balance, at the U.S. federal
corporate income tax rate plus an estimated state and local income tax rate for its future tax liability associated with MLP distributions
considered to be a return of capital, as well as for its future tax liability associated with the capital appreciation of its investments.
The Fund’s current and deferred tax liability, if any, will depend upon the Fund’s net investment gains and losses and realized
and unrealized gains and losses on investments and therefore may vary greatly from year to year depending on the nature of the Fund’s
investments, the performance of those investments and general market conditions. Any deferred tax liability balance will reduce the Fund’s
NAV. Upon the Fund’s sale of an MLP security, the Fund may be liable for previously deferred taxes.
The
Fund will accrue, in accordance with generally accepted accounting principles,
a deferred tax asset balance, which reflects an estimate of the Fund’s future tax benefit associated with net operating losses and
unrealized losses. Any deferred tax asset balance will increase the Fund’s NAV. To the extent the Fund has a deferred tax asset
balance, the Fund will assess, in accordance with generally accepted accounting principles, whether a valuation allowance, which would
offset the value of some or all of the Fund’s deferred tax asset balance, is required. Pursuant to Financial Accounting Standards
Board Accounting Standards Codification 740 (FASB ASC 740), the Fund will assess a valuation allowance to reduce some or all of the deferred
tax asset balance if, based on the weight of all available evidence, both negative and positive, it is more likely than not that some
or all of the deferred tax asset will not be realized. The Fund will use judgment in considering the relative impact of negative and positive
evidence. The weight given to the potential effect of negative and positive evidence will be commensurate with the extent to which such
evidence can be objectively verified. The Fund’s assessment considers, among other matters, the nature, frequency and severity of
current and cumulative losses, the duration of statutory carry forward periods and the associated risk that operating loss and capital
loss carry forwards may be limited or expire unused, and unrealized gains and losses on investments. Consideration is also given to market
cycles, the severity and duration of historical deferred tax assets, the impact of redemptions, and the level of MLP distributions. The
Fund will assess whether a valuation allowance is required to offset some or all of any deferred tax asset in connection with the calculation
of the Fund’s NAV per share each day; however, to the extent the final valuation allowance differs from the estimates the Fund used
in calculating the Fund’s daily NAV, the application of such final valuation allowance could have a material impact on the Fund’s
NAV.
The
Fund’s deferred tax asset and/or liability balances are estimated using
estimates of effective tax rates expected to apply to taxable income in the years such balances are realized. The Fund will rely to some
extent on information provided by MLPs in determining the extent to which distributions received from MLPs constitute a return of capital,
which may not be provided to the Fund on a timely basis, to estimate the Fund’s deferred tax liability and/or asset balances for
purposes of financial statement reporting and determining its NAV. If such information is not
A-20 The
Invesco Funds
received
from such MLPs on a timely basis, the Fund will estimate the extent to which distributions received from MLPs constitute a return of capital
based on average historical tax characterization of distributions made by MLPs. The Fund’s estimates regarding its deferred tax
liability and/or asset balances are made in good faith; however, the daily estimate of the Fund’s deferred tax liability and/or
asset balances used to calculate the Fund’s NAV could vary dramatically from the Fund’s actual tax liability. Actual income
tax expense, if any, will be incurred over many years, depending on if and when investment gains and losses are realized, the then-current
basis of the Fund’s assets and other factors. As a result, the determination of the Fund’s actual tax liability may have a
material impact on the Fund’s NAV. The Fund’s daily NAV calculation will be based on then current estimates and assumptions
regarding the Fund’s deferred tax liability and/or asset balances and any applicable valuation allowance, based on all information
available to the Fund at such time. From time to time, the Fund may modify its estimates or assumptions regarding its deferred tax liability
and/or asset balances and any applicable valuation allowance as new information becomes available. Modifications of the Fund’s estimates
or assumptions regarding its deferred tax liability and/or asset balances and any applicable valuation allowance, changes in generally
accepted accounting principles or related guidance or interpretations thereof, limitations imposed on net operating losses (if any) and
changes in applicable tax law could result in increases or decreases in the Fund’s NAV per share, which could be material.
Taxes
(applicable to all Funds except for the Invesco SteelPath Funds and Invesco Master Loan Fund)
A
Fund intends to qualify each year as a regulated investment company (RIC) and, as such, is not subject to entity-level tax on the income
and gain it distributes to shareholders. If you are a taxable investor, dividends and distributions you receive from a Fund generally
are taxable to you whether you reinvest distributions in additional Fund shares or take them in cash. Every year, you will be sent information
showing the amount of dividends and distributions you received from a Fund during the prior calendar year. In addition, investors in taxable
accounts should be aware of the following basic tax points as supplemented below where relevant:
Fund Tax
Basics
◾
A
Fund earns income generally in the form of dividends or interest on its investments. This income, less expenses incurred in the operation
of a Fund, constitutes the Fund’s net investment income from which dividends may be paid to you. If you are a taxable investor,
distributions of net investment income generally are taxable to you as ordinary income.
◾
Distributions
of net short-term capital gains are taxable to you as ordinary income. A Fund with a high portfolio turnover rate (a measure of how frequently
assets within a Fund are bought and sold) is more likely to generate short-term capital gains than a Fund with a low portfolio turnover
rate.
◾
Distributions
of net long-term capital gains are taxable to you as long-term capital gains no matter how long you have owned your Fund shares.
◾
A
portion of income dividends paid by a Fund to you may be reported as qualified dividend income eligible for taxation by individual shareholders
at long-term capital gain rates, provided certain holding period requirements are met. These reduced rates generally are available for
dividends derived from a Fund’s investment in stocks of domestic corporations and qualified foreign corporations. In the case of
a Fund that invests primarily in debt securities, either none or only a nominal portion of the dividends paid by the Fund will be eligible
for taxation at these reduced rates.
◾
The
use of derivatives by a Fund may cause the Fund to realize higher amounts of ordinary income or short-term capital gain, distributions
from which are taxable to individual shareholders at ordinary income tax rates rather than at the more favorable tax rates for long-term
capital gain.
◾
Distributions
declared to shareholders with a record date in October, November or December—if paid to you by the end of January—are taxable
for federal income tax purposes as if received in December.
◾
Any
long-term or short-term capital gains realized on the sale or redemption of your Fund shares will be subject to federal income tax. For
tax
purposes an exchange of your shares for shares of another Fund is the same as a sale. An exchange occurs when the purchase of shares of
a Fund is made using the proceeds from a redemption of shares of another Fund and is effectuated on the same day as the redemption. Your
gain or loss is calculated by subtracting from the gross proceeds your cost basis. Gross proceeds and, for shares acquired on or after
January 1, 2012 and disposed of after that date, cost basis will be reported to you and the Internal Revenue Service (IRS). Cost
basis will be calculated using the Fund’s default method of average cost, unless you instruct the Fund to use a different calculation
method. As a service to you, the Fund will continue to provide to you (but not the IRS) cost basis information for shares acquired before
2012, when available, using the average cost method. Shareholders should carefully review the cost basis information provided by a Fund
and make any additional basis, holding period or other adjustments that are required when reporting these amounts on their federal income
tax returns. If you hold your Fund shares through a broker (or other nominee), please contact that broker (nominee) with respect to reporting
of cost basis and available elections for your account. For more information about the cost basis methods offered by Invesco, please refer
to the Tax Center located under the Account Access & Forms menu of our website at www.Invesco.com/us.
◾
The
conversion of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes
and no gain or loss will be reported on the transaction. This is true whether the conversion occurs automatically pursuant to the terms
of the class or is initiated by the shareholder.
◾
At
the time you purchase your Fund shares, the Fund’s net asset value may reflect undistributed income or undistributed capital gains.
A subsequent distribution to you of such amounts, although constituting a return of your investment, would be taxable. Buying shares in
a Fund just before it declares an income dividend or capital gains distribution is sometimes known as “buying a dividend.”
In addition, a Fund’s net asset value may, at any time, reflect net unrealized appreciation, which may result in future taxable
distributions to you.
◾
By
law, if you do not provide a Fund with your proper taxpayer identification number and certain required certifications, you may be subject
to backup withholding on any distributions of income, capital gains, or proceeds from the sale of your shares. A Fund also must withhold
if the IRS instructs it to do so. When withholding is required, the amount will be 24% of any distributions or proceeds paid.
◾
An
additional 3.8% Medicare tax is imposed on certain net investment income (including ordinary dividends and capital gain distributions
received from a Fund and net gains from redemptions or other taxable dispositions of Fund shares) of U.S. individuals, estates and trusts
to the extent that such person’s “modified adjusted gross income” (in the case of an individual) or “adjusted
gross income” (in the case of an estate or trust) exceeds a threshold amount. This Medicare tax, if applicable, is reported by you
on, and paid with, your federal income tax return.
◾
You
will not be required to include the portion of dividends paid by a Fund derived from interest on U.S. government obligations in your
gross income for purposes of personal and, in some cases, corporate income taxes in many state and local tax jurisdictions. The percentage
of dividends that constitutes dividends derived from interest on federal obligations will be determined annually. This percentage may
differ from the actual percentage of interest received by the Fund on federal obligations for the particular days on which you hold shares.
◾
Fund
distributions and gains from sale or exchange of your Fund shares generally are subject to state and local income taxes.
◾
If
a Fund qualifies to pass through to you the tax benefits from foreign taxes it pays on its investments, and elects to do so, then any
foreign taxes it pays on these investments may be passed through to you. You will then be required to include your pro-rata share of these
taxes in gross income, even though not actually received by you, and will be entitled either to deduct your share of these taxes in computing
your taxable income, or to claim a foreign tax credit for these taxes against your U.S. federal income tax.
A-21 The
Invesco Funds
◾
Foreign
investors should be aware that U.S. withholding, special certification requirements to avoid U.S. backup withholding and claim
any treaty benefits, and estate taxes may apply to an investment in a Fund.
◾
Under
the Foreign Account Tax Compliance Act (FATCA), a Fund will be required to withhold a 30% tax on income dividends made by the Fund to
certain foreign entities, referred to as foreign financial institutions or non-financial foreign entities, that fail to comply (or be
deemed compliant) with extensive reporting and withholding requirements designed to inform the U.S. Department of the Treasury of U.S.-owned
foreign investment accounts. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide otherwise (which
is not expected). A Fund may disclose the information that it receives from its shareholders to the IRS, non-U.S. taxing authorities or
other parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that is a shareholder
of a Fund fails to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.
◾
If
a Fund invests in an underlying fund taxed as a RIC, please see any relevant section below for more information regarding the Fund’s
investment in such underlying fund.
The
above discussion concerning the taxability of Fund dividends and distributions and of redemptions and exchanges of Fund shares is inapplicable
to investors holding shares through a tax-advantaged arrangement, such as Retirement and Benefit Plans or 529 college savings plans. Such
investors should refer to the applicable account documents/program description for that arrangement for more information regarding the
tax consequences of holding and redeeming Fund shares.
Funds
Investing in Municipal Securities
◾
You
will not be required to include the “exempt-interest” portion of dividends paid by the Fund in either your gross income for
federal income tax purposes or your net investment income subject to the additional 3.8% Medicare tax. You will be required to report
the receipt of exempt-interest dividends and other tax-exempt interest on your federal income tax returns. The percentage of dividends
that constitutes exempt-interest dividends will be determined annually. This percentage may differ from the actual percentage of exempt
interest received by the Fund for the particular days in which you hold shares.
◾
A
Fund may invest in municipal securities the interest on which constitutes an item of tax preference and could give rise to a federal alternative
minimum tax liability for noncorporate shareholders, unless such municipal securities were issued in 2009 or 2010.
◾
Exempt-interest
dividends from interest earned on municipal securities of a state, or its political subdivisions, generally are exempt from that state’s
personal income tax. Most states, however, do not grant tax-free treatment to interest from municipal securities of other states.
◾
A
Fund may invest a portion of its assets in securities that pay income that is not tax-exempt. To the extent that dividends paid by a Fund
are derived from taxable investments or realized capital gains, they will be taxable as ordinary income or long-term capital gains.
◾
A
Fund may distribute to you any market discount and net short-term capital gains from the sale of its portfolio securities. If you are
a taxable investor, Fund distributions from this income are taxable to you as ordinary income, and generally will neither qualify for
the dividends-received deduction in the case of corporate shareholders nor as qualified dividend income subject to reduced rates of taxation
in the case of noncorporate shareholders.
◾
Exempt-interest
dividends from a Fund are taken into account when determining the taxable portion of your social security or railroad retirement benefits,
may be subject to state and local income taxes, may affect the deductibility of interest on certain indebtedness, and may have other collateral
federal income tax consequences for you.
◾
There
are risks that: (a) a security issued as tax-exempt may be reclassified by the IRS or a state tax authority as taxable and/or (b) future
legislative,
administrative or court actions could adversely impact the qualification of income from a tax-exempt security as tax-free. Such reclassifications
or actions could cause interest from a security to become taxable, possibly retroactively, subjecting you to increased tax liability.
In addition, such reclassifications or actions could cause the value of a security, and therefore, the value of the Fund’s shares,
to decline.
Money
Market Funds
◾
A
Fund does not anticipate realizing any long-term capital gains.
◾
If
a Fund expects to maintain a stable net asset value of $1.00 per share, investors should not have any gain or loss on sale or exchange
of Fund shares (unless the investor incurs a liquidity fee on such sale or exchange). See “Liquidity Fees and Redemption Gates.”
◾
There
is some degree of uncertainty with respect to the tax treatment of liquidity fees received by a Fund, and such tax treatment may be the
subject of future IRS guidance. If a Fund receives liquidity fees, it will consider the appropriate tax treatment of such fees to the
Fund at such time.
◾
Unless
you choose to adopt a simplified “NAV method” of accounting (described below), any capital gain or loss on the sale or exchange
of Fund shares (as noted above) generally will be treated either as short-term if you held your Fund shares for one year or less, or long-term
if you held your Fund shares longer. If you elect to adopt the NAV method of accounting, rather than computing gain or loss on every taxable
disposition of Fund shares as described above, you would determine your gain or loss based on the change in the aggregate value of your
Fund shares during a computation period (such as your taxable year), reduced by your net investment (purchases minus sales) in those shares
during that period. Under the NAV method, any resulting net capital gain or loss would be treated as short-term capital gain or loss.
Funds
Investing in Real Estate Securities
◾
Because
of “noncash” expenses such as property depreciation, the cash flow of a REIT that owns properties will exceed its taxable
income. The REIT, and in turn a Fund, may distribute this excess cash to shareholders. Such a distribution is classified as a return of
capital. Return of capital distributions generally are not taxable to you. Your cost basis in your Fund shares will be decreased by the
amount of any return of capital. Any return of capital distributions in excess of your cost basis will be treated as capital gains.
◾
Dividends
paid to shareholders from the Funds’ investments in U.S. REITs generally will not qualify for taxation at long-term capital gain
rates applicable to qualified dividend income.
◾
The
Fund may derive “excess inclusion income” from certain equity interests in mortgage pooling vehicles either directly or through
an investment in a U.S. REIT. Please see the SAI for a discussion of the risks and special tax consequences to shareholders in the event
the Fund realizes excess inclusion income in excess of certain threshold amounts.
◾
Under
the Tax Cuts and Jobs Act, “qualified REIT dividends” (i.e., ordinary REIT dividends other than capital gain dividends and
portions of REIT dividends designated as qualified dividend income) are treated as eligible for a 20% deduction by noncorporate taxpayers.
The Fund may choose to report the special character of “qualified REIT dividends” to a shareholder, provided both the Fund
and a shareholder meet certain holding period requirements with respect to their shares.
◾
The
Fund’s foreign shareholders should see the SAI for a discussion of the risks and special tax consequences to them from a sale of
a U.S. real property interest by a REIT in which the Fund invests.
Funds
Investing in Partnerships
◾
Taxes,
penalties, and interest associated with an audit of a partnership
are generally required to be assessed and collected at the partnership level. Therefore, an adverse federal income tax audit of a partnership
that a Fund invests in (including MLPs taxed as partnerships) could result in the Fund being required to pay federal income tax. A Fund
may have little input in any audit asserted against a partnership and may be contractually or legally obligated to make payments in regard
to deficiencies asserted without the ability to put forward an independent defense. Accordingly,
A-22 The
Invesco Funds
even
if a partnership in which the Fund invests were to remain classified as a partnership (instead of as a corporation), it could be required
to pay additional taxes, interest and penalties as a result of an audit adjustment, and the Fund, as a direct or indirect partner of such
partnership, could be required to bear the economic burden of those taxes, interest and penalties, which would reduce the value of Fund
shares.
◾
Under
the Tax Cuts and Jobs Act “qualified publicly traded partnership income” is treated as eligible for a 20% deduction by noncorporate
taxpayers. The legislation does not contain a provision permitting a RIC, such as a Fund, to pass the special character of this income
through to its shareholders. It is uncertain whether a future technical corrections bill or regulations issued by the IRS will address
this issue to enable a Fund to pass through the special character of “qualified publicly traded partnership income” to its
shareholders.
◾
Some
amounts received by a Fund from the MLPs in which it invests likely will be treated as returns of capital to such Fund because of accelerated
deductions available to the MLPs. The receipt of returns of capital from the MLPs in which a Fund invests could cause some or all of the
Fund’s distributions to be classified as a return of capital. Return of capital distributions generally are not taxable to you.
Your cost basis in your Fund shares will be decreased by the amount of any return of capital. Any return of capital distributions in excess
of your cost basis will be treated as capital gains.
Funds
Investing in Commodities
◾
The
Funds’ strategies of investing through their respective Subsidiary in derivatives and other financially linked instruments whose
performance is expected to correspond to the commodity markets may cause the Funds to recognize more ordinary income and short-term capital
gains taxable as ordinary income than would be the case if the Funds invested directly in commodities.
◾
The
Funds must meet certain requirements under the Code for favorable tax treatment as a RIC, including asset diversification and income requirements.
The IRS has issued a revenue ruling which holds that income derived from commodity-linked swaps is not qualifying income for purposes
of the Income Requirement. In a subsequent revenue ruling, as well as in a number of follow-on private letter rulings (upon which only
the fund that received the private letter ruling may rely), the IRS provides that income from certain alternative investments which create
commodity exposure, such as certain commodity-linked or structured notes or a corporate subsidiary that invests in commodities, may be
considered qualifying income under the Code. However, the portion of such rulings relating to the treatment of a corporation as a regulated
investment company that require a determination of whether a financial instrument or position is a security under section 2(a)(36) of
the 1940 Act was revoked because of changes in the IRS’s position.
(A financial instrument or position that constitutes a security
under section 2(a)(36) of the 1940 Act generates qualifying income for a corporation taxed as a regulated investment company.) The Funds
intend to treat the income each derives from commodity-linked notes as qualifying income based on an opinion from counsel confirming that
income from such investments should be qualifying income because such commodity-linked notes constitute securities under section 2(a)(36)
of the 1940 Act. Each Subsidiary will be classified for federal income tax purposes as a controlled foreign corporation (CFC) with respect
to the Fund. As such, the Fund will be required to include in its gross income each year amounts earned by the Subsidiary during that
year (“Subpart F” income), whether or not such earnings are distributed by the Subsidiary to the Fund (deemed inclusions).
Treasury Regulations also permit the Fund to treat such deemed inclusions of “Subpart F” income from the Subsidiary as qualifying
income to the Fund, even if the Subsidiary does not make a distribution of such income. Consequently, the Fund and the Subsidiary reserve
the right to rely on deemed inclusions being treated as qualifying income to the Fund consistent with recently released Treasury Regulations.
If, contrary to the opinion of counsel or other guidance issued by the IRS, the IRS were to determine that income from direct investment
in commodity-linked notes is non-qualifying, a Fund might fail to satisfy
the
income requirement. In lieu of disqualification, the Funds are permitted to pay a tax for certain failures to satisfy the asset diversification
or income requirements, which, in general, are limited to those due to reasonable cause and not willful neglect. The Funds intend to limit
their investments in their respective Subsidiary to no more than 25% of the value of each Fund’s total assets in order to satisfy
the asset diversification requirement.
Funds
Investing in Foreign Currencies
◾
The
Funds may realize gains from the sale or other disposition of foreign currencies (including but not limited to gains from options, futures
or forward contracts) derived from investing in securities or foreign currencies. The U.S. Treasury Department is authorized to issue
regulations on whether the realization of such foreign currency gains is qualified income for the Funds. If such regulations are issued,
each Fund may not qualify as a RIC and/or the Fund may change its investment policy. As of the date of this prospectus, no regulations
have been issued pursuant to this authorization. It is possible, however, that such regulations may be issued in the future. Additionally,
the IRS has not issued any guidance on how to apply the asset diversification test to such foreign currency positions. Thus, the IRS’
determination as to how to treat such foreign currency positions for purposes of satisfying the asset diversification test might differ
from that of each Fund resulting in the Fund’s failure to qualify as a RIC. In lieu of disqualification, each Fund is permitted
to pay a tax for certain failures to satisfy the asset diversification or income requirements, which, in general, are limited to those
due to reasonable cause and not willful neglect.
◾
The
Funds’ transactions in foreign currencies may give rise to ordinary income or loss to the extent such income or loss results from
fluctuations in the value of the foreign currency concerned. This treatment could increase or decrease the Funds' ordinary income distributions
to you, and may cause some or all of the Funds' previously distributed income to be classified as a return of capital. Return of capital
distributions generally are not taxable to you. Your cost basis in your Fund shares will be decreased by the amount of any return of capital.
Any return of capital distributions in excess of your cost basis will be treated as capital gains.
This
discussion of “Taxes” is for general information only and not
tax advice. All investors should consult their own tax advisers as to the federal, state, local and foreign tax provisions applicable
to them.
Taxes
(applicable to the Invesco SteelPath Funds
only)
Although
the Code generally provides that a RIC does not pay an entity-level income tax, provided that it distributes all or substantially all
of its income, the Fund is not and does not anticipate becoming eligible to elect to be treated as a RIC because most or substantially
all of the Fund’s investments will consist of investments in MLP securities. The RIC tax rules therefore have no application to
the Fund or to its shareholders. As a result, the Fund is treated as a regular corporation, or “C” corporation, for U.S. federal
income tax purposes, and generally is subject to U.S. federal income tax on its taxable income at the corporate income tax rate. In addition,
as a regular corporation, the Fund will be subject to state and local taxes by reason of its tax status and its investments in MLPs. Therefore,
the Fund may have to pay federal, multiple state, and local taxes, which would reduce the Fund’s cash available to make distributions
to shareholders. An estimate for federal, state, and local tax liabilities will reduce the fund’s net asset value. The extent to
which the Fund is required to pay U.S. federal, state or local corporate income, franchise or other corporate taxes could materially reduce
the Fund’s cash available to make distributions to shareholders. In addition, investors in taxable accounts should be aware of the
following basic tax points as supplemented below where relevant:
Fund
Tax Basics
◾
The
Fund intends to invest a significant portion of its assets in MLPs, which are generally treated as partnerships for U.S. federal income
tax purposes. To the extent that the Fund invests in equity securities of an MLP, the Fund will be a partner in such MLP. Accordingly,
the Fund will be
A-23 The
Invesco Funds
required
to take into account the Fund’s allocable share of the income, gains, losses, deductions, and credits recognized by each such MLP,
regardless of whether the MLP distributes cash to the Fund. MLP distributions to partners, such as the Fund, are not taxable unless the
cash amount (or in certain cases, the fair market value of marketable securities) distributed exceeds the Fund’s basis in its MLP
interest. The Fund expects that the cash distributions it will receive with respect to its investments in equity securities of MLPs will
exceed the net taxable income allocated to the Fund from such MLPs because of tax deductions such as depreciation, amortization and depletion
that will be allocated to the Fund from the MLPs. No assurance, however, can be given in this regard. If this expectation is not realized,
the Fund will have a larger corporate income tax expense than expected, which will result in less cash available for distribution to shareholders.
◾
The
Fund will recognize gain or loss on the sale, exchange or other taxable disposition of its portfolio assets, including equity securities
of MLPs, equal to the difference between the amount realized by the Fund on the sale, exchange or other taxable disposition and the Fund’s
adjusted tax basis in such assets. Any such gain will be subject to U.S. federal income tax at the corporate income tax rate, regardless
of how long the Fund has held such assets since preferential capital gain rates do not apply to regular corporations such as the Fund.
The amount realized by the Fund in any case generally will be the amount paid by the purchaser of the assets plus, in the case of MLP
equity securities, the Fund’s allocable share, if any, of the MLP’s debt that will be allocated to the purchaser as a result
of the sale, exchange or other taxable disposition. The Fund’s tax basis in its equity securities in an MLP generally is equal to
the amount the Fund paid for the equity securities, (i) increased by the Fund’s allocable share of the MLP’s net taxable income
and certain MLP debt, if any, and (ii) decreased by the Fund’s allocable share of the MLP’s net losses and any distributions
received by the Fund from the MLP. Although any distribution by an MLP to the Fund in excess of the Fund’s allocable share of such
MLP’s net taxable income may create a temporary economic benefit to the Fund, net of a deferred tax liability, such distribution
will decrease the Fund’s tax basis in its MLP investment and will therefore increase the amount of gain (or decrease the amount
of loss) that will be recognized on the sale of an equity security in the MLP by the Fund. To the extent that the Fund has a net capital
loss in any year, the net capital loss can be carried back three taxable years and forward five taxable years to reduce the Fund’s
capital gains in such years. In the event a capital loss carryover cannot be utilized in the carryover periods, the Fund’s federal
income tax liability may be higher than expected, which will result in less cash available to distribute to shareholders.
◾
Distributions
by the Fund of cash or property in respect of the shares (other than certain distributions in redemption of shares) will be treated as
dividends for U.S. federal income tax purposes to the extent paid from the Fund’s current or accumulated earnings and profits (as
determined under U.S. federal income tax principles). Generally, the Fund’s earnings and profits are computed based upon the Fund’s
taxable income (loss), with certain specified adjustments. Any such dividend likely will be eligible for the dividends-received deduction
if received by an otherwise qualifying corporate U.S. shareholder that meets certain holding period and other requirements for the dividends-received
deduction. Dividends paid by the Fund to certain non-corporate U.S. shareholders (including individuals), generally are eligible for U.S.
federal income taxation at the rates generally applicable to long-term capital gains for individuals provided that the U.S. shareholder
receiving the dividend satisfies applicable holding period and other requirements. Otherwise, dividends paid by the Fund to non-corporate
U.S. Shareholders (including individuals) will be taxable at ordinary income rates.
◾
If
the amount of a Fund distribution exceeds the Fund’s current and accumulated earnings and profits, such excess will be treated first
as a tax-deferred return of capital to the extent of, and in reduction of, a shareholder’s tax basis in the shares, and thereafter
as capital gain to the extent the shareholder held the shares as a capital asset. Any such capital gain will be long-term capital gain
if such shareholder has held the applicable shares for more than one year. The portion of the distribution
received
by a shareholder from the Fund that is treated as a return of capital will decrease the shareholder’s tax basis in his or her Fund
shares (but not below zero), which will result in an increase in the amount of gain (or decrease in the amount of loss) that will be recognized
by the shareholder for tax purposes on the later sale of such Fund shares.
◾
The
Fund anticipates that the cash distributions it will receive with respect to its investments in equity securities of MLPs and which it
will distribute to its shareholders will exceed the Fund’s current and accumulated earnings and profits. Accordingly, the Fund expects
that only a part of its distributions to shareholders with respect to the shares will be treated as dividends for U.S. federal income
tax purposes. No assurance, however, can be given in this regard.
◾
Special
rules may apply to the calculation of the Fund’s earnings and profits. For example, the Fund’s earnings and profits will be
calculated using the straight-line depreciation method rather than the accelerated depreciation method. This difference in treatment may,
for example, result in the Fund’s earnings and profits being higher than the Fund’s taxable income or loss in a particular
year if the MLPs in which the Fund invests calculate their income using accelerated depreciation. Because of these special earnings profits
rules, the Fund may make distributions in a particular year out of earnings and profits (treated as dividends) in excess of the amount
of the Fund’s taxable income or loss for such year, which means that a larger percentage of the Fund ’s distributions could
be taxable to shareholders as ordinary income instead of tax-deferred return of capital or capital gain.
◾
Shareholders
that receive distributions in shares rather than in cash will be treated for U.S. federal income tax purposes as having (i) received a
cash distribution equal to the fair market value of the shares received and (ii) reinvested such amount in shares.
◾
A
redemption of shares will be treated as a sale or exchange of such shares, provided the redemption is not essentially equivalent to a
dividend, is a substantially disproportionate redemption, is a complete redemption of a shareholder’s entire interest in the Fund,
or is in partial liquidation of such Fund. Redemptions that do not qualify for sale or exchange treatment will be treated as distributions
as described above. Upon a redemption treated as a sale or exchange under these rules, a shareholder generally will recognize capital
gain or loss equal to the difference between the adjusted tax basis of his or her shares and the amount received when they are sold.
◾
If
the Fund is required to sell portfolio securities to meet redemption requests, the Fund may recognize income and gains for U.S. federal,
state and local income and other tax purposes, which may result in the imposition of corporate income or other taxes on the Fund and may
increase the Fund’s current and accumulated earnings and profits, which will result in a greater portion of distributions to Fund
shareholders being treated as dividends. Any long-term or short-term capital gains realized on sale or redemption of your Fund shares
will be subject to federal income tax. For tax purposes an exchange of your shares for shares of another Fund is the same as a sale. An
exchange occurs when the purchase of shares of a Fund is made using the proceeds from a redemption of shares of another Fund and is effectuated
on the same day as the redemption. Your gain or loss is calculated by subtracting from the gross proceeds your cost basis. Gross proceeds
and, for shares acquired on or after January 1, 2012 and disposed of after that date, cost basis will be reported to you and the IRS.
Cost basis will be calculated using the Fund’s default method of first-in, first-out (FIFO), unless you instruct the Fund to use
a different calculation method. Shareholders should carefully review the cost basis information provided by a Fund and make any additional
basis, holding period or other adjustments that are required when reporting these amounts on their federal income tax returns. If you
hold your Fund shares through a broker (or other nominee), please contact that broker (nominee) with respect to reporting of cost basis
and available elections for your account. For more information about the cost basis methods offered by Invesco, please refer to the Tax
Center located under the Account Access & Forms menu of our website at www.invesco.com/us.
A-24 The
Invesco Funds
◾
The
conversion of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes
and no gain or loss will be reported on the transaction. This is true whether the conversion occurs automatically pursuant to the terms
of the class or is initiated by the shareholder.
◾
At
the time you purchase your Fund shares, the Fund’s net asset value may reflect undistributed income. A subsequent distribution to
you of such amounts, although constituting a return of your investment, would be taxable. Buying shares in a Fund just before it declares
an income dividend is sometimes known as “buying a dividend.” In addition, a Fund’s net asset value may, at any time,
reflect net unrealized appreciation, which may result in future taxable distributions to you.
◾
By
law, if you do not provide a Fund with your proper taxpayer identification number and certain required certifications, you may be subject
to backup withholding on any distributions of income, capital gains, or proceeds from the sale of your shares. A Fund also must withhold
if the IRS instructs it to do so. When withholding is required, the amount will be 24% of any distributions or proceeds paid.
◾
A
3.8% Medicare tax is imposed on certain net investment income (including ordinary dividends received from a Fund and net gains from redemptions
or other taxable dispositions of Fund shares) of U.S. individuals, estates and trusts to the extent that such person’s “modified
adjusted gross income” (in the case of an individual) or “adjusted gross income” (in the case of an estate or trust)
exceeds a threshold amount. This Medicare tax, if applicable, is reported by you on, and paid with, your federal income tax return.
◾
Fund
distributions and gains from sale or exchange of your Fund shares generally are subject to state and local income taxes.
◾
Foreign
investors should be aware that U.S. withholding, special certification requirements to avoid U.S. backup withholding and claim any treaty
benefits, and estate taxes may apply to an investment in a Fund.
◾
Under
the Foreign Account Tax Compliance Act (FATCA), a Fund will be required to withhold a 30% tax on income dividends made by the Fund to
certain foreign entities, referred to as foreign financial institutions or non-financial foreign entities, that fail to comply (or be
deemed compliant) with extensive reporting and withholding requirements designed to inform the U.S. Department of the Treasury of U.S.-owned
foreign investment accounts. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide otherwise (which
is not expected). A Fund may disclose the information that it receives from its shareholders to the IRS, non-U.S. taxing authorities or
other parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that is a shareholder
of a Fund fails to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.
◾
Taxes,
penalties, and interest associated with an audit of a partnership are generally required to be assessed and collected at the partnership
level. Therefore, an adverse federal income tax audit of an MLP taxed as a partnership that the Fund invests in could result in the Fund
being required to pay federal income tax. The Fund may have little input in any audit asserted against an MLP and may be contractually
or legally obligated to make payments in regard to deficiencies asserted without the ability to put forward an independent defense. Accordingly,
even if an MLP in which the Fund invests were to remain classified as a partnership, it could be required to pay additional taxes, interest
and penalties as a result of an audit adjustment, and the Fund, as a direct or indirect partner of such MLP, could be required to bear
the economic burden of those taxes, interest and penalties, which would reduce the value of Fund shares.
◾
Under
the Tax Cuts and Jobs Act certain “qualified publicly traded partnership income” (e.g., certain income from certain of the
MLPs in which the Fund invests) is treated as eligible for a 20% deduction by noncorporate taxpayers. The Tax Cuts and Jobs Act does not
contain a provision permitting an entity, such as the Fund, to benefit from this
deduction
(since the Fund is taxed as a “C” corporation) or pass the special character of this income through to its shareholders. Qualified
publicly traded partnership income allocated to a noncorporate investor investing directly in an MLP might, however, be eligible for the
deduction.
The
above discussion concerning the taxability of Fund dividends and distributions
and of redemptions and exchanges of Fund shares is inapplicable to investors holding shares through a tax-advantaged arrangement, such
as Retirement and Benefit Plans or 529 college savings plans. Such investors should refer to the applicable account documents/program
description for that arrangement for more information regarding the tax consequences of holding and redeeming Fund shares.
This
discussion of “Taxes” is for general information only and not
tax advice. All investors should consult their own tax advisers as to the federal, state, local and foreign tax provisions applicable
to them.
Federal
Income Taxes (applicable to Invesco Master Loan Fund only)
United
States Taxes
The
Fund is classified as a partnership and will not be a regulated investment company for US federal income tax purposes. As a partnership,
the Fund is not a taxable entity for federal income tax purposes and, subject to the application of the partnership audit rules described
below, incurs no federal income tax liability. Each Investor is required to take into account its proportionate share of items of income,
gain, loss and deduction of the partnership in computing its federal income tax liability regardless of whether or not cash or property
distributions are then made by the Fund. Following the close of the Fund’s taxable year end, Investors will receive a tax statement
entitled Schedule K-1 Partner’s Share of Income, Deductions, Credits, etc., which reports the tax status of their distributive share
of the Fund’s items for the previous year.
Taxation
of Distributions, Sales and Exchanges
In
general, distributions of money by the Fund to an Investor will represent a non-taxable return of capital up to the amount of an Investor’s
adjusted tax basis in its shares. An Investor will recognize gain to the extent that any money distributed by the Fund exceeds the Investor’s
adjusted tax basis in its shares. In the case of a non-taxable return of capital by the Fund to an Investor, other than in liquidation
of the Investor’s interest in the Fund, the tax basis of his shares will be reduced (but not below zero) and will result in an increase
in the amount of gain (or decrease in the amount of loss) that will be recognized by the Investor on the later sale of its shares. A distribution
in partial or complete redemption of your shares in the Fund is taxable as a sale or exchange only to the extent the amount of money received
exceeds the tax basis of your entire interest in the Fund. Any loss may be recognized only if you redeem your entire interest in the Fund
for money.
When
you sell shares of the Fund, you may have a capital gain or loss.
Derivatives
The
use of derivatives by the Fund may cause the Fund to realize higher amounts of ordinary income or short-term capital gain, allocations
of which are taxable to individual Investors at ordinary income tax rates rather than at the more favorable tax rates for long-term capital
gain. Changes in government regulation of derivative instruments could affect the character, timing and amount of the Fund’s taxable
income or gains, and may limit the Fund from using certain types of derivative instruments as part of its investment strategy.
Risk
of Audit of the Fund
Under
the partnership audit rules, which are generally applicable to tax years beginning after December 31, 2017, the Internal Revenue Service
(“IRS”) may collect any taxes resulting from audit adjustments to the Fund’s income tax returns (including any applicable
penalties and interest) directly from the Fund. In that case, current Investors would bear some or all of the
A-25 The
Invesco Funds
tax liability
resulting from such audit adjustment, even if they did not own interests in the Fund during the tax year under audit. The Fund may have
the ability to shift any such tax liability to the Investors in accordance with their interests in the Fund during the year under audit,
but there can be no assurance that the Fund will be able to do so under all circumstances. For taxable years not subject to the new audit
rules, items of Fund income, gain, loss, deduction and credit will be determined at the Fund level in a unified audit. NO REPRESENTATION
OR WARRANTY OF ANY KIND IS MADE WITH RESPECT TO THE TAXATION, DEDUCTIBILITY OR CAPITALIZATION OF ANY ITEM BY THE FUND OR INVESTOR. In
addition, the “partnership representative” (tax matters partner, for taxable years before the partnership audit rules become
effective) will have the sole authority to act on the Fund’s behalf for purposes of, among other things, federal income tax audits
and judicial review of administrative adjustments by the IRS, and any such actions will be binding on the Fund and all of the Investors.
Unrelated
Business Taxable Income
An
allocable share of a tax-exempt Investor’s income will be “unrelated business taxable income” (“UBTI”) to
the extent that the Fund borrows money to acquire property or invests in assets that produce UBTI.
Medicare
Tax
An
additional 3.8% Medicare tax is imposed on certain net investment income of US individuals, estates and trusts to the extent that such
person’s “modified adjusted gross income” (in the case of an individual) or “adjusted gross income” (in
the case of an estate or trust) exceeds a threshold amount. “Net investment income,” for these purposes, means investment
income (including (i) net gains from the taxable disposition of shares of a Fund to the extent the net gain would be taken into account
by the Investor if the Fund sold all of its property for fair market value immediately before the disposition of the shares of the Fund,
and (ii) an allocable share of a Fund’s interest, dividends and net gains) reduced by the deductions properly allocable to such
income. This Medicare tax, if applicable, is reported by Investors on, and paid with, the Investor’s federal income tax return.
State,
Local and Non-US Tax Matters
An
Investor’s distributive share of the Fund’s income, and gains from the sale or exchange of an Investor’s Fund shares,
generally are subject to state and local taxes in the jurisdiction in which the Investor resides or is otherwise subject to tax.
Prospective
investors should consider their individual state and local tax consequences
of an investment in the Fund.
Tax
Considerations for Non-US Investors
If,
as anticipated, the Fund is not deemed to be engaged in a US trade or business, the Fund generally will be required to withhold tax on
the distributive share of certain items of gross income from US sources allocated to non-US Investors at a 30% (or lower treaty) rate.
Certain categories of income, including portfolio interest, are not subject to US withholding tax. Capital gains (other than gain realized
on disposition of US real property interests) are not subject to US withholding tax unless the non-US Investor is a nonresident alien
individual present in the United States for a period or periods aggregating 183 days or more during the taxable year. If, on the other
hand, the Fund derives income which is effectively connected with a US trade or business carried on by the Fund, this 30% tax will not
apply to such effectively connected income of the Fund, and the Fund generally will be required to withhold tax from the amount of effectively
connected income allocable to non-US Investors at the highest rate of tax applicable to US residents, and non-US Investors generally would
be required to file US income tax returns and be subject to US income tax on a net basis. Gain or loss on a sale of shares will be treated
as effectively connected with a U.S. trade or business to the extent that a foreign corporation or foreign individual that owns the shares
(whether directly or indirectly through other partnerships) would have had effectively connected gain or loss had the partnership sold
its underlying assets and applicable US
withholding
tax will apply. Non-US Investors may be subject to US estate tax and are subject to special US tax certification requirements.
Other
Reporting and Withholding Requirements
Under
the Foreign Account Tax Compliance Act (“FATCA”), the Fund will be required to withhold at a 30% rate on certain US source
payments (such as interest and dividends) to certain Investors if the Investor fails to provide the Fund with the information which identifies
its direct and indirect US ownership. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide otherwise (which
is not expected). A Fund may disclose the information that it receives from an Investor to the IRS, non-US taxing authorities or other
parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that is an Investor fails
to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.
For
a more complete discussion of the federal income tax consequences
of investing in the Fund, see the Statement of Additional Information.
This
discussion of “Federal Income Taxes” is not intended or written
to be used as tax advice. Because everyone’s tax situation is unique, Investors should consult their tax professional about federal,
state, local and foreign tax consequences before making an investment in the Fund.
Payments
to Financial Intermediaries – All Share Classes except Class R6 shares
The
financial adviser or intermediary through which you purchase your shares may receive all or a portion of the sales charges and distribution
fees discussed above. In addition to those payments, Invesco Distributors and other Invesco Affiliates, may make additional cash payments
to financial intermediaries in connection with the promotion and sale of shares of the Funds. These additional cash payments may include
cash payments and other payments for certain marketing and support services. Invesco Affiliates make these payments from their own resources,
from Invesco Distributors’ retention of initial sales charges and from payments to Invesco Distributors made by the Funds under
their 12b-1 plans. In the context of this prospectus, “financial intermediaries” include any broker, dealer, bank (including
bank trust departments), registered investment adviser, financial planner, retirement plan administrator, insurance company and any other
financial intermediary having a selling, administration or similar agreement with Invesco Affiliates.
The
benefits Invesco Affiliates receive when they make these payments include,
among other things, placing the Funds on the financial intermediary’s fund sales system, and access (in some cases on a preferential
basis over other competitors) to individual members of the financial intermediary’s sales force or to the financial intermediary’s
management. These payments are sometimes referred to as “shelf space” payments because the payments compensate the financial
intermediary for including the Funds in its fund sales system (on its “sales shelf”). Invesco Affiliates compensate financial
intermediaries differently depending typically on the level and/or type of considerations provided by the financial intermediary. The
payments Invesco Affiliates make may be calculated based on sales of shares of the Funds (Sales-Based Payments), in which case the total
amount of such payments shall not exceed 0.25% (0.10% for Class R5 shares) of the public offering price of all shares sold by the financial
intermediary during the particular period. Payments may also be calculated based on the average daily net assets of the applicable Funds
attributable to that particular financial intermediary (Asset-Based Payments), in which case the total amount of such cash payments shall
not exceed 0.25% per annum of those assets during a defined period. Sales-Based Payments primarily create incentives to make new sales
of shares of the Funds and Asset-Based Payments primarily create incentives to retain previously sold shares of the Funds in investor
accounts. Invesco Affiliates
A-26 The
Invesco Funds
may pay a financial
intermediary either or both Sales-Based Payments and Asset-Based Payments.
Invesco
Affiliates are motivated to make these payments as they promote
the sale of Fund shares and the retention of those investments by clients of the financial intermediaries. To the extent financial intermediaries
sell more shares of the Funds or retain shares of the Funds in their clients’ accounts, Invesco Affiliates benefit from the incremental
management and other fees paid to Invesco Affiliates by the Funds with respect to those assets.
The
Funds’ transfer agent may make payments to certain financial intermediaries
for certain administrative services, including record keeping and sub-accounting of shareholder accounts pursuant to a sub-transfer agency,
omnibus account service or sub-accounting agreement. All fees payable by Invesco Affiliates under this category of services are charged
back to the Funds, subject to certain limitations approved by the Board.
You
can find further details in the Fund’s SAI about these payments and the
services provided by financial intermediaries. In certain cases these payments could be significant to the financial intermediaries. Your
financial adviser may charge you additional fees or commissions other than those disclosed in this prospectus. You can ask your financial
adviser about any payments it receives from Invesco Affiliates or the Funds, as well as about fees and/or commissions it charges.
Important
Notice Regarding Delivery of Security Holder Documents
To
reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address
(Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not
want the mailing of these documents to be combined with those for other members of your household, please contact the Funds’ transfer
agent at 800-959-4246 or contact your financial institution. The Funds’ transfer agent will begin sending you individual copies
for each account within thirty days after receiving your request.
A-27 The
Invesco Funds
Obtaining Additional Information
More information
may be obtained free of charge upon request. The SAI, a current version of which is on file with the SEC, contains more details about
the Fund and is incorporated by reference into this prospectus (is legally a part of this prospectus). Annual and semi-annual reports
to shareholders contain additional information about the Fund’s investments. The Fund’s annual report also discusses the market
conditions and investment strategies that significantly affected the Fund’s performance during its last fiscal year. The Fund also
files its complete schedule of portfolio holdings with the SEC for the 1st and 3rd quarters of each fiscal year as an exhibit to its reports
on Form N-PORT.
If
you have questions about an Invesco Fund or your account, or you wish to obtain a free copy of the Fund’s current SAI, annual or
semi-annual reports or Form N-PORT, please contact us.
|
By
Mail: |
Invesco
Investment Services, Inc.
P.O.
Box 219078
Kansas
City, MO 64121-9078 |
|
By
Telephone: |
(800)
959-4246 |
|
On
the Internet: |
You
can send us a request by e-mail or
download
prospectuses, SAIs, annual or
semi-annual
reports via our website:
www.invesco.com/us
|
Reports
and other information about the Fund are available on the EDGAR Database on the SEC's Internet site at http://www.sec.gov, and copies
of this information may be obtained, after paying a duplicating fee, by electronic request at the following e-mail address: publicinfo@sec.gov.
|
Invesco Senior
Floating Rate Fund
SEC 1940 Act file
number: 811-09913 |
|
invesco.com/us
|
O-SFLR-PRO-1
|
Prospectus
December
16,
2022
Class:
A (ISHAX ), C (ISHCX ),
Y (ISHYX ), R5 (ISHFX ),
R6 (ISHSX )
Invesco
Short Duration High Yield Municipal 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.
Table of Contents
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A-1
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A-1
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A-3
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A-3
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A-10
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A-11
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A-13
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A-15
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A-17
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A-17
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A-18
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A-21
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A-23
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A-25
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A-26
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A-27
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Back
Cover |
Invesco
Short Duration High Yield Municipal Fund
The
Fund’s investment objective is to seek federal tax-exempt current income and taxable 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 $100,000
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:
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A
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C
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Y
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R5
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R6
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Maximum
Sales Charge (Load) Imposed on Purchases
(as
a percentage of offering price) |
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Maximum
Deferred Sales Charge (Load) (as a
percentage
of original purchase price or redemption
proceeds,
whichever is less) |
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Class:
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A
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C
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Y
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R5
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R6
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Management
Fees |
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Distribution
and/or Service (12b-1) Fees |
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Other
Expenses |
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Interest
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Total
Other Expenses |
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Total
Annual Fund Operating Expenses |
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1
The
Example assumes that you invest $10,000 in the Fund for the time periods
indicated and then redeem all of your shares at the end of those periods. This Example does not include commissions and/or other forms
of compensation that investors may pay on transactions in Class Y and Class R6 shares. The Example also assumes that your investment has
a 5% return each year and that the Fund’s operating expenses remain the same.
Although
your actual costs may be higher or lower, based on these assumptions,
your costs would be:
|
|
1
Year |
3
Years |
5
Years |
10
Years |
|
Class
A |
$
|
$
|
$
|
$
|
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| ||||
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Class
C |
$
|
$
|
$
|
$
|
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Class
Y |
$
|
$
|
$
|
$
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Class
R5 |
$
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$
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$
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$
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Class
R6 |
$
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$
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$
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$
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|
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1
Year |
3
Years |
5
Years |
10
Years |
|
Class
A |
$
|
$
|
$
|
$
|
|
| ||||
|
Class
C |
$
|
$
|
$
|
$
|
|
| ||||
|
Class
Y |
$
|
$
|
$
|
$
|
|
| ||||
|
Class
R5 |
$
|
$
|
$
|
$
|
|
| ||||
|
Class
R6 |
$
|
$
|
$
|
$
|
|
| ||||
Under
normal market conditions, the Fund invests at least 80% of its net assets (plus any borrowings for investment purposes) in municipal securities
at the time of investment. The policy stated in the foregoing sentence is a fundamental policy of the Fund and may not be changed without
shareholder approval of a majority of the Fund’s outstanding voting securities, as defined in the Investment Company Act of 1940,
as amended (Investment Company Act of 1940 or 1940 Act). In complying with this 80% investment requirement, the Fund may invest in derivatives
and other instruments that have economic characteristics similar to the Fund’s direct investments that are counted toward the 80%
investment requirement.
Municipal
securities include debt obligations of states, territories or possessions
of the United States and the District of Columbia and their political subdivisions, agencies and instrumentalities, the interest on which
is exempt from federal income tax, at the time of issuance, in the opinion of bond counsel of the issuer or other counsel to the issuers
of such securities.
The
principal types of municipal debt securities purchased by the Fund are
revenue obligations and general obligations. To meet its investment objective, the Fund invests in different types of general obligation
and revenue obligation securities, including fixed and variable rate securities, municipal notes, variable rate demand notes, municipal
leases, custodial receipts, and participation certificates. The Fund may invest in these and other types of municipal securities. Under
normal market conditions, the Fund invests primarily in municipal securities classified as revenue bonds.
Invesco
Advisers, Inc. (Invesco or the Adviser) generally seeks to achieve the
Fund’s investment objective by investing at least 75% of its net assets in higher yielding municipal securities, specifically medium-
and lower-grade municipal securities. Investment grade securities are: (i) securities rated BBB- or higher by S&P Global Ratings (S&P)
or Baa3 or higher by Moody’s Investors Service, Inc. (Moody’s) or an equivalent rating by another nationally recognized statistical
rating organization (NRSRO), (ii) securities with comparable short-term NRSRO ratings, or (iii) unrated securities determined by the Adviser
to be of comparable quality, each at the time of purchase. Medium- and lower-grade municipal securities are securities rated by S&P
or Fitch, Inc. (Fitch) as BBB+ through D (inclusive) for bonds or SP-2 or lower for notes; by Moody’s as Baa1 through D (inclusive)
for bonds or MIG3 or VMIG3 or lower for notes; or unrated municipal securities determined by the Adviser to be of comparable quality,
each at the time of purchase. Medium- and lower-grade securities are, therefore, inclusive of some securities rated investment grade.
Securities rated below investment grade are commonly referred to as junk bonds.
At
times, the market conditions in the municipal securities markets may be
such that the Adviser may invest in higher-grade issues, particularly when the difference in returns between quality classifications is
very narrow or when the Adviser expects interest rates to increase. Higher-grade
1 Invesco
Short Duration High Yield Municipal Fund
securities
are securities that are rated higher than medium- or lower-grade securities by Moody’s, S&P, or Fitch, or considered by the
Adviser to be of comparable quality, including municipal securities rated A-, SP-1 or higher by S&P or rated A3, MIG2, VMIG2 or higher
by Moody’s and in tax-exempt commercial paper rated A-3 or higher by S&P or rated P-3 or higher by Moody’s or in unrated
securities determined by the Adviser to be of comparable quality.
The
Fund may invest more than 25% of its net assets in a segment of the
municipal securities market with similar characteristics if the Adviser determines that the yields available from obligations in a particular
segment justify the additional risks of a larger investment in such segment. The Fund may not, however, invest more than 25% of its net
assets in industrial development revenue bonds issued for companies in the same industry.
The
Fund has no policy limiting its investments in municipal securities whose
issuers are located in the same state. However, it is not the present intention of the Fund to invest more than 25% of the value of its
net assets in issuers located in the same state.
The
Fund can invest up to 20% of its net assets (plus borrowings for investment
purposes) in investments that generate income subject to income taxes. Taxable investments include, for example, hedging instruments,
repurchase agreements, and many of the types of securities the Fund would buy for temporary defensive purposes. The Fund does not anticipate
investing substantial amounts of its assets in taxable investments under normal market conditions or as part of its normal trading strategies
and policies.
Under
normal market conditions, the Fund may invest all or a substantial
portion of its assets in municipal securities that are subject to the federal alternative minimum tax. From time to time, the Fund temporarily
may invest up to 10% of its net assets in tax exempt money market funds and such instruments will be treated as investments in municipal
securities.
The
Fund may invest in illiquid or thinly traded securities. The Fund may also
invest in securities that are subject to resale restrictions such as those contained in Rule 144A promulgated under the Securities Act
of 1933, as amended. The Fund’s investments may include securities that do not produce immediate cash income, such as zero coupon
securities and pay-in-kind securities. The Fund may purchase and sell securities on a when-issued and delayed delivery basis, which means
that a Fund buys or sells a security with payment and delivery taking place in the future.
The
Fund can invest in inverse floating rate municipal obligations issued in
connection with tender option bond programs to generate leverage.
The
Fund can invest in derivative instruments, including futures contracts
and swap contracts. The Fund can use futures contracts, including interest rate futures, to reduce exposure to interest rate changes and
to manage duration.
The
Fund can use swap contracts, including interest rate swaps, to hedge
its exposure to interest rates.
The
Adviser buys and sells securities for the Fund’s portfolio with a view towards
seeking a high level of interest income exempt from federal income tax and selects securities that the Adviser believes entail reasonable
credit risk considered in relation to the investment policies of the Fund. As a result, the Fund will not necessarily invest in the highest
yielding municipal securities permitted by its investment policies if the Adviser determines that market risks or credit risks associated
with such investments would subject the Fund’s portfolio to undue risk.
The
Fund will attempt to maintain a dollar-weighted average portfolio duration
equal to or less than five years.
Decisions
to purchase or sell securities are determined by the relative value
considerations of the portfolio managers that factor in economic and credit-related fundamentals, market supply and demand, market dislocations
and situation-specific opportunities. The purchase or sale of securities may be related to a decision to alter the Fund’s macro
risk exposure (such as duration, yield curve positioning and sector exposure), a need to limit or reduce the Fund’s exposure to
a particular security or issuer, degradation of an issuer’s credit quality, or general liquidity needs of the
Fund.
The potential for realization of capital gains or losses resulting from possible changes in interest rates will not be a major consideration
and frequency of portfolio turnover generally will not be a limiting factor if the Adviser considers it advantageous to purchase or sell
securities.
The
Fund can borrow money to purchase additional securities, another form
of leverage. Although the amount of borrowing will vary from time to time, the amount of leveraging from borrowings will not exceed one-third
of the Fund’s total assets.
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, natural or environmental disasters, widespread disease or other public health issues, war, military conflict, acts of terrorism
or adverse investor sentiment generally. 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.
Debt
Securities Risk. The prices of debt securities held by the Fund
will be affected by changes in interest rates, the creditworthiness of the issuer and other factors. An increase in prevailing interest
rates typically causes the value of existing debt securities to fall and often has a greater impact on longer-duration debt securities
and higher quality debt securities. Falling interest rates will cause the Fund to reinvest the proceeds of debt securities that have been
repaid by the issuer at lower interest rates. Falling interest rates may also reduce the Fund’s distributable income because interest
payments on floating rate debt instruments held by the Fund will decline. The Fund could lose money on investments in debt securities
if the issuer or borrower fails to meet its obligations to make interest payments and/or to repay principal in a timely manner. Changes
in an issuer’s financial strength, the market’s perception of such strength or in the credit rating of the issuer or the security
may affect the value of debt securities. The Adviser’s credit analysis may fail to anticipate such changes, which could result in
buying a debt security at an inopportune time or failing to sell a debt security in advance of a price decline or other credit event.
Municipal
Securities Risk. The risk of a municipal obligation generally depends
on the financial and credit status of the issuer. Constitutional amendments, legislative enactments, executive orders, administrative
regulations, voter initiatives, and the issuer’s regional economic conditions may affect the municipal security’s value, interest
payments, repayment of principal and the Fund’s ability to sell the security. Failure of a municipal security issuer to comply with
applicable tax requirements may make income paid thereon taxable, resulting in a decline in the security’s value. In addition, there
could be changes in applicable tax laws or tax treatments that reduce or eliminate the current federal income tax exemption on municipal
securities or otherwise adversely affect the current federal or state tax status of municipal securities.
High
Yield Debt Securities (Junk Bond) Risk. Investments in high yield
debt securities (“junk bonds”) and other lower-rated securities will subject the Fund to substantial risk of loss. These securities
are considered to be speculative with respect to the issuer’s ability to pay interest and principal when due, are more susceptible
to default or decline in market value and
2 Invesco
Short Duration High Yield Municipal Fund
are less
liquid than investment grade debt securities. Prices of high yield debt securities tend to be very volatile.
Medium-
and Lower-Grade Municipal Securities Risk. Medium- and lower-grade
municipal securities generally involve more volatility and greater risks, including credit, market, liquidity and management risks, than
higher-grade securities. Furthermore, many issuers of medium- and lower-grade securities choose not to have a rating assigned to their
obligations. As such, the Fund’s portfolio may consist of a higher portion of unrated securities than an investment company investing
solely in higher-grade securities. Unrated securities may not be as attractive to as many buyers as are rated securities, which may have
the effect of limiting the Fund’s ability to sell such securities at the desired price.
Municipal
Issuer Focus Risk. The municipal issuers in which the Fund invests
may be located in the same geographic area or may pay their interest obligations from revenue of similar projects, such as hospitals,
airports, utility systems and housing finance agencies. This may make the Fund’s investments more susceptible to similar social,
economic, political or regulatory occurrences, making the Fund more susceptible to experience a drop in its share price than if the Fund
had been more diversified across issuers that did not have similar characteristics.
Unrated
Securities Risk. The investment adviser may internally assign ratings
to securities that are not rated by any nationally recognized statistical rating organization, after assessing their credit quality and
other factors, in categories similar to those of nationally recognized statistical rating organizations. There can be no assurance, nor
is it intended, that the investment adviser’s credit analysis process is consistent or comparable with the credit analysis process
used by a nationally recognized statistical rating organization. Unrated securities are considered “investment-grade” or “below-investment-grade”
if judged by the investment adviser to be comparable to rated investment-grade or below-investment-grade securities. The investment adviser’s
rating does not constitute a guarantee of the credit quality. In addition, some unrated securities may not have an active trading market
or may trade less actively than rated securities, which means that unrated securities may be difficult to sell promptly at an acceptable
price.
Investing
in U.S. Territories, Commonwealths and Possessions Risk. The Fund
also invests in obligations of the governments of U.S. territories, commonwealths and possessions such as Puerto Rico, the U.S. Virgin
Islands, Guam and the Northern Mariana Islands to the extent such obligations are exempt from regular federal individual and state
income taxes. Accordingly, the Fund may be adversely affected by local political, economic, social and environmental conditions and developments,
including natural disasters, within these U.S. territories, commonwealths and possessions affecting the issuers of such obligations.
Certain
of the municipalities in which the Fund invests, including Puerto Rico,
currently experience significant financial difficulties, which may include default, insolvency or bankruptcy. As a result, securities
issued by certain of these municipalities are currently considered below-investment-grade securities. A credit rating downgrade relating
to, default by, or insolvency or bankruptcy of, one or several municipal security issuers of a state, territory, commonwealth or possession
in which the Fund invests could affect the payment of principal and interest, the market values and marketability of many or all municipal
obligations of such state, territory, commonwealth or possession.
Alternative
Minimum Tax Risk. All or a portion of the Fund’s otherwise
tax-exempt income may be taxable to those shareholders subject to the federal alternative minimum tax.
Money
Market Fund Risk. Although
money market funds generally seek to preserve the value of an investment at $1.00 per share, the Fund may lose money by investing in money
market funds. A money market
fund's sponsor has no legal obligation to provide financial support to the money market fund. The
credit quality of a money market fund's holdings can change rapidly in certain markets, and the default of a single holding could have
an adverse impact on the money market fund's share price. A money
market
fund's share price can also be negatively affected during periods of high redemption pressures, illiquid markets and/or significant market
volatility.
Rule
144A Securities and Other Exempt Securities Risk. The market for
Rule 144A and other securities exempt from certain registration requirements typically is less active than the market for publicly-traded
securities. Rule 144A and other exempt securities, which are also known as privately issued securities, carry the risk that their liquidity
may become impaired and the Fund may be unable to dispose of the securities at a desirable time or price.
Restricted
Securities Risk. Limitations on the resale of restricted securities
may have an adverse effect on their marketability, and may prevent the Fund from disposing of them promptly at reasonable prices. There
can be no assurance that a trading market will exist at any time for any particular restricted security. Transaction costs may be higher
for restricted securities and such securities may be difficult to value and may have significant volatility.
Zero
Coupon or Pay-In-Kind Securities Risk. The value, interest rates,
and liquidity of non-cash paying instruments, such as zero coupon and pay-in-kind securities, are subject to greater fluctuation than
other types of securities. The higher yields and interest rates on pay-in-kind securities reflect the payment deferral and increased credit
risk associated with such instruments and that such investments may represent a higher credit risk than loans that periodically pay interest.
When-Issued,
Delayed Delivery and Forward Commitment Risks.
When-issued and delayed delivery transactions subject the Fund
to market risk because the value or yield of a security at delivery may be more or less than the purchase price or yield generally available
when delivery occurs, and counterparty risk because the Fund relies on the buyer or seller, as the case may be, to consummate the transaction.
These transactions also have a leveraging effect on the Fund because the Fund commits to purchase securities that it does not have to
pay for until a later date, which increases the Fund’s overall investment exposure and, as a result, its volatility.
Inverse
Floating Rate Obligations Risk. The price of inverse floating rate
obligations (inverse floaters) is expected to decline when interest rates rise, and generally will decline further than the price of a
bond with a similar maturity. The price of inverse floaters is typically more volatile than the price of bonds with similar maturities.
These risks can be particularly high if leverage is used in the formula that determines the interest payable by the inverse floater. Leverage
may make the Fund's returns more volatile and increase the risk of loss; and the value of, and income earned on, an inverse floater that
has a higher degree of leverage are more likely to be eliminated entirely under adverse market conditions. Additionally, these securities
may lose some or all of their principal and, in some cases, the Fund could lose money in excess of its investment.
Variable-Rate
Demand Notes Risk. The absence of an active secondary market for
certain variable and floating rate notes could make it difficult to dispose of these instruments, which could result in a loss.
Derivatives
Risk. The value of a derivative instrument depends largely on (and
is derived from) the value of an underlying security, currency, commodity, interest rate, index or other asset (each referred to as an
underlying asset). In addition to risks relating to the underlying assets, the use of derivatives may include other, possibly greater,
risks, including counterparty, leverage and liquidity risks. Counterparty risk is the risk that the counterparty to the derivative contract
will default on its obligation to pay the Fund the amount owed or otherwise perform under the derivative contract. Derivatives create
leverage risk because they do not require payment up front equal to the economic exposure created by holding a position in the derivative.
As a result, an adverse change in the value of the underlying asset could result in the Fund sustaining a loss that is substantially greater
than the amount invested in the derivative or the anticipated value of the underlying asset, which may make the Fund’s returns more
volatile and increase the risk of loss. Derivative instruments may also be less liquid than more traditional investments and the Fund
may
3 Invesco
Short Duration High Yield Municipal Fund
be unable
to sell or close out its derivative positions at a desirable time or price. This risk may be more acute under adverse market conditions,
during which the Fund may be most in need of liquidating its derivative positions. Derivatives may also be harder to value, less tax efficient
and subject to changing government regulation that could impact the Fund’s ability to use certain derivatives or their cost. Derivatives
strategies may not always be successful. For example, derivatives used for hedging or to gain or limit exposure to a particular market
segment may not provide the expected benefits, particularly during adverse market conditions.
Taxability
Risk. The Fund’s investments in municipal securities rely
on the opinion of the issuer’s bond counsel that the interest paid on those securities will not be subject to federal income tax.
Tax opinions are generally provided at the time the municipal security is initially issued. However, tax opinions are not binding on the
Internal Revenue Service or any court, and after the Fund buys a security, the Internal Revenue Service or a court may determine that
a bond issued as tax-exempt should in fact be taxable and the Fund’s dividends with respect to that bond might be subject to federal
income tax. In addition, income from tax-exempt municipal securities could be declared taxable because of unfavorable changes in tax laws,
adverse interpretations by the Internal Revenue Service or a court, or the non-compliant conduct of a bond issuer.
Changing
Fixed Income Market Conditions Risk. Increases in the federal funds
and equivalent foreign rates or other changes to monetary policy or regulatory actions may expose fixed income markets to heightened volatility
and reduced liquidity for certain fixed income investments, particularly those with longer maturities. It is difficult to predict the
impact of interest rate changes on various markets. In addition, decreases in fixed income dealer market-making capacity may also potentially
lead to heightened volatility and reduced liquidity in the fixed income markets. As a result, the value of the Fund’s investments
and share price may decline. Changes in central bank policies could also result in higher than normal redemptions by shareholders, which
could potentially increase the Fund’s portfolio turnover rate and transaction costs.
Borrowing
and Leverage Risk. The Fund can borrow up to one-third of the value
of its total assets (including the amount borrowed) from banks, as permitted by the Investment Company Act of 1940. It can use those borrowings
for a number of purposes, including for purchasing securities, which can create “leverage.” In that case, changes in the value
of the Fund’s investments will have a larger effect on its share price than if it did not borrow. Borrowing results in interest
payments to the lenders and related expenses. Borrowing for investment purposes might reduce the Fund’s return if the yield on the
securities purchased is less than those borrowing costs. The Fund may also borrow to meet redemption obligations, for temporary and emergency
purposes, or to unwind or contribute to trusts in connection with the Fund’s investment in inverse floaters (instruments also involving
the use of leverage), as described in this prospectus. The Fund currently participates in a line of credit with certain other Invesco
Funds for its borrowing.
Financial
Markets Regulatory Risk. Policy changes by the U.S. government
or its regulatory agencies and political events within the U.S. and abroad may, among other things, affect investor and consumer confidence
and increase volatility in the financial markets, perhaps suddenly and to a significant degree, which may adversely impact the Fund’s
operations, universe of potential investment options, and return potential.
Management
Risk. The Fund is actively managed and depends heavily on the Adviser’s
judgment about markets, interest rates or the attractiveness, relative values, liquidity, or potential appreciation of particular investments
made for the Fund’s portfolio. The Fund could experience losses if these judgments prove to be incorrect. Additionally, legislative,
regulatory, or tax developments may adversely affect management of the Fund and, therefore, the ability of the Fund to achieve its investment
objective.
Fund
performance reflects any applicable fee waivers and expense reimbursements.
Performance returns would be lower without applicable fee waivers and expense reimbursements.
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, 2021)
|
|
Inception
Date
|
1
Year
|
5
Years
|
Since
Inception
|
|
Class
A |
|
|
|
|
|
Return
Before Taxes |
|
|
|
|
|
Return
After Taxes on Distributions |
|
|
|
|
|
Return
After Taxes on Distributions and Sale of
Fund
Shares |
|
|
|
|
|
| ||||
|
Class
C |
|
|
|
|
|
| ||||
|
Class
Y |
|
|
|
|
|
| ||||
|
Class
R5 |
|
|
|
|
|
| ||||
|
Class
R6 |
|
|
|
|
|
| ||||
|
S&P
Municipal Bond High Yield Index deduction
for fees, expenses or taxes) |
|
|
|
|
|
| ||||
|
Custom
Invesco Short Duration High Yield
Municipal
Index (reflects no deduction for fees,
expenses
or taxes)2
|
|
|
|
|
|
| ||||
|
Lipper
High Yield Municipal Debt Funds Index |
|
|
|
|
|
| ||||
1
2
4 Invesco
Short Duration High Yield Municipal Fund
Management
of the Fund
Investment
Adviser: Invesco Advisers, Inc.
|
Portfolio
Managers |
Title
|
Length
of Service on the Fund |
|
Mark
Paris |
Portfolio
Manager |
2015
|
|
| ||
|
John
Connelly |
Portfolio
Manager |
2016
|
|
| ||
|
Tim
O'Reilly |
Portfolio
Manager |
2016
|
|
| ||
|
James
Phillips |
Portfolio
Manager |
2015
|
|
| ||
|
John
Schorle |
Portfolio
Manager |
2018
|
|
| ||
|
Julius
Williams |
Portfolio
Manager |
2015
|
|
| ||
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 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 primarily are exempt from regular federal income tax. All or a portion of these distributions, however, may
be subject to the federal alternative minimum tax and state and local taxes. The Fund may also make distributions that are taxable to
you as ordinary income or capital gains.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund, the Fund’s distributor
or its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict
of interest by influencing the
broker-dealer
or other intermediary and your salesperson or financial adviser to recommend the Fund over another investment. Ask your salesperson or
financial adviser or visit your financial intermediary’s website for more information.
Investment Objective(s), Strategies, Risks and Portfolio Holdings
Objective(s)
and Strategies
The
Fund’s investment objective is to seek federal tax-exempt current income and taxable capital appreciation. The Fund’s investment
objective may be changed by the Board of Trustees (the Board) without shareholder approval.
Under
normal market conditions, the Fund invests at least 80% of its net
assets (plus any borrowings for investment purposes) in municipal securities at the time of investment. The policy stated in the foregoing
sentence is a fundamental policy of the Fund and may not be changed without shareholder approval of a majority of the Fund’s outstanding
voting securities, as defined in the Investment Company Act of 1940, as amended (Investment Company Act of 1940 or 1940 Act). In complying
with this 80% investment requirement, the Fund may invest in derivatives and other instruments that have economic characteristics similar
to the Fund’s direct investments that are counted toward the 80% investment requirement.
Municipal
securities include debt obligations of states, territories or possessions
of the United States and the District of Columbia and their political subdivisions, agencies and instrumentalities, the interest on which
is exempt from federal income tax, at the time of issuance, in the opinion of bond counsel of the issuer or other counsel to the issuers
of such securities.
The
principal types of municipal debt securities purchased by the Fund are
revenue obligations and general obligations. Revenue obligations are usually payable only from the revenues derived from a particular
facility or class of facilities or, in some cases, from the proceeds of a special excise tax or other specific revenue source, but not
from the general taxing power. Revenue obligations may include industrial development, pollution control, public utility, housing, and
health care issues. Under normal market conditions, the Fund invests primarily in municipal securities classified as revenue bonds. General
obligation securities are secured by the issuer’s pledge of its faith, credit and taxing power for the payment of principal and
interest. To meet its investment objective, the Fund invests in different types of general obligation and revenue obligation securities,
including fixed and variable rate securities, municipal notes, variable rate demand notes, municipal leases, custodial receipts, and participation
certificates. The Fund may invest in these and other types of municipal securities.
The
Adviser generally seeks to achieve the Fund’s investment objective by
investing at least 75% of its net assets in higher yielding municipal securities, specifically medium- and lower-grade municipal securities.
Investment grade securities are: (i) securities rated BBB- or higher by S&P or Baa3 or higher by Moody’s or an equivalent rating
by another NRSRO, (ii) securities with comparable rated short-term NRSRO ratings, or (iii) unrated securities determined by the Adviser
to be of comparable quality, each at the time of purchase. Medium- and lower-grade municipal securities are securities rated by S&P
or Fitch as BBB+ through D (inclusive) for bonds or SP-2 or lower for notes; by Moody’s as Baa1 through D (inclusive) for bonds
or MIG3 or VMIG3 or lower for notes; or unrated municipal securities determined by the Adviser to be of comparable quality, each at the
time of purchase. Medium- and lower-grade securities are, therefore, inclusive of some securities rated investment grade. Securities rated
below investment grade are commonly referred to as junk bonds.
At
times, the market conditions in the municipal securities markets may be
such that the Adviser may invest in higher-grade issues, particularly when the difference in returns between quality classifications is
very narrow or when the Adviser expects interest rates to increase. Higher-grade
5 Invesco
Short Duration High Yield Municipal Fund
securities
are securities that are rated higher than medium- or lower-grade securities by Moody’s, S&P, or Fitch, or considered by the
Adviser to be of comparable quality, including municipal securities rated A-, SP-1 or higher by S&P or rated A3, MIG2, VMIG2 or higher
by Moody’s and in tax-exempt commercial paper rated A-3 or higher by S&P or rated P-3 or higher by Moody’s or in unrated
securities determined by the Adviser to be of comparable quality.
The
Fund may invest more than 25% of its net assets in a segment of the
municipal securities market with similar characteristics if the Adviser determines that the yields available from obligations in a particular
segment justify the additional risks of a larger investment in such segment. The Fund may not, however, invest more than 25% of its net
assets in industrial development revenue bonds issued for companies in the same industry.
The
Fund has no policy limiting its investments in municipal securities whose
issuers are located in the same state. However, it is not the present intention of the Fund to invest more than 25% of the value of its
net assets in issuers located in the same state.
The
Fund can invest up to 20% of its net assets (plus borrowings for investment
purposes) in investments that generate income subject to income taxes. Taxable investments include, for example, hedging instruments,
repurchase agreements, and many of the types of securities the Fund would buy for temporary defensive purposes. The Fund does not anticipate
investing substantial amounts of its assets in taxable investments under normal market conditions or as part of its normal trading strategies
and policies.
Under
normal market conditions, the Fund may invest all or a substantial
portion of its assets in municipal securities that are subject to the federal alternative minimum tax. From time to time, the Fund temporarily
may invest up to 10% of its net assets in tax exempt money market funds and such instruments will be treated as investments in municipal
securities.
The
Fund may invest in illiquid or thinly traded securities. The Fund may also
invest in securities that are subject to resale restrictions such as those contained in Rule 144A promulgated under the Securities Act
of 1933, as amended. The Fund’s investments may include securities that do not produce immediate cash income, such as zero coupon
securities and pay-in-kind securities. Zero coupon securities are debt securities that do not entitle the holder to any periodic payment
of interest prior to maturity or a specified date when the securities begin paying current interest. Pay-in-kind securities are debt securities
that pay interest through the issuance of additional securities.
The
Fund may purchase and sell securities on a when-issued and delayed
delivery basis, which means that a Fund buys or sells a security with payment and delivery taking place in the future. The payment obligation
and the interest rate are fixed at the time a Fund enters into the commitment. No income accrues on such securities until the date a Fund
actually takes delivery of the securities.
The
Fund can invest in inverse floating rate municipal obligations issued in
connection with tender option bond programs to generate leverage. Inverse floating rate obligations are variable rate debt instruments
that pay interest at rates that move in the opposite direction of prevailing interest rates. Inverse floating rate obligations in which
the Fund may invest include derivative instruments such as residual interest bonds, tender option bonds or municipal bond trust certificates.
Such instruments are typically created by a special purpose trust (the TOB Trust) that holds long-term fixed rate bonds, which are contributed
by the Fund (the underlying security), and sells two classes of beneficial interests: short-term floating rate interests, which are sold
to or held by third party investors, and inverse floating residual interests, which are purchased by the Fund. Because the interest rate
paid to holders of such obligations is generally determined by subtracting a variable or floating rate from a predetermined amount, the
interest rate paid to holders of such obligations will decrease as such variable or floating rate increases and increase as such variable
or floating rate decreases.
The
Fund can invest in derivative instruments, including futures contracts
and swap contracts. The Fund can use futures contracts, including
interest
rate futures, to reduce exposure to interest rate changes and to manage duration.
A
futures contract is a standardized agreement between two parties to buy
or sell a specified quantity of an underlying asset at a specified price at a specified future time. The value of a futures contract tends
to increase and decrease in tandem with the value of the underlying asset. Futures contracts are bilateral agreements, with both the purchaser
and the seller equally obligated to complete the transaction. Depending on the terms of the particular contract, futures contracts are
settled by purchasing an offsetting contract, physically delivering the underlying asset on the settlement date or paying a cash settlement
amount on the settlement date.
A
swap contract is an agreement between two parties pursuant to which
the parties exchange payments at specified dates on the basis of a specified notional amount, with the payments calculated by reference
to specified securities, indexes, reference rates, commodities, currencies or other assets. The notional amount of a swap is based on
the nominal or face amount of a reference asset that is used to calculate payments made on that swap; the notional amount typically is
not exchanged between counterparties. The parties to the swap use variations in the value of the underlying asset to calculate payments
between them through the life of the swap. The Fund can use swap contracts, including interest rate swaps, to hedge its exposure to interest
rates.
The
Adviser buys and sells securities for the Fund’s portfolio with a view towards
seeking a high level of interest income exempt from federal income tax and selects securities that the Adviser believes entail reasonable
credit risk considered in relation to the investment policies of the Fund. As a result, the Fund will not necessarily invest in the highest
yielding municipal securities permitted by its investment policies if the Adviser determines that market risks or credit risks associated
with such investments would subject the Fund’s portfolio to undue risk.
The
Fund will attempt to maintain a dollar-weighted average portfolio duration
equal to or less than five years. Duration is a measure of volatility expressed in years and represents the anticipated percent change
in a bond’s price at a single point in time for a 1% change in yield. As duration increases, volatility increases as applicable
interest rates change.
Decisions
to purchase or sell securities are determined by the relative value
considerations of the portfolio mangers that factor in economic and credit-related fundamentals, market supply and demand, market dislocations
and situation-specific opportunities. The purchase or sale of securities may be related to a decision to alter the Fund’s macro
risk exposure (such as duration, yield curve positioning and sector exposure), a need to limit or reduce the Fund’s exposure to
a particular security or issuer, degradation of an issuer’s credit quality, or general liquidity needs of the Fund. The potential
for realization of capital gains or losses resulting from possible changes in interest rates will not be a major consideration and frequency
of portfolio turnover generally will not be a limiting factor if the Adviser considers it advantageous to purchase or sell securities.
The
Fund can borrow from banks, a technique referred to as “leverage,” in
amounts up to one-third of the Fund’s total assets (including the amount borrowed) less all liabilities and indebtedness other than
borrowings. The Fund can use those borrowings for investment-related purposes such as purchasing securities believed to be desirable by
the Adviser when available, funding amounts necessary to unwind or “collapse” trusts that issued “inverse floaters”
to the Fund (an investment vehicle used by the Fund as described in this prospectus), or to contribute to such trusts to enable them to
meet tenders of their other securities by the holders. The Fund currently participates in a line of credit with certain other Invesco
Funds for those purposes. The Fund may also borrow to meet redemption obligations or for temporary and emergency purposes.
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.
6 Invesco
Short Duration High Yield Municipal Fund
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 Fund and Its 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 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.
◾
COVID-19.
The “COVID-19” strain of coronavirus has resulted in instances of market closures and dislocations, extreme volatility, liquidity
constraints and increased trading costs. Efforts to contain its spread have resulted in travel restrictions, disruptions of healthcare
systems, business operations (including business closures) and supply chains, layoffs, lower consumer demand and employee availability,
and defaults and credit downgrades, among other significant economic impacts that have disrupted global economic activity across many
industries. Such economic impacts may exacerbate other pre-existing political, social and economic risks locally or globally and cause
general concern and uncertainty. The full economic impact and ongoing effects of COVID-19 (or other future
epidemics
or pandemics) at the macro-level and on individual businesses are unpredictable and may result in significant and prolonged effects on
the Fund’s performance.
Debt
Securities Risk. The prices of debt securities held by the Fund
will be affected by changes in interest rates, the creditworthiness of the issuer and other factors. An increase in prevailing interest
rates typically causes the value of existing debt securities to fall and often has a greater impact on longer-duration debt securities
and higher quality debt securities. Falling interest rates will cause the Fund to reinvest the proceeds of debt securities that have been
repaid by the issuer at lower interest rates. Falling interest rates may also reduce the Fund’s distributable income because interest
payments on floating rate debt instruments held by the Fund will decline. The Fund could lose money on investments in debt securities
if the issuer or borrower fails to meet its obligations to make interest payments and/or to repay principal in a timely manner. If an
issuer seeks to restructure the terms of its borrowings or the Fund is required to seek recovery upon a default in the payment of interest
or the repayment of principal, the Fund may incur additional expenses. Changes in an issuer’s financial strength, the market’s
perception of such strength or in the credit rating of the issuer or the security may affect the value of debt securities. The Adviser’s
credit analysis may fail to anticipate such changes, which could result in buying a debt security at an inopportune time or failing to
sell a debt security in advance of a price decline or other credit event.
Municipal
Securities Risk. The risk of a municipal obligation generally depends
on the financial and credit status of the issuer. Constitutional amendments, legislative enactments, executive orders, administrative
regulations, voter initiatives, and the issuer’s regional economic conditions may affect the municipal security’s value, interest
payments, repayment of principal and the Fund’s ability to sell the security. Municipal obligations may be more susceptible to downgrades
or defaults during recessions or similar periods of economic stress. Municipal securities structured as revenue bonds are generally not
backed by the taxing power of the issuing municipality but rather the revenue from the particular project or entity for which the bonds
were issued. If the Internal Revenue Service determines that an issuer of a municipal security has not complied with applicable tax requirements,
interest from the security could be treated as taxable, which could result in a decline in the security’s value. In addition, there
could be changes in applicable tax laws or tax treatments that reduce or eliminate the current federal income tax exemption on municipal
securities or otherwise adversely affect the current federal or state tax status of municipal securities.
High
Yield Debt Securities (Junk Bond) Risk. The Fund’s investments
in high yield debt securities (commonly referred to as “junk bonds”) and other lower-rated securities will subject the Fund
to substantial risk of loss. These securities are considered to be speculative with respect to the issuer’s ability to pay interest
and principal when due and are more susceptible to default or decline in market value due to adverse economic, regulatory, political or
company developments than higher rated or investment grade securities. Prices of high yield debt securities tend to be very volatile.
These securities are less liquid than investment grade debt securities and may be difficult to sell at a desirable time or price, particularly
in times of negative sentiment toward high yield securities.
Medium-
and Lower-Grade Municipal Securities Risk. Securities which are
in the medium- and lower-grade categories generally offer higher yields than are offered by higher-grade securities of similar maturity,
but they also generally involve more volatility and greater risks, such as greater credit risk, market risk, liquidity risk and management
risk. Furthermore, many issuers of medium- and lower-grade securities choose not to have a rating assigned to their obligations by any
nationally recognized statistical rating organization. As such, the Fund’s portfolio may consist of a higher portion of unrated
securities as compared with an investment company that invests solely in higher-grade securities. Unrated securities may not be as attractive
to as many buyers as are rated securities, a factor which may make unrated securities less able to be sold at a desirable time or price.
These factors
7 Invesco
Short Duration High Yield Municipal Fund
may
limit the ability of the Fund to sell such securities at the desired price
either to meet redemption requests or in response to changes in
the economy or the financial markets.
Municipal
Issuer Focus Risk. The municipal issuers in which the Fund invests
may be located in the same geographic area or may pay their interest obligations from revenue of similar projects, such as hospitals,
airports, utility systems and housing finance agencies. This may make the Fund’s investments more susceptible to similar social,
economic, political or regulatory occurrences, making the Fund more susceptible to experience a drop in its share price than if the Fund
had been more diversified across issuers that did not have similar characteristics. From time to time, the Fund’s investments may
include securities that alone or together with securities held by other funds or accounts managed by the Adviser, represents a major portion
or all of an issue of municipal securities. Because there may be relatively few potential purchasers for such investments and, in some
cases, there may be contractual restrictions on resales, the Fund may find it more difficult to sell such securities at a desirable time
or price.
Unrated
Securities Risk. The investment adviser may internally assign ratings
to securities that are not rated by any nationally recognized statistical rating organization, after assessing their credit quality and
other factors, in categories similar to those of nationally recognized statistical rating organizations. There can be no assurance, nor
is it intended, that the investment adviser’s credit analysis process is consistent or comparable with the credit analysis process
used by a nationally recognized statistical rating organization. Unrated securities are considered “investment-grade” or “below-investment-grade”
if judged by the investment adviser to be comparable to rated investment-grade or below-investment-grade securities. The investment adviser’s
rating does not constitute a guarantee of the credit quality. In addition, some unrated securities may not have an active trading market
or may trade less actively than rated securities, which means that the Fund might have difficulty selling them promptly at an acceptable
price.
In
evaluating the credit quality of a particular security, whether rated or unrated,
the investment adviser will normally take into consideration a number of factors such as, if applicable, the financial resources of the
issuer, the underlying source of funds for debt service on a security, the issuer’s sensitivity to economic conditions and trends,
any operating history of the facility financed by the obligation, the degree of community support for the financed facility, the capabilities
of the issuer’s management, and regulatory factors affecting the issuer or the particular facility.
A
reduction in the rating of a security after the Fund buys it will not require
the Fund to dispose of the security. However, the investment adviser will evaluate such downgraded securities to determine whether to
keep them in the Fund’s portfolio.
Investing
in U.S. Territories, Commonwealths and Possessions Risk. The Fund
also invests in obligations of the governments of U.S. territories, commonwealths and possessions such as Puerto Rico, the U.S. Virgin
Islands, Guam and the Northern Mariana Islands to the extent such obligations are exempt from regular federal individual and state income
taxes. Accordingly, the Fund may be adversely affected by local political, economic, social and environmental conditions and developments,
including natural disasters, within these U.S. territories, commonwealths and possessions affecting the issuers of such obligations. A
discussion of the special considerations relating to the Fund’s municipal obligations and other factors or economic conditions in
those territories, commonwealths or possessions is provided in an appendix to the SAI.
Alternative
Minimum Tax Risk. Although the interest received from municipal
securities generally is exempt from federal income tax, the Fund may invest all or a portion of its total assets in municipal securities
subject to the federal alternative minimum tax. Accordingly, investment in the Fund could cause shareholders to be subject to, or result
in an increased liability under, the federal alternative minimum tax.
Money
Market Fund Risk. Although money market funds generally seek to
preserve the value of an investment at $1.00 per share, the Fund may lose money by investing in money market funds. A money market fund's
sponsor has no legal obligation to provide financial support to the money market fund. The credit quality of a money market fund's holdings
can change rapidly in certain markets, and the default of a single holding could have an adverse impact on the money market fund's share
price. A money market fund's share price can also be negatively affected during periods of high redemption pressures, illiquid markets
and/or significant market volatility. To the extent the Fund holds cash or cash equivalents rather than securities in which it primarily
invests or uses to manage risk, the Fund may not achieve its investment objectives and may underperform the Fund’s benchmark or
other funds that remain fully invested. The U.S. Securities and Exchange Commission (SEC) and other government agencies continue to review
the regulation of money market funds. As of the date of this prospectus, the SEC has proposed changes to the rules that govern money market
funds. These changes and developments, if implemented, may affect the investment strategies, performance, yield, operating expenses and
continued viability of a fund.
Rule
144A Securities and Other Exempt Securities Risk. The Fund may
invest in Rule 144A securities and other types of exempt securities, which are not registered for sale pursuant to an exemption from registration
under the Securities Act of 1933, as amended. These securities are also known as privately issued securities, and typically may be resold
only to qualified institutional buyers, or in a privately negotiated transaction, or to a limited number of purchasers, or in limited
quantities after they have been held for a specified period of time and other conditions are met for an exemption from registration. Although
such securities may be determined to be liquid in accordance with the requirements of Rule 22e-4 under the Investment Company Act of 1940,
as amended, if there are an insufficient number of qualified institutional buyers interested in purchasing such securities at a particular
time, the Fund may have difficulty selling such securities at a desirable time or price. As a result, the Fund’s investment in such
securities may be subject to increased liquidity risk. In addition, the issuers of Rule 144A securities may require their qualified institutional
buyers (such as the Fund) to keep certain offering information confidential, which could adversely affect the ability of the Fund to sell
such securities.
Restricted
Securities Risk. Limitations on the resale of restricted securities
may have an adverse effect on their marketability, and may prevent the Fund from disposing of them promptly at reasonable prices. There
can be no assurance that a trading market will exist at any time for any particular restricted security. Transaction costs may be higher
for restricted securities. Also, restricted securities may be difficult to value because market quotations may not be readily available,
and the securities may have significant volatility. In addition, the Fund may get only limited information about the issuer of a restricted
security and therefore may be less able to predict a loss.
Zero
Coupon or Pay-In-Kind Securities Risk. Zero coupon and pay-in-kind
securities may be subject to greater fluctuation in value and less liquidity in the event of adverse market conditions than comparably
rated securities paying cash interest at regular interest payment periods. Prices on non-cash-paying instruments may be more sensitive
to changes in the issuer’s financial condition, fluctuation in interest rates and market demand/supply imbalances than cash-paying
securities with similar credit ratings, and thus may be more speculative. Investors may purchase zero coupon and pay-in-kind securities
at a price below the amount payable at maturity. Because such securities do not entitle the holder to any periodic payments of interest
prior to maturity, this prevents any reinvestment of interest payments at prevailing interest rates if prevailing interest rates rise.
The higher yields and interest rates on pay-in-kind securities reflect the payment deferral and increased credit risk associated with
such instruments and that such investments may represent a higher credit risk than coupon loans. Pay-in-kind securities may have a potential
variability in valuations because their continuing accruals require continuing judgments about the
8 Invesco
Short Duration High Yield Municipal Fund
collectability
of the deferred payments and the value of any associated collateral. Special tax considerations are associated with investing in certain
lower-grade securities, such as zero coupon or pay-in-kind securities.
When-Issued,
Delayed Delivery and Forward Commitment Risks.
When-issued and delayed delivery transactions are subject to market
risk as the value or yield of a security at delivery may be more or less than the purchase price or the yield generally available on securities
when delivery occurs. In addition, the Fund is subject to counterparty risk because it relies on the buyer or seller, as the case may
be, to consummate the transaction, and failure by the counterparty to complete the transaction may result in the Fund missing the opportunity
of obtaining a price or yield considered to be advantageous. These transactions have a leveraging effect on the Fund because the Fund
commits to purchase securities that it does not have to pay for until a later date. These investments therefore increase the Fund’s
overall investment exposure and, as a result, its volatility. Typically, no income accrues on securities the Fund has committed to purchase
prior to the time delivery of the securities is made.
Inverse
Floating Rate Obligations Risk. Inverse floating rate obligations
(inverse floaters) represent interests in bonds with interest rates that vary inversely to changes in short-term rates. As short-term
rates rise, inverse floaters produce less income, and as short-term rates decline, inverse floaters produce more income. As a result,
the price of inverse floaters is expected to decline when interest rates rise, and generally will decline further than the price of a
bond with a similar maturity. The price of inverse floaters is typically more volatile than the price of bonds with similar maturities.
Interest rate risk and price volatility of inverse floaters can be particularly high if leverage is used in the formula that determines
the interest payable by the inverse floater. Leverage may make the Fund’s returns more volatile and increase the risk of loss. The
Fund generally invests in inverse floaters that include embedded leverage, thus exposing the Fund to greater risks and increased costs.
The market value of a “leveraged” inverse floater will fluctuate in response to changes in market rates of interest to a greater
extent than the value of an unleveraged investment, and the value of, and income earned on, an inverse floater that has a higher degree
of leverage are more likely to be eliminated entirely under adverse market conditions. The use of short-term floating rate obligations
may require the Fund to segregate or earmark cash or liquid assets to cover its obligations. Securities so segregated or earmarked will
be unavailable for sale by the Fund (unless replaced by other securities qualifying for segregation requirements), which may limit the
Fund’s flexibility and may require that the Fund sell other portfolio investments at a time when it may be disadvantageous to sell
such assets. Upon the occurrence of certain adverse events, the special purpose trust that created the inverse floater may
be collapsed and the underlying security liquidated, and the Fund could lose the entire amount of its investment in the inverse floater
and may, in some cases, be contractually required to pay the negative difference, if any, between the liquidation value of the underlying
security and the principal amount of the short-term floating rate interests. Recent regulatory changes have prompted changes to the structure
of tender option bonds. The Fund’s enhanced role under the revised structure may increase the Fund’s operational and regulatory
risk.
Variable-Rate
Demand Notes Risk. The absence of an active secondary market for
certain variable and floating rate notes could make it difficult to dispose of these instruments, and a portfolio could suffer a loss
if the issuer defaults during periods in which a portfolio is not entitled to exercise its demand rights.
Derivatives
Risk. A derivative is an instrument whose value depends largely
on (and is derived from) the value of an underlying security, currency, commodity, interest rate, index or other asset (each referred
to as an underlying asset). In addition to risks relating to the underlying assets, the use of derivatives may include other, possibly
greater, risks, which are described below.
◾
Counterparty
Risk. Certain derivatives do not trade on an established exchange
(referred to as over-the-counter (OTC) derivatives) and are
simply
financial contracts between the Fund and a counterparty. When the Fund is owed money on an OTC derivative, the Fund is dependent on the
counterparty to pay or, in some cases, deliver the underlying asset, unless the Fund can otherwise sell its derivative contract to a third
party prior to its expiration. Many counterparties are financial institutions such as banks and broker-dealers and their creditworthiness
(and ability to pay or perform) may be negatively impacted by factors affecting financial institutions generally. In addition, in the
event that a counterparty becomes bankrupt or insolvent, the Fund’s ability to recover the collateral that the Fund has on deposit
with the counterparty could be delayed or impaired. For derivatives traded on a centralized exchange, the Fund generally is dependent
upon the solvency of the relevant exchange clearing house (which acts as a guarantor for each contractual obligation under such derivatives)
for payment on derivative instruments for which the Fund is owed money.
◾
Leverage
Risk. Many derivatives do not require a payment up front equal
to the economic exposure created by holding a position in the derivative, which creates a form of leverage. As a result, an adverse change
in the value of the underlying asset could result in the Fund sustaining a loss that is substantially greater than the amount invested
in the derivative or the anticipated value of the underlying asset. In addition,
some derivatives have the potential for unlimited loss, regardless
of the size of the Fund’s initial investment. Leverage may therefore make the Fund’s returns more volatile and increase
the risk of loss. In certain market conditions, losses on derivative
instruments can grow larger while the value of the Fund’s other assets fall, resulting in the Fund’s derivative positions
becoming a larger percentage of the Fund’s investments.
◾
Liquidity
Risk. There is a smaller pool of buyers and sellers for certain
derivatives, particularly OTC derivatives, than more traditional investments such as stocks. These buyers and sellers are often financial
institutions that may be unable or unwilling to buy or sell derivatives during times of financial or market stress. Derivative instruments
may therefore be less liquid than more traditional investments and the Fund may be unable to sell or exit its derivative positions at
a desirable time or price. This risk may be more acute under adverse market conditions, during which the Fund may be most in need of liquidating
its derivative positions. To the extent that the Fund is unable to exit a derivative position because of market illiquidity, the Fund
may not be able to prevent further losses of value in its derivatives holdings and the liquidity of the Fund and its ability to meet redemption
requests may be impaired to the extent that a substantial portion of the Fund’s otherwise liquid assets must be used as margin.
Another consequence of illiquidity is that the Fund may be required to hold a derivative instrument to maturity and take or make delivery
of the underlying asset that the Adviser would otherwise avoid.
◾
Futures
Contracts Risk. The volatility of futures contracts prices has
been historically greater than the volatility of stocks and bonds. The liquidity of the futures market depends on participants entering
into offsetting transactions rather than making or taking delivery. To the extent participants decide to make or take delivery, liquidity
in the futures market could be reduced. In addition, futures exchanges often impose a maximum permissible price movement on each futures
contract for each trading session. The Fund may be disadvantaged if it is prohibited from executing a trade outside the daily permissible
price movement.
◾
Swap
Transactions Risk. Under U.S. financial reform legislation enacted
in 2010, certain types of swaps are required to be executed on a regulated market and cleared through a central clearing house counterparty,
which may entail further risks and costs for the Fund. Swap agreements are privately negotiated in the over-the-counter market and
may be entered into as a bilateral contract or may be
9 Invesco
Short Duration High Yield Municipal Fund
centrally
cleared. In a centrally cleared swap, immediately following execution of the swap agreement, the swap agreement is submitted for clearing
to a central clearing house counterparty, and the Fund faces the central clearing house counterparty by means of an account with a futures
commission merchant that is a member of the clearing house.
◾
Other
Risks. Compared to other types of investments, derivatives may
be harder to value and may also be less tax efficient, as described under the “Taxes” section of the prospectus. In addition,
changes in government regulation of derivative instruments could affect the character, timing and amount of the Fund’s taxable income
or gains, and may limit or prevent the Fund from using certain types of derivative instruments as a part of its investment strategy, which
could make the investment strategy more costly to implement or require the Fund to change its investment strategy. Derivatives strategies
may not always be successful. For example, to the extent that the Fund uses derivatives for hedging or to gain or limit exposure to a
particular market or market segment, there may be imperfect correlation between the value of the derivative instrument and the value of
the instrument being hedged or the relevant market or market segment, in which case the Fund may not realize the intended benefits. There
is also the risk that during adverse market conditions, an instrument which would usually operate as a hedge provides no hedging benefits
at all. The Fund’s use of derivatives may be limited by the requirements for taxation of the Fund as a regulated investment company.
Taxability
Risk. The Fund’s investments in municipal securities rely
on the opinion of the issuer’s bond counsel that the interest paid on those securities will not be subject to federal income tax.
Tax opinions are generally provided at the time the municipal security is initially issued. However, tax opinions are not binding on the
Internal Revenue Service or any court, and after the Fund buys a security, the Internal Revenue Service or a court may determine that
a bond issued as tax-exempt should in fact be taxable and the Fund’s dividends with respect to that bond might be subject to federal
income tax. In addition, income from tax-exempt municipal securities could be declared taxable because of unfavorable changes in tax laws,
adverse interpretations by the Internal Revenue Service or a court, or the non-compliant conduct of a bond issuer.
Changing
Fixed Income Market Conditions Risk. Increases in the federal funds
and equivalent foreign rates or other changes to monetary policy or regulatory actions may expose fixed income markets to heightened volatility
and reduced liquidity for certain fixed income investments, particularly those with longer maturities. It is difficult to predict the
impact of interest rate changes on various markets. In addition, decreases in fixed income dealer market-making capacity may also potentially
lead to heightened volatility and reduced liquidity in the fixed income markets. As a result, the value of the Fund’s investments
and share price may decline. Changes in central bank policies could also result in higher than normal redemptions by shareholders, which
could potentially increase the Fund’s portfolio turnover rate and transaction costs and potentially lower the Fund’s performance
returns.
Borrowing
and Leverage Risk. Borrowing for leverage will subject the Fund
to greater costs (for interest payments to the lender, origination fees and related expenses) than funds that do not borrow for leverage
and these other purposes. The interest on borrowed money is an expense that might reduce the Fund’s yield, especially if the cost
of borrowing to buy securities exceeds the yield on the securities purchased with the proceeds of a loan. Using leverage may also make
the Fund’s share price more sensitive, i.e. volatile, to interest rate changes than if the Fund did not use leverage due to the
tendency to exaggerate the effect of any increase or decrease in the value of the Fund’s portfolio securities. The use of leverage
may also cause the Fund to liquidate portfolio positions when it may not be advantageous to do so to satisfy its obligations or meet segregation
requirements under the Investment Company Act of 1940.
Financial
Markets Regulatory Risk. Policy changes by the U.S. government
or its regulatory agencies and political events within the U.S. and abroad, changes to the monetary policy by the Federal Reserve or other
regulatory actions, the U.S. government’s inability at times to agree on a long-term budget and deficit reduction plan or other
legislation aimed at addressing financial or economic conditions, the threat of a federal government shutdown, and threats not to increase
or suspend the federal government’s debt limit, may affect investor and consumer confidence, increase volatility in the financial
markets, perhaps suddenly and to a significant degree, result in higher interest rates, and even raise concerns about the U.S. government’s
credit rating and ability to service its debt. Such changes and events may adversely impact the Fund’s operations, universe of potential
investment options, and return potential.
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 1555 Peachtree Street, N.E., Atlanta, Georgia 30309. The Adviser, as successor in interest to multiple
investment advisers, has been an investment adviser since 1976.
Sub-Advisers.
Invesco has entered into one or more Sub-Advisory Agreements with certain affiliates to serve as sub-advisers to the Fund (the Sub-Advisers).
Invesco may appoint the Sub-Advisers from time to time to provide discretionary investment management services, investment advice, and/or
order execution services to the Fund. The Sub-Advisers and the Sub-Advisory Agreements are described in the SAI.
Potential
New Sub-Advisers (Exemptive Order Structure). The SEC has also
granted exemptive relief that permits the Adviser, subject to certain conditions, to enter into new sub-advisory agreements with affiliated
or unaffiliated sub-advisers on behalf of the Fund without shareholder approval. The exemptive relief also permits material amendments
to existing sub-advisory agreements with affiliated or unaffiliated sub-advisers (including the Sub-Advisory Agreements with the Sub-Advisers)
without shareholder approval. Under this structure, the Adviser has ultimate responsibility, subject to oversight of the Board, for overseeing
such sub-advisers and recommending to the Board their hiring, termination, or replacement. The structure does not permit investment advisory
fees paid by the Fund to be increased without shareholder approval, or change the Adviser's obligations under the investment advisory
agreement, including the Adviser's responsibility to monitor and oversee sub-advisory services furnished to the Fund.
10 Invesco
Short Duration High Yield Municipal Fund
Exclusion
of Adviser from Commodity Pool Operator Definition
With
respect to the Fund, the Adviser has claimed an exclusion from the definition of “commodity pool operator” (CPO) under the
Commodity Exchange Act (CEA) and the rules of the Commodity Futures Trading Commission (CFTC) and, therefore, is not subject to CFTC registration
or regulation as a CPO. In addition, the Adviser is relying upon a related exclusion from the definition of “commodity trading advisor”
(CTA) under the CEA and the rules of the CFTC with respect to the Fund.
The
terms of the CPO exclusion require the Fund, among other things, to
adhere to certain limits on its investments in “commodity interests.” Commodity interests include commodity futures, commodity
options and swaps, which in turn include non-deliverable forwards. The Fund is permitted to invest in these instruments as further described
in the Fund’s SAI. However, the Fund is not intended as a vehicle for trading in the commodity futures, commodity options or swaps
markets. The CFTC has neither reviewed nor approved the Adviser’s reliance on these exclusions, or the Fund, its investment strategies
or this prospectus.
Adviser
Compensation
During
the fiscal year ended August 31, 2022, the Adviser received compensation of 0.40% 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:
◾
Mark
Paris, Portfolio Manager, who has been responsible for the Fund since 2015 and has been associated with Invesco and/or its affiliates
since 2010.
◾
John
Connelly, Portfolio Manager, who has been responsible for the Fund since 2016 and has been associated with Invesco and/or its affiliates
since 2016.
◾
Tim
O'Reilly, Portfolio Manager, who has been responsible for the Fund since 2016 and has been associated with Invesco and/or its affiliates
since 2010.
◾
James
Phillips, Portfolio Manager, who has been responsible for the Fund since 2015 and has been associated with Invesco and/or its affiliates
since 2010.
◾
John
Schorle, Portfolio Manager, who has been responsible for the Fund since 2018 and has been associated with Invesco and/or its affiliates
since 2010.
◾
Julius
Williams, Portfolio Manager, who has been responsible for the Fund since 2015 and has been associated with Invesco and/or its affiliates
since 2010.
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 2.50% initial sales charge as listed under the heading “Category IV Initial
Sales Charges” in the “Shareholder Account Information—Initial Sales
Charges
(Class A Shares Only)” section of the prospectus. Purchases of Class C shares are subject to a contingent deferred sales charge
(CDSC) if you sell Class C shares within one year of purchase; however, the CDSC shall not apply to the purchases of Class C shares where
the selling broker-dealer was not paid a commission at the time of purchase. For more information on CDSCs, see the “Shareholder
Account Information—Contingent Deferred Sales Charges (CDSCs)” section of this prospectus.
Dividends
and Distributions
The
Fund expects, based on its investment objective and strategies, that its distributions, if any, primarily will consist of tax-exempt income.
Dividends
The
Fund generally declares dividends from net investment income, if any, daily and pays them monthly.
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.
11 Invesco
Short Duration High Yield Municipal Fund
Financial Highlights
The financial
highlights show the Fund’s financial history for the past five fiscal years or, if shorter, the period of operations of the Fund
or any of its share classes. The financial highlights table is intended to help you understand the Fund’s financial performance.
Certain information reflects financial results for a single Fund share.
The
total returns in the table represent the rate that an investor would have
earned (or lost) on an investment in the Fund (assuming reinvestment of all dividends and distributions).
This
information has been audited by PricewaterhouseCoopers LLP, an independent
registered public accounting firm, whose report, along with the Fund’s financial statements, is included in the Fund’s annual
report, which is available upon request.
|
|
Net
asset
value,
beginning
of
period |
Net
investment
income(a)
|
Net
gains
(losses)
on
securities
(both
realized
and
unrealized)
|
Total
from
investment
operations
|
Dividends
from
net
investment
income
|
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
|
Supplemental
ratio
of
expenses
to
average
net
assets
with
fee waivers
(excluding
interest,
facilities
and
maintenance
fees)
|
Ratio
of net
investment
income
to
average
net
assets |
Portfolio
turnover
(c)
|
|
Class
A | |||||||||||||
|
Year
ended 08/31/22 |
$10.67
|
$0.32
|
$(1.06)
|
$(0.74)
|
$(0.35)
|
$9.58
|
(7.07)%
|
$914,354
|
0.84%
|
0.84%
|
0.77%
|
3.13%
|
26%
|
|
Year
ended 08/31/21 |
10.17
|
0.34
|
0.51
|
0.85
|
(0.35)
|
10.67
|
8.50
|
933,441
|
0.86
|
0.86
|
0.79
|
3.25
|
19
|
|
Year
ended 08/31/20 |
10.86
|
0.37
|
(0.71)
|
(0.34)
|
(0.35)
|
10.17
|
(3.19)
|
826,655
|
0.84
|
0.88
|
0.79
|
3.59
|
49
|
|
Year
ended 08/31/19 |
10.48
|
0.36
|
0.37
|
0.73
|
(0.35)
|
10.86
|
7.09
|
193,076
|
0.86
|
0.98
|
0.79
|
3.40
|
24
|
|
Year
ended 08/31/18 |
10.47
|
0.34
|
0.01
|
0.35
|
(0.34)
|
10.48
|
3.46
|
109,307
|
0.86
|
1.06
|
0.79
|
3.26
|
26
|
|
| |||||||||||||
|
Class
C | |||||||||||||
|
Year
ended 08/31/22 |
10.65
|
0.24
|
(1.06)
|
(0.82)
|
(0.27)
|
9.56
|
(7.79)
|
76,878
|
1.59
|
1.59
|
1.52
|
2.38
|
26
|
|
Year
ended 08/31/21 |
10.16
|
0.26
|
0.50
|
0.76
|
(0.27)
|
10.65
|
7.60
|
92,982
|
1.61
|
1.61
|
1.54
|
2.50
|
19
|
|
Year
ended 08/31/20 |
10.84
|
0.29
|
(0.70)
|
(0.41)
|
(0.27)
|
10.16
|
(3.84)
|
167,426
|
1.59
|
1.63
|
1.54
|
2.84
|
49
|
|
Year
ended 08/31/19 |
10.46
|
0.28
|
0.37
|
0.65
|
(0.27)
|
10.84
|
6.29
|
52,195
|
1.61
|
1.73
|
1.54
|
2.65
|
24
|
|
Year
ended 08/31/18 |
10.45
|
0.26
|
0.02
|
0.28
|
(0.27)
|
10.46
|
2.69
|
52,446
|
1.61
|
1.81
|
1.54
|
2.51
|
26
|
|
| |||||||||||||
|
Class
Y | |||||||||||||
|
Year
ended 08/31/22 |
10.67
|
0.34
|
(1.06)
|
(0.72)
|
(0.37)
|
9.58
|
(6.84)
|
497,651
|
0.59
|
0.59
|
0.52
|
3.38
|
26
|
|
Year
ended 08/31/21 |
10.18
|
0.37
|
0.50
|
0.87
|
(0.38)
|
10.67
|
8.66
|
365,892
|
0.61
|
0.61
|
0.54
|
3.50
|
19
|
|
Year
ended 08/31/20 |
10.87
|
0.40
|
(0.72)
|
(0.32)
|
(0.37)
|
10.18
|
(2.94)
|
280,243
|
0.59
|
0.63
|
0.54
|
3.84
|
49
|
|
Year
ended 08/31/19 |
10.48
|
0.39
|
0.37
|
0.76
|
(0.37)
|
10.87
|
7.45
|
216,579
|
0.61
|
0.73
|
0.54
|
3.65
|
24
|
|
Year
ended 08/31/18 |
10.48
|
0.37
|
0.00
|
0.37
|
(0.37)
|
10.48
|
3.62
|
102,388
|
0.61
|
0.81
|
0.54
|
3.51
|
26
|
|
| |||||||||||||
|
Class
R5 | |||||||||||||
|
Year
ended 08/31/22 |
10.70
|
0.35
|
(1.08)
|
(0.73)
|
(0.37)
|
9.60
|
(6.93)
|
9,800
|
0.62
|
0.62
|
0.55
|
3.35
|
26
|
|
Year
ended 08/31/21 |
10.20
|
0.37
|
0.51
|
0.88
|
(0.38)
|
10.70
|
8.78
|
14,437
|
0.61
|
0.61
|
0.54
|
3.50
|
19
|
|
Year
ended 08/31/20 |
10.88
|
0.40
|
(0.71)
|
(0.31)
|
(0.37)
|
10.20
|
(2.83)
|
10
|
0.57
|
0.57
|
0.52
|
3.86
|
49
|
|
Year
ended 08/31/19 |
10.49
|
0.39
|
0.37
|
0.76
|
(0.37)
|
10.88
|
7.44
|
11
|
0.61
|
0.68
|
0.54
|
3.65
|
24
|
|
Year
ended 08/31/18 |
10.48
|
0.37
|
0.01
|
0.38
|
(0.37)
|
10.49
|
3.72
|
11
|
0.61
|
0.82
|
0.54
|
3.51
|
26
|
|
| |||||||||||||
|
Class
R6 | |||||||||||||
|
Year
ended 08/31/22 |
10.68
|
0.35
|
(1.06)
|
(0.71)
|
(0.38)
|
9.59
|
(6.77)
|
30,929
|
0.53
|
0.53
|
0.46
|
3.44
|
26
|
|
Year
ended 08/31/21 |
10.19
|
0.37
|
0.51
|
0.88
|
(0.39)
|
10.68
|
8.73
|
20,121
|
0.54
|
0.54
|
0.47
|
3.57
|
19
|
|
Year
ended 08/31/20 |
10.88
|
0.40
|
(0.72)
|
(0.32)
|
(0.37)
|
10.19
|
(2.94)
|
12,639
|
0.57
|
0.57
|
0.52
|
3.86
|
49
|
|
Year
ended 08/31/19 |
10.49
|
0.39
|
0.37
|
0.76
|
(0.37)
|
10.88
|
7.44
|
15,350
|
0.61
|
0.68
|
0.54
|
3.65
|
24
|
|
Year
ended 08/31/18 |
10.48
|
0.37
|
0.01
|
0.38
|
(0.37)
|
10.49
|
3.72
|
9,738
|
0.61
|
0.76
|
0.54
|
3.52
|
26
|
|
| |||||||||||||
|
(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. For the year ended August
31, 2020, the portfolio turnover calculation excludes
the
value of securities purchased of $1,007,963,117 in connection with the acquisition of Invesco Oppenheimer Rochester Short Duration High
Yield Municipal Fund into the Fund. |
12 Invesco
Short Duration High Yield Municipal 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 all of the Invesco Funds and their share classes that have different fees and expenses.
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 |
|
|
▪ 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) |
A-1 The
Invesco Funds
MCF—12/22
|
Share
Classes |
|
|
|
|
|
Class
A |
Class
C |
Class
R |
Class
Y |
Class
R5 and R6 |
|
|
▪ 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 International Core Equity 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 a specific
Fund may make additional purchases into Class AX and CX, respectively, of such specific Fund. All references in this “Shareholder
Account Information” section of this prospectus to Class A, C or R shares of the Invesco Funds shall include Class AX
(excluding Invesco Government Money Market Fund), or CX shares, respectively, of the Invesco Funds, unless otherwise noted. All references
in this “Shareholder Account Information” section of this prospectus to Invesco Cash Reserve Shares of Invesco Government
Money Market Fund shall include Class AX shares of Invesco Government Money Market Fund, unless otherwise noted.
Class P
Shares
In
addition to the other share classes discussed herein, the Invesco Summit Fund offers Class P shares, which were historically sold
only through the AIM Summit Investors Plans I and II (each a Plan and, collectively, the Summit Plans). Class P shares are sold with
no initial sales charge and have a 12b-1 fee of 0.10%. However, Class P shares are not sold to members of the general public. Only
shareholders who had accounts in the Summit Plans at the close of business on December 8, 2006 may purchase Class P shares and
only until the total of their combined investments in the Summit Plans and in Class P shares directly equals the face amount of their
former Plan under the 30 year extended investment option. The face amount of a Plan is the combined total of all scheduled monthly
investments under the Plan. For a Plan with a scheduled monthly investment of $100.00, the face amount would have been $36,000.00 under
the 30 year extended investment option.
Class R
Shares
Class R
shares are intended for 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 (except for the Invesco Master Loan Fund) are available for use by Employer Sponsored Retirement and Benefit
Plans, held either at the plan level or through omnibus accounts, that generally process no more than one net redemption and one net purchase
transaction each day.
Class
R5 and R6 shares of the Funds are also available to institutional investors.
Institutional investors are: banks, trust companies, collective trust funds, entities acting for the account of a public entity (e.g.,
Taft-Hartley funds, states, cities or government agencies), funds of funds or other pooled investment vehicles, 529 college savings plans,
financial intermediaries and corporations investing for their own accounts, endowments and foundations. For information regarding investment
minimums for Class R5 and R6 shares, please see “Minimum Investments” below.
Class
R6 shares of the Funds are also available through an intermediary that
has agreed with Invesco Distributors, Inc. to make such shares
A-2 The
Invesco Funds
available
for use in retail omnibus accounts that generally process no more than one net redemption and one net purchase transaction each day.
The
Invesco Master Loan Fund is only available for purchase by other Funds
in the Invesco fund family and other Invesco pooled investment vehicles.
Shareholders
eligible to purchase Class R6 Shares must meet the requirements
specified by their intermediary. Not all intermediaries offer Class R6 Shares to their customers.
Class S
Shares
Class S
shares are limited to investors who purchase shares with the proceeds received from a systematic contractual investment plan redemption
within the 12 months prior to purchasing Class S shares, and who purchase through an approved financial intermediary that has
an agreement with the distributor to sell Class S shares. Class S shares are not otherwise sold to members of the general public.
An investor purchasing Class S shares will not pay an initial sales charge. The investor will no longer be eligible to purchase additional
Class S shares at that point where the value of the contributions to the prior systematic contractual investment plan combined with
the subsequent Class S share contributions equals the face amount of what would have been the investor’s systematic contractual
investment plan under the 30-year investment option. The face amount of a systematic contractual investment plan is the combined total
of all scheduled monthly investments under that plan. For a plan with a scheduled monthly investment of $100.00, the face amount would
have been $36,000.00 under the 30-year extended investment option.
Class Y
Shares
Class
Y shares are available to (i) investors who purchase through an account that is charged an asset-based fee or commission by a financial
intermediary, including through brokerage platforms, where a broker is acting as the investor’s agent, that may require the payment
by the investor of a commission and/or other form of compensation to that broker, (ii) endowments, foundations, or Employer Sponsored
Retirement and Benefit Plans (with the exception of “Solo 401(k)” Plans and 403(b) custodial accounts held directly at Invesco),
(iii) banks or bank trust departments acting on their own behalf or as trustee or manager for trust accounts, or (iv) any current, former
or retired trustee, director, officer or employee (or immediate family members of a current, former or retired trustee, director, officer
or employee) of any Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
Subject
to any conditions or limitations imposed on the servicing of Class
Y shares by your financial adviser, if you received Class Y shares as a result of a merger or reorganization of a predecessor fund into
any of the Funds, you will be permitted to make additional Class Y share purchases. In addition, you will be permitted to make additional
Class Y shares purchases if you owned Class Y shares in a “Solo 401(k)” Plan or 403(b) custodial account held directly at
Invesco if you held such shares in your account on or prior to May 24, 2019.
Investor
Class Shares
Investor
Class shares are sold with no initial sales charge and have a maximum 12b-1 fee of 0.25%. Only the following persons may purchase Investor
Class shares:
◾
Investors
who established accounts prior to April 1, 2002, in Investor Class shares with Invesco Distributors, Inc. (Invesco Distributors) who have
continuously maintained an account in Investor Class shares (this includes anyone listed in the registration of an account, such as a
joint owner, trustee or custodian, and immediate family members of such persons) without a designated intermediary. These investors are
referred to as “Investor Class grandfathered investors.”
◾
Customers
of a financial intermediary that has had an agreement with the Funds’ distributor or any Funds that offered Investor Class shares
prior to April 1, 2002, that has continuously maintained such agreement. These intermediaries are referred to as “Investor
Class grandfathered intermediaries.”
◾
Any
current, former or retired trustee, director, officer or employee (or immediate family member of a current, former or retired trustee,
director, officer or employee) of any Invesco Fund or of Invesco Ltd. or any of its subsidiaries.
For
additional shareholder eligibility requirements with respect to Invesco
Premier Portfolio, please see “Shareholder Account Information – Purchasing Shares and Shareholder Eligibility – Invesco
Premier Portfolio.”
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.
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 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
A-4 The
Invesco Funds
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.
Merrill
Lynch
Shareholders
purchasing Fund shares through a Merrill
Lynch platform
or account will be eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at Merrill Lynch
◾
Employer-sponsored
retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to fund those plans,
provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the plan;
◾
Shares
purchased by a 529 Plan (does not include 529 Plan unit or 529-specific share classes or equivalents);
◾
Shares
purchased through a Merrill Lynch affiliated investment advisory program;
◾
Shares
exchanged due to the holdings moving from a Merrill Lynch affiliated investment advisory program to a Merrill Lynch brokerage (non-advisory)
account pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers;
◾
Shares
purchased by third party investment advisors on behalf of their advisory clients through Merrill Lynch’s platform;
◾
Shares
of funds purchased through the Merrill Edge Self-Directed platform (if applicable);
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not
any other fund within the fund family);
◾
Shares
exchanged from Class C (i.e.
level-load) shares of the same fund pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers;
◾
Employees
and registered representatives of Merrill Lynch or its affiliates and their family members;
◾
Directors
or Trustees of the Fund, and employees of the Fund’s investment adviser or any of its affiliates, as described in this prospectus;
and
◾
Eligible
shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days
following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to
a front-end or deferred sales load (known as Rights of Reinstatement). Automated transactions (i.e. systematic purchases and withdrawals)
and purchases made after shares are automatically sold to pay Merrill Lynch’s account maintenance fees are not eligible for reinstatement.
◾
CDSC
Waivers on A and C Shares available at Merrill Lynch
◾
Death
or disability of the shareholder;
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund’s prospectus;
◾
Return
of excess contributions from an IRA Account;
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts pursuant to the Internal Revenue Code;
◾
Shares
sold to pay Merrill Lynch fees but only if the transaction is initiated by Merrill Lynch;
◾
Shares
acquired through a right of reinstatement;
◾
Shares
held in retirement brokerage accounts, that are converted to a lower cost share class due to transfer to a fee based account or platform
(applicable to A and C shares only); and
◾
Shares
received through an exchange due to the holdings moving from a Merrill Lynch affiliated investment advisory program to a Merrill Lynch
brokerage (non-advisory) account pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers.
◾
Front-end
load Discounts Available at Merrill Lynch: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this prospectus;
◾
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts as described in the Fund’s prospectus will be automatically
calculated based on the aggregated holding of fund family assets held by accounts (including 529 program holdings, where applicable) within
the purchaser’s household at Merrill Lynch. Eligible fund family assets not held at Merrill Lynch may be included in the ROA calculation
only if the shareholder notifies his or her financial advisor about such assets; and
◾
Letters
of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Merrill Lynch, over
a 13-month period of time (if applicable).
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).
A-5 The
Invesco Funds
Morgan
Stanley Wealth Management
Shareholders
purchasing Fund shares through a Morgan Stanley
Wealth Management transactional brokerage account will be eligible
only for the following front-end sales charge waivers with respect to Class A shares, which may differ from and may be more limited than
those disclosed elsewhere in this Fund’s Prospectus or SAI.
◾
Front-end
Sales Charge Waivers on Class A Shares available at Morgan Stanley Wealth Management
◾
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and
defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs, SAR-SEPs
or Keogh plans;
◾
Morgan
Stanley employee and employee-related accounts according to Morgan Stanley’s account linking rules;
◾
Shares
purchased through reinvestment of dividends and capital gains distributions when purchasing shares of the same fund;
◾
Shares
purchased through a Morgan Stanley self-directed brokerage account;
◾
Class
C (i.e., level-load) shares that are no longer subject to a contingent deferred sales charge and are converted to Class A shares of the
same fund pursuant to Morgan Stanley Wealth Management’s share class conversion program; and
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (i) the repurchase occurs within 90 days following the
redemption, (ii) the redemption and purchase occur in the same account, and (iii) redeemed shares were subject to a front-end or deferred
sales charge.
Raymond
James Financial Services, Inc.
Shareholders
purchasing Fund shares through a Raymond
James Financial Services, Inc., Raymond James affiliates and each
entity’s affiliates (Raymond James) platform or account, or through an introducing broker-dealer or independent registered investment
adviser for which Raymond James provides trade execution, clearance, and/or custody services, will be eligible only for the following
load waivers (front-end sales charge waivers and contingent deferred, or back-end, sales charge waivers) and discounts, which may differ
from those disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
sales load waivers on Class A shares available at Raymond James
◾
Shares
purchased in an investment advisory program.
◾
Shares
purchased within the same fund family through a systematic reinvestment of capital gains distributions and dividend distributions.
◾
Employees
and registered representatives of Raymond James or its affiliates and their family members as designated by Raymond James.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (known as Rights of Reinstatement).
◾
A
shareholder in the Fund’s Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate
share class) of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures
of Raymond James.
◾
CDSC
Waivers on Classes A and C shares available at Raymond James
◾
Death
or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the fund’s prospectus.
◾
Return
of excess contributions from an IRA Account.
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based
on applicable IRS regulations as described in the fund’s prospectus.
◾
Shares
sold to pay Raymond James fees but only if the transaction is initiated by Raymond James.
◾
Shares
acquired through a right of reinstatement.
◾
Front-end
load discounts available at Raymond James: breakpoints, rights of accumulation, and/or letters of intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of
fund family assets held by accounts within the purchaser’s household at Raymond James. Eligible fund family assets not held at Raymond
James may be included in the calculation of rights of accumulation only if the shareholder notifies his or her financial advisor about
such assets.
◾
Letters
of intent which allow for breakpoint discounts based on anticipated purchases within a fund family, over a 13-month time period. Eligible
fund family assets not held at Raymond James may be included in the calculation of letters of intent only if the shareholder notifies
his or her financial advisor about such assets.
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.
A-6 The
Invesco Funds
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.
◾
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.
Oppenheimer
& Co. Inc. (“OPCO”)
Shareholders
purchasing Fund shares through an OPCO
platform or account are eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund's prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at OPCO
◾
Employer-sponsored
retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to
fund
those plans, provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the
plan
◾
Shares
purchased by or through a 529 Plan
◾
Shares
purchased through an OPCO affiliated investment advisory program
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not
any other fund within the fund family)
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales load (known as Rights of Reinstatement).
◾
A
shareholder in the Fund's Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate share
class) of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures of OPCO
◾
Employees
and registered representatives of OPCO or its affiliates and their family members
◾
Directors
or Trustees of the Fund, and employees of the Fund's investment adviser or any of its affiliates, as described in this prospectus
◾
CDSC
Waivers on A and C Shares available at OPCO
◾
Death
or disability of the shareholder
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund's prospectus
◾
Return
of excess contributions from an IRA Account
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based
on applicable IRS regulations as described in the prospectus
◾
Shares
sold to pay OPCO fees but only if the transaction is initiated by OPCO Shares acquired through a right of reinstatement
◾
Front-end
load Discounts Available at OPCO: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding
of fund family assets held by accounts within the purchaser's household at OPCO. Eligible fund family assets not held at OPCO may be included
in the ROA calculation only if the shareholder notifies his or her financial advisor about such assets.
Robert
W. Baird & Co. Incorporated (“Baird”)
Shareholders
purchasing fund shares through a Baird
platform or account will only be eligible for the following sales charge waivers (front-end sales charge waivers and CDSC waivers) and
discounts, which may differ from those disclosed elsewhere in this prospectus or the SAI.
◾
Front-End
Sales Charge Waivers on Class A-shares Available at Baird
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund.
◾
Shares
purchased by employees and registered representatives of Baird or its affiliate and their family members as designated by Baird.
◾
Shares
purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred
sales charge (known as rights of reinstatement).
◾
A
shareholder in the Fund’s Class C Shares will have their shares converted at net asset value to Class A shares of the fund if the
shares are no longer subject to CDSC and the conversion is in line with the policies and procedures of Baird.
◾
Employer-sponsored
retirement plans or charitable accounts in a transactional brokerage account at Baird, including 401(k) plans, 457 plans, employer-sponsored
403(b) plans, profit sharing and money
A-7 The
Invesco Funds
purchase
pension plans and defined benefit plans. For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs,
Simple IRAs or SAR-SEPs.
◾
CDSC
Waivers on Classes A and C shares Available at Baird
◾
Shares
sold due to death or disability of the shareholder.
◾
Shares
sold as part of a systematic withdrawal plan as described in the Fund’s Prospectus.
◾
Return
of excess contributions from an IRA Account.
◾
Shares
sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching age 72 as described in
the Fund’s prospectus.
◾
Shares
sold to pay Baird fees but only if the transaction is initiated by Baird.
◾
Shares
acquired through a right of reinstatement.
◾
Front-End
Sales Charge Discounts Available at Baird: Breakpoints, Rights of Accumulation and/or letters of intent
◾
Breakpoints
as described in this prospectus.
◾
Rights
of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of
fund family assets held by accounts within the purchaser’s household at Baird. Eligible fund family assets not held at Baird may
be included in the rights of accumulation calculation only if the shareholder notifies his or her financial advisor about such assets.
◾
Letters
of Intent (LOI) allow for breakpoint discounts based on anticipated purchases of within a fund family through Baird, over a 13-month period
of time.
Edward
D. Jones & Co., L.P. (“Edward Jones”)
Policies
Regarding Transactions Through Edward Jones
The
following information has been provided by Edward Jones:
The
following information supersedes prior information with respect to transactions
and positions held in fund shares through an Edward Jones system. Shareholders purchasing Fund shares through the Edward
Jones commission
and fee-based platforms will be eligible for the following load waivers (front- end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund's prospectus or statement of additional
information (“SAI”). 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 (including holdings of 529 Plans where Invesco serves as primary distributor), 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.
◾
Front-end
sales load waivers on Class A shares available at Edward Jones
◾
Associates
of Edward Jones and its affiliates and their family members who are 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: 1) the proceeds are
from the sale of shares within 60 days of the purchase, and 2) the sale and purchase are made in the same share class and the same account
or the purchase is made in an individual retirement account with proceeds from liquidations in a non-retirement account.
◾
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.
◾
CDSC
Waivers on Classes A and C shares available at Edward Jones
◾
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
sold 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 the qualified age based on applicable IRS regulations.
◾
Shares
sold 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 Minimum Balances, as described below.
◾
Front-end
load discounts available at Edward Jones: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoint
pricing, otherwise known as volume pricing, at dollar thresholds as described in the prospectus.
◾
Rights
of Accumulation (“ROA”) which entitles the shareholder to the applicable sales charge on a purchase of Class A shares will
be determined by taking into account all share classes (except certain money market funds and any assets held in group retirement plans)
of Invesco Funds (including holdings of 529 Plans where Invesco serves as primary distributor) 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).
◾
Letters
of Intent (“LOI”) allow shareholders to receive 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.
Other
Important Information Regarding Transactions Through Edward
Jones
Minimum
Purchase Amounts
•
Initial
purchase minimum: $250
•
Subsequent
purchase minimum: none
A-8 The
Invesco Funds
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.
Stifel,
Nicolaus & Company (“Stifel”)
Shareholders
purchasing Fund shares through a Stifel
platform or account will be eligible only for the following front-end sales charge waivers and discounts, which may differ from those
disclosed elsewhere in this Fund’s prospectus or SAI.
◾
Front-end
Sales Load Waivers on Class A Shares available at Stifel: Breakpoints, Rights of Accumulation & Letters of Intent
◾
Breakpoints
as described in this 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 Stifel. Eligible
fund family assets not held at Stifel may be included in the ROA calculation only if the shareholder notifies his or her financial advisor
about such assets; and
◾
Letters
of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Stifel, over a 13-month
period of time (if applicable).
◾
Shares
converted from Class C (i.e. level-load) shares of the same fund pursuant to Stifel policies relating to sales load discounts and waivers.
PFS
Investments Inc. (“PFSI”)
Policies
Regarding Transactions Through PFSI
The
following information supersedes all prior information with respect to transactions and positions held in fund shares purchased through
PFSI and held on the mutual fund platform of its affiliate, Primerica Shareholder Services (“PSS”). Clients of PFSI (also
referred to as “shareholders”) purchasing fund shares on the PSS platform are eligible only for the following share classes,
sales charge discounts (also referred to as “breakpoints”) and waivers, which can differ from share classes, discounts and
waivers described elsewhere in this prospectus or the related statement of additional information (“SAI”) or through another
broker-dealer. In all instances, it is the shareholder’s responsibility to inform PFSI at the time of a purchase of all holdings
of Invesco Funds on the PSS platform, or other facts qualifying the purchaser for discounts or waivers. PFSI may request reasonable documentation
of such facts, and condition the granting of any discount or waiver on the timely receipt of such documents. Shareholders should contact
PSS if they have questions regarding their eligibility for these discounts and waivers.
Share
Classes
◾
Class
A shares: in non-retirement accounts, individual retirement accounts (IRA), SEP IRAs, SIMPLE IRAs, Keogh Plans, and all other account
types unless expressly provided for below.
◾
Class
C shares: only in accounts with existing Class C share holdings.
Breakpoints
◾
Breakpoint
pricing at dollar thresholds as described in the prospectus of the fund you are purchasing.
Rights
of Accumulation (“ROA”)
◾
The
applicable sales charge on a purchase of Class A shares is determined by taking into account all share classes (except any assets held
in group retirement plans) of Invesco Funds held by the shareholder on the PSS Platform. The inclusion of eligible fund family assets
in the ROA calculation is dependent on the shareholder notifying PFSI of such assets at the time of calculation. Shares of money market
funds are
included
only if such shares were acquired in exchange for shares of another Invesco Fund purchased with a sales charge. No shares of Invesco Funds
held by the shareholder away from the PSS platform will be granted ROA with shares of any Invesco Fund purchased on the PSS platform.
◾
Any
SEP IRA plan, any SIMPLE IRA plan or any Payroll Deduction plan (“PDP”) on the PSS platform will be defaulted to plan-level
grouping for purposes of ROA, which allows each participating employee ROA with all other eligible shares held in plan accounts on the
PSS platform. At any time, a participating employee may elect to exercise a one-time option to change grouping for purposes of ROA to
shareholder- level grouping, which allows the plan account of the electing employee ROA with her other eligible holdings on the PSS platform,
but not with all other eligible participant holdings in the plan. Eligible shares held in plan accounts electing shareholder-level grouping
will not be available for purposes of ROA to plan accounts electing plan-level grouping.
◾
ROA
is determined by calculating the higher of cost minus redemptions or current market value (current shares x NAV).
Letter
of Intent (“LOI”)
◾
By
executing a LOI, shareholders can receive the sales charge and breakpoint discounts for purchases shareholders intend to make over a 13-month
period through PFSI, from the date PSS receives the LOI. The purchase price of the LOI is determined by calculating the higher of cost
or market value of qualifying holdings at LOI initiation in combination with the dollar amount the shareholder intends to invest over
a 13-month period to arrive at total investment for purposes of determining any breakpoint discount and the applicable front-end sales
charge. Each purchase the shareholder makes during that 13-month period will receive the sales charge and breakpoint discount that applies
to the projected total investment.
◾
Only
holdings of Invesco Funds on the PSS platform are eligible for inclusion in the LOI calculation and the shareholder must notify PFSI of
all eligible assets at the time of calculation.
◾
Purchases
made before the LOI is received by PSS are not adjusted under the LOI, and the LOI will not reduce any sales charge previously paid. Sales
charges will be automatically adjusted if the total purchases required by the LOI are not met.
◾
If
an employer maintaining a SEP IRA plan, SIMPLE IRA plan or non-IRA PDP on the PSS platform has elected to establish or change ROA for
the accounts associated with the plan to a plan-level grouping, LOIs will also be at the plan-level and may only be established by the
employer. LOIs are not available to PDP IRA plans on the PSS platform with plan-level grouping for purposes of ROA, but are available
to any participating employee that elects shareholder-level grouping for purposes of ROA.
Sales
Charge Waivers
Sales
charges are waived for the following shareholders and in the following
situations:
◾
Shares
purchased through reinvestment of capital gains distributions and dividend reinvestment.
◾
Shares
purchased with the proceeds of redeemed shares of the same fund family so long as the following conditions are met: 1) the proceeds are
from the sale of shares within 90 days of the purchase, 2) the sale and purchase are made in the same share class and the same account
or the purchase is made in an individual retirement account with proceeds from liquidations in a non-retirement account, and 3) the redeemed
shares were subject to a front-end or deferred sales load, Automated transactions (i.e. systematic purchases and withdrawals), full or
partial transfers or rollovers of retirement accounts, and purchases made after shares are automatically sold to pay account maintenance
fees are not eligible for this sales charge waiver.
◾
Shares
exchanged into Class A shares from another share class so long as the exchange is into the same fund and was initiated at the discretion
of PFSI. PFSI is responsible for any remaining CDSC due to the fund company, if applicable. Any future purchases are subject to the applicable
sales charge as disclosed in the prospectus.
Policies
Regarding Fund Purchases Through PFSI That Are Not Held
on the PSS Platform
A-9 The
Invesco Funds
◾
Class
R shares
are available through PFSI only in 401(k) plans covering a business owner with no employees, commonly referred to as a one-participant
401(k) plan or solo 401(k).
UBS
Financial Services Inc. (“UBS”)
Pursuant
to an agreement with the Distributor, UBS may offer Class Y
shares
to its retail brokerage clients whose shares are held in omnibus
accounts at UBS, or its designee. For these clients, UBS may charge commissions or transaction fees with respect to brokerage transactions
in Class Y shares. The
minimum investment for Class Y shares is waived for transactions through such brokerage platforms at UBS. Please contact your UBS representative
for more information about these fees and other eligibility requirements.
Qualifying
for Reduced Sales Charges and Sales Charge Exceptions
The
following types of accounts qualify for reduced sales charges or sales charge exceptions under ROAs and LOIs:
1.
an
individual account owner;
2.
immediate
family of the individual account owner (which includes the individual’s spouse or domestic partner; the individual’s children,
step-children or grandchildren; the spouse or domestic partner of the individual’s children, step-children or grandchildren; the
individual’s parents and step-parents; the parents or step-parents of the individual’s spouse or domestic partner; the individual’s
grandparents; and the individual’s siblings);
3.
a
Retirement and Benefit Plan so long as the plan is established exclusively for the benefit of an individual account owner; and
4.
a
Coverdell Education Savings Account (Coverdell ESA), maintained pursuant to Section 530 of the Code (in either case, the account
must be established by an individual account owner or have an individual account owner named as the beneficiary thereof).
Alternatively,
an Employer Sponsored Retirement and Benefit Plan (but not including
plans utilizing the Invesco 403(b)(7) Custodial Account program, or the individual custodial accounts thereunder) or Employer Sponsored
IRA may be eligible to purchase shares pursuant to a ROA at the plan level, and receive a reduced applicable initial sales charge for
a new purchase based on the total value of the current purchase and the value of other shares owned by the plan’s participants if:
a)
the
employer or plan sponsor submits all contributions for all participating employees in a single contribution transmittal (the Invesco Funds
will not accept separate contributions submitted with respect to individual participants);
b)
each
transmittal is accompanied by checks or wire transfers; and
c)
if
the Invesco Funds are expected to carry separate accounts in the names of each of the plan participants, (i) the employer or plan
sponsor notifies Invesco Distributors or its designee in writing that the separate accounts of all plan participants should be linked,
and (ii) all new participant accounts are established by submitting an appropriate Account Application on behalf of each new participant
with the contribution transmittal.
Participant
accounts in a retirement plan that are eligible to purchase shares
pursuant to a ROA at the plan level may not also be considered eligible to do so for the benefit of an individual account owner.
In
all instances, it is the purchaser’s responsibility to notify Invesco Distributors
or its designee of any relationship or other facts qualifying the purchaser as eligible for reduced sales charges and/or sales charge
exceptions and to provide all necessary documentation of such facts in order to qualify for reduced sales charges or sales charge exceptions.
For additional information on linking accounts to qualify for ROA or LOI, please see the Funds’ SAI.
Purchases
of Class A shares of Invesco Conservative Income Fund, Invesco
Government Money Market Fund and Invesco Short Term Municipal Fund, Class AX shares or Invesco Cash Reserve Shares of Invesco Government
Money Market Fund and Invesco U.S. Government Money Portfolio, as applicable, or Investor Class shares of any Fund will not be
taken
into account in determining whether a purchase qualifies for a reduction in initial sales charges pursuant to ROAs or LOIs.
Rights
of Accumulation
Purchasers
that qualify for ROA may combine new purchases of Class A shares of a Fund with shares of the Fund or other open-end Invesco Funds
currently owned (Class A, C, IB, IC, P, R, S or Y) for the purpose of qualifying for the lower initial sales charge rates that apply
to larger purchases. The applicable initial sales charge for the new purchase will be based on the total of your current purchase and
the value of other shares owned based on their current public offering price. The Funds’ transfer agent may automatically link certain
accounts registered in the same name with the same taxpayer identification number for the purpose of qualifying you for lower initial
sales charge rates.
Letters
of Intent
Under
a LOI, you commit to purchase a specified dollar amount of Class A shares of one or more Funds during a 13-month period. The amount
you agree to purchase determines the initial sales charge you pay. If the full amount committed to in the LOI is not invested by the end
of the 13-month period, your account will generally be assessed the higher initial sales charge that would normally be applicable to the
total amount actually invested. Shares equal in value to 5% of the intended purchase amount will be held in escrow for this purpose.
Reinstatement
Following Redemption
If
you redeem any class of shares of a Fund, you may reinvest all or a portion of the proceeds from the redemption (and may include that
amount necessary to acquire a fractional Share to round off his or her purchase to the next full Share) in the same share class of any
Fund within 180 days of the redemption without paying an initial sales charge. Class P, S, and Y redemptions may be reinvested into Class
A shares without an initial sales charge.
This
reinstatement privilege does not apply to a purchase made through a
regularly scheduled automatic investment plan, such as a purchase by a regularly scheduled payroll deduction or transfer from a bank account.
This
reinstatement privilege shall be suspended for the period of time in which
a purchase block is in place on a shareholder’s account. Please see “Purchase Blocking Policy” discussed below.
In
order to take advantage of this reinstatement privilege, you must inform
your financial adviser or the Funds’ transfer agent that you wish to do so at the time of your reinvestment.
Contingent
Deferred Sales Charges (CDSCs)
CDSCs
on Class A Shares and Invesco Cash Reserve Shares
Any
shares of a Large Purchase of Class A shares redeemed prior to 18 months after the date of purchase will be subject to a CDSC of 1% with
the exception of Class A shares of Invesco Conservative Income Fund and Invesco Short Term Municipal Fund which do not have CDSCs on redemptions.
If
Invesco Distributors pays a concession to a financial intermediary in connection
with a Large Purchase of Class A shares by an Employer Sponsored Retirement and Benefit Plan or SIMPLE IRA Plan, the Class A shares will
be subject to a 1% CDSC if all of the Employer Sponsored Retirement and Benefit Plan’s or SIMPLE IRA’s shares are redeemed
within one year from the date of initial purchase.
If
you acquire Invesco Cash Reserve Shares or Class A shares of Invesco
Government Money Market Fund or Invesco Cash Reserve Shares of Invesco U.S. Government Money Portfolio through an exchange involving Class
A shares that were subject to a CDSC, the shares acquired as a result of the exchange will continue to be subject to that same CDSC.
CDSCs
on Class C Shares
Class
C shares are subject to a CDSC; however, the CDSC shall not apply to the purchases of Class C shares where the selling broker-dealer was
not paid a commission at the time of purchase. If you redeem your shares during the first year since your purchase has been made you will
be
A-10 The
Invesco Funds
assessed
a CDSC as disclosed in the “Fees and Expenses - Shareholder Fees” table in the prospectus, unless you qualify for one of the
CDSC exceptions outlined below.
CDSCs
on Class C Shares – Employer Sponsored Retirement and Benefit Plans and Employer Sponsored IRAs
Class
C shares are subject to a 1.00% CDSC at the time of redemption if all of the Employer Sponsored Retirement and Benefit Plan’s or
Employer Sponsored IRA’s shares are redeemed within one year from the date of initial purchase.
CDSCs
on Class C Shares of Invesco Short Term Bond Fund
Effective
November 1, 2021, Class C shares of Invesco Short Term Bond Fund are subject to a CDSC. If you acquire Class C shares of any other Fund
as a result of an exchange involving Class C shares of Invesco Short Term Bond Fund that were not subject to a CDSC prior to November
1, 2021, then the shares acquired as a result of the exchange will not be subject to a CDSC.
Computing
a CDSC
The
CDSC on redemptions of shares is computed based on the lower of their original purchase price or current net asset value, net of reinvested
dividends and capital gains distributions. In determining whether to charge a CDSC, shares are accounted for on a first-in, first-out
basis, which means that you will redeem shares on which there is no CDSC first, and then shares in the order of their purchase.
CDSC
Exceptions
Investors
who own shares that are otherwise subject to a CDSC will not pay a CDSC in the following circumstances:
◾
If
you participate in the Systematic Redemption Plan and withdraw up to 12% of the value of your shares that are subject to a CDSC in any
twelve-month period.
◾
If
you redeem shares to pay account fees.
◾
If
you are the executor, administrator or beneficiary of an estate or are otherwise entitled to assets remaining in an account following
the death or post-purchase disability of a shareholder or beneficial owner and you choose to redeem those shares.
There
are other circumstances under which you may be able to redeem shares
without paying CDSCs. For additional information about such circumstances, please see the Appendix entitled “Purchase, Redemption
and Pricing of Shares” in each Fund’s SAI.
Shares
acquired through the reinvestment of dividends and distributions are
not subject to CDSCs.
The
following share classes are sold without a CDSC:
◾
Class
A2 shares of Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund
◾
Class
A shares of Invesco Government Money Market Fund
◾
Invesco
Cash Reserve Shares of Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio
◾
Investor
Class shares of any Fund
◾
Class
P shares of Invesco Summit Fund
◾
Class
R5 and R6 shares of any Fund
◾
Class
R shares of any Fund
◾
Class
S shares of Invesco Charter Fund, Invesco Select Risk: Moderately Conservative Investor Fund, Invesco Select Risk: Growth Investor Fund,
Invesco Select Risk: Moderate Investor Fund and Invesco Summit Fund
◾
Class
Y shares of any Fund
Purchasing
Shares and Shareholder Eligibility
Invesco
Premier U.S. Government Money Portfolio
For
Invesco Premier U.S. Government Money Portfolio, you may purchase shares using one of the options below. Unless the Fund closes early
on a business day, the Fund’s transfer agent will generally accept any purchase order placed until 5:00 p.m. Eastern Time on a business
day and may accept a purchase order placed until 5:30 p.m. Eastern Time on a business
day.
If you wish to place an order between 5:00 p.m. and 5:30 p.m. Eastern Time on a business day, you must place such order by telephone;
however, the Fund’s transfer agent reserves the right to reject or limit the amount of orders placed during this time. If the Fund
closes early on a business day, the Fund’s transfer agent must receive your purchase order prior to such closing time. Purchase
orders will not be processed unless the account application and purchase payment are received in good order. In accordance with the USA
PATRIOT Act, if you fail to provide all the required information requested in the current account application, your purchase order will
not be processed. Additionally, federal law requires that the Fund verifies and records your identifying information.
Invesco
Premier Portfolio
Only
accounts beneficially owned by natural persons will be permitted to retain their shares. The Fund has implemented policies and procedures
reasonably designed to limit all beneficial owners of the Fund to natural persons, and investments in the Fund are limited to accounts
beneficially owned by natural persons. Natural persons may invest in the Fund through certain tax-advantaged savings accounts, trusts
and other retirement and investment accounts, which may include, among others: participant-directed defined contribution plans; individual
retirement accounts; simplified employee pension arrangements; simple retirement accounts; custodial accounts; deferred compensation plans
for government or tax-exempt organization employees; Archer medical savings accounts; college savings plans; health savings account plans;
ordinary trusts and estates of natural persons; or certain other retirement and investment accounts with ultimate investment authority
held by the natural person beneficial owner, notwithstanding having an institutional decision maker making day-to-day decisions (e.g.,
a plan sponsor in certain retirement arrangements or an investment adviser managing discretionary investment accounts).
Further,
financial intermediaries may only submit purchase orders if they have
implemented policies and procedures reasonably designed to limit all investors on behalf of whom they submit orders to accounts beneficially
owned by natural persons. Financial intermediaries may be required to provide a written statement or other representation that they have
in place, and operate in compliance with, such policies and procedures prior to submitting purchase orders. Such policies and procedures
may include provisions for the financial intermediary to promptly report to the Fund or the transfer agent the identification of any shareholder
of the Fund that does not qualify as a natural person of whom they are aware and promptly take steps to redeem any such shareholder’s
shares of the Fund upon request by the Fund or the transfer agent, in such manner as it may reasonably request. The Fund may involuntarily
redeem any such shareholder who does not voluntarily redeem their shares.
Natural
persons may purchase shares using one of the options below. For
all classes of the Fund, other than Investor Class shares, unless the Fund closes early on a business day, the Fund’s transfer agent
will generally accept any purchase order placed until 5:00 p.m. Eastern Time on a business day and may accept a purchase order placed
until 5:30 p.m. Eastern Time on a business day. If you wish to place an order between 5:00 p.m. and 5:30 p.m. Eastern Time on a business
day, you must place such order by telephone; or send your request by a pre-arranged Liquidity Link data transmission however, the Fund’s
transfer agent reserves the right to reject or limit the amount of orders placed during this time. For Investor Class shares of the Fund,
unless the Fund closes early on a business day, the Fund’s transfer agent will generally accept any purchase order placed until
4:00 p.m. Eastern Time on a business day and may accept a purchase order placed until 4:30 p.m. Eastern Time on a business day. If you
wish to place an order between 4:00 p.m. and 4:30 p.m. Eastern Time on a business day, you must place such order by telephone; however,
the Fund’s transfer agent reserves the right to reject or limit the amount of orders placed during this time. If the Fund closes
early on a business day, the Fund’s transfer agent must receive your purchase order prior to such closing time. Purchase orders
will not be processed unless the account application and purchase payment are received in good order. In accordance with the USA PATRIOT
Act, if you fail to provide all the required information requested in the current account application, your purchase order will not be
A-11 The
Invesco Funds
processed.
Additionally, federal law requires that the Fund verify and record your identifying information.
Minimum Investments
There
are no minimum investments for Class P or S shares for fund accounts. The minimum investments for Class A, C, R, Y, Investor Class and
Invesco Cash Reserve shares for fund accounts are as follows:
|
Type
of Account |
Initial
Investment
Per
Fund |
Additional
Investments
Per
Fund |
|
Asset
or fee-based accounts managed by your financial
adviser
|
None
|
None
|
|
| ||
|
Employer
Sponsored Retirement and Benefit Plans and
Employer
Sponsored IRAs |
None
|
None
|
|
| ||
|
IRAs
and Coverdell ESAs if the new investor is
purchasing
shares through a systematic purchase plan |
$25
|
$25
|
|
| ||
|
All
other accounts if the investor is purchasing shares
through
a systematic purchase plan |
50
|
50
|
|
| ||
|
IRAs
and Coverdell ESAs |
250
|
25
|
|
| ||
|
All
other accounts |
1,000
|
50
|
|
| ||
Invesco
Distributors or its designee has the discretion to accept orders on behalf of clients for lesser amounts.
The
minimum investments for Class R5 and R6 shares are as follows:
There
is no minimum initial investment for an Employer Sponsored Retirement
and Benefit Plan investing through a retirement platform that administers at least $2.5 billion in retirement plan assets. All other Employer
Sponsored Retirement and Benefit Plans must meet a minimum initial investment of at least $1 million in each Fund in which it invests.
The
minimum initial investment in each share class for all other institutional
investors is $1 million, unless such investment is made by (i) an investment company, as defined under the 1940 Act, as amended, that
is part of a family of investment companies which own in the aggregate at least $100 million in securities, or (ii) an account established
with a 529 college savings plan managed by Invesco, in which case there is no minimum initial investment.
There
are no minimum investment amounts for Class R6 shares held through
retail omnibus accounts where the intermediary:
◾
generally
charges an asset-based fee or commission in addition to those described in this prospectus; and
◾
maintains
Class R6 shares and makes them available to retail investors.
A
financial intermediary may impose different investment minimums than
those set forth above. The Fund is not responsible for any investment minimums imposed by financial intermediaries or for notifying shareholders
of any changes to them. See “Waivers Available Through Certain Financial Intermediaries and Other Financial Intermediary-Specific
Arrangements” for more information on certain intermediary-specific investment minimums. Please consult with your financial intermediary
if you have any questions regarding their policies.
How
to Purchase Shares*
|
|
Opening
An Account |
Adding
To An Account |
|
Through
a
Financial
Adviser
or
Financial
Intermediary*
|
Contact
your financial adviser or
financial
intermediary. |
Contact
your financial adviser or
financial
intermediary. |
|
By
Mail |
Mail
completed account application
and
check to the Funds’ transfer
agent,
Invesco
Investment Services, Inc.
P.O.
Box 219078,
Kansas
City, MO 64121-9078.
The
Funds’ transfer agent does NOT
accept
the following types of
payments:
Credit Card Checks,
Temporary/Starter
Checks, Third
Party
Checks, and Cash. |
Mail
your check and the remittance
slip
from your confirmation
statement
to the Funds’ transfer
agent.
The Funds’ transfer agent
does
NOT accept the following
types
of payments: Credit Card
Checks,
Temporary/Starter Checks,
Third
Party Checks, and Cash. |
|
|
Opening
An Account |
Adding
To An Account |
|
By
Wire* |
Mail
completed account application
to
the Funds’ transfer agent. Call
the
Funds’ transfer agent at (800)
959-4246
to receive a reference
number.
Then, use the wire
instructions
provided below. |
Call
the Funds’ transfer agent to
receive
a reference number. Then,
use
the wire instructions provided
below.
|
|
Wire
Instructions |
Beneficiary
Bank ABA/Routing #: 011001234
Beneficiary
Account Number: 729639
Beneficiary
Account Name: Invesco Investment Services, Inc.
RFB:
Fund Name, Reference #
OBI:
Your Name, Account # | |
|
By
Telephone* |
Open
your account using one of the
methods
described above. |
The
Bank Account Information
option
on your completed account
application
or complete a
Systematic
Options and Bank
Information
Form. Mail the
application
or form to the Funds’
transfer
agent. Once the Funds’
transfer
agent has received the
form,
call the Funds’ transfer agent
at
the number below to place your
purchase
order. For Class R5 and
R6
shares, call the Funds’ transfer
agent
at (800) 959-4246 and wire
payment
for your purchase order in
accordance
with the wire
instructions
listed above. |
|
Automated
Investor
Line |
Open
your account using one of the
methods
described above. |
Call
the Funds’ transfer agent’s
24-hour
Automated Investor Line at
1-800-246-5463.
You may place
your
order after you have provided
the
bank instructions that will be
requested.
|
|
By
Internet |
Open
your account using one of the
methods
described above. |
Access
your account at
www.invesco.com/us.
The proper
bank
instructions must have been
provided
on your account. You may
not
purchase shares in Retirement
and
Benefit Plans on the internet. |
|
*Class
R5 and R6 shares may only be purchased through a financial intermediary or by
telephone
at (800) 959-4246. | ||
Non-retirement
retail investors, including high net worth investors investing
directly or through a financial intermediary, are not eligible for Class R5 shares. IRAs and Employer Sponsored IRAs are also not eligible
for Class R5 shares. If you hold your shares through a financial intermediary, the terms by which you purchase, redeem and exchange shares
may differ than the terms in this prospectus depending upon the policies and procedures of your financial intermediary.
Purchase
orders will not be processed unless the account application and
purchase payment are received in good order. In accordance with the USA PATRIOT Act, if you fail to provide all the required information
requested in the current account application, your purchase order will not be processed. Additionally, federal law requires that the Funds
verify and record your identifying information.
Systematic
Purchase Plan (Available for all classes except Class R5 and R6 shares)
You
can arrange for periodic investments in any of the Funds by authorizing the Funds’ transfer agent to withdraw the amount of your
investment from your bank account on a day or dates you specify and in an amount of at least $25 per Fund for IRAs and Coverdell ESAs,
and at least $50 per Fund for all other types of accounts (a Systematic Purchase Plan). You may stop the Systematic Purchase Plan at any
time by giving the Funds’ transfer agent notice ten days prior to your next scheduled withdrawal. Certain financial advisers and
other financial intermediaries may also offer systematic purchase plans.
A-12 The
Invesco Funds
Dollar
Cost Averaging (Available for all classes except Class R5 and R6 shares)
Dollar
Cost Averaging allows you to make automatic periodic exchanges, if permitted, from one Fund to another Fund or multiple other Funds. The
account from which exchanges are to be made must have a minimum balance of $5,000 before you can use this option. Exchanges will occur
on (or about) the day of the month you specify, in the amount you specify. Dollar Cost Averaging cannot be set up for the 29th through
the 31st of the month. The minimum amount you can exchange to another Fund is $50. Your financial intermediary may offer alternative dollar
cost averaging programs with different requirements.
Automatic
Dividend and Distribution Investment
Your
dividends and distributions may be paid in cash or reinvested in the same Fund or another Fund without paying an initial sales charge.
Unless
you specify otherwise, your dividends and distributions will automatically
be reinvested in the same Fund. You must comply with the following requirements to be eligible to invest your dividends and distributions
in shares of another Fund:
◾
Your
account balance in the Fund paying the dividend or distribution must be at least $5,000; and
◾
Your
account balance in the Fund receiving the dividend or distribution must be at least $500.
If
you elect to receive your distributions by check, and the distribution amount
is $25 or less, then the amount will be automatically reinvested in the same Fund and no check will be issued. If you have elected to
receive distributions by check, and the postal service is unable to deliver checks to your address of record, then your distribution election
may be converted to having all subsequent distributions reinvested in the same Fund and no checks will be issued. With respect to certain
account types, if your check remains uncashed for six months, the Fund generally reserves the right to reinvest your distribution check
in your account at the then applicable NAV and to reinvest all subsequent distributions in shares of the Fund. Such checks will be reinvested
into the same share class of the Fund. You should contact the Funds’ transfer agent to change your distribution option, and your
request to do so must be received by the Funds’ transfer agent before the record date for a distribution in order to be effective
for that distribution. No interest will accrue on amounts represented by uncashed distribution checks.
Redeeming
Shares*
The
Funds’ transfer agent or authorized intermediary, if applicable, must receive your call before the Funds’ net asset value
determination (as defined by the applicable Fund) in order to effect the redemption at that day’s net asset value.
Your
broker or financial intermediary may charge service fees for handling
redemption transactions.
|
How
to Redeem Shares | |
|
Through
a Financial
Adviser
or Financial
Intermediary*
|
Contact
your financial adviser or financial intermediary. The Funds’
transfer
agent must receive your financial adviser’s or financial
intermediary’s
call before the Funds’ net asset value determination
(as
defined by the applicable Fund) in order to effect the redemption
at
that day’s net asset value. Please contact your financial adviser or
financial
intermediary with respect to reporting of cost basis and
available
elections for your account. |
|
By
Mail |
Send
a written request to the Funds’ transfer agent which includes: |
|
|
▪ Original
signatures of all registered owners/trustees;
▪ The
dollar value or number of shares that you wish to redeem;
▪ The
name of the Fund(s) and your account number;
▪ The
cost basis method or specific shares you wish to redeem for
tax
reporting purposes, if different than the method already on
record;
and |
|
|
▪ Signature
guarantees, if necessary (see below).
The
Funds’ transfer agent may require that you provide additional
documentation,
or information, such as corporate resolutions or
powers
of attorney, if applicable. If you are redeeming from a
Retirement
and Benefit Plan, you must complete the appropriate
distribution
form. |
|
How
to Redeem Shares | |
|
By
Telephone* |
Call
the Funds’ transfer agent at 1-800-959-4246. You will be
allowed
to redeem by telephone if:
▪ Your
redemption proceeds are to be mailed to your address on
record
(and there has been no change in your address of record
within
the last 15 days) or transferred electronically to a
pre-authorized
checking account;
▪ You
can provide proper identification information;
▪ Your
redemption proceeds do not exceed $250,000 per Fund; and
▪ You
have not previously declined the telephone redemption
privilege.
|
|
|
You
may, in limited circumstances, initiate a redemption from an
Invesco
IRA by telephone. Redemptions from Employer Sponsored
Retirement
and Benefit Plans and Employer Sponsored IRAs may be
initiated
only in writing and require the completion of the appropriate
distribution
form, as well as employer authorization. You must call the
Funds’
transfer agent before the Funds’ net asset value
determination
(as defined by the applicable Fund) in order to effect
the
redemption at that day’s net asset value. |
|
Automated
Investor Line |
Call
the Funds’ transfer agent’s 24-hour Automated Investor Line at
1-800-246-5463.
You may place your redemption order after you
have
provided the bank instructions that will be requested. |
|
By
Internet |
Place
your redemption request at www.invesco.com/us. You will be
allowed
to redeem by Internet if:
▪ You
can provide proper identification information;
▪ Your
redemption proceeds do not exceed $250,000 per Fund; and
▪ You
have already provided proper bank information.
Redemptions
from Employer Sponsored Retirement and Benefit
Plans
and Employer Sponsored IRAs may be initiated only in writing
and
require the completion of the appropriate distribution form, as
well
as employer authorization. |
|
*Class
R5 and R6 shares may only be redeemed through a financial intermediary or by
telephone
at (800) 959-4246. | |
Timing
and Method of Payment
The
Funds’ transfer agent typically expects to pay redemption proceeds to redeeming shareholders within one business day after a redemption
request is received in good order, regardless of the method a Fund uses to make such payment. However, a Fund may take up to seven days
to process a redemption request. “Good order” means that all necessary information and documentation related to the redemption
request have been provided to the Funds’ transfer agent or authorized intermediary, if applicable. If your request is not in good
order, the Funds’ transfer agent may require additional documentation in order to redeem your shares. If you redeem shares recently
purchased by check or ACH, you may be required to wait up to ten calendar days before your redemption proceeds are sent. This delay is
necessary to ensure that the purchase has cleared. You can avoid the check hold period if you pay for your shares with a certified check,
a cashier’s check or a federal wire. Payment may be postponed under unusual circumstances, as allowed by the SEC, such as when the
NYSE restricts or suspends trading.
In
addition, a temporary hold may be placed on the disbursement of redemption
proceeds from an account if there is a reasonable belief that financial exploitation of a Specified Adult (as defined below) has occurred,
is occurring, has been attempted, or will be attempted. Notice of such a delay will be provided in accordance with regulatory requirements.
This temporary hold will be for an initial period of no more than 15 business days while an internal review is performed. Should the internal
review support the belief that financial exploitation has occurred, is occurring, has been attempted or will be attempted, the temporary
hold may be extended for up to 10 additional business days. Both the initial and subsequent hold on the disbursement may be terminated
or extended by a state regulator or an agency or court of competent jurisdiction. For purposes of this paragraph, the term “Specified
Adult” refers to an individual who is (a) a natural person age 65 and older, or (b) a natural person age 18 and older who is reasonably
believed to have a mental or physical impairment that renders the individual unable to protect his or her own interests.
If
you redeem by telephone, the Funds’ transfer agent will transmit the amount
of redemption proceeds electronically to your pre-authorized bank account. Redemption checks are mailed to your address of record, via
first
A-13 The
Invesco Funds
class
U.S. mail, unless you make other arrangements with the Funds’ transfer agent.
The
Funds’ transfer agent uses reasonable procedures to confirm that instructions
communicated via telephone and the Internet are genuine, and the Funds and the Funds’ transfer agent are not liable for losses arising
from actions taken in accordance with instructions that are reasonably believed to be genuine.
A
Fund typically expects to use holdings of cash and cash equivalents and
sales of portfolio assets to meet redemption requests, both regularly and in stressed market conditions. The Funds also have the ability
to redeem in kind as further described below under “Redemptions in Kind.” Certain Funds have a line of credit,
as disclosed in such Funds’ principal investment strategy
and risk disclosures that may be used to meet redemptions in stressed market conditions.
Expedited
Redemptions (for Invesco Cash Reserve Shares of Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio only)
If
you place your redemption order by telephone, before 11:30 a.m. Eastern Time and request an expedited redemption, the Funds’ transfer
agent will transmit payment of redemption proceeds on that same day via federal wire to a bank of record on your account. If the Funds’
transfer agent receives your redemption order after 11:30 a.m. Eastern Time and before the close of the customary trading session of the
NYSE, it will transmit payment on the next business day.
Suspension
of Redemptions
The
right of redemption may be suspended or the date of payment postponed when (a) trading on the NYSE is restricted, as determined by applicable
rules and regulations of the SEC, (b) the NYSE is closed for other than customary weekend and holiday closings, (c) the SEC has by order
permitted such suspension, or (d) an emergency as determined by the SEC exists making disposition of portfolio securities or the valuation
of the net assets of the Fund not reasonably practicable. With respect to Invesco Government Money Market Fund, Invesco U.S. Government
Money Portfolio, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio, in the event that the Fund, at the end
of a business day, has invested less than 10% of its total assets in weekly liquid assets or, with respect to the retail and government
money market funds, the Fund’s price per share as computed for the purpose of distribution, redemption and repurchase, rounded to
the nearest 1%, has deviated from the stable price established by the Fund’s Board of Trustees (“Board”) or the Board,
including a majority of trustees who are not interested persons as defined in the 1940 Act, determines that such a deviation is likely
to occur, and the Board, including a majority of trustees who are not interested persons of the Fund, irrevocably has approved the liquidation
of the Fund, the Fund’s Board has the authority to suspend redemptions of Fund shares.
Liquidity
Fees and Redemption Gates
For
Invesco Premier Portfolio, if the Fund’s weekly liquid assets fall below 30% of its total assets, the Board, in its discretion,
may impose liquidity fees of up to 2% of the value of the shares redeemed and/or suspend redemptions (redemption gates). In addition,
if any such Fund’s weekly liquid assets falls below 10% of its total assets at the end of any business day, the Fund must impose
a 1% liquidity fee on shareholder redemptions unless the Board determines that not doing so is in the best interests of the Fund.
Liquidity
fees and redemption gates are most likely to be imposed, if at all,
during times of extraordinary market stress. In the event that a liquidity fee or redemption gate is imposed, the Board expects that for
the duration of its implementation and the day after which such gate or fee is terminated, the Fund would strike only one net asset value
per day, at the Fund’s last scheduled net asset value calculation time.
The
imposition and termination of a liquidity fee or redemption gate will be
reported by a Fund to the SEC on Form N-CR. Such information will also be available on the Fund’s website. In addition, a Fund will
communicate such action through a supplement to its registration statement and may further communicate such action through a press release
or by other means. If a liquidity fee is applied by the Board, it will be charged on all
redemption
orders submitted after the effective time of the imposition of the fee by the Board. Liquidity fees would reduce the amount you receive
upon redemption of your shares. In the event a Fund imposes a redemption gate, the Fund or any financial intermediary on its behalf will
not accept redemption requests until the Fund provides notice that the redemption gate has been terminated.
Redemption
requests submitted while a redemption gate is imposed will be cancelled
without further notice. If shareholders still wish to redeem their shares after a redemption gate has been lifted, they will need to submit
a new redemption request.
Liquidity
fees and redemption gates will generally be used to assist a Fund
to help preserve its market–based NAV per share. It is possible that a liquidity fee will be returned to shareholders in the form
of a distribution. The Board may, in its discretion, terminate a liquidity fee or redemption gate at any time if it believes such action
to be in the best interest of a Fund. Also, liquidity fees and redemption gates will automatically terminate at the beginning of the next
business day once a Fund’s weekly liquid assets reach at least 30% of its total assets. Redemption gates may only last up to 10
business days in any 90-day period. When a fee or a gate is in place, the Fund may elect not to permit the purchase of shares or to subject
the purchase of shares to certain conditions, which may include affirmation of the purchaser’s knowledge that a fee or a gate is
in effect. When a fee or a gate is in place, shareholders will not be permitted to exchange into or out of a Fund.
There
is some degree of uncertainty with respect to the tax treatment of liquidity
fees received by a Fund, and such tax treatment may be the subject to future IRS guidance. If a Fund receives liquidity fees, it will
consider the appropriate tax treatment of such fees to the Fund at such time.
Financial
intermediaries are required to promptly take the steps requested
by the Funds or their designees to impose or help to implement a liquidity fee or redemption gate as requested from time to time, including
the rejection of orders due to the imposition of a fee or gate or the prompt re-confirmation of orders following a notification regarding
the implementation of a fee or gate. If a liquidity fee is imposed, these steps are expected to include the submission of separate, rather
than combined, purchase and redemption orders from the time of the effectiveness of the liquidity fee or redemption gate and the submission
of such order information to the Fund or its designee prior to the next calculation of a Fund’s net asset value. Unless otherwise
agreed to between a Fund and financial intermediary, the Fund will withhold liquidity fees on behalf of financial intermediaries. With
regard to such orders, a redemption request that a Fund determines in its sole discretion has been received in good order by the Fund
or its designated agent prior to the imposition of a liquidity fee or redemption gate may be paid by the Fund despite the imposition of
a redemption gate or without the deduction of a liquidity fee. If a liquidity fee is imposed during the day, an intermediary who receives
both purchase and redemption orders from a single account holder is not required to net the purchase and redemption orders. However, the
intermediary is permitted to apply the liquidity fee to the net amount of redemptions (even if the purchase order was received prior to
the time the liquidity fee was imposed).
Where
a Financial Intermediary serves as a Fund’s agent for the purpose
of receiving orders, trades that are not transmitted to the Fund by the Financial Intermediary before the time required by the Fund or
the transfer agent may, in the Fund’s discretion, be processed on an as-of basis, and any cost or loss to the Fund or transfer agent
or their affiliates, from such transactions shall be borne exclusively by the Financial Intermediary.
Systematic
Withdrawals (Available for all classes except Class R5 and R6 shares)
You
may arrange for regular periodic withdrawals from your account in amounts equal to or greater than $50 per Fund. The Funds’ transfer
agent will redeem the appropriate number of shares from your account to provide redemption proceeds in the amount requested. You must
have a total account balance of at least $5,000 in order to establish a Systematic Redemption Plan, unless you are establishing a Required
Minimum
A-14 The
Invesco Funds
Distribution
for a Retirement and Benefit Plan. You can stop this plan at any time by giving ten days’ prior notice to the Funds’ transfer
agent.
Check
Writing
The
Funds’ transfer agent provides check writing privileges for accounts in the following Funds and share classes:
◾
Invesco
Government Money Market Fund, Invesco Cash Reserve Shares, Class AX shares, Class Y shares and Investor Class shares
◾
Invesco
U.S. Government Money Portfolio, Invesco Cash Reserve Shares and Class Y shares
◾
Invesco
Premier Portfolio, Investor Class shares
◾
Invesco
Premier U.S. Government Money Portfolio, Investor Class shares
You
may redeem shares of these Funds by writing checks in amounts of $250
or more if you have subscribed to the service by completing a Check Writing authorization form.
Check
writing privileges are not available for Retirement and Benefit Plans.
Checks are not eligible to be converted to ACH by the payee. You may not give authorization to a payee by phone to debit your account
by ACH for a debt owed to the payee.
If
you do not have a sufficient number of shares in your account to cover
the amount of the check and any applicable deferred sales charge, the check will be returned and no shares will be redeemed. Because it
is not possible to determine your account’s value in advance, you should not write a check for the entire value of your account
or try to close your account by writing a check.
A
check writing redemption request which is verifiably submitted to a Fund’s
agent before a liquidity fee or redemption gate is imposed will be considered a valid redemption and will be processed normally.
Signature
Guarantees
The
Funds’ transfer agent requires a signature guarantee in the following circumstances:
◾
When
your redemption proceeds exceed $250,000 per Fund.
◾
When
you request that redemption proceeds be paid to someone other than the registered owner of the account.
◾
When
you request that redemption proceeds be sent somewhere other than the address of record or bank of record on the account.
◾
When
you request that redemption proceeds be sent to a new address or an address that changed in the last 15 days.
The
Funds’ transfer agent will accept a guarantee of your signature by a number
of different types of financial institutions. Call the Funds’ transfer agent for additional information. Some institutions have
transaction amount maximums for these guarantees. Please check with the guarantor institution to determine whether the signature guarantee
offered will be sufficient to cover the value of your transaction request.
Redemptions
in Kind
Although
the Funds generally intend to pay redemption proceeds solely in cash, the Funds reserve the right to determine, in their sole discretion,
whether to satisfy redemption requests by making payment in securities or other property (known as a redemption in kind). Redemptions
in kind may result in transaction costs and/or market fluctuations associated with liquidating or holding the securities, respectively.
Purchases-in-Kind
You
may purchase shares of a Fund by transferring securities to a Fund in exchange for Fund shares (“in-kind purchases”). In-kind
purchases may be made only upon the Funds’ approval and determination that the securities are acceptable investments for the Fund
and are purchased consistent with the Fund’s procedures relating to in-kind purchases. The Funds reserve the right to amend or terminate
this practice at any time. You must call the Funds at (800) 959-4246 before sending any securities. Please see the SAI for additional
details.
Redemptions
by Large Shareholders
At
times, the Fund may experience adverse effects when certain large shareholders redeem large amounts of shares of the Fund. Large redemptions
may cause the Fund to sell portfolio securities at times when it would not otherwise do so. In addition, these transactions may also
accelerate
the realization of taxable income to shareholders (if applicable) if such sales of investments resulted in gains and may also increase
transaction costs and/or increase in the Fund’s expense ratio. When experiencing a redemption by a large shareholder, the Fund may
delay payment of the redemption request up to seven days to provide the investment manager with time to determine if the Fund can redeem
the request-in-kind or to consider other alternatives to lessen the harm to remaining shareholders. Under certain circumstances, however,
the Fund may be unable to delay a redemption request, which could result in the automatic processing of a large redemption that is detrimental
to the Fund and its remaining shareholders.
Redemptions
Initiated by the Funds
If
your account (Class A, C, P, S and Investor Class shares only) has been open at least one year, you have not made an additional purchase
in the account during the past six calendar months, and the value of your account falls below $500 for three consecutive months, the Funds
have the right to redeem the account after giving you 60 days’ prior written notice. You may avoid having your account redeemed
during the notice period by bringing the account value up to $500 or by initiating a Systematic Purchase Plan.
A
financial intermediary may have a different policy regarding redemptions
of accounts with small balances. The Fund is not responsible for any small account balance policies imposed by financial intermediaries
or for notifying shareholders of any changes to them. See “Waivers Available Through Certain Financial Intermediaries and Other
Financial Intermediary-Specific Arrangements” for more information on certain intermediary-specific small account balance policies.
Please consult with your financial intermediary if you have any questions regarding their policies.
If
a Fund determines that you have not provided a correct Social Security
or other tax identification number on your account application, or the Fund is not able to verify your identity as required by law, the
Fund may, at its discretion, redeem the account and distribute the proceeds to you.
In
order to separate retail investors (natural persons) and non-retail investors,
the Invesco Premier Portfolio reserve the right to redeem shares in any account that the Funds cannot confirm to their satisfaction are
beneficially owned by natural persons. The Funds will provide advance written notice of their intent to make any such involuntary redemptions.
The Funds reserve the right to redeem shares in any account that they cannot confirm to their satisfaction are beneficially owned by natural
persons, after providing advance notice.
Neither
a Fund nor its investment adviser will be responsible for any loss
in an investor’s account or tax liability resulting from an involuntary redemption.
Minimum
Account Balance (Available for all classes except Class R5 and R6 shares)
A
low balance fee of $12 per year may be deducted in the fourth quarter of each year from all accounts held in the Funds (each a Fund Account)
with a value less than the low balance amount (the Low Balance Amount) as determined from time to time by the Funds and the Adviser. The
Funds and the Adviser generally expect the Low Balance Amount to be $750, but such amount may be adjusted for any year depending on various
factors, including market conditions. The Low Balance Amount and the date on which it will be deducted from any Fund Account will be posted
on our website, www.invesco.com/us, on or about November 1 of each year. This fee will be payable to the Funds’ transfer agent by
redeeming from a Fund Account sufficient shares owned by a shareholder and will be used by the Funds’ transfer agent to offset amounts
that would otherwise be payable by the Funds to the Funds’ transfer agent under the Funds’ transfer agency agreement with
the Funds’ transfer agent. The low balance fee does not apply to participant accounts in advisory programs or to Employer Sponsored
Retirement and Benefit Plans.
Exchanging
Shares
You
may, under certain circumstances, exchange shares in one Fund for those of another Fund. An exchange is the purchase of shares in one
Fund which is paid for with the proceeds from a redemption of shares of another
A-15 The
Invesco Funds
Fund
effectuated on the same day. Any gain on the transaction may be subject to federal income tax. Accordingly, the procedures and processes
applicable to redemptions of Fund shares, as discussed under the heading “Redeeming Shares” above, will apply. Before requesting
an exchange, review the prospectus of the Fund you wish to acquire.
All
exchanges are subject to the limitations set forth in the prospectuses of
the Funds. If you wish to exchange shares of one Fund for those of another Fund, you must consult the prospectus of the Fund whose shares
you wish to acquire to determine whether the Fund is offering shares to new investors and whether you are eligible to acquire shares of
that Fund.
Permitted
Exchanges
Except
as otherwise provided herein or in the SAI, you generally may exchange your shares for shares of the same class of another Fund. The following
table shows generally permitted exchanges from one Fund to another Fund (exceptions listed below under “Exchanges Not Permitted”):
|
Exchange
From |
Exchange
To |
|
Invesco
Cash Reserve Shares |
Class
A, C, R, Investor Class |
|
| |
|
Class
A |
Class
A, Investor Class, Invesco Cash Reserve Shares* |
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| |
|
Class
A2 |
Class
A, Investor Class, Invesco Cash Reserve Shares |
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| |
|
Class
AX |
Class
A, AX, Investor Class, Invesco Cash Reserve Shares |
|
| |
|
Investor
Class |
Class
A, Investor Class |
|
| |
|
Class
P |
Class
A, Invesco Cash Reserve Shares |
|
| |
|
Class
S |
Class
A, S, Invesco Cash Reserve Shares |
|
| |
|
Class
C |
Class
C* |
|
| |
|
Class
CX |
Class
C, CX |
|
| |
|
Class
R |
Class
R* |
|
| |
|
Class
R5 |
Class
R5 |
|
| |
|
Class
R6 |
Class
R6 |
|
| |
|
Class
Y |
Class
Y* |
|
|
|
|
* You
may exchange Class Y shares of Invesco U.S. Government Money Portfolio for Class A, C
or
R shares of any other Fund as long as you are otherwise eligible for such share class. If you
exchange
Class Y shares of Invesco U.S. Government Money Portfolio for Class A, C or R shares
of
any other Fund, you may exchange those Class A, C or R shares back into Class Y shares of
Invesco
U.S. Government Money Portfolio, but not Class Y shares of any other Fund. | |
Exchanges
into Invesco Senior Loan Fund
Invesco
Senior Loan Fund is a closed-end interval fund that continuously offers its shares pursuant to the terms and conditions of its prospectus.
The Adviser is the investment adviser for the Invesco Senior Loan Fund. As with the Invesco Funds, you generally may exchange your shares
of Class A (Invesco Cash Reserve Shares of Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio) or Class
C of any Invesco Fund for shares of Class A or Class C, respectively, of Invesco Senior Loan Fund. Please refer to the prospectus for
the Invesco Senior Loan Fund for more information, including limitations on exchanges out of Invesco Senior Loan Fund.
Exchanges
Not Permitted
The
following exchanges are not permitted:
◾
Investor
Class shares cannot be exchanged for Class A shares of any Fund which offers Investor Class shares.
◾
Class A2
shares of Invesco Short Duration Inflation Protected Fund and Invesco Limited Term Municipal Income Fund cannot be exchanged for Class A shares
of those Funds.
◾
Invesco
Cash Reserve Shares cannot be exchanged for Class C or R shares if the shares being exchanged were acquired by exchange from Class A
shares of any Fund.
◾
All
existing systematic exchanges and reallocations will cease and these options will no longer be available on all 403(b) prototype plans.
◾
Class
A, C or R shares of a Fund acquired by exchange of Class Y shares of Invesco U.S. Government Money Portfolio cannot be exchanged for Class
Y shares of any Fund, except Class Y shares of Invesco U.S. Government Money Portfolio.
Exchange
Conditions
Shares
must have been held for at least one day prior to the exchange with the exception of dividends and distributions that are reinvested.
Under
unusual market conditions, a Fund may delay the exchange of shares
for up to five business days if it determines that it would be materially disadvantaged by the immediate transfer of exchange proceeds.
The exchange privilege is not an option or right to purchase shares. Any of the participating Funds or the distributor may modify or terminate
this privilege at any time.
Initial
Sales Charges, CDSCs and 12b-1 Fees Applicable to Exchanges
You
may be required to pay an initial sales charge when exchanging from a Fund with a lower initial sales charge than the one into which you
are exchanging. If you exchange into shares that are subject to a CDSC, the Funds’ transfer agent will begin the holding period
for purposes of calculating the CDSC on the date you made your initial purchase.
In
addition, as a result of differences in the forms of distribution plans among
the Funds, certain exchanges of Class A shares, Class C shares, and Class R shares of a Fund for the same class of shares of another Fund
may result in investors paying a higher or a lower 12b-1 fee on the Fund being exchanged into. Please refer to the prospectus fee table
and financial highlights table and the SAI for more information on the fees and expenses, including applicable 12b-1 fees, of the Fund
you wish to acquire.
Share
Class Conversions
Shares
of one class of a Fund may be converted into shares of another class of the same Fund, provided that you are eligible to buy that share
class. Investors who hold Fund shares through a financial intermediary that does not have an agreement to make certain share classes of
the Funds available or that cannot systematically support the conversion may not be eligible to convert their shares. Furthermore, your
financial intermediary may have discretion to effect a conversion on your behalf. Consult with your financial intermediary for details.
Any CDSC associated with the converting shares will be assessed immediately prior to the conversion to the new share class. The conversion
of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes and no gain
or loss will be reported on the transaction. See the applicable prospectus for share class information.
Fees
and expenses differ between share classes. You should read the prospectus
for the share class into which you are seeking to convert your shares prior to the conversion.
Automatic
Conversion of Class C and Class CX Shares
Class
C and Class CX shares held for eight years after purchase are eligible for automatic conversion into Class A and Class AX shares of the
same Fund, respectively, except that for the Invesco Government Money Market Fund and Invesco U.S. Government Money Portfolio, the Funds’
Class C and/or Class CX shares would be eligible to automatically convert into the Fund’s Invesco Cash Reserve Share Class and all
existing Class C shares of Invesco Short Term Municipal Fund will automatically convert to Class A shares of that Fund at the end of June
2022 (the Conversion Feature). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month
following the eighth anniversary after a purchase of Class C or Class CX shares (the Conversion Date). The first conversion of Class C
and Class CX shares to Class A and Class AX shares under this policy would occur at the end of December 2020 for all Class C and Class
CX shares that were held for more than eight years as of November 30, 2020.
Automatic
conversions pursuant to the Conversion Feature will be on the basis
of the NAV per share, without the imposition of any sales charge (including a CDSC), fee or other charge. All such automatic conversions
of Class C and Class CX shares will constitute tax-free exchanges for federal income tax purposes.
Class
C and Class CX shares of a Fund acquired through a reinvestment of
dividends and distributions will convert to Class A and Class AX shares, respectively, of the Fund (or Invesco Cash Reserve shares for
Invesco
A-16 The
Invesco Funds
Government
Money Market Fund) on the Conversion Date pro rata with the converting Class C and Class CX shares of that Fund that were not acquired
through reinvestment of dividends and distributions.
Class
C or Class CX shares held through a financial intermediary in existing
omnibus Employer Sponsored Retirement and Benefit Plans and other omnibus accounts may be converted pursuant to the Conversion Feature
by the financial intermediary once it is determined that the Class C or Class CX shares have been held for the required holding period.
It is the financial intermediary’s (and not the Fund’s) responsibility to keep records and to ensure that the shareholder
is credited with the proper holding period as the Fund and its agents may not have transparency into how long a shareholder has held Class
C or Class CX shares for purposes of determining whether such Class C or Class CX shares are eligible to automatically convert pursuant
to the Conversion Feature. In order to determine eligibility for automatic conversion in these circumstances, it is the responsibility
of the shareholder or their financial intermediary to determine that the shareholder is eligible to exercise the Conversion Feature, and
the shareholder or their financial intermediary may be required to maintain records that substantiate the holding period of Class C or
Class CX shares.
In
addition, a financial intermediary may sponsor and/or control programs
or platforms that impose a different conversion schedule or eligibility requirements for conversions of Class C or Class CX shares. In
these cases, Class C and Class CX shares of certain shareholders may not be eligible for automatic conversion pursuant to the Conversion
Feature as described above. The Fund has no responsibility for overseeing, monitoring or implementing a financial intermediary’s
process for determining whether a shareholder meets the required holding period for automatic conversion. Please consult with your financial
intermediary if you have any questions regarding the Conversion Feature.
Share
Class Conversions Not Permitted
The
following share class conversions are not permitted:
◾
Conversions
into Class A from Class A2 of the same Fund.
◾
Conversions
into Class A2, Class AX, Class CX, Class P or Class S of the same Fund.
Rights
Reserved by the Funds
Each
Fund and its agents reserve the right at any time to:
◾
Reject
or cancel all or any part of any purchase or exchange order.
◾
Modify
any terms or conditions related to the purchase, redemption or exchange of shares of any Fund.
◾
Reject
or cancel any request to establish a Systematic Purchase Plan or Systematic Redemption Plan.
◾
Modify
or terminate any sales charge waivers or exceptions.
◾
Suspend,
change or withdraw all or any part of the offering made by this prospectus.
Excessive
Short-Term Trading Activity (Market Timing) Disclosures
While
the Funds provide their shareholders with daily liquidity, their investment programs are designed to serve long-term investors and are
not designed to accommodate excessive short-term trading activity in violation of our policies described below. Excessive short-term trading
activity in the Funds’ shares (i.e., a purchase of Fund shares followed shortly thereafter by a redemption of such shares, or vice
versa) may hurt the long-term performance of certain Funds by requiring them to maintain an excessive amount of cash or to liquidate portfolio
holdings at a disadvantageous time, thus interfering with the efficient management of such Funds by causing them to incur increased brokerage
and administrative costs. Where excessive short-term trading activity seeks to take advantage of arbitrage opportunities from stale prices
for portfolio securities, the value of Fund shares held by long-term investors may be diluted. The Board has adopted policies and procedures
designed to discourage excessive or short-term trading of Fund shares for all Funds except the money market funds, Invesco Conservative
Income Fund, and Invesco Short Term Municipal Fund. However, there is the risk that these Funds’ policies and procedures will prove
ineffective in whole or in part to detect or prevent excessive or
short-term
trading. These Funds may alter their policies at any time without prior notice to shareholders if the Adviser believes the change would
be in the best interests of long-term shareholders.
Invesco
and certain of its corporate affiliates (Invesco and such affiliates,
collectively, the Invesco Affiliates) currently use the following tools designed to discourage excessive short-term trading in the retail
Funds:
◾
Trade
activity monitoring.
◾
Discretion
to reject orders.
◾
Purchase
blocking.
◾
The
use of fair value pricing consistent with the valuation policy approved by the Board and related procedures.
Each
of these tools is described in more detail below. Although these tools
are designed to discourage excessive short-term trading, you should understand that none of these tools alone nor all of them taken together
eliminate the possibility that excessive short-term trading activity in the Funds will occur. Moreover, each of these tools involves judgments
that are inherently subjective. Invesco Affiliates seek to make these judgments to the best of their abilities in a manner that they believe
is consistent with long-term shareholder interests.
Money
Market Funds. The Boards of Invesco Government Money Market Fund,
Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio (the money market
funds) have not adopted any policies and procedures that would limit frequent purchases and redemptions of such Funds’ shares. The
Boards of the money market funds considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal. Nonetheless, to the extent that a money market fund must maintain additional cash and/or
securities with short-term durations in greater amounts than may otherwise be required or borrow to honor redemption requests, the money
market fund’s yield could be negatively impacted.
The
Boards of the money market funds do not believe that it is appropriate
to adopt any such policies and procedures for the money market funds for the following reasons:
◾
The
money market funds are offered to investors as cash management vehicles; therefore, investors should be able to purchase and redeem shares
regularly and frequently.
◾
One
of the advantages of a money market fund as compared to other investment options is liquidity. Any policy that diminishes the liquidity
of the money market funds will be detrimental to the continuing operations of such Funds.
◾
With
respect to the money market funds maintaining a constant net asset value, the money market funds’ portfolio securities are valued
on the basis of amortized cost, and such Funds seek to maintain a constant net asset value. As a result, the money market funds are not
subject to price arbitrage opportunities.
◾
With
respect to the money market funds maintaining a constant net asset value, because such Funds seek to maintain a constant net asset value,
investors are more likely to expect to receive the amount they originally invested in the Funds upon redemption than other mutual funds.
Invesco
Conservative Income Fund. The Board of Invesco Conservative Income
Fund has not adopted any policies and procedures that would limit frequent purchases and redemptions of such Fund’s shares. The
Board of Invesco Conservative Income Fund considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal especially in light of the reasons for not having such a policy as described below. Nonetheless,
to the extent that the Fund must maintain additional cash and/or securities with short-term durations in greater amounts than may otherwise
be required or borrow to honor redemption requests, the Fund’s yield could be negatively impacted.
The
Board of the Invesco Conservative Income Fund does not believe that
it is appropriate to adopt any such policies and procedures for the Fund for the following reasons:
◾
The
Fund is offered to investors as a cash management vehicle; investors perceive an investment in the Fund as an alternative to cash and
must be able to purchase and redeem shares regularly and frequently.
A-17 The
Invesco Funds
◾
One
of the advantages of the Fund as compared to other investment options is liquidity. Any policy that diminishes the liquidity of the Fund
will be detrimental to the continuing operations of the Fund.
Excessive
trading activity in the Fund’s shares may cause the Fund to incur
increased brokerage and administrative costs.
The
Fund and its agent reserve the right at any time to reject or cancel any
part of any purchase order. This could occur if the Fund determines that such purchase may disrupt the Fund’s operation or performance.
Invesco
Short Term Municipal Fund. The Board of Invesco Short Term Municipal
Fund has not adopted any policies and procedures that would limit frequent purchases and redemptions of such Fund’s shares. The
Board of Invesco Short Term Municipal Fund considered the risks of not having a specific policy that limits frequent purchases and redemptions,
and determined that those risks were minimal, especially in light of the reasons for not having such a policy as described below. Nonetheless,
to the extent that the Fund must maintain additional cash and/or securities with short-term durations in greater amounts than may otherwise
be required or borrow to honor redemption requests, the Fund’s yield could be negatively impacted.
The
Board of Invesco Short Term Municipal Fund does not believe that it is
appropriate to adopt any such policies and procedures for the Fund for the following reasons:
◾
The
Fund is designed to address the needs of retail investors who seek liquidity in their investment and seek the ability to purchase and
redeem shares at any time.
◾
Any
policy that diminishes the ability of shareholders to purchase and redeem shares of the Fund will be detrimental to the continuing operations
of the Fund.
◾
The
Fund generally invests in short duration liquid investment grade municipal securities.
Excessive
trading activity in the Fund’s shares may cause the Fund to incur
increased brokerage and administrative costs. The Fund and its agent reserve the right at any time to reject or cancel any part of any
purchase order. This could occur if the Fund determines that such purchase may disrupt the Fund’s operation or performance.
Trade
Activity Monitoring
Invesco
Affiliates monitor selected trades on a daily basis in an effort to detect excessive short-term trading activities. If, as a result of
this monitoring, Invesco Affiliates believe that a shareholder has engaged in excessive short-term trading, they will seek to act in a
manner that they believe is consistent with the best interests of long-term investors, which may include taking steps such as (i) asking
the shareholder to take action to stop such activities or (ii) refusing to process future purchases or exchanges related to such activities
in the shareholder’s accounts other than exchanges into a money market fund. Invesco Affiliates will use reasonable efforts to apply
the Funds’ policies uniformly given the practical limitations described above.
The
ability of Invesco Affiliates to monitor trades that are made through accounts
that are maintained by intermediaries (rather than the Funds’ transfer agent) and through conduit investment vehicles may be limited
or non-existent.
Discretion
to Reject Orders
If
a Fund or an Invesco Affiliate determines, in its sole discretion, that your short-term trading activity is excessive, the Fund may, in
its sole discretion, reject any additional purchase and exchange orders. This discretion may be exercised with respect to purchase or
exchange orders placed directly with the Funds’ transfer agent or through a financial intermediary.
Purchase
Blocking Policy
The
Funds (except those listed below) have adopted a policy under which any shareholder redeeming shares having a value of $50,000 or more
from a Fund on any trading day will be precluded from investing in that Fund for 30 calendar days after the redemption transaction date.
The policy applies to redemptions and purchases that are part of exchange transactions. Under the purchase blocking policy, certain purchases
will not be prevented and certain redemptions will not trigger a purchase block, such as: purchases
and redemptions
of shares having a value of less than $50,000; systematic purchase, redemption and exchange account options; transfers of shares within
the same Fund; non-discretionary rebalancing in fund-of-funds; asset allocation features; fee-based accounts; account maintenance fees;
small balance account fees; plan-level omnibus Retirement and Benefit Plans; death and disability and hardship distributions; loan transactions;
transfers of assets; Retirement and Benefit Plan rollovers; IRA conversions and re-characterizations; and mandatory distributions from
Retirement and Benefit Plans.
The
Funds reserve the right to modify any of the parameters (including those
not listed above) of the purchase blocking policy at any time. Further, the purchase blocking policy may be waived with respect to specific
shareholder accounts in those instances where the Adviser determines that its surveillance procedures are adequate to detect frequent
trading in Fund shares.
If
an account is maintained by a financial intermediary whose systems are
unable to apply Invesco’s purchase blocking policy, the Adviser will accept the establishment of an account only if the Adviser
believes the policies and procedures are reasonably designed to enforce the frequent trading policies of the Funds. You should refer to
disclosures provided by the financial intermediary with which you have an account to determine the specific trading restrictions that
apply to you. If the Adviser identifies any activity that may constitute frequent trading, it reserves the right to contact the intermediary
and request that the intermediary either provide information regarding an account owner’s transactions or restrict the account owner’s
trading. There is no guarantee that all instances of frequent trading in Fund shares will be prevented.
The
purchase blocking policy does not apply to Invesco Conservative Income
Fund, Invesco Short Term Municipal Fund, Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government
Money Portfolio and Invesco U.S. Government Money Portfolio.
Pricing
of Shares
Determination
of Net Asset Value
The
price of each Fund’s shares is the Fund’s net asset value per share. The Funds (except Invesco Government Money Market Fund,
Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio) value portfolio
securities for which market quotations are readily available at market value. Securities and other assets quoted in foreign currencies
are valued in U.S. dollars based on the prevailing exchange rates on that day. The Funds (except Invesco Government Money Market Fund,
Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio) value securities
and assets for which market quotations are unavailable at their “fair value,” which is described below. Invesco Government
Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio
value portfolio securities on the basis of amortized cost, which approximates market value. This method of valuation is designed to enable
a Fund to price its shares at $1.00 per share. The Funds cannot guarantee their net asset value will always remain at $1.00 per share.
Securities and other assets quoted in foreign currencies are valued in U.S. dollars based on the prevailing exchange rates on that day.
The Fund values securities and assets for which market quotations are unavailable at their “fair value,” which is described
below.
Even
when market quotations are available, they may be stale or not
representative of market value in the Adviser’s judgment (“unreliable”)
because the security is not traded frequently, trading on the security
ceased before the close of the trading market or issuer specific events occurred after the security ceased trading or because of the passage
of time between the close of the market on which the security trades and the close of the NYSE and when the Fund calculates its net asset
value. Issuer specific events may cause the last market quotation to be unreliable. Such events may include a merger or insolvency, events
that affect a geographical area or an industry segment, such as political events or natural disasters, or market events, such as a significant
movement in the U.S. market. Where
A-18 The
Invesco Funds
the Adviser
determines that the closing price of the security is stale or unreliable, the Adviser will value the security at its fair value.
A
fair value price is an estimated price that requires consideration of all appropriate factors, including indications of fair value available
from pricing services. Fair value pricing involves judgment and a Fund that uses fair value methodologies may value securities higher
or lower than another Fund using market quotations or its own fair value methodologies to price the same securities. Investors who purchase
or redeem Fund shares on days when the Fund is holding fair-valued securities may receive a greater or lesser number of shares, or higher
or lower redemption proceeds, than they would have received if the Fund had not fair-valued the security or had used a different methodology.
The
Board has designated the Adviser to perform the daily determination
of fair value prices in accordance with Board approved
policies and related procedures,
subject to the Board’s oversight. Fair value pricing methods
and pricing services can change from time to time.
The
intended effect of applying fair value pricing is to compute an NAV that
accurately reflects the value of a Fund’s portfolio at the time that the NAV is calculated. An additional intended effect is to
discourage those seeking to take advantage of arbitrage opportunities resulting from “stale” prices and to mitigate the dilutive
impact of any such arbitrage. However, the application of fair value pricing cannot eliminate the possibility that arbitrage opportunities
will exist.
Specific
types of securities are valued as follows:
Senior
Secured Floating Rate Loans and Senior Secured Floating Rate Debt
Securities. Senior secured floating rate loans and senior secured
floating rate debt securities are fair valued using evaluated quotes provided by an independent pricing service. Evaluated quotes provided
by the pricing service may reflect appropriate factors such as market quotes, ratings, tranche type, industry, company performance, spread,
individual trading characteristics, institution-size trading in similar groups of securities and other market data.
Domestic
Exchange Traded Equity Securities. Market quotations are generally
available and reliable for domestic exchange traded equity securities. If market quotations are not available or are unreliable, the Adviser
will value the security at fair value in good faith using the valuation policy approved by the Board and related procedures.
Foreign
Securities. If market quotations are available and reliable for
foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign
securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular
security and the close of the customary trading session on the NYSE events occur that are significant and may make the closing price unreliable,
the Fund may fair value the security. If an issuer specific event has occurred that the Adviser determines, in its judgment, is likely
to have affected the closing price of a foreign security, it will price the security at fair value. The Adviser also relies on a screening
process from a pricing vendor to indicate the degree of certainty, based on historical data, that the closing price in the principal market
where a foreign security trades is not the current market value as of the close of the NYSE. For foreign securities where the Adviser
believes, at the approved degree of certainty, that the price is not reflective of current market value, the Adviser will use the indication
of fair value from the pricing service to determine the fair value of the security. The pricing vendor, pricing methodology or degree
of certainty may change from time to time.
Fund
securities primarily traded on foreign markets may trade on days that
are not business days of the Fund. Because the net asset value of Fund shares is determined only on business days of the Fund, the value
of the portfolio securities of a Fund that invests in foreign securities may change on days when you will not be able to purchase or redeem
shares of the Fund.
Fixed
Income Securities. Fixed income securities, such as government,
corporate, asset-backed and municipal bonds, convertible securities, including high yield or junk bonds, and loans, generally are valued
on the basis of prices provided by independent pricing services. Prices provided by the pricing services may be determined without exclusive
reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in
similar
groups of securities, developments related to special securities, dividend rate, maturity and other market data. Pricing services generally
value fixed income securities assuming orderly transactions of institutional round lot size, but a Fund may hold or transact in the same
securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Prices received from pricing
services are fair value prices. In addition, if the price provided by the pricing service and independent quoted prices are unreliable,
the Adviser will fair value the security using the valuation policy approved by the Board and related procedures.
Short-term
Securities. Invesco Government Money Market Fund, Invesco Premier
Portfolio, Invesco Premier U.S. Government Money Portfolio and Invesco U.S. Government Money Portfolio value all their securities at amortized
cost. Invesco Limited Term Municipal Income Fund values variable rate securities that have an unconditional demand or put feature exercisable
within seven days or less at par, which reflects the market value of such securities.
Futures
and Options. Futures contracts are valued at the final settlement
price set by the exchange on which they are principally traded. U.S.
exchange-traded options are valued at the mean between the last
bid and asked prices from the exchange on which they principally trade. Non-U.S. exchange-traded options are valued at the final settlement
price set by
the exchange on which they trade. Options not listed on an exchange and swaps generally are valued using pricing provided from independent
pricing services.
Swap
Agreements. Swap Agreements are fair valued using an evaluated
quote provided by an independent pricing service. Evaluated quotes provided by the pricing service are based on a model that may include
end of day net present values, spreads, ratings, industry and company performance.
Open-end
Funds. If a Fund invests in other open-end funds, other than open-end
funds that are exchange traded, the investing Fund will calculate its net asset value using the net asset value of the underlying fund
in which it invests, and the prospectuses for such open-end funds explain the circumstances under which they will use fair value pricing
and the effects of using fair value pricing.
Each
Fund, except for Invesco Government Money Market Fund, Invesco Premier
Portfolio and Invesco Premier U.S. Government Money Portfolio, generally determines the net asset value of its shares on each day the
NYSE is open for trading (a business day) as of approximately 4:00 p.m. Eastern Time (the customary close of regular trading) or earlier
in the case of a scheduled early close. In the event of an unscheduled early close of the NYSE, each Fund, except for Invesco Government
Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio, generally still will determine the net
asset value of its shares as of 4:00 p.m. Eastern Time on that business day. Portfolio securities traded on the NYSE would be valued at
their closing prices unless the Adviser determines
that a “fair value” adjustment is appropriate due to subsequent events occurring after an early close consistent with the
valuation policy approved
by the Board and related procedures. Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government
Money Portfolio will generally determine the net asset value of their shares at 5:30 p.m. Eastern Time on each business day. A business
day for Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio is any day
that (1) both the Federal Reserve Bank of New York and a Fund’s custodian are open for business and (2) the primary trading markets
for the Fund’s portfolio instruments are open and the Fund’s management believes there is an adequate market to meet purchase
and redemption requests. Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money
Portfolio are authorized not to open for trading on a day that is otherwise a business day if the Securities Industry and Financial Markets
Association (SIFMA) recommends that government securities dealers not open for trading; any such day will not be considered a business
day. Invesco Government Money Market Fund, Invesco Premier Portfolio and Invesco Premier U.S. Government Money Portfolio, Invesco
U.S. Government Money Portfolio also may close early on a business day if SIFMA recommends that government securities dealers close early.
If
A-19 The
Invesco Funds
Invesco
Government Money Market Fund, Invesco Premier Portfolio or Invesco Premier U.S. Government Money Portfolio uses its discretion to
close early on a business day, the Fund will calculate its net asset value as of the time of such closing Invesco Premier Portfolio and
Invesco U.S. Government Money Portfolio are authorized to not open for trading on a day that is otherwise a business day if the NYSE recommends
that government securities dealers not open for trading; any such day will not be considered a business day. Invesco Premier Portfolio
also may close early on a business day if the NYSE recommends that government securities dealers close early.
For
financial reporting purposes and shareholder transactions on the last
day of the fiscal quarter, transactions are normally accounted for on a trade date basis. For purposes of executing shareholder transactions
in the normal course of business (other than shareholder transactions at a fiscal period-end), each Fund’s portfolio securities
transactions are recorded no later than the first business day following the trade date.
The
Invesco Advantage International Fund, Invesco Balanced-Risk Allocation
Fund, Invesco Balanced-Risk Commodity Strategy Fund, Invesco Fundamental Alternatives Fund, Invesco Global Allocation Fund, Invesco Global
Strategic Income Fund, Invesco Gold & Special Minerals Fund, Invesco High Yield Bond Factor Fund, Invesco International Bond Fund
and Invesco Macro Allocation Strategy Fund may each invest up to 25% of their total assets in shares of their respective subsidiaries
(the Subsidiaries). The Subsidiaries offer to redeem all or a portion of their shares at the current net asset value per share every regular
business day. The value of shares of the Subsidiaries will fluctuate with the value of the respective Subsidiary’s portfolio investments.
The Subsidiaries price their portfolio investments pursuant to the same pricing and valuation methodologies and procedures used by the
Funds, which require, among other things, that each of the Subsidiaries’ portfolio investments be marked-to-market (that is, the
value on each of the Subsidiaries’ books changes) each business day to reflect changes in the market value of the investment.
Each
Fund’s current net asset value per share is made available on the Funds’
website at www.invesco.com/us.
Fair
Value Pricing
Securities
owned by a Fund (except Invesco Government Money Market Fund, Invesco Premier Portfolio, Invesco Premier U.S. Government Money Portfolio
and Invesco U.S. Government Money Portfolio) are to be valued at current market value if market quotations are readily available. All
other securities and assets of a Fund for which market quotations are not readily available are to be valued at fair value determined
in good faith consistent with the valuation policy approved by the Board and related procedures. An effect of fair value pricing may be
to reduce the ability of frequent traders to take advantage of arbitrage opportunities resulting from potentially “stale”
prices of portfolio holdings. However, it cannot eliminate the possibility of frequent trading.
The
price a Fund could receive upon the sale of any investment may differ
from the Adviser's valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair
valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions
(i.e., publicly traded company multiples, growth rate, time to exit), to determine a methodology that will result in a valuation that
the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value
from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and
the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the
investment.
Timing
of Orders
Each
Fund prices purchase, exchange and redemption orders at the net asset value next calculated by the Fund after the Fund’s transfer
agent, authorized agent or designee receives an order in good order for the Fund. Purchase, exchange and redemption orders must be received
prior to the close of business on a business day, as defined by the applicable Fund, to receive that day’s net asset value. Any
applicable sales charges are applied at the time an order is processed.
Currently,
certain financial intermediaries may serve as agents for the Funds
and accept orders on their behalf. Where a financial intermediary serves as agent, the order is priced at the Fund’s net asset value
next calculated after it is accepted by the financial intermediary. In such cases, if requested by a Fund, the financial intermediary
is responsible for providing information with regard to the time that such order for purchase, redemption or exchange was received. Orders
submitted through a financial intermediary that has not received authorization to accept orders on a Fund’s behalf are priced at
the Fund’s net asset value next calculated by the Fund after it receives the order from the financial intermediary and accepts it,
which may not occur on the day submitted to the financial intermediary.
Additional
Information Regarding Deferred Tax Liability (only applicable to the Invesco Steelpath Funds)
In
calculating the Fund’s daily NAV, the Fund will, among other things, account for its deferred tax liability and/or asset balances.
As a result, any deferred tax liability and/or asset is reflected in the Fund’s daily NAV.
The
Fund will accrue a deferred income tax liability balance, at the U.S. federal
corporate income tax rate plus an estimated state and local income tax rate for its future tax liability associated with MLP distributions
considered to be a return of capital, as well as for its future tax liability associated with the capital appreciation of its investments.
The Fund’s current and deferred tax liability, if any, will depend upon the Fund’s net investment gains and losses and realized
and unrealized gains and losses on investments and therefore may vary greatly from year to year depending on the nature of the Fund’s
investments, the performance of those investments and general market conditions. Any deferred tax liability balance will reduce the Fund’s
NAV. Upon the Fund’s sale of an MLP security, the Fund may be liable for previously deferred taxes.
The
Fund will accrue, in accordance with generally accepted accounting principles,
a deferred tax asset balance, which reflects an estimate of the Fund’s future tax benefit associated with net operating losses and
unrealized losses. Any deferred tax asset balance will increase the Fund’s NAV. To the extent the Fund has a deferred tax asset
balance, the Fund will assess, in accordance with generally accepted accounting principles, whether a valuation allowance, which would
offset the value of some or all of the Fund’s deferred tax asset balance, is required. Pursuant to Financial Accounting Standards
Board Accounting Standards Codification 740 (FASB ASC 740), the Fund will assess a valuation allowance to reduce some or all of the deferred
tax asset balance if, based on the weight of all available evidence, both negative and positive, it is more likely than not that some
or all of the deferred tax asset will not be realized. The Fund will use judgment in considering the relative impact of negative and positive
evidence. The weight given to the potential effect of negative and positive evidence will be commensurate with the extent to which such
evidence can be objectively verified. The Fund’s assessment considers, among other matters, the nature, frequency and severity of
current and cumulative losses, the duration of statutory carry forward periods and the associated risk that operating loss and capital
loss carry forwards may be limited or expire unused, and unrealized gains and losses on investments. Consideration is also given to market
cycles, the severity and duration of historical deferred tax assets, the impact of redemptions, and the level of MLP distributions. The
Fund will assess whether a valuation allowance is required to offset some or all of any deferred tax asset in connection with the calculation
of the Fund’s NAV per share each day; however, to the extent the final valuation allowance differs from the estimates the Fund used
in calculating the Fund’s daily NAV, the application of such final valuation allowance could have a material impact on the Fund’s
NAV.
The
Fund’s deferred tax asset and/or liability balances are estimated using
estimates of effective tax rates expected to apply to taxable income in the years such balances are realized. The Fund will rely to some
extent on information provided by MLPs in determining the extent to which distributions received from MLPs constitute a return of capital,
which may not be provided to the Fund on a timely basis, to estimate the Fund’s deferred tax liability and/or asset balances for
purposes of financial statement reporting and determining its NAV. If such information is not
A-20 The
Invesco Funds
received
from such MLPs on a timely basis, the Fund will estimate the extent to which distributions received from MLPs constitute a return of capital
based on average historical tax characterization of distributions made by MLPs. The Fund’s estimates regarding its deferred tax
liability and/or asset balances are made in good faith; however, the daily estimate of the Fund’s deferred tax liability and/or
asset balances used to calculate the Fund’s NAV could vary dramatically from the Fund’s actual tax liability. Actual income
tax expense, if any, will be incurred over many years, depending on if and when investment gains and losses are realized, the then-current
basis of the Fund’s assets and other factors. As a result, the determination of the Fund’s actual tax liability may have a
material impact on the Fund’s NAV. The Fund’s daily NAV calculation will be based on then current estimates and assumptions
regarding the Fund’s deferred tax liability and/or asset balances and any applicable valuation allowance, based on all information
available to the Fund at such time. From time to time, the Fund may modify its estimates or assumptions regarding its deferred tax liability
and/or asset balances and any applicable valuation allowance as new information becomes available. Modifications of the Fund’s estimates
or assumptions regarding its deferred tax liability and/or asset balances and any applicable valuation allowance, changes in generally
accepted accounting principles or related guidance or interpretations thereof, limitations imposed on net operating losses (if any) and
changes in applicable tax law could result in increases or decreases in the Fund’s NAV per share, which could be material.
Taxes
(applicable to all Funds except for the Invesco SteelPath Funds and Invesco Master Loan Fund)
A
Fund intends to qualify each year as a regulated investment company (RIC) and, as such, is not subject to entity-level tax on the income
and gain it distributes to shareholders. If you are a taxable investor, dividends and distributions you receive from a Fund generally
are taxable to you whether you reinvest distributions in additional Fund shares or take them in cash. Every year, you will be sent information
showing the amount of dividends and distributions you received from a Fund during the prior calendar year. In addition, investors in taxable
accounts should be aware of the following basic tax points as supplemented below where relevant:
Fund Tax
Basics
◾
A
Fund earns income generally in the form of dividends or interest on its investments. This income, less expenses incurred in the operation
of a Fund, constitutes the Fund’s net investment income from which dividends may be paid to you. If you are a taxable investor,
distributions of net investment income generally are taxable to you as ordinary income.
◾
Distributions
of net short-term capital gains are taxable to you as ordinary income. A Fund with a high portfolio turnover rate (a measure of how frequently
assets within a Fund are bought and sold) is more likely to generate short-term capital gains than a Fund with a low portfolio turnover
rate.
◾
Distributions
of net long-term capital gains are taxable to you as long-term capital gains no matter how long you have owned your Fund shares.
◾
A
portion of income dividends paid by a Fund to you may be reported as qualified dividend income eligible for taxation by individual shareholders
at long-term capital gain rates, provided certain holding period requirements are met. These reduced rates generally are available for
dividends derived from a Fund’s investment in stocks of domestic corporations and qualified foreign corporations. In the case of
a Fund that invests primarily in debt securities, either none or only a nominal portion of the dividends paid by the Fund will be eligible
for taxation at these reduced rates.
◾
The
use of derivatives by a Fund may cause the Fund to realize higher amounts of ordinary income or short-term capital gain, distributions
from which are taxable to individual shareholders at ordinary income tax rates rather than at the more favorable tax rates for long-term
capital gain.
◾
Distributions
declared to shareholders with a record date in October, November or December—if paid to you by the end of January—are taxable
for federal income tax purposes as if received in December.
◾
Any
long-term or short-term capital gains realized on the sale or redemption of your Fund shares will be subject to federal income tax. For
tax
purposes an exchange of your shares for shares of another Fund is the same as a sale. An exchange occurs when the purchase of shares of
a Fund is made using the proceeds from a redemption of shares of another Fund and is effectuated on the same day as the redemption. Your
gain or loss is calculated by subtracting from the gross proceeds your cost basis. Gross proceeds and, for shares acquired on or after
January 1, 2012 and disposed of after that date, cost basis will be reported to you and the Internal Revenue Service (IRS). Cost
basis will be calculated using the Fund’s default method of average cost, unless you instruct the Fund to use a different calculation
method. As a service to you, the Fund will continue to provide to you (but not the IRS) cost basis information for shares acquired before
2012, when available, using the average cost method. Shareholders should carefully review the cost basis information provided by a Fund
and make any additional basis, holding period or other adjustments that are required when reporting these amounts on their federal income
tax returns. If you hold your Fund shares through a broker (or other nominee), please contact that broker (nominee) with respect to reporting
of cost basis and available elections for your account. For more information about the cost basis methods offered by Invesco, please refer
to the Tax Center located under the Account Access & Forms menu of our website at www.Invesco.com/us.
◾
The
conversion of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes
and no gain or loss will be reported on the transaction. This is true whether the conversion occurs automatically pursuant to the terms
of the class or is initiated by the shareholder.
◾
At
the time you purchase your Fund shares, the Fund’s net asset value may reflect undistributed income or undistributed capital gains.
A subsequent distribution to you of such amounts, although constituting a return of your investment, would be taxable. Buying shares in
a Fund just before it declares an income dividend or capital gains distribution is sometimes known as “buying a dividend.”
In addition, a Fund’s net asset value may, at any time, reflect net unrealized appreciation, which may result in future taxable
distributions to you.
◾
By
law, if you do not provide a Fund with your proper taxpayer identification number and certain required certifications, you may be subject
to backup withholding on any distributions of income, capital gains, or proceeds from the sale of your shares. A Fund also must withhold
if the IRS instructs it to do so. When withholding is required, the amount will be 24% of any distributions or proceeds paid.
◾
An
additional 3.8% Medicare tax is imposed on certain net investment income (including ordinary dividends and capital gain distributions
received from a Fund and net gains from redemptions or other taxable dispositions of Fund shares) of U.S. individuals, estates and trusts
to the extent that such person’s “modified adjusted gross income” (in the case of an individual) or “adjusted
gross income” (in the case of an estate or trust) exceeds a threshold amount. This Medicare tax, if applicable, is reported by you
on, and paid with, your federal income tax return.
◾
You
will not be required to include the portion of dividends paid by a Fund derived from interest on U.S. government obligations in your
gross income for purposes of personal and, in some cases, corporate income taxes in many state and local tax jurisdictions. The percentage
of dividends that constitutes dividends derived from interest on federal obligations will be determined annually. This percentage may
differ from the actual percentage of interest received by the Fund on federal obligations for the particular days on which you hold shares.
◾
Fund
distributions and gains from sale or exchange of your Fund shares generally are subject to state and local income taxes.
◾
If
a Fund qualifies to pass through to you the tax benefits from foreign taxes it pays on its investments, and elects to do so, then any
foreign taxes it pays on these investments may be passed through to you. You will then be required to include your pro-rata share of these
taxes in gross income, even though not actually received by you, and will be entitled either to deduct your share of these taxes in computing
your taxable income, or to claim a foreign tax credit for these taxes against your U.S. federal income tax.
A-21 The
Invesco Funds
◾
Foreign
investors should be aware that U.S. withholding, special certification requirements to avoid U.S. backup withholding and claim
any treaty benefits, and estate taxes may apply to an investment in a Fund.
◾
Under
the Foreign Account Tax Compliance Act (FATCA), a Fund will be required to withhold a 30% tax on income dividends made by the Fund to
certain foreign entities, referred to as foreign financial institutions or non-financial foreign entities, that fail to comply (or be
deemed compliant) with extensive reporting and withholding requirements designed to inform the U.S. Department of the Treasury of U.S.-owned
foreign investment accounts. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide otherwise (which
is not expected). A Fund may disclose the information that it receives from its shareholders to the IRS, non-U.S. taxing authorities or
other parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that is a shareholder
of a Fund fails to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.
◾
If
a Fund invests in an underlying fund taxed as a RIC, please see any relevant section below for more information regarding the Fund’s
investment in such underlying fund.
The
above discussion concerning the taxability of Fund dividends and distributions and of redemptions and exchanges of Fund shares is inapplicable
to investors holding shares through a tax-advantaged arrangement, such as Retirement and Benefit Plans or 529 college savings plans. Such
investors should refer to the applicable account documents/program description for that arrangement for more information regarding the
tax consequences of holding and redeeming Fund shares.
Funds
Investing in Municipal Securities
◾
You
will not be required to include the “exempt-interest” portion of dividends paid by the Fund in either your gross income for
federal income tax purposes or your net investment income subject to the additional 3.8% Medicare tax. You will be required to report
the receipt of exempt-interest dividends and other tax-exempt interest on your federal income tax returns. The percentage of dividends
that constitutes exempt-interest dividends will be determined annually. This percentage may differ from the actual percentage of exempt
interest received by the Fund for the particular days in which you hold shares.
◾
A
Fund may invest in municipal securities the interest on which constitutes an item of tax preference and could give rise to a federal alternative
minimum tax liability for noncorporate shareholders, unless such municipal securities were issued in 2009 or 2010.
◾
Exempt-interest
dividends from interest earned on municipal securities of a state, or its political subdivisions, generally are exempt from that state’s
personal income tax. Most states, however, do not grant tax-free treatment to interest from municipal securities of other states.
◾
A
Fund may invest a portion of its assets in securities that pay income that is not tax-exempt. To the extent that dividends paid by a Fund
are derived from taxable investments or realized capital gains, they will be taxable as ordinary income or long-term capital gains.
◾
A
Fund may distribute to you any market discount and net short-term capital gains from the sale of its portfolio securities. If you are
a taxable investor, Fund distributions from this income are taxable to you as ordinary income, and generally will neither qualify for
the dividends-received deduction in the case of corporate shareholders nor as qualified dividend income subject to reduced rates of taxation
in the case of noncorporate shareholders.
◾
Exempt-interest
dividends from a Fund are taken into account when determining the taxable portion of your social security or railroad retirement benefits,
may be subject to state and local income taxes, may affect the deductibility of interest on certain indebtedness, and may have other collateral
federal income tax consequences for you.
◾
There
are risks that: (a) a security issued as tax-exempt may be reclassified by the IRS or a state tax authority as taxable and/or (b) future
legislative,
administrative or court actions could adversely impact the qualification of income from a tax-exempt security as tax-free. Such reclassifications
or actions could cause interest from a security to become taxable, possibly retroactively, subjecting you to increased tax liability.
In addition, such reclassifications or actions could cause the value of a security, and therefore, the value of the Fund’s shares,
to decline.
Money
Market Funds
◾
A
Fund does not anticipate realizing any long-term capital gains.
◾
If
a Fund expects to maintain a stable net asset value of $1.00 per share, investors should not have any gain or loss on sale or exchange
of Fund shares (unless the investor incurs a liquidity fee on such sale or exchange). See “Liquidity Fees and Redemption Gates.”
◾
There
is some degree of uncertainty with respect to the tax treatment of liquidity fees received by a Fund, and such tax treatment may be the
subject of future IRS guidance. If a Fund receives liquidity fees, it will consider the appropriate tax treatment of such fees to the
Fund at such time.
◾
Unless
you choose to adopt a simplified “NAV method” of accounting (described below), any capital gain or loss on the sale or exchange
of Fund shares (as noted above) generally will be treated either as short-term if you held your Fund shares for one year or less, or long-term
if you held your Fund shares longer. If you elect to adopt the NAV method of accounting, rather than computing gain or loss on every taxable
disposition of Fund shares as described above, you would determine your gain or loss based on the change in the aggregate value of your
Fund shares during a computation period (such as your taxable year), reduced by your net investment (purchases minus sales) in those shares
during that period. Under the NAV method, any resulting net capital gain or loss would be treated as short-term capital gain or loss.
Funds
Investing in Real Estate Securities
◾
Because
of “noncash” expenses such as property depreciation, the cash flow of a REIT that owns properties will exceed its taxable
income. The REIT, and in turn a Fund, may distribute this excess cash to shareholders. Such a distribution is classified as a return of
capital. Return of capital distributions generally are not taxable to you. Your cost basis in your Fund shares will be decreased by the
amount of any return of capital. Any return of capital distributions in excess of your cost basis will be treated as capital gains.
◾
Dividends
paid to shareholders from the Funds’ investments in U.S. REITs generally will not qualify for taxation at long-term capital gain
rates applicable to qualified dividend income.
◾
The
Fund may derive “excess inclusion income” from certain equity interests in mortgage pooling vehicles either directly or through
an investment in a U.S. REIT. Please see the SAI for a discussion of the risks and special tax consequences to shareholders in the event
the Fund realizes excess inclusion income in excess of certain threshold amounts.
◾
Under
the Tax Cuts and Jobs Act, “qualified REIT dividends” (i.e., ordinary REIT dividends other than capital gain dividends and
portions of REIT dividends designated as qualified dividend income) are treated as eligible for a 20% deduction by noncorporate taxpayers.
The Fund may choose to report the special character of “qualified REIT dividends” to a shareholder, provided both the Fund
and a shareholder meet certain holding period requirements with respect to their shares.
◾
The
Fund’s foreign shareholders should see the SAI for a discussion of the risks and special tax consequences to them from a sale of
a U.S. real property interest by a REIT in which the Fund invests.
Funds
Investing in Partnerships
◾
Taxes,
penalties, and interest associated with an audit of a partnership
are generally required to be assessed and collected at the partnership level. Therefore, an adverse federal income tax audit of a partnership
that a Fund invests in (including MLPs taxed as partnerships) could result in the Fund being required to pay federal income tax. A Fund
may have little input in any audit asserted against a partnership and may be contractually or legally obligated to make payments in regard
to deficiencies asserted without the ability to put forward an independent defense. Accordingly,
A-22 The
Invesco Funds
even
if a partnership in which the Fund invests were to remain classified as a partnership (instead of as a corporation), it could be required
to pay additional taxes, interest and penalties as a result of an audit adjustment, and the Fund, as a direct or indirect partner of such
partnership, could be required to bear the economic burden of those taxes, interest and penalties, which would reduce the value of Fund
shares.
◾
Under
the Tax Cuts and Jobs Act “qualified publicly traded partnership income” is treated as eligible for a 20% deduction by noncorporate
taxpayers. The legislation does not contain a provision permitting a RIC, such as a Fund, to pass the special character of this income
through to its shareholders. It is uncertain whether a future technical corrections bill or regulations issued by the IRS will address
this issue to enable a Fund to pass through the special character of “qualified publicly traded partnership income” to its
shareholders.
◾
Some
amounts received by a Fund from the MLPs in which it invests likely will be treated as returns of capital to such Fund because of accelerated
deductions available to the MLPs. The receipt of returns of capital from the MLPs in which a Fund invests could cause some or all of the
Fund’s distributions to be classified as a return of capital. Return of capital distributions generally are not taxable to you.
Your cost basis in your Fund shares will be decreased by the amount of any return of capital. Any return of capital distributions in excess
of your cost basis will be treated as capital gains.
Funds
Investing in Commodities
◾
The
Funds’ strategies of investing through their respective Subsidiary in derivatives and other financially linked instruments whose
performance is expected to correspond to the commodity markets may cause the Funds to recognize more ordinary income and short-term capital
gains taxable as ordinary income than would be the case if the Funds invested directly in commodities.
◾
The
Funds must meet certain requirements under the Code for favorable tax treatment as a RIC, including asset diversification and income requirements.
The IRS has issued a revenue ruling which holds that income derived from commodity-linked swaps is not qualifying income for purposes
of the Income Requirement. In a subsequent revenue ruling, as well as in a number of follow-on private letter rulings (upon which only
the fund that received the private letter ruling may rely), the IRS provides that income from certain alternative investments which create
commodity exposure, such as certain commodity-linked or structured notes or a corporate subsidiary that invests in commodities, may be
considered qualifying income under the Code. However, the portion of such rulings relating to the treatment of a corporation as a regulated
investment company that require a determination of whether a financial instrument or position is a security under section 2(a)(36) of
the 1940 Act was revoked because of changes in the IRS’s position.
(A financial instrument or position that constitutes a security
under section 2(a)(36) of the 1940 Act generates qualifying income for a corporation taxed as a regulated investment company.) The Funds
intend to treat the income each derives from commodity-linked notes as qualifying income based on an opinion from counsel confirming that
income from such investments should be qualifying income because such commodity-linked notes constitute securities under section 2(a)(36)
of the 1940 Act. Each Subsidiary will be classified for federal income tax purposes as a controlled foreign corporation (CFC) with respect
to the Fund. As such, the Fund will be required to include in its gross income each year amounts earned by the Subsidiary during that
year (“Subpart F” income), whether or not such earnings are distributed by the Subsidiary to the Fund (deemed inclusions).
Treasury Regulations also permit the Fund to treat such deemed inclusions of “Subpart F” income from the Subsidiary as qualifying
income to the Fund, even if the Subsidiary does not make a distribution of such income. Consequently, the Fund and the Subsidiary reserve
the right to rely on deemed inclusions being treated as qualifying income to the Fund consistent with recently released Treasury Regulations.
If, contrary to the opinion of counsel or other guidance issued by the IRS, the IRS were to determine that income from direct investment
in commodity-linked notes is non-qualifying, a Fund might fail to satisfy
the
income requirement. In lieu of disqualification, the Funds are permitted to pay a tax for certain failures to satisfy the asset diversification
or income requirements, which, in general, are limited to those due to reasonable cause and not willful neglect. The Funds intend to limit
their investments in their respective Subsidiary to no more than 25% of the value of each Fund’s total assets in order to satisfy
the asset diversification requirement.
Funds
Investing in Foreign Currencies
◾
The
Funds may realize gains from the sale or other disposition of foreign currencies (including but not limited to gains from options, futures
or forward contracts) derived from investing in securities or foreign currencies. The U.S. Treasury Department is authorized to issue
regulations on whether the realization of such foreign currency gains is qualified income for the Funds. If such regulations are issued,
each Fund may not qualify as a RIC and/or the Fund may change its investment policy. As of the date of this prospectus, no regulations
have been issued pursuant to this authorization. It is possible, however, that such regulations may be issued in the future. Additionally,
the IRS has not issued any guidance on how to apply the asset diversification test to such foreign currency positions. Thus, the IRS’
determination as to how to treat such foreign currency positions for purposes of satisfying the asset diversification test might differ
from that of each Fund resulting in the Fund’s failure to qualify as a RIC. In lieu of disqualification, each Fund is permitted
to pay a tax for certain failures to satisfy the asset diversification or income requirements, which, in general, are limited to those
due to reasonable cause and not willful neglect.
◾
The
Funds’ transactions in foreign currencies may give rise to ordinary income or loss to the extent such income or loss results from
fluctuations in the value of the foreign currency concerned. This treatment could increase or decrease the Funds' ordinary income distributions
to you, and may cause some or all of the Funds' previously distributed income to be classified as a return of capital. Return of capital
distributions generally are not taxable to you. Your cost basis in your Fund shares will be decreased by the amount of any return of capital.
Any return of capital distributions in excess of your cost basis will be treated as capital gains.
This
discussion of “Taxes” is for general information only and not
tax advice. All investors should consult their own tax advisers as to the federal, state, local and foreign tax provisions applicable
to them.
Taxes
(applicable to the Invesco SteelPath Funds
only)
Although
the Code generally provides that a RIC does not pay an entity-level income tax, provided that it distributes all or substantially all
of its income, the Fund is not and does not anticipate becoming eligible to elect to be treated as a RIC because most or substantially
all of the Fund’s investments will consist of investments in MLP securities. The RIC tax rules therefore have no application to
the Fund or to its shareholders. As a result, the Fund is treated as a regular corporation, or “C” corporation, for U.S. federal
income tax purposes, and generally is subject to U.S. federal income tax on its taxable income at the corporate income tax rate. In addition,
as a regular corporation, the Fund will be subject to state and local taxes by reason of its tax status and its investments in MLPs. Therefore,
the Fund may have to pay federal, multiple state, and local taxes, which would reduce the Fund’s cash available to make distributions
to shareholders. An estimate for federal, state, and local tax liabilities will reduce the fund’s net asset value. The extent to
which the Fund is required to pay U.S. federal, state or local corporate income, franchise or other corporate taxes could materially reduce
the Fund’s cash available to make distributions to shareholders. In addition, investors in taxable accounts should be aware of the
following basic tax points as supplemented below where relevant:
Fund
Tax Basics
◾
The
Fund intends to invest a significant portion of its assets in MLPs, which are generally treated as partnerships for U.S. federal income
tax purposes. To the extent that the Fund invests in equity securities of an MLP, the Fund will be a partner in such MLP. Accordingly,
the Fund will be
A-23 The
Invesco Funds
required
to take into account the Fund’s allocable share of the income, gains, losses, deductions, and credits recognized by each such MLP,
regardless of whether the MLP distributes cash to the Fund. MLP distributions to partners, such as the Fund, are not taxable unless the
cash amount (or in certain cases, the fair market value of marketable securities) distributed exceeds the Fund’s basis in its MLP
interest. The Fund expects that the cash distributions it will receive with respect to its investments in equity securities of MLPs will
exceed the net taxable income allocated to the Fund from such MLPs because of tax deductions such as depreciation, amortization and depletion
that will be allocated to the Fund from the MLPs. No assurance, however, can be given in this regard. If this expectation is not realized,
the Fund will have a larger corporate income tax expense than expected, which will result in less cash available for distribution to shareholders.
◾
The
Fund will recognize gain or loss on the sale, exchange or other taxable disposition of its portfolio assets, including equity securities
of MLPs, equal to the difference between the amount realized by the Fund on the sale, exchange or other taxable disposition and the Fund’s
adjusted tax basis in such assets. Any such gain will be subject to U.S. federal income tax at the corporate income tax rate, regardless
of how long the Fund has held such assets since preferential capital gain rates do not apply to regular corporations such as the Fund.
The amount realized by the Fund in any case generally will be the amount paid by the purchaser of the assets plus, in the case of MLP
equity securities, the Fund’s allocable share, if any, of the MLP’s debt that will be allocated to the purchaser as a result
of the sale, exchange or other taxable disposition. The Fund’s tax basis in its equity securities in an MLP generally is equal to
the amount the Fund paid for the equity securities, (i) increased by the Fund’s allocable share of the MLP’s net taxable income
and certain MLP debt, if any, and (ii) decreased by the Fund’s allocable share of the MLP’s net losses and any distributions
received by the Fund from the MLP. Although any distribution by an MLP to the Fund in excess of the Fund’s allocable share of such
MLP’s net taxable income may create a temporary economic benefit to the Fund, net of a deferred tax liability, such distribution
will decrease the Fund’s tax basis in its MLP investment and will therefore increase the amount of gain (or decrease the amount
of loss) that will be recognized on the sale of an equity security in the MLP by the Fund. To the extent that the Fund has a net capital
loss in any year, the net capital loss can be carried back three taxable years and forward five taxable years to reduce the Fund’s
capital gains in such years. In the event a capital loss carryover cannot be utilized in the carryover periods, the Fund’s federal
income tax liability may be higher than expected, which will result in less cash available to distribute to shareholders.
◾
Distributions
by the Fund of cash or property in respect of the shares (other than certain distributions in redemption of shares) will be treated as
dividends for U.S. federal income tax purposes to the extent paid from the Fund’s current or accumulated earnings and profits (as
determined under U.S. federal income tax principles). Generally, the Fund’s earnings and profits are computed based upon the Fund’s
taxable income (loss), with certain specified adjustments. Any such dividend likely will be eligible for the dividends-received deduction
if received by an otherwise qualifying corporate U.S. shareholder that meets certain holding period and other requirements for the dividends-received
deduction. Dividends paid by the Fund to certain non-corporate U.S. shareholders (including individuals), generally are eligible for U.S.
federal income taxation at the rates generally applicable to long-term capital gains for individuals provided that the U.S. shareholder
receiving the dividend satisfies applicable holding period and other requirements. Otherwise, dividends paid by the Fund to non-corporate
U.S. Shareholders (including individuals) will be taxable at ordinary income rates.
◾
If
the amount of a Fund distribution exceeds the Fund’s current and accumulated earnings and profits, such excess will be treated first
as a tax-deferred return of capital to the extent of, and in reduction of, a shareholder’s tax basis in the shares, and thereafter
as capital gain to the extent the shareholder held the shares as a capital asset. Any such capital gain will be long-term capital gain
if such shareholder has held the applicable shares for more than one year. The portion of the distribution
received
by a shareholder from the Fund that is treated as a return of capital will decrease the shareholder’s tax basis in his or her Fund
shares (but not below zero), which will result in an increase in the amount of gain (or decrease in the amount of loss) that will be recognized
by the shareholder for tax purposes on the later sale of such Fund shares.
◾
The
Fund anticipates that the cash distributions it will receive with respect to its investments in equity securities of MLPs and which it
will distribute to its shareholders will exceed the Fund’s current and accumulated earnings and profits. Accordingly, the Fund expects
that only a part of its distributions to shareholders with respect to the shares will be treated as dividends for U.S. federal income
tax purposes. No assurance, however, can be given in this regard.
◾
Special
rules may apply to the calculation of the Fund’s earnings and profits. For example, the Fund’s earnings and profits will be
calculated using the straight-line depreciation method rather than the accelerated depreciation method. This difference in treatment may,
for example, result in the Fund’s earnings and profits being higher than the Fund’s taxable income or loss in a particular
year if the MLPs in which the Fund invests calculate their income using accelerated depreciation. Because of these special earnings profits
rules, the Fund may make distributions in a particular year out of earnings and profits (treated as dividends) in excess of the amount
of the Fund’s taxable income or loss for such year, which means that a larger percentage of the Fund ’s distributions could
be taxable to shareholders as ordinary income instead of tax-deferred return of capital or capital gain.
◾
Shareholders
that receive distributions in shares rather than in cash will be treated for U.S. federal income tax purposes as having (i) received a
cash distribution equal to the fair market value of the shares received and (ii) reinvested such amount in shares.
◾
A
redemption of shares will be treated as a sale or exchange of such shares, provided the redemption is not essentially equivalent to a
dividend, is a substantially disproportionate redemption, is a complete redemption of a shareholder’s entire interest in the Fund,
or is in partial liquidation of such Fund. Redemptions that do not qualify for sale or exchange treatment will be treated as distributions
as described above. Upon a redemption treated as a sale or exchange under these rules, a shareholder generally will recognize capital
gain or loss equal to the difference between the adjusted tax basis of his or her shares and the amount received when they are sold.
◾
If
the Fund is required to sell portfolio securities to meet redemption requests, the Fund may recognize income and gains for U.S. federal,
state and local income and other tax purposes, which may result in the imposition of corporate income or other taxes on the Fund and may
increase the Fund’s current and accumulated earnings and profits, which will result in a greater portion of distributions to Fund
shareholders being treated as dividends. Any long-term or short-term capital gains realized on sale or redemption of your Fund shares
will be subject to federal income tax. For tax purposes an exchange of your shares for shares of another Fund is the same as a sale. An
exchange occurs when the purchase of shares of a Fund is made using the proceeds from a redemption of shares of another Fund and is effectuated
on the same day as the redemption. Your gain or loss is calculated by subtracting from the gross proceeds your cost basis. Gross proceeds
and, for shares acquired on or after January 1, 2012 and disposed of after that date, cost basis will be reported to you and the IRS.
Cost basis will be calculated using the Fund’s default method of first-in, first-out (FIFO), unless you instruct the Fund to use
a different calculation method. Shareholders should carefully review the cost basis information provided by a Fund and make any additional
basis, holding period or other adjustments that are required when reporting these amounts on their federal income tax returns. If you
hold your Fund shares through a broker (or other nominee), please contact that broker (nominee) with respect to reporting of cost basis
and available elections for your account. For more information about the cost basis methods offered by Invesco, please refer to the Tax
Center located under the Account Access & Forms menu of our website at www.invesco.com/us.
A-24 The
Invesco Funds
◾
The
conversion of shares of one class of a Fund into shares of another class of the same Fund is not taxable for federal income tax purposes
and no gain or loss will be reported on the transaction. This is true whether the conversion occurs automatically pursuant to the terms
of the class or is initiated by the shareholder.
◾
At
the time you purchase your Fund shares, the Fund’s net asset value may reflect undistributed income. A subsequent distribution to
you of such amounts, although constituting a return of your investment, would be taxable. Buying shares in a Fund just before it declares
an income dividend is sometimes known as “buying a dividend.” In addition, a Fund’s net asset value may, at any time,
reflect net unrealized appreciation, which may result in future taxable distributions to you.
◾
By
law, if you do not provide a Fund with your proper taxpayer identification number and certain required certifications, you may be subject
to backup withholding on any distributions of income, capital gains, or proceeds from the sale of your shares. A Fund also must withhold
if the IRS instructs it to do so. When withholding is required, the amount will be 24% of any distributions or proceeds paid.
◾
A
3.8% Medicare tax is imposed on certain net investment income (including ordinary dividends received from a Fund and net gains from redemptions
or other taxable dispositions of Fund shares) of U.S. individuals, estates and trusts to the extent that such person’s “modified
adjusted gross income” (in the case of an individual) or “adjusted gross income” (in the case of an estate or trust)
exceeds a threshold amount. This Medicare tax, if applicable, is reported by you on, and paid with, your federal income tax return.
◾
Fund
distributions and gains from sale or exchange of your Fund shares generally are subject to state and local income taxes.
◾
Foreign
investors should be aware that U.S. withholding, special certification requirements to avoid U.S. backup withholding and claim any treaty
benefits, and estate taxes may apply to an investment in a Fund.
◾
Under
the Foreign Account Tax Compliance Act (FATCA), a Fund will be required to withhold a 30% tax on income dividends made by the Fund to
certain foreign entities, referred to as foreign financial institutions or non-financial foreign entities, that fail to comply (or be
deemed compliant) with extensive reporting and withholding requirements designed to inform the U.S. Department of the Treasury of U.S.-owned
foreign investment accounts. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide otherwise (which
is not expected). A Fund may disclose the information that it receives from its shareholders to the IRS, non-U.S. taxing authorities or
other parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that is a shareholder
of a Fund fails to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.
◾
Taxes,
penalties, and interest associated with an audit of a partnership are generally required to be assessed and collected at the partnership
level. Therefore, an adverse federal income tax audit of an MLP taxed as a partnership that the Fund invests in could result in the Fund
being required to pay federal income tax. The Fund may have little input in any audit asserted against an MLP and may be contractually
or legally obligated to make payments in regard to deficiencies asserted without the ability to put forward an independent defense. Accordingly,
even if an MLP in which the Fund invests were to remain classified as a partnership, it could be required to pay additional taxes, interest
and penalties as a result of an audit adjustment, and the Fund, as a direct or indirect partner of such MLP, could be required to bear
the economic burden of those taxes, interest and penalties, which would reduce the value of Fund shares.
◾
Under
the Tax Cuts and Jobs Act certain “qualified publicly traded partnership income” (e.g., certain income from certain of the
MLPs in which the Fund invests) is treated as eligible for a 20% deduction by noncorporate taxpayers. The Tax Cuts and Jobs Act does not
contain a provision permitting an entity, such as the Fund, to benefit from this
deduction
(since the Fund is taxed as a “C” corporation) or pass the special character of this income through to its shareholders. Qualified
publicly traded partnership income allocated to a noncorporate investor investing directly in an MLP might, however, be eligible for the
deduction.
The
above discussion concerning the taxability of Fund dividends and distributions
and of redemptions and exchanges of Fund shares is inapplicable to investors holding shares through a tax-advantaged arrangement, such
as Retirement and Benefit Plans or 529 college savings plans. Such investors should refer to the applicable account documents/program
description for that arrangement for more information regarding the tax consequences of holding and redeeming Fund shares.
This
discussion of “Taxes” is for general information only and not
tax advice. All investors should consult their own tax advisers as to the federal, state, local and foreign tax provisions applicable
to them.
Federal
Income Taxes (applicable to Invesco Master Loan Fund only)
United
States Taxes
The
Fund is classified as a partnership and will not be a regulated investment company for US federal income tax purposes. As a partnership,
the Fund is not a taxable entity for federal income tax purposes and, subject to the application of the partnership audit rules described
below, incurs no federal income tax liability. Each Investor is required to take into account its proportionate share of items of income,
gain, loss and deduction of the partnership in computing its federal income tax liability regardless of whether or not cash or property
distributions are then made by the Fund. Following the close of the Fund’s taxable year end, Investors will receive a tax statement
entitled Schedule K-1 Partner’s Share of Income, Deductions, Credits, etc., which reports the tax status of their distributive share
of the Fund’s items for the previous year.
Taxation
of Distributions, Sales and Exchanges
In
general, distributions of money by the Fund to an Investor will represent a non-taxable return of capital up to the amount of an Investor’s
adjusted tax basis in its shares. An Investor will recognize gain to the extent that any money distributed by the Fund exceeds the Investor’s
adjusted tax basis in its shares. In the case of a non-taxable return of capital by the Fund to an Investor, other than in liquidation
of the Investor’s interest in the Fund, the tax basis of his shares will be reduced (but not below zero) and will result in an increase
in the amount of gain (or decrease in the amount of loss) that will be recognized by the Investor on the later sale of its shares. A distribution
in partial or complete redemption of your shares in the Fund is taxable as a sale or exchange only to the extent the amount of money received
exceeds the tax basis of your entire interest in the Fund. Any loss may be recognized only if you redeem your entire interest in the Fund
for money.
When
you sell shares of the Fund, you may have a capital gain or loss.
Derivatives
The
use of derivatives by the Fund may cause the Fund to realize higher amounts of ordinary income or short-term capital gain, allocations
of which are taxable to individual Investors at ordinary income tax rates rather than at the more favorable tax rates for long-term capital
gain. Changes in government regulation of derivative instruments could affect the character, timing and amount of the Fund’s taxable
income or gains, and may limit the Fund from using certain types of derivative instruments as part of its investment strategy.
Risk
of Audit of the Fund
Under
the partnership audit rules, which are generally applicable to tax years beginning after December 31, 2017, the Internal Revenue Service
(“IRS”) may collect any taxes resulting from audit adjustments to the Fund’s income tax returns (including any applicable
penalties and interest) directly from the Fund. In that case, current Investors would bear some or all of the
A-25 The
Invesco Funds
tax liability
resulting from such audit adjustment, even if they did not own interests in the Fund during the tax year under audit. The Fund may have
the ability to shift any such tax liability to the Investors in accordance with their interests in the Fund during the year under audit,
but there can be no assurance that the Fund will be able to do so under all circumstances. For taxable years not subject to the new audit
rules, items of Fund income, gain, loss, deduction and credit will be determined at the Fund level in a unified audit. NO REPRESENTATION
OR WARRANTY OF ANY KIND IS MADE WITH RESPECT TO THE TAXATION, DEDUCTIBILITY OR CAPITALIZATION OF ANY ITEM BY THE FUND OR INVESTOR. In
addition, the “partnership representative” (tax matters partner, for taxable years before the partnership audit rules become
effective) will have the sole authority to act on the Fund’s behalf for purposes of, among other things, federal income tax audits
and judicial review of administrative adjustments by the IRS, and any such actions will be binding on the Fund and all of the Investors.
Unrelated
Business Taxable Income
An
allocable share of a tax-exempt Investor’s income will be “unrelated business taxable income” (“UBTI”) to
the extent that the Fund borrows money to acquire property or invests in assets that produce UBTI.
Medicare
Tax
An
additional 3.8% Medicare tax is imposed on certain net investment income of US individuals, estates and trusts to the extent that such
person’s “modified adjusted gross income” (in the case of an individual) or “adjusted gross income” (in
the case of an estate or trust) exceeds a threshold amount. “Net investment income,” for these purposes, means investment
income (including (i) net gains from the taxable disposition of shares of a Fund to the extent the net gain would be taken into account
by the Investor if the Fund sold all of its property for fair market value immediately before the disposition of the shares of the Fund,
and (ii) an allocable share of a Fund’s interest, dividends and net gains) reduced by the deductions properly allocable to such
income. This Medicare tax, if applicable, is reported by Investors on, and paid with, the Investor’s federal income tax return.
State,
Local and Non-US Tax Matters
An
Investor’s distributive share of the Fund’s income, and gains from the sale or exchange of an Investor’s Fund shares,
generally are subject to state and local taxes in the jurisdiction in which the Investor resides or is otherwise subject to tax.
Prospective
investors should consider their individual state and local tax consequences
of an investment in the Fund.
Tax
Considerations for Non-US Investors
If,
as anticipated, the Fund is not deemed to be engaged in a US trade or business, the Fund generally will be required to withhold tax on
the distributive share of certain items of gross income from US sources allocated to non-US Investors at a 30% (or lower treaty) rate.
Certain categories of income, including portfolio interest, are not subject to US withholding tax. Capital gains (other than gain realized
on disposition of US real property interests) are not subject to US withholding tax unless the non-US Investor is a nonresident alien
individual present in the United States for a period or periods aggregating 183 days or more during the taxable year. If, on the other
hand, the Fund derives income which is effectively connected with a US trade or business carried on by the Fund, this 30% tax will not
apply to such effectively connected income of the Fund, and the Fund generally will be required to withhold tax from the amount of effectively
connected income allocable to non-US Investors at the highest rate of tax applicable to US residents, and non-US Investors generally would
be required to file US income tax returns and be subject to US income tax on a net basis. Gain or loss on a sale of shares will be treated
as effectively connected with a U.S. trade or business to the extent that a foreign corporation or foreign individual that owns the shares
(whether directly or indirectly through other partnerships) would have had effectively connected gain or loss had the partnership sold
its underlying assets and applicable US
withholding
tax will apply. Non-US Investors may be subject to US estate tax and are subject to special US tax certification requirements.
Other
Reporting and Withholding Requirements
Under
the Foreign Account Tax Compliance Act (“FATCA”), the Fund will be required to withhold at a 30% rate on certain US source
payments (such as interest and dividends) to certain Investors if the Investor fails to provide the Fund with the information which identifies
its direct and indirect US ownership. After December 31, 2018, FATCA withholding also would have applied to certain capital gain distributions,
return of capital distributions and the proceeds arising from the sale of Fund shares; however, based on proposed regulations issued by
the IRS, which can be relied upon currently, such withholding is no longer required unless final regulations provide otherwise (which
is not expected). A Fund may disclose the information that it receives from an Investor to the IRS, non-US taxing authorities or other
parties as necessary to comply with FATCA or similar laws. Withholding also may be required if a foreign entity that is an Investor fails
to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.
For
a more complete discussion of the federal income tax consequences
of investing in the Fund, see the Statement of Additional Information.
This
discussion of “Federal Income Taxes” is not intended or written
to be used as tax advice. Because everyone’s tax situation is unique, Investors should consult their tax professional about federal,
state, local and foreign tax consequences before making an investment in the Fund.
Payments
to Financial Intermediaries – All Share Classes except Class R6 shares
The
financial adviser or intermediary through which you purchase your shares may receive all or a portion of the sales charges and distribution
fees discussed above. In addition to those payments, Invesco Distributors and other Invesco Affiliates, may make additional cash payments
to financial intermediaries in connection with the promotion and sale of shares of the Funds. These additional cash payments may include
cash payments and other payments for certain marketing and support services. Invesco Affiliates make these payments from their own resources,
from Invesco Distributors’ retention of initial sales charges and from payments to Invesco Distributors made by the Funds under
their 12b-1 plans. In the context of this prospectus, “financial intermediaries” include any broker, dealer, bank (including
bank trust departments), registered investment adviser, financial planner, retirement plan administrator, insurance company and any other
financial intermediary having a selling, administration or similar agreement with Invesco Affiliates.
The
benefits Invesco Affiliates receive when they make these payments include,
among other things, placing the Funds on the financial intermediary’s fund sales system, and access (in some cases on a preferential
basis over other competitors) to individual members of the financial intermediary’s sales force or to the financial intermediary’s
management. These payments are sometimes referred to as “shelf space” payments because the payments compensate the financial
intermediary for including the Funds in its fund sales system (on its “sales shelf”). Invesco Affiliates compensate financial
intermediaries differently depending typically on the level and/or type of considerations provided by the financial intermediary. The
payments Invesco Affiliates make may be calculated based on sales of shares of the Funds (Sales-Based Payments), in which case the total
amount of such payments shall not exceed 0.25% (0.10% for Class R5 shares) of the public offering price of all shares sold by the financial
intermediary during the particular period. Payments may also be calculated based on the average daily net assets of the applicable Funds
attributable to that particular financial intermediary (Asset-Based Payments), in which case the total amount of such cash payments shall
not exceed 0.25% per annum of those assets during a defined period. Sales-Based Payments primarily create incentives to make new sales
of shares of the Funds and Asset-Based Payments primarily create incentives to retain previously sold shares of the Funds in investor
accounts. Invesco Affiliates
A-26 The
Invesco Funds
may pay a financial
intermediary either or both Sales-Based Payments and Asset-Based Payments.
Invesco
Affiliates are motivated to make these payments as they promote
the sale of Fund shares and the retention of those investments by clients of the financial intermediaries. To the extent financial intermediaries
sell more shares of the Funds or retain shares of the Funds in their clients’ accounts, Invesco Affiliates benefit from the incremental
management and other fees paid to Invesco Affiliates by the Funds with respect to those assets.
The
Funds’ transfer agent may make payments to certain financial intermediaries
for certain administrative services, including record keeping and sub-accounting of shareholder accounts pursuant to a sub-transfer agency,
omnibus account service or sub-accounting agreement. All fees payable by Invesco Affiliates under this category of services are charged
back to the Funds, subject to certain limitations approved by the Board.
You
can find further details in the Fund’s SAI about these payments and the
services provided by financial intermediaries. In certain cases these payments could be significant to the financial intermediaries. Your
financial adviser may charge you additional fees or commissions other than those disclosed in this prospectus. You can ask your financial
adviser about any payments it receives from Invesco Affiliates or the Funds, as well as about fees and/or commissions it charges.
Important
Notice Regarding Delivery of Security Holder Documents
To
reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address
(Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not
want the mailing of these documents to be combined with those for other members of your household, please contact the Funds’ transfer
agent at 800-959-4246 or contact your financial institution. The Funds’ transfer agent will begin sending you individual copies
for each account within thirty days after receiving your request.
A-27 The
Invesco Funds
Obtaining Additional Information
More information
may be obtained free of charge upon request. The SAI, a current version of which is on file with the SEC, contains more details about
the Fund and is incorporated by reference into this prospectus (is legally a part of this prospectus). Annual and semi-annual reports
to shareholders contain additional information about the Fund’s investments. The Fund’s annual report also discusses the market
conditions and investment strategies that significantly affected the Fund’s performance during its last fiscal year. The Fund also
files its complete schedule of portfolio holdings with the SEC for the 1st and 3rd quarters of each fiscal year as an exhibit to its reports
on Form N-PORT.
If
you have questions about an Invesco Fund or your account, or you wish to obtain a free copy of the Fund’s current SAI, annual or
semi-annual reports or Form N-PORT, please contact us.
|
By
Mail: |
Invesco
Investment Services, Inc.
P.O.
Box 219078
Kansas
City, MO 64121-9078 |
|
By
Telephone: |
(800)
959-4246 |
|
On
the Internet: |
You
can send us a request by e-mail or
download
prospectuses, SAIs, annual or
semi-annual
reports via our website:
www.invesco.com/us
|
Reports
and other information about the Fund are available on the EDGAR Database on the SEC's Internet site at http://www.sec.gov, and copies
of this information may be obtained, after paying a duplicating fee, by electronic request at the following e-mail address: publicinfo@sec.gov.
|
Invesco
Short Duration High Yield Municipal Fund
SEC 1940 Act file
number: 811-09913 |
|
invesco.com/us
|
SDHYM-PRO-1
|
