Form N-CSR AIM FUNDS GROUP (INVESCO For: Dec 31


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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM N-CSR

 

 

CERTIFIED
SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-01540

 

 

AIM Funds Group (Invesco Funds Group)

(Exact name of registrant as specified in charter)

 

 

11 Greenway
Plaza, Suite 1000 Houston, Texas 77046

(Address of principal executive offices) (Zip code)

 

 

Sheri Morris 11 Greenway Plaza, Suite 1000 Houston, Texas 77046

(Name and address of agent for service)

 

 

Registrant’s telephone number, including area code: (713) 626-1919

Date of fiscal year end: 12/31

Date of reporting period: 12/31/20

 

 

 


ITEM 1.

Report to Stockholders.


 

 

  Annual Report to Shareholders    December 31, 2020
 

 

  Invesco European Small Company Fund
 

 

Nasdaq:

  
  A: ESMAX C: ESMCX Y: ESMYX
R6: ESMSX

 

LOGO


 

Management’s Discussion of Fund Performance

 

 

Performance summary

For the year ended December 31, 2020, Class A shares of Invesco European Small Company Fund (the Fund), at net asset
value (NAV), underperformed the MSCI Europe Small Cap Index, the Fund’s style-specific benchmark.

    Your Fund’s long-term performance
appears later in this report.

 

Fund vs. Indexes

Total returns, 12/31/19 to 12/31/20, at net asset value (NAV). Performance shown does not include applicable contingent deferred
sales charges (CDSC) or front-end sales charges, which would have reduced performance.

 

Class A Shares

     9.60

Class C Shares

     8.80  

Class Y Shares

     9.85  

Class R6 Shares

     9.99  

MSCI Europe Indexq (Broad Market Index)

     5.38  

MSCI Europe Small Cap Indexq (Style-Specific Index)

     14.00  

Lipper European Funds Index (Peer Group Index)

     17.66  

 

Source(s): qRIMES Technologies Corp.; Lipper Inc.

 

  

 

 

Market
conditions and your Fund

Global equity markets started the year buoyed by positive economic data and the signing of the phase one US-China trade deal. However,
initial optimism was dampened by the outbreak of the new coronavirus (COVID-19) that swiftly spread from China to other global regions. Global equity markets fell sharply as the human and economic cost of the COVID-19 pandemic mounted. The US bull
market came to an abrupt end, while global equity markets also fell sharply. As fear of a worldwide recession increased, central banks around the world took aggressive action to support both local markets and the global economy.

    Despite the continuing global spread of COVID-19, many countries achieved some success in controlling the spread and were able to slowly re-open
their economies. Global equity markets benefited from government policy responses to the crisis, which were swift and encouraging. Many economies received fiscal stimulus and very significant monetary stimulus. The massive monetary policy responses
created an environment in which investors embraced risk, and stocks rose globally after a deep rout in the first quarter.

    Despite a
correction in September, global equity stocks finished the third quarter in positive territory after posting strong gains in July and August. Building on progress made in the latter part of the second quarter, many countries were able to continue
reducing pandemic-related stringency protocols. As a result, the “green shoots” we saw at the end of the second quarter grew and flourished into the third quarter, as many countries experienced a strong economic rebound.

    At the end of the year, global equity markets again posted gains as good news about COVID-19 vaccines outweighed concerns about sharply rising
infection rates and tightening social restrictions. In most global

regions, equity market leadership shifted as value stocks outperformed growth stocks. Sectors that had been severely
affected by the pandemic, including energy and financials, were among the fourth quarter’s top performers. Emerging market equities, which posted robust gains amplified by US dollar weakness, outperformed developed market equities for the year.

    We remain focused on our bottom-up investment approach of identifying attractive companies that fit our earnings, quality and valuation (EQV)
process regardless of the macroeconomic environment

    During the year, stock selection in the financials and energy sectors were among the
largest contributors to the Fund’s performance relative to its style-specific benchmark. We saw particular strength in the portfolio’s Italy-based brokerage company Gruppo MutuiOnline within
the financials sector. The company benefited from strong interim results and positive outlook across its brokerage and business process outsourcing divisions for 2020 and the first half of 2021. Conversely, the Fund’s holdings in the health
care, industrials and information technology sectors underperformed those of the style-specific benchmark and detracted from the Fund’s relative performance for the year.

    On a geographic basis, the Fund’s holdings in Italy and Ireland outperformed those of the style-specific benchmark and were key contributors
to relative return. In addition, the Fund’s exposure to Romania, a country not represented in the style-specific benchmark, added to relative performance after posting positive absolute results. In contrast, an underweight allocation to Sweden
and a lack of exposure to the Netherlands were key detractors from relative return during the year. Stock selection in Germany also hampered relative results.

    The Fund’s cash position in a rising market environment was a detractor from performance versus the style-specific benchmark. It

 

is important to note that similar to the Fund’s sector and regional allocations, cash is a residual of our bottom-up
investment process and not the result of any top-down tactical asset allocation or risk-management allocation decision.

    From an individual
securities perspective, UK- based Gamesys Group was among the most significant contributors to Fund performance during the year. The company experienced robust interim earnings during the year as the global lock-down accelerated the shift
towards online gaming. Strong cash flow and an improving balance sheet allowed company management to issue its first dividend to shareholders.

    We sold Norway-based industrials company Wilhelm Wilhelmsen, a key detractor from Fund performance during the year, in order to raise cash
and make room for better opportunities. The structural headwinds to the company’s car-shipping business, which principally relies on cars built in Asia and sold into Western markets, were intensified given US-Chinese trade issues. The
car-shipping subsidiary also carries more debt than we appreciate, particularly during a COVID-induced slowdown of unknown duration. Additionally, Romania-based Banca Transilvania was a notable detractor during the year. We exited our
position in Banca Transilvania. A low interest rate environment and a high valuation relative to other European banks prompted us to exit our position in order to raise cash due to COVID-19 related economic shocks.

    Over the year, we continued to look for opportunities to improve the growth potential and quality of the Fund’s portfolio by adding companies
based on our EQV outlook for each company. We initiated several new positions including Morocco-based Vivo Energy and Sweden-based Proact IT Group. We also sold several Fund holdings with EQV characteristics that were no longer as
compelling as when we first initiated positions, including Ireland-based CPL Resources and Romania-based Romgaz.

    As always, we
remain focused on a bottom-up investment approach of identifying attractive companies that fit our EQV-focused investment process. We continue to look for high-quality companies that exhibit the following characteristics: strong organic growth; high
returns on capital; pricing power; strong balance sheets; cash generation; and reasonable valuations. In addition, we continue to favor companies that are able to consistently generate cash during weak economic environments. Our balanced EQV-focused
approach aligns with our goal of delivering attractive risk-adjusted returns over the long term.

    We thank you for your continued investment
in Invesco European Small Company Fund.

 

 

2                                   Invesco European
Small Company Fund

 

Portfolio
manager(s)
:

Borge Endresen

Jason Holzer (Lead)

The views and opinions expressed in management’s discussion of Fund performance are those of Invesco Advisers, Inc. These views and opinions are subject to change
at any time based on factors such as market and economic conditions. These views and opinions may not be relied upon as investment advice or recommendations, or as an offer for a particular security. The information is not a complete analysis of
every aspect of any market, country, industry, security or the Fund. Statements of fact are from sources considered reliable, but Invesco Advisers, Inc. makes no representation or warranty as to their completeness or accuracy. Although historical
performance is no guarantee of future results, these insights may help you understand our investment management philosophy.

See important Fund and, if
applicable, index disclosures later in this report.

 

 

3                                   Invesco European
Small Company Fund

 

    

 

 

Your Fund’s Long-Term Performance

Results of a $10,000 Investment
– Oldest Share Class(es)

Fund and index data from 12/31/10

 

LOGO

 

1

Source: RIMES Technologies Corp.

 

Past performance cannot guarantee future results.

    The data shown in the chart include reinvested distributions, applicable sales charges and Fund expenses including management

fees. Index results include reinvested dividends, but they do not reflect sales charges. Performance of the peer group, if
applicable, reflects fund expenses and management fees;

performance of a market index does not. Performance shown in the chart does not reflect deduction of taxes a shareholder
would pay on Fund distributions or sale of Fund shares.

 

 

4                                   Invesco European
Small Company Fund

 

    

 

Average Annual Total
Returns

 

As of 12/31/20, including maximum applicable sales charges

 

Class A Shares

        

Inception (8/31/00)

     10.02

10 Years

     7.78  

5 Years

     7.11  

1 Year

     3.57  

Class C Shares

        

Inception (8/31/00)

     10.03

10 Years

     7.74  

5 Years

     7.53  

1 Year

     7.80  

Class Y Shares

        

Inception (10/3/08)

     9.82

10 Years

     8.66  

5 Years

     8.59  

1 Year

     9.85  

Class R6 Shares

        

10 Years

     8.53

5 Years

     8.60  

1 Year

     9.99  

Class R6 shares incepted on April 4, 2017. Performance shown prior to that date is that of Class A shares at net asset
value and includes the 12b-1 fees applicable to Class A shares.

    The performance data quoted represent past performance and
cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/ performance for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the
effect of the maximum sales charge unless otherwise stated. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you
may have a gain or loss when you sell shares.

    Class A share performance reflects the maximum 5.50% sales charge, and Class C
share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class C shares is 1% for the first year after purchase. Class Y and Class R6 shares do not have a front-end sales charge or a
CDSC; therefore, performance is at net asset value.

    The performance of the Fund’s share classes will differ primarily due to
different sales charge structures and class expenses.

    Fund performance reflects any applicable fee waivers and/or expense
reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.

 

 

5                                   Invesco European
Small Company Fund

 

Supplemental
Information

Invesco European Small Company Fund’s investment objective is long-term growth of capital.

Unless otherwise stated, information presented in this report is as of December 31, 2020, and is based on total net
assets.

Unless otherwise noted, all data provided by Invesco.

To access your Fund’s reports/prospectus, visit invesco.com/fundreports.

 

 

 

About indexes used in this report

The MSCI Europe Index is an unmanaged index considered representative of stocks of developed European countries.
The index is computed using the net return, which withholds applicable taxes for non-resident investors.

The MSCI Europe Small Cap Index is an unmanaged index considered representative of small-cap European stocks. The
index is computed using the net return, which withholds applicable taxes for non-resident investors.

The Lipper European Funds Index is an unmanaged index considered representative of European funds tracked by
Lipper.

The Fund is not managed to track the performance of any particular index, including the index(es) described here, and
consequently, the performance of the Fund may deviate significantly from the performance of the index(es).

A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends,
and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

 

 

 

 

 

This report must be accompanied or preceded by a currently effective Fund prospectus, which contains more complete information, including sales charges and expenses.
Investors should read it carefully before investing.
 

 

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE  

 

6                                   Invesco European
Small Company Fund

Fund Information

Portfolio
Composition

 

By sector    % of total net assets

Industrials

       28.48 %

Information Technology

       21.35

Consumer Discretionary

       18.65

Financials

       13.21

Consumer Staples

       4.41

Real Estate

       3.11

Health Care

       2.35

Energy

       1.82

Money Market Funds Plus Other Assets Less Liabilities

       6.62

Top 10 Equity Holdings*

 

           % of total net assets

  1.

  Hilan Ltd.        5.36 %

  2.

  Gerard Perrier Industrie S.A.        4.96

  3.

  Linedata Services        4.95

  4.

  Diploma PLC        4.59

  5.

  Kaufman & Broad S.A.        4.56

  6.

  Gamesys Group PLC        4.17

  7.

  TBC Bank Group PLC        3.75

  8.

  Infotel S.A.        3.67

  9.

  Fondul Proprietatea S.A.        3.24

10.

  Kardex Holding AG        3.13

The Fund’s holdings are subject to change, and there is no assurance that the Fund will continue to hold any particular security.

*

Excluding money market fund holdings, if any.

Data presented here are as of December 31, 2020.

 

 

7                           
        Invesco European Small Company Fund


Schedule of Investments

December 31, 2020

 

      Shares      Value  

Common Stocks & Other Equity Interests–93.38%

 

France–27.41%

     

Gerard Perrier Industrie S.A.

     140,371      $      11,832,070  

HEXAOM(a)

     132,990        6,483,765  

Infotel S.A.

     165,203        8,737,550  

Kaufman & Broad S.A.

     242,700        10,859,739  

Linedata
Services(b)

     341,159        11,794,869  

Manutan International

     52,230        4,638,492  

Neurones(c)

     232,283        6,639,745  

Total Gabon

     26,924        4,345,218  
                65,331,448  

Georgia–3.75%

     

TBC Bank Group
PLC(a)

     522,263        8,936,419  

Germany–3.62%

     

CENIT
AG(a)

     196,758        3,016,988  

MorphoSys
AG(a)

     49,120        5,608,945  
                8,625,933  

Greece–1.32%

     

Karelia Tobacco Co., Inc. S.A.

     9,265        3,148,330  

Ireland–3.09%

     

Origin Enterprises PLC(a)

     1,945,864        7,365,850  

Israel–6.68%

     

Hilan Ltd.

     269,109        12,778,920  

MIND C.T.I.
Ltd.(b)

     1,216,450        3,150,606  
                15,929,526  

Italy–3.90%

     

Gruppo MutuiOnline S.p.A.

     171,783        7,282,940  

Technogym
S.p.A.(a)(d)

     178,991        2,005,832  
                9,288,772  

Morocco–1.18%

     

Vivo Energy
PLC(d)

     2,425,904        2,804,930  

Poland–2.25%

     

LiveChat Software S.A.

     70,000        1,966,852  

Warsaw Stock Exchange

     278,420        3,405,264  
                5,372,116  

Portugal–0.65%

     

Conduril – Engenharia S.A.(a)

     46,308        1,550,078  

Romania–3.24%

     

Fondul Proprietatea S.A.

     21,229,730        7,717,122  

Russia–1.03%

     

Globaltrans Investment PLC, GDR(d)

     411,000        2,457,780  

Singapore–0.56%

     

XP Power Ltd.

     20,835        1,340,343  

Investment Abbreviations:

GDR – Global Depositary Receipt

 

     
      Shares      Value  

Sweden–1.17%

     

Proact IT Group AB

     84,000      $ 2,787,686  

Switzerland–3.85%

     

Carlo Gavazzi Holding
AG(a)

     8,325        1,706,662  

Kardex Holding AG

     34,118        7,455,831  
                9,162,493  

United Kingdom–29.68%

     

City of London Investment Group PLC

     900,000        5,389,932  

Clarkson PLC

     188,808        6,974,746  

DCC PLC

     58,026        4,124,498  

Diploma PLC

     364,327        10,932,077  

Eurocell
PLC(a)

     1,634,000        4,826,655  

Gamesys Group PLC

     634,982        9,928,458  

IG Group Holdings PLC

     376,684        4,442,264  

Mortgage Advice Bureau Holdings Ltd.

     172,000        2,036,606  

Renew Holdings PLC

     860,626        6,568,757  

SafeStyle UK
PLC(a)(b)

     4,465,000        2,408,536  

Savills
PLC(a)

     570,369        7,406,144  

Ultra Electronics Holdings PLC

     200,583        5,686,784  
                70,725,457  

Total Common Stocks & Other Equity Interests
(Cost $155,731,302)

 

     222,544,283  

Money Market Funds–6.76%

     

Invesco Government & Agency Portfolio, Institutional Class,
0.03%(b)(e)

     5,391,102        5,391,102  

Invesco Liquid Assets Portfolio, Institutional Class, 0.08%(b)(e)

     4,550,244        4,551,609  

Invesco Treasury Portfolio, Institutional Class, 0.01%(b)(e)

     6,161,260        6,161,260  

Total Money Market Funds
(Cost
$16,103,555)

 

     16,103,971  

TOTAL INVESTMENTS IN SECURITIES (excluding Investments
purchased with cash collateral from securities on loan)-100.14%
(Cost $171,834,857)

 

     238,648,254  

Investments Purchased with Cash Collateral from Securities on Loan

 

Money Market Funds–0.12%

     

Invesco Private Government Fund,
0.02%(b)(e)(f)

     116,223        116,223  

Invesco Private Prime Fund,
0.12%(b)(e)(f)

     172,145        172,197  

Total Investments Purchased with Cash Collateral from
Securities on Loan
(Cost $288,420)

 

     288,420  

TOTAL INVESTMENTS IN SECURITIES–100.26%
(Cost
$172,123,277)

              238,936,674  

OTHER ASSETS LESS LIABILITIES–(0.26)%

              (619,882

NET ASSETS–100.00%

            $ 238,316,792  

 

 

 

See accompanying Notes to Financial Statements
which are an integral part of the financial statements.

8                           
        Invesco European Small Company Fund


Notes to Schedule of Investments:

 

(a)

Non-income producing security.

(b)

Affiliated issuer. The issuer is affiliated by having an investment adviser that is under common control of Invesco Ltd.
and/or the Investment Company Act of 1940, as amended (the “1940 Act”), defines “affiliated person” to include an issuer of which a fund holds 5% or more of the outstanding voting securities. The Fund has not owned enough of the
outstanding voting securities of the issuer to have control (as defined in the 1940 Act) of that issuer. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended
December 31, 2020.

 

      Value
December 31, 2019
    

Purchases

at Cost

    

Proceeds

from Sales

     Change in
Unrealized
Appreciation
    

Realized

Gain

(Loss)

     Value
December 31, 2020
     Dividend Income  

Investments in Affiliated Money Market

Funds:

                    

Invesco Government & Agency Portfolio, Institutional
Class

     $5,313,794        $28,072,502      $ (27,995,194)      $      $        $5,391,102      $ 23,659  

Invesco Liquid Assets Portfolio, Institutional Class

     3,876,856        20,674,286        (19,996,567)        37        (3,003)        4,551,609        24,323  

Invesco Treasury Portfolio, Institutional Class

     6,072,908        32,082,859        (31,994,507)                      6,161,260        26,125  
Investments Purchased with Cash Collateral from Securities on Loan:                     

Invesco Private Government Fund

            221,124        (104,901)                      116,223        1

Invesco Private Prime Fund

            315,327        (143,130)                      172,197        13

Investments in Other Affiliates:

                    

Linedata Services

     12,298,813               (1,831,707)        1,617,055        (289,292)        11,794,869        338,883  

MIND C.T.I. Ltd.

     2,898,000        27,350               225,256               3,150,606        233,558  

SafeStyle UK PLC**

     4,398,743               (212,407)        930,341        (2,708,141)        2,408,536         

Total

     $34,859,114        $81,393,448      $ (82,278,413)      $ 2,772,689      $ (3,000,436)        $33,746,402      $ 646,562  

 

*

Represents the income earned on the investment of cash collateral, which is included in securities lending income on the
Statement of Operations. Does not include rebates and fees paid to lending agent or premiums received from borrowers, if any.

**

At December 31, 2020, this security was no longer an affiliate of the Fund.

 

(c)

All or a portion of this security was out on loan at December 31, 2020.

(d)

Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the
“1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at December 31, 2020 was $7,268,542, which
represented 3.05% of the Fund’s Net Assets.

(e)

The rate shown is the 7-day SEC standardized yield as of December 31, 2020.

(f)

The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending
transactions upon the borrower’s return of the securities loaned. See Note 1I.

See accompanying Notes to Financial Statements which are an
integral part of the financial statements.

 

9                                   Invesco European
Small Company Fund

Statement of Assets and Liabilities

December 31, 2020

 

Assets:

 

Investments in securities, at value
(Cost $
143,964,038)*

   $ 207,598,808  

Investments in affiliates, at value
(Cost $ 28,159,239)

     31,337,866  

Foreign currencies, at value
(Cost $ 109,288)

     109,937  

Receivable for:

  

Fund shares sold

     48,659  

Dividends

     489,442  

Investment for trustee deferred compensation and retirement
plans

     99,215  

Other assets

     30,825  

Total assets

     239,714,752  

Liabilities:

 

Payable for:

  

Fund shares reacquired

     314,639  

Amount due custodian

     196,532  

Collateral upon return of securities loaned

     288,420  

Accrued fees to affiliates

     115,421  

Accrued trustees’ and officers’ fees and benefits

     332  

Accrued other operating expenses

     374,400  

Trustee deferred compensation and retirement plans

     108,216  

Total liabilities

     1,397,960  

Net assets applicable to shares outstanding

   $ 238,316,792  

Net assets consist of:

 

Shares of beneficial interest

   $ 193,073,841  

Distributable earnings

     45,242,951  
     $ 238,316,792  

 

Net Assets:

 

Class A

   $ 99,171,501  

Class C

   $ 6,370,276  

Class Y

   $ 121,746,293  

Class R6

   $ 11,028,722  

Shares outstanding, no par value, with an unlimited number of shares authorized:

 

Class A

     6,532,863  

Class C

     454,808  

Class Y

     7,971,649  

Class R6

     721,610  

Class A:

  

Net asset value per share

   $ 15.18  

Maximum offering price per share (Net asset value of $15.18
÷ 94.50%)

   $ 16.06  

Class C:

  

Net asset value and offering price per share

   $ 14.01  

Class Y:

  

Net asset value and offering price per share

   $ 15.27  

Class R6:

  

Net asset value and offering price per share

   $ 15.28  

 

*

At December 31, 2020, securities with an aggregate value of $222,285 were on loan to brokers.

 

 

See accompanying Notes to Financial Statements
which are an integral part of the financial statements.

10                           
        Invesco European Small Company Fund


Statement of Operations

For
the year ended December 31, 2020

 

Investment income:

 

Dividends (net of foreign withholding taxes of $464,094)

  $ 5,923,675  

Dividends from affiliates (includes securities lending income of
$318)

    646,880  

Total investment income

    6,570,555  

Expenses:

 

Advisory fees

    2,342,825  

Administrative services fees

    36,373  

Custodian fees

    259,012  

Distribution fees:

       

Class A

    237,592  

Class C

    83,361  

Transfer agent fees – A, C and Y

    332,606  

Transfer agent fees – R6

    5,619  

Trustees’ and officers’ fees and benefits

    23,607  

Registration and filing fees

    50,619  

Reports to shareholders

    40,415  

Professional services fees

    102,644  

Other

    20,447  

Total expenses

    3,535,120  

Less: Fees waived and/or expense offset arrangement(s)

    (16,091

Net expenses

    3,519,029  

Net investment income

    3,051,526  

Realized and unrealized gain (loss) from:

 

Net realized gain (loss) from:

       

Unaffiliated investment securities

    (15,367,566

Affiliated investment securities

    (3,000,436

Foreign currencies

    20,762  
      (18,347,240

Change in net unrealized appreciation of:

 

Unaffiliated investment securities

    8,722,163  

Affiliated investment securities

    2,772,689  

Foreign currencies

    25,190  
      11,520,042  

Net realized and unrealized gain (loss)

    (6,827,198

Net increase (decrease) in net assets resulting from
operations

  $ (3,775,672

 

See accompanying Notes to Financial Statements
which are an integral part of the financial statements.

11                           
        Invesco European Small Company Fund


Statement of Changes in Net Assets

For the years ended December 31, 2020 and 2019

 

     2020     2019  

 

 

Operations:

    

Net investment income

   $ 3,051,526     $ 12,416,668  

 

 

Net realized gain (loss)

     (18,347,240     11,867,984  

 

 

Change in net unrealized appreciation

     11,520,042       44,460,481  

 

 

Net increase (decrease) in net assets resulting from operations

     (3,775,672     68,745,133  

 

 

Distributions to shareholders from distributable earnings:

    

Class A

     (2,646,198     (8,093,967

 

 

Class C

     (221,682     (761,110

 

 

Class Y

     (3,270,028     (16,377,743

 

 

Class R6

     (301,825     (1,046,081

 

 

Total distributions from distributable earnings

     (6,439,733     (26,278,901

 

 

Share transactions–net:

    

Class A

     (24,681,729     (16,028,351

 

 

Class C

     (5,568,725     (11,981,359

 

 

Class Y

     (96,458,101     (209,258,503

 

 

Class R6

     (4,174,279     (4,722,093

 

 

Net increase (decrease) in net assets resulting from share transactions

     (130,882,834     (241,990,306

 

 

Net increase (decrease) in net assets

     (141,098,239     (199,524,074

 

 

Net assets:

    

Beginning of year

     379,415,031       578,939,105  

 

 

End of year

   $ 238,316,792     $ 379,415,031  

 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

12                           
        Invesco European Small Company Fund


Financial Highlights

    

 

The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.

 

     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 12/31/20

    $ 14.24     $ 0.14 (d)      $ 1.21     $ 1.35     $ (0.17 )     $ (0.24 )     $ (0.41 )     $ 15.18       9.60 %     $ 99,172       1.53 %(e)       1.54 %(e)       1.09 %(d)(e)       6 %

Year ended 12/31/19

      13.23       0.34 (d)        1.67       2.01       (0.63 )       (0.37 )       (1.00 )       14.24       15.23       121,763       1.42       1.43       2.40 (d)        1

Year ended 12/31/18

      16.58       0.28       (2.80 )       (2.52 )       (0.29 )       (0.54 )       (0.83 )       13.23       (15.21 )       127,904       1.35       1.38       1.73       11

Year ended 12/31/17

      13.35       0.29 (d)        3.47       3.76       (0.27 )       (0.26 )       (0.53 )       16.58       28.29       186,233       1.40       1.42       1.85 (d)        10

Year ended 12/31/16

      12.55       0.23       0.85       1.08       (0.28 )             (0.28 )       13.35       8.61       184,024       1.40       1.42       1.80       11

Class C

                                                       

Year ended 12/31/20

      13.27       0.04 (d)        1.11       1.15       (0.17 )       (0.24 )       (0.41 )       14.01       8.80       6,370       2.28 (e)        2.29 (e)        0.34 (d)(e)        6

Year ended 12/31/19

      12.36       0.22 (d)        1.56       1.78       (0.50 )       (0.37 )       (0.87 )       13.27       14.44       12,200       2.17       2.18       1.65 (d)        1

Year ended 12/31/18

      15.52       0.15       (2.61 )       (2.46 )       (0.16 )       (0.54 )       (0.70 )       12.36       (15.89 )       22,684       2.10       2.13       0.98       11

Year ended 12/31/17

      12.53       0.16 (d)        3.25       3.41       (0.16 )       (0.26 )       (0.42 )       15.52       27.27       34,366       2.15       2.17       1.10 (d)        10

Year ended 12/31/16

      11.78       0.13       0.79       0.92       (0.17 )             (0.17 )       12.53       7.87       30,709       2.15       2.17       1.05       11

Class Y

                                                       

Year ended 12/31/20

      14.29       0.18 (d)        1.21       1.39       (0.17 )       (0.24 )       (0.41 )       15.27       9.85       121,746       1.28 (e)        1.29 (e)        1.34 (d)(e)        6

Year ended 12/31/19

      13.27       0.38 (d)        1.68       2.06       (0.67 )       (0.37 )       (1.04 )       14.29       15.56       230,577       1.17       1.18       2.65 (d)        1

Year ended 12/31/18

      16.64       0.32       (2.81 )       (2.49 )       (0.34 )       (0.54 )       (0.88 )       13.27       (15.01 )       410,107       1.10       1.13       1.98       11

Year ended 12/31/17

      13.41       0.34 (d)        3.46       3.80       (0.31 )       (0.26 )       (0.57 )       16.64       28.48       608,335       1.15       1.17       2.10 (d)        10

Year ended 12/31/16

      12.60       0.27       0.85       1.12       (0.31 )             (0.31 )       13.41       8.95       265,250       1.15       1.17       2.05       11

Class R6

                                                       

Year ended 12/31/20

      14.28       0.19 (d)        1.22       1.41       (0.17 )       (0.24 )       (0.41 )       15.28       9.99       11,029       1.19 (e)        1.20 (e)        1.43 (d)(e)        6

Year ended 12/31/19

      13.27       0.39 (d)        1.67       2.06       (0.68 )       (0.37 )       (1.05 )       14.28       15.59       14,875       1.09       1.10       2.73 (d)        1

Year ended 12/31/18

      16.64       0.33       (2.81 )       (2.48 )       (0.35 )       (0.54 )       (0.89 )       13.27       (14.93 )       18,243       1.04       1.07       2.04       11

Period ended
12/31/17(f)

      14.67       0.27 (d)        2.28       2.55       (0.32 )       (0.26 )       (0.58 )       16.64       17.49       11       1.08 (g)        1.10 (g)        2.17 (d)(g)        10

 

(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)

Net investment income per share and the ratio of net investment income to average net assets include significant dividends
received during the year ended December 31, 2020. Net investment income per share and the ratio of net investment income to average net assets excluding the significant dividends are $0.08 and 0.62%, $(0.02) and (0.13)%, $0.12 and 0.87% and
$0.13 and 0.96% for Class A, Class C, Class Y and Class R6 shares, respectively. Net investment income per share and the ratio of net investment income to average net assets include significant dividends received during the year ended
December 31, 2019. Net investment income per share and the ratio of net investment income to average net assets excluding the significant dividends are $0.24 and 1.66%, $0.12 and 0.91%, $0.28 and 1.91% and $0.29 and 1.99% for Class A,
Class C, Class Y and Class R6 shares, respectively. Net investment income per share and the ratio of net investment income to average net assets include significant dividends received during the year ended December 31, 2017. Net investment
income per share and the ratio of net investment income to average net assets excluding the significant dividends are $0.24 and 1.51%, $0.11 and 0.76%, $0.29 and 1.76% and $0.22 and 1.83% for Class A, Class C, Class Y and Class R6 shares,
respectively.

(e)

Ratios are based on average daily net assets (000’s omitted) of $95,037, $8,336, $135,817 and $11,395 for
Class A, Class C, Class Y and Class R6 shares, respectively.

(f) 

Commencement date of April 4, 2017.

See
accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

13                                
   Invesco European Small Company Fund

Notes to Financial Statements

December 31, 2020

NOTE 1–Significant Accounting Policies

Invesco European Small Company Fund (the “Fund”) is a series portfolio of AIM Funds Group (Invesco Funds Group) (the “Trust”). The Trust is a Delaware
statutory trust registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company authorized to issue an unlimited number of shares of beneficial interest. Information
presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class.

The Fund’s investment objective is long-term growth of capital.

The Fund currently consists of four different classes of shares: Class A, Class C, Class Y and Class R6. Class Y shares are available only to certain
investors. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met. Under certain circumstances, load waived shares may be subject to contingent deferred sales charges (“CDSC”). Class C shares are
sold with a CDSC. Class Y and Class R6 shares are sold at net asset value. Class C shares held for ten years after purchase are eligible for automatic conversion into Class A shares of the same Fund (the Conversion Feature). The automatic
conversion pursuant to the Conversion Feature will generally occur at the end of the month following the tenth anniversary after a purchase of Class C shares. Effective November 30, 2020, the automatic conversion pursuant to the Conversion
Feature changed from ten years to eight years. The first conversion of Class C shares to Class A shares occurred at the end of December 2020 for all Class C shares that were held for more than eight years as of November 30, 2020.

The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting
Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.

The following is a summary of the
significant accounting policies followed by the Fund in the preparation of its financial statements.

A.

Security Valuations – Securities, including restricted securities, are valued according to the following
policy.

A security listed or traded on an exchange (except convertible securities) is valued at its last sales
price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing
bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered
fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are
principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts
generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end-of-day net
asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange
where the security is principally traded.

Debt obligations (including convertible securities) and unlisted equities are fair valued
using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service 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 specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations),
individual trading characteristics and other market data. Pricing services generally value debt obligations 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. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal
payments.

Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the
applicable exchange rates as of the close of the NYSE. 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 the investment
adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using
procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service 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 value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value
will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to
sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic
upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.

Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent
sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.

Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith
by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in
the course of making a good faith determination of a security’s fair value.

The Fund may invest in securities that are subject
to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates
depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.

Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the
issuer’s assets, general market conditions which 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, acts of terrorism or adverse investor sentiment generally and market liquidity. Because of the
inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

B.

Securities Transactions and Investment Income – Securities transactions are accounted for on a trade date
basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date. Dividend income (net of
withholding tax, if any) is recorded on the ex-dividend date.

The Fund may periodically participate in litigation
related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss)
for investments still held.

 

 

14                                
   Invesco European Small Company Fund

Brokerage commissions and mark ups are considered transaction costs and are recorded as an
increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the
Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset
value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in
Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.

The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each
class.

C.

Country Determination – For the purposes of making investment selection decisions and presentation in the
Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where
the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that
may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country
of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.

D.

Distributions – Distributions from net investment income and net realized capital gain, if any, are generally
declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes.

E.

Federal Income Taxes –The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue
Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject
to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.

The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management
has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably
possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.

The Fund files tax returns
in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.

F.

Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the
operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R6 are charged to such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and
expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets.

G.

Accounting Estimates – The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts
of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or
transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.

H.

Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other
agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing
agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of
material loss as a result of such indemnification claims is considered remote.

I.

Securities Lending – The Fund may lend portfolio securities having a market value up to one-third of the
Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed
by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated money market funds and is shown as such on the Schedule of Investments.
The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation
date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic
equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the
collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and
the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays
and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any
deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to
counterparties, are included in Dividends from affiliates on the Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Statement of Assets and Liabilities.

J.

Foreign Currency Translations – Foreign currency is valued at the close of the NYSE based on quotations posted
by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of
foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of
operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices
on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from
(1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes
recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in
securities at fiscal period end, resulting from changes in exchange rates.

The Fund may invest in foreign
securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign
markets in which the Fund invests and are shown in the Statement of Operations.

 

15                                   Invesco European
Small Company Fund

K.

Forward Foreign Currency Contracts – The Fund may engage in foreign currency transactions either on a spot
(i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk.

The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency
in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical settlement of the two currencies, but instead are settled by a single cash
payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards). The Fund will set aside liquid assets in an amount equal to the daily
mark-to-market obligation for forward foreign currency contracts.

A forward foreign currency contract is an obligation between two
parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund
owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation
(depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated
with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of
Assets and Liabilities.

NOTE 2–Advisory Fees and Other Fees Paid to Affiliates

The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the
investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:

 

Average Daily Net Assets    Rate      

 

 

First $ 250 million

     0.935%  

 

 

Next $250 million

     0.910%  

 

 

Next $500 million

     0.885%  

 

 

Next $1.5 billion

     0.860%  

 

 

Next $2.5 billion

     0.835%  

 

 

Next $2.5 billion

     0.810%  

 

 

Next $2.5 billion

     0.785%  

 

 

Over $10 billion

     0.760%  

For the year ended December 31, 2020, the effective advisory fee rate incurred by the Fund was 0.935%.

Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management
Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory agreements with Invesco Capital Management LLC and Invesco Asset Management
(India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management
services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).

The Adviser has contractually agreed, through at
least June 30, 2021, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of
Class A, Class C, Class Y and Class R6 shares to 2.25%, 3.00%, 2.00% and 2.00%, respectively, of the Fund’s average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees
and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest;
(2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement.
Unless Invesco continues the fee waiver agreement, it will terminate on June 30, 2021. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval
of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits.

Further, the Adviser
has contractually agreed, through at least June 30, 2022, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund
of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds.

For the year ended
December 31, 2020, the Adviser waived advisory fees of $15,420.

The Trust has entered into a master administrative services agreement with
Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the year ended December 31, 2020, expenses incurred under the agreement are shown in the
Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative
services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.

The Trust
has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse
IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to
intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the year ended December 31, 2020, expenses incurred
under the agreement are shown in the Statement of Operations as Transfer agent fees.

The Trust has entered into master distribution agreements
with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class C, Class Y and Class R6 shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the
Fund’s Class A and Class C shares (collectively, the “Plans”). The Fund, pursuant to the Plans, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Class A shares and 1.00% of the
average daily net assets of Class C shares. The fees are accrued daily and paid monthly. Of the Plan payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to
customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the
total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the year ended December 31, 2020, expenses incurred under the Plans are shown in the Statement of Operations as Distribution
fees
.

Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end
sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the

 

16                                   Invesco European
Small Company Fund

shareholder. During the year ended December 31, 2020, IDI advised the Fund that IDI retained $3,259 in front-end sales
commissions from the sale of Class A shares and $33 and $77 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.

Certain officers and trustees of the Trust are officers and directors of the Adviser, IIS and/or IDI.

NOTE 3–Additional Valuation Information

GAAP defines fair value as the
price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to
valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are
not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:

Level 1 –

   Prices are determined using quoted prices in an active market for identical assets.

Level 2 –

   Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates,
prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.

Level 3 –

   Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the
period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available
information.

The following is a summary of the tiered valuation input levels, as of December 31, 2020. The level assigned to the
securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from
the value received upon actual sale of those investments.

 

     Level 1      Level 2      Level 3      Total  

 

 

Investments in Securities

 

France

   $ –      $ 65,331,448      $ –      $ 65,331,448  

 

 

Georgia

     –        8,936,419          –        8,936,419  

 

 

Germany

     –        8,625,933          –        8,625,933  

 

 

Greece

     –        3,148,330          –        3,148,330  

 

 

Ireland

     –        7,365,850          –        7,365,850  

 

 

Israel

     3,150,606        12,778,920          –        15,929,526  

 

 

Italy

     –        9,288,772          –        9,288,772  

 

 

Morocco

     –        2,804,930          –        2,804,930  

 

 

Poland

     –        5,372,116          –        5,372,116  

 

 

Portugal

     1,550,078        –          –        1,550,078  

 

 

Romania

     –        7,717,122          –        7,717,122  

 

 

Russia

     2,457,780        –          –        2,457,780  

 

 

Singapore

     –        1,340,343          –        1,340,343  

 

 

Sweden

     –        2,787,686          –        2,787,686  

 

 

Switzerland

     –        9,162,493          –        9,162,493  

 

 

United Kingdom

     –        70,725,457          –        70,725,457  

 

 

Money Market Funds

     16,103,971        288,420          –        16,392,391  

Total Investments

   $ 23,262,435      $ 215,674,239      $   –      $ 238,936,674  

NOTE 4–Expense Offset Arrangement(s)

The
expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the year ended December 31, 2020, the Fund received
credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $671.

NOTE 5–Trustees’ and Officers’ Fees and
Benefits

Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and
Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those
Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for
benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan.
Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets
of the Fund.

NOTE 6–Cash Balances

The Fund is permitted to
temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate
the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the
custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate. The Fund may not purchase additional securities when any borrowings from banks or broker-dealers exceed 5% of the Fund’s
total assets, or when any borrowings from an Invesco Fund are outstanding.

 

17                                   Invesco European
Small Company Fund

NOTE 7–Distributions to Shareholders and Tax Components of Net Assets

Tax Character of Distributions to Shareholders Paid During the Fiscal Years Ended December 31, 2020 and 2019:

 

     2020      2019  

 

 

Ordinary income*

   $ 2,690,459      $ 16,827,223  

Long-term capital gain

     3,749,274        9,451,678  

Total distributions

   $ 6,439,733      $ 26,278,901  

 

*

Includes short-term capital gain distributions, if any.

Tax Components of Net Assets at Period-End:

              2020  

Undistributed ordinary income

            $ 6,410,418  

Net unrealized appreciation – investments

              59,779,444  

Net unrealized appreciation – foreign currencies

              34,452  

Temporary book/tax differences

              (75,036

Capital loss carryforward

              (20,906,327

Shares of beneficial interest

              193,073,841  

Total net assets

            $ 238,316,792  

The difference between book-basis and tax-basis unrealized appreciation (depreciation) is due to differences in the
timing of recognition of gains and losses on investments for tax and book purposes. The Fund’s net unrealized appreciation (depreciation) difference is attributable primarily to passive foreign investment companies.

The temporary book/tax differences are a result of timing differences between book and tax recognition of income and/or expenses. The Fund’s
temporary book/tax differences are the result of the trustee deferral of compensation and retirement plan benefits.

Capital loss carryforward is
calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforward
in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

The Fund has a
capital loss carryforward as of December 31, 2020, as follows:

 

Capital Loss Carryforward*  
Expiration    Short-Term      Long-Term      Total  

Not subject to expiration

   $ 1,221,969      $ 19,684,358      $ 20,906,327  

 

*

Capital loss carryforward is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may
be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization.

NOTE 8–Investment Transactions

The aggregate amount of investment
securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the year ended December 31, 2020 was $13,828,142 and $148,704,299, respectively. Cost of investments,
including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

 

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis  

Aggregate unrealized appreciation of investments

 

   $ 78,520,437  

Aggregate unrealized (depreciation) of
investments

 

     (18,740,993

Net unrealized appreciation of investments

            $ 59,779,444  

      Cost of investments for tax purposes is $179,157,230.

NOTE 9–Reclassification of Permanent Differences

Primarily as a result of
differing book/tax treatment of passive foreign investment companies, on December 31, 2020, undistributed net investment income was increased by $2,537,321 and undistributed net realized gain (loss) was decreased by $2,537,321. This
reclassification had no effect on the net assets or the distributable earnings of the Fund.

NOTE 10–Share Information

 

              Summary of Share Activity  
     Year ended      Year ended  
     December 31, 2020(a)      December 31, 2019  
  

 

 

    

 

 

 
      Shares      Amount      Shares      Amount  

Sold:

           

Class A

     316,260      $ 4,028,241        298,073      $ 4,204,921  

Class C

     15,722        188,478        21,556        281,814  

Class Y

     1,504,516        19,936,199        2,561,419        36,196,787  

Class R6

     99,404        1,268,886        213,648        3,064,051  

 

18                                   Invesco European
Small Company Fund

      Summary of Share Activity  
     Year ended     Year ended  
     December 31, 2020(a)     December 31, 2019  
  

 

 

   

 

 

 
      Shares     Amount     Shares     Amount  

Issued as reinvestment of dividends:

        

Class A

     167,672     $ 2,488,245       531,516     $ 7,515,639  

Class C

     15,142       207,449       54,190       714,226  

Class Y

     184,682       2,757,307       969,693       13,759,942  

Class R6

     17,998       268,896       66,085       937,750  

Automatic conversion of Class C shares to Class A shares:

        

Class A

     214,947       2,919,178       609,417       8,518,572  

Class C

     (232,096     (2,919,178     (652,733     (8,518,572

Reacquired:

        

Class A

     (2,717,974     (34,117,393     (2,557,922     (36,267,483

Class C

     (263,543     (3,045,474     (338,500     (4,458,827

Class Y

     (9,856,282     (119,151,607     (18,296,266     (259,215,232

Class R6

     (437,218     (5,712,061     (613,226     (8,723,894

Net increase (decrease) in share activity

     (10,970,770   $ (130,882,834     (17,133,050   $ (241,990,306

 

(a) 

There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own
48% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing
services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Fund has no knowledge as to whether all or any portion of
the shares owned of record by these entities are also owned beneficially.

NOTE 11–Coronavirus (COVID-19) Pandemic

During the first quarter of 2020, the World Health Organization declared COVID-19 to be a public health emergency. COVID-19 has led to increased short-term market
volatility and may have adverse long-term effects on U.S. and world economies and markets in general. COVID-19 may adversely impact the Fund’s ability to achieve its investment objective. Because of the uncertainties on valuation, the global
economy and business operations, values reflected in these financial statements may materially differ from the value received upon actual sales of those investments.

The extent of the impact on the performance of the Fund and its investments will depend on future developments, including the duration and spread of the
COVID-19 outbreak, related restrictions and advisories, and the effects on the financial markets and economy overall, all of which are highly uncertain and cannot be predicted.

 

19                                   Invesco European
Small Company Fund

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of AIM Funds Group (Invesco Funds Group) and Shareholders of Invesco European Small Company Fund

Opinion on the Financial Statements

We have audited the accompanying
statement of assets and liabilities, including the schedule of investments, of Invesco European Small Company Fund (one of the funds constituting AIM Funds Group (Invesco Funds Group), referred to hereafter as the “Fund”) as of
December 31, 2020, the related statement of operations for the year ended December 31, 2020, the statement of changes in net assets for each of the two years in the period ended December 31, 2020, including the related notes, and the
financial highlights for each of the periods indicated therein (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund
as of December 31, 2020, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended December 31, 2020 and the financial highlights for each of the periods indicated
therein in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based
on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and
the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance
with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing
procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and
significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of December 31, 2020 by correspondence with the custodian and
transfer agent. We believe that our audits provide a reasonable basis for our opinion.

/s/PricewaterhouseCoopers LLP

Houston, Texas

February 26, 2021

We have served as the auditor of one or more investment companies in the Invesco group of investment companies since at least 1995. We have not been able to determine
the specific year we began serving as auditor.

 

20                                   Invesco European
Small Company Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur two types of costs:
(1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees,
and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment
of $1,000 invested at the beginning of the period and held for the entire period July 1, 2020 through December 31, 2020.

Actual expenses

The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to
estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled
“Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical example for comparison purposes

The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an
assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.

The hypothetical account values and
expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the
table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any. Therefore, the hypothetical information is
useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.

 

         

ACTUAL

 

HYPOTHETICAL

(5% annual return before

expenses)

 

    Annualized    
Expense Ratio

                      
            
  Beginning
    Account Value    
(07/01/20)
  Ending
    Account Value    
(12/31/20)1
  Expenses
    Paid During    
Period2
  Ending
    Account Value    
(12/31/20)
  Expenses
    Paid During    
Period2

Class A      

  $1,000.00   $1,283.50   $8.84   $1,017.39   $7.81   1.54%

Class C      

  1,000.00   1,278.80   13.17   1,013.57   11.64   2.30  

Class Y      

  1,000.00   1,284.60   7.41   1,018.65   6.55   1.29  

Class R6      

  1,000.00   1,285.40   6.89   1,019.10   6.09   1.20  

 

1

The actual ending account value is based on the actual total return of the Fund for the period July 1, 2020 through
December 31, 2020, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.

2

Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value
over the period, multiplied by 184/366 to reflect the most recent fiscal half year.

 

21                                   Invesco European
Small Company Fund

Tax Information

Form 1099-DIV,
Form 1042-S and other year–end tax information provide shareholders with actual calendar year amounts that should be included in their tax returns. Shareholders should consult their tax advisers.

The following distribution information is being provided as required by the Internal Revenue Code or to meet a specific state’s requirement.

The Fund designates the following amounts or, if subsequently determined to be different, the maximum amount allowable for its fiscal year ended
December 31, 2020:

 

                  

Federal and State Income Tax

     

Long-Term Capital Gain Distributions

   $ 3,749,274     

Qualified Dividend Income*

     61.48   

Corporate Dividends Received Deduction*

     0.00   

U.S. Treasury Obligations*

     0.00   

 

  *

The above percentages are based on ordinary income dividends paid to shareholders during the Fund’s fiscal year.

 

22                                   Invesco European
Small Company Fund

Trustees and Officers

The
address of each trustee and officer is AIM Funds Group (Invesco Funds Group) (the “Trust”), 11 Greenway Plaza, Suite 1000, Houston, Texas 77046-1173. The trustees serve for the life of the Trust, subject to their earlier death,
incapacitation, resignation, retirement or removal as more specifically provided in the Trust’s organizational documents. Each officer serves for a one year term or until their successors are elected and qualified. Column two below includes
length of time served with predecessor entities, if any.

 

    Name, Year of Birth and        

    Position(s)

    Held with the
Trust

  

Trustee            

and/or

Officer

Since

  

Principal Occupation(s)

During Past 5 Years

   Number of
Funds in
Fund Complex  
Overseen by
Trustee
  

Other
Directorship(s)
Held by Trustee            
During Past
5

Years


Interested Trustee

Martin L. Flanagan1 – 1960

Trustee and Vice Chair

   2007   

Executive Director, Chief Executive Officer and President,
Invesco Ltd. (ultimate parent of Invesco and a global investment management firm); Trustee and Vice Chair, The Invesco Funds; Vice Chair, Investment Company Institute; and Member of Executive Board, SMU Cox School of Business

 

Formerly: Advisor to the Board, Invesco Advisers, Inc. (formerly known as
Invesco Institutional (N.A.), Inc.); Chairman and Chief Executive Officer, Invesco Advisers, Inc. (registered investment adviser); Director, Chairman, Chief Executive Officer and President, Invesco Holding Company (US), Inc. (formerly IVZ Inc.)
(holding company), Invesco Group Services, Inc. (service provider) and Invesco North American Holdings, Inc. (holding company); Director, Chief Executive Officer and President, Invesco Holding Company Limited (parent of Invesco and a global
investment management firm); Director, Invesco Ltd.; Chairman, Investment Company Institute and President, Co-Chief Executive Officer, Co-President, Chief Operating Officer and Chief Financial Officer, Franklin Resources, Inc. (global investment
management organization)

   197    None

 

1

Mr. Flanagan is considered an interested person (within the meaning of Section 2(a)(19) of the 1940 Act) of the
Trust because he is an officer of the Adviser to the Trust, and an officer and a director of Invesco Ltd., ultimate parent of the Adviser.

 

    Name, Year of Birth and        

    Position(s)

    Held with the
Trust

  

Trustee            

and/or

Officer

Since

  

Principal Occupation(s)

During Past 5 Years

  

Number of
Funds

in
Fund Complex  
Overseen by
Trustee

  

Other Directorship(s)
Held by Trustee            
During Past
5

Years


Independent Trustees

Christopher L. Wilson – 1967

Trustee and Chair

   2017   

Retired

 

Formerly: Director, TD Asset Management USA Inc. (mutual fund complex) (22
portfolios); Managing Partner, CT2, LLC (investing and consulting firm); President/Chief Executive Officer, Columbia Funds, Bank of America Corporation; President/Chief Executive Officer, CDC IXIS Asset Management Services, Inc.; Principal &
Director of Operations, Scudder Funds, Scudder, Stevens & Clark, Inc.; Assistant Vice President, Fidelity Investments

   197    enaible, Inc. (artificial intelligence technology); ISO New England, Inc.
(non-profit organization managing regional electricity market)

Beth Ann Brown – 1968

Trustee

   2019   

Independent Consultant

 

Formerly: Head of Intermediary Distribution, Managing Director, Strategic
Relations, Managing Director, Head of National Accounts, Senior Vice President, National Account Manager and Senior Vice President, Key Account Manager, Columbia Management Investment Advisers LLC; Vice President, Key Account Manager, Liberty Funds
Distributor, Inc.; and Trustee of certain Oppenheimer Funds

   197    Director, Board of Directors of Caron Engineering Inc.; Advisor, Board of
Advisors of Caron Engineering Inc.; President and Director, Acton Shapleigh Youth Conservation Corps (non – profit); and Vice President and Director of Grahamtastic Connection (non-profit)

Jack M. Fields – 1952

Trustee

   1997   

Chief Executive Officer, Twenty First Century Group, Inc.
(government affairs company); and Board Member, Impact(Ed) (non-profit) Formerly: Owner and Chief Executive Officer, Dos Angeles Ranch L.P. (cattle, hunting, corporate entertainment); Director, Insperity, Inc. (formerly known as Administaff) (human
resources provider); Chief Executive Officer, Texana Timber LP (sustainable forestry company); Director of Cross Timbers Quail Research Ranch (non-profit); and member of the U.S. House of Representatives

   197    Member, Board of Directors of Baylor College of
Medicine

 

T-1                                   Invesco European
Small Company Fund

Trustees and Officers–(continued)

 

    Name, Year of Birth and        

    Position(s)

    Held with the
Trust

  

Trustee            

and/or

Officer

Since

  

Principal Occupation(s)

During Past 5 Years

  

Number of
Funds

in
Fund Complex  
Overseen by
Trustee

  

Other Directorship(s)
Held by Trustee            
During Past
5

Years

Independent
Trustees–(continued)

Cynthia Hostetler – 1962

Trustee

   2017   

Non-Executive Director and Trustee of a number of public and
private business corporations

 

Formerly: Director, Aberdeen Investment
Funds (4 portfolios); Artio Global Investment LLC (mutual fund complex); Edgen Group, Inc. (specialized energy and infrastructure products distributor); Head of Investment Funds and Private Equity, Overseas Private Investment Corporation; President,
First Manhattan Bancorporation, Inc.; Attorney, Simpson Thacher & Bartlett LLP

   197    Resideo Technologies, Inc. (Technology); Vulcan Materials Company (construction materials company); Trilinc
Global Impact Fund; Genesee & Wyoming, Inc. (railroads); Investment Company Institute (professional organization); Independent Directors Council (professional organization)

Eli Jones – 1961

Trustee

   2016   

Professor and Dean, Mays Business School – Texas A&M
University

 

Formerly: Professor and Dean, Walton College of Business,
University of Arkansas and E.J. Ourso College of Business, Louisiana State University; Director, Arvest Bank

   197    Insperity, Inc. (formerly known as Administaff) (human resources provider)

Elizabeth Krentzman – 1959

Trustee

   2019   

Formerly: Principal and Chief Regulatory Advisor for Asset
Management Services and U.S. Mutual Fund Leader of Deloitte & Touche LLP; General Counsel of the Investment Company Institute (trade association); National Director of the Investment Management Regulatory Consulting Practice, Principal, Director
and Senior Manager of Deloitte & Touche LLP; Assistant Director of the Division of Investment Management – Office of Disclosure and Investment Adviser Regulation of the U.S. Securities and Exchange Commission and various positions with the
Division of Investment Management – Office of Regulatory Policy of the U.S. Securities and Exchange Commission; Associate at Ropes & Gray LLP; Advisory Board Member of the Securities and Exchange Commission Historical Society; and Trustee of
certain Oppenheimer Funds

   197    Trustee of the University of Florida National Board Foundation and Audit Committee Member; Member of the
Cartica Funds Board of Directors (private investment funds); Member of the University of Florida Law Center Association, Inc. Board of Trustees and Audit Committee Member

Anthony J. LaCava, Jr. – 1956

Trustee

   2019   

Formerly: Director and Member of the Audit Committee, Blue
Hills Bank (publicly traded financial institution) and Managing Partner, KPMG LLP

   197    Blue Hills Bank; Chairman, Bentley University; Member, Business School Advisory Council; and Nominating
Committee KPMG LLP

Prema Mathai-Davis – 1950

Trustee

   1998   

Retired

 

Formerly: Co-Founder & Partner of Quantalytics Research, LLC, (a FinTech
Investment Research Platform for the Self-Directed Investor); Trustee of YWCA Retirement Fund; CEO of YWCA of the USA; Board member of the NY Metropolitan Transportation Authority; Commissioner of the NYC Department of Aging; Board member of Johns
Hopkins Bioethics Institute

   197    None

 

T-2                           
        Invesco European Small Company Fund


Trustees and Officers–(continued)

 

    Name, Year of Birth and        

    Position(s)

    Held with the
Trust

  

Trustee            

and/or

Officer

Since

  

Principal Occupation(s)

During Past 5 Years

  

Number of
Funds

in
Fund Complex  
Overseen by
Trustee

  

Other Directorship(s)
Held by Trustee            
During Past
5

Years

Independent
Trustees–(continued)
                     

Joel W. Motley – 1952

Trustee

   2019   

Director of Office of Finance, Federal Home Loan Bank System;
Managing Director of Carmona Motley Inc. (privately held financial advisor); Member of the Council on Foreign Relations and its Finance and Budget Committee; Chairman Emeritus of Board of Human Rights Watch and Member of its Investment Committee;
and Member of Investment Committee and Board of Historic Hudson Valley (non-profit cultural organization)

 

Formerly: Managing Director of Public Capital Advisors, LLC (privately held financial advisor); Managing Director of Carmona Motley Hoffman, Inc.
(privately held financial advisor); Trustee of certain Oppenheimer Funds; and Director of Columbia Equity Financial Corp. (privately held financial advisor); and Member of the Vestry of Trinity Church Wall Street

   197    Member of Board of Greenwall Foundation (bioethics research foundation) and its Investment Committee; Member of
Board of Friends of the LRC (non-profit legal advocacy); Board Member and Investment Committee Member of Pulizer Center for Crisis Reporting (non-profit journalism)

Teresa M. Ressel – 1962

Trustee

   2017   

Non-executive director and trustee of a number of public and
private business corporations

 

Formerly: Chief Executive Officer, UBS
Securities LLC (investment banking); Chief Operating Officer, UBS AG Americas (investment banking); Sr. Management Team Olayan America, The Olayan Group (international investor/commercial/industrial); Assistant Secretary for Management & Budget
and Designated Chief Financial Officer, U.S. Department of Treasury

   197    Elucida Oncology (nanotechnology & medical particles company); Atlantic Power Corporation (power generation
company); ON Semiconductor Corporation (semiconductor manufacturing)

Ann Barnett Stern – 1957

Trustee

   2017   

President and Chief Executive Officer, Houston Endowment Inc.
(private philanthropic institution)

 

Formerly: Executive Vice President and
General Counsel, Texas Children’s Hospital; Attorney, Beck, Redden and Secrest, LLP; Business Law Instructor, University of St. Thomas; Attorney, Andrews & Kurth LLP and Federal Reserve Bank of Dallas

   197    None

Robert C. Troccoli – 1949

Trustee

   2016   

Retired

 

Formerly: Adjunct Professor, University of Denver – Daniels College of
Business; and Managing Partner, KPMG LLP

   197    None

Daniel S. Vandivort – 1954

Trustee

   2019   

Trustee, Board of Trustees, Huntington Disease Foundation of
America; and President, Flyway Advisory Services LLC (consulting and property management)

 

Formerly: Trustee and Governance Chair, of certain Oppenheimer Funds; and Treasurer, Chairman of the Audit and Finance Committee, Huntington Disease
Foundation of America

   197    None

James D. Vaughn – 1945

Trustee

   2019   

Retired

 

Formerly: Managing Partner, Deloitte & Touche LLP; Trustee and Chairman of
the Audit Committee, Schroder Funds; Board Member, Mile High United Way, Boys and Girls Clubs, Boy Scouts, Colorado Business Committee for the Arts, Economic Club of Colorado and Metro Denver Network (economic development corporation); and Trustee
of certain Oppenheimer Funds

   197    Board member and Chairman of Audit Committee of AMG National Trust Bank; Trustee and Investment Committee
member, University of South Dakota Foundation; Board member, Audit Committee Member and past Board Chair, Junior Achievement (non-profit)

 

T-3                           
        Invesco European Small Company Fund


Trustees and Officers–(continued)

 

    Name, Year of Birth and        

    Position(s)

    Held with the
Trust

  

Trustee            

and/or

Officer

Since

  

Principal Occupation(s)

During Past 5 Years

   Number of
Funds in
Fund Complex  
Overseen by
Trustee
  

Other Directorship(s)
Held by Trustee            
During Past
5

Years

Officers

Sheri Morris – 1964

President and Principal Executive Officer

   1999   

Head of Global Fund Services, Invesco Ltd.; President and
Principal Executive Officer, The Invesco Funds; Senior Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); and Vice President, Invesco Exchange-Traded Fund Trust, Invesco
Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Commodity Fund Trust and Invesco Exchange-Traded Self-Indexed Fund Trust; and Vice
President, OppenheimerFunds, Inc.

 

Formerly: Vice President, Treasurer and
Principal Financial Officer, The Invesco Funds; Vice President, Invesco AIM Advisers, Inc., Invesco AIM Capital Management, Inc. and Invesco AIM Private Asset Management, Inc.; Assistant Vice President and Assistant Treasurer, The Invesco Funds;
Vice President and Assistant Vice President, Invesco Advisers, Inc.; Assistant Vice President, Invesco AIM Capital Management, Inc. and Invesco AIM Private Asset Management, Inc.; and Treasurer, Invesco Exchange-Traded Fund Trust, Invesco
Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust and Invesco Actively Managed Exchange-Traded Fund Trust

   N/A    N/A

Russell C. Burk – 1958

Senior Vice President and Senior Officer

   2005   

Senior Vice President and Senior Officer, The Invesco
Funds

   N/A    N/A

Jeffrey H. Kupor – 1968

Senior Vice President, Chief Legal Officer and Secretary

   2018   

Head of Legal of the Americas, Invesco Ltd.; Senior Vice
President and Secretary, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Senior Vice President and Secretary, Invesco Distributors, Inc. (formerly known as Invesco AIM Distributors,
Inc.); Vice President and Secretary, Invesco Investment Services, Inc. (formerly known as Invesco AIM Investment Services, Inc.) Senior Vice President, Chief Legal Officer and Secretary, The Invesco Funds; Secretary and General Counsel, Invesco
Investment Advisers LLC (formerly known as Van Kampen Asset Management); Secretary and General Counsel, Invesco Capital Markets, Inc. (formerly known as Van Kampen Funds Inc.) and Chief Legal Officer, Invesco Exchange-Traded Fund Trust, Invesco
Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Commodity Fund Trust and Invesco Exchange-Traded Self-Indexed Fund Trust;
Secretary, Invesco Indexing LLC; Secretary, W.L. Ross & Co., LLC ; Secretary and Vice President, Harbourview Asset Management Corporation; Secretary and Vice President, OppenheimerFunds, Inc. and Invesco Managed Accounts, LLC; Secretary and
Senior Vice President, OFI Global Institutional, Inc.; Secretary and Vice President, OFI SteelPath, Inc.; Secretary and Vice President, Oppenheimer Acquisition Corp.; Secretary and Vice President, Shareholder Services, Inc.; Secretary and Vice
President, Trinity Investment Management Corporation

 

Formerly: Secretary
and Vice President, Jemstep, Inc.; Head of Legal, Worldwide Institutional, Invesco Ltd.; Secretary and General Counsel, INVESCO Private Capital Investments, Inc.; Senior Vice President, Secretary and General Counsel, Invesco Management Group, Inc.
(formerly known as Invesco AIM Management Group, Inc.); Assistant Secretary, INVESCO Asset Management (Bermuda) Ltd.; Secretary and General Counsel, Invesco Private Capital, Inc.; Assistant Secretary and General Counsel, INVESCO Realty, Inc.;
Secretary and General Counsel, Invesco Senior Secured Management, Inc.; and Secretary, Sovereign G./P. Holdings Inc.

   N/A    N/A

Andrew R. Schlossberg – 1974

Senior Vice President

   2019   

Head of the Americas and Senior Managing Director, Invesco
Ltd.; Director and Senior Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director and Chairman, Invesco Investment Services, Inc. (formerly known as Invesco AIM
Investment Services, Inc.) (registered transfer agent); Senior Vice President, The Invesco Funds; Director, Invesco Investment Advisers LLC (formerly known as Van Kampen Asset Management); Director, President and Chairman, Invesco Insurance Agency,
Inc.

 

Formerly: Director, Invesco UK Limited; Director and Chief Executive,
Invesco Asset Management Limited and Invesco Fund Managers Limited; Assistant Vice President, The Invesco Funds; Senior Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser);
Director and Chief Executive, Invesco Administration Services Limited and Invesco Global Investment Funds Limited; Director, Invesco Distributors, Inc.; Head of EMEA, Invesco Ltd.; President, Invesco Actively Managed Exchange-Traded Commodity Fund
Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II and Invesco India Exchange-Traded Fund Trust; Managing Director and Principal Executive Officer, Invesco Capital
Management LLC

   N/A    N/A

 

T-4                           
        Invesco European Small Company Fund


Trustees and Officers–(continued)

 

    Name, Year of Birth and        

    Position(s)

    Held with the
Trust

  

Trustee            

and/or

Officer

Since

  

Principal Occupation(s)

During Past 5 Years

   Number of
Funds in
Fund Complex  
Overseen by
Trustee
  

Other Directorship(s)
Held by Trustee            
During Past
5

Years

Officers–(continued)

John M. Zerr – 1962

Senior Vice President

   2006   

Chief Operating Officer of the Americas; Senior Vice
President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Senior Vice President, Invesco Distributors, Inc. (formerly known as Invesco AIM Distributors, Inc.); Director and Vice
President, Invesco Investment Services, Inc. (formerly known as Invesco AIM Investment Services, Inc.) Senior Vice President, The Invesco Funds; Managing Director, Invesco Capital Management LLC; Director, Invesco Investment Advisers LLC (formerly
known as Van Kampen Asset Management); Senior Vice President, Invesco Capital Markets, Inc. (formerly known as Van Kampen Funds Inc.); Manager, Invesco Indexing LLC; Manager, Invesco Specialized Products, LLC; Director and Senior Vice President,
Invesco Insurance Agency, Inc.; Member, Invesco Canada Funds Advisory Board; Director, President and Chief Executive Officer, Invesco Corporate Class Inc. (corporate mutual fund company); and Director, Chairman, President and Chief Executive
Officer, Invesco Canada Ltd. (formerly known as Invesco Trimark Ltd./Invesco Trimark Ltèe) (registered investment adviser and registered transfer agent); President, Invesco, Inc.; President, Invesco Global Direct Real Estate Feeder GP Ltd.;
President, Invesco IP Holdings(Canada) Ltd; President, Invesco Global Direct Real Estate GP Ltd.; President, Invesco Financial Services Ltd. / Services Financiers Invesco Ltée; and President, Trimark Investments Ltd./Placements Trimark
Ltée

 

Formerly: Director and Senior Vice President, Invesco
Management Group, Inc. (formerly known as Invesco AIM Management Group, Inc.); Secretary and General Counsel, Invesco Management Group, Inc. (formerly known as Invesco AIM Management Group, Inc.); Secretary, Invesco Investment Services, Inc.
(formerly known as Invesco AIM Investment Services, Inc.); Chief Legal Officer and Secretary, The Invesco Funds; Secretary and General Counsel, Invesco Investment Advisers LLC (formerly known as Van Kampen Asset Management); Secretary and General
Counsel, Invesco Capital Markets, Inc. (formerly known as Van Kampen Funds Inc.); Chief Legal Officer, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed
Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Commodity Fund Trust and Invesco Exchange-Traded Self-Indexed Fund Trust; Secretary, Invesco Indexing LLC; Director, Secretary, General Counsel and Senior Vice President, Van
Kampen Exchange Corp.; Director, Vice President and Secretary, IVZ Distributors, Inc. (formerly known as INVESCO Distributors, Inc.); Director and Vice President, INVESCO Funds Group, Inc.; Director and Vice President, Van Kampen Advisors Inc.;
Director, Vice President, Secretary and General Counsel, Van Kampen Investor Services Inc.; Director and Secretary, Invesco Distributors, Inc. (formerly known as Invesco AIM Distributors, Inc.); Director, Senior Vice President, General Counsel and
Secretary, Invesco AIM Advisers, Inc. and Van Kampen Investments Inc.; Director, Vice President and Secretary, Fund Management Company; Director, Senior Vice President, Secretary, General Counsel and Vice President, Invesco AIM Capital Management,
Inc.; Chief Operating Officer and General Counsel, Liberty Ridge Capital, Inc. (an investment adviser)

   N/A    N/A

Gregory G. McGreevey – 1962

Senior Vice President

   2012   

Senior Managing Director, Invesco Ltd.; Director, Chairman,
President, and Chief Executive Officer, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director, Invesco Mortgage Capital, Inc. and Invesco Senior Secured Management, Inc.; and Senior
Vice President, The Invesco Funds; and President, SNW Asset Management Corporation and Invesco Managed Accounts, LLC; Chairman and Director, Invesco Private Capital, Inc.; Chairman and Director, INVESCO Private Capital Investments, Inc.; and
Chairman and Director, INVESCO Realty, Inc.

 

Formerly: Senior Vice
President, Invesco Management Group, Inc. and Invesco Advisers, Inc.; Assistant Vice President, The Invesco Funds

   N/A    N/A

Adrien Deberghes – 1967

Principal Financial Officer, Treasurer and Vice President

   2020   

Head of the Fund Office of the CFO and Fund Administration;
Principal Financial Officer, Treasurer and Vice President, The Invesco Funds; Vice President, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed
Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Commodity Fund Trust and Invesco Exchange-Traded Self-Indexed Fund Trust

 

Formerly: Senior Vice President and Treasurer, Fidelity Investments

   N/A    N/A

Crissie M. Wisdom – 1969

Anti-Money Laundering Compliance Officer

   2013   

Anti-Money Laundering and OFAC Compliance Officer for
Invesco U.S. entities including: Invesco Advisers, Inc. and its affiliates, Invesco Capital Markets, Inc., Invesco Distributors, Inc., Invesco Investment Services, Inc., The Invesco Funds, Invesco Capital Management, LLC, Invesco Trust Company;
OppenheimerFunds Distributor, Inc., and Fraud Prevention Manager for Invesco Investment Services, Inc.

   N/A    N/A

 

T-5
                                   Invesco European Small Company Fund


Trustees and Officers–(continued)

 

    Name, Year of Birth and        

    Position(s)

    Held with the
Trust

  

Trustee            

and/or

Officer

Since

  

Principal Occupation(s)

During Past 5 Years

   Number of
Funds in
Fund Complex  
Overseen by
Trustee
  

Other Directorship(s)
Held by Trustee            
During Past
5

Years

Officers–(continued)

Todd F. Kuehl – 1969

Chief Compliance Officer and Senior Vice President

   2020   

Chief Compliance Officer, Invesco Advisers, Inc. (registered
investment adviser); and Chief Compliance Officer, The Invesco Funds and Senior Vice President

 

Formerly: Managing Director and Chief Compliance Officer, Legg Mason (Mutual Funds);Chief Compliance Officer, Legg Mason Private Portfolio Group
(registered investment adviser)

   N/A    N/A

Michael McMaster – 1962

Chief Tax Officer, Vice President and Assistant Treasurer

   2020   

Head of Global Fund Services Tax; Chief Tax Officer, Vice
President and Assistant Treasurer, The Invesco Funds; Assistant Treasurer, Invesco Capital Management LLC, Assistant Treasurer and Chief Tax Officer, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India
Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Commodity Fund Trust and Invesco Exchange-Traded Self-Indexed Fund Trust;

 

Assistant Treasurer, Invesco Specialized Products, LLC

 

Formerly: Senior Vice President – Managing Director of Tax Services, U.S.
Bank Global Fund Services (GFS)

   N/A    N/A

The Statement of Additional Information of the Trust includes additional information about the Fund’s Trustees and is available upon
request, without charge, by calling 1.800.959.4246. Please refer to the Fund’s Statement of Additional Information for information on the Fund’s sub-advisers.

 

Office of the Fund   Investment Adviser   Distributor   Auditors
11 Greenway Plaza, Suite 1000   Invesco Advisers, Inc.   Invesco Distributors, Inc.   PricewaterhouseCoopers LLP
Houston, TX 77046-1173   1555 Peachtree Street, N.E.   11 Greenway Plaza, Suite 1000   1000 Louisiana Street, Suite 5800
  Atlanta, GA 30309   Houston, TX 77046-1173   Houston, TX 77002-5678
Counsel to the Fund   Counsel to the Independent Trustees   Transfer Agent   Custodian
Stradley Ronon Stevens & Young, LLP   Goodwin Procter LLP   Invesco Investment Services, Inc.   State Street Bank and Trust Company
2005 Market Street, Suite 2600   901 New York Avenue, N.W.   11 Greenway Plaza, Suite 1000   225 Franklin Street
Philadelphia, PA 19103-7018   Washington, D.C. 20001   Houston, TX 77046-1173   Boston, MA 02110-2801

 

T-6
                                   Invesco European Small Company Fund


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LOGO

Go paperless with eDelivery

Visit
invesco.com/edelivery to enjoy the convenience and security of anytime electronic access to your investment documents.

With eDelivery, you can elect to have any or
all of the following materials delivered straight to your inbox to download, save and print from your own computer:

Fund reports and prospectuses

Quarterly statements

Daily confirmations

Tax forms

 

 

Invesco mailing information

Send general correspondence to Invesco
Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.

 

 

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
Invesco Investment Services, Inc. at 800 959 4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.

 

 

Fund holdings and proxy voting information

The Fund provides a complete
list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth quarters, the list appears in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the
lists with the Securities and Exchange Commission (SEC) as an exhibit to its reports on
Form N-PORT. The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Form
N-PORT filings on the SEC website, sec.gov. The SEC file numbers for the Fund are shown below.

A description of the policies and procedures that the
Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246, or at invesco.com/ proxyguidelines. The information is also available on the
SEC website, sec.gov.

Information regarding how the Fund voted proxies related to its portfolio securities during the most recent 12-month period ended
June 30 is available at invesco.com/proxysearch. This information is also available on the SEC website, sec.gov.

Invesco Advisers, Inc. is
an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds
and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.

  

 

LOGO

 

SEC file numbers: 811-01540 and 002-27334    Invesco Distributors, Inc.    ESC-AR-1   

 

 

LOGO

  Annual Report to Shareholders    December 31, 2020
 

 

  Invesco Global Core Equity Fund
 

 

Nasdaq:

  
  A: AWSAX C: AWSCX R: AWSRX
Y: AWSYX R5: AWSIX R6: AWSSX

 

LOGO


 

Management’s Discussion of Fund Performance

 

Performance summary

For the year ended December 31, 2020, Class A shares of Invesco Global Core Equity Fund (the Fund), at net asset value
(NAV), underperformed the MSCI World Index, the Fund’s broad market/style-specific benchmark.

    Your Fund’s long-term performance
appears later in this report.

 

Fund vs. Indexes

Total returns, 12/31/19 to 12/31/20, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales
charges, which would have reduced performance.

Class A Shares

     12.63

Class C Shares

     11.75  

Class R Shares

     12.35  

Class Y Shares

     12.96  

Class R5 Shares

     12.89  

Class R6 Shares

     12.95  

MSCI World Indexq (Broad Market/Style-Specific Index)

     15.90  

Lipper Global
Large-Cap Core Funds Index (Peer Group Index)

     13.84  

Source(s): qRIMES Technologies Corp.; Lipper Inc.

  

 

 

 

Market conditions and your Fund

Global equity markets started the year buoyed by positive economic data and the signing of the phase one US-China trade deal.
However, initial optimism was dampened by the outbreak of the new coronavirus (COVID-19) that swiftly spread from China to other global regions. Global equity markets fell sharply as the human and economic
cost of the COVID-19 pandemic mounted. The US bull market came to an abrupt end, while global equity markets also fell sharply. As fear of a worldwide recession increased, central banks around the world took
aggressive action to support both local markets and the global economy.

    Despite the continuing global spread of COVID-19, many countries achieved some success in controlling the spread and were able to slowly re-open their economies. Global equity markets benefited from government
policy responses to the crisis, which were swift and encouraging. Many economies received fiscal stimulus and very significant monetary stimulus. The massive monetary policy responses created an environment in which investors embraced risk, and
stocks rose globally after a deep rout in the first quarter.

    Despite a correction in September, global equity stocks finished the third
quarter in positive territory after posting strong gains in July and August. Building on progress made in the latter part of the second quarter, many countries were able to continue reducing pandemic-related stringency protocols. As a result, the
“green shoots” we saw at the end of the second quarter grew and flourished into the third quarter, as many countries experienced a strong economic rebound.

    At the end of the year, global equity markets again posted gains as good news about COVID-19 vaccines
outweighed concerns about sharply rising infection rates and tightening

social restrictions. In most global regions, equity market leadership shifted as value stocks outperformed growth stocks.
Sectors that had been severely affected by the pandemic, including energy and financials, were among the fourth quarter’s top performers. Emerging market equities, which posted robust gains amplified by US dollar weakness, outperformed
developed market equities for the year.

    The Fund’s relative performance compared to the MSCI World Index was primarily due to
investments in the consumer discretionary sector which lagged those of the index over the year. In terms of market allocation, the Fund had an average overweighting to financials which hurt relative performance due to the sector lagging the market
average. In contrast, the Fund’s investments in the communication services sector outperformed the index over the year and benefited relative performance.

    The most significant individual contributors during the year included Salesforce.com and Sabre. Shares in Salesforce.com rose on
strong reported operating results despite the pandemic and also benefited as companies offering SaaS (software as a service) were in favor in 2020. Salesforce.com was sold from the portfolio during the year.

    Shares in Sabre rebounded late in 2020 after being hit hard as a result of the pandemic. Sabre is a leading technology firm serving the travel
industry. Shares rallied on news the company was expanding its AI-based platform offerings to clients and also due to optimism that approved COVID-19 vaccines would help
normalize the travel industry.

    The most significant individual detractors during the year included Carnival and Airbus. Shares
in Carnival and Airbus were adversely impacted by the pandemic’s impact on global travel. Both Carnival and Airbus were sold from the portfolio during the year.

 

    On October 15, 2020, the Fund’s investment strategies and portfolio advisor were changed.
The Fund will continue to provide diversified exposure to global equities. Both the previous and current investment teams focused on bottom up stock selection. However, investors should expect the new investment team to run a more concentrated,
lower-turnover portfolio, with a longer investment horizon. The team seeks to own high quality companies that possess sustainable competitive advantage and that trade at a significant margin of safety to their assessment of intrinsic value. The
performance of this Fund for the period prior to this date would have been different had the current investment strategies and portfolio advisor been in place during that period. The new portfolio management team did sell a significant percentage of
holdings after this date to re-position the portfolio and this transition is substantially completed.

    Thank you for your investment in Invesco Global Core Equity Fund.

 

 

Portfolio manager(s):

Sunny Basi

Michael Hatcher (Lead)

Marina Pomerantz

The views and opinions expressed in management’s discussion
of Fund performance are those of Invesco Advisers, Inc. These views and opinions are subject to change at any time based on factors such as market and economic conditions. These views and opinions may not be relied upon as investment advice or
recommendations, or as an offer for a particular security. The information is not a complete analysis of every aspect of any market, country, industry, security or the Fund. Statements of fact are from sources considered reliable, but Invesco
Advisers, Inc. makes no representation or warranty as to their completeness or accuracy. Although historical performance is no guarantee of future results, these insights may help you understand our investment management philosophy.

See important Fund and, if applicable, index disclosures later in this report.

 

 

2                                   Invesco Global
Core Equity Fund

 

Your
Fund’s Long-Term Performance

Results of a $10,000 Investment — Oldest Share Class(es)

Fund and index data from 12/31/10

 

LOGO

 

1

Source: RIMES Technologies Corp.

 

Past performance cannot guarantee future results.

    The data shown in the chart include reinvested distributions, applicable sales charges and Fund expenses including management

fees. Index results include reinvested dividends, but they do not reflect sales charges. Performance of the peer group, if
applicable, reflects fund expenses and management fees;

performance of a market index does not. Performance shown in the chart does not reflect deduction of taxes a shareholder
would pay on Fund distributions or sale of Fund shares.

 

 

3                                   Invesco Global
Core Equity Fund

 

Average Annual Total
Returns

 

As of 12/31/20, including maximum applicable sales charges

 

Class A Shares

        

Inception (12/29/00)

     5.53

10 Years

     5.97  

5 Years

     8.13  

1 Year

     6.44  

Class C Shares

        

Inception (12/29/00)

     5.54

10 Years

     5.93  

5 Years

     8.55  

1 Year

     10.83  

Class R Shares

        

10 Years

     6.30

5 Years

     9.10  

1 Year

     12.35  

Class Y Shares

        

Inception (10/3/08)

     7.03

10 Years

     6.83  

5 Years

     9.65  

1 Year

     12.96  

Class R5 Shares

        

Inception (10/25/05)

     5.47

10 Years

     6.91  

5 Years

     9.66  

1 Year

     12.89  

Class R6 Shares

        

10 Years

     6.68

5 Years

     9.59  

1 Year

     12.95  

Class R shares incepted on May 23, 2011. Performance shown prior to that date is that of Class A shares at net asset
value and includes the 12b-1 fees applicable to Class A shares.

    Class R6 shares
incepted on April 4, 2017. Performance shown prior to that date is that of Class A shares at net asset value and includes the 12b-1 fees applicable to Class A shares.

    The performance data quoted represent past performance and cannot guarantee future results; current performance may be lower or higher. Please
visit invesco.com/performance for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless
otherwise stated. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell
shares.

    Class A share performance reflects the maximum 5.50% sales charge, and Class C share performance reflects the
applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class C shares is 1% for the first year after purchase. Class R, Class Y, Class R5 and Class R6 shares do not have a front-end

sales charge or a CDSC; therefore, performance is at net asset value.

    The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.

    Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses
currently or in the past, returns would have been lower. See current prospectus for more information.

 

 

4                                   Invesco Global
Core Equity Fund

 

 

 

Supplemental Information

Invesco Global Core Equity Fund’s
investment objective is long-term growth of capital.

Unless otherwise stated, information presented in this report is as of December 31, 2020, and is based on total net
assets.

Unless otherwise noted, all data provided by Invesco.

To access your Fund’s reports/prospectus, visit invesco.com/fundreports.

 

 

About
indexes used in this report

The MSCI World IndexSMis an unmanaged index considered
representative of stocks of developed countries. The index is computed using the net return, which withholds applicable taxes for non-resident investors.

The Lipper Global Large-Cap Core Funds Index is an unmanaged index
considered representative of global large-cap core funds tracked by Lipper.

The Fund is not managed to track the performance of any particular index, including the index(es) described here, and
consequently, the performance of the Fund may deviate significantly from the performance of the index(es).

A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends,
and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

 

 

 

 

This report must be accompanied or preceded by a currently effective Fund prospectus, which contains more complete information, including sales charges and expenses.
Investors should read it carefully before investing.
 

 

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE  

 

5                                   Invesco Global
Core Equity Fund

Fund Information

Portfolio
Composition

 

By sector    % of total net assets

Information Technology

       31.02 %

Consumer Staples

       15.28

Consumer Discretionary

       14.74

Industrials

       13.24

Communication Services

       7.16

Health Care

       5.30

Financials

       5.04

Real Estate

       3.56

Energy

       2.00

Money Market Funds Plus Other Assets Less Liabilities

       2.66

Top 10 Equity Holdings*

 

            % of total net assets

  1.

   Microsoft Corp.        6.15 %

  2.

   Visa, Inc., Class A        4.94

  3.

   SAP SE        4.90

  4.

   KION Group AG        4.86

  5.

   Analog Devices, Inc.        4.12

  6.

   Accenture PLC, Class A        3.74

  7.

   Alphabet, Inc., Class A        3.70

  8.

   Alibaba Group Holding Ltd., ADR        3.66

  9.

   Equinix, Inc.        3.56

10.

   British American Tobacco PLC        3.49

The Fund’s holdings are subject to change, and there is no assurance that the Fund will continue to hold any particular security.

*

Excluding money market fund holdings, if any.

Data presented here are as of December 31, 2020.

 

 

6                           
        Invesco Global Core Equity Fund


Schedule of Investments

December 31, 2020

 

      Shares      Value

Common Stocks & Other Equity Interests–97.34%

Belgium–2.56%

     

Anheuser-Busch InBev S.A./N.V., ADR(a)

     268,933      $     18,801,106

Canada–3.07%

     

Canadian Natural Resources Ltd.

     610,295      14,666,450

Constellation Software, Inc.

     6,069      7,880,880

Topicus.com,
Inc.(b)(c)

     11,288      42,672
              22,590,002

China–6.39%

     

Alibaba Group Holding Ltd.,
ADR(b)

     115,673      26,920,577

Kweichow Moutai Co. Ltd., A Shares

     65,606      20,048,478
              46,969,055

France–2.44%

     

Bureau Veritas S.A.

     675,200      17,959,664

Germany–12.70%

     

Henkel AG & Co. KGaA

     224,667      21,626,979

KION Group AG(a)

     410,279      35,670,195

SAP SE

     273,857      35,987,147
              93,284,321

Hong Kong–3.07%

     

AIA Group Ltd.

     1,832,200      22,568,430

Switzerland–7.88%

     

Cie Financiere Richemont S.A.

     212,060      19,162,233

Cie Financiere Richemont S.A., Wts., expiring 11/23/2022(b)

     432,956      112,482

Roche Holding AG

     51,808      18,076,219

Temenos AG

     147,151      20,532,730
              57,883,664

United Kingdom–7.05%

     

British American Tobacco PLC

     689,658      25,651,787

Imperial Brands PLC

     368,674      7,746,345

Unilever PLC

     304,225      18,421,153
              51,819,285

United States–52.18%

     

Accenture PLC, Class A

     105,151      27,466,493

Alphabet, Inc., Class A(b)

     15,514      27,190,457
     Shares      Value  

 

 

United States–(continued)

     

Alphabet, Inc., Class C(b)

     3,676      $ 6,439,911  

 

 

Analog Devices, Inc.

     204,669        30,235,751  

 

 

Aon PLC, Class A

     68,561        14,484,882  

 

 

Aptiv PLC

     182,039        23,717,861  

 

 

AutoZone, Inc.(b)

     18,628        22,082,376  

 

 

Becton, Dickinson and Co.

     83,485        20,889,617  

 

 

BorgWarner, Inc.

     422,361        16,320,029  

 

 

Equinix, Inc.

     36,628        26,158,985  

 

 

Flowserve Corp.

     565,191        20,827,288  

 

 

Honeywell International, Inc.

     107,481        22,861,209  

 

 

Microsoft Corp.

     203,218        45,199,748  

 

 

Sabre Corp.

     2,019,541        24,274,883  

 

 

Visa, Inc., Class A

     165,921        36,291,900  

 

 

Walt Disney Co. (The)(b)

     104,792        18,986,215  

 

 
        383,427,605  

 

 

Total Common Stocks & Other Equity Interests
(Cost $633,115,486)

 

     715,303,132  

 

 
Money Market Funds–2.69%      

Invesco Government & Agency Portfolio, Institutional Class, 0.03%(d)(e)

     11,831,531        11,831,531  

 

 

Invesco Treasury Portfolio, Institutional Class, 0.01%(d)(e)

     7,887,687        7,887,687  

 

 

Total Money Market Funds
(Cost $19,719,218)

 

     19,719,218  

 

 

TOTAL INVESTMENTS IN SECURITIES
(excluding Investments purchased with cash collateral from securities on loan)-100.03%
(Cost $652,834,704)

        735,022,350  

 

 
Investments Purchased with Cash Collateral from Securities on Loan

 

Money Market Funds–1.04%

     

Invesco Private Government Fund, 0.02%(d)(e)(f)

     3,062,118        3,062,118  

 

 

Invesco Private Prime Fund, 0.12%(d)(e)(f)

     4,591,800        4,593,178  

 

 

Total Investments Purchased with Cash Collateral from Securities on Loan
(Cost
$7,655,296)

 

     7,655,296  

 

 

TOTAL INVESTMENTS IN
SECURITIES–101.07%
(Cost $660,490,000)

 

     742,677,646  

 

 

OTHER ASSETS LESS LIABILITIES–(1.07)%

        (7,851,739

 

 

NET ASSETS–100.00%

      $ 734,825,907  

 

 

 

 

Investment Abbreviations:

ADR – American Depositary Receipt

Wts. – Warrants

 

See accompanying Notes to Financial Statements which are an integral part of the financial
statements.

 

7                                   Invesco Global
Core Equity Fund

Notes to Schedule of Investments:

 

(a) 

All or a portion of this security was out on loan at December 31, 2020.

(b) 

Non-income producing security.

(c) 

Security valued using significant unobservable inputs (Level 3). See Note 3.

(d) 

Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an
investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended December 31, 2020.

 

     Value
December 31, 2019
 

Purchases

at Cost

 

Proceeds

from Sales

  Change in
Unrealized
Appreciation
  Realized
Gain
  Value
December 31, 2020
  Dividend Income
Investments in Affiliated Money Market Funds:                                                                      

Invesco Government & Agency Portfolio, Institutional
Class

      $39,050       $142,410,992       $(130,618,511)         $-         $-         $11,831,531       $21,648

Invesco Treasury Portfolio, Institutional Class

      26,034           94,940,660       (87,079,007)                         7,887,687       13,717
Investments Purchased with Cash Collateral from Securities on Loan:                                                                      

Invesco Private Government Fund

                26,986,934       (23,924,816)                         3,062,118       286 *

Invesco Private Prime Fund

                38,063,999       (33,470,821)                         4,593,178       1,918 *

Total

      $65,084       $302,402,585       $(275,093,155)         $-         $-         $27,374,514       $37,569

 

  *

Represents the income earned on the investment of cash collateral, which is included in securities lending income on the
Statement of Operations. Does not include rebates and fees paid to lending agent or premiums received from borrowers, if any.

(e) 

The rate shown is the 7-day SEC standardized yield as of December 31, 2020.

(f) 

The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending
transactions upon the borrower’s return of the securities loaned. See Note 1I.

See accompanying Notes to Financial Statements which are an
integral part of the financial statements.

 

8                                   Invesco Global
Core Equity Fund

Statement of Assets and Liabilities

December 31, 2020

 

Assets:

Investments in securities, at value
(Cost $633,115,486)*

   $715,303,132

Investments in affiliated money market funds, at value (Cost
$27,374,514)

   27,374,514

Foreign currencies, at value (Cost $253,050)

   254,143

Receivable for:

  

Fund shares sold

   151,185

Dividends

   1,023,392

Investment for trustee deferred compensation and retirement
plans

   232,523

Other assets

   50,146

Total assets

   744,389,035

Liabilities:

Payable for:

  

Fund shares reacquired

   494,296

Amount due custodian

   476,311

Collateral upon return of securities loaned

   7,655,296

Accrued fees to affiliates

   463,704

Accrued other operating expenses

   180,352

Trustee deferred compensation and retirement plans

   293,169

Total liabilities

   9,563,128

Net assets applicable to shares outstanding

   $734,825,907

Net assets consist of:

Shares of beneficial interest

   $642,727,322

Distributable earnings

   92,098,585
     $734,825,907

 

Net Assets:

 

Class A

   $ 686,611,723  

Class C

   $ 6,307,447  

Class R

   $ 1,845,356  

Class Y

   $ 32,476,466  

Class R5

   $ 1,003,963  

Class R6

   $ 6,580,952  

Shares outstanding, no par value, with an unlimited number of shares authorized:

 

Class A

     47,006,400  

Class C

     461,303  

Class R

     126,549  

Class Y

     2,218,890  

Class R5

     67,376  

Class R6

     441,324  

Class A:

  

Net asset value per share

   $ 14.61  

Maximum offering price per share

  

(Net asset value of $14.61 ÷ 94.50%)

   $ 15.46  

 

 

Class C:

  

Net asset value and offering price per share

   $ 13.67  

 

 

Class R:

  

Net asset value and offering price per share

   $ 14.58  

 

 

Class Y:

  

Net asset value and offering price per share

   $ 14.64  

 

 

Class R5:

  

Net asset value and offering price per share

   $ 14.90  

 

 

Class R6:

  

Net asset value and offering price per share

   $ 14.91  

 

 

 

*   At December 31, 2020, securities with an aggregate value of $8,315,778
were on loan to brokers.

 

 

See accompanying Notes to Financial Statements
which are an integral part of the financial statements.

 

9                                   Invesco Global
Core Equity Fund

Statement of Operations

For
the year ended December 31, 2020

 

Investment income:

  

Dividends (net of foreign withholding taxes of $665,443)

   $ 12,270,144  

 

 

Non-cash dividend income

     2,096,605  

 

 

Dividends from affiliated money market funds (includes securities lending income of $3,482)

     38,847  

 

 

Total investment income

     14,405,596  

 

 

Expenses:

  

Advisory fees

     5,260,023  

 

 

Administrative services fees

     96,167  

 

 

Custodian fees

     58,709  

 

 

Distribution fees:

  

Class A

     1,560,460  

 

 

Class C

     99,218  

 

 

Class R

     8,549  

 

 

Transfer agent fees – A, C, R and Y

     1,167,542  

 

 

Transfer agent fees – R5

     796  

 

 

Transfer agent fees – R6

     2,561  

 

 

Trustees’ and officers’ fees and benefits

     29,640  

 

 

Registration and filing fees

     73,289  

 

 

Reports to shareholders

     123,024  

 

 

Professional services fees

     72,391  

 

 

Other

     30,018  

 

 

Total expenses

     8,582,387  

 

 

Less: Fees waived, expenses reimbursed and/or expense offset arrangement(s)

     (407,227

 

 

Net expenses

     8,175,160  

 

 

Net investment income

     6,230,436  

 

 

Realized and unrealized gain (loss) from:

  

Net realized gain (loss) from:

  

Unaffiliated investment securities (net of foreign taxes of $ 71,413)

     138,112,965  

 

 

Foreign currencies

     (13,209

 

 

Forward foreign currency contracts

     (160,941

 

 
     137,938,815  

 

 

Change in net unrealized appreciation (depreciation) of:

  

Unaffiliated investment securities (net of foreign taxes of $ 206,935)

     (69,155,202

 

 

Foreign currencies

     6,542  

 

 

Forward foreign currency contracts

     (76,775

 

 
     (69,225,435

 

 

Net realized and unrealized gain

     68,713,380  

 

 

Net increase in net assets resulting from operations

   $ 74,943,816  

 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

10                           
        Invesco Global Core Equity Fund


Statement of Changes in Net Assets

For the years ended December 31, 2020 and 2019

 

     2020     2019  

 

 

Operations:

    

Net investment income

   $ 6,230,436     $ 9,973,332  

 

 

Net realized gain (loss)

     137,938,815       (4,265,506

 

 

Change in net unrealized appreciation (depreciation)

     (69,225,435     157,807,993  

 

 

Net increase in net assets resulting from operations

     74,943,816       163,515,819  

 

 

Distributions to shareholders from distributable earnings:

    

Class A

     (117,664,978     (8,541,048

 

 

Class C

     (1,545,108     (31,772

 

 

Class R

     (306,372     (16,933

 

 

Class Y

     (5,609,250     (500,296

 

 

Class R5

     (162,207     (11,022

 

 

Class R6

     (1,102,071     (104,683

 

 

Total distributions from distributable earnings

     (126,389,986     (9,205,754

 

 

Share transactions–net:

    

Class A

     23,792,159       (34,843,815

 

 

Class C

     (6,742,650     (49,295,662

 

 

Class R

     36,665       152,342  

 

 

Class Y

     551,422       (4,868,371

 

 

Class R5

     267,305       93,781  

 

 

Class R6

     (102,020     (1,145,729

 

 

Net increase (decrease) in net assets resulting from share transactions

     17,802,881       (89,907,454

 

 

Net increase (decrease) in net assets

     (33,643,289     64,402,611  

 

 

Net assets:

    

Beginning of year

     768,469,196       704,066,585  

 

 

End of year

   $ 734,825,907     $ 768,469,196  

 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

11                           
        Invesco Global Core Equity Fund


Financial Highlights

    

 

The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.

 

     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 12/31/20

    $ 15.66     $ 0.14     $ 1.78     $ 1.92     $ (0.03 )     $ (2.94 )     $ (2.97 )     $ 14.61       12.63 %     $ 686,612       1.22 %(d)       1.28 %(d)       0.92 %(d)       126 %

Year ended 12/31/19

      12.73       0.19       2.93       3.12       (0.19 )       –       (0.19 )       15.66       24.53       709,829       1.22       1.28       1.33       24

Year ended 12/31/18

      16.20       0.15       (2.53 )       (2.38 )       (0.17 )       (0.92 )       (1.09 )       12.73       (14.90 )       605,748       1.22       1.29       0.97       30

Year ended 12/31/17

      13.89       0.12       3.04       3.16       (0.15 )       (0.70 )       (0.85 )       16.20       22.83       798,219       1.22       1.34       0.80       64

Year ended 12/31/16

      13.19       0.13       0.76       0.89       (0.14 )       (0.05 )       (0.19 )       13.89       6.70       749,810       1.30       1.30       0.95 (e)        39

Class C

 

       

Year ended 12/31/20

      14.94       0.02       1.68       1.70       (0.03 )       (2.94 )       (2.97 )       13.67       11.75       6,307       1.97 (d)        2.03 (d)        0.17 (d)        126

Year ended 12/31/19

      12.10       0.08       2.79       2.87       (0.03 )       –       (0.03 )       14.94       23.74       14,290       1.97       2.03       0.58       24

Year ended 12/31/18

      15.44       0.03       (2.40 )       (2.37 )       (0.05 )       (0.92 )       (0.97 )       12.10       (15.58 )       57,163       1.97       2.04       0.22       30

Year ended 12/31/17

      13.26       0.01       2.90       2.91       (0.03 )       (0.70 )       (0.73 )       15.44       21.97       81,668       1.97       2.09       0.05       64

Year ended 12/31/16

      12.60       0.03       0.71       0.74       (0.03 )       (0.05 )       (0.08 )       13.26       5.87       83,864       2.05       2.05       0.20 (e)        39

Class R

 

       

Year ended 12/31/20

      15.68       0.10       1.77       1.87       (0.03 )       (2.94 )       (2.97 )       14.58       12.28       1,845       1.47 (d)        1.53 (d)        0.67 (d)        126

Year ended 12/31/19

      12.72       0.16       2.94       3.10       (0.14 )       –       (0.14 )       15.68       24.38       1,963       1.47       1.53       1.08       24

Year ended 12/31/18

      16.19       0.11       (2.53 )       (2.42 )       (0.13 )       (0.92 )       (1.05 )       12.72       (15.16 )       1,464       1.47       1.54       0.72       30

Year ended 12/31/17

      13.88       0.09       3.03       3.12       (0.11 )       (0.70 )       (0.81 )       16.19       22.54       1,689       1.47       1.59       0.55       64

Year ended 12/31/16

      13.18       0.09       0.76       0.85       (0.10 )       (0.05 )       (0.15 )       13.88       6.45       1,054       1.55       1.55       0.70 (e)        39

Class Y

 

       

Year ended 12/31/20

      15.64       0.17       1.80       1.97       (0.03 )       (2.94 )       (2.97 )       14.64       12.96       32,476       0.97 (d)        1.03 (d)        1.17 (d)        126

Year ended 12/31/19

      12.71       0.23       2.93       3.16       (0.23 )       –       (0.23 )       15.64       24.87       34,547       0.97       1.03       1.58       24

Year ended 12/31/18

      16.19       0.19       (2.54 )       (2.35 )       (0.21 )       (0.92 )       (1.13 )       12.71       (14.72 )       32,382       0.97       1.04       1.22       30

Year ended 12/31/17

      13.88       0.16       3.04       3.20       (0.19 )       (0.70 )       (0.89 )       16.19       23.14       49,238       0.97       1.09       1.05       64

Year ended 12/31/16

      13.18       0.16       0.76       0.92       (0.17 )       (0.05 )       (0.22 )       13.88       6.98       25,996       1.05       1.05       1.20 (e)        39

Class R5

 

       

Year ended 12/31/20

      15.88       0.18       1.81       1.99       (0.03 )       (2.94 )       (2.97 )       14.90       12.89       1,004       0.95 (d)        0.95 (d)        1.19 (d)        126

Year ended 12/31/19

      12.90       0.24       2.97       3.21       (0.23 )       –       (0.23 )       15.88       24.92       755       0.95       0.95       1.60       24

Year ended 12/31/18

      16.41       0.20       (2.58 )       (2.38 )       (0.21 )       (0.92 )       (1.13 )       12.90       (14.70 )       533       0.97       0.97       1.22       30

Year ended 12/31/17

      14.06       0.16       3.08       3.24       (0.19 )       (0.70 )       (0.89 )       16.41       23.14       416       0.97       0.99       1.05       64

Year ended 12/31/16

      13.35       0.18       0.77       0.95       (0.19 )       (0.05 )       (0.24 )       14.06       7.07       401       0.94       0.94       1.31 (e)        39

Class R6

 

       

Year ended 12/31/20

      15.88       0.19       1.81       2.00       (0.03 )       (2.94 )       (2.97 )       14.91       12.95       6,581       0.89 (d)        0.89 (d)        1.25 (d)        126

Year ended 12/31/19

      12.90       0.24       2.98       3.22       (0.24 )       –       (0.24 )       15.88       24.98       7,085       0.90       0.90       1.65       24

Year ended 12/31/18

      16.41       0.20       (2.57 )       (2.37 )       (0.22 )       (0.92 )       (1.14 )       12.90       (14.64 )       6,776       0.91       0.91       1.28       30

Period ended
12/31/17(f)

      14.89       0.12       2.29       2.41       (0.19 )       (0.70 )       (0.89 )       16.41       16.27       11       0.97 (g)        1.01 (g)        1.05 (g)        64

 

(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)

Ratios are based on average daily net assets (000’s omitted) of $624,184, $9,922, $1,710, $29,626, $796 and $6,134
for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively.

(e)

Amount includes the effect of a one-time reimbursement of custody expenses. The
ratio of net investment income excluding these payments would have been 0.84%, 0.09%, 0.59%, 1.09% and 1.20% for Class A, Class C, Class R, Class Y and Class R5 shares, respectively.

(f)

Commencement date of April 4, 2017.

See
accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

12                                   Invesco Global
Core Equity Fund

Notes to Financial Statements

December 31, 2020

NOTE 1–Significant Accounting Policies

Invesco Global Core Equity Fund (the “Fund”) is a series portfolio of AIM Funds Group (Invesco Funds Group) (the “Trust”). The Trust is a Delaware
statutory trust registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company authorized to issue an unlimited number of shares
of beneficial interest. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class.

The Fund’s investment objective is long-term growth of capital.

The Fund currently consists of six different classes of shares: Class A, Class C, Class R, Class Y, Class R5 and Class R6.
Class Y shares are available only to certain investors. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met. Under certain circumstances, load waived shares
may be subject to contingent deferred sales charges (“CDSC”). Class C shares are sold with a CDSC. Class R, Class Y, Class R5 and Class R6 shares are sold at net asset value. Class C shares held for ten years
after purchase are eligible for automatic conversion into Class A shares of the same Fund (the “Conversion Feature”). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month following
the tenth anniversary after a purchase of Class C shares. Effective November 30, 2020, the automatic conversion pursuant to the Conversion Feature changed from ten years to eight years. The first conversion of Class C shares to
Class A shares occurred at the end of December 2020 for all Class C shares that were held for more than eight years as of November 30, 2020.

The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting
Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.

The following is a summary of the
significant accounting policies followed by the Fund in the preparation of its financial statements.

A.

Security Valuations – Securities, including restricted securities, are valued according to the following
policy.

A security listed or traded on an exchange (except convertible securities) is valued at its last sales
price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing
bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such
securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean
between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net
asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

Investments in open-end and closed-end registered
investment companies that do not trade on an exchange are valued at the end-of-day net asset value per share. Investments in
open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the
customary trading session on the exchange where the security is principally traded.

Debt obligations (including convertible
securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service 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 specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality,
type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations 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. Debt obligations are subject to interest rate and credit risks. In addition, all debt
obligations involve some risk of default with respect to interest and/or principal payments.

Foreign securities’ (including
foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. 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 the investment adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price
of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing
service 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 value as of the close of the NYSE. Foreign securities’ prices meeting the
approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining
adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential
for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.

Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent
sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.

Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith
by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in
the course of making a good faith determination of a security’s fair value.

The Fund may invest in securities that are subject
to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates
depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.

Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the
issuer’s assets, general market conditions which 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, acts of terrorism or adverse investor sentiment generally and market liquidity. Because of the
inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

B.

Securities Transactions and Investment Income – Securities transactions are accounted for on a trade date
basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date. Dividend income (net of
withholding tax, if any) is recorded on the ex-dividend date.

The Fund may
periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements.Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no
longer held and as unrealized gain (loss) for investments still held.

 

13                                   Invesco Global
Core Equity Fund

Brokerage commissions and mark ups are considered transaction costs and are recorded as an
increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the
Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset
value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in
Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.

The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each
class.

C.

Country Determination – For the purposes of making investment selection decisions and presentation in the
Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where
the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that
may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country
of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.

D.

Distributions – Distributions from net investment income and net realized capital gain, if any, are generally
declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes.

E.

Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal
Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be
subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.

The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management
has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably
possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.

The Fund files tax returns
in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.

F.

Expenses – Fees provided for under the Rule 12b-1 plan of a particular
class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6 are allocated to each share class based on
relative net assets. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses
relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets.

G.

Accounting Estimates – The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts
of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or
transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.

H.

Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other
agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing
agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of
material loss as a result of such indemnification claims is considered remote.

I.

Securities Lending – The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral
will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated money market funds
and is shown as such on the Schedule of Investments. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the
end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain
benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were
to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower
will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the
loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the
lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending
transactions, which are net of compensation to counterparties, are included in Dividends from affiliated money market funds on the Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the
Statement of Assets and Liabilities.

J.

Foreign Currency Translations – Foreign currency is valued at the close of the NYSE based on quotations posted
by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of
foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of
operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices
on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from
(1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes
recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in
securities at fiscal period end, resulting from changes in exchange rates.

The Fund may invest in foreign
securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign
markets in which the Fund invests and are shown in the Statement of Operations.

 

14                                   Invesco Global
Core Equity Fund

K.

Forward Foreign Currency Contracts – The Fund may engage in foreign currency transactions either on a spot
(i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk.

The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency
in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical settlement of the two currencies, but instead are settled by a single cash
payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards). The Fund will set aside liquid
assets in an amount equal to the daily mark-to-market obligation for forward foreign currency contracts.

A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific
currency for an agreed-upon price at a future date. The use of forward foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in
advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts
are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the
Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.

 

L.

Other Risks – Active trading of portfolio securities may result in added expenses, a lower return and
increased tax liability.

NOTE 2–Advisory Fees and Other Fees Paid to Affiliates

The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the
investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:

 

Average Daily Net Assets    Rate    

 

First $ 250 million

   0.800%

 

Next $250 million

   0.780%

 

Next $500 million

   0.760%

 

Next $1.5 billion

   0.740%

 

Next $2.5 billion

   0.720%

 

Next $2.5 billion

   0.700%

 

Next $2.5 billion

   0.680%

 

Over $10 billion

   0.660%

For the year ended December 31, 2020, the effective advisory fee rate incurred by the Fund was 0.78%.

Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management
Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment
management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).

The Adviser has contractually agreed, through at least April 30, 2022, to waive advisory fees and/or reimburse expenses of all shares to the extent
necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares to
1.22%, 1.97%, 1.47%, 0.97%, 0.97% and 0.97%, respectively, of the Fund’s average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following
expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short
sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless
Invesco continues the fee waiver agreement, it will terminate on April 30, 2022. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the
Board of Trustees.

Further, the Adviser has contractually agreed, through at least June 30, 2022, to waive the advisory fee payable by the Fund
in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.

For the year ended December 31, 2020, the Adviser waived advisory fees of $10,394 and reimbursed class level expenses of $370,220, $5,805, $1,009 and
$17,479, of Class A, Class C, Class R and Class Y shares, respectively.

The Trust has entered into a master administrative
services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the year ended December 31, 2020, expenses incurred under the
agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”)
serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.

The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has
agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus
account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting
services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the year ended December 31, 2020, expenses incurred under the agreement are shown in the Statement of Operations as
Transfer agent fees.

The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as
the distributor for the Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with
respect to the Fund’s Class A, Class C and Class R shares (collectively, the “Plans”). The Fund, pursuant to the Plans, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of
Class A shares, 1.00% of the average daily net assets of Class C shares and 0.50% of the average daily net assets of Class R shares. The fees are accrued daily and paid monthly. Of the Plan payments, up to 0.25% of the average daily
net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales
charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the year ended December 31,
2020, expenses incurred under the Plans are shown in the Statement of Operations as Distribution fees.

Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of
the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to
remittance to the shareholder. During the year ended December 31, 2020, IDI advised the Fund that IDI retained $15,784 in front-end sales commissions from the sale of Class A shares and $375 and $442
from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.

 

15                                   Invesco Global
Core Equity Fund

For the year ended December 31, 2020, the Fund incurred $3,629 in brokerage commissions with Invesco
Capital Markets, Inc., an affiliate of the Adviser and IDI, for portfolio transactions executed on behalf of the Fund.

Certain officers and trustees
of the Trust are officers and directors of the Adviser, IIS and/or IDI.

NOTE 3—Additional Valuation Information

GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the
measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets
(Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three
levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:

Level 1 –

   Prices are determined using quoted prices in an active market for identical assets.

Level 2 –

   Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates,
prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.

Level 3 –

   Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the
period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available
information.

The following is a summary of the tiered valuation input levels, as of December 31, 2020. The level assigned to the
securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from
the value received upon actual sale of those investments.

 

     Level 1      Level 2      Level 3      Total      

 

Investments in Securities

Belgium

   $  18,801,106      $ –      $ –      $ 18,801,106

 

Canada

     22,547,330        –        42,672      22,590,002

 

China

     26,920,577        20,048,478        –      46,969,055

 

France

     –        17,959,664        –      17,959,664

 

Germany

     –        93,284,321        –      93,284,321

 

Hong Kong

     –        22,568,430        –      22,568,430

 

Switzerland

     112,482        57,771,182        –      57,883,664

 

United Kingdom

     18,421,153        33,398,132        –      51,819,285

 

United States

     383,427,605        –        –      383,427,605

 

Money Market Funds

     19,719,218        7,655,296        –      27,374,514

    Total Investments

   $ 489,949,471