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Annual Report to Shareholders December 31, 2019

Invesco V.I. American Franchise Fund

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, the insurancecompany that offers your variable annuity or variable life insurance contract may no longer send you paper copies of the Fund’sshareholder reports by mail, unless you specifically request paper copies of the reports from the insurance company or your financialintermediary. Instead of delivering paper copies of the report, the insurance company may choose to make the reports available on awebsite, and will notify you by mail each time a report is posted and provide you with a website link to access the report. Instructions forrequesting paper copies will be provided by your insurance company.

If the insurance company offers electronic delivery, you may elect to receive shareholder reports and other communications aboutthe Fund electronically by following the instructions provided by the insurance company or by contacting your financial intermediary. Ifyou already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take anyaction.

You may elect to receive all future reports in paper free of charge from the insurance company. You can inform the insurancecompany or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by following theinstructions provided by the insurance company or by contacting your financial intermediary. Your election to receive reports in paperwill apply to all portfolio companies available under your contract with the insurance company.

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 lists appear in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists withthe Securities and Exchange Commission (SEC) as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT filings areavailable on the SEC website, sec.gov. The SEC file numbers for the Fund are 811-07452 and 033-57340. The Fund’s most recentportfolio holdings, as filed on Form N-PORT, have also been made available to insurance companies issuing variable annuity contractsand variable life insurance policies (“variable products”) that invest in the Fund.

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities isavailable without charge, upon request, from our Client Services department at 800 959 4246 or at invesco.com/proxyguidelines. Theinformation 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 endedJune 30 is available at invesco.com/proxysearch. The 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 doesnot sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds andinstitutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.

This report must be accompanied or preceded by a currently effective Fund prospectus and variable product prospectus, whichcontain more complete information, including sales charges and expenses. Investors should read each carefully beforeinvesting.

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Invesco Distributors, Inc. VK-VIAMFR-AR-1

Management’s Discussion of Fund Performance

Market conditions and your FundEquity markets rallied in the first quarterof 2019, fueled by optimism about a po-tential US-China trade deal and indicationthat the US Federal Reserve (the Fed)would not raise interest rates in 2019, asurprising shift in monetary policy. TheFed’s more accommodative stance pro-vided a supportive environment for equi-ties and fixed income, even as US eco-nomic data were mixed and overseasgrowth appeared to be slowing. Againstthis backdrop, the S&P 500 Index postedits best first quarter returns since 1998.

Although the S&P 500 Index postedmodest gains for the second quarter of2019, the US stock market experiencedincreased volatility. After four consecu-tive months of rising stock markets, themarket sold off in May 2019, along withbond yields and oil prices, as investorsweighed the impact of the lingering tradewar between the US and China, as wellas potential tariffs imposed on Mexico. Inaddition, economic data showed a slow-ing domestic and global economy.

Key issues that concerned investors inthe second quarter of 2019 carried overinto the third quarter. The US-Chinatrade conflict worried investors and

stifled business investment, even as theFed cut interest rates by 0.25% in Julyand again in September 2019.1 This en-vironment, combined with evidence ofslowing global economic growth, fueledmarket volatility in August 2019. The USTreasury yield curve inverted severaltimes, increasing fears of a possible USrecession. As a result, August saw in-creased risk aversion, with investorscrowding into asset classes perceived assafe havens, such as US Treasuries andgold. However, the Fed’s accommodativetone provided some support for risk as-sets.

Macroeconomic issues that concernedinvestors in the third quarter of 2019mostly abated during the fourth quarter,providing the backdrop for strong equitymarket returns. Risk assets surgedhigher as a result of a delay in the Brexitagreement until January 2020, optimismthat phase one of a US-China trade dealwould be completed and better-than-expected third-quarter corporate earn-ings results. The US economy rose higherthan expected, at 2.1% during the thirdquarter of 2019.2 During its Octobermeeting, the Fed cut interest rates againby 0.25% based on business investmentand exports remaining weak.1 Investors

were also encouraged by a resilient USeconomy and corporate earnings, puttingthe US equity market on track for itslargest annual rise since 2013.

Given this landscape, the Fund pro-duced a strong, double-digit return andoutperformed its style-specific bench-mark during the year. Relative perfor-mance was primarily driven by stock se-lection in the financials, health care andconsumer staples sectors. Stock selec-tion in industrials and consumer discre-tionary was also beneficial to the Fund’srelative performance. Conversely, stockselection in and underweight exposure toinformation technology (IT), as well asoverweight exposure to energy detractedfrom the Fund’s relative performance.Ancillary cash also hurt the Fund’s rela-tive returns given strong stock marketperformance during the year.

Top individual contributors to theFund’s performance during the year in-cluded Facebook, Microsoft and Ama-zon.com. Social media giant Facebookreported strong earnings results duringthe year, showcasing an increase in thenumber of users worldwide, as well asincreased revenue. In our view, increas-ing monetization for areas of Facebook,such as “Stories,” “Watch and “Messen-ger,” as well as improving margins fromslowing regulatory and privacy costswould be more impactful in the future.

During the year, Microsoft contributedto the Fund’s performance on an abso-lute basis. However, the Fund’s under-weight exposure to the company versusits style specific benchmark detractedfrom the Fund’s relative performance.Investor confidence in Microsoft grewfollowing strong growth in Azure, itscloud computing platform. Additionally,Microsoft was awarded the $10 billionJoint Enterprise Defense Infrastructure(JEDI) contract from the US Departmentof Defense, further strengthening itscompetitive position. We see opportunity

Portfolio CompositionBy sector % of total net assets

Information Technology 29.05%Consumer Discretionary 20.43Communication Services 18.79Health Care 13.53Industrials 7.55Financials 5.09Consumer Staples 3.95Other Sectors, Each Less than2% of Net Assets 1.76Money Market Funds Plus OtherAssets Less Liabilities (0.15)

Top 10 Equity Holdings*% of total net assets

1. Amazon.com, Inc. 7.47%2. Alphabet, Inc., Class A 5.823. Facebook, Inc., Class A 4.964. Microsoft Corp. 4.615. Lowe’s Cos., Inc. 3.786. Visa, Inc., Class A 3.787. Alibaba Group Holding Ltd.,

ADR 3.598. Apple, Inc. 3.469. Activision Blizzard, Inc. 2.96

10. salesforce.com, inc. 2.93

Total Net Assets $652.6 million

Total Number of Holdings* 78

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

*Excluding money market fund holdings, if any.

Data presented here are as of December 31,2019.

Performance summaryFor the year ended December 31, 2019, Series I shares of Invesco V.I. AmericanFranchise Fund (the Fund) outperformed the Russell 1000 Growth Index, theFund’s style-specific benchmark.

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

Fund vs. IndexesTotal returns, 12/31/18 to 12/31/19, excluding variable product issuer charges. Ifvariable product issuer charges were included, returns would be lower.Series I Shares 36.76%Series II Shares 36.43S&P 500 Index� (Broad Market Index) 31.49Russell 1000 Growth Index� (Style-Specific Index) 36.39Lipper VUF Large-Cap Growth Funds Index� (Peer Group Index) 32.69Source(s): �RIMES Technologies Corp.; �Lipper Inc.


for Microsoft to grow revenue and profitsas customers continue their digital trans-formation into the cloud.

The Fund’s overweight allocation toAmazon.com benefited its absolute per-formance and performance relative tothe style-specific benchmark during theyear. The company switched from two-day to one-day guaranteed shipping forits Prime subscription service andramped up its salesforce headcount forAmazon Web Services, its cloud comput-ing service. We viewed these changes asactions that will deepen Amazon.com’smoat as the leading e-commerce pro-vider and could drive better-than-expected revenue growth in the future.From a valuation standpoint, we viewedAmazon.com as attractive with upsidepotential from e-commerce penetrationof consumables, food and goods, as wellas automobiles.

Top individual detractors from theFund’s performance during the year in-cluded Lyft, Uber and IAA. Ridesharingcompanies Lyft and Uber both issuedinitial public offerings (IPOs) during theyear. The Fund did not participate inUber’s IPO and instead purchased sharesin the secondary trading market. Bothcompanies faced pressure in the secondhalf of the year due to regulatory head-winds related to the advancement of Cali-fornia Assembly Bill 5 (AB5), which isdesigned to extend employee classifica-tion status to rideshare drivers givingthem greater benefits, such as a pro-tected minimum wage, sick days andhealth insurance. Though AB5 is not yetin effect, and a settlement or appeal ofthe law could still materialize, the ad-vancement of the law has increased un-certainty for the ridesharing businessmodel in California. At the close of theyear, we believed that in the long term,the ridesharing industry has a large, un-derpenetrated market and potential tobenefit from autonomous driving. Thus,we continued to hold both Lyft and Uber.

IAA is a salvage auto auctioneer thatspun off from KAR Auction Services (nota Fund holding) in June 2019. While KARfocuses on selling to franchise and inde-pendent car dealerships, insurance com-panies make up IAA’s primary customerbase given its focus on damaged andlow-value vehicles. We sold the positionin IAA before the close of the year afterwe learned the company lost some busi-ness from its largest customer and wereconcerned it would lose more business toa competitor.

At year-end, based on our fundamen-tal, bottom-up research approach, the

Fund maintained overweight exposuresto the communication services, con-sumer discretionary and financials sec-tors relative to the style-specific bench-mark. Within the consumer discretionarysector, we are focused on technology-driven share shift capabilities, demo-graphics and changing behaviors. TheFund maintained a slight overweight posi-tion in the financials sector, primarilyfocusing on alternative asset managers,which we believed had potential for salesgrowth and profit expansion. The Fundmaintained underweight exposures to theIT, real estate, industrials and health caresectors relative to the style-specificbenchmark. Within IT, the Fund’s onlyoverweight position was in semiconduc-tors, given the current preference fortechnology-driven companies within thecommunication services and consumerdiscretionary sectors. Within health care,given potential for increased volatilityduring an election year, the Fund re-mained relatively underweight in the bio-pharmaceuticals industry. Finally, theFund’s positioning in the industrials sec-tor favored defensive, US-based, highlyconsolidated industries with pricingpower.

Central bank actions in 2019 sup-ported continued growth by keeping thecost of debt low. At the end of the year,the labor market remained healthy withemployment and wage gains, which isbeneficial to consumers. However, webelieve these are the late innings of theeconomic cycle and, therefore, we expectonly modest growth from here, as well ascontinued volatility spurred by trade andelection headlines. Prolonged cyclicalgrowth is likely to be scarce and we be-lieve the market will continue to favorcompanies that can produce growth andcompound earnings despite the economiccycle. We believe change is the fuel forgrowth. Thus, we are seeking to identify“share-takers,” companies that can gainmarket share through technology-enabled advantages in their businessmodels and from disruptive shifts in con-sumer behavior.

Thank you for your commitment toInvesco V.I. American Franchise Fundand for sharing our long-term investmenthorizon.

1 Source: US Federal Reserve

2 Source: Bureau of Economic Analysis

Portfolio managers:Ido Cohen

Erik Voss - Lead

The views and opinions expressed in management’sdiscussion of Fund performance are those ofInvesco Advisers, Inc. These views and opinions aresubject to change at any time based on factorssuch as market and economic conditions. Theseviews and opinions may not be relied upon asinvestment advice or recommendations, or as anoffer for a particular security. The information isnot a complete analysis of every aspect of anymarket, country, industry, security or the Fund.Statements of fact are from sources consideredreliable, but Invesco Advisers, Inc. makes norepresentation or warranty as to theircompleteness or accuracy. Although historicalperformance is no guarantee of future results,these insights may help you understand ourinvestment management philosophy.

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


Your Fund’s Long-Term Performance

Results of a $10,000 Investment — Oldest Share Class(es)Fund and index data from 12/31/09

0

10,000

20,000

30,000

40,000

$50,000

12/10 12/11 12/12 12/13 12/14 12/15 12/16 12/17 12/18 12/1912/31/09 12/19

$41,234 Russell 1000 Growth Index1

$36,903 Lipper VUF Large-Cap Growth Funds Index2

$35,666 S&P 500 Index1

$35,026 Invesco V.I. American Franchise Fund—Series I Shares

1 Source: RIMES Technologies Corp.2 Source: Lipper Inc.

Past performance cannot guarantee futureresults.

Average Annual Total ReturnsAs of 12/31/19

Series I SharesInception (7/3/95) 9.90%10 Years 13.35

5 Years 12.511 Year 36.76

Series II SharesInception (9/18/00) 3.08%10 Years 13.07

5 Years 12.221 Year 36.43

Effective June 1, 2010, Class I and Class IIshares of the predecessor fund, VanKampen Life Investment Trust CapitalGrowth Portfolio, advised by Van KampenAsset Management were reorganized intoSeries I and Series II shares, respectively,of Invesco Van Kampen V.I. Capital GrowthFund (renamed Invesco V.I. American Fran-chise Fund on April 29, 2013). Returnsshown above, prior to June 1, 2010, forSeries I and Series II shares are blendedreturns of the predecessor fund and In-vesco V.I. American Franchise Fund. Shareclass returns will differ from the predeces-sor fund because of different expenses.

The performance data quoted representpast performance and cannot guaranteefuture results; current performance may belower or higher. Please contact your vari-able product issuer or financial adviser forthe most recent month-end variable prod-uct performance. Performance figures re-flect Fund expenses, reinvested distribu-tions and changes in net asset value.

Performance figures do not reflect deduc-tion of taxes a shareholder would pay onFund distributions or sale of Fund shares.Investment return and principal value willfluctuate so that you may have a gain orloss when you sell shares.

The total annual Fund operating expenseratio set forth in the most recent Fund pro-spectus as of the date of this report forSeries I and Series II shares was 0.88% and1.13%, respectively. The expense ratiospresented above may vary from the ex-pense ratios presented in other sections ofthis report that are based on expenses in-curred during the period covered by thisreport.

Invesco V.I. American Franchise Fund, aseries portfolio of AIM Variable InsuranceFunds (Invesco Variable Insurance Funds),is currently offered through insurance com-panies issuing variable products. You can-not purchase shares of the Fund directly.Performance figures given represent theFund and are not intended to reflect actualvariable product values. They do not reflectsales charges, expenses and fees assessedin connection with a variable product. Salescharges, expenses and fees, which are de-termined by the variable product issuers,will vary and will lower the total return.

The most recent month-end performanceat the Fund level, excluding variable productcharges, is available at 800 451 4246. Asmentioned above, for the most recentmonth-end performance including variableproduct charges, please contact your vari-able product issuer or financial adviser.

Fund performance reflects any applicablefee waivers and/or expense reimburse-ments. Had the adviser not waived feesand/or reimbursed expenses currently or inthe past, returns would have been lower.See current prospectus for more informa-tion.


Invesco V.I. American Franchise Fund’s investment objective is to seek capital growth.� Unless otherwise stated, information presented in this report is as of December 31, 2019, 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 S&P 500® Index is an unman-

aged index considered representativeof the US stock market.

� The Russell 1000® Growth Index isan unmanaged index considered rep-resentative of large-cap growthstocks. The Russell 1000 GrowthIndex is a trademark/service mark ofthe Frank Russell Co. Russell® is atrademark of the Frank Russell Co.

� The Lipper VUF Large-Cap GrowthFunds Index is an unmanaged indexconsidered representative of large-capgrowth variable insurance underlyingfunds tracked by Lipper.

� The Fund is not managed to track theperformance of any particular index,including the index(es) described here,and consequently, the performance ofthe Fund may deviate significantlyfrom the performance of the in-dex(es).

� A direct investment cannot be madein an index. Unless otherwise indi-cated, index results include reinvesteddividends, and they do not reflectsales charges. Performance of thepeer group, if applicable, reflects fundexpenses; performance of a marketindex does not.

Other information� The returns shown in management’s

discussion of Fund performance arebased on net asset values calculatedfor shareholder transactions. Gener-ally accepted accounting principlesrequire adjustments to be made to thenet assets of the Fund at period endfor financial reporting purposes, andas such, the net asset values forshareholder transactions and the re-turns based on those net asset valuesmay differ from the net asset valuesand returns reported in the FinancialHighlights. Additionally, the returnsand net asset values shown through-out this report are at the Fund levelonly and do not include variable prod-uct issuer charges. If such chargeswere included, the total returns wouldbe lower.

� Industry classifications used in thisreport are generally according to theGlobal Industry Classification Stan-dard, which was developed by and is

the exclusive property and a servicemark of MSCI Inc. and Standard &Poor’s.


Schedule of Investments(a)

December 31, 2019

Shares Value

Common Stocks & Other Equity Interests–100.15%Aerospace & Defense–2.74%Airbus SE (France) 44,748 $ 6,565,324

Boeing Co. (The) 8,582 2,795,672

L3Harris Technologies, Inc. 27,996 5,539,569

Lockheed Martin Corp. 7,643 2,976,031

17,876,596

Agricultural & Farm Machinery–0.48%Deere & Co. 18,095 3,135,140

Application Software–5.21%Adobe, Inc.(b) 21,394 7,055,955

salesforce.com, inc.(b) 117,682 19,139,801

Splunk, Inc.(b) 45,822 6,862,761

Synopsys, Inc.(b) 6,700 932,640

33,991,157

Asset Management & Custody Banks–3.23%Apollo Global Management, Inc. 206,447 9,849,587

Carlyle Group L.P. (The) 109,689 3,518,823

KKR & Co., Inc., Class A 265,431 7,742,622

21,111,032

Biotechnology–0.98%Alnylam Pharmaceuticals, Inc.(b) 18,512 2,132,027

BeiGene Ltd., ADR (China)(b) 16,567 2,746,146

Moderna, Inc.(b) 77,615 1,518,149

6,396,322

Commodity Chemicals–0.25%LyondellBasell Industries N.V., Class A 17,323 1,636,677

Consumer Electronics–1.24%Sony Corp. (Japan) 118,800 8,086,335

Data Processing & Outsourced Services–8.37%Fiserv, Inc.(b) 57,440 6,641,787

Mastercard, Inc., Class A 51,785 15,462,483

PayPal Holdings, Inc.(b) 72,632 7,856,604

Visa, Inc., Class A 131,327 24,676,343

54,637,217

Diversified Support Services–1.10%Cintas Corp. 26,809 7,213,766

Environmental & Facilities Services–1.24%Republic Services, Inc. 26,587 2,382,993

Waste Management, Inc. 49,855 5,681,476

8,064,469

Financial Exchanges & Data–1.10%London Stock Exchange Group PLC

(United Kingdom) 30,622 3,163,011

Shares Value

Financial Exchanges & Data–(continued)S&P Global, Inc. 14,675 $ 4,007,009

7,170,020

Health Care Equipment–5.23%Abbott Laboratories 55,099 4,785,899

Boston Scientific Corp.(b) 155,225 7,019,274

DexCom, Inc.(b) 6,897 1,508,650

Intuitive Surgical, Inc.(b) 11,477 6,784,629

Teleflex, Inc. 24,400 9,185,136

Zimmer Biomet Holdings, Inc. 32,228 4,823,887

34,107,475

Home Improvement Retail–3.85%Home Depot, Inc. (The) 2,069 451,828

Lowe’s Cos., Inc. 206,288 24,705,051

25,156,879

Hotels, Resorts & Cruise Lines–2.50%Norwegian Cruise Line Holdings Ltd.(b) 22,420 1,309,552

Royal Caribbean Cruises Ltd. 112,626 15,036,697

16,346,249

Industrial Conglomerates–0.41%Roper Technologies, Inc. 7,505 2,658,496

Industrial Gases–0.61%Air Products and Chemicals, Inc. 16,815 3,951,357

Industrial Machinery–0.25%Stanley Black & Decker, Inc. 9,777 1,620,440

Interactive Home Entertainment–6.65%Activision Blizzard, Inc. 325,575 19,345,666

Electronic Arts, Inc.(b) 63,717 6,850,215

Nintendo Co. Ltd. (Japan) 35,000 14,127,619

Take-Two Interactive Software, Inc.(b) 25,141 3,078,013

43,401,513

Interactive Media & Services–10.78%Alphabet, Inc., Class A(b) 28,335 37,951,616

Facebook, Inc., Class A(b) 157,753 32,378,803

70,330,419

Internet & Direct Marketing Retail–12.84%Alibaba Group Holding Ltd., ADR (China)(b) 110,519 23,441,080

Amazon.com, Inc.(b) 26,383 48,751,563

Booking Holdings, Inc.(b) 4,461 9,161,689

Farfetch Ltd., Class A (United Kingdom)(b) 233,393 2,415,618

83,769,950

Investment Banking & Brokerage–0.47%Goldman Sachs Group, Inc. (The) 13,283 3,054,160

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


Shares Value

Life & Health Insurance–0.29%Athene Holding Ltd., Class A(b) 39,774 $ 1,870,571

Life Sciences Tools & Services–4.02%Avantor, Inc.(b) 116,083 2,106,906

Illumina, Inc.(b) 34,517 11,450,670

IQVIA Holdings, Inc.(b) 37,908 5,857,165

Thermo Fisher Scientific, Inc. 20,939 6,802,453

26,217,194

Managed Health Care–1.96%Anthem, Inc. 11,046 3,336,223

UnitedHealth Group, Inc. 32,109 9,439,404

12,775,627

Movies & Entertainment–1.36%Netflix, Inc.(b) 22,411 7,251,527

Vivendi S.A. (France) 56,972 1,651,339

8,902,866

Oil & Gas Refining & Marketing–0.43%Marathon Petroleum Corp. 46,413 2,796,383

Packaged Foods & Meats–1.87%Tyson Foods, Inc., Class A 134,154 12,213,380

Pharmaceuticals–1.35%Novo Nordisk A/S, Class B (Denmark) 27,694 1,606,243

Zoetis, Inc. 54,397 7,199,443

8,805,686

Railroads–1.02%Canadian Pacific Railway Ltd. (Canada) 12,336 3,145,063

Union Pacific Corp. 19,382 3,504,072

6,649,135

Semiconductor Equipment–2.08%Applied Materials, Inc. 194,835 11,892,728

ASML Holding N.V., New York Shares(Netherlands) 5,791 1,713,789

13,606,517

Shares Value

Semiconductors–3.32%Broadcom, Inc. 28,885 $ 9,128,238

NVIDIA Corp. 19,350 4,553,055

QUALCOMM, Inc. 90,520 7,986,579

21,667,872

Specialty Chemicals–0.48%Sherwin-Williams Co. (The) 5,345 3,119,021

Systems Software–6.60%Microsoft Corp. 190,688 30,071,497

Palo Alto Networks, Inc.(b) 33,736 7,801,450

ServiceNow, Inc.(b) 18,449 5,208,522

43,081,469

Technology Hardware, Storage & Peripherals–3.46%Apple, Inc. 76,891 22,579,042

Tobacco–2.07%Philip Morris International, Inc. 159,072 13,535,437

Trucking–0.31%Lyft, Inc., Class A(b) 31,402 1,350,914

Uber Technologies, Inc.(b) 22,835 679,113

2,030,027

Total Common Stocks & Other Equity Interests(Cost $326,505,892) 653,565,896

Money Market Funds–0.13%Invesco Government & Agency Portfolio,

Institutional Class, 1.50%(c) 293,529 293,529

Invesco Liquid Assets Portfolio, InstitutionalClass, 1.71%(c) 209,519 209,582

Invesco Treasury Portfolio, Institutional Class,1.49%(c) 335,461 335,461

Total Money Market Funds (Cost $838,572) 838,572

TOTAL INVESTMENTS IN SECURITIES–100.28%(Cost $327,344,464) 654,404,468

OTHER ASSETS LESS LIABILITIES—(0.28)% (1,817,690)

NET ASSETS–100.00% $652,586,778

Investment Abbreviations:

ADR – American Depositary Receipt

Notes to Schedule of Investments:(a) Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the

exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.(b) Non-income producing security.(c) The money market fund and the Fund are affiliated by having the same investment adviser. The rate shown is the 7-day SEC standardized yield as of December 31,

2019.



Statement of Assets and LiabilitiesDecember 31, 2019

Assets:Investments in securities, at value

(Cost $326,505,892) $653,565,896

Investments in affiliated money market funds, at value(Cost $838,572) 838,572

Foreign currencies, at value (Cost $6,970) 7,120

Receivable for:Investments sold 4,365

Fund shares sold 47,027

Dividends 341,498

Investment for trustee deferred compensation andretirement plans 357,604

Total assets 655,162,082

Liabilities:Payable for:

Fund shares reacquired 1,750,208

Amount due custodian 63,855

Accrued fees to affiliates 329,130

Accrued other operating expenses 53,368

Trustee deferred compensation and retirement plans 378,743

Total liabilities 2,575,304

Net assets applicable to shares outstanding $652,586,778

Net assets consist of:Shares of beneficial interest $278,679,682

Distributable earnings 373,907,096

$652,586,778

Net Assets:Series I $490,365,579

Series II $162,221,199

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

Series I 7,302,302

Series II 2,538,501

Series I:Net asset value per share $ 67.15

Series II:Net asset value per share $ 63.90

Statement of OperationsFor the year ended December 31, 2019

Investment income:Dividends (net of foreign withholding taxes of $90,689) $ 6,019,733

Dividends from affiliated money market funds (includessecurities lending income of $84,387) 133,494

Total investment income 6,153,227

Expenses:Advisory fees 4,121,428

Administrative services fees 972,400

Custodian fees 23,429

Distribution fees - Series II 376,654

Transfer agent fees 69,019

Trustees’ and officers’ fees and benefits 26,870

Reports to shareholders 9,085

Professional services fees 43,994

Other 10,395

Total expenses 5,653,274

Less: Fees waived (2,980)

Net expenses 5,650,294

Net investment income 502,933

Realized and unrealized gain (loss) from:Net realized gain (loss) from:

Investment securities (includes net gains (losses) fromsecurities sold to affiliates of $(3,962)) 54,084,301

Foreign currencies (21,109)

54,063,192

Change in net unrealized appreciation of:Investment securities 132,918,740

Foreign currencies 189

132,918,929

Net realized and unrealized gain 186,982,121

Net increase in net assets resulting from operations $187,485,054



Statement of Changes in Net AssetsFor the years ended December 31, 2019 and 2018

2019 2018

Operations:Net investment income (loss) $ 502,933 $ (419,319)

Net realized gain 54,063,192 85,166,075

Change in net unrealized appreciation (depreciation) 132,918,929 (97,421,166)

Net increase (decrease) in net assets resulting from operations 187,485,054 (12,674,410)

Distributions to shareholders from distributable earnings:Series I (64,492,029) (29,906,066)

Series II (21,911,152) (10,129,348)

Total distributions from distributable earnings (86,403,181) (40,035,414)

Share transactions–net:Series I 8,287,794 (46,845,225)

Series II 4,809,729 (24,264,904)

Net increase (decrease) in net assets resulting from share transactions 13,097,523 (71,110,129)

Net increase (decrease) in net assets 114,179,396 (123,819,953)

Net assets:Beginning of year 538,407,382 662,227,335

End of year $652,586,778 $ 538,407,382



Financial Highlights

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

Net assetvalue,

beginningof period

Netinvestment

income(loss)(a)

Net gains(losses)

on securities(both

realized andunrealized)

Total frominvestmentoperations

Dividendsfrom net

investmentincome

Distributionsfrom netrealized

gainsTotal

distributions

Net assetvalue, endof period

Totalreturn (b)

Net assets,end of period

(000’s omitted)

Ratio ofexpenses

to averagenet assets

with fee waiversand/or

expensesabsorbed

Ratio ofexpenses

to average netassets without

fee waiversand/or

expensesabsorbed

Ratio of netinvestment

income(loss)

to averagenet assets

Portfolioturnover (c)

Series IYear ended 12/31/19 $57.15 $ 0.10 $19.86 $19.96 $ — $(9.96) $(9.96) $67.15 36.76% $490,366 0.86%(d) 0.87%(d) 0.15%(d) 40%Year ended 12/31/18 62.97 (0.00) (1.50) (1.50) — (4.32) (4.32) 57.15 (3.62) 405,192 0.88 0.88 (0.00) 42Year ended 12/31/17 53.58 (0.04) 14.50 14.46 (0.05) (5.02) (5.07) 62.97 27.34 491,271 0.89 0.89 (0.06) 45Year ended 12/31/16 57.30 0.07 1.33 1.40 — (5.12) (5.12) 53.58 2.27 420,824 0.93 0.93 0.12 59Year ended 12/31/15 54.88 (0.03) 2.76 2.73 — (0.31) (0.31) 57.30 5.01 479,298 0.96 0.96 (0.05) 68Series IIYear ended 12/31/19 54.90 (0.07) 19.03 18.96 — (9.96) (9.96) 63.90 36.43 162,221 1.11(d) 1.12(d) (0.10)(d) 40Year ended 12/31/18 60.79 (0.16) (1.41) (1.57) — (4.32) (4.32) 54.90 (3.88) 133,216 1.13 1.13 (0.25) 42Year ended 12/31/17 51.95 (0.19) 14.05 13.86 — (5.02) (5.02) 60.79 27.03 170,956 1.14 1.14 (0.31) 45Year ended 12/31/16 55.85 (0.06) 1.28 1.22 — (5.12) (5.12) 51.95 2.00 151,599 1.18 1.18 (0.13) 59Year ended 12/31/15 53.63 (0.16) 2.69 2.53 — (0.31) (0.31) 55.85 4.75 175,919 1.21 1.21 (0.30) 68

(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. Total returns are not annualized for periods less than oneyear, if applicable, and do not reflect charges assessed in connection with a variable product, which if included would reduce total returns.

(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 $459,259 and $150,652 for Series I and Series II shares, respectively.



Notes to Financial StatementsDecember 31, 2019

NOTE 1—Significant Accounting Policies

Invesco V.I. American Franchise Fund (the “Fund”) is a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) (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-endseries management investment company. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund oreach class will be voted on exclusively by the shareholders of the Fund or each class. Current Securities and Exchange Commission (“SEC”) guidance,however, requires participating insurance companies offering separate accounts to vote shares proportionally in accordance with the instructions ofthe contract owners whose investments are funded by shares of each Fund or class.

The Fund’s investment objective is to seek capital growth.The Fund currently offers two classes of shares, Series I and Series II, both of which are offered to insurance company separate accounts funding

variable annuity contracts and variable life insurance policies (“variable products”).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 aparticular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued basedon prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service theymay 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 notlisted on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining netasset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session ofthe 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 netasset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the lastsales 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 independentpricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflectappropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (forunlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individualtrading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutionalround 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 thaninstitutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of defaultwith 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 asof the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valuedat the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations maybecome unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, eventsoccur that the investment adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If theevent 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 bythe Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricingservice to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security tradesis not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is notreflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered bythe independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, AmericanDepositary 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 lowmarket 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 independentsources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debtobligations, 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 orunder 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 determinationof 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 riseand, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest ratesdepending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the valueand/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 economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, thevalues 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 orlosses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) isrecorded on the 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 litigationsettlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and asunrealized gain (loss) for investments still held.

Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securitiespurchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized andunrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the netrealized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of theFund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses andare not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the netinvestment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited byany 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 factorsinclude the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuerderives 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. Amongthe 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/orcredit 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 to separateaccounts of participating insurance companies annually and recorded on the ex-dividend date.

E. Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, asamended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’staxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realizedcapital 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 hasanalyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertaintax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefitswill 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 suchtaxing 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 and which are directly attributable to that class arecharged to the operations of such class. 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 theUnited States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets andliabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period includingestimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fundmonitors for material events or transactions that may occur or become known after the period-end date and before the date the financialstatements are released to print.

H. Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnifiedagainst certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fundenters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposureunder these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The riskof 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 aresecured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Suchcollateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received inconnection with these loans is invested in short-term money market instruments or affiliated money market funds and is shown as such on theSchedule of Investments. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additionalcollateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securitiesloaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, theFund 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 theborrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject totermination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fundwill return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may bepurchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral andthe securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by thelending 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 tocounterparties, are included in Dividends from affiliated money market funds on the Statement of Operations. The aggregate value of securities outon 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 majorcurrency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts atthe date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated inforeign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account forthe portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising fromchanges in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices oninvestments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in theStatement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains orlosses 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. Netunrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities atfiscal 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, aportion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets inwhich the Fund invests and are shown in the Statement of Operations.

K. Forward Foreign Currency Contracts — The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt deliveryand 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 inorder 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 forphysical settlement of the two currencies, but instead are settled by a single cash payment calculated as the difference between the agreed uponexchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards). The Fund will set asideliquid 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 anagreed-upon price at a future date. The use of forward foreign currency contracts does not eliminate fluctuations in the price of the underlyingsecurities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts aremeasured 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 thecontracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of theCounterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of theamounts 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 theinvestment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’saverage daily net assets as follows:

Average Daily Net Assets Rate

First $250 million 0.695%

Next $250 million 0.670%



Next $3.45 billion 0.600%




Over $10 billion 0.520%

For the year ended December 31, 2019, the effective advisory fee rate incurred by the Fund was 0.68%.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 InvescoCanada 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 AffiliatedSub-Adviser(s).

The Adviser has contractually agreed, through at least June 30, 2020, to waive advisory fees and/or reimburse expenses of all shares to theextent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussedbelow) of Series I shares to 2.00% and Series II shares to 2.25% of average daily net assets (the “expense limits”). In determining the Adviser’sobligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fundoperating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividendexpense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did notactually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on June 30, 2020.


During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver withoutapproval 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, 2021, to waive the advisory fee payable by the Fund in an amount equalto 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, 2019, the Adviser waived advisory fees of $2,980.The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco a fee for

costs incurred in providing accounting services and fund administrative services to the Fund and to reimburse Invesco for fees paid to insurancecompanies that have agreed to provide certain administrative services to the Fund. These administrative services provided by the insurance companiesmay include, among other things: maintenance of master accounts with the Fund; tracking, recording and transmitting net purchase and redemptionorders for Fund shares; maintaining and preserving records related to the purchase, redemption and other account activity of variable product owners;distributing copies of Fund documents such as prospectuses, proxy materials and periodic reports, to variable product owners, and responding toinquiries from variable product owners about the Fund. Pursuant to such agreement, for the year ended December 31, 2019, Invesco was paid$86,136 for accounting and fund administrative services and was reimbursed $886,264 for fees paid to insurance companies. Invesco has enteredinto a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certainadministrative 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 hasagreed 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 thecourse of providing such services. For the year ended December 31, 2019, expenses incurred under the agreement are shown in the Statement ofOperations as Transfer agent fees.

The Trust has entered into a master distribution agreement with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Fund. The Trusthas adopted a plan pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Series II shares (the “Plan”). The Fund, pursuant to the Plan,pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Series II shares. The fees are accrued daily and paidmonthly. Of the Plan payments, up to 0.25% of the average daily net assets of the Series II shares may be paid to insurance companies who furnishcontinuing personal shareholder services to customers who purchase and own Series II shares of the Fund. For the year ended December 31, 2019,expenses incurred under the Plan are detailed in the Statement of Operations as Distribution fees.

For the year ended December 31, 2019, the Fund incurred $4,136 in brokerage commissions with Invesco Capital Markets, Inc., an affiliate of theAdviser 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 marketparticipants 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 tosignificant unobservable inputs (Level 3), generally when market prices are not readily available or are unreliable. Based on the valuation inputs, thesecurities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’sassigned 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, lossseverities, 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 (forexample, 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 thesecurities 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, 2019. The level assigned to the securities valuations may notbe an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the valuesreflected 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

Common Stocks & Other Equity Interests $618,366,025 $35,199,871 $— $653,565,896

Money Market Funds 838,572 — — 838,572

Total Investments $619,204,597 $35,199,871 $— $654,404,468

NOTE 4—Security Transactions with Affiliated Funds

The Fund is permitted to purchase or sell securities from or to certain other Invesco Funds under specified conditions outlined in procedures adoptedby the Board of Trustees of the Trust. The procedures have been designed to ensure that any purchase or sale of securities by the Fund from or toanother fund or portfolio that is or could be considered an affiliate by virtue of having a common investment adviser (or affiliated investmentadvisers), common Trustees and/or common officers complies with Rule 17a-7 of the 1940 Act. Further, as defined under the procedures, eachtransaction is effected at the current market price. Pursuant to these procedures, for the year ended December 31, 2019, the Fund engaged insecurities purchases of $1,968,223 and securities sales of $19,702, which resulted in net realized gains (losses) of $(3,962).


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 theFund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in whichtheir deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that providedfor 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 formerTrustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amountsaccrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claimsagainst 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 atperiod-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bankfor such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can becompensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank andInvesco, not to exceed the contractually agreed upon rate.

NOTE 7—Distributions to Shareholders and Tax Components of Net AssetsTax Character of Distributions to Shareholders Paid During the Fiscal Years Ended December 31, 2019 and 2018:

2019 2018

Ordinary income $ 1,304,602 $ 3,547,796

Long-term capital gain 85,098,579 36,487,618

Total distributions $86,403,181 $40,035,414

Tax Components of Net Assets at Period-End:

2019

Undistributed ordinary income $ 457,859

Undistributed long-term capital gain 49,537,789

Net unrealized appreciation — investments 324,202,325

Net unrealized appreciation (depreciation) - foreign currencies (3,017)

Temporary book/tax differences (287,860)

Shares of beneficial interest 278,679,682

Total net assets $652,586,778

The difference between book-basis and tax-basis unrealized appreciation (depreciation) is due to differences in the timing of recognition of gainsand losses on investments for tax and book purposes. The Fund’s net unrealized appreciation difference is attributable primarily to wash sales andstraddles.

The temporary book/tax differences are a result of timing differences between book and tax recognition of income and/or expenses. The Fund’stemporary 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 theamount of capital loss carryforward actually available for the Fund to utilize. Capital losses generated in years beginning after December 22, 2010can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. Capital losses with an expiration period may not beused to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration datewill retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability toutilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of futuretransactions.

The Fund does not have a capital loss carryforward as of December 31, 2019.

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, 2019 was $243,250,309 and $307,792,150, respectively. Cost ofinvestments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completedfederal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis

Aggregate unrealized appreciation of investments $325,463,687

Aggregate unrealized (depreciation) of investments (1,261,362)

Net unrealized appreciation of investments $324,202,325

Cost of investments for tax purposes is $330,202,143.


NOTE 9—Reclassification of Permanent Differences

Primarily as a result of differing book/tax treatment of foreign currency transactions, on December 31, 2019, undistributed net investment incomewas decreased by $21,070 and undistributed net realized gain was increased by $21,070. This reclassification had no effect on the net assets or thedistributable earnings of the Fund.

NOTE 10—Share InformationSummary of Share Activity

Year endedDecember 31, 2019(a)

Year endedDecember 31, 2018

Shares Amount Shares Amount

Sold:Series I 288,463 $ 19,234,264 309,111 $ 20,899,475

Series II 178,715 11,199,246 172,561 11,056,980

Issued as reinvestment of dividends:Series I 1,061,073 64,492,029 428,393 29,906,066

Series II 378,562 21,911,152 150,914 10,129,348

Reacquired:Series I (1,137,749) (75,438,499) (1,448,513) (97,650,766)

Series II (445,184) (28,300,669) (709,185) (45,451,232)

Net increase (decrease) in share activity 323,880 $ 13,097,523 (1,096,719) $(71,110,129)

(a) There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 28% of the outstanding shares of theFund. The Fund and the Fund’s principal underwriter or adviser, are parties to participation agreements with these entities whereby these entities sell units ofinterest in separate accounts funding variable products that are invested in the Fund. The Fund, Invesco and/or Invesco affiliates may make payments to theseentities, 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 servicessuch as, securities brokerage, third party record keeping and account servicing and administrative services. The Fund has no knowledge as to whether all or anyportion of the shares owned of record by these entities are also owned beneficially.


Report of Independent Registered Public Accounting Firm

To the Board of Trustees of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) and Shareholders of Invesco V.I. American Franchise Fund

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Invesco V.I. American Franchise Fund(one of the funds constituting AIM Variable Insurance Funds (Invesco Variable Insurance Funds), referred to hereafter as the "Fund") as ofDecember 31, 2019, the related statement of operations for the year ended December 31, 2019, the statement of changes in net assets for each ofthe two years in the period ended December 31, 2019, including the related notes, and the financial highlights for each of the five years in the periodended December 31, 2019 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in allmaterial respects, the financial position of the Fund as of December 31, 2019, the results of its operations for the year then ended, the changes in itsnet assets for each of the two years in the period ended December 31, 2019 and the financial highlights for each of the five years in the period endedDecember 31, 2019 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 financialstatements 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 andregulations 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 andperform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error orfraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, andperforming procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts anddisclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made bymanagement, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned asof December 31, 2019 by correspondence with the custodian and transfer agent. We believe that our audits provide a reasonable basis for ouropinion.

/s/PricewaterhouseCoopers LLP

Houston, TexasFebruary 18, 2020

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


Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur ongoing costs, including management fees; distribution and/or service fees (12b-1); and other Fundexpenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs withongoing 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 heldfor the entire period July 1, 2019 through December 31, 2019.

The actual and hypothetical expenses in the examples below do not represent the effect of any fees or other expenses assessed in connection with avariable product; if they did, the expenses shown would be higher while the ending account values shown would be lower.

Actual expenses

The table below provides information about actual account values and actual expenses. You may use the information in this table, together with theamount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid DuringPeriod” 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 andan 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. Youmay use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example withthe 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. Therefore, the hypothetical information is useful incomparing ongoing costs, and will not help you determine the relative total costs of owning different funds.

BeginningAccount Value(07/01/19)

ACTUAL

HYPOTHETICAL(5% annual return before

expenses)

AnnualizedExpense

Ratio

EndingAccount Value(12/31/19)1

ExpensesPaid During

Period2

EndingAccount Value(12/31/19)

ExpensesPaid During

Period2

Series I $1,000.00 $1,114.10 $4.58 $1,020.87 $4.38 0.86%

Series II 1,000.00 1,112.60 5.91 1,019.61 5.65 1.111 The actual ending account value is based on the actual total return of the Fund for the period July 1, 2019 through December 31, 2019, 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 184/365 to reflect the most recent

fiscal half year.


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 intheir 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, 2019:

Federal and State Income TaxLong-term Capital Gain Distribution $85,098,579Corporate Dividends Received Deduction* 100.00%U.S. Treasury Obligations* 0.00%

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


Trustees and OfficersThe address of each trustee and officer is AIM Variable Insurance Funds (Invesco Variable Insurance Funds) (the “Trust”), 11 Greenway Plaza, Suite1000, Houston, Texas 77046-1173. The trustees serve for the life of the Trust, subject to their earlier death, incapacitation, resignation, retirementor removal as more specifically provided in the Trust’s organizational documents. Each officer serves for a one year term or until their successors areelected and qualified. Column two below includes length of time served with predecessor entities, if any.

Name, Year of Birth andPosition(s)Held with the Trust

Trusteeand/orOfficerSince

Principal Occupation(s)During Past 5 Years

Number ofFunds inFund ComplexOverseen byTrustee

OtherDirectorship(s)Held by TrusteeDuring Past 5Years

Interested PersonMartin L. Flanagan1 — 1960Trustee 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 CompanyInstitute; and Member of Executive Board, SMU Cox School of BusinessFormerly: Advisor to the Board, Invesco Advisers, Inc. (formerly known asInvesco 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. (serviceprovider) and Invesco North American Holdings, Inc. (holding company);Director, Chief Executive Officer and President, Invesco Holding CompanyLimited (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 ChiefFinancial Officer, Franklin Resources, Inc. (global investment managementorganization)

229 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 officerand a director of Invesco Ltd., ultimate parent of the Adviser.


Trustees and Officers—(continued)




Number ofFundsinFund ComplexOverseen byTrustee


Independent TrusteesBruce L. Crockett – 1944Trustee and Chair

1993 Chairman, Crockett Technologies Associates (technology consulting company)Formerly: Director, Captaris (unified messaging provider); Director, Presidentand Chief Executive Officer, COMSAT Corporation; Chairman, Board ofGovernors of INTELSAT (international communications company); ACE Limited(insurance company); Independent Directors Council and Investment CompanyInstitute: Member of the Audit Committee, Investment Company Institute;Member of the Executive Committee and Chair of the Governance Committee,Independent Directors Council

229 Director andChairman of theAudit Committee,ALPS (AttorneysLiabilityProtectionSociety)(insurancecompany);Director andMember of theAudit CommitteeandCompensationCommittee,Ferroglobe PLC(metallurgicalcompany)

David C. Arch – 1945Trustee

2010 Chairman of Blistex Inc. (consumer health care products manufacturer);Member, World Presidents’ Organization

229 Board member ofthe IllinoisManufacturers’Association

Beth Ann Brown – 1968Trustee

2019 Independent ConsultantFormerly: Head of Intermediary Distribution, Managing Director, StrategicRelations, Managing Director, Head of National Accounts, Senior VicePresident, National Account Manager and Senior Vice President, Key AccountManager, Columbia Management Investment Advisers LLC; Vice President, KeyAccount Manager, Liberty Funds Distributor, Inc.; and Trustee of certainOppenheimer Funds

229 Director, Board ofDirectors ofCaronEngineering Inc.;Advisor, Board ofAdvisors of CaronEngineering Inc.;President andDirector, ActonShapleigh YouthConservationCorps (non -profit); and VicePresident andDirector ofGrahamtasticConnection (non-profit)

Jack M. Fields – 1952Trustee

1997 Chief Executive Officer, Twenty First Century Group, Inc. (government affairscompany); and Chairman, Discovery Learning Alliance (non-profit)Formerly: Owner and Chief Executive Officer, Dos Angeles Ranch L.P. (cattle,hunting, corporate entertainment); Director, Insperity, Inc. (formerly known asAdministaff) (human resources provider); Chief Executive Officer, TexanaTimber LP (sustainable forestry company); Director of Cross Timbers QuailResearch Ranch (non-profit); and member of the U.S. House of Representatives

229 None








Independent Trustees—(continued)Cynthia Hostetler —1962Trustee

2017 Non-Executive Director and Trustee of a number of public and private businesscorporationsFormerly: Director, Aberdeen Investment Funds (4 portfolios); Head ofInvestment Funds and Private Equity, Overseas Private InvestmentCorporation; President, First Manhattan Bancorporation, Inc.; Attorney,Simpson Thacher & Bartlett LLP

229 Vulcan MaterialsCompany(constructionmaterialscompany); TrilincGlobal ImpactFund; Genesee &Wyoming, Inc.(railroads); ArtioGlobal InvestmentLLC (mutual fundcomplex); EdgenGroup, Inc.(specializedenergy andinfrastructureproductsdistributor);InvestmentCompany Institute(professionalorganization);IndependentDirectors Council(professionalorganization)

Eli Jones – 1961Trustee

2016 Professor and Dean, Mays Business School - Texas A&M UniversityFormerly: Professor and Dean, Walton College of Business, University ofArkansas and E.J. Ourso College of Business, Louisiana State University;Director, Arvest Bank

229 Insperity, Inc.(formerly knownas Administaff)(human resourcesprovider)

Elizabeth Krentzman – 1959Trustee

2019 Formerly: Principal and Chief Regulatory Advisor for Asset ManagementServices and U.S. Mutual Fund Leader of Deloitte & Touche LLP; GeneralCounsel of the Investment Company Institute (trade association); NationalDirector of the Investment Management Regulatory Consulting Practice,Principal, Director and Senior Manager of Deloitte & Touche LLP; AssistantDirector of the Division of Investment Management - Office of Disclosure andInvestment Adviser Regulation of the U.S. Securities and ExchangeCommission 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 andExchange Commission Historical Society; and Trustee of certain OppenheimerFunds

229 Trustee of theUniversity ofFlorida NationalBoard Foundationand AuditCommitteeMember; Memberof the CarticaFunds Board ofDirectors (privateinvestmentfunds); Memberof the Universityof Florida LawCenterAssociation, Inc.Board of Trusteesand AuditCommitteeMember

Anthony J. LaCava, Jr. – 1956Trustee

2019 Formerly: Director and Member of the Audit Committee, Blue Hills Bank(publicly traded financial institution) and Managing Partner, KPMG LLP

229 Blue Hills Bank;Chairman,BentleyUniversity;Member,Business SchoolAdvisory Council;and NominatingCommitteeKPMG LLP

Prema Mathai-Davis – 1950Trustee

1998 RetiredCo-Owner & Partner of Quantalytics Research, LLC, (a FinTech InvestmentResearch Platform for the Self-Directed Investor)

229 None








Independent Trustees—(continued)Joel W. Motley – 1952Trustee

2019 Director of Office of Finance, Federal Home Loan Bank; Member of the Vestryof Trinity Wall Street; Managing Director of Carmona Motley Inc. (privately heldfinancial advisor); Member of the Finance and Budget Committee of theCouncil on Foreign Relations, Member of the Investment Committee and Boardof Human Rights Watch and Member of the Investment Committee and Board ofHistoric Hudson Valley (non-profit cultural organization)Formerly: Managing Director of Public Capital Advisors, LLC (privately heldfinancial advisor); Managing Director of Carmona Motley Hoffman, Inc.(privately held financial advisor); Trustee of certain Oppenheimer Funds; andDirector of Columbia Equity Financial Corp. (privately held financial advisor)

229 Director ofGreenwallFoundation(bioethicsresearchfoundation);Member of Boardand InvestmentCommittee of TheGreenwallFoundation;Director ofSouthern AfricaLegal ServicesFoundation;Board Memberand InvestmentCommitteeMember ofPulizer Center forCrisis Reporting(non-profitjournalism)

Teresa M. Ressel — 1962Trustee

2017 Non-executive director and trustee of a number of public and private businesscorporationsFormerly: Chief Financial Officer, Olayan America, The Olayan Group(international investor/commercial/industrial); Chief Executive Officer, UBSSecurities LLC; Group Chief Operating Officer, Americas, UBS AG; AssistantSecretary for Management & Budget and CFO, US Department of the Treasury

229 Atlantic PowerCorporation(power generationcompany); ONSemiconductorCorp.(semiconductorsupplier)

Ann Barnett Stern – 1957Trustee

2017 President and Chief Executive Officer, Houston Endowment Inc. (privatephilanthropic institution)Formerly: Executive Vice President and General Counsel, Texas Children’sHospital; Attorney, Beck, Redden and Secrest, LLP; Business Law Instructor,University of St. Thomas; Attorney, Andrews & Kurth LLP

229 Federal ReserveBank of Dallas

Robert C. Troccoli – 1949Trustee

2016 Retired 229 None

Daniel S. Vandivort –1954Trustee

2019 Treasurer, Chairman of the Audit and Finance Committee, and Trustee, Boardof Trustees, Huntington Disease Foundation of America; and President, FlywayAdvisory Services LLC (consulting and property management)Formerly: Trustee and Governance Chair, of certain Oppenheimer Funds

229 Chairman andLead IndependentDirector,Chairman of theAudit Committee,and Director,Board ofDirectors, ValueLine Funds

James D. Vaughn – 1945Trustee

2019 RetiredFormerly: Managing Partner, Deloitte & Touche LLP; Trustee and Chairman ofthe 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 developmentcorporation); and Trustee of certain Oppenheimer Funds

229 Board memberand Chairman ofAudit Committeeof AMG NationalTrust Bank;Trustee andInvestmentCommitteemember,University ofSouth DakotaFoundation;Board member,Audit CommitteeMember and pastBoard Chair,JuniorAchievement(non-profit)








Independent Trustees—(continued)Christopher L. WIlson -1957Trustee, Vice Chair and ChairDesignate

2017 RetiredFormerly: Director, TD Asset Management USA Inc. (mutual fund complex) (22portfolios); Managing Partner, CT2, LLC (investing and consulting firm);President/Chief Executive Officer, Columbia Funds, Bank of AmericaCorporation; President/Chief Executive Officer, CDC IXIS Asset ManagementServices, Inc.; Principal & Director of Operations, Scudder Funds, Scudder,Stevens & Clark, Inc.; Assistant Vice President, Fidelity Investments

229 ISO NewEngland, Inc.(non-profitorganizationmanagingregional electricitymarket)








OfficersSheri Morris — 1964President, Principal ExecutiveOfficer and Treasurer

1999 Head of Global Fund Services, Invesco Ltd.; President, Principal ExecutiveOfficer and Treasurer, The Invesco Funds; Vice President, Invesco Advisers,Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registeredinvestment adviser); and Vice President, Invesco Exchange-Traded Fund Trust,Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded FundTrust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco ActivelyManaged Exchange-Traded Commodity Fund Trust and InvescoExchange-Traded Self-Indexed Fund Trust; and Vice President,OppenheimerFunds, Inc.Formerly: Vice President 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 Presidentand Assistant Treasurer, The Invesco Funds and Assistant Vice President,Invesco Advisers, Inc., Invesco AIM Capital Management, Inc. and Invesco AIMPrivate Asset Management, Inc.; and Treasurer, Invesco Exchange-TradedFund Trust, Invesco Exchange-Traded Fund Trust II, Invesco IndiaExchange-Traded Fund Trust and Invesco Actively Managed Exchange-TradedFund Trust

N/A N/A

Russell C. Burk — 1958Senior Vice President and SeniorOfficer

2005 Senior Vice President and Senior Officer, The Invesco Funds N/A N/A

Jeffrey H. Kupor – 1968Senior Vice President, Chief LegalOfficer and Secretary

2018 Head of Legal of the Americas, Invesco Ltd.; Senior Vice President andSecretary, Invesco Advisers, Inc. (formerly known as Invesco Institutional(N.A.), Inc.) (registered investment adviser); Senior Vice President andSecretary, Invesco Distributors, Inc. (formerly known as Invesco AIMDistributors, Inc.); Vice President and Secretary, Invesco Investment Services,Inc. (formerly known as Invesco AIM Investment Services, Inc.) Senior VicePresident, Chief Legal Officer and Secretary, The Invesco Funds; Secretary andGeneral Counsel, Invesco Investment Advisers LLC (formerly known as VanKampen Asset Management); Secretary and General Counsel, Invesco CapitalMarkets, Inc. (formerly known as Van Kampen Funds Inc.) and Chief LegalOfficer, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded FundTrust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively ManagedExchange-Traded Fund Trust, Invesco Actively Managed Exchange-TradedCommodity Fund Trust and Invesco Exchange-Traded Self-Indexed Fund Trust;Secretary, Invesco Indexing LLC; Secretary, W.L. Ross & Co., LLCFormerly: Secretary and Vice President, Jemstep, Inc.; Head of Legal,Worldwide Institutional, Invesco Ltd.; Secretary and General Counsel, INVESCOPrivate Capital Investments, Inc.; Senior Vice President, Secretary and GeneralCounsel, Invesco Management Group, Inc. (formerly known as Invesco AIMManagement 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 andGeneral Counsel, Invesco Senior Secured Management, Inc.; and Secretary,Sovereign G./P. Holdings Inc.

N/A N/A

Andrew R. Schlossberg – 1974Senior Vice President

2019 Head of the Americas and Senior Managing Director, Invesco Ltd.; Director andSenior Vice President, Invesco Advisers, Inc. (formerly known as InvescoInstitutional (N.A.), Inc.) (registered investment adviser); Director andChairman, Invesco Investment Services, Inc. (formerly known as Invesco AIMInvestment Services, Inc.) (registered transfer agent); Senior Vice President,The Invesco Funds; Director, Invesco Investment Advisers LLC (formerly knownas Van Kampen Asset Management); Director, President and Chairman, InvescoInsurance Agency, Inc.Formerly: Director, Invesco UK Limited; Director and Chief Executive, InvescoAsset Management Limited and Invesco Fund Managers Limited; Assistant VicePresident, The Invesco Funds; Senior Vice President, Invesco Advisers, Inc.(formerly known as Invesco Institutional (N.A.), Inc.) (registered investmentadviser); Director and Chief Executive, Invesco Administration Services Limitedand Invesco Global Investment Funds Limited; Director, Invesco Distributors,Inc.; Head of EMEA, Invesco Ltd.; President, Invesco Actively ManagedExchange-Traded Commodity Fund Trust, Invesco Actively ManagedExchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust, InvescoExchange-Traded Fund Trust II and Invesco India Exchange-Traded Fund Trust;Managing Director and Principal Executive Officer, Invesco CapitalManagement LLC

N/A N/A








Officers—(continued)John M. Zerr — 1962Senior Vice President

2006 Chief Operating Officer of the Americas; Senior Vice President, InvescoAdvisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registeredinvestment adviser); Senior Vice President, Invesco Distributors, Inc. (formerlyknown as Invesco AIM Distributors, Inc.); Director and Vice President, InvescoInvestment Services, Inc. (formerly known as Invesco AIM InvestmentServices, 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 ExecutiveOfficer, Invesco Corporate Class Inc. (corporate mutual fund company); andDirector, Chairman, President and Chief Executive Officer, Invesco Canada Ltd.(formerly known as Invesco Trimark Ltd./Invesco Trimark Ltèe) (registeredinvestment adviser and registered transfer agent)Formerly: Director and Senior Vice President, Invesco Management Group, Inc.(formerly known as Invesco AIM Management Group, Inc.); Secretary andGeneral Counsel, Invesco Management Group, Inc. (formerly known as InvescoAIM Management Group, Inc.); Secretary, Invesco Investment Services, Inc.(formerly known as Invesco AIM Investment Services, Inc.); Chief Legal Officerand Secretary, The Invesco Funds; Secretary and General Counsel, InvescoInvestment Advisers LLC (formerly known as Van Kampen Asset Management);Secretary and General Counsel, Invesco Capital Markets, Inc. (formerly knownas Van Kampen Funds Inc.); Chief Legal Officer, Invesco Exchange-Traded FundTrust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-TradedFund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, InvescoActively Managed Exchange-Traded Commodity Fund Trust and InvescoExchange-Traded Self-Indexed Fund Trust; Secretary, Invesco Indexing LLC;Director, Secretary, General Counsel and Senior Vice President, Van KampenExchange 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 KampenAdvisors Inc.; Director, Vice President, Secretary and General Counsel, VanKampen Investor Services Inc.;Director and Secretary, Invesco Distributors,Inc. (formerly known as Invesco AIM Distributors, Inc.); Director, Senior VicePresident, General Counsel and Secretary, Invesco AIM Advisers, Inc. and VanKampen Investments Inc.; Director, Vice President and Secretary, FundManagement Company; Director, Senior Vice President, Secretary, GeneralCounsel and Vice President, Invesco AIM Capital Management, Inc.; ChiefOperating Officer and General Counsel, Liberty Ridge Capital, Inc. (aninvestment adviser)

N/A N/A

Gregory G. McGreevey - 1962Senior Vice President

2012 Senior Managing Director, Invesco Ltd.; Director, Chairman, President, andChief Executive Officer, Invesco Advisers, Inc. (formerly known as InvescoInstitutional (N.A.), Inc.) (registered investment adviser); Director, InvescoMortgage Capital, Inc. and Invesco Senior Secured Management, Inc.; andSenior Vice President, The Invesco Funds; and President, SNW AssetManagement CorporationFormerly: Senior Vice President, Invesco Management Group, Inc. and InvescoAdvisers, Inc.; Assistant Vice President, The Invesco Funds

N/A N/A

Kelli Gallegos – 1970Vice President, Principal FinancialOfficer and Assistant Treasurer

2008 Principal Financial and Accounting Officer – Investments Pool, InvescoSpecialized Products, LLC; Vice President, Principal Financial Officer andAssistant Treasurer, The Invesco Funds; Principal Financial and AccountingOfficer – Pooled Investments, Invesco Capital Management LLC; Vice Presidentand Treasurer, Invesco Exchange-Traded Fund Trust, Invesco Exchange-TradedFund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco ActivelyManaged Exchange-Traded Fund Trust, Invesco Actively ManagedExchange-Traded Commodity Fund Trust and Invesco Exchange-TradedSelf-Indexed Fund TrustFormerly: Assistant Treasurer, Invesco Specialized Products, LLC; AssistantTreasurer, Invesco Exchange-Traded Fund Trust, Invesco Exchange-TradedFund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco ActivelyManaged Exchange-Traded Fund Trust, Invesco Actively ManagedExchange-Traded Commodity Fund Trust and Invesco Exchange-TradedSelf-Indexed Fund Trust; Assistant Treasurer, Invesco CapitalManagement LLC; Assistant Vice President, The Invesco Funds

N/A N/A








Officers—(continued)Crissie M. Wisdom – 1969Anti-Money LaunderingCompliance Officer

2013 Anti-Money Laundering Compliance Officer, Invesco Advisers, Inc. (formerlyknown as Invesco Institutional (N.A.), Inc.) (registered investment adviser),Invesco Capital Markets, Inc. (formerly known as Van Kampen Funds Inc.),Invesco Distributors, Inc., Invesco Investment Services, Inc., The InvescoFunds, and Invesco Exchange-Traded Fund Trust, Invesco Exchange-TradedFund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco ActivelyManaged Exchange-Traded Fund Trust, Invesco Actively ManagedExchange-Traded Commodity Fund Trust and Invesco Exchange-TradedSelf-Indexed Fund Trust; Anti-Money Laundering Compliance Officer and BankSecrecy Act Officer, INVESCO National Trust Company and InvescoTrust Company; and Fraud Prevention Manager and Controls and Risk AnalysisManager for Invesco Investment Services, Inc.Formerly: Anti-Money Laundering Compliance Officer, Van Kampen ExchangeCorp. and Invesco Management Group, Inc.

N/A N/A

Robert R. Leveille – 1969Chief Compliance Officer

2016 Chief Compliance Officer, Invesco Advisers, Inc. (registered investmentadviser); and Chief Compliance Officer, The Invesco FundsFormerly: Chief Compliance Officer, Putnam Investments and the PutnamFunds

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 Fund11 Greenway Plaza, Suite 1000Houston, TX 77046-1173

Investment AdviserInvesco Advisers, Inc.1555 Peachtree Street, N.E.Atlanta, GA 30309

DistributorInvesco Distributors, Inc.11 Greenway Plaza, Suite 1000Houston, TX 77046-1173

AuditorsPricewaterhouseCoopers LLP1000 Louisiana Street, Suite 5800Houston, TX 77002-5678

Counsel to the FundStradley Ronon Stevens & Young, LLP2005 Market Street, Suite 2600Philadelphia, PA 19103-7018

Counsel to the Independent TrusteesGoodwin Procter LLP901 New York Avenue, N.W.Washington, D.C. 20001

Transfer AgentInvesco Investment Services, Inc.11 Greenway Plaza, Suite 1000Houston, TX 77046-1173

CustodianState Street Bank and Trust Company225 Franklin StreetBoston, MA 02110-2801


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