Invesco 2022 Annual Management Report of Fund Performance

Transcription

1 Invesco 2022 Annual Management Report of Fund Performance for the period ended Invesco Intactive Diversified Income Portfolio Class

2 Invesco Canada Ltd., All rights reserved. The views of the management of Invesco Canada Ltd. contained in this report are as of the date they were written, and this report is not intended to provide legal, accounting, tax or specific investment advice. Portfolio holdings and allocations are as at, unless otherwise noted. Views, portfolio holdings and allocations may have changed subsequent to this date. For current fund information, please call or visit our website at invesco.ca. Commissions, trailing commissions, management fees and expenses may all be associated with mutual fund investments. Please read the simplified prospectus before investing. The indicated rates of return are the historical and annual compounded total returns, including changes in security value and reinvestment of all dividends/distributions, and do not take into account sales, redemption, dividends/distributions or optional charges, or income taxes payable by any investor, which would have reduced returns. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Mutual funds are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer. There are no assurances that the money market funds will be able to maintain a constant net asset value per security or that the full amount of your investment will be returned to you. This report may include statements that include information concerning possible or assumed future results of the Funds operations, earnings, liquidity and cash flows, asset levels, merger activities and the effect of completed merger transactions, regulatory developments, demand for and pricing of the Funds, and general economic and securities market conditions. Such statements may be considered forward-looking statements. When used in this report, words such as believes, expects, anticipates, intends, plans, estimates, projects, and future or conditional verbs such as will, may, could, should and would, or any other statement that necessarily depends on future events, are intended to identify forward-looking statements. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions. Although we make such statements based on assumptions that we believe to be reasonable, there can be no assurance that actual results will not differ materially from our expectations. We caution investors not to rely unduly on any forward-looking statements. In connection with any forward-looking statements, you should carefully consider the areas of risk described in the most recent simplified prospectus of the Funds. You may obtain these documents from the SEDAR website at sedar.com.

3 for the period ended Part of Invesco Corporate Class Inc. Fund and series details Portfolio management team: Invesco Global Asset Allocation team Scott Wolle CFA, MBA; Mark Ahnrud CFA, MBA; Chris Devine CFA, MBA; Scott Hixon CFA, MBA; Christian Ulrich CFA Location: Atlanta, U.S. Sub-advisor: Invesco Advisers, Inc. Fund(s): refers to any of the mutual funds offered under the Invesco Simplified Prospectus. Start Date: refers to the date on which Securities of a particular series of a Fund first became available to the public. Series A: April 2011 Series F: April 2011 (Series PF was redesignated into Series F on March 27, 2020) Series F4: November 2015 (Series PF4 was redesignated into Series F4 on March 27, 2020) Series F6: November 2015 (Series PF6 was redesignated into Series F6 on March 27, 2020) Series P: April 2011 Series PT4: November 2013 Series PT6: December 2012 Series T4: April 2011 Series T6: April 2011 Manager: refers to Invesco Canada Ltd., doing business as Invesco. Net assets attributable to Securityholders (Net Asset Value): refers to the value of net assets calculated in accordance with International Financial Reporting Standards (IFRS) as presented in the financial statements which is equal to the value of net assets for purposes of Securityholder transactions (i.e., purchases, switches, redemptions). Securityholder(s): refers to the shareholder(s) of the Fund(s). Securities: refers to the shares offered by any of the Funds. Each series of Securities is intended for a different type of investor. Series A Securities are available to all investors. Series F, Series F4 and Series F6 Securities are available to investors who have feebased accounts with their dealer or have access to a discount brokerage platform through their dealer. Series F, Series F4 and Series F6 Securities have a lower management and advisory fee than other series Securities of the same Fund because the Manager does not pay any trailing commissions to the dealer. These series all pay the same management and advisory fee, but have different distribution policies. Series F, Series F4 and Series F6 Securities are also available to other groups of investors for whom the Manager does not pay commissions. Series P, Series PT4 and Series PT6 (Private Investor series) Securities generally have lower management and advisory fees compared to Series A, Series T4 and Series T6 Securities of the same Fund. Series P, Series PT4 and Series PT6 Securities are available to investors who invest, in aggregate, a minimum of $100,000 in Securities of Invesco Canada Funds. Series T4 and Series T6 Securities are available to all investors and pay the same management and advisory fee as Series A but have different distribution policies. Investment objectives and strategies (the Fund ) seeks to generate income and modest capital appreciation by investing substantially all of its assets in Series I units of Invesco Intactive Diversified Income Portfolio (the Underlying Fund ), which invests in a diversified mix of mutual funds and exchange-traded funds (ETFs). The portfolio management team (the team ) follows a strategic asset-allocation approach based on aligning risk across each of the three different economic environments: noninflationary growth, inflationary growth and recessionary. The team may tactically vary the strategic allocation to take advantage of shorter-term market opportunities. To reduce the impact of exchange-rate fluctuations, ordinarily derivatives are used to hedge approximately half of the Underlying Fund s foreign currency exposure, though active decisions may be made to increase or decrease this hedge. Risk The risks associated with investing in this Fund remain as discussed in the Invesco Simplified Prospectus. The Fund continues to be suitable for investors who seek welldiversified investments and are comfortable with low risk. The Fund s overall level of risk has not changed materially in the past year. This Annual Management Report of Fund Performance contains financial highlights of the Portfolio, but does not contain either semi-annual or annual financial statements of the Portfolio. You can get a copy of the semi-annual or annual financial statements at your request, and at no cost, by calling ; by writing to us at Invesco at 120 Bloor Street East, Suite 700, Toronto, Ontario M4W 1B7 or inquiries@invesco.ca; or by visiting our website at invesco.ca or SEDAR at sedar.com. Securityholders may also contact us using one of these methods to request a copy of the Portfolio s proxy voting policies and procedures, proxy voting disclosure record or Quarterly Portfolio Disclosure.

4 Results of operations Performance In managing the Fund, the team seeks a better balance of risk relative to the benchmark by allocating across asset classes that tend to perform well in three different economic environments: inflationary growth, non-inflationary growth and recession. The team gains access to the various asset classes by investing in a diversified mix of mutual funds and ETFs For the 12-month period ended, the Fund s Series A 1 returned -0.06%, underperforming its blended benchmark of 70% FTSE Canada Universe Bond Index/15% S&P/TSX Composite Index/7.5% MSCI All Country World Index (CAD) /7.5% MSCI All Country World Index (local currency), which returned 0.75% over the same period. The Fund s return is after the deduction of fees and expenses, while the benchmark return does not include any costs of investing The Fund s relative performance generally benefited from the team s asset allocation decisions over the period; however, it was not enough to fully offset the impact of fees and expenses as well as underperformance of select underlying funds As invests substantially all of its assets in Series I units of Invesco Intactive Diversified Income Portfolio (the Underlying Fund ), discussions in the Key drivers of performance and Portfolio activity sections below will refer to the holdings of the Underlying Fund Key drivers of performance Over the period, the Fund also benefited from exposure to inflation-protective assets, which are not represented in the benchmark, as inflationary pressures aided results over the period. These positions include: o Commodities o Real return bonds o Floating rate notes While collectively the impact of underlying fund performance was negative, select underlying managers did well to outperform their respective asset class benchmarks and aided performance. Key individual contributors for the period included: o Invesco S&P Emerging Markets Low Volatility ETF o Invesco FTSE RAFI Canadian Index ETF o Invesco FTSE RAFI Emerging Markets ETF Select underlying funds significantly underperformed their respective asset class benchmarks over the period and dragged on relative Fund performance. The most significant individual detractors were: o Invesco International Companies Fund (Series I) o Invesco Emerging Markets Select Pool (Series R) o Invesco Global Focus Fund (Series I) In addition, the following positions detracted from performance from an asset allocation standpoint: 1 The series stated is typically based on factors such as availability to Securityholders, oldest Start Date and largest asset size. Please refer to the Past performance section for the performance of the other series. o o Emerging Market equities overweight exposure versus the benchmark hurt as emerging market equities struggled in response to an economic slowdown in China and Russia s invasion of Ukraine during the period Long-term government bonds the targeted exposure to long-term government bonds struggled amid strong growth and a lack of a safe-haven bid through much of the period. Additionally, government bonds were further hampered by mounting inflationary pressures and the end of accommodative central bank policy Portfolio activity On a monthly basis, the team reviews the economic environment and will tactically shift assets from the Fund s strategic allocation to take advantage of near-term market opportunities. The strategic allocation and target tactical positions on are displayed below Equity mutual funds and ETFs Strategic allocation (%) Target tactical allocation (%) Fixed-income funds and ETFs Commodities ETFs Money market mutual funds Income, fees and expenses At the Fund level, significant components of income may include dividends, interest, realized and unrealized gains and losses. Significant components of expenses are primarily comprised of management fees and operating expenses. Amongst other factors, the value of these components may fluctuate as a result of changes to various drivers of income, fees and expenses such as average Net Asset Value (NAV), investment activity, account activity, and varying market conditions The management expense ratio (MER) decreased from 1.95% to 1.94% for Series A Securityholders. Please refer to the Financial highlights section for the MER of each series. The Manager has absorbed some operating expenses. Such absorptions may be discontinued at any time Securityholder activity For the 12-month period ended the Fund s NAV increased 0.53% to $ million from $ million. Of this change, an increase of $831 thousand was attributed to operations and an increase of $264 thousand to net inflows Recent developments as at April 14, 2022 As the calendar year started, pandemic concerns receded, and policymakers turned their attention to the high levels of inflation in much of the global economy. Economic growth slowed for developed economies as conditions began to normalize with the reduction of policy stimulus, increased labour force participation and the drawdown in household savings. Russia s invasion of Ukraine exacerbated inflationary pressures by driving up commodity

5 prices. Concurrently, some major developed central banks pivoted to a more hawkish stance in response to inflation. Asset classes experienced swings in performance during the first quarter of Global equities posted losses, experiencing a major sell-off before experiencing a partial rebound in March. Developed and developing market stocks came under pressure as concerns grew about aggressive central bank tightening, especially from the U.S. Federal Reserve (the Fed ), as well as the Russia- Ukraine conflict. Only a few major stock markets were able to post gains in the first quarter, including Canada and the UK. Global fixed income also posted losses, with weakness in government bonds, investment grade and high yield bonds. However, commodities posted strong gains to start the calendar year, as concerns about supply especially energy supplies drove prices higher. Asset class behaviour in the near term will be most heavily influenced by two paths: the path of the Russia-Ukraine conflict and the path taken by central banks to curb inflation. If the Russia- Ukraine conflict begins to deescalate, risk appetite may see an uptick, which may benefit equities but weigh on commodity prices as the war premium fades. A broadening of the conflict, however, risks just the opposite. The path taken by central banks to curb inflation will be rather tricky. There are signs that growth is already slowing, and nominal interest rates have inverted. In fact, the shape of the U.S. yield curve resembles what s typically seen at the end of rate hike cycles rather than the start. History has shown that managing a soft landing has been exceptionally hard to accomplish with a recession being the outcome more often than not. Central banks will be looking to thread that needle in a very dynamic environment. The portfolio management team believes that maintaining balance across potential outcomes continues to be a prudent way to navigate an uncertain environment. Related party transactions The Manager is responsible for the day-to-day operations of the Fund and provides management services to the Fund, including the marketing, promotion and distribution of the Fund; transfer agency services; and Securityholder reporting and servicing. The Fund receives investment advisory services provided by the Manager or affiliates of the Manager. These services are in the normal course of operations and are recorded at the amount of the consideration agreed to by the parties. The Fund is sub-advised by Invesco Advisers, Inc., an affiliate of the Manager. Each Fund pays a management and advisory fee to the Manager, based on the average Net Asset Value of each series of the Fund. Where applicable, the management and advisory fee includes any sub-advisory fee that the Manager pays directly to a sub-advisor and. The Manager may agree to reduce the normal management and advisory fee it charges a Fund in respect of large Securityholders of a Fund based on agreements between the Manager and the Securityholders. The Manager incurs operating expenses on behalf of the Fund and is then reimbursed by the Fund for such expenses. The Fund is structured as a Share Class of a mutual fund corporation, Invesco Corporate Class Inc. (the Fund Corporation ), and its affairs are overseen by a Board of Directors (the Fund Board ). The majority of Fund Board members are independent of the Manager. The Fund Board reviews the investment performance,. investment policies, financial statements, trading policies and other similar matters related to the operations of the Fund, and reports its findings, makes recommendations and gives approvals, as appropriate, to the Manager with respect thereto. In addition, the Manager has appointed the Independent Review Committee (IRC) established under the Canadian Securities Administrators National Instrument Independent Review Committee for Investment Funds. The members of the IRC are the current independent members of the Fund Board. The mandate of the IRC is to review, and provide input on, the Manager s written policies and procedures that deal with conflict of interest matters in respect of the Funds. The IRC may also approve certain mergers involving the Funds and any change in the auditor of the Funds. Additional information about the IRC is available in the Invesco Simplified Prospectus and Annual Information Form. Independent members of the Fund Board and members of the IRC receive directors fees for services rendered to the Fund. They may receive all or part of their compensation in the form of deferred share units in lieu of cash for services rendered to the Fund Corporation. The deferred share units are notional or phantom securities whose value corresponds to a share of a class of Invesco Corporate Class Inc. Independent members whose holdings of the Funds are below $100 thousand are required to take their retainer compensation in the form of deferred share units until that threshold is reached. The Fund Corporation s obligations will be unsecured, and no independent member or other person will have any right to the specific assets of the Fund Corporation. In the case of certain Funds, the Manager provided start-up investment capital. The Manager s investment in the Funds is recorded at the Net Asset Value per Security of each series, as applicable. Certain of the Funds participated in portfolio transactions with other Funds managed or sub-advised by the Manager. These transactions were executed through market intermediaries and under prevailing market terms and conditions.

6 Financial highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund s financial performance for the the past five financial years ended if applicable Series A Series net assets per Security (1) Net Asset Value per Security, beg. of period (2) Increase/(decrease) from operations Total revenue $ $ $ $ $ Total expenses (0.24) (0.23) (0.22) (0.21) (0.21) Realized gains/(losses) Unrealized gains/(losses) (0.54) 1.95 (1.14) (0.02) 0.17 Total increase/(decrease) from operations (2) Dividends From income (excluding dividends) $ 0.05 $ 2.23 $ (0.92) $ 0.21 $ 0.45 From dividends (0.05) (0.04) (0.08) (0.05) (0.10) From capital gains Return of capital Total dividends (2)(3) $ (0.05) $ (0.04) $ (0.08) $ (0.05) $ (0.10) Net Asset Value per Security, end of period (2) $ $ $ $ $ Ratios/supplemental data Net Asset Value - end of period ($ 000) 16,103 17,890 17,426 22,589 25,022 Number of Securities outstanding - end of period ( 000) 1,212 1,341 1,555 1,835 2,064 Management expense ratio (4) 1.94% 1.95% 1.94% 1.94% 1.94% Management expense ratio including fees/expenses waived/absorbed by Manager (4) 2.10% 2.15% 2.11% 2.24% 2.13% Series F Series net assets per Security (1) Net Asset Value per Security, beg. of period (2) $ $ $ $ $ Increase/(decrease) from operations Total revenue Total expenses (0.10) (0.10) (0.13) (0.12) (0.12) Realized gains/(losses) Unrealized gains/(losses) (0.77) 2.04 (0.36) (0.03) 0.17 Total increase/(decrease) from operations (2) Dividends From income (excluding dividends) $ 0.07 $ 2.51 $ (0.07) $ 0.32 $ 0.58 From dividends (0.05) (0.04) (0.07) (0.05) (0.10) From capital gains Return of capital Total dividends (2)(3) $ (0.05) $ (0.04) $ (0.07) $ (0.05) $ (0.10) Net Asset Value per Security, end of period (2) Ratios/supplemental data Net Asset Value - end of period ($ 000) $ ,872 $ ,102 $ ,790 $ ,041 $ ,131 Number of Securities outstanding - end of period ( 000) 6,196 5,569 5, Management expense ratio (4) 0.85% 0.85% 1.11% 1.12% 1.13% Management expense ratio including fees/expenses waived/absorbed by Manager (4) 0.86% 0.87% 1.11% 1.12% 1.14%

7 Financial highlights Series F Series net assets per Security (1) Net Asset Value per Security, beg. of period (2) $ $ $ $ $ Increase/(decrease) from operations Total revenue Total expenses (0.11) (0.11) (0.14) (0.14) (0.15) Realized gains/(losses) Unrealized gains/(losses) (0.88) 2.36 (0.18) (0.08) 0.06 Total increase/(decrease) from operations (2) Dividends From income (excluding dividends) $ 0.02 $ 2.84 $ 0.16 $ 0.34 $ 0.57 From dividends (0.06) (0.04) (0.08) (0.05) (0.07) From capital gains Return of capital (0.58) (0.58) (0.51) (0.56) (0.54) Total dividends (2)(3) Net Asset Value per Security, end of period (2) Ratios/supplemental data $ (0.64) $ (0.62) $ (0.59) $ (0.61) $ (0.61) $ $ $ $ $ Net Asset Value - end of period ($ 000) 2,757 2,360 2, Number of Securities outstanding - end of period ( 000) Management expense ratio (4) 0.87% 0.87% 1.11% 1.12% 1.13% Management expense ratio including fees/expenses waived/absorbed by Manager (4) 0.92% 0.91% 1.11% 1.12% 1.16% Series F Series net assets per Security (1) Net Asset Value per Security, beg. of period (2) Increase/(decrease) from operations Total revenue $ $ $ $ $ Total expenses (0.10) (0.10) (0.14) (0.14) (0.14) Realized gains/(losses) Unrealized gains/(losses) (0.55) 2.06 (0.58) Total increase/(decrease) from operations (2) Dividends From income (excluding dividends) $ 0.19 $ 2.52 $ (0.23) $ 0.51 $ 0.56 From dividends (0.05) (0.04) (0.07) (0.05) (0.08) From capital gains Return of capital (0.81) (0.81) (0.75) (0.83) (0.82) Total dividends (2)(3) Net Asset Value per Security, end of period (2) Ratios/supplemental data $ (0.86) $ (0.85) $ (0.82) $ (0.88) $ (0.90) $ $ $ $ $ Net Asset Value - end of period ($ 000) 1,643 1,817 1, Number of Securities outstanding - end of period ( 000) Management expense ratio (4) 0.88% 0.88% 1.12% 1.12% 1.12% Management expense ratio including fees/expenses waived/absorbed by Manager (4) 0.88% 0.88% 1.12% 1.12% 1.14%

8 Financial highlights Series P Series net assets per Security (1) Net Asset Value per Security, beg. of period (2) $ $ $ $ $ Increase/(decrease) from operations Total revenue Total expenses (0.22) (0.20) (0.20) (0.19) (0.19) Realized gains/(losses) Unrealized gains/(losses) (0.59) 2.01 (1.27) (0.04) 0.10 Total increase/(decrease) from operations (2) Dividends From income (excluding dividends) $ 0.05 $ 2.33 $ (1.03) $ 0.23 $ 0.41 From dividends (0.05) (0.04) (0.07) (0.05) (0.06) From capital gains Return of capital Total dividends (2)(3) Net Asset Value per Security, end of period (2) Ratios/supplemental data $ (0.05) $ (0.04) $ (0.07) $ (0.05) $ (0.06) $ $ $ $ $ Net Asset Value - end of period ($ 000) 80,045 87,350 82,330 95, ,224 Number of Securities outstanding - end of period ( 000) 5,833 6,354 7,149 7,549 8,084 Management expense ratio (4) 1.69% 1.71% 1.70% 1.73% 1.73% Management expense ratio including fees/expenses waived/absorbed by Manager (4) 1.69% 1.71% 1.70% 1.73% 1.73% Series PT Series net assets per Security (1) Net Asset Value per Security, beg. of period (2) Increase/(decrease) from operations Total revenue $ $ $ $ $ Total expenses (0.23) (0.22) (0.23) (0.23) (0.23) Realized gains/(losses) Unrealized gains/(losses) (0.72) 2.26 (1.40) (0.06) 0.08 Total increase/(decrease) from operations (2) Dividends From income (excluding dividends) $ (0.01) $ 2.61 $ (1.12) $ 0.24 $ 0.48 From dividends (0.06) (0.04) (0.08) (0.05) (0.06) From capital gains Return of capital (0.55) (0.56) (0.49) (0.55) (0.54) Total dividends (2)(3) Net Asset Value per Security, end of period (2) Ratios/supplemental data $ (0.61) $ (0.60) $ (0.57) $ (0.60) $ (0.60) $ $ $ $ $ Net Asset Value - end of period ($ 000) 6,990 6,525 6,321 7,417 8,438 Number of Securities outstanding - end of period ( 000) Management expense ratio (4) 1.69% 1.71% 1.71% 1.72% 1.70% Management expense ratio including fees/expenses waived/absorbed by Manager (4) 1.69% 1.71% 1.71% 1.72% 1.70%

9 Financial highlights Series PT Series net assets per Security (1) Net Asset Value per Security, beg. of period (2) $ $ $ $ $ Increase/(decrease) from operations Total revenue Total expenses (0.19) (0.19) (0.19) (0.20) (0.21) Realized gains/(losses) Unrealized gains/(losses) (0.56) 1.96 (1.21) Total increase/(decrease) from operations (2) Dividends From income (excluding dividends) $ 0.02 $ 2.25 $ (0.96) $ 0.29 $ 0.44 From dividends (0.05) (0.03) (0.06) (0.05) (0.06) From capital gains Return of capital (0.70) (0.73) (0.67) (0.74) (0.75) Total dividends (2)(3) Net Asset Value per Security, end of period (2) Ratios/supplemental data $ (0.75) $ (0.76) $ (0.73) $ (0.79) $ (0.81) $ $ $ $ $ Net Asset Value - end of period ($ 000) 4,117 4,017 4,156 5,117 5,436 Number of Securities outstanding - end of period ( 000) Management expense ratio (4) 1.71% 1.71% 1.69% 1.72% 1.72% Management expense ratio including fees/expenses waived/absorbed by Manager (4) 1.71% 1.71% 1.69% 1.72% 1.72% Series T Series net assets per Security (1) Net Asset Value per Security, beg. of period (2) Increase/(decrease) from operations Total revenue $ $ $ $ $ Total expenses (0.24) (0.23) (0.24) (0.24) (0.24) Realized gains/(losses) Unrealized gains/(losses) (0.59) 2.18 (1.19) (0.06) 0.20 Total increase/(decrease) from operations (2) Dividends From income (excluding dividends) $ 0.03 $ 2.50 $ (0.94) $ 0.22 $ 0.56 From dividends (0.06) (0.04) (0.08) (0.05) (0.10) From capital gains Return of capital (0.52) (0.54) (0.47) (0.53) (0.49) Total dividends (2)(3) Net Asset Value per Security, end of period (2) Ratios/supplemental data $ (0.58) $ (0.58) $ (0.55) $ (0.58) $ (0.59) $ $ $ $ $ Net Asset Value - end of period ($ 000) 2,133 2,298 2,292 3,239 3,951 Number of Securities outstanding - end of period ( 000) Management expense ratio (4) 1.83% 1.83% 1.83% 1.84% 1.84% Management expense ratio including fees/expenses waived/absorbed by Manager (4) 1.99% 2.03% 2.00% 2.09% 2.00%

10 Financial highlights Series T Series net assets per Security (1) Net Asset Value per Security, beg. of period (2) $ $ $ $ $ Increase/(decrease) from operations Total revenue Total expenses (0.20) (0.19) (0.20) (0.21) (0.21) Realized gains/(losses) Unrealized gains/(losses) (0.47) 1.83 (1.20) (0.06) 0.16 Total increase/(decrease) from operations (2) Dividends From income (excluding dividends) $ 0.03 $ 2.08 $ (0.98) $ 0.17 $ 0.48 From dividends (0.04) (0.03) (0.06) (0.04) (0.08) From capital gains Return of capital (0.67) (0.69) (0.64) (0.71) (0.70) Total dividends (2)(3) Net Asset Value per Security, end of period (2) Ratios/supplemental data $ (0.71) $ (0.72) $ (0.70) $ (0.75) $ (0.78) $ $ $ $ $ Net Asset Value - end of period ($ 000) 1,290 1,496 1,743 1,932 2,440 Number of Securities outstanding - end of period ( 000) Management expense ratio (4) 1.86% 1.86% 1.86% 1.87% 1.87% Management expense ratio including fees/expenses waived/absorbed by Manager (4) 2.03% 2.07% 2.02% 2.17% 2.08%

11 Financial highlights Fund level ratios Portfolio turnover rate (5) 8.50% 4.91% 6.71% 10.38% 7.02% Trading expense ratio (6) 0.05% 0.07% 0.06% 0.06% 0.06% Management fees The management fees are calculated and accrued daily based on the Net Asset Value of each series of the Fund. For the period ended, a breakdown of the services received in consideration of the management fees as a percentage of the management fees is as follows: Investment management Distribution costs and other fees * Series A 50.86% 49.14% Series F 0.05% 99.95% Series F4 0.05% 99.95% Series F6 0.05% 99.95% Series P 46.26% 53.74% Series PT % 51.89% Series PT % 54.64% Series T % 54.29% Series T % 54.66% * Includes profits and general administration fees. (1) This information is derived from the Fund s audited annual financial statements. For purposes of Securityholder purchases, switches and redemptions, the Net Asset Value is calculated in accordance with the valuation rules as set out in the Fund s Invesco Simplified Prospectus and Invesco Annual Information Form. (2) Net Asset Value per Security and dividends are based on the actual number of Securities outstanding at the relevant time. The increase/(decrease) from operations is calculated based on the average number of Securities outstanding over the period. Therefore, the beginning of period Net Asset Value per Security, the increase/(decrease) from operations and dividends, if any, will not sum to the end of period Net Asset Value per Security. (3) Dividends were paid in cash/reinvested in additional Securities of the Fund, or both. For each series, dividends to Securityholders are calculated based on the number of Securities outstanding on the record date for each dividend of that series. (4) For each series, the management expense ratio is calculated based on the total expenses of that series of the Fund (including Goods and Services Tax, Harmonized Sales Tax and interest, but excluding income taxes, brokerage commissions and other portfolio transaction costs), and the Fund s allocated percentage of underlying Funds expenses, and is expressed as an annualized percentage of daily average Net Asset Value of that series of the Fund during the period. The Fund s allocation for underlying Funds expenses was 0.17% to each series for the period ended. At its sole discretion, the Manager may waive a portion of the management and advisory fees or absorb a portion of the operating expenses of certain Funds. Such waivers and absorptions can be terminated at any time, but can be expected to continue for certain series of the Funds until such time as these series of the Funds are of sufficient size to reasonably absorb all management and advisory fees and expenses incurred in their operation. (5) The Fund s portfolio turnover rate indicates how actively the Fund s portfolio manager/management team manages its portfolio investments and it relates to the portfolio investments of the Fund as a whole. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of its portfolio investments once in the course of the period. In general, the higher a fund s portfolio turnover rate in a period, the greater the trading costs payable by the fund in the period, and the greater the chance of an investor receiving taxable capital gains in the period. There is not necessarily a relationship between a high turnover rate and the performance of a fund. The portfolio turnover rate is calculated based on the lesser of purchases or sales for the period, excluding money market funds and portfolio investments having maturity dates at acquisition of one year or less, divided by the average market value (at last traded market prices) of the portfolio of investments for the period. Where the reporting period is less than or greater than 12 months, the portfolio turnover rate has not been annualized and will not be comparable to the portfolio turnover rate calculated for reported 12-month periods. (6) The trading expense ratio (TER) represents total commissions and other portfolio transaction costs expressed as an annualized percentage of daily average Net Asset Value of the Fund during the period and it relates to the Fund as a whole. The TER has been adjusted to include a proportionate share of the underlying Funds transaction costs.

12 Past performance The following charts show the Fund s past performance. The past performance information shown includes changes in security value; assumes the reinvestment of all dividends; and does not take into account sales, redemption, dividend or optional charges, or income taxes payable by any investor, which would have reduced returns. It is important to note that the past performance of the Fund does not tell you how the Fund will perform in the future. Period-by-period returns The following bar charts show you how the Fund s return changes from period to period. They indicate the percentage change in an investment in Series A, Series F, Series F4, Series F6, Series P, Series PT4, Series PT6, Series T4 and Series T6 Securities from the first day to the last day of each financial year shown, as applicable. For series in existence for less than 10 years, the return for the year of inception is for a partial year from Start Date to the end of the Fund s fiscal year. Series A Series F 30% 30% 20% % % % 10% 0% % % Series F4 Series F6 30% 30% 20% % % % % % % % Series P Series PT4 30% 30% 20% % % % % % % %

13 Series PT6 Series T4 30% 30% 20% % % % % % % % Series T6 30% 20% % % %

14 Benchmarks The broad indices for this Fund are the FTSE Canada Universe Bond Index and the MSCI World Index. The FTSE Canada Universe Bond Index is a market-capitalization-weighted index designed to be a broad measure of the Canadian investment-grade fixed income market. The MSCI World Index is a market-capitalization-weighted index comprising equity securities of companies available in 23 developed countries around the world. The Fund measures its returns against the following blended benchmark: 70% FTSE Canada Universe Bond Index/15% S&P/TSX Composite Index/7.5% MSCI All Country World Index (CAD)/7.5% MSCI All Country World Index (local currency) ( Invesco Intactive Diversified Income Portfolio Class blended benchmark ). While the Fund uses these indices for long-term performance comparisons, it is not managed relative to the composition of the indices. As a result, the Fund may experience periods when its performance differs from these indices. Please see the Results of operations section of this report for a discussion of recent performance results. Annual compound returns This table compares the Fund s annual compound returns for Series A, Series F, Series F4, Series F6, Series P, Series PT4, Series PT6, Series T4 and Series T6 Securities with the Canadian-dollar returns of the Fund s benchmarks for the periods shown ended. Since Start Date 10-year 5-year 3-year 1-year Series A (%) N/A Series F (%) N/A Series F4 (%) Series F6 (%) Series P (%) N/A Series PT4 (%) Series PT6 (%) Series T4 (%) N/A Series T6 (%) N/A FTSE Canada Universe Bond Index (%) MSCI World Index (%) blended benchmark (%) Reflects the benchmark return since the Start Date of the Fund s series for a period of less than 10 years. FTSE Canada Universe Bond Index (%) N/A N/A N/A MSCI World Index (%) N/A N/A N/A blended benchmark (%) 1 N/A N/A N/A Series A Series F Series F4 Series F6 Series P Series PT4 Series PT6 Reflects the benchmark return since the Start Date of the Fund s series for a period of less than 10 years. FTSE Canada Universe Bond Index (%) N/A N/A MSCI World Index (%) N/A N/A blended benchmark (%) 1 N/A N/A Reflects the return since Start Date for each series in existence for a period of less than 10 years. 1 The Fund s benchmark was changed in May In accordance with the requirements of National Instrument Investment Fund Continuous Disclosure, the benchmark returns over all time periods reflect those of the current benchmark only. Series T4 Series T6

15 Summary of investment portfolio as at The Summary of investment portfolio may change due to ongoing portfolio transactions. Updates are available at invesco.ca for quarterly periods where an annual or semi-annual report is not published. For more information, please contact us at or Top 25 holdings of the underlying Fund ** Security/issuer name % of Net Asset Value 1. Invesco Canadian Core Plus Bond Fund 29.94% 2. Invesco Long Term Government Bond Index ETF 10.96% 3. Invesco Canadian Real Return Bond Index Fund 9.72% 4. Invesco Floating Rate Income Fund 6.70% 5. Invesco FTSE RAFI Canadian Index ETF 4.86% 6. Invesco S&P/TSX Composite Low Volatility Index ETF 3.99% 7. Invesco FTSE RAFI Developed Markets ex-u.s. ETF 3.95% 8. Invesco FTSE RAFI U.S. Index ETF 3.61% 9. Invesco FTSE RAFI Emerging Markets ETF 2.77% 10. Invesco EQV Canadian Premier Equity Fund 2.56% 11. Invesco EQV International Equity Fund 2.37% 12. Invesco DB Precious Metals Fund 2.20% 13. Invesco U.S. Companies Fund 1.83% 14. Invesco DB Agriculture Fund 1.82% 15. Invesco S&P/TSX Composite ESG Index ETF 1.60% 16. Invesco Global Companies Fund 1.56% 17. Invesco International Companies Fund 1.46% 18. Invesco DB Base Metals Fund 1.31% 19. Invesco DB Energy Fund 1.27% 20. Invesco Emerging Markets Select Pool 1.23% 21. Invesco Global Focus Fund 1.15% 22. Invesco Main Street U.S. Small Cap Class 1.08% 23. Invesco Global Real Estate Fund 0.97% 24. Invesco S&P Emerging Markets Low Volatility ETF 0.56% 25. Cash and cash equivalents º 0.24% Aggregate % of top holdings 99.71% Asset class allocation of the Fixed-income mutual funds 46.36% underlying Fund ** Equity exchange-traded funds (ETFs) 21.34% Equity mutual funds/pools 14.21% Fixed-income exchange-traded funds (ETFs) 10.96% Commodities exchange-traded funds (ETFs) 6.60% Other net assets 0.29% Cash, cash equivalents and money market funds º 0.24% Total asset class allocation % Geographic allocation of the Canada 63.63% underlying Fund ** Global 22.72% United States 13.12% Other net assets 0.29% Cash, cash equivalents and money market funds º 0.24% Total geographic allocation % ** In accordance with the Canadian Securities Administrators requirements, as invests a substantial part of its assets in Invesco Intactive Diversified Income Portfolio (the "underlying Fund"), listed above are the largest holdings and the asset class and geographic allocations of the underlying Fund. The prospectus and other information about the underlying Fund are available on SEDAR. º Cash and cash equivalents include Canadian and foreign cash, as well as all indebtedness maturing within 90 days from the date of acquisition.

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19 About Invesco Ltd. Invesco Ltd. (Ticker NYSE: IVZ) is a global independent investment management firm dedicated to delivering an investment experience that helps people get more out of life. Our distinctive investment teams deliver a comprehensive range of active, passive and alternative investment capabilities. For more information, visit invesco.com.

20 Contact us Invesco 120 Bloor Street East, Suite 700 Toronto, Ontario M4W 1B7 Telephone: or Facsimile: or invesco.ca The Fund s management reports of fund performance and financial statements will be available online at invesco.ca or at sedar.com. If you have any questions, please call us at or us at inquiries@invesco.ca. Invesco is a registered business name of Invesco Canada Ltd. * Invesco, Platform Traded Fund TM, PTF TM and all associated trademarks are trademarks of Invesco Holding Company Limited, used under licence. Invesco Canada Ltd., 2022 ARMDPCE(06/22) 2651