Dear Fellow Shareholders:
The Invesco Funds Board has worked on a variety of issues over the last several months, and I'd like to take this opportunity to discuss two that affect you and our fellow fund shareholders.
The first issue on which your Board has been working is our annual review of the funds' advisory and sub-advisory contracts with Invesco Advisers and its affiliates. This annual review, which is required by the Investment Company Act of 1940, focuses on the nature and quality of the services Invesco provides as advisor to the Invesco Funds and the reasonableness of the fees that it charges for those services. Each year, we spend months reviewing detailed information that we request from Invesco that allows us to evaluate its services and fees. We also use information from many independent sources, including materials provided by the independent Senior Officer of the Invesco Funds, who reports directly to the independent Trustees on the Board. Additionally, we meet with independent legal counsel and review performance and fee data prepared by Lipper Inc., an independent, third-party firm widely recognized as a leader in its field.
I'm pleased to report that the Board determined in June that renewing the investment advisory agreement and the sub-advisory contracts with Invesco Advisers and its affiliates would serve the best interests of each fund and its shareholders.
The second area of focus to highlight is the Board's efforts to ensure that we provide a lineup of funds that allow financial advisors to build portfolios that meet shareholders' changing financial needs and goals. Today, more and more investors are reaching, or approaching, retirement. But interest rates remain low, making it difficult for many investors to generate the income they need, or will soon need, in their retirement years.
The members of your Board think about these things, too, and we've worked with Invesco Advisers to provide more income-generating options in the Invesco Funds lineup to help shareholders potentially meet their income needs. Your Board recently approved changes to three existing equity mutual funds, increasing their focus on generating income while also seeking to provide long-term growth of capital.
As a result of these changes, the funds and their respective management teams now have more flexibility to invest in the types of securities that could meet investors' growing need for income generation, and in some cases, also help investors diversify their sources of income. These equity funds complement an array of fixed-income, asset allocation and alternative investment options in the Invesco Funds lineup designed to accommodate a variety of risk tolerances.
Be assured that your Board will continue working on behalf of fund shareholders, keeping your needs and interests uppermost in our minds.
As always, please contact me at firstname.lastname@example.org with any questions or concerns you may have. On behalf of the Board, we look forward to continuing to represent your interests and serving your needs.
Bruce L. Crockett
Invesco Funds Board of Trustees
August 31, 2013