|
|
|
|
OMB APPROVAL
|
|
|
OMB Number: 3235-0570
|
|
|
Expires: January 31, 2014
|
|
|
Estimated average burden
hours per response: 20.6
|
|
|
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number
811-07560
Invesco Quality Municipal Securities
(Exact name of registrant as specified in charter)
1555 Peachtree Street, N.E., Atlanta, Georgia 30309
(Address of principal executive offices) (Zip code)
Philip A. Taylor 1555 Peachtree Street, N.E., Atlanta, Georgia 30309
(Name and address of agent for service)
Registrants telephone number, including area code: (
713) 626-1919
Date of fiscal year end:
2/28
Date of reporting period:
2/28/11
Item 1. Reports to Stockholders.
|
|
|
|
Annual Report to Shareholders
|
|
February 28, 2011
|
|
Invesco Quality Municipal Securities
NYSE: IQM
|
|
|
|
2
|
|
Letters to Shareholders
|
4
|
|
Performance Summary
|
4
|
|
Management Discussion
|
6
|
|
Supplemental Information
|
7
|
|
Dividend Reinvestment Plan
|
8
|
|
Schedule of Investments
|
16
|
|
Financial Statements
|
19
|
|
Notes to Financial Statements
|
26
|
|
Financial Highlights
|
27
|
|
Auditors Report
|
28
|
|
Tax Information
|
T-1
|
|
Trustees and Officers
|
Letters to Shareholders
Philip Taylor
Dear Shareholders:
Enclosed is important information about your Fund and its performance.
Ive always believed that companies have an obligation to communicate regularly with their clients,
and I believe that obligation is especially critical in the investment industry.
Our website invesco.com/us offers timely market updates and commentary from many of our
portfolio managers and other investment professionals, as well as quarterly messages from me. At
invesco.com/us, you also can obtain information about your account at any hour of the day or night.
I invite you to visit and explore the tools and information we offer.
Invescos commitment to investment excellence
As a strong organization with a single focus investment management Invesco today offers
investment capabilities to meet the needs of virtually any investor.
Investment excellence is our goal. Let me explain what that means. All of our funds are managed by
specialized teams of investment professionals. Each team has a discrete investment perspective and
philosophy, and all follow disciplined, repeatable processes governed by strong risk oversight. Our
investment-centric culture provides an environment that seeks to reduce distractions, allowing our
fund managers to concentrate on what they do best manage your money.
The importance of investment management expertise is obvious given the markets weve experienced
over the last two to three years. Weve seen that investment strategies can outperform or
underperform their benchmark indexes for a variety of reasons, including where we are in the market
cycle, and whether prevailing economic conditions are favorable or unfavorable for that strategy.
Thats why no investment strategy can guarantee top-tier performance at all times. What investors
can expect, and what Invesco offers, are funds that are managed according to their stated
investment objectives and strategies, with robust risk oversight using consistent, repeatable
investment processes that dont change as short-term external conditions change investments
managed for the long term. This disciplined approach cant guarantee a profit; no investment can do
that, since all involve some measure of risk. But it can ensure that your money is managed the way
we said it would be.
This adherence to stated investment objectives and strategies allows your financial advisor to
build a diversified portfolio that meets your individual risk tolerance and financial goals. It
also means that when your goals change, your financial advisor will be able to find an appropriate
investment option to meet your needs.
Invescos commitment to you
Invescos commitment to you remains stronger than ever. Its one of the reasons weve grown to
become one of the worlds largest asset managers.
If you have questions about your account, please contact one of our client service representatives
at 800 341 2929. If you have a general Invesco-related question or comment for me, I invite you to
email me directly at phil@invesco.com.
I want to thank you for placing your trust in us. All of us at Invesco look forward to serving your
investment management needs for many years to come. Thank you for investing with us.
Sincerely,
Philip Taylor
Senior Managing Director, Invesco Ltd.
2
Invesco Quality Municipal Securities
Bruce Crockett
Dear Fellow Shareholders:
With 2010 behind us, now is a good time to review our portfolios and ensure that we are adhering to
a long-term, diversified investment strategy, which Ive mentioned in previous letters. The year
was notable for a number of reasons, but Im sure most of us are grateful for a return to more
stable markets and growing signs that the worst of the economic crisis is behind us.
Your Board continued to oversee the Invesco Funds with a strong sense of responsibility for your
savings and a deep appreciation for your continued trust. As always, we worked throughout 2010 to
manage costs and ensure Invesco continued to place investor interests first.
Im pleased to report that the latest report from Morningstar affirmed the work weve done and
included a number of positive comments regarding your Boards oversight of the Invesco Funds.
As background, Morningstar is a leading independent provider of investment research in North
America, Europe, Australia and Asia. Morningstar stated, A fund boards duty is to represent the
interests of fund shareholders, ensuring that the funds that it oversees charge reasonable fees and
are run by capable advisors with a sound investment process.
Morningstar maintained your Fund
Boards A grade for Board Quality, praising the Board for taking meaningful steps in recent
years to act in fund shareholders interests.
1
These steps included becoming much more
proactive and vocal in overseeing how Invesco votes the funds shareholders proxies and requiring
each fund trustee to invest more than one years board compensation in Invesco funds, further
aligning our interests with those of our shareholders. Morningstar also cited the work Ive done to
make myself more available to fund shareholders via email.
I am also pleased that Morningstar recognized the effort and the Fund Boards efforts over the past
several years to work together with management at Invesco to enhance performance and sharpen the
focus on investors.
Let me close by wishing you a happy and prosperous new year. As always, youre welcome to contact
me at bruce@brucecrockett.com with any questions or concerns you have. We look forward to
representing you and serving you in the new year.
Sincerely,
Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees
|
|
|
1
|
|
Among the criteria Morningstar considers when evaluating a fund board are the degree to which
the board is independent of the fund company; board members financial interests are aligned with
those of fund shareholders; the board acts in fund shareholders interests; and the board works
constructively with company management and investment personnel. Morningstar first awarded an A
rating to the Invesco Funds board on September 13, 2007; that rating has been maintained in
subsequent reports, the most recent of which was released December 17, 2010. Ratings are subject to
change, usually every 12 to 24 months. Morningstar ratings range from A to F.
|
3
Invesco Quality Municipal Securities
Managements Discussion of Trust Performance
Performance summary
Please note that the fiscal year-end for Invesco Quality Municipal Securities has changed to
February 28. Therefore, the period covered by this report is from October 31, 2010, the date of the
last annual report, through February 28, 2011, the Trusts new fiscal year-end.
The Trusts return can be calculated based on either the market price or the net asset value (NAV)
of its shares. NAV per share is determined by dividing the value of the Trusts portfolio
securities, cash and other assets, less all liabilities and preferred shares, by the total number
of common shares outstanding. Market price reflects the supply and demand for Trust shares. As a
result, the two returns can differ, as they did during the reporting period. A main contributor to
the Trusts return on an NAV basis was its exposure to state general obligation bonds.
Performance
Cumulative total returns, 10/31/10 to 2/28/11
|
|
|
|
|
Trust at NAV
|
|
|
-6.78
|
%
|
|
Trust at Market Value
|
|
|
-9.67
|
|
|
|
Market Price Discount to NAV as of 2/28/11
|
|
|
-6.50
|
|
|
The performance data quoted represent past performance and cannot guarantee comparable future
results; current performance may be lower or higher. Investment return, net asset value and common
share market price will fluctuate so that you may have a gain or loss when you sell shares. Please
visit invesco.com/performance for the most recent month-end performance. Performance figures
reflect Trust expenses, the reinvestment of distributions (if any) and changes in net asset value
(NAV) for performance based on NAV and changes in market price for performance based on market
price.
Since the Trust is a closed-end management investment company, shares of the Trust may trade at a
discount or premium from the NAV. This characteristic is separate and distinct from the risk that
NAV could decrease as a result of investment activities and may be a greater risk to investors
expecting to sell their shares after a short time. The Trust cannot predict whether shares will
trade at, above or below NAV. The Trust should not be viewed as a vehicle for trading purposes. It
is designed primarily for risk-tolerant long-term investors.
How we invest
We seek to provide investors with current income exempt from federal income tax, primarily by
investing in a diversified portfolio of investment grade tax-exempt municipal securities.
We seek to achieve the Trusts investment objective by investing primarily in municipal obligations
that are rated investment grade by at least one nationally recognized statistical rating
organization. Municipal obligations include municipal bonds, municipal notes and municipal
commercial paper. The Trust may invest in taxable investment grade securities, or if not rated,
securities we determine to be of comparable quality. From time to time,
we may invest in municipal securities that pay interest that is subject to the federal alternative
minimum tax.
We employ a bottom-up, research-driven approach to identify securities that have attractive
risk/reward characteristics for the sectors in which we invest. We also integrate macroeconomic
analysis and forecasting into our evaluation and ranking of various sectors and individual
securities. Finally, we employ leverage in an effort to enhance the Trusts income and total
return.
Sell decisions are based on:
n
|
|
A deterioration or likely deterioration of an individual issuers capacity to meet its debt
obligations on a timely basis.
|
Portfolio Composition
By credit sector, based on total investments
|
|
|
|
|
Revenue Bonds
|
|
|
78.4
|
%
|
|
General Obligation Bonds
|
|
|
17.3
|
|
|
Pre-refunded Bonds
|
|
|
2.7
|
|
|
Other
|
|
|
1.6
|
|
|
|
|
|
|
Total Net Assets Applicable to
Common Shares
|
|
$182.1 million
|
|
|
|
|
|
Total Number of Holdings
|
|
|
173
|
Top Five Fixed Income Holdings
|
|
|
|
|
|
|
|
|
|
1.
|
|
|
Fairfax (County of)
|
|
|
5.5
|
|
|
|
2.
|
|
|
Honolulu (City & County of)
|
|
|
4.6
|
|
|
|
3.
|
|
|
Illinois Metropolitan Pier & Exposition
Authority
|
|
|
3.7
|
|
|
|
4.
|
|
|
Tobacco Settlement Financing Corp.
|
|
|
3.5
|
|
|
|
5.
|
|
|
Chicago (City of) OHare International
Airport
|
|
|
3.2
|
|
The Trusts holdings are subject to change, and there is no assurance that the Trust will continue
to hold any particular security.
n
|
|
A deterioration or likely deterioration of the broader fundamentals of a particular industry
or sector.
|
n
|
|
Opportunities in the secondary or primary market to exchange into a security with better relative
value.
|
Market conditions and your Trust
In the U.S. and most of the developed world, a gradual and somewhat lackluster recovery
continued, with central banks keeping interest rates at low levels and with few of them withdrawing
their quantitative easing measures. This helped private sector companies improve their balance
sheets and earnings following the global financial crisis that began to dissipate in early 2009.
However, investor skepticism of global governments abilities to retire huge amounts of debt
without affecting economic growth rates caused sovereign debt distress (especially for eurozone
countries) and became a focal point of investor concern.
In the U.S., economic recovery was present, although the pace was modest as stubbornly high
unemployment and export weakness continued to weigh on the economy. Real gross domestic product
(GDP), the broadest measure of overall U.S. economic activity, increased at an annual rate of 3.1%
in the fourth quarter of 2010, a marked improvement from the 2.6% decrease in 2009.
1
The
U.S. Federal Reserve (the Fed) maintained a very accommodative monetary policy throughout the
period, with the federal funds target rate unchanged in a range of zero to 0.25%.
2
The
Fed recently described its view of the U.S. economy by stating: The Committee will maintain the
target range for the federal funds rate at 0 to
1
/
4
percent and continues to anticipate that economic
conditions, including low rates of resource utilization, subdued inflation trends, and stable
inflation expectations, are likely to warrant exceptionally low levels for the federal funds rate
for an extended period.
2
4
Invesco Quality Municipal Securities
During the four-month period covered by this report, municipal bond mutual funds experienced
extensive net outflows. Market volatility was heightened across the municipal asset class as U.S.
Treasury yields increased and the market was flooded with new issuance during the last two months
of 2010 in anticipation of the Build America Bond (BAB) program ending. These factors contributed
to rising investor fears regarding the health of municipal finances, leading to redemptions and
lower municipal bond prices.
The Trusts exposure to the 12- to 20-year part of the yield curve and the long end (20+ years) of
the yield curve detracted from returns as yields increased during most of the reporting period.
Some of our yield curve and duration positioning was obtained through the use of inverse floating
rate securities. Inverse floating rate securities are instruments which have an inverse
relationship to a referenced interest rate. Inverse floating rate securities can be a more
efficient way to manage duration, yield curve exposure and credit exposure and potentially can
enhance yield.
Sector performance was driven by quality spread widening for most of the reporting period before
tightening in February, largely due to increased volatility and higher tax-exempt issuance. As a
result, BBB-rated and lower credit quality sectors underperformed and detracted from Trust
performance as we held exposure to these market segments.
Our exposure to higher education bonds and state general obligation bonds contributed to returns
for the reporting period.
Our allocation to local general obligation, health care and tobacco bonds detracted from
performance during the reporting period.
The Trust employs leverage in an effort to enhance income and total return. Leverage simply
magnifies the performance of the Trust, either up or down, and can be implemented in several ways.
The Trust achieves a leveraged position by both borrowings and the use of financial instruments,
which include auction rate preferred shares. During the reporting period, the use of leverage
detracted from returns.
As stated earlier, the Trust trades at a market price and also has an NAV. For the four-month
reporting period, the Trust traded at a discount to its NAV.
Thank you for investing in Invesco Quality Municipal Securities and for sharing our long-term
investment horizon.
1 Bureau of Economic Analysis
2 U.S. Federal Reserve
The views and opinions expressed in managements discussion of Trust performance are those of
Invesco Advisers, Inc. These views and opinions are subject to change at any time based on factors
such as market and economic conditions. These views and opinions may not be relied upon as
investment advice or recommendations, or as an offer for a particular security. The information is
not a complete analysis of every aspect of any market, country, industry, security or the Trust.
Statements of fact are from sources considered reliable, but Invesco Advisers, Inc. makes no
representation or warranty as to their completeness or accuracy. Although historical performance is
no guarantee of future results, these insights may help you understand our investment management
philosophy.
See important Trust and, if applicable, index disclosures later in this report.
Thomas Byron
Portfolio manager, is manager of Invesco Quality Municipal Securities. Mr. Byron joined Invesco in
2010.
He was associated with the Trusts previous investment adviser or its investment advisory
affiliates in an investment management capacity from 1981 to 2010 and began managing the Trust in
2009. Mr. Byron earned a B.S. in finance from Marquette University and an M.B.A. in finance from
DePaul University.
Robert Stryker
Chartered Financial Analyst, portfolio manager, is manager of Invesco Quality Municipal Securities.
Mr. Stryker
joined Invesco in 2010. He was associated with the Trusts previous investment adviser or its
investment advisory affiliates in an investment management capacity from 1994 to 2010 and began
managing the Trust in 2009. Mr. Stryker earned a B.S. in finance from the University of Illinois,
Chicago.
Robert Wimmel
Portfolio manager, is manager of Invesco Quality Municipal Securities. Mr. Wimmel joined
Invesco in
2010.
He was associated with the Trusts previous investment adviser or its investment advisory
affiliates in an investment management capacity from 1996 to 2010 and began managing the Trust in
2009. Mr. Wimmel earned a B.A. in anthropology from the University of Cincinnati and an M.A. in
economics from the University of Illinois, Chicago.
5
Invesco Quality Municipal Securities
Invesco Quality Municipal Securities investment objective is to provide current income
which is exempt from federal income tax.
n
|
|
Unless otherwise stated, information presented in this report is as of February 28, 2011,
and is based on total net assets applicable to common shares.
|
|
n
|
|
Unless otherwise noted, all data provided by Invesco.
|
|
n
|
|
To access your Trusts reports, visit invesco.com/fundreports.
|
Principal risks of investing in the Trust
n
|
|
The prices of securities held by the Trust may decline in response to market risks.
|
|
n
|
|
Other risks are described and defined later in this report.
|
Other information
n
|
|
The Chartered Financial Analyst
®
(CFA
®
) designation is globally
recognized and attests to a charter-holders success in a rigorous and comprehensive study program
in the field of investment management and research analysis.
|
|
n
|
|
The returns shown in managements discussion of Trust performance are based on net asset values
calculated for shareholder transactions. Generally accepted accounting principles require
adjustments to be made to the net assets of the Trust at period end for financial reporting
purposes, and as such, the net asset values for shareholder transactions and the returns based on
those net asset values may differ from the net asset values and returns reported in the Financial
Highlights.
|
NOT FDIC INSURED
|
MAY LOSE VALUE
|
NO BANK GUARANTEE
6
Invesco Quality Municipal Securities
Dividend Reinvestment Plan
The dividend reinvestment plan (the Plan) offers you a prompt and simple way to reinvest your
dividends and capital gains distributions (Distributions) into additional shares of your Trust.
Under the Plan, the money you earn from dividends and capital gains distributions will be
reinvested automatically in more shares of your Trust, allowing you to potentially increase your
investment over time.
Plan benefits
n
|
|
Add to your account
|
|
|
|
You may increase the amount of shares in your Trust easily and automatically with the Plan.
|
|
n
|
|
Low transaction costs
|
|
|
|
Transaction costs are low because the new shares are bought in blocks and the brokerage commission
is shared among all participants.
|
|
n
|
|
Convenience
|
|
|
|
You will receive a detailed account statement from Computershare Trust Company, N.A. (the Agent)
which administers the Plan. The statement shows your total Distributions, date of investment,
shares acquired, and price per share, as well as the total number of shares in your reinvestment
account. You can also access your account via the Internet. To do this, please go to
invesco.com/us.
|
|
n
|
|
Safekeeping
|
|
|
|
The Agent will hold the shares it has acquired for you in safekeeping.
|
How to participate in the Plan
If you own shares in your own name, you can participate directly in the Plan. If your shares
are held in street name in the name of your brokerage firm, bank, or other financial
institution you must instruct that entity to participate on your behalf. If they are unable to
participate on your behalf, you may request that they reregister your shares in your own name so
that you may enroll in the Plan.
How to enroll
To enroll in the Plan, please read the Terms and Conditions in the Plan brochure. You can
enroll in the Plan by visiting invesco.com/us, calling toll-free 800 341 2929 or notifying us in
writing at Invesco Closed-End Funds, Computershare Trust Company, N.A., P.O. Box 43078, Providence,
RI 02940-3078. Please include your Trust name and account number and ensure that all shareholders
listed on the account sign these written instructions. Your participation in the Plan will begin
with the next Distribution payable after the Agent receives your authorization, as long as they
receive it before the record date, which is generally 10 business days before such Distributions
are paid. If your authorization arrives after such record date, your participation in the Plan will
begin with the following Distributions.
How the Plan Works
If you choose to participate in the Plan, whenever your Trust declares such Distributions, it
will be invested in additional shares of your Trust that are purchased on the open market.
Costs of the Plan
There is no direct charge to you for reinvesting Distributions because the Plans fees are paid
by your Trust. However, you will pay your portion of any per share fees incurred when the new
shares are purchased on the open market. These fees are typically less than the standard brokerage
charges for individual transactions, because shares are purchased for all Participants in blocks,
resulting in lower commissions for each individual Participant. Any per share or service fees are
averaged into the purchase price. Per share fees include any applicable brokerage commissions the
Agent is required to pay.
Tax implications
The automatic reinvestment of Distributions does not relieve you of any income tax that may be
due on Distributions. You will receive tax information annually to help you prepare your federal
income tax return.
Invesco does not offer tax advice. The tax information contained herein is general and is not
exhaustive by nature. It was not intended or written to be used, and it cannot be used, by any
taxpayer for avoiding penalties that may be imposed on the taxpayer under U.S. federal tax laws.
Federal and state tax laws are complex and constantly changing. Shareholders should always consult
a legal or tax adviser for information concerning their individual situation.
How to withdraw from the Plan
You may withdraw from the Plan at any time by calling 800 341 2929, visiting invesco.com/us or
by writing to Invesco Closed-End Funds, Computershare Trust Company, N.A., P.O. Box 43078,
Providence, RI 02940-3078. Simply indicate that you would like to withdraw from the Plan, and be
sure to include your Trust name and account number. Also, ensure that all shareholders listed on
the account have signed these written instructions. If you withdraw, you have three options with
regard to the shares held in the Plan:
|
1.
|
|
If you opt to continue to hold your non-certificated shares, whole shares will be held by the
Agent and fractional shares will be sold. The proceeds will be sent via check to your address of
record after deducting per share fees. Per share fees include any applicable brokerage commissions
the Agent is required to pay.
|
|
2.
|
|
If you opt to sell your shares through the Agent, we will sell all full and fractional shares
and send the proceeds via check to your address of record after deducting per share fees. Per share
fees include any applicable brokerage commissions the Agent is required to pay.
|
|
|
3.
|
|
You may sell your shares through your financial adviser through the Direct Registration System
(DRS). DRS is a service within the securities industry that allows Trust shares to be held in your
name in electronic format. You retain full ownership of your shares, without having to hold a stock
certificate. You should contact your financial adviser to learn more about any restrictions or fees
that may apply.
|
To obtain a complete copy of the Dividend Reinvestment Plan, please call our Client Services
department at 800 341 2929 or visit invesco.com/us.
7
Invesco Quality Municipal Securities
Schedule
of Investments
February 28,
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal
|
|
|
|
|
Interest
|
|
Maturity
|
|
Amount
|
|
|
|
|
Rate
|
|
Date
|
|
(000)
|
|
Value
|
|
Municipal Obligations150.12%
|
|
|
|
|
|
|
|
|
|
|
|
|
Alabama0.30%
|
|
|
|
|
|
|
|
|
|
|
|
|
Birmingham (City of) Airport Authority; Series 2010,
Airport RB
(INSAGM)
(a)
|
|
|
5.25
|
%
|
|
|
07/01/30
|
|
|
$
|
550
|
|
|
$
|
555,830
|
|
|
Alaska0.75%
|
|
|
|
|
|
|
|
|
|
|
|
|
Northern Tobacco Securitization Corp.; Series 2006 A,
Tobacco Settlement Asset-Backed RB
|
|
|
5.00
|
%
|
|
|
06/01/46
|
|
|
|
2,300
|
|
|
|
1,360,519
|
|
|
Arizona3.45%
|
|
|
|
|
|
|
|
|
|
|
|
|
Arizona (State of); Series 2008 A, COP
(INSAGM)
(a)
|
|
|
5.00
|
%
|
|
|
09/01/24
|
|
|
|
1,010
|
|
|
|
1,023,877
|
|
|
Maricopa (County of) Pollution Control Corp. (Arizona Public
Service Co. Palo Verde); Series 2009 A, Ref.
PCR
(b)(c)
|
|
|
6.00
|
%
|
|
|
05/01/14
|
|
|
|
425
|
|
|
|
446,871
|
|
|
Pima (County of) Industrial Development Authority (Tucson
Electric Power Co.); Series 2010 A, IDR
|
|
|
5.25
|
%
|
|
|
10/01/40
|
|
|
|
675
|
|
|
|
605,684
|
|
|
Salt River Project Agricultural Improvement & Power
District; Series 2002 B, Electric System
RB
(b)(d)(e)
|
|
|
5.00
|
%
|
|
|
01/01/13
|
|
|
|
3,890
|
|
|
|
4,199,605
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,276,037
|
|
|
California23.05%
|
|
|
|
|
|
|
|
|
|
|
|
|
Alhambra Unified School District (Election of 2004);
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series 2009 B, Unlimited Tax CAB GO Bonds
(INSAGC)
(a)(f)
|
|
|
0.00
|
%
|
|
|
08/01/35
|
|
|
|
1,010
|
|
|
|
191,860
|
|
|
Series 2009 B, Unlimited Tax CAB GO Bonds
(INSAGC)
(a)(f)
|
|
|
0.00
|
%
|
|
|
08/01/36
|
|
|
|
1,635
|
|
|
|
288,888
|
|
|
Alvord Unified School District (Election of 2007);
Series 2008 A, Unlimited Tax GO Bonds
(INSAGM)
(a)
|
|
|
5.00
|
%
|
|
|
08/01/24
|
|
|
|
765
|
|
|
|
774,287
|
|
|
Beverly Hills Unified School District (Election of 2008);
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series 2009, Unlimited Tax CAB GO
Bonds
(f)
|
|
|
0.00
|
%
|
|
|
08/01/26
|
|
|
|
710
|
|
|
|
289,559
|
|
|
Series 2009, Unlimited Tax CAB GO
Bonds
(f)
|
|
|
0.00
|
%
|
|
|
08/01/31
|
|
|
|
1,370
|
|
|
|
384,395
|
|
|
California (State of) Health Facilities Financing Authority
(Cedars-Sinai Medical Center); Series 2005, Ref. RB
|
|
|
5.00
|
%
|
|
|
11/15/34
|
|
|
|
545
|
|
|
|
489,802
|
|
|
California (State of) Public Works Board (Department of Mental
Health Coalinga State Hospital); Series 2004 A,
Lease RB
|
|
|
5.00
|
%
|
|
|
06/01/24
|
|
|
|
5,000
|
|
|
|
4,787,750
|
|
|
California (State of);
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series 2003, Unlimited Tax GO Bonds
|
|
|
5.00
|
%
|
|
|
02/01/32
|
|
|
|
3,000
|
|
|
|
2,863,170
|
|
|
Series 2005, Various Purpose Unlimited Tax GO Bonds
|
|
|
5.00
|
%
|
|
|
03/01/27
|
|
|
|
1,800
|
|
|
|
1,807,506
|
|
|
Clovis Unified School District (Election of 2004);
Series 2004 A, Unlimited Tax GO Bonds
(INSNATL)
(a)(f)
|
|
|
0.00
|
%
|
|
|
08/01/29
|
|
|
|
355
|
|
|
|
108,268
|
|
|
Dry Creek Joint Elementary School District (Election of 2008);
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series 2009 E, Unlimited Tax CAB GO
Bonds
(f)
|
|
|
0.00
|
%
|
|
|
08/01/43
|
|
|
|
2,690
|
|
|
|
281,831
|
|
|
Series 2009 E, Unlimited Tax CAB GO
Bonds
(f)
|
|
|
0.00
|
%
|
|
|
08/01/44
|
|
|
|
4,825
|
|
|
|
468,508
|
|
|
El Segundo Unified School District (Election of 2008);
Series 2009 A, Unlimited Tax CAB GO
Bonds
(f)
|
|
|
0.00
|
%
|
|
|
08/01/32
|
|
|
|
1,980
|
|
|
|
463,360
|
|
|
Golden State Tobacco Securitization Corp.;
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series 2005 A, Enhanced Tobacco Settlement
Asset-Backed RB
(INSAMBAC)
(a)
|
|
|
5.00
|
%
|
|
|
06/01/29
|
|
|
|
2,000
|
|
|
|
1,783,820
|
|
|
Series 2007
A-1,
Sr.
Tobacco Settlement Asset-Backed RB
|
|
|
5.13
|
%
|
|
|
06/01/47
|
|
|
|
2,000
|
|
|
|
1,199,900
|
|
|
Series 2007
A-1,
Sr.
Tobacco Settlement Asset-Backed RB
|
|
|
5.75
|
%
|
|
|
06/01/47
|
|
|
|
1,400
|
|
|
|
934,864
|
|
|
Indio (City of) Redevelopment Agency (Indio Merged
Redevelopment);
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series 2008 A, Sub. Tax Allocation RB
|
|
|
5.00
|
%
|
|
|
08/15/23
|
|
|
|
310
|
|
|
|
290,606
|
|
|
Series 2008 A, Sub. Tax Allocation RB
|
|
|
5.00
|
%
|
|
|
08/15/24
|
|
|
|
310
|
|
|
|
284,859
|
|
|
Los Angeles (City of) Department of Water & Power;
Series 2004 C, Water System RB
(INSNATL)
(a)(d)
|
|
|
5.00
|
%
|
|
|
07/01/25
|
|
|
|
5,000
|
|
|
|
5,175,600
|
|
|
Los Angeles Community College District; Series 2003 B,
Unlimited Tax GO Bonds
(INSAGM)
(a)
|
|
|
5.00
|
%
|
|
|
08/01/27
|
|
|
|
4,000
|
|
|
|
4,018,400
|
|
|
Menifee Union School District (Election of 2008);
Series 2009 C, Unlimited Tax CAB GO Bonds
(INSAGC)
(a)(f)
|
|
|
0.00
|
%
|
|
|
08/01/34
|
|
|
|
1,010
|
|
|
|
210,403
|
|
|
Milpitas (City of) Redevelopment Agency; Series 2003, Tax
Allocation RB
(INSNATL)
(a)
|
|
|
5.00
|
%
|
|
|
09/01/22
|
|
|
|
3,040
|
|
|
|
2,912,898
|
|
|
Moreland School District (Crossover); Series 2014 C,
Ref. Unlimited Tax CAB GO Bonds
(INSAMBAC)
(a)(f)
|
|
|
0.00
|
%
|
|
|
08/01/29
|
|
|
|
1,120
|
|
|
|
324,598
|
|
|
Oak Grove School District (Election of 2008);
Series 2009 A, Unlimited Tax CAB GO
Bonds
(f)
|
|
|
0.00
|
%
|
|
|
08/01/28
|
|
|
|
815
|
|
|
|
257,181
|
|
|
See accompanying Notes to Financial Statements which are an
integral part of the financial statements.
8 Invesco
Quality Municipal Securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal
|
|
|
|
|
Interest
|
|
Maturity
|
|
Amount
|
|
|
|
|
Rate
|
|
Date
|
|
(000)
|
|
Value
|
|
California(continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Patterson Joint Unified School District (Election of 2008);
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series 2009 B, Unlimited Tax CAB GO Bonds
(INSAGM)
(a)(f)
|
|
|
0.00
|
%
|
|
|
08/01/36
|
|
|
$
|
4,025
|
|
|
$
|
708,561
|
|
|
Series 2009 B, Unlimited Tax CAB GO Bonds
(INSAGM)
(a)(f)
|
|
|
0.00
|
%
|
|
|
08/01/37
|
|
|
|
1,590
|
|
|
|
258,105
|
|
|
Poway Unified School District (Election of 2008School
Facilities Improvement District
No. 2007-1);
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series 2009 A, Unlimited Tax CAB GO
Bonds
(f)
|
|
|
0.00
|
%
|
|
|
08/01/27
|
|
|
|
2,040
|
|
|
|
697,700
|
|
|
Series 2009 A, Unlimited Tax CAB GO
Bonds
(f)
|
|
|
0.00
|
%
|
|
|
08/01/31
|
|
|
|
2,545
|
|
|
|
640,500
|
|
|
San Diego (County of) (Burnham Institute for Medical Research);
Series 2006, COP
|
|
|
5.00
|
%
|
|
|
09/01/34
|
|
|
|
1,000
|
|
|
|
770,020
|
|
|
San Diego (County of) Water Authority; Series 2004 A,
Water Revenue COP
(INSAGM)
(a)(d)
|
|
|
5.00
|
%
|
|
|
05/01/29
|
|
|
|
4,240
|
|
|
|
4,250,006
|
|
|
San Francisco (City & County of) (Laguna Honda
Hospital); Series 2008 R-3, Ref. Unlimited Tax GO Bonds
(INSAGC)
(a)(d)
|
|
|
5.00
|
%
|
|
|
06/15/28
|
|
|
|
540
|
|
|
|
542,549
|
|
|
Southern California Tobacco Securitization Authority (San Diego
County Tobacco Asset Securitization Corp.); Series 2006
A-1,
Sr.
Tobacco Settlement Asset-Backed RB
|
|
|
5.00
|
%
|
|
|
06/01/37
|
|
|
|
2,000
|
|
|
|
1,304,640
|
|
|
Twin Rivers Unified School District; Series 2009, Unlimited
Tax CAB GO
BAN
(f)
|
|
|
0.00
|
%
|
|
|
04/01/14
|
|
|
|
850
|
|
|
|
772,064
|
|
|
William S. Hart Union High School District (Election of 2008);
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series 2009 A, Unlimited Tax CAB GO
Bonds
(f)
|
|
|
0.00
|
%
|
|
|
08/01/32
|
|
|
|
1,170
|
|
|
|
257,049
|
|
|
Series 2009 A, Unlimited Tax CAB GO
Bonds
(f)
|
|
|
0.00
|
%
|
|
|
08/01/33
|
|
|
|
5,725
|
|
|
|
1,171,908
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
41,965,415
|
|
|
Colorado2.35%
|
|
|
|
|
|
|
|
|
|
|
|
|
Arkansas River Power Authority; Series 2006, Power
Improvement RB
(INSSGI)
(a)
|
|
|
5.25
|
%
|
|
|
10/01/40
|
|
|
|
1,840
|
|
|
|
1,497,319
|
|
|
Colorado (State of) Health Facilities Authority (Catholic Health
Initiatives); Series 2009 A, RB
|
|
|
5.00
|
%
|
|
|
07/01/39
|
|
|
|
2,000
|
|
|
|
1,822,440
|
|
|
Public Authority for Colorado Energy; Series 2008, Natural
Gas Purchase RB
|
|
|
6.25
|
%
|
|
|
11/15/28
|
|
|
|
165
|
|
|
|
170,009
|
|
|
Regional Transportation District (Denver Transit Partners Eagle
P-3);
Series 2010, Private Activity RB
|
|
|
6.00
|
%
|
|
|
01/15/41
|
|
|
|
850
|
|
|
|
784,788
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,274,556
|
|
|
District of Columbia2.47%
|
|
|
|
|
|
|
|
|
|
|
|
|
District of Columbia;
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series 2006 B-1, Ballpark RB
(INSNATL)
(a)
|
|
|
5.00
|
%
|
|
|
02/01/31
|
|
|
|
2,000
|
|
|
|
1,824,460
|
|
|
Series 2009 A, Sec. Income Tax
RB
(d)
|
|
|
5.25
|
%
|
|
|
12/01/27
|
|
|
|
1,540
|
|
|
|
1,659,134
|
|
|
Metropolitan Washington Airports Authority;
Series 2009 B, RB
(INSBHAC)
(a)
|
|
|
5.00
|
%
|
|
|
10/01/29
|
|
|
|
1,000
|
|
|
|
1,007,600
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,491,194
|
|
|
Florida10.03%
|
|
|
|
|
|
|
|
|
|
|
|
|
Highlands (County of) Health Facilities Authority (Adventist
Health);
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series 2006 C,
RB
(b)(e)
|
|
|
5.25
|
%
|
|
|
11/15/16
|
|
|
|
25
|
|
|
|
29,566
|
|
|
Series 2006 C,
RB
(b)(c)
|
|
|
5.25
|
%
|
|
|
11/15/16
|
|
|
|
975
|
|
|
|
914,833
|
|
|
Miami-Dade (County of) (Miami International Airport-Hub of the
Americas); Series 2009 B, Aviation RB
(INSAGC)
(a)
|
|
|
5.00
|
%
|
|
|
10/01/25
|
|
|
|
800
|
|
|
|
819,616
|
|
|
Miami-Dade (County of) Expressway Authority;
Series 2010 A, Ref. Toll System RB
|
|
|
5.00
|
%
|
|
|
07/01/40
|
|
|
|
1,000
|
|
|
|
909,970
|
|
|
Miami-Dade (County of) Health Facilities Authority (Miami
Childrens Hospital); Series 2010 A, Ref.
Hospital RB
|
|
|
6.00
|
%
|
|
|
08/01/30
|
|
|
|
310
|
|
|
|
310,645
|
|
|
Miami-Dade (County of) Miami International Airport;
Series 2000 A, Aviation RB
(INSNATL)
(a)(g)
|
|
|
6.00
|
%
|
|
|
10/01/24
|
|
|
|
5,000
|
|
|
|
5,054,800
|
|
|
Miami-Dade (County of); Series 2005 A, Sub. Special
Obligation CAB RB
(INSNATL)
(a)(f)(h)
|
|
|
0.00
|
%
|
|
|
10/01/30
|
|
|
|
1,995
|
|
|
|
1,574,733
|
|
|
Palm Beach (County of) Solid Waste Authority; Series 2009,
Improvement RB
(INSBHAC)
(a)
|
|
|
5.50
|
%
|
|
|
10/01/23
|
|
|
|
750
|
|
|
|
809,857
|
|
|
South Miami (City of) Health Facilities Authority (Baptist
Health South Florida Obligated Group); Series 2007,
Hospital RB
(d)
|
|
|
5.00
|
%
|
|
|
08/15/42
|
|
|
|
4,000
|
|
|
|
3,523,800
|
|
|
St. Johns (County of) Industrial Development Authority
(Glenmoor);
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series 2006 A, Health Care RB
|
|
|
5.25
|
%
|
|
|
01/01/26
|
|
|
|
1,000
|
|
|
|
808,560
|
|
|
Series 2006 A, Health Care RB
|
|
|
5.38
|
%
|
|
|
01/01/40
|
|
|
|
3,250
|
|
|
|
2,348,970
|
|
|
See accompanying Notes to Financial Statements which are an
integral part of the financial statements.
9 Invesco
Quality Municipal Securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal
|
|
|
|
|
Interest
|
|
Maturity
|
|
Amount
|
|
|
|
|
Rate
|
|
Date
|
|
(000)
|
|
Value
|
|
Florida(continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tampa Bay Water; Series 2001 A, Ref. Utility System
Improvement RB
(INSNATL)
(a)
|
|
|
6.00
|
%
|
|
|
10/01/29
|
|
|
$
|
1,000
|
|
|
$
|
1,153,840
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
18,259,190
|
|
|
Georgia6.33%
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlanta (City of); Series 2004 C, Airport Passenger
Facility Charge & Sub. Lien General RB
(INSAGM)
(a)(d)
|
|
|
5.00
|
%
|
|
|
01/01/33
|
|
|
|
5,000
|
|
|
|
4,927,800
|
|
|
DeKalb (County of); Series 2003 A, Water &
Sewerage RB
|
|
|
5.00
|
%
|
|
|
10/01/23
|
|
|
|
1,200
|
|
|
|
1,261,584
|
|
|
Georgia (State of) Road & Tollway Authority;
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series 2003, Gtd. RB
|
|
|
5.00
|
%
|
|
|
10/01/23
|
|
|
|
3,000
|
|
|
|
3,199,860
|
|
|
Series 2003,
RB
(b)(e)
|
|
|
5.00
|
%
|
|
|
10/01/13
|
|
|
|
2,000
|
|
|
|
2,130,640
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11,519,884
|
|
|
Hawaii8.01%
|
|
|
|
|
|
|
|
|
|
|
|
|
Hawaii (State of) Department of Budget & Finance
(Hawaii Pacific Health Obligated Group);
Series 2010 B, Special Purpose RB
|
|
|
5.75
|
%
|
|
|
07/01/40
|
|
|
|
430
|
|
|
|
397,423
|
|
|
Hawaii (State of) Department of Budget & Finance
(Hawaiian Electric Co. & Subsidiaries); Series 1993,
Special Purpose RB
(INSNATL)
(a)(g)
|
|
|
5.45
|
%
|
|
|
11/01/23
|
|
|
|
5,000
|
|
|
|
4,740,850
|
|
|
Hawaii (State of); Series 2010 A, Airports System RB
|
|
|
5.00
|
%
|
|
|
07/01/39
|
|
|
|
1,075
|
|
|
|
1,004,029
|
|
|
Honolulu (City & County of); Series 2003 A,
Unlimited Tax GO Bonds
(INSNATL)
(a)
|
|
|
5.25
|
%
|
|
|
03/01/24
|
|
|
|
8,000
|
|
|
|
8,450,880
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
14,593,182
|
|
|
Idaho0.24%
|
|
|
|
|
|
|
|
|
|
|
|
|
Regents of the University of Idaho (The); Series 2011, Ref.
General
RB
(b)(c)
|
|
|
5.25
|
%
|
|
|
04/01/21
|
|
|
|
400
|
|
|
|
433,560
|
|
|
Illinois17.10%
|
|
|
|
|
|
|
|
|
|
|
|
|
Chicago (City of) OHare International Airport;
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series 2001 A, Second Lien Passenger Facility Charge
RB
(INSAMBAC)
(a)(g)
|
|
|
5.38
|
%
|
|
|
01/01/32
|
|
|
|
3,000
|
|
|
|
2,766,660
|
|
|
Series 2005 A, Third Lien General Airport RB
(INSNATL)
(a)
|
|
|
5.25
|
%
|
|
|
01/01/26
|
|
|
|
3,000
|
|
|
|
3,024,000
|
|
|
Chicago (City of) Park District; Series 2004 A,
Limited Tax GO Bonds
(INSAMBAC)
(a)
|
|
|
5.00
|
%
|
|
|
01/01/27
|
|
|
|
3,600
|
|
|
|
3,617,892
|
|
|
Chicago (City of) Transit Authority (Federal Transit
Administration Section 5309); Series 2008, Capital
Grant Receipts RB
(INSAGC)
(a)
|
|
|
5.25
|
%
|
|
|
06/01/23
|
|
|
|
1,070
|
|
|
|
1,071,830
|
|
|
Chicago (City of); Series 2007 A, Ref. Project
Unlimited Tax GO Bonds
(INSAGM)
(a)(d)(i)
|
|
|
5.00
|
%
|
|
|
01/01/37
|
|
|
|
4,590
|
|
|
|
4,048,059
|
|
|
DeKalb County of Community Unit School District No. 428;
Series 2008, Unlimited Tax GO Bonds
(INSAGM)
(a)
|
|
|
5.00
|
%
|
|
|
01/01/23
|
|
|
|
725
|
|
|
|
758,481
|
|
|
Granite City (City of) (Waste Management, Inc.);
Series 2002, Disposal
RB
(b)(c)(g)
|
|
|
3.50
|
%
|
|
|
05/01/13
|
|
|
|
1,250
|
|
|
|
1,247,487
|
|
|
Illinois (State of) Finance Authority (Little Co. of Mary
Hospital & Health Care Centers); Series 2010, RB
|
|
|
5.38
|
%
|
|
|
08/15/40
|
|
|
|
775
|
|
|
|
675,769
|
|
|
Illinois (State of) Finance Authority (Northwestern Memorial
Hospital); Series 2009 B, RB
|
|
|
5.38
|
%
|
|
|
08/15/24
|
|
|
|
965
|
|
|
|
1,013,472
|
|
|
Illinois (State of) Finance Authority (Resurrection Health Care
Corp.); Series 2009, Ref. RB
|
|
|
6.13
|
%
|
|
|
05/15/25
|
|
|
|
925
|
|
|
|
919,524
|
|
|
Illinois (State of) Finance Authority (Rush University Medical
Center Obligated Group); Series 2009 A, RB
|
|
|
7.25
|
%
|
|
|
11/01/38
|
|
|
|
415
|
|
|
|
441,763
|
|
|
Illinois (State of) Finance Authority (Swedish Covenant
Hospital);
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series 2010 A, Ref. RB
|
|
|
5.75
|
%
|
|
|
08/15/29
|
|
|
|
1,325
|
|
|
|
1,274,001
|
|
|
Series 2010 A, Ref. RB
|
|
|
6.00
|
%
|
|
|
08/15/38
|
|
|
|
690
|
|
|
|
655,348
|
|
|
Illinois (State of) Metropolitan Pier & Exposition
Authority (McCormick Place Expansion);
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series 2002 A, CAB RB
(INSNATL)
(a)(f)(h)
|
|
|
0.00
|
%
|
|
|
06/15/26
|
|
|
|
8,480
|
|
|
|
6,027,414
|
|
|
Series 2010 A, Dedicated State Tax RB
|
|
|
5.50
|
%
|
|
|
06/15/50
|
|
|
|
800
|
|
|
|
735,856
|
|
|
Kendall, Kane & Will Counties Community Unit School
District No. 308; Series 2008, Unlimited Tax CAB GO
Bonds
(INSAGM)
(a)(f)
|
|
|
0.00
|
%
|
|
|
02/01/20
|
|
|
|
2,780
|
|
|
|
1,776,476
|
|
|
Railsplitter Tobacco Settlement Authority; Series 2010, RB
|
|
|
5.50
|
%
|
|
|
06/01/23
|
|
|
|
1,125
|
|
|
|
1,078,436
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31,132,468
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying Notes to Financial Statements which are an
integral part of the financial statements.
10 Invesco
Quality Municipal Securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal
|
|
|
|
|
Interest
|
|
Maturity
|
|
Amount
|
|
|
|
|
Rate
|
|
Date
|
|
(000)
|
|
Value
|
|
Indiana1.02%
|
|
|
|
|
|
|
|
|
|
|
|
|
Indiana (State of) Financing Authority (Clarian Health Obligated
Group); Series 2006 A, Hospital RB
|
|
|
5.25
|
%
|
|
|
02/15/40
|
|
|
$
|
1,460
|
|
|
$
|
1,269,149
|
|
|
Rockport (City of) (Indiana Michigan Power Co.);
Series 2009 B, Ref.
PCR
(b)(c)
|
|
|
6.25
|
%
|
|
|
06/02/14
|
|
|
|
530
|
|
|
|
583,503
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,852,652
|
|
|
Iowa1.38%
|
|
|
|
|
|
|
|
|
|
|
|
|
Iowa (State of);
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series 2009 A, IJOBS Program Special Obligation
RB
(d)(i)
|
|
|
5.00
|
%
|
|
|
06/01/25
|
|
|
|
1,355
|
|
|
|
1,445,189
|
|
|
Series 2009 A, IJOBS Program Special Obligation
RB
(d)(i)
|
|
|
5.00
|
%
|
|
|
06/01/26
|
|
|
|
1,015
|
|
|
|
1,072,916
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,518,105
|
|
|
Kansas0.26%
|
|
|
|
|
|
|
|
|
|
|
|
|
Kansas (State of) Development Finance Authority (Adventist
Health System/Sunbelt Obligated Group); Series 2009 C,
Hospital RB
|
|
|
5.50
|
%
|
|
|
11/15/29
|
|
|
|
470
|
|
|
|
478,422
|
|
|
Kentucky0.26%
|
|
|
|
|
|
|
|
|
|
|
|
|
Kentucky (State of) Economic Development Finance Authority
(Owensboro Medical Health System, Inc.);
Series 2010 A, Hospital Facilities RB
|
|
|
6.50
|
%
|
|
|
03/01/45
|
|
|
|
500
|
|
|
|
477,665
|
|
|
Louisiana0.56%
|
|
|
|
|
|
|
|
|
|
|
|
|
Lafayette (City of) Public Trust Financing Authority (Ragin
Cajun Facilities-Housing & Parking); Series 2010,
RB (INSAGM)
(a)
|
|
|
5.25
|
%
|
|
|
10/01/30
|
|
|
|
650
|
|
|
|
653,127
|
|
|
St. John the Baptist (Parish of) (Marathon Oil Corp.);
Series 2007 A, RB
|
|
|
5.13
|
%
|
|
|
06/01/37
|
|
|
|
400
|
|
|
|
369,860
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,022,987
|
|
|
Maryland0.86%
|
|
|
|
|
|
|
|
|
|
|
|
|
Baltimore (County of) (Oak Crest Village Inc. Facility);
Series 2007 A, RB
|
|
|
5.00
|
%
|
|
|
01/01/37
|
|
|
|
705
|
|
|
|
602,282
|
|
|
Maryland (State of) Economic Development Corp. (Terminal);
Series 2010 B, RB
|
|
|
5.75
|
%
|
|
|
06/01/35
|
|
|
|
690
|
|
|
|
623,139
|
|
|
Maryland (State of) Health & Higher Educational
Facilities Authority (King Farm Presbyterian Retirement
Community); Series 2007 B, RB
|
|
|
5.00
|
%
|
|
|
01/01/17
|
|
|
|
355
|
|
|
|
335,688
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,561,109
|
|
|
Massachusetts4.08%
|
|
|
|
|
|
|
|
|
|
|
|
|
Massachusetts (State of) Health & Educational
Facilities Authority (Berklee College of Music);
Series 2007 A, RB
|
|
|
5.00
|
%
|
|
|
10/01/32
|
|
|
|
625
|
|
|
|
610,450
|
|
|
Massachusetts (State of) Health & Educational
Facilities Authority (Harvard University);
Series 2009 A,
RB
(d)
|
|
|
5.50
|
%
|
|
|
11/15/36
|
|
|
|
4,850
|
|
|
|
5,161,176
|
|
|
Massachusetts (State of) Health & Educational
Facilities Authority (Massachusetts Institute of Technology);
Series 2008 O,
RB
(d)
|
|
|
5.50
|
%
|
|
|
07/01/36
|
|
|
|
1,570
|
|
|
|
1,664,624
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,436,250
|
|
|
Michigan0.48%
|
|
|
|
|
|
|
|
|
|
|
|
|
Detroit (City of); Series 2006 C, Ref. Second Lien
Water Supply System RB
(INSAGM)
(a)
|
|
|
5.00
|
%
|
|
|
07/01/26
|
|
|
|
900
|
|
|
|
870,912
|
|
|
Montana0.54%
|
|
|
|
|
|
|
|
|
|
|
|
|
Forsyth (City of) (Portland General Electric Co.);
Series 1998 A, Ref. PCR
|
|
|
5.00
|
%
|
|
|
05/01/33
|
|
|
|
1,000
|
|
|
|
975,070
|
|
|
Nebraska2.06%
|
|
|
|
|
|
|
|
|
|
|
|
|
Nebraska (State of) Public Power District;
Series 2003 A, RB
(INSAMBAC)
(a)
|
|
|
5.00
|
%
|
|
|
01/01/35
|
|
|
|
3,740
|
|
|
|
3,743,852
|
|
|
Nevada1.94%
|
|
|
|
|
|
|
|
|
|
|
|
|
Clark (County of); Series 2004
A-1,
Sub.
Lien Airport RB
(INSNATL)
(a)(g)
|
|
|
5.50
|
%
|
|
|
07/01/20
|
|
|
|
3,000
|
|
|
|
3,083,490
|
|
|
Las Vegas (City of) Redevelopment Agency;
Series 2009 A, Tax Increment Allocation RB
|
|
|
6.25
|
%
|
|
|
06/15/16
|
|
|
|
410
|
|
|
|
455,059
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,538,549
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying Notes to Financial Statements which are an
integral part of the financial statements.
11 Invesco
Quality Municipal Securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal
|
|
|
|
|
Interest
|
|
Maturity
|
|
Amount
|
|
|
|
|
Rate
|
|
Date
|
|
(000)
|
|
Value
|
|
New Hampshire0.82%
|
|
|
|
|
|
|
|
|
|
|
|
|
Manchester (City of); Series 2003, Water RB
(INSNATL)
(a)
|
|
|
5.00
|
%
|
|
|
12/01/34
|
|
|
$
|
1,500
|
|
|
$
|
1,500,075
|
|
|
New Jersey2.15%
|
|
|
|
|
|
|
|
|
|
|
|
|
New Jersey (State of) Economic Development Authority (Montclair
State University Student Housing); Series 2010, RB
|
|
|
5.75
|
%
|
|
|
06/01/31
|
|
|
|
525
|
|
|
|
494,440
|
|
|
New Jersey (State of) Transportation
Trust Fund Authority; Series 2006 C,
Transportation System RB
(INSAGC)
(a)(f)
|
|
|
0.00
|
%
|
|
|
12/15/26
|
|
|
|
4,300
|
|
|
|
1,654,081
|
|
|
Tobacco Settlement Financing Corp.; Series 2007
1-A,
Asset-Backed RB
|
|
|
4.63
|
%
|
|
|
06/01/26
|
|
|
|
2,305
|
|
|
|
1,640,537
|
|
|
Tobacco Settlement Financing Corp.; Series 2007 1B, First
Sub. Asset-Backed CAB
RB
(f)
|
|
|
0.00
|
%
|
|
|
06/01/41
|
|
|
|
3,000
|
|
|
|
128,970
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,918,028
|
|
|
New Mexico0.91%
|
|
|
|
|
|
|
|
|
|
|
|
|
Farmington (City of) (Public Service Co. of New Mexico San
Juan); Series 2010 C, Ref. PCR
|
|
|
5.90
|
%
|
|
|
06/01/40
|
|
|
|
700
|
|
|
|
665,847
|
|
|
New Mexico Finance Authority (Public Project Revolving Fund);
Series 2008 A, Sr. Lien RB
|
|
|
5.00
|
%
|
|
|
06/01/27
|
|
|
|
940
|
|
|
|
986,267
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,652,114
|
|
|
New York13.78%
|
|
|
|
|
|
|
|
|
|
|
|
|
Brooklyn (City of) Arena Local Development Corp. (Barclays
Center);
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series 2009, PILOT RB
|
|
|
6.25
|
%
|
|
|
07/15/40
|
|
|
|
460
|
|
|
|
450,275
|
|
|
Series 2009, PILOT RB
|
|
|
6.38
|
%
|
|
|
07/15/43
|
|
|
|
190
|
|
|
|
188,670
|
|
|
Metropolitan Transportation Authority; Series 2003 B,
RB
(INSNATL)
(a)
|
|
|
5.25
|
%
|
|
|
11/15/22
|
|
|
|
5,000
|
|
|
|
5,230,850
|
|
|
New York (City of) Trust for Cultural Resources (Museum of
Modern Art); Series 2008 1A, Ref.
RB
(d)
|
|
|
5.00
|
%
|
|
|
04/01/28
|
|
|
|
1,950
|
|
|
|
2,016,476
|
|
|
New York (State of) Dormitory Authority (The City of New York);
Series 2005 A, Court Facilities Lease RB
(INSAMBAC)
(a)
|
|
|
5.50
|
%
|
|
|
05/15/29
|
|
|
|
705
|
|
|
|
733,024
|
|
|
New York (State of) Thruway Authority; Series 2009 A,
State Personal Income Tax Transportation RB
|
|
|
5.00
|
%
|
|
|
03/15/25
|
|
|
|
1,310
|
|
|
|
1,394,246
|
|
|
New York City (City of) Transitional Finance Authority;
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series 2009 A, Sec. Future Tax Sub.
RB
(d)
|
|
|
5.00
|
%
|
|
|
05/01/28
|
|
|
|
1,305
|
|
|
|
1,351,393
|
|
|
Series 2009 A, Sec. Future Tax Sub.
RB
(d)
|
|
|
5.00
|
%
|
|
|
05/01/29
|
|
|
|
1,045
|
|
|
|
1,081,429
|
|
|
Series 2009 A, Sec. Future Tax Sub.
RB
(d)
|
|
|
5.00
|
%
|
|
|
05/01/30
|
|
|
|
1,045
|
|
|
|
1,073,508
|
|
|
New York City (City of);
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series 2008
A-1,
Unlimited Tax GO
Bonds
(d)
|
|
|
5.25
|
%
|
|
|
08/15/28
|
|
|
|
980
|
|
|
|
1,018,896
|
|
|
Series 2008
A-1,
Unlimited Tax GO
Bonds
(d)
|
|
|
5.25
|
%
|
|
|
08/15/27
|
|
|
|
980
|
|
|
|
1,020,778
|
|
|
1993
E-5,
Sub. VRD Unlimited Tax GO Bonds (LOCJPMorgan Chase Bank,
N.A.)
(j)(k)
|
|
|
0.17
|
%
|
|
|
08/01/17
|
|
|
|
1,000
|
|
|
|
1,000,000
|
|
|
Tobacco Settlement Financing Corp.(State Contingency Contract);
Series 2003 B-1C, Asset-Backed RB
|
|
|
5.50
|
%
|
|
|
06/01/21
|
|
|
|
6,000
|
|
|
|
6,410,880
|
|
|
Triborough Bridge & Tunnel Authority;
Series 2002 B, Ref. General RB
|
|
|
5.25
|
%
|
|
|
11/15/19
|
|
|
|
2,000
|
|
|
|
2,121,480
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
25,091,905
|
|
|
Ohio4.11%
|
|
|
|
|
|
|
|
|
|
|
|
|
American Municipal Power-Ohio Inc. (Prairie State Energy
Campus); Series 2008 A, RB
(INSAGC)
(a)(d)
|
|
|
5.25
|
%
|
|
|
02/15/33
|
|
|
|
1,000
|
|
|
|
1,008,100
|
|
|
Cuyahoga (County of) (Cleveland Clinic Health System Obligated
Group); Series 2003 A, Ref. RB
|
|
|
6.00
|
%
|
|
|
01/01/32
|
|
|
|
5,000
|
|
|
|
5,038,400
|
|
|
Ohio (State of) Higher Educational Facility Commission (Summa
Health System); Series 2010, Hospital Facilities RB
|
|
|
5.75
|
%
|
|
|
11/15/40
|
|
|
|
1,275
|
|
|
|
1,143,598
|
|
|
Ohio (State of) Water Development Authority (FirstEnergy Nuclear
Generation Corp.); Series 2009 A, Ref.
PCR
(b)(c)
|
|
|
5.88
|
%
|
|
|
06/01/16
|
|
|
|
265
|
|
|
|
285,445
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,475,543
|
|
|
Oregon0.36%
|
|
|
|
|
|
|
|
|
|
|
|
|
Warm Springs Reservation Confederated Tribes of Oregon (Pelton
Round Butte); Series 2009 B, Hydroelectric Tribal
Economic Development
RB
(l)
|
|
|
6.38
|
%
|
|
|
11/01/33
|
|
|
|
660
|
|
|
|
656,014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying Notes to Financial Statements which are an
integral part of the financial statements.
12 Invesco
Quality Municipal Securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal
|
|
|
|
|
Interest
|
|
Maturity
|
|
Amount
|
|
|
|
|
Rate
|
|
Date
|
|
(000)
|
|
Value
|
|
Pennsylvania3.29%
|
|
|
|
|
|
|
|
|
|
|
|
|
Chester (County of) Industrial Development Authority
(Archdiocese of Philadelphia); Series 2001, VRD RB
(LOCWells Fargo Bank,
N.A.)
(j)(k)
|
|
|
0.21
|
%
|
|
|
07/01/31
|
|
|
$
|
2,000
|
|
|
$
|
2,000,000
|
|
|
Pennsylvania (State of) Turnpike Commission;
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series 2010 B2, Conv. Sub. CAB
RB
(f)(h)
|
|
|
0.00
|
%
|
|
|
12/01/28
|
|
|
|
750
|
|
|
|
577,020
|
|
|
Series 2010 B2, Conv. Sub. CAB
RB
(f)(h)
|
|
|
0.00
|
%
|
|
|
12/01/34
|
|
|
|
450
|
|
|
|
342,837
|
|
|
Philadelphia School District; Series 2008 E, Limited
Tax GO Bonds
(INSBHAC)
(a)
|
|
|
5.13
|
%
|
|
|
09/01/23
|
|
|
|
1,500
|
|
|
|
1,573,785
|
|
|
The Hospitals & Higher Education Facilities Authority
(Childrens Hospital of Philadelphia);
Series 2002 B, VRD
RB
(k)
|
|
|
0.18
|
%
|
|
|
07/01/25
|
|
|
|
1,500
|
|
|
|
1,500,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,993,642
|
|
|
Puerto Rico2.64%
|
|
|
|
|
|
|
|
|
|
|
|
|
Puerto Rico Electric Power Authority;
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series 2010 CCC, Power RB
|
|
|
5.25
|
%
|
|
|
07/01/27
|
|
|
|
1,000
|
|
|
|
964,840
|
|
|
Series 2010 XX, Power RB
|
|
|
5.25
|
%
|
|
|
07/01/40
|
|
|
|
750
|
|
|
|
654,173
|
|
|
Puerto Rico Sales Tax Financing Corp.;
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Sub. Series 2009 A, Sales Tax
RB
(b)(e)
|
|
|
5.00
|
%
|
|
|
08/01/11
|
|
|
|
875
|
|
|
|
892,342
|
|
|
First Sub. Series 2010 A, Sales Tax RB
|
|
|
5.38
|
%
|
|
|
08/01/39
|
|
|
|
450
|
|
|
|
416,439
|
|
|
First Sub. Series 2010 C, Sales Tax RB
|
|
|
5.25
|
%
|
|
|
08/01/41
|
|
|
|
1,300
|
|
|
|
1,176,058
|
|
|
First Sub Series 2010 A, Sales Tax RB
|
|
|
5.50
|
%
|
|
|
08/01/42
|
|
|
|
750
|
|
|
|
704,242
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,808,094
|
|
|
Rhode Island0.83%
|
|
|
|
|
|
|
|
|
|
|
|
|
Rhode Island Economic Development Corp.;
Series 2004 A, Ref. Airport RB
(INSAGM)
(a)(g)
|
|
|
5.00
|
%
|
|
|
07/01/21
|
|
|
|
1,500
|
|
|
|
1,520,610
|
|
|
South Carolina6.17%
|
|
|
|
|
|
|
|
|
|
|
|
|
Charleston Educational Excellence Finance Corp. (Charleston
County School District); Series 2005, RB
|
|
|
5.25
|
%
|
|
|
12/01/29
|
|
|
|
2,000
|
|
|
|
2,025,840
|
|
|
Grand Strand Water & Sewer Authority;
Series 2002, Ref. Waterworks & Sewer System RB
(INSAGM)
(a)
|
|
|
5.38
|
%
|
|
|
06/01/19
|
|
|
|
4,565
|
|
|
|
4,775,721
|
|
|
Lexington County Health Services District, Inc.;
Series 2007, Ref. Hospital RB
|
|
|
5.00
|
%
|
|
|
11/01/16
|
|
|
|
40
|
|
|
|
42,756
|
|
|
Richland (County of) (International Paper Co.);
Series 2007 A, Ref. Environmental Improvement RB
|
|
|
4.60
|
%
|
|
|
09/01/12
|
|
|
|
210
|
|
|
|
214,498
|
|
|
South Carolina (State of) Public Service Authority;
Series 2003 A, Ref. RB
(INSAMBAC)
(a)(d)
|
|
|
5.00
|
%
|
|
|
01/01/22
|
|
|
|
4,000
|
|
|
|
4,179,640
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11,238,455
|
|
|
Texas15.41%
|
|
|
|
|
|
|
|
|
|
|
|
|
Alliance Airport Authority, Inc. (Federal Express Corp.);
Series 2006, Ref. Special Facilities
RB
(g)
|
|
|
4.85
|
%
|
|
|
04/01/21
|
|
|
|
2,000
|
|
|
|
1,992,660
|
|
|
Arlington (City of); Series 2009, Special Tax RB
|
|
|
5.00
|
%
|
|
|
08/15/28
|
|
|
|
1,500
|
|
|
|
1,486,185
|
|
|
Austin (City of); Series 2001, Ref. Water &
Wastewater System RB
(INSAGM)
(a)
|
|
|
5.13
|
%
|
|
|
05/15/27
|
|
|
|
1,475
|
|
|
|
1,476,918
|
|
|
Bexar County Health Facilities Development Corp. (Army
Retirement Residence); Series 2010, RB
|
|
|
6.20
|
%
|
|
|
07/01/45
|
|
|
|
590
|
|
|
|
567,297
|
|
|
Friendswood Independent School District; Series 2008,
Schoolhouse Unlimited Tax GO Bonds (CEPTexas Permanent
School Fund)
|
|
|
5.00
|
%
|
|
|
02/15/25
|
|
|
|
575
|
|
|
|
611,794
|
|
|
Harris (County of); Series 2007 C, Ref. Sub. Lien Toll
Road Unlimited Tax GO Bonds
(INSAGM)
(a)
|
|
|
5.25
|
%
|
|
|
08/15/31
|
|
|
|
1,530
|
|
|
|
1,657,740
|
|
|
Harris County Industrial Development Corp. (Deer Park Refining
Limited Partnership); Series 2006, Solid Waste Disposal RB
|
|
|
5.00
|
%
|
|
|
02/01/23
|
|
|
|
350
|
|
|
|
351,946
|
|
|
Houston (City of) Convention & Entertainment
Facilities Department; Series 2001 B, Hotel Occupancy
Tax & Special RB
(INSAGM)
(a)(f)
|
|
|
0.00
|
%
|
|
|
09/01/25
|
|
|
|
2,350
|
|
|
|
1,043,752
|
|
|
Houston (City of); Series 2004 A, Ref. First Lien
Combined Utility System RB
(INSNATL)
(a)
|
|
|
5.25
|
%
|
|
|
05/15/25
|
|
|
|
5,000
|
|
|
|
5,250,000
|
|
|
Lower Colorado River Authority; Series 2010 A, Ref. RB
|
|
|
5.00
|
%
|
|
|
05/15/40
|
|
|
|
450
|
|
|
|
418,671
|
|
|
North Texas Tollway Authority;
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series 2008 D, Ref. First Tier System CAB RB
(INSAGC)
(a)(f)
|
|
|
0.00
|
%
|
|
|
01/01/28
|
|
|
|
5,200
|
|
|
|
1,829,412
|
|
|
Series 2008 D, Ref. First Tier System CAB RB
(INSAGC)
(a)(f)
|
|
|
0.00
|
%
|
|
|
01/01/31
|
|
|
|
1,065
|
|
|
|
303,962
|
|
|
See accompanying Notes to Financial Statements which are an
integral part of the financial statements.
13 Invesco
Quality Municipal Securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal
|
|
|
|
|
Interest
|
|
Maturity
|
|
Amount
|
|
|
|
|
Rate
|
|
Date
|
|
(000)
|
|
Value
|
|
Texas(continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tarrant County Cultural Education Facilities Finance Corp. (Air
Force Village Obligated Group); Series 2007, Retirement
Facility RB
|
|
|
5.13
|
%
|
|
|
05/15/37
|
|
|
$
|
425
|
|
|
$
|
344,140
|
|
|
Tarrant Regional Water District; Series 2002, Ref. &
Improvement RB
(INSAGM)
(a)
|
|
|
5.25
|
%
|
|
|
03/01/17
|
|
|
|
4,000
|
|
|
|
4,305,000
|
|
|
Texas A&M University System Board of Regents;
Series 2009 A, Financing System RB
|
|
|
5.00
|
%
|
|
|
05/15/26
|
|
|
|
1,665
|
|
|
|
1,777,487
|
|
|
Texas Private Activity Bond Surface Transportation Corp. (North
Transit Express Mobility); Series 2009, Sr. Lien RB
|
|
|
6.88
|
%
|
|
|
12/31/39
|
|
|
|
510
|
|
|
|
516,360
|
|
|
University of Houston System Board of Regents; Series 2008,
Ref. Consolidated RB
(INSAGM)
(a)(d)
|
|
|
5.00
|
%
|
|
|
02/15/33
|
|
|
|
1,000
|
|
|
|
1,009,640
|
|
|
West Harris County Regional Water Authority; Series 2005,
Water System RB
(INSAGM)
(a)
|
|
|
5.00
|
%
|
|
|
12/15/24
|
|
|
|
3,000
|
|
|
|
3,115,260
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
28,058,224
|
|
|
Utah0.87%
|
|
|
|
|
|
|
|
|
|
|
|
|
Intermountain Power Agency; Series 2003 A, Ref. Power
Supply RB
(INSAGM)
(a)
|
|
|
5.00
|
%
|
|
|
07/01/21
|
|
|
|
1,500
|
|
|
|
1,582,770
|
|
|
Virgin Islands0.34%
|
|
|
|
|
|
|
|
|
|
|
|
|
Virgin Islands Public Finance Authority (Matching Fund Loan
Note); Series 2010 A, Sr. Lien Working Capital RB
|
|
|
5.00
|
%
|
|
|
10/01/25
|
|
|
|
625
|
|
|
|
616,818
|
|
|
Virginia6.64%
|
|
|
|
|
|
|
|
|
|
|
|
|
Fairfax (County of) Industrial Development Authority (INOVA
Health System); Series 1993, Ref. RB
|
|
|
5.25
|
%
|
|
|
08/15/19
|
|
|
|
9,000
|
|
|
|
9,946,440
|
|
|
Prince William (County of) Service Authority; Series 2003,
Ref. Water & Sewer System RB
|
|
|
5.00
|
%
|
|
|
07/01/21
|
|
|
|
2,000
|
|
|
|
2,147,460
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12,093,900
|
|
|
Washington3.69%
|
|
|
|
|
|
|
|
|
|
|
|
|
Grant (County of) Public Utility District No. 2;
Series 2005 A, Ref. Wanapum Hydro Electric RB
(INSNATL)
(a)
|
|
|
5.00
|
%
|
|
|
01/01/34
|
|
|
|
1,705
|
|
|
|
1,640,858
|
|
|
Washington (State of);
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series 2010 A, Various Purpose Unlimited Tax GO
Bonds
(d)
|
|
|
5.00
|
%
|
|
|
08/01/29
|
|
|
|
2,380
|
|
|
|
2,487,218
|
|
|
Series 2010 A, Various Purpose Unlimited Tax GO
Bonds
(d)
|
|
|
5.00
|
%
|
|
|
08/01/30
|
|
|
|
2,500
|
|
|
|
2,584,100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,712,176
|
|
|
Wisconsin0.59%
|
|
|
|
|
|
|
|
|
|
|
|
|
Wisconsin (State of); Series 2009 A, General
Fund Annual Appropriation RB
|
|
|
5.63
|
%
|
|
|
05/01/28
|
|
|
|
1,000
|
|
|
|
1,070,870
|
|
|
TOTAL
INVESTMENTS
(m)
150.12%
(Cost $278,997,931)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
273,326,646
|
|
|
FLOATING RATE NOTE OBLIGATIONS(21.85)%
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes with interest rates ranging from 0.26% to 0.39% at
02/28/11
and
contractual maturities of collateral ranging from
01/01/22
to
08/15/42
(See
Note 1I)
(n)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(39,789,640
|
)
|
|
PREFERRED SHARES(30.21)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(55,000,000
|
)
|
|
OTHER ASSETS LESS LIABILITIES1.94%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,537,053
|
|
|
NET ASSETS APPLICABLE TO COMMON SHARES100.00%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
182,074,059
|
|
|
See accompanying Notes to Financial Statements which are an
integral part of the financial statements.
14 Invesco
Quality Municipal Securities
Investment Abbreviations:
|
|
|
AGC
|
|
Assured Guaranty Corp.
|
AGM
|
|
Assured Guaranty Municipal Corp.
|
AMBAC
|
|
American Municipal Bond Assurance Corp*
|
BAN
|
|
Bond Anticipation Notes
|
BHAC
|
|
Berkshire Hathaway Assurance Corp.
|
CAB
|
|
Capital Appreciation Bond
|
CEP
|
|
Credit Enhancement Provider
|
Conv.
|
|
Convertible
|
COP
|
|
Certificates of Participation
|
GO
|
|
General Obligation
|
Gtd.
|
|
Guaranteed
|
IDR
|
|
Industrial Development Revenue Bonds
|
INS
|
|
Insurer
|
LOC
|
|
Letter of Credit
|
NATL
|
|
National Public Finance Guarantee Corp.
|
PCR
|
|
Pollution Control Revenue Bonds
|
PILOT
|
|
Payment-in-Lieu-of-Tax
|
RB
|
|
Revenue Bonds
|
Ref
|
|
Refunding
|
Sec.
|
|
Secured
|
SGI
|
|
Syncora Guarantee, Inc.
|
Sr.
|
|
Senior
|
Sub.
|
|
Subordinated
|
VRD
|
|
Variable Rate Demand
|
Notes to Schedule of Investments:
|
|
|
(a)
|
|
Principal
and/or
interest payments are secured by the bond insurance company
listed.
|
(b)
|
|
Security has an irrevocable call by
the issuer or mandatory put by the holder. Maturity date
reflects such call or put.
|
(c)
|
|
Interest or dividend rate is
redetermined periodically. Rate shown is the rate in effect on
February 28, 2011.
|
(d)
|
|
Underlying security related to
Dealer Trusts entered into by the Trust. See Note 1I.
|
(e)
|
|
Advance refunded; secured by an
escrow fund of U.S. Government obligations or other highly
rated collateral.
|
(f)
|
|
Zero coupon bond issued at a
discount.
|
(g)
|
|
Security subject to the alternative
minimum tax.
|
(h)
|
|
Step coupon bond. The interest rate
represents the coupon rate at which the bond will accrue at a
specified future date.
|
(i)
|
|
Security is subject to a shortfall
agreement which may require the Trust to pay amounts to a
counterparty in the event of a significant decline in the market
value of the security underlying the Dealer Trusts. In case of a
shortfall, the maximum potential amount of payments the Trust
could ultimately be required to make under the agreement is
$4,655,000. However, such shortfall payment would be reduced by
the proceeds from the sale of the security underlying the Dealer
Trusts.
|
(j)
|
|
Principal and interest payments are
fully enhanced by a letter of credit from the bank listed or a
predecessor bank, branch or subsidiary.
|
(k)
|
|
Demand security payable upon demand
by the Trust at specified time intervals no greater than
thirteen months. Interest rate is redetermined periodically.
Rate shown is the rate in effect on February 28, 2011.
|
(l)
|
|
Security purchased or received in a
transaction exempt from registration under the Securities Act of
1933, as amended. The security may be resold pursuant to an
exemption from registration under the 1933 Act, typically to
qualified institutional buyers. The value of this security at
February 28, 2011 represented 0.36% of the Trusts Net
Assets.
|
(m)
|
|
This table provides a listing of
those entities that have either issued, guaranteed, backed or
otherwise enhanced the credit quality of more than 5% of the
securities held in the portfolio. In instances where the entity
has guaranteed, backed or otherwise enhanced the credit quality
of a security, it is not primarily responsible for the
issuers obligations but may be called upon to satisfy the
issuers obligations.
|
|
|
|
|
|
Entities
|
|
Percentage
|
|
National Public Finance Guaranty Corp.
|
|
|
31.2
|
%
|
|
Assured Guaranty Municipal Corp.
|
|
|
24.8
|
|
|
American Municipal Bond Assurance Corp.*
|
|
|
9.4
|
|
|
|
|
|
(n)
|
|
Floating rate note obligations
related to securities held. The interest rates shown reflect the
rates in effect at February 28, 2011. At February 28,
2011, the Trusts investments with a value of $56,501,636
are held by Dealer Trusts and serve as collateral for the
$39,789,640 in the floating rate note obligations outstanding at
that date.
|
*
|
|
AMBAC filed for bankruptcy on
November 8, 2010
|
See accompanying Notes to Financial Statements which are an
integral part of the financial statements.
15 Invesco
Quality Municipal Securities
Statement
of Assets and Liabilities
February 28,
2011
|
|
|
|
|
Assets:
|
Investments, at value (Cost $278,997,931)
|
|
$
|
273,326,646
|
|
|
Cash
|
|
|
629,041
|
|
|
Receivable for:
|
|
|
|
|
Investments sold
|
|
|
197,947
|
|
|
Interest
|
|
|
2,818,747
|
|
|
Investment for trustee deferred compensation and retirement plans
|
|
|
1,405
|
|
|
Other assets
|
|
|
13,717
|
|
|
Total assets
|
|
|
276,987,503
|
|
|
Liabilities:
|
Floating rate note obligations
|
|
|
39,789,640
|
|
|
Payable for:
|
|
|
|
|
Dividends declared on preferred shares
|
|
|
3,101
|
|
|
Accrued fees to affiliates
|
|
|
61
|
|
|
Accrued other operating expenses
|
|
|
60,609
|
|
|
Trustee deferred compensation and retirement plans
|
|
|
60,033
|
|
|
Total liabilities
|
|
|
39,913,444
|
|
|
Preferred shares ($0.01 par value, authorized
1,000,000 shares, 1,100 issued with liquidation preference
of $50,000 per share)
|
|
|
55,000,000
|
|
|
Net assets applicable to common shares
|
|
$
|
182,074,059
|
|
|
Net assets applicable to common shares consist of:
|
Shares of beneficial interest common shares
|
|
$
|
198,898,707
|
|
|
Undistributed net investment income
|
|
|
3,680,842
|
|
|
Undistributed net realized gain (loss)
|
|
|
(14,834,205
|
)
|
|
Unrealized appreciation (depreciation)
|
|
|
(5,671,285
|
)
|
|
|
|
$
|
182,074,059
|
|
|
Shares outstanding, $0.01 par value per common share with an
unlimited number of shares authorized:
|
Common shares outstanding
|
|
|
13,454,169
|
|
|
Net asset value per common share
|
|
$
|
13.53
|
|
|
Market value per common share
|
|
$
|
12.65
|
|
|
See accompanying Notes to Financial Statements which are an
integral part of the financial statements.
16 Invesco
Quality Municipal Securities
Statement
of Operations
For
the period November 1, 2010 to February 28, 2011 and
the year ended October 31, 2010
|
|
|
|
|
|
|
|
|
|
|
Four
months ended
|
|
Year
ended
|
|
|
February 28,
|
|
October 31,
|
|
|
2011
|
|
2010
|
|
Investment income:
|
|
|
|
|
Interest
|
|
$
|
4,506,414
|
|
|
$
|
14,063,308
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
Advisory fees
|
|
|
247,755
|
|
|
|
777,393
|
|
|
Administrative services fees
|
|
|
16,438
|
|
|
|
153,435
|
|
|
Custodian fees
|
|
|
2,072
|
|
|
|
9,018
|
|
|
Interest, facilities and maintenance fees
|
|
|
129,534
|
|
|
|
404,353
|
|
|
Transfer agent fees
|
|
|
4,069
|
|
|
|
8,825
|
|
|
Trustees and officers fees and benefits
|
|
|
6,214
|
|
|
|
29,254
|
|
|
Professional fees
|
|
|
33,511
|
|
|
|
166,947
|
|
|
Other
|
|
|
(73,872
|
)
|
|
|
94,489
|
|
|
Total expenses
|
|
|
365,721
|
|
|
|
1,643,714
|
|
|
Less: Fees waived
|
|
|
|
|
|
|
(1,987
|
)
|
|
Net expenses
|
|
|
365,721
|
|
|
|
1,641,727
|
|
|
Net investment income
|
|
|
4,140,693
|
|
|
|
12,421,581
|
|
|
Realized and unrealized gain (loss) from:
|
|
|
|
|
Net realized gain (loss) from:
|
|
|
|
|
|
|
|
|
Investment securities
|
|
|
(588,041
|
)
|
|
|
(1,035,797
|
)
|
|
Futures contracts
|
|
|
|
|
|
|
469,418
|
|
|
|
|
|
(588,041
|
)
|
|
|
(566,379
|
)
|
|
Change in net unrealized appreciation (depreciation) of:
|
|
|
|
|
|
|
|
|
Investment securities
|
|
|
(17,162,059
|
)
|
|
|
11,533,224
|
|
|
Futures contracts
|
|
|
|
|
|
|
(324,970
|
)
|
|
|
|
|
(17,162,059
|
)
|
|
|
11,208,254
|
|
|
Net realized and unrealized gain (loss)
|
|
|
(17,750,100
|
)
|
|
|
10,641,875
|
|
|
Net increase (decrease) in net assets resulting from operations
|
|
|
(13,609,407
|
)
|
|
|
23,063,456
|
|
|
Distributions to preferred shareholders from net investment
income
|
|
|
(78,948
|
)
|
|
|
(221,268
|
)
|
|
Net increase (decrease) in net assets resulting from operations
applicable to common shares
|
|
$
|
(13,688,355
|
)
|
|
$
|
22,842,188
|
|
|
See accompanying Notes to Financial Statements which are an
integral part of the financial statements.
17 Invesco
Quality Municipal Securities
Statement
of Changes in Net Assets
For
the period November 1, 2010 to February 28, 2011 and
the years ended October 31, 2010 and 2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Four months
ended
|
|
Year ended
|
|
Year ended
|
|
|
February 28,
|
|
October 31,
|
|
October 31,
|
|
|
2011
|
|
2010
|
|
2009
|
|
Operations:
|
|
|
|
|
|
|
|
|
Net investment income
|
|
$
|
4,140,693
|
|
|
$
|
12,421,581
|
|
|
$
|
12,719,068
|
|
|
Net realized gain (loss)
|
|
|
(588,041
|
)
|
|
|
(566,379
|
)
|
|
|
(11,418,077
|
)
|
|
Change in net unrealized appreciation (depreciation)
|
|
|
(17,162,059
|
)
|
|
|
11,208,254
|
|
|
|
31,138,157
|
|
|
Net increase (decrease) in net assets resulting from operations
|
|
|
(13,609,407
|
)
|
|
|
23,063,456
|
|
|
|
32,439,148
|
|
|
Distributions to preferred shareholder from net investment income
|
|
|
(78,948
|
)
|
|
|
(221,268
|
)
|
|
|
(598,588
|
)
|
|
Net increase (decrease) in net assets from operations applicable
to common shares
|
|
|
(13,688,355
|
)
|
|
|
22,842,188
|
|
|
|
31,840,560
|
|
|
Dividends to common shareholders from net investment income
|
|
|
(3,767,167
|
)
|
|
|
(11,301,500
|
)
|
|
|
(10,275,622
|
)
|
|
Net increase (decrease) in net assets
|
|
|
(17,455,522
|
)
|
|
|
11,540,688
|
|
|
|
21,564,938
|
|
|
Net assets applicable to common shares:
|
|
|
|
|
|
|
|
|
Beginning of period
|
|
|
199,529,581
|
|
|
|
187,988,893
|
|
|
|
166,423,955
|
|
|
End of period (includes undistributed net investment income of
$3,680,842, $3,395,057 and $2,500,748, respectively)
|
|
$
|
182,074,059
|
|
|
$
|
199,529,581
|
|
|
$
|
187,988,893
|
|
|
See accompanying Notes to Financial Statements which are an
integral part of the financial statements.
18 Invesco
Quality Municipal Securities
Statement
of Cash Flows
For
the period November 1, 2010 to February 28, 2011 and
the year ended October 31, 2010
|
|
|
|
|
|
|
|
|
|
|
Four months
ended
|
|
Year ended
|
|
|
February 28,
|
|
October 31,
|
|
|
2011
|
|
2010
|
|
Net increase (decrease) in net assets from operations applicable
to common shares
|
|
$
|
(13,688,355
|
)
|
|
$
|
22,842,188
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to reconcile the change in net assets applicable to
common shares from operations to net cash provided by operating
activities
|
|
|
|
|
Net realized gain (loss on) investments
|
|
|
588,041
|
|
|
|
1,035,797
|
|
|
Net change in unrealized appreciation (depreciation) on
investments
|
|
|
17,162,059
|
|
|
|
(11,533,224
|
)
|
|
Amortization of premium
|
|
|
280,766
|
|
|
|
697,847
|
|
|
Accretion of discount
|
|
|
(481,069
|
)
|
|
|
(1,532,178
|
)
|
|
Cost of purchases of investments
|
|
|
(7,812,874
|
)
|
|
|
(30,064,661
|
)
|
|
Proceeds from sales of investments
|
|
|
7,247,708
|
|
|
|
29,303,697
|
|
|
Net purchase of short-term investments
|
|
|
|
|
|
|
286,437
|
|
|
Decrease in interest receivables and other assets
|
|
|
1,238,527
|
|
|
|
(11,458
|
)
|
|
Decrease in accrued expenses and other payables
|
|
|
(121,198
|
)
|
|
|
17,018
|
|
|
Net cash provided by operating activities
|
|
|
4,413,605
|
|
|
|
11,041,463
|
|
|
Cash flows provided by (used in) financing activities:
|
|
|
|
|
Dividends paid to common shareholders from net investment income
|
|
|
(3,767,167
|
)
|
|
|
(11,301,500
|
)
|
|
Net proceeds from and repayment of floating rate note obligations
|
|
|
(100,360
|
)
|
|
|
343,000
|
|
|
Net cash provided by (used in) financing activities
|
|
|
(3,867,527
|
)
|
|
|
(10,958,500
|
)
|
|
Net increase in cash
|
|
|
546,078
|
|
|
|
82,963
|
|
|
Cash at beginning of period
|
|
|
82,963
|
|
|
|
|
|
|
Cash at end of period
|
|
$
|
629,041
|
|
|
$
|
82,963
|
|
|
Supplemental disclosure of cash flow information:
|
|
|
|
|
Cash paid during the period for interest, facilities and
maintenance fees
|
|
$
|
129,534
|
|
|
|
268,438
|
|
|
For the year ended October 31, 2010, facilities
and maintenance fees were excluded.
|
|
|
|
|
|
|
|
|
Notes
to Financial Statements
February 28,
2011
NOTE 1Significant
Accounting Policies
Invesco Quality Municipal Securities (the Trust), is
a Massachusetts business trust registered under the Investment
Company Act of 1940, as amended (the 1940 Act), as a
diversified, closed-end management investment company. Effective
June 1, 2010, the Trusts name changed from Morgan
Stanley Quality Municipal Securities to Invesco Quality
Municipal Securities.
On February 28, 2011, the Trusts fiscal
year-end changed from October 31 to February 28.
The Trusts investment objective is to provide
current income which is exempt federal income tax.
The following is a summary of the significant
accounting policies followed by the Trust in the preparation of
its financial statements.
|
|
|
A.
|
|
Security
Valuations
Securities, including
restricted securities, are valued according to the following
policy.
|
|
|
Securities are fair valued using an
evaluated quote provided by an independent pricing service
approved by the Board of Trustees. Evaluated quotes provided by
the pricing service may be determined without exclusive reliance
on quoted prices and may reflect appropriate factors such as
institution-size trading in similar groups of securities, yield,
quality, coupon rate, maturity, type of issue, individual
trading characteristics and other market data. Short-term
obligations, including commercial paper, having 60 days or
less to maturity are recorded at amortized cost which
approximates value. Securities with a demand feature exercisable
within one to seven days are valued at par. Debt securities are
subject to interest rate and credit risks. In addition, all debt
securities involve some risk of default with respect to interest
and principal payments.
|
|
|
Securities for which market quotations
either are not readily available or are unreliable are valued at
fair value as determined in good faith by or under the
supervision of the Trusts officers following procedures
approved by the Board of Trustees. Some of the factors which may
be considered in determining fair value are fundamental
analytical data relating to the investment; the nature and
duration of any restrictions on transferability or disposition;
trading
|
19 Invesco
Quality Municipal Securities
|
|
|
|
|
in similar securities by the same issuer or comparable
companies; relevant political, economic or issuer specific news;
and other relevant factors under the circumstances.
|
|
|
Valuations change in response to many
factors including the historical and prospective earnings of the
issuer, the value of the issuers assets, general economic
conditions, interest rates, investor perceptions and market
liquidity. Because of the inherent uncertainties of valuation,
the values reflected in the financial statements may materially
differ from the value received upon actual sale of those
investments.
|
B.
|
|
Securities
Transactions and Investment Income
Securities transactions are accounted for on a trade date basis.
Realized gains or losses on sales are computed on the basis of
specific identification of the securities sold. Interest income
is recorded on the accrual basis from settlement date. Dividend
income (net of withholding tax, if any) is recorded on the
ex-dividend date. Bond premiums and discounts are amortized
and/or
accreted for financial reporting purposes.
|
|
|
The Trust may periodically participate
in litigation related to Trust investments. As such, the Trust
may receive proceeds from litigation settlements. Any proceeds
received are included in the Statement of Operations as realized
gain (loss) for investments no longer held and as unrealized
gain (loss) for investments still held.
|
|
|
Brokerage commissions and mark ups are
considered transaction costs and are recorded as an increase to
the cost basis of securities purchased
and/or
a
reduction of proceeds on a sale of securities. Such transaction
costs are included in the determination of net realized and
unrealized gain (loss) from investment securities reported in
the Statement of Operations and the Statement of Changes in Net
Assets and the net realized and unrealized gains (losses) on
securities per share in the Financial Highlights. Transaction
costs are included in the calculation of the Trusts net
asset value and, accordingly, they reduce the Trusts total
returns. These transaction costs are not considered operating
expenses and are not reflected in net investment income reported
in the Statement of Operations and Statement of Changes in Net
Assets, or the net investment income per share and ratios of
expenses and net investment income reported in the Financial
Highlights, nor are they limited by any expense limitation
arrangements between the Trust and the investment adviser.
|
C.
|
|
Country
Determination
For the purposes of making
investment selection decisions and presentation in the Schedule
of Investments, the investment adviser may determine the country
in which an issuer is located
and/or
credit risk exposure based on various factors. These factors
include the laws of the country under which the issuer is
organized, where the issuer maintains a principal office, the
country in which the issuer derives 50% or more of its total
revenues and the country that has the primary market for the
issuers securities, as well as other criteria. Among the
other criteria that may be evaluated for making this
determination are the country in which the issuer maintains 50%
or more of its assets, the type of security, financial
guarantees and enhancements, the nature of the collateral and
the sponsor organization. Country of issuer
and/or
credit risk exposure has been determined to be the United States
of America, unless otherwise noted.
|
D.
|
|
Distributions
The Trust declares and pays monthly dividends from net
investment income to common shareholders. Distributions from net
realized capital gain, if any, are generally paid annually and
are distributed on a pro rata basis to common and preferred
shareholders. The Trust may elect to treat a portion of the
proceeds from redemptions as distributions for federal income
tax purposes.
|
E.
|
|
Federal Income
Taxes
The Trust intends to comply with
the requirements of Subchapter M of the Internal Revenue
Code necessary to qualify as a regulated investment company and
to distribute substantially all of the Trusts taxable
earnings to shareholders. As such, the Trust will not be subject
to federal income taxes on otherwise taxable income (including
net realized capital gain) that is distributed to shareholders.
Therefore, no provision for federal income taxes is recorded in
the financial statements.
|
|
|
In addition, the Trust intends to invest
in such municipal securities to allow it to qualify to pay
shareholders exempt-interest dividends, as defined
in the Internal Revenue Code.
|
|
|
The Trust files tax returns in the
U.S. Federal jurisdiction and certain other jurisdictions.
Generally the Trust is subject to examinations by such taxing
authorities for up to three years after the filing of the return
for the tax period.
|
F.
|
|
Accounting
Estimates
The preparation of financial
statements in conformity with accounting principles generally
accepted in the United States of America (GAAP)
requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the
date of the financial statements and the reported amounts of
revenues and expenses during the reporting period including
estimates and assumptions related to taxation. Actual results
could differ from those estimates by a significant amount. In
addition, the Trust monitors for material events or transactions
that may occur or become known after the period-end date and
before the date the financial statements are released to print.
|
G.
|
|
Indemnifications
Under the Trusts organizational documents, each Trustee,
officer, employee or other agent of the Trust is indemnified
against certain liabilities that may arise out of performance of
their duties to the Trust. Additionally, in the normal course of
business, the Trust enters into contracts, including the
Trusts servicing agreements that contain a variety of
indemnification clauses. The Trusts maximum exposure under
these arrangements is unknown as this would involve future
claims that may be made against the Trust that have not yet
occurred. The risk of material loss as a result of such
indemnification claims is considered remote.
|
H.
|
|
Cash and Cash
Equivalents
For the purposes of the
Statement of Cash Flows the Trust defines Cash and Cash
Equivalents as cash (including foreign currency), money market
funds and other investments held in lieu of cash and excludes
investments made with cash collateral received.
|
I.
|
|
Floating Rate
Note Obligations
The Trust invests in
inverse floating rate securities, such as Residual Interest
Bonds (RIBs) or Tender Option Bonds
(TOBs) for investment purposes and to enhance the
yield of the Trust. Inverse floating rate investments tend to
underperform the market for fixed rate bonds in a rising
interest rate environment, but tend to outperform the market for
fixed rate bonds when interest rates decline or remain
relatively stable. Such transactions may be purchased in the
secondary market without first owning the underlying bond or by
the sale of fixed rate bonds by the Trust to special purpose
trusts established by a broker dealer (Dealer
Trusts) in exchange for cash and residual interests in the
Dealer Trusts assets and cash flows, which are in the form
of inverse floating rate securities. The Dealer Trusts finance
the purchases of the fixed rate bonds by issuing floating rate
notes to third parties and allowing the Trust to retain residual
interest in the bonds. The floating rate notes issued by the
Dealer Trusts have interest rates that reset weekly and the
floating rate note holders have the option to tender their notes
to the Dealer Trusts for redemption at par at each reset date.
The residual interests held by the Trust (inverse floating rate
investments) include the right of the Trust (1) to cause
the holders of the floating
|
20 Invesco
Quality Municipal Securities
|
|
|
|
|
rate notes to tender their notes at par at the next interest
rate reset date, and (2) to transfer the municipal bond
from the Dealer Trusts to the Trust, thereby collapsing the
Dealer Trusts.
|
|
|
TOBs are presently classified as private
placement securities. Private placement securities are subject
to restrictions on resale because they have not been registered
under the Securities Act of 1933, as amended or are otherwise
not readily marketable. As a result of the absence of a public
trading market for these securities, they may be less liquid
than publicly traded securities. Although these securities may
be resold in privately negotiated transactions, the prices
realized from these sales could be less than those originally
paid by the Trust or less than what may be considered the fair
value of such securities.
|
|
|
The Trust accounts for the transfer of
bonds to the Dealer Trusts as secured borrowings, with the
securities transferred remaining in the Trusts investment
assets, and the related floating rate notes reflected as Trust
liabilities under the caption
Floating rate note
obligations
on the Statement of Assets and Liabilities. The
Trust records the interest income from the fixed rate bonds
under the caption
Interest
and records the expenses
related to floating rate obligations and any administrative
expenses of the Dealer Trusts as a component of
Interest,
facilities and maintenance fees
on the Statement of
Operations.
|
|
|
The Trust generally invest in inverse
floating rate securities that include embedded leverage, thus
exposing the Trust to greater risks and increased costs. The
primary risks associated with inverse floating rate securities
are varying degrees of liquidity and the changes in the value of
such securities in response to changes in market rates of
interest to a greater extent than the value of an equal
principal amount of a fixed rate security having similar credit
quality, redemption provisions and maturity which may cause the
Trusts net asset value to be more volatile than if it had
not invested in inverse floating rate securities. In certain
instances, the short-term floating rate interests created by the
special purpose trust may not be able to be sold to third
parties or, in the case of holders tendering (or putting) such
interests for repayment of principal, may not be able to be
remarketed to third parties. In such cases, the special purpose
trust holding the long-term fixed rate bonds may be collapsed.
In the case of RIBs or TOBs created by the contribution of
long-term fixed income bonds by the Trust, the Trust will then
be required to repay the principal amount of the tendered
securities. During times of market volatility, illiquidity or
uncertainty, the Trust could be required to sell other portfolio
holdings at a disadvantageous time to raise cash to meet that
obligation.
|
J.
|
|
Futures
Contracts
The Trust may enter into
futures contracts to manage exposure to interest rate, equity
and market price movements
and/or
currency risks. A futures contract is an agreement between two
parties to purchase or sell a specified underlying security,
currency or commodity (or delivery of a cash settlement price,
in the case of an index future) for a fixed price at a future
date. The Trust currently invests only in exchange-traded
futures and they are standardized as to maturity date and
underlying financial instrument. Initial margin deposits
required upon entering into futures contracts are satisfied by
the segregation of specific securities or cash as collateral at
the futures commission merchant (broker). During the period the
futures contracts are open, changes in the value of the
contracts are recognized as unrealized gains or losses by
recalculating the value of the contracts on a daily basis.
Subsequent or variation margin payments are received or made
depending upon whether unrealized gains or losses are incurred.
These amounts are reflected as receivables or payables on the
Statement of Assets and Liabilities. When the contracts are
closed or expire, the Trust recognizes a realized gain or loss
equal to the difference between the proceeds from, or cost of,
the closing transaction and the Trusts basis in the
contract. The net realized gain (loss) and the change in
unrealized gain (loss) on futures contracts held during the
period is included on the Statement of Operations. The primary
risks associated with futures contracts are market risk and the
absence of a liquid secondary market. If the Trust were unable
to liquidate a futures contract
and/or
enter
into an offsetting closing transaction, the Trust would continue
to be subject to market risk with respect to the value of the
contracts and continue to be required to maintain the margin
deposits on the futures contracts. Futures contracts have
minimal counterparty risk since the exchanges
clearinghouse, as counterparty to all exchange traded futures,
guarantees the futures against default. Risks may exceed amounts
recognized in the Statement of Assets and Liabilities.
|
K.
|
|
Other
Risks
The value of, payment of interest
on, repayment of principal for and the ability of the Trust to
sell a municipal security may be affected by constitutional
amendments, legislative enactments, executive orders,
administrative regulations, voter initiatives and the economics
of the regions in which the issuers in which the Trust invests
are located.
|
|
|
Since many municipal securities are
issued to finance similar projects, especially those relating to
education, health care, transportation and utilities, conditions
in those sectors can affect the overall municipal securities
market and the Trust.
|
|
|
There is some risk that a portion or all
of the interest received from certain tax-free municipal
securities could become taxable as a result of determinations by
the Internal Revenue Service.
|
L.
|
|
Interest,
Facilities and Maintenance Fees
Interest,
Facilities and Maintenance Fees include interest and related
borrowing costs such as commitment fees and other expenses
associated with lines of credit and interest and administrative
expenses related to establishing and maintaining Auction Rate
Preferred Shares and floating rate note obligations, if any.
|
NOTE 2Advisory
Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory
agreement with Invesco Advisers, Inc. (the Adviser
or Invesco). Under the terms of the investment
advisory agreement, the Trust pays an advisory fee to the
Adviser based on the annual rate 0.27% of the Trusts
average weekly net assets including current preferred shares and
leverage entered into to retire preferred shares of the Trust.
Prior to June 1, 2010, the Trust paid an advisory fee of
$447,090 to Morgan Stanley Investment Advisors Inc.
(MSIA) based on the annual rate and Trusts
average weekly net assets as discussed above.
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 Australia
Limited, Invesco Hong Kong Limited, Invesco Senior Secured
Management, Inc. and Invesco Trimark Ltd. (collectively, the
Affiliated
Sub-Advisers)
the Adviser, not the Trust, may pay 40% of the fees paid to the
Adviser to any such Affiliated
Sub-Adviser(s)
that provide discretionary investment management services to the
Trust based on the percentage of assets allocated to such
Sub-Adviser(s).
The Adviser has contractually agreed, through at
least June 30, 2012, to waive advisory fees
and/or
reimburse expenses to the extent necessary to limit the
Trusts expenses (excluding certain items discussed below)
to 0.66%. In determining the Advisers obligation to waive
advisory fees
and/or
reimburse expenses, the following expenses are not taken into
account, and could cause the Trusts expenses to exceed the
limit reflected above: (1) interest, facilities and
maintenance
21 Invesco
Quality Municipal Securities
fees; (2) taxes; (3) dividend expense on short sales;
(4) extraordinary or non-routine items; and
(5) expenses that the Trust has incurred but did not
actually pay because of an expense offset arrangement. Unless
the Board of Trustees and Invesco mutually agree to amend or
continue the fee waiver agreement, it will terminate on
June 30, 2012. The Adviser did not waive fees
and/or
reimburse expenses during the period under this expense
limitation.
Prior June 1, 2010, investment advisory fees
paid by the Fund were reduced by an amount equal to the advisory
and administrative service fees paid by Morgan Stanley
Institutional Liquidity Funds Tax Exempt
Portfolio Institutional Class shares.
The Trust has entered into a master administrative
services agreement with Invesco pursuant to which the Trust has
agreed to pay Invesco for certain administrative costs incurred
in providing accounting services to the Trust. Prior to
June 1, 2010, the Trust paid an administration fee of
$132,476 to Morgan Stanley Services Company, Inc. For the period
November 1, 2010 to February 28, 2011 and the year
ended October 31, 2010, expenses incurred under these
agreements are shown in the Statement of Operations as
administrative services fees. Also, Invesco has entered into
service agreements whereby State Street Bank and
Trust Company (SSB) serves as the custodian and
fund accountant and provides certain administrative services to
the Trust.
For the year ended October 31, 2010, the
Adviser and MSIA waived advisory fees of $1,854 and $133,
respectively.
Certain officers and trustees of the Trust are
officers and directors of Invesco.
NOTE 3Additional
Valuation Information
GAAP defines fair value as the price that would be received to
sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date,
under current market conditions. GAAP establishes a hierarchy
that prioritizes the inputs to valuation methods giving the
highest priority to readily available unadjusted quoted prices
in an active market for identical assets (Level 1) and
the lowest priority to significant unobservable inputs
(Level 3) generally when market prices are not readily
available or are unreliable. Based on the valuation inputs, the
securities or other investments are tiered into one of three
levels. Changes in valuation methods may result in transfers in
or out of an investments assigned level:
|
|
|
|
Level 1
|
Prices are determined using quoted prices in an active market
for identical assets.
|
|
Level 2
|
Prices are determined using other significant observable inputs.
Observable inputs are inputs that other market participants may
use in pricing a security. These may include quoted prices for
similar securities, interest rates, prepayment speeds, credit
risk, yield curves, loss severities, default rates, discount
rates, volatilities and others.
|
|
Level 3
|
Prices are determined using significant unobservable inputs. In
situations where quoted prices or observable inputs are
unavailable (for example, when there is little or no market
activity for an investment at the end of the period),
unobservable inputs may be used. Unobservable inputs reflect the
Trusts own assumptions about the factors market
participants would use in determining fair value of the
securities or instruments and would be based on the best
available information.
|
The following is a summary of the tiered valuation
input levels, as of February 28, 2011. The level assigned
to the securities valuations may not be an indication of the
risk or liquidity associated with investing in those securities.
Because of the inherent uncertainties of valuation, the values
reflected in the financial statements may materially differ from
the value received upon actual sale of those investments.
During the period November 1, 2010 to
February 28, 2011, there were no significant transfers
between investment levels.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
Municipal Obligations
|
|
$
|
|
|
|
$
|
273,326,646
|
|
|
$
|
|
|
|
$
|
273,326,646
|
|
|
NOTE 4Derivative
Investments
The Trust has implemented the required disclosures about
derivative instruments and hedging activities in accordance with
GAAP. This disclosure is intended to improve financial reporting
about derivative instruments and hedging activities by requiring
enhanced disclosures to enable investors to better understand
their effects on an entitys financial position and
financial performance. The enhanced disclosure has no impact on
the results of operations reported in the financial statements.
Effect of
Derivative Instruments for the Period of November 1, 2010
to February 28, 2011 and the year ended October 31,
2010.
The table below summarizes the gains (losses) on derivative
instruments, detailed by primary risk exposure, recognized in
earnings during the period:
|
|
|
|
|
|
|
|
|
|
|
Location of Gain
(Loss) on
|
|
|
Statement of
Operations
|
|
|
Futures
|
|
|
Four months
|
|
|
|
|
ended
|
|
Year ended
|
|
|
February 28,
|
|
October 31,
|
|
|
2011
|
|
2010*
|
|
Realized Gain (Loss)
|
|
|
|
|
|
|
|
|
Interest risk
|
|
$
|
|
|
|
$
|
469,418
|
|
|
Change in Unrealized Appreciation (Depreciation)
|
|
|
|
|
|
|
|
|
Interest rate risk
|
|
|
|
|
|
|
(324,970
|
)
|
|
Total
|
|
$
|
|
|
|
$
|
144,448
|
|
|
|
|
*
|
The average notional value of
futures outstanding during the year ended October 31, 2010
was $943,952.
|
22 Invesco
Quality Municipal Securities
NOTE 5Trustees
and Officers Fees and Benefits
Trustees and Officers Fees and Benefits
include amounts accrued by the Trust to pay remuneration to
certain Trustees and Officers of the Trust. Trustees have the
option to defer compensation payable by the Trust, and
Trustees and Officers Fees and Benefits
also include amounts accrued by the Trust to fund such deferred
compensation amounts. Those Trustees who defer compensation have
the option to select various Invesco Funds in which their
deferral accounts shall be deemed to be invested. Finally,
certain current Trustees are eligible to participate in a
retirement plan that provides for benefits to be paid upon
retirement to Trustees over a period of time based on the number
of years of service. The Trust may have certain former Trustees
who also participate in a retirement plan and receive benefits
under such plan. Trustees and Officers Fees
and Benefits include amounts accrued by the Trust to fund
such retirement benefits. Obligations under the deferred
compensation and retirement plans represent unsecured claims
against the general assets of the Trust.
During the period November 1, 2010 to
February 28, 2011 and the period June 1, 2010 to
October 31, 2010, the Trust paid legal fees of $675 and
$72, respectively, for services rendered by Kramer, Levin,
Naftalis & Frankel LLP as counsel to the Independent
Trustees. A member of that firm is a Trustee of the Trust.
NOTE 6Cash
Balances and Borrowings
The Trust is permitted to temporarily carry a negative or
overdrawn balance in its account with SSB, the custodian bank.
To compensate the custodian bank for such overdrafts, the
overdrawn Trust may either (1) leave funds as a
compensating balance in the account so the custodian bank can be
compensated by earning the additional interest; or
(2) compensate by paying the custodian bank at a rate
agreed upon by the custodian bank and Invesco, not to exceed the
contractually agreed upon rate.
Inverse floating rate obligations resulting form the
transfer of bonds to Dealer Trusts are accounted for as secured
borrowings. The average floating rate notes outstanding and
average annual interest and fees related to inverse floating
rate note obligations during November 1, 2010 to
February 28, 2011 were $38,747,000 and 0.65%, respectively.
NOTE 7Distributions
to Shareholders and Tax Components of Net Assets
Tax Character
of Distributions to Shareholders Paid the During the Period
November 1, 2010 to February 28, 2011 and the Years
Ended October 31, 2010 and 2009:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Four months
|
|
|
|
|
|
|
ended
|
|
Year ended
|
|
Year ended
|
|
|
February 28,
2011
|
|
October 31,
2010
|
|
October 31,
2009
|
|
Tax-exempt income
|
|
$
|
3,846,115
|
|
|
$
|
11,518,176
|
|
|
$
|
10,874,210
|
|
|
Ordinary income
|
|
|
|
|
|
|
4,592
|
|
|
|
|
|
|
Total distributions
|
|
$
|
3,846,115
|
|
|
$
|
11,522,768
|
|
|
$
|
10,874,210
|
|
|
Tax Components
of Net Assets at Period-End:
|
|
|
|
|
|
|
2011
|
|
Undistributed ordinary income
|
|
$
|
3,476,344
|
|
|
Net unrealized appreciation (depreciation)
investments
|
|
|
(5,348,056
|
)
|
|
Temporary book/tax differences
|
|
|
(60,033
|
)
|
|
Capital loss carryforward
|
|
|
(14,892,903
|
)
|
|
Shares of beneficial interest common shares
|
|
|
198,898,707
|
|
|
Total net assets attributable to common shares
|
|
$
|
182,074,059
|
|
|
The difference between book-basis and tax-basis
unrealized appreciation (depreciation) is due to differences in
the timing of recognition of gains and losses on investments for
tax and book purposes. The Trusts net unrealized
appreciation (depreciation) difference is attributable primarily
to bond amortization accretion.
The temporary book/tax differences are a result of
timing differences between book and tax recognition of income
and/or
expenses. The Trusts temporary book/tax differences are
the result of the trustee deferral of compensation and
retirement plan benefits.
Capital loss carryforward is calculated and reported
as of a specific date. Results of transactions and other
activity after that date may affect the amount of capital loss
carryforward actually available for the Trust to utilize. The
ability to utilize capital loss carryforward in the future may
be limited under the Internal Revenue Code and related
regulations based on the results of future transactions.
23 Invesco
Quality Municipal Securities
The Trust has a capital loss carryforward as of
February 28, 2011 which expires as follows:
|
|
|
|
|
|
|
Capital Loss
|
Expiration
|
|
Carryforward*
|
|
February 28, 2015
|
|
$
|
249,765
|
|
|
February 28, 2016
|
|
|
1,475,005
|
|
|
February 28, 2017
|
|
|
11,693,456
|
|
|
February 28, 2018
|
|
|
886,636
|
|
|
February 28, 2019
|
|
|
588,041
|
|
|
Total capital loss carryforward
|
|
$
|
14,892,903
|
|
|
|
|
*
|
Capital loss carryforward as of the
date listed above is reduced for limitations, if any, to the
extent required by the Internal Revenue Code.
|
NOTE 8Investment
Securities
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 Trust during the
period November 1, 2010 to February 28, 2011 was
$3,353,807 and $7,445,655, respectively. Cost of investments on
a tax basis includes the adjustments for financial reporting
purposes as of the most recently completed Federal income tax
reporting period-end.
|
|
|
|
|
Unrealized
Appreciation (Depreciation) of Investment Securities on a Tax
Basis
|
|
Aggregate unrealized appreciation of investment securities
|
|
$
|
7,479,186
|
|
|
Aggregate unrealized (depreciation) of investment securities
|
|
|
(12,827,242
|
)
|
|
Net unrealized appreciation (depreciation) of investment
securities
|
|
$
|
(5,348,056
|
)
|
|
Cost of investments for tax purposes is $278,674,702.
|
NOTE 9Reclassification
of Permanent Differences
Primarily as a result of differing book/tax treatment of federal
income taxes on February 28, 2011, undistributed net
investment income was decreased by $8,793 and shares of
beneficial interest increased by $8,793. This reclassification
had no effect on the net assets of the Trust.
NOTE 10Preferred
Shares of Beneficial Interest
The Trust has issued Series 1 through 5 Auction Rate
Preferred Shares (preferred shares) which have a
liquidation value of $50,000 per share plus the redemption
premium, if any, plus accumulated but unpaid dividends, whether
or not declared, thereon to the date of distribution. The Trust
may redeem such shares, in whole or in part, at the original
purchase price of $50,000 per share plus accumulated but unpaid
dividends, whether or not declared, thereon to the date of
redemption.
Historically, the Trust paid annual fees equivalent
to 0.25% of the preferred share liquidation value for the
remarketing efforts associated with the preferred auction.
Effective March 31, 2009, the Trust decreased this amount
to 0.15% due to auction failures. In the future, if auctions no
longer fail, the Trust may return to an annual fee payment of
0.25% of the preferred share liquidation value. These fees are
included as a component of interest, facilities and maintenance
fees on the Statement of Operations.
Dividends, which are cumulative, are reset through
auction procedures.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount
|
|
|
|
|
|
Range of
Dividend
|
Series
|
|
Shares
|
|
(000s
omitted)
|
|
Rate
|
|
Reset
Date
|
|
Rates
|
|
1
|
|
|
193
|
|
|
$
|
9,650
|
|
|
|
0.396
|
%
|
|
|
03/08/2011
|
|
|
|
0.366-0.503
|
%
|
|
2
|
|
|
170
|
|
|
|
8,500
|
|
|
|
0.426
|
|
|
|
03/02/2011
|
|
|
|
0.366-0.503
|
|
|
3
|
|
|
170
|
|
|
|
8,500
|
|
|
|
0.411
|
|
|
|
03/03/2011
|
|
|
|
0.366-0.503
|
|
|
4
|
|
|
340
|
|
|
|
17,000
|
|
|
|
0.396
|
|
|
|
03/08/2011
|
|
|
|
0.366-0.503
|
|
|
5
|
|
|
227
|
|
|
|
11,350
|
|
|
|
0.396
|
|
|
|
03/08/2011
|
|
|
|
0.366-0.503
|
|
|
|
|
|
|
|
As of February 28, 2011.
|
|
|
For the period November 1,
2010 to February 28, 2011.
|
Subsequent to February 28, 2011 and up through
April 7, 2011, the Trust paid dividends to preferred
shareholders at rates ranging from 0.381% to 0.396% in the
aggregate amount of $20,531.
The Trust is subject to certain restrictions
relating to the preferred shares. Failure to comply with these
restrictions could preclude the Trust from declaring any
distributions to common shareholders or purchasing common shares
and/or
could
trigger the mandatory redemption of preferred shares at
liquidation value.
Beginning November 1, 2010 and continuing
through February 28, 2011 all series of preferred shares of
the Trust were not successfully remarketed. As a result, the
dividend rates of these preferred shares were reset to the
maximum applicable rate.
The preferred shares, which are entitled to one vote
per share, generally vote with the common shares but vote
separately as a class to elect two Trustees and on any matters
affecting the rights of the preferred shares.
24 Invesco
Quality Municipal Securities
The preferred shares are not listed on an exchange.
Investors in preferred shares may participate in auctions
through authorized broker-dealers; however, such broker-dealers
are not required to maintain a secondary market in preferred
shares, and there can be no assurance that a secondary market
will develop, or if it does develop, a secondary market may not
provide you with liquidity. When a preferred share auction
fails, investors may not be able to sell any or all of their
preferred shares and because of the nature of the market for
preferred shares, investors may receive less than the price paid
for their preferred shares if sold outside of the auction.
The Trust entered into additional floating rate note
obligations as an alternative form of leverage in order to
redeem and to retire a portion of its preferred shares.
Transactions in preferred shares were as follows:
|
|
|
|
|
|
|
|
|
|
|
Shares
|
|
Value
|
|
Outstanding at October 31, 2009
|
|
|
1,100
|
|
|
$
|
55,000,000
|
|
|
Shares retired
|
|
|
|
|
|
|
|
|
|
Outstanding at October 31, 2010
|
|
|
1,100
|
|
|
|
55,000,000
|
|
|
Shares retired
|
|
|
|
|
|
|
|
|
|
Outstanding at February 28, 2011
|
|
|
1,100
|
|
|
$
|
55,000,000
|
|
|
NOTE 11Common
Shares of Beneficial Interest
Transactions in common shares of beneficial interest were as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Four months
|
|
|
|
|
|
|
ended
|
|
Year ended
|
|
Year ended
|
|
|
February 28,
|
|
October 31,
|
|
October 31,
|
|
|
2011
|
|
2010
|
|
2009
|
|
Beginning shares
|
|
|
13,454,169
|
|
|
|
13,454,169
|
|
|
|
13,454,169
|
|
|
Shares issued through dividend reinvestment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending shares
|
|
|
13,454,169
|
|
|
|
13,454,169
|
|
|
|
13,454,169
|
|
|
The Trustees have approved share repurchases whereby
the Trust may, when appropriate, purchase shares in the open
market or in privately negotiated transactions at a price not
above market value or net asset value, whichever is lower at the
time of purchase.
NOTE 12Dividends
The Trust declared the following dividends to common
shareholders from net investment income subsequent to
February 28, 2011:
|
|
|
|
|
|
|
|
|
|
|
|
|
Declaration
Date
|
|
Amount Per
Share
|
|
Record
Date
|
|
Payable
Date
|
|
March 1, 2011
|
|
$
|
0.07
|
|
|
|
March 15, 2011
|
|
|
|
March 31, 2011
|
|
|
April 1, 2011
|
|
$
|
0.07
|
|
|
|
April 15, 2011
|
|
|
|
April 29, 2011
|
|
|
25 Invesco
Quality Municipal Securities
NOTE 13Financial
Highlights
The following schedule presents financial highlights for a share
of the Fund outstanding throughout the periods indicated.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Four months
|
|
|
|
|
ended
|
|
|
|
|
February
28
|
|
Year ended
October 31
|
|
|
2011
|
|
2010
|
|
2009
|
|
2008
|
|
2007
|
|
2006
|
|
Net asset value, beginning of period
|
|
$
|
14.83
|
|
|
$
|
13.97
|
|
|
$
|
12.37
|
|
|
$
|
15.27
|
|
|
$
|
16.04
|
|
|
$
|
15.86
|
|
|
Net investment
income
(a)
|
|
|
0.31
|
|
|
|
0.92
|
|
|
|
0.95
|
|
|
|
0.96
|
|
|
|
0.97
|
|
|
|
0.95
|
|
|
Net gains (losses) on securities (both realized and unrealized)
|
|
|
(1.32
|
)
|
|
|
0.80
|
|
|
|
1.45
|
|
|
|
(2.91
|
)
|
|
|
(0.71
|
)
|
|
|
0.43
|
|
|
Common share equivalent of dividends paid to preferred
shareholders
(a)
|
|
|
(0.01
|
)
|
|
|
(0.02
|
)
|
|
|
(0.04
|
)
|
|
|
(0.25
|
)
|
|
|
(0.26
|
)
|
|
|
(0.22
|
)
|
|
Total from investment operations
|
|
|
(1.02
|
)
|
|
|
1.70
|
|
|
|
2.36
|
|
|
|
(2.20
|
)
|
|
|
|
|
|
|
1.16
|
|
|
Less distributions from:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends from net investment income
|
|
|
(0.28
|
)
|
|
|
(0.84
|
)
|
|
|
(0.76
|
)
|
|
|
(0.72
|
)
|
|
|
(0.72
|
)
|
|
|
(0.80
|
)
|
|
Distributions from net realized gains
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.08
|
)
|
|
|
(0.23
|
)
|
|
Total distributions
|
|
|
(0.28
|
)
|
|
|
(0.84
|
)
|
|
|
(0.76
|
)
|
|
|
(0.72
|
)
|
|
|
(0.80
|
)
|
|
|
(1.03
|
)
|
|
Anti-dilutive effect of shares
repurchased
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.02
|
|
|
|
0.03
|
|
|
|
0.05
|
|
|
Net asset value, end of period
|
|
$
|
13.53
|
|
|
$
|
14.83
|
|
|
$
|
13.97
|
|
|
$
|
12.37
|
|
|
$
|
15.27
|
|
|
$
|
16.04
|
|
|
Market value, end of period
|
|
$
|
12.65
|
|
|
$
|
14.31
|
|
|
$
|
12.80
|
|
|
$
|
10.55
|
|
|
$
|
13.63
|
|
|
$
|
14.70
|
|
|
Total return at net asset
value
(b)
|
|
|
(6.78
|
)%
|
|
|
12.81
|
%
|
|
|
29.60
|
%
|
|
|
18.14
|
%
|
|
|
(2.04
|
)%
|
|
|
12.11
|
%
|
|
Total return at market
value
(b)
|
|
|
(9.67
|
)%
|
|
|
18.81
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios/supplemental data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of period (000s omitted)
|
|
$
|
182,074
|
|
|
$
|
199,530
|
|
|
$
|
187,989
|
|
|
$
|
166,424
|
|
|
$
|
207,833
|
|
|
$
|
223,185
|
|
|
Portfolio turnover
rate
(c)
|
|
|
1
|
%
|
|
|
11
|
%
|
|
|
21
|
%
|
|
|
9
|
%
|
|
|
14
|
%
|
|
|
15
|
%
|
|
Ratios/supplemental data based on average net assets applicable
to common shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of
expenses
(d)
|
|
|
0.60
|
%
(e)(f)
|
|
|
0.85
|
%
(g)
|
|
|
0.99
|
%
(g)
|
|
|
1.23
|
%
(g)
|
|
|
1.28
|
%
(g)
|
|
|
0.93
|
%
|
|
Ratio of expenses, exclusive of interest, facilities and
maintenance
fees
(d)
|
|
|
0.39
|
%
(e)(f)
|
|
|
0.71
|
%
(g)
|
|
|
0.78
|
%
(g)
|
|
|
0.79
|
%
(g)
|
|
|
0.76
|
%
(g)
|
|
|
0.79
|
%
|
|
Ratio of net investment income before preferred share dividends
|
|
|
6.87
|
%
(e)
|
|
|
6.41
|
%
(g)
|
|
|
7.33
|
%
(g)
|
|
|
6.57
|
%
(g)
|
|
|
6.19
|
%
(g)
|
|
|
6.08
|
%
|
|
Preferred share dividends
|
|
|
0.13
|
%
(e)
|
|
|
0.11
|
%
(g)
|
|
|
0.34
|
%
(g)
|
|
|
1.70
|
%
(g)
|
|
|
1.67
|
%
(g)
|
|
|
1.38
|
%
|
|
Ratio of net investment income applicable to common shareholders
|
|
|
6.74
|
%
(e)
|
|
|
6.30
|
%
(g)
|
|
|
6.99
|
%
(g)
|
|
|
4.87
|
%
(g)
|
|
|
4.52
|
%
(g)
|
|
|
4.70
|
%
|
|
Rebate from Morgan Stanley affiliate
|
|
|
|
|
|
|
|
%
|
|
|
0.00
|
%
(h)
|
|
|
0.00
|
%
(h)
|
|
|
0.00
|
%
(h)
|
|
|
|
%
|
|
Senior securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total amount of preferred shares outstanding (000s omitted)
|
|
$
|
55,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset coverage on preferred shares at end of
period
(i)
|
|
$
|
215,522
|
|
|
|
463
|
%
|
|
|
442
|
%
|
|
|
330
|
%
|
|
|
314
|
%
|
|
|
330
|
%
|
|
Liquidating preference per preferred share
|
|
$
|
50,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
|
Calculated using average shares
outstanding.
|
(b)
|
|
Net asset value return includes
adjustments in accordance with accounting principles generally
accepted in the United States of America and measures the
changes in common shares value over the period indicated,
taking into account dividends as reinvested. Market value return
is computed based upon the New York Stock Exchange market price
of the Funds common shares and excludes the effects of
brokerage commissions. Dividends and distributions, if any, are
assumed for purposes of this calculation, to be reinvested at
prices obtained under the Funds dividend reinvestment plan.
|
(c)
|
|
Portfolio turnover is calculated at
the fund level and is not annualized for periods less than one
year, if applicable.
|
(d)
|
|
Ratios does not reflect the effect
of dividend payments to preferred shareholders. For the periods
ended October 31, 2010 and prior, ratio does not exclude
facilities and maintenance fees.
|
(e)
|
|
Ratios are annualized and based on
average daily net assets applicable to common shares (000s
omitted) of $183,449.
|
(f)
|
|
Ratio includes an adjustment for a
change in accounting estimate for professional services fees
during the period. Ratios excluding this adjustment would have
been higher by 0.16%.
|
(g)
|
|
The ratios reflect the rebate of
certain Fund expenses in connection with investments in a Morgan
Stanley affiliate during the period. The effect of the rebate on
the ratios is disclosed in the above table as Rebate from
Morgan Stanley affiliate.
|
(h)
|
|
Amount is less than 0.005%.
|
(i)
|
|
Calculated by subtracting the
Trusts total liabilities (not including preferred shares)
from the Trusts total assets and dividing this number by
the number of preferred shares outstanding. For periods prior to
February 28, 2011, calculated by subtracting the
Trusts total liabilities (not including the preferred
shares) from the Trusts total assets and dividing this by
preferred shares at liquidation value.
|
26 Invesco
Quality Municipal Securities
Report
of Independent Registered Public Accounting Firm
To the Board of Trustees and Shareholders of
Invesco Quality Municipal Securities:
In our opinion, the accompanying statement of assets and
liabilities, including the schedule of investments, and the
related statements of operations, of changes in net assets and
of cash flows and the financial highlights present fairly, in
all material respects, the financial position of Invesco Quality
Municipal Securities (hereafter referred to as the
Trust) at February 28, 2011, and the results of
its operations, the changes in its net assets, its cash flows,
and the financial highlights for the period ended
February 28, 2011 and the year ended October 31, 2010,
in conformity with accounting principles generally accepted in
the United States of America. These financial statements and
financial highlights (hereafter referred to as financial
statements) are the responsibility of the Trusts
management. Our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our
audits of these financial statements in accordance with the
standards of the Public Company Accounting Oversight Board
(United States). Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant
estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits,
which included confirmation of securities at February 28,
2011 by correspondence with the custodian and brokers, provide a
reasonable basis for our opinion. The statement of changes in
net assets for the year ended October 31, 2009 and the
financial highlights of the Trust for the periods ended
October 31, 2009 and prior were audited by other
independent auditors whose report dated December 24, 2009
expressed an unqualified opinion on those financial statements.
PRICEWATERHOUSECOOPERS LLP
April 21, 2011
Houston, Texas
27 Invesco
Quality Municipal Securities
Tax
Information
Form 1099-DIV,
Form 1042-S
and other year-end tax information provide shareholders with
actual calendar year amounts that should be included in their
tax returns. Shareholders should consult their tax advisors.
The following distribution information is being
provided as required by the Internal Revenue Code or to meet a
specific states requirement.
The Trust designates the following amounts or, if
subsequently determined to be different, the maximum amount
allowable for its fiscal year ended February 28, 2011:
|
|
|
|
|
Federal and State Income
Tax
|
|
|
|
Tax-Exempt Interest Dividends*
|
|
|
100%
|
|
|
|
|
|
*
|
The above percentage is based on ordinary income dividends paid
to shareholders during the Trusts fiscal year.
|
28 Invesco
Quality Municipal Securities
Trustees and Officers
The address of each trustee and officer is 1555 Peachtree, N.E., Atlanta, Georgia 30309.
Generally, each trustee serves for a three year term or until his or her successor has been duly
elected and qualified, and each officer serves for a one year term or until his or her successor
has been duly elected and qualified. Column two below includes length of time served with
predecessor entities, if any.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
|
|
|
|
|
|
|
|
|
|
|
Funds in
|
|
|
|
|
|
|
|
|
|
|
Fund Complex
|
|
|
|
|
Name, Year of Birth and
|
|
Trustee and/
|
|
Principal Occupation(s)
|
|
Overseen by
|
|
Other Directorship(s)
|
|
|
Position(s) Held with the Trust
|
|
or Officer Since
|
|
During Past 5 Years
|
|
Trustee
|
|
Held by Trustee
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interested Persons
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Martin L. Flanagan
1
1960
Trustee
|
|
2010
|
|
Executive Director, Chief Executive Officer and President, Invesco Ltd.
(ultimate parent of Invesco and a global investment management firm);
Advisor to the Board, Invesco Advisers, Inc. (formerly known as Invesco
Institutional (N.A.), Inc.); Trustee, The Invesco Funds; Vice Chair,
Investment Company Institute; and Member of Executive Board, SMU Cox
School of Business
Formerly: Chairman, Invesco Advisers, Inc. (registered investment
adviser); Director, Chairman, Chief Executive Officer and President,
IVZ Inc. (holding company), INVESCO Group Services, Inc. (service
provider) and Invesco North American Holdings, Inc. (holding company);
Director, Chief Executive Officer and President, Invesco Holding
Company Limited (parent of Invesco and a global investment management
firm); Director, Invesco Ltd.; Chairman, Investment Company Institute
and President, Co-Chief Executive Officer, Co-President, Chief
Operating Officer and Chief Financial Officer, Franklin Resources, Inc.
(global investment management organization)
|
|
208
|
|
None
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Philip A. Taylor
2
1954
Trustee, President and Principal
Executive Officer
|
|
2010
|
|
Head of North American Retail and Senior Managing Director, Invesco
Ltd.; Director, Co-Chairman, Co-President and Co-Chief Executive
Officer, Invesco Advisers, Inc. (formerly known as Invesco
Institutional (N.A.), Inc.) (registered investment adviser); Director,
Chief Executive Officer and President, 1371 Preferred Inc. (holding
company); Director, Chairman, Chief Executive Officer and President,
Invesco Management Group, Inc. (formerly Invesco Aim Management Group,
Inc.) (financial services holding company); Director and President,
INVESCO Funds Group, Inc. (registered investment adviser and registered
transfer agent) and AIM GP Canada Inc. (general partner for limited
partnerships); Director and Chairman, Invesco Investment Services, Inc.
(formerly known as Invesco Aim Investment Services, Inc.) (registered
transfer agent) and IVZ Distributors, Inc. (formerly known as INVESCO
Distributors, Inc.) (registered broker dealer); Director, President and
Chairman, Invesco Inc. (holding company) and Invesco Canada Holdings
Inc. (holding company); Chief Executive Officer, Invesco Trimark
Corporate Class Inc. (corporate mutual fund company) and Invesco
Trimark Canada Fund Inc. (corporate mutual fund company); Director and
Chief Executive Officer, Invesco Trimark Ltd./Invesco Trimark Ltèe
(registered investment adviser and registered transfer agent) and
Invesco Trimark Dealer Inc. (registered broker dealer); Trustee,
President and Principal Executive Officer, The Invesco Funds (other
than AIM Treasurers Series Trust (Invesco Treasurers Series Trust)
and Short-Term Investments Trust); Trustee and Executive Vice
President, The Invesco Funds (AIM Treasurers Series Trust (Invesco
Treasurers Series Trust) and Short-Term Investments Trust only); and
Director, Van Kampen Asset Management; Director, Chief Executive
Officer and President, Van Kampen Investments Inc. and Van Kampen
Exchange Corp.; Director and Chairman, Van Kampen Investor Services
Inc. and Director and President, Van Kampen Advisors, Inc.
Formerly: Director, Invesco Distributors, Inc. (formerly known as
Invesco Aim Distributors, Inc.) (registered broker dealer); Manager,
Invesco PowerShares Capital Management LLC; Director, Chief Executive
Officer and President, Invesco Advisers, Inc.; Director, Chairman,
Chief Executive Officer and President, Invesco Aim Capital Management,
Inc.; President, Invesco Trimark Dealer Inc. and Invesco Trimark
Ltd./Invesco Trimark Ltèe; Director and President, AIM Trimark
Corporate Class Inc. and AIM Trimark Canada Fund Inc.; Senior Managing
Director, Invesco Holding Company Limited; Trustee and Executive Vice
President, Tax-Free Investments Trust; Director and Chairman, Fund
Management Company (former registered broker dealer); President and
Principal Executive Officer, The Invesco Funds (AIM Treasurers Series
Trust (Invesco Treasurers Series Trust), Short-Term Investments Trust
and Tax-Free Investments Trust only); President, AIM Trimark Global
Fund Inc. and AIM Trimark Canada Fund Inc.
|
|
208
|
|
None
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wayne M. Whalen
3
1939
Trustee
|
|
2010
|
|
Of Counsel, and prior to 2010, partner in the law firm of Skadden,
Arps, Slate, Meagher & Flom LLP, legal counsel to funds in the Fund
Complex
|
|
226
|
|
Director of the
Abraham Lincoln
Presidential
Library Foundation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Independent Trustees
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bruce L. Crockett 1944
Trustee and Chair
|
|
2010
|
|
Chairman, Crockett Technology Associates (technology consulting company)
Formerly: Director, Captaris (unified messaging provider); Director,
President and Chief Executive Officer COMSAT Corporation; and Chairman,
Board of Governors of INTELSAT (international communications company)
|
|
208
|
|
ACE Limited
(insurance
company); and
Investment Company
Institute
|
|
|
|
|
|
|
|
|
|
|
|
|
|
David C. Arch 1945
Trustee
|
|
2010
|
|
Chairman and Chief Executive Officer of Blistex Inc., a consumer health
care products manufacturer.
|
|
226
|
|
Member of the
Heartland Alliance
Advisory Board, a
nonprofit
organization
serving human needs
based in Chicago.
Board member of the
Illinois
Manufacturers
Association. Member
of the Board of
Visitors, Institute
for the Humanities,
University of
Michigan
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
|
Mr. Flanagan is considered an interested person of the Trust because he is an
officer of the adviser to the Trust, and an officer and a director of Invesco Ltd., ultimate parent
of the adviser to the Trust.
|
|
2
|
|
Mr. Taylor is considered an interested person of the Trust because he is an officer
and a director of the adviser to, and a director of the principal underwriter of, the Trust.
|
|
3
|
|
Mr. Whalen is considered an interested person (within the meaning of Section
2(a)(19) of the 1940 Act) of certain Funds in the Fund Complex by reason of he and his firm
currently providing legal services as legal counsel to such Funds in the Fund Complex.
|
T-1
Trustees and Officers
(continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
|
|
|
|
|
|
|
|
|
|
|
Funds in
|
|
|
|
|
|
|
|
|
|
|
Fund Complex
|
|
|
|
|
Name, Year of Birth and
|
|
Trustee and/
|
|
Principal Occupation(s)
|
|
Overseen by
|
|
Other Directorship(s)
|
|
|
Position(s) Held with the Trust
|
|
or Officer Since
|
|
During Past 5 Years
|
|
Trustee
|
|
Held by Trustee
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Independent Trustees
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bob R. Baker 1936
Trustee
|
|
2010
|
|
Retired
Formerly: President and Chief Executive Officer, AMC Cancer Research Center; and Chairman and Chief Executive
Officer, First Columbia Financial Corporation
|
|
208
|
|
None
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Frank S. Bayley 1939
Trustee
|
|
2010
|
|
Retired
Formerly: Director, Badgley Funds, Inc. (registered investment company) (2 portfolios) and Partner, law firm of
Baker & McKenzie
|
|
208
|
|
None
|
|
|
|
|
|
|
|
|
|
|
|
|
|
James T. Bunch 1942
Trustee
|
|
2010
|
|
Founder, Green, Manning & Bunch Ltd. (investment banking firm)
Formerly: Executive Committee, United States Golf Association; and Director, Policy Studies, Inc. and Van Gilder
Insurance Corporation
|
|
208
|
|
Vice Chairman,
Board of Governors,
Western Golf
Association/Evans
Scholars Foundation
and Director, Denver
Film Society
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rodney Dammeyer 1940
Trustee
|
|
2010
|
|
President of CAC, LLC, a private company offering capital investment and management advisory services.
Formerly: Prior to January 2004, Director of TeleTech Holdings Inc.; Prior to 2002, Director of Arris Group, Inc.; Prior
to 2001, Managing Partner at Equity Group Corporate Investments. Prior to 1995, Vice Chairman of Anixter
International. Prior to 1985, experience includes Senior Vice President and Chief Financial Officer of Household
International, Inc, Executive Vice President and Chief Financial Officer of Northwest Industries, Inc. and Partner of
Arthur Andersen & Co.
|
|
226
|
|
Director of Quidel
Corporation and
Stericycle, Inc. Prior
to May 2008, Trustee
of The Scripps
Research Institute.
Prior to February
2008, Director of
Ventana Medical
Systems, Inc. Prior to
April 2007, Director
of GATX Corporation.
Prior to April 2004,
Director of
TheraSense, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Albert R. Dowden 1941
Trustee
|
|
2010
|
|
Director of a number of public and private business corporations, including the Boss Group, Ltd. (private investment
and management); Reich & Tang Funds (5 portfolios) (registered investment company); and Homeowners of
America Holding Corporation/ Homeowners of America Insurance Company (property casualty company)
Formerly: Director, Continental Energy Services, LLC (oil and gas pipeline service); Director, CompuDyne
Corporation (provider of product and services to the public security market) and Director, Annuity and Life Re
(Holdings), Ltd. (reinsurance company); Director, President and Chief Executive Officer, Volvo Group North America,
Inc.; Senior Vice President, AB Volvo; Director of various public and private corporations; Chairman, DHJ Media, Inc.;
Director Magellan Insurance Company; and Director, The Hertz Corporation, Genmar Corporation (boat
manufacturer), National Media Corporation; Advisory Board of Rotary Power International (designer, manufacturer,
and seller of rotary power engines); and Chairman, Cortland Trust, Inc. (registered investment company)
|
|
208
|
|
Board of Natures
Sunshine Products,
Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Jack M. Fields 1952
Trustee
|
|
2010
|
|
Chief Executive Officer, Twenty First Century Group, Inc. (government affairs company); and Owner and Chief
Executive Officer, Dos Angelos Ranch, L.P. (cattle, hunting, corporate entertainment), Discovery Global Education
Fund (non-profit) and Cross Timbers Quail Research Ranch (non-profit)
Formerly: Chief Executive Officer, Texana Timber LP (sustainable forestry company) and member of the U.S. House
of Representatives
|
|
208
|
|
Administaff
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carl Frischling 1937
Trustee
|
|
2010
|
|
Partner, law firm of Kramer Levin Naftalis and Frankel LLP
|
|
208
|
|
Director, Reich &
Tang Funds (16
portfolios)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prema Mathai-Davis 1950
Trustee
|
|
2010
|
|
Retired
Formerly: Chief Executive Officer, YWCA of the U.S.A.
|
|
208
|
|
None
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Larry Soll 1942
Trustee
|
|
2010
|
|
Retired
Formerly, Chairman, Chief Executive Officer and President, Synergen Corp. (a biotechnology company)
|
|
208
|
|
None
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hugo F. Sonnenschein 1940
Trustee
|
|
2010
|
|
President Emeritus and Honorary Trustee of the University of Chicago and the Adam Smith Distinguished Service
Professor in the Department of Economics at the University of Chicago. Prior to July 2000, President of the University
of Chicago.
|
|
226
|
|
Trustee of the
University of
Rochester and a
member of its
investment
committee. Member
of the National
Academy of Sciences,
the American
Philosophical Society
and a fellow of the
American Academy
of Arts and Sciences
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Raymond Stickel, Jr. 1944
Trustee
|
|
2010
|
|
Retired
Formerly: Director, Mainstay VP Series Funds, Inc. (25 portfolios) and Partner, Deloitte & Touche
|
|
208
|
|
None
|
|
|
|
|
|
|
|
|
|
|
|
|
T-2
Trustees and Officers
(continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
|
|
|
|
|
|
|
|
|
|
|
Funds in
|
|
|
|
|
|
|
|
|
|
|
Fund Complex
|
|
|
|
|
Name, Year of Birth and
|
|
Trustee and/
|
|
Principal Occupation(s)
|
|
Overseen by
|
|
Other Directorship(s)
|
|
|
Position(s) Held with the Trust
|
|
or Officer Since
|
|
During Past 5 Years
|
|
Trustee
|
|
Held by Trustee
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Officers
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Russell C. Burk 1958
Senior Vice President and Senior
Officer
|
|
2010
|
|
Senior Vice President and Senior Officer of Invesco Funds
|
|
N/A
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
John M. Zerr 1962
Senior Vice President, Chief Legal
Officer and Secretary
|
|
2010
|
|
Director, Senior Vice President, Secretary and General Counsel, Invesco Management Group, Inc. (formerly known as
Invesco Aim Management Group, Inc.), Van Kampen Investments Inc. and Van Kampen Exchange Corp., Senior Vice
President, Invesco Advisers, Inc. formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser);
Senior Vice President and Secretary, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.);
Director, Vice President and Secretary, Invesco Investment Services, Inc. (formerly known as Invesco Aim Investment
Services, Inc.) and IVZ Distributors, Inc. (formerly known as INVESCO Distributors, Inc.); Director and Vice
President, INVESCO Funds Group, Inc.; Senior Vice President, Chief Legal Officer and Secretary, The Invesco Funds;
Manager, Invesco PowerShares Capital Management LLC; Director, Secretary and General Counsel, Van Kampen
Asset Management; Director and Secretary, Van Kampen Advisors Inc.; Secretary and General Counsel, Van Kampen
Funds Inc.; and Director, Vice President, Secretary and General Counsel, Van Kampen Investor Services Inc.; and
Chief Legal Officer, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II,
PowerShares India Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Fund Trust
Formerly: Director, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.); Director, Senior
Vice President, General Counsel and Secretary, Invesco Advisers, Inc.; Director, Vice President and Secretary, Fund
Management Company; Director, Senior Vice President, Secretary, General Counsel and Vice President, Invesco Aim
Capital Management, Inc.; Chief Operating Officer and General Counsel, Liberty Ridge Capital, Inc. (an investment
adviser); Vice President and Secretary, PBHG Funds (an investment company) and PBHG Insurance Series Fund (an
investment company); Chief Operating Officer, General Counsel and Secretary, Old Mutual Investment Partners (a
broker-dealer); General Counsel and Secretary, Old Mutual Fund Services (an administrator) and Old Mutual
Shareholder Services (a shareholder servicing center); Executive Vice President, General Counsel and Secretary, Old
Mutual Capital, Inc. (an investment adviser); and Vice President and Secretary, Old Mutual Advisors Funds (an
investment company)
|
|
N/A
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lisa O. Brinkley 1959
Vice President
|
|
2010
|
|
Global Compliance Director, Invesco Ltd.; Chief Compliance Officer, Invesco Distributors, Inc. (formerly known as
Invesco Aim Distributors, Inc.), Invesco Investment Services, Inc.(formerly known as Invesco Aim Investment
Services, Inc.) and Van Kampen Investor Services Inc.; and Vice President, The Invesco Funds
Formerly: Senior Vice President, Invesco Management Group, Inc.; Senior Vice President and Chief Compliance
Officer, Invesco Advisers, Inc. and The Invesco Funds; Vice President and Chief Compliance Officer, Invesco Aim
Capital Management, Inc. and Invesco Distributors, Inc.; Vice President, Invesco Investment Services, Inc. and Fund
Management Company
|
|
N/A
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sheri Morris 1964
Vice President, Treasurer and
Principal Financial Officer
|
|
2010
|
|
Vice President, Treasurer and Principal Financial Officer, The Invesco Funds; and Vice President, Invesco Advisers,
Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser)
Formerly: Vice President, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private
Asset Management, Inc.; Assistant Vice President and Assistant Treasurer, The Invesco Funds and Assistant Vice
President, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management,
Inc.
|
|
N/A
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Karen Dunn Kelley 1960
Vice President
|
|
2010
|
|
Head of Invescos World Wide Fixed Income and Cash Management Group; Senior Vice President, Invesco Advisers,
Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser) and Van Kampen
Investments Inc.; Executive Vice President, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors,
Inc.); Senior Vice President, Invesco Management Group, Inc. (formerly known as Invesco Aim Management Group,
Inc.); and Director, Invesco Mortgage Capital Inc.; Vice President, The Invesco Funds (other than AIM Treasurers
Series Trust (Invesco Treasurers Series Trust) and Short-Term Investments Trust); President and Principal Executive
Officer, The Invesco Funds (AIM Treasurers Series Trust (Invesco Treasurers Series Trust) and Short-Term
Investments Trust only).
Formerly: Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.); Director of
Cash Management and Senior Vice President, Invesco Advisers, Inc. and Invesco Aim Capital Management, Inc.;
President and Principal Executive Officer, Tax-Free Investments Trust; Director and President, Fund Management
Company; Chief Cash Management Officer, Director of Cash Management, Senior Vice President, and Managing
Director, Invesco Aim Capital Management, Inc.; Director of Cash Management, Senior Vice President, and Vice
President, Invesco Advisers, Inc. and The Invesco Funds (AIM Treasurers Series Trust (Invesco Treasurers Series
Trust), Short-Term Investments Trust and Tax-Free Investments Trust only)
|
|
N/A
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lance A. Rejsek 1967
Anti-Money Laundering
Compliance Officer
|
|
2010
|
|
Anti-Money Laundering Compliance Officer, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.),
Inc.) (registered investment adviser); Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.),
Invesco Investment Services, Inc. (formerly known as Invesco Aim Investment Services, Inc.), The Invesco Funds,
PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Trust II, PowerShares India Exchange-
Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust, Van Kampen Asset Management,
Van Kampen Investor Services Inc., and Van Kampen Funds Inc.
Formerly: Anti-Money Laundering Compliance Officer, Fund Management Company, Invesco Advisers, Inc., Invesco
Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.
|
|
N/A
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
T-3
Trustees and Officers
(continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
|
|
|
|
|
|
|
|
|
|
|
Funds in
|
|
|
|
|
|
|
|
|
|
|
Fund Complex
|
|
|
|
|
Name, Year of Birth and
|
|
Trustee and/
|
|
Principal Occupation(s)
|
|
Overseen by
|
|
Other Directorship(s)
|
|
|
Position(s) Held with the Trust
|
|
or Officer Since
|
|
During Past 5 Years
|
|
Trustee
|
|
Held by Trustee
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Officers
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Todd L. Spillane 1958
Chief Compliance Officer
|
|
2010
|
|
Senior Vice President, Invesco Management Group, Inc. (formerly known as Invesco Aim Management Group, Inc.),
Van Kampen Investments Inc. and Van Kampen Exchange Corp.; Senior Vice President and Chief Compliance
Officer, Invesco Advisers, Inc. (registered investment adviser) (formerly known as Invesco Institutional (N.A.), Inc.);
Chief Compliance Officer, The Invesco Funds, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-
Traded Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded
Fund Trust, INVESCO Private Capital Investments, Inc. (holding company), and Invesco Private Capital, Inc.
(registered investment adviser); Vice President, Invesco Distributors, Inc. (formerly known as Invesco Aim
Distributors, Inc.), Invesco Investment Services, Inc. (formerly known as Invesco Aim Investment Services, Inc.) and
Van Kampen Investor Services Inc.
Formerly: Senior Vice President and Chief Compliance Officer, Invesco Advisers, Inc. and Invesco Aim Capital
Management, Inc.; Chief Compliance Officer, Invesco Global Asset Management (N.A.), Inc. and Invesco Senior
Secured Management, Inc. (registered investment adviser); Vice President, Invesco Aim Capital Management, Inc.
and Fund Management Company
|
|
N/A
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Office of the Fund
|
|
Investment Adviser
|
|
Auditors
|
|
Custodian
|
1555 Peachtree Street, N.E.
|
|
Invesco Advisers, Inc.
|
|
PricewaterhouseCoopers LLP
|
|
State Street Bank and Trust Company
|
Atlanta, GA 3030911
|
|
1555 Peachtree Street, N.E.
|
|
1201 Louisiana Street, Suite 2900
|
|
225 Franklin
|
|
|
Atlanta, GA 30309
|
|
Houston, TX 77002-5678
|
|
Boston, MA 02110-2801
|
|
|
|
|
|
|
|
Counsel to the Fund
Stradley Ronon Stevens & Young,
LLP
|
|
Counsel to the
Independent Trustees
|
|
Transfer Agent
Computershare Trust Company, N.A.
|
|
|
2600 One Commerce Square
|
|
Kramer, Levin, Naftalis & Frankel LLP
|
|
P.O. Box 43078
|
|
|
Philadelphia, PA 19103
|
|
1177 Avenue of the Americas
|
|
Providence, RI 02940-3078
|
|
|
|
|
New York, NY 10036-2714
|
|
|
|
|
T-4
Invesco privacy policy
You share personal and financial information with us that is necessary for your transactions
and your account records. We take very seriously the obligation to keep that information
confidential and private.
Invesco collects nonpublic personal information about you from account applications or other forms
you complete and from your transactions with us or our affiliates. We do not disclose information
about you or our former customers to service providers or other third parties except to the extent
necessary to service your account and in other limited circumstances as permitted by law. For
example, we use this information to facilitate the delivery of transaction confirmations, financial
reports, prospectuses and tax forms.
Even within Invesco, only people involved in the servicing of your accounts and compliance
monitoring have access to your information. To ensure the highest level of confidentiality and
security, Invesco maintains physical, electronic and procedural safeguards that meet or exceed
federal standards. Special measures, such as data encryption and authentication, apply to your
communications with us on our website. More detail is available to you at invesco.com/privacy.
Trust holdings and proxy voting information
The Trust 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 Trusts semiannual and
annual reports to shareholders. For the first and third quarters, the Trust files the lists with
the Securities and Exchange Commission (SEC) on Form N-Q. Shareholders can also look up the Trusts
Forms N-Q on the SEC website at sec.gov. Copies of the Trusts Forms N-Q may be reviewed and copied
at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of
the Public Reference Room, including information about duplicating fee charges, by calling 202 551
8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov.
The SEC file number for the Trust is 811-07560.
A description of the policies and procedures that the Trust uses to determine how to vote proxies
relating to portfolio securities is available without charge, upon request, from our Client
Services department at 800 341 2929 or at invesco.com/proxyguidelines. The information is also
available on the SEC website, sec.gov.
Information regarding how the Trust voted proxies related to its portfolio securities during the 12
months ended June 30, 2010, is available at invesco.com/proxysearch. In addition, this information
is available on the SEC website at sec.gov.
Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to
individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is
the U.S. distributor for Invesco Ltd.s retail mutual funds, exchange-traded funds and
institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.
|
|
|
|
|
|
|
MS-CE-QMS-AR-1
|
|
Invesco Distributors, Inc.
|
ITEM 2. CODE OF ETHICS.
|
|
|
As of the end of the period covered by this report, the Registrant had adopted a code of
ethics (the Code) that applies to the Registrants principal executive officer (PEO)
and principal financial officer (PFO). There were no amendments to the Code during
the period covered by the report. The Registrant did not grant any waivers, including
implicit waivers, from any provisions of the Code to the PEO or PFO during the period
covered by this report.
|
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
|
|
|
The Board of Trustees has determined that the Registrant has at least one audit committee
financial expert serving on its Audit Committee. The Audit Committee financial experts are
David C. Arch, James T. Bunch, Bruce L. Crockett, Rodney Dammeyer and Raymond Stickel, Jr.
Messrs. Arch, Bunch, Crockett, Dammeyer and Stickel are independent within the meaning of
that term as used in Form N-CSR.
|
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Fees Billed by PWC Related to the Registrant
PWC billed the Registrant aggregate fees for services rendered to the Registrant for the last
two fiscal years as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage of Fees
|
|
|
|
|
|
|
Percentage of Fees
|
|
|
|
|
|
|
|
Billed Applicable to
|
|
|
|
|
|
|
Billed Applicable to
|
|
|
|
|
|
|
|
Non-Audit Services
|
|
|
|
|
|
|
Non-Audit Services
|
|
|
|
Fees Billed for
|
|
|
Provided for fiscal
|
|
|
Fees Billed for
|
|
|
Provided for fiscal
|
|
|
|
Services Rendered to
|
|
|
year end 2/28/2011
|
|
|
Services Rendered to
|
|
|
year end 10/31/2010
|
|
|
|
the Registrant for
|
|
|
Pursuant to Waiver of
|
|
|
the Registrant for
|
|
|
Pursuant to Waiver of
|
|
|
|
fiscal year end
|
|
|
Pre-Approval
|
|
|
fiscal year end
|
|
|
Pre-Approval
|
|
|
|
2/28/2011
|
|
|
Requirement
(1)
|
|
|
10/31/2010
|
|
|
Requirement
(1)
|
|
Audit Fees
|
|
$
|
19,250
|
|
|
|
N/A
|
|
|
$
|
35,000
|
|
|
|
N/A
|
|
Audit-Related
Fees
(2)
|
|
$
|
4,000
|
|
|
|
0
|
%
|
|
$
|
0
|
|
|
|
0
|
%
|
Tax Fees
(3)
|
|
$
|
2,300
|
|
|
|
0
|
%
|
|
$
|
4,300
|
|
|
|
0
|
%
|
All Other Fees
|
|
$
|
0
|
|
|
|
0
|
%
|
|
$
|
0
|
|
|
|
0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Fees
|
|
$
|
25,550
|
|
|
|
0
|
%
|
|
$
|
39,300
|
|
|
|
0
|
%
|
PWC billed the Registrant aggregate non-audit fees of $6,300 for the fiscal year ended February 28, 2011, and $4,300 for the fiscal
year ended October 31, 2010, for non-audit services rendered to the Registrant.
|
|
|
(1)
|
|
With respect to the provision of non-audit services, the pre-approval requirement is waived
pursuant to a de minimis exception if (i) such services were not recognized as non-audit
services by the Registrant at the time of engagement, (ii) the aggregate amount of all such
services provided is no more than 5% of the aggregate audit and non-audit fees paid by the
Registrant to PWC during a fiscal year; and (iii) such services are promptly brought to the
attention of the Registrants Audit Committee and approved by the Registrants Audit Committee
prior to the completion of the audit.
|
|
(2)
|
|
Audit-Related fees for the fiscal year end February 28, 2011 includes fees billed for agreed
upon procedures related to auction rate preferred securities.
|
|
(3)
|
|
Tax fees for the fiscal year end February 28, 2011 includes fees billed for reviewing tax
returns. Tax fees for the fiscal year end October 31, 2010 includes fees billed for reviewing
tax returns.
|
Fees Billed by PWC Related to Invesco and Invesco Affiliates
PWC billed Invesco Advisers, Inc. (Invesco), the Registrants adviser, and any entity
controlling, controlled by or under common control with Invesco that provides ongoing services to
the Registrant (Invesco Affiliates) aggregate fees for pre-approved non-audit services rendered
to Invesco and Invesco Affiliates for the last two fiscal years as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fees Billed for Non-
|
|
|
|
|
|
|
Fees Billed for Non-
|
|
|
|
|
|
|
Audit Services
|
|
|
|
|
|
|
Audit Services
|
|
|
|
|
|
|
Rendered to Invesco
|
|
|
Percentage of Fees
|
|
|
Rendered to Invesco
|
|
|
Percentage of Fees
|
|
|
|
and Invesco Affiliates
|
|
|
Billed Applicable to
|
|
|
and Invesco Affiliates
|
|
|
Billed Applicable to
|
|
|
|
for fiscal year end
|
|
|
Non-Audit Services
|
|
|
for fiscal year end
|
|
|
Non-Audit Services
|
|
|
|
2/28/2011 That Were
|
|
|
Provided for fiscal
|
|
|
10/31/2010 That Were
|
|
|
Provided for fiscal year
|
|
|
|
Required
|
|
|
year end 2/28/2011
|
|
|
Required
|
|
|
end 10/31/2010
|
|
|
|
to be Pre-Approved
|
|
|
Pursuant to Waiver of
|
|
|
to be Pre-Approved
|
|
|
Pursuant to Waiver of
|
|
|
|
by the Registrants
|
|
|
Pre-Approval
|
|
|
by the Registrants
|
|
|
Pre-Approval
|
|
|
|
Audit Committee
|
|
|
Requirement
(1)
|
|
|
Audit Committee
|
|
|
Requirement
(1)
|
|
Audit-Related Fees
|
|
$
|
0
|
|
|
|
0
|
%
|
|
$
|
0
|
|
|
|
0
|
%
|
Tax Fees
|
|
$
|
0
|
|
|
|
0
|
%
|
|
$
|
0
|
|
|
|
0
|
%
|
All Other Fees
|
|
$
|
0
|
|
|
|
0
|
%
|
|
$
|
0
|
|
|
|
0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Fees
(2)
|
|
$
|
0
|
|
|
|
0
|
%
|
|
$
|
0
|
|
|
|
0
|
%
|
|
|
|
(1)
|
|
With respect to the provision of non-audit services, the pre-approval requirement is waived
pursuant to a de minimis exception if (i) such services were not recognized as non-audit
services by the Registrant at the time of engagement, (ii) the aggregate amount of all such
services provided is no more than 5% of the aggregate audit and non-audit fees paid by the
Registrant, Invesco and Invesco Affiliates to PWC during a fiscal year; and (iii) such
services are promptly brought to the attention of the Registrants Audit Committee and
approved by the Registrants Audit Committee prior to the completion of the audit.
|
|
(2)
|
|
Including the fees for services not required to be pre-approved by the registrants audit
committee, PWC billed Invesco and Invesco Affiliates aggregate non-audit fees of $0 for the
fiscal year ended February 28, 2011, and $0 for the fiscal year ended October 31, 2010, for
non-audit services rendered to Invesco and Invesco Affiliates.
|
|
|
|
The Audit Committee also has considered whether the provision of non-audit services that
were rendered to Invesco and Invesco Affiliates that were not required to be pre-approved
pursuant to SEC regulations, if any, is compatible with maintaining PWCs independence. To
the extent that such services were provided, the Audit Committee determined that the
provision of such services is compatible with PWC maintaining independence with respect to
the Registrant.
|
PRE-APPROVAL OF AUDIT AND NON-AUDIT SERVICES
POLICIES AND PROCEDURES
As adopted by the Audit Committees of
the Invesco Funds (the Funds)
Last Amended May 4, 2010
Statement of Principles
Under the Sarbanes-Oxley Act of 2002 and rules adopted by the Securities and Exchange
Commission (SEC) (Rules), the Audit Committees of the Funds (the Audit Committees) Board of
Trustees (the Board) are responsible for the appointment, compensation and oversight of the work
of independent accountants (an Auditor). As part of this responsibility and to assure that the
Auditors independence is not impaired, the Audit Committees pre-approve the audit and non-audit
services provided to the Funds by each Auditor, as well as all non-audit services provided by the
Auditor to the Funds investment adviser and to affiliates of the adviser that provide ongoing
services to the Funds (Service Affiliates) if the services directly impact the Funds operations
or financial reporting. The SEC Rules also specify the types of services that an Auditor may not
provide to its audit client. The following policies and procedures comply with the requirements
for pre-approval and provide a mechanism by which management of the Funds may request and secure
pre-approval of audit and non-audit services in an orderly manner with minimal disruption to normal
business operations.
Proposed services either may be pre-approved without consideration of specific case-by-case
services by the Audit Committees (general pre-approval) or require the specific pre-approval of
the Audit Committees (specific pre-approval). As set forth in these policies and procedures,
unless a type of service has received general pre-approval, it will require specific pre-approval
by the Audit Committees. Additionally, any fees exceeding 110% of estimated pre-approved fee
levels provided at the time the service was pre-approved will also require specific approval by the
Audit Committees before payment is made. The Audit Committees will also consider the impact of
additional fees on the Auditors independence when determining whether to approve any additional
fees for previously pre-approved services.
The Audit Committees will annually review and generally pre-approve the services that may be
provided by each Auditor without obtaining specific pre-approval from the Audit Committee generally
on an annual basis. The term of any general pre-approval runs from the date of such pre-approval
through September 30
th
of the following year, unless the Audit Committees consider a
different period and state otherwise. The Audit Committees will add to or subtract from the list
of general pre-approved services from time to time, based on subsequent determinations.
The purpose of these policies and procedures is to set forth the guidelines to assist the Audit
Committees in fulfilling their responsibilities.
Delegation
The Audit Committees may from time to time delegate pre-approval authority to one or more of
its members who are Independent Trustees. All decisions to pre-approve a service by a delegated
member shall be reported to the Audit Committees at the next quarterly meeting.
Audit Services
The annual audit services engagement terms will be subject to specific pre-approval of the
Audit Committees. Audit services include the annual financial statement audit and other procedures
such as tax provision work that is required to be performed by the independent auditor to be able
to form an opinion on the Funds financial statements. The Audit Committees will obtain, review
and consider sufficient information concerning the proposed Auditor to make a reasonable evaluation
of the Auditors qualifications and independence.
In addition to the annual Audit services engagement, the Audit Committees may grant either general
or specific pre-approval of other audit services, which are those services that only the
independent auditor reasonably can provide. Other Audit services may include services such as
issuing consents for the inclusion of audited financial statements with SEC registration
statements, periodic reports and other documents filed with the SEC or other documents issued in
connection with securities offerings.
Non-Audit Services
The Audit Committees may provide either general or specific pre-approval of any non-audit
services to the Funds and its Service Affiliates if the Audit Committees believe that the provision
of the service will not impair the independence of the Auditor, is consistent with the SECs Rules
on auditor independence, and otherwise conforms to the Audit Committees general principles and
policies as set forth herein.
Audit-Related Services
Audit-related services are assurance and related services that are reasonably related to the
performance of the audit or review of the Funds financial statements or that are traditionally
performed by the independent auditor. Audit-related services include, among others, accounting
consultations related to accounting, financial reporting or disclosure matters not classified as
Audit services; assistance with understanding and implementing new accounting and financial
reporting guidance from rulemaking authorities; and agreed-upon procedures related to mergers,
compliance with ratings agency requirements and interfund lending activities.
Tax Services
Tax services include, but are not limited to, the review and signing of the Funds federal tax
returns, the review of required distributions by the Funds and consultations regarding tax matters
such as the tax treatment of new investments or the impact of new regulations. The Audit
Committees will scrutinize carefully the retention of the Auditor in connection with a transaction
initially recommended by the Auditor, the major business purpose of which may be tax avoidance or
the tax treatment of which may not be supported in the Internal Revenue Code and related
regulations. The Audit Committees will consult with the Funds Treasurer (or his or her designee)
and may consult with outside counsel or advisors as necessary to ensure the consistency of Tax
services rendered by the Auditor with the foregoing policy.
No Auditor shall represent any Fund or any Service Affiliate before a tax court, district court or
federal court of claims.
Under rules adopted by the Public Company Accounting Oversight Board and approved by the SEC, in
connection with seeking Audit Committees pre-approval of permissible Tax services, the Auditor
shall:
|
1.
|
|
Describe in writing to the Audit Committees, which writing may be in the form of the
proposed engagement letter:
|
|
a.
|
|
The scope of the service, the fee structure for the engagement, and any
side letter or amendment to the engagement letter, or any other agreement between
the Auditor and the Fund, relating to the service; and
|
|
|
b.
|
|
Any compensation arrangement or other agreement, such as a referral
agreement, a referral fee or fee-sharing arrangement, between the Auditor and any
person (other than the Fund) with respect to the promoting, marketing, or
recommending of a transaction covered by the service;
|
|
2.
|
|
Discuss with the Audit Committees the potential effects of the services on the
independence of the Auditor; and
|
|
|
3.
|
|
Document the substance of its discussion with the Audit Committees.
|
All Other Auditor Services
The Audit Committees may pre-approve non-audit services classified as All other services that are
not categorically prohibited by the SEC, as listed in Exhibit 1 to this policy.
Pre-Approval Fee Levels or Established Amounts
Pre-approval of estimated fees or established amounts for services to be provided by the
Auditor under general or specific pre-approval policies will be set periodically by the Audit
Committees. Any proposed fees exceeding 110% of the maximum estimated pre-approved fees or
established amounts for pre-approved audit and non-audit services will be reported to the Audit
Committees at the quarterly Audit Committees meeting and will require specific approval by the
Audit Committees before payment is made. The Audit Committees will always factor
in the overall relationship of fees for audit and non-audit services in determining whether to
pre-approve any such services and in determining whether to approve any additional fees exceeding
110% of the maximum pre-approved fees or established amounts for previously pre-approved services.
Procedures
Generally on an annual basis, Invesco Advisers, Inc. (Invesco) will submit to the Audit
Committees for general pre-approval, a list of non-audit services that the Funds or Service
Affiliates of the Funds may request from the Auditor. The list will describe the non-audit
services in reasonable detail and will include an estimated range of fees and such other
information as the Audit Committee may request.
Each request for services to be provided by the Auditor under the general pre-approval of the Audit
Committees will be submitted to the Funds Treasurer (or his or her designee) and must include a
detailed description of the services to be rendered. The Treasurer or his or her designee will
ensure that such services are included within the list of services that have received the general
pre-approval of the Audit Committees. The Audit Committees will be informed at the next quarterly
scheduled Audit Committees meeting of any such services for which the Auditor rendered an invoice
and whether such services and fees had been pre-approved and if so, by what means.
Each request to provide services that require specific approval by the Audit Committees shall be
submitted to the Audit Committees jointly by the Funds Treasurer or his or her designee and the
Auditor, and must include a joint statement that, in their view, such request is consistent with
the policies and procedures and the SEC Rules.
Each request to provide tax services under either the general or specific pre-approval of the Audit
Committees will describe in writing: (i) the scope of the service, the fee structure for the
engagement, and any side letter or amendment to the engagement letter, or any other agreement
between the Auditor and the audit client, relating to the service; and (ii) any compensation
arrangement or other agreement between the Auditor and any person (other than the audit client)
with respect to the promoting, marketing, or recommending of a transaction covered by the service.
The Auditor will discuss with the Audit Committees the potential effects of the services on the
Auditors independence and will document the substance of the discussion.
Non-audit services pursuant to the
de minimis
exception provided by the SEC Rules will be promptly
brought to the attention of the Audit Committees for approval, including documentation that each of
the conditions for this exception, as set forth in the SEC Rules, has been satisfied.
On at least an annual basis, the Auditor will prepare a summary of all the services provided to any
entity in the investment company complex as defined in section 2-01(f)(14) of Regulation S-X in
sufficient detail as to the nature of the engagement and the fees associated with those services.
The Audit Committees have designated the Funds Treasurer to monitor the performance of all
services provided by the Auditor and to ensure such services are in compliance with these policies
and procedures. The Funds Treasurer will report to the Audit Committees on a periodic basis as to
the results of such monitoring. Both the Funds Treasurer and management of Invesco will
immediately report to the chairman of the Audit Committees any breach of these policies and
procedures that comes to the attention of the Funds Treasurer or senior management of Invesco.
Exhibit 1 to Pre-Approval of Audit and Non-Audit Services Policies and Procedures
Conditionally Prohibited Non-Audit Services (not prohibited if the Fund can reasonably
conclude that the results of the service would not be subject to audit procedures in connection
with the audit of the Funds financial statements)
|
|
|
Bookkeeping or other services related to the accounting records or financial
statements of the audit client
|
|
|
|
|
Financial information systems design and implementation
|
|
|
|
|
Appraisal or valuation services, fairness opinions, or contribution-in-kind reports
|
|
|
|
|
Actuarial services
|
|
|
|
|
Internal audit outsourcing services
|
Categorically Prohibited Non-Audit Services
|
|
|
Management functions
|
|
|
|
|
Human resources
|
|
|
|
|
Broker-dealer, investment adviser, or investment banking services
|
|
|
|
|
Legal services
|
|
|
|
|
Expert services unrelated to the audit
|
|
|
|
|
Any service or product provided for a contingent fee or a commission
|
|
|
|
|
Services related to marketing, planning, or opining in favor of the tax treatment of
confidential transactions or aggressive tax position transactions, a significant
purpose of which is tax avoidance
|
|
|
|
|
Tax services for persons in financial reporting oversight roles at the Fund
|
|
|
|
|
Any other service that the Public Company Oversight Board determines by regulation
is impermissible.
|
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
|
(a)
|
|
The registrant has a separately-designed standing audit committee established
in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934, as
amended. Members of the audit committee are: David C. Arch, Frank S. Bayley, James T.
Bunch, Bruce L. Crockett, Rodney Dammeyer, Larry Soll and Raymond Stickel, Jr.
|
|
|
(b)
|
|
Not applicable.
|
ITEM 6. SCHEDULE OF INVESTMENTS.
|
|
|
Investments in securities of unaffiliated issuers is included as part of the reports
to stockholders filed under Item 1 of this Form.
|
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT
INVESTMENT COMPANIES.
I.1. PROXY POLICIES AND PROCEDURES INSTITUTIONAL
|
|
|
Applicable to
|
|
Institutional Accounts
|
Risk Addressed by Policy
|
|
breach of fiduciary duty to client under
Investment Advisers Act of 1940 by placing
Invesco personal interests ahead of client
best economic interests in voting proxies
|
Relevant Law and Other Sources
|
|
Investment Advisers Act of 1940
|
Last Tested Date
|
|
|
Policy/Procedure Owner
|
|
Advisory Compliance, Proxy Committee
|
Policy Approver
|
|
Invesco Risk Management Committee
|
Approved/Adopted Date
|
|
January 1, 2010
|
The following policies and procedures apply to all institutional accounts, clients and
funds managed by Invesco Advisers, Inc. (Invesco). These policies and procedures do not apply to
any of the retail funds managed by Invesco. See Section I.2 for the proxy policies and procedures
applicable to Invescos retail funds.
A. POLICY STATEMENT
Invesco has responsibility for making investment decisions that are in the best interests of its
clients. As part of the investment management services it provides to clients, Invesco may be
authorized by clients to vote proxies appurtenant to the shares for which the clients are
beneficial owners.
Invesco believes that it has a duty to manage clients assets in the best economic interests of its
clients and that the ability to vote proxies is a client asset.
Invesco reserves the right to amend its proxy policies and procedures from time to time without
prior notice to its clients.
Voting of Proxies
Invesco will vote client proxies relating to equity securities in accordance with the procedures
set forth below unless a non-ERISA client retains in writing the right to vote, the named fiduciary
(e.g., the plan sponsor) of an ERISA client retains in writing the right to direct the plan trustee
or a third party to vote proxies, or Invesco determines that any benefit the client might gain from
voting a proxy
would be outweighed by the costs associated therewith. In addition, due to the
distinct nature of proxy voting for interests in fixed income assets and stable value wrap
agreements, the proxies for such fixed income assets and stable value wrap
agreements will be voted in accordance with the procedures set forth in the Proxy Voting for Fixed
Income Assets and Stable Value Wrap Agreements section below.
Best Economic Interests of Clients
In voting proxies, Invesco will take into consideration those factors that may affect the value of
the security and will vote proxies in a manner in which, in its opinion, is in the best economic
interests of clients. Invesco endeavors to resolve any conflicts of interest exclusively in the
best economic interests of clients.
B. OPERATING PROCEDURES AND RESPONSIBLE PARTIES
RiskMetrics Services
Invesco has contracted with RiskMetrics Group (RiskMetrics, formerly known as ISS), an
independent third party service provider, to vote Invescos clients proxies according to
RiskMetrics proxy voting recommendations determined by RiskMetrics pursuant to its then-current US
Proxy Voting Guidelines, a summary of which can be found at
http://www.riskmetrics.com
and which
are deemed to be incorporated herein. In addition, RiskMetrics will provide proxy analyses, vote
recommendations, vote execution and record-keeping services for clients for which Invesco has proxy
voting responsibility. On an annual basis, the Proxy Committee will review information obtained
from RiskMetrics to ascertain whether RiskMetrics (i) has the capacity and competency to adequately
analyze proxy issues, and (ii) can make such recommendations in an impartial manner and in the best
economic interests of Invescos clients. This may include a review of RiskMetrics Policies,
Procedures and Practices Regarding Potential Conflicts of Interest and obtaining information about
the work RiskMetrics does for corporate issuers and the payments RiskMetrics receives from such
issuers.
Custodians forward to RiskMetrics proxy materials for clients who rely on Invesco to vote proxies.
RiskMetrics is responsible for exercising the voting rights in accordance with the RiskMetrics
proxy voting guidelines. If Invesco receives proxy materials in connection with a clients account
where the client has, in writing, communicated to Invesco that the client, plan fiduciary or other
third party has reserved the right to vote proxies, Invesco will forward to the party appointed by
client any proxy materials it receives with respect to the account. In order to avoid voting
proxies in circumstances where Invesco, or any of its affiliates have or may have any conflict of
interest, real or perceived, Invesco has engaged RiskMetrics to provide the proxy analyses, vote
recommendations and voting of proxies.
In the event that (i) RiskMetrics recuses itself on a proxy voting matter and makes no
recommendation or (ii) Invesco decides to override the RiskMetrics vote recommendation, the Proxy
Committee will review the issue and direct RiskMetrics how to vote the proxies as described below.
Proxy Voting for Fixed Income Assets and Stable Value Wrap Agreements
Some of Invescos fixed income clients hold interests in preferred stock of companies and some of
Invescos stable value clients are parties to wrap agreements. From time to time, companies that
have issued preferred stock or that are parties to wrap agreements request that Invescos clients
vote proxies on particular matters. RiskMetrics does not currently provide proxy analysis or vote
recommendations with respect to such proxy votes. Therefore, when a particular matter arises in
this category, the investment team responsible for the particular mandate will review the matter
and make a recommendation to the Proxy Manager as to how to vote the associated proxy. The Proxy
Manager will complete the proxy ballots and send the ballots to the persons or entities identified
in the ballots.
Proxy Committee
The Proxy Committee shall have seven (7) members, which shall include representatives from
portfolio management, operations, and legal/compliance or other functional departments as deemed
appropriate and who are knowledgeable regarding the proxy process. A majority of the members of
the Proxy Committee shall constitute a quorum and the Proxy Committee shall act by a majority vote
of those members in attendance at a meeting called for the purpose of determining how to vote a
particular proxy. The Proxy Committee shall keep minutes of its meetings that shall be kept with
the proxy voting records of Invesco. The Proxy Committee will appoint a Proxy Manager to manage
the proxy voting process, which includes the voting of proxies and the maintenance of appropriate
records.
The Proxy Manager shall call for a meeting of the Proxy Committee (1) when override submissions are
made; and (2) in instances when RiskMetrics has recused itself or has not provided a vote
recommendation with respect to an equity security. At such meeting, the Proxy Committee shall
determine how proxies are to be voted in accordance with the factors set forth in the section
entitled Best Economic Interests of Clients, above.
The Proxy Committee also is responsible for monitoring adherence to these procedures and engaging
in the annual review described in the section entitled RiskMetrics Services, above.
Recusal by RiskMetrics or Failure of RiskMetrics to Make a Recommendation
When RiskMetrics does not make a recommendation on a proxy voting issue or recuses itself due to a
conflict of interest, the Proxy Committee will review the issue and determine whether Invesco has a
material conflict of interest as determined pursuant to the policies and procedures outlined in the
Conflicts of Interest section below. If Invesco determines it does not have a material conflict
of interest, Invesco will direct RiskMetrics how to vote the proxies. If Invesco determines it
does have a material conflict of interest, the Proxy Committee will follow the policies and
procedures set forth in such section.
Override of RiskMetrics Recommendation
There may be occasions where Invesco investment personnel, senior officers or a member of the Proxy
Committee seek to override a RiskMetrics recommendation if they believe that a RiskMetrics
recommendation is not in accordance with the best economic interests of clients. In the event that
an individual listed above in this section disagrees with a RiskMetrics recommendation on a
particular voting issue, the individual shall document in writing the reasons that he/she believes
that the RiskMetrics recommendation is not in accordance with clients best economic interests and
submit such written documentation to the Proxy Manager for consideration by the Proxy Committee
along with the certification attached as Appendix A hereto. Upon review of the documentation and
consultation with the individual and others as the Proxy Committee deems appropriate, the Proxy
Committee may make a determination to override the RiskMetrics voting recommendation if the
Committee determines that it is in the best economic interests of clients and the Committee has
addressed any conflict of interest.
Proxy Committee Meetings
When a Proxy Committee Meeting is called, whether because of a RiskMetrics recusal or request for
override of a RiskMetrics recommendation, the Proxy Committee shall request from the Chief
Compliance Officer as to whether any Invesco person has reported a conflict of interest.
The Proxy Committee shall review the report from the Chief Compliance Officer to determine whether
a real or perceived conflict of interest exists, and the minutes of the Proxy Committee shall:
|
(1)
|
|
describe any real or perceived conflict of interest,
|
|
|
(2)
|
|
determine whether such real or perceived conflict of interest is material,
|
|
|
(3)
|
|
discuss any procedure used to address such conflict of interest,
|
|
|
(4)
|
|
report any contacts from outside parties (other than routine communications
from proxy solicitors), and
|
|
|
(5)
|
|
include confirmation that the recommendation as to how the proxies are to be
voted is in the best economic interests of clients and was made without regard to any
conflict of interest.
|
Based on the above review and determinations, the Proxy Committee will direct RiskMetrics how to
vote the proxies as provided herein.
Certain Proxy Votes May Not Be Cast
In some cases, Invesco may determine that it is not in the best economic interests of clients to
vote proxies. For example, proxy voting in certain countries outside
the United States requires share blocking. Shareholders who wish to vote their proxies must
deposit their shares 7 to 21 days before the date of the meeting with a designated depositary.
During the blocked period, shares to be voted at the meeting cannot be sold until the meeting has
taken place and the shares have been returned to the Custodian/Sub-Custodian bank. In addition,
voting certain international securities may involve unusual costs to clients, some of which may be
related to requirements of having a representative in person attend the proxy meeting. In other
cases, it may not be possible to vote certain proxies despite good faith efforts to do so, for
instance when inadequate notice of the matter is provided. In the instance of loan securities,
voting of proxies typically requires termination of the loan, so it is not usually in the best
economic interests of clients to vote proxies on loaned securities. Invesco typically will not,
but reserves the right to, vote where share blocking restrictions, unusual costs or other barriers
to efficient voting apply. Invesco will not vote if it determines that the cost of voting exceeds
the expected benefit to the client. The Proxy Manager shall record the reason for any proxy not
being voted, which record shall be kept with the proxy voting records of Invesco.
CONFLICTS OF INTEREST
Procedures to Address Conflicts of Interest and Improper Influence
In order to avoid voting proxies in circumstances where Invesco or any of its affiliates have or
may have any conflict of interest, real or perceived, Invesco has contracted with RiskMetrics to
provide proxy analyses, vote recommendations and voting of proxies. Unless noted otherwise by
RiskMetrics, each vote recommendation provided by RiskMetrics to Invesco shall include a
representation from RiskMetrics that RiskMetrics has no conflict of interest with respect to the
vote. In instances where RiskMetrics has recused itself or makes no recommendation on a particular
matter, or if an override submission is requested, the Proxy Committee shall determine how to vote
the proxy and instruct the Proxy Manager accordingly, in which case the conflict of interest
provisions discussed below shall apply.
In effecting the policy of voting proxies in the best economic interests of clients, there may be
occasions where the voting of such proxies may present a real or perceived conflict of interest
between Invesco, as the investment manager, and Invescos clients. For each director, officer and
employee of Invesco (Invesco person), the interests of Invescos clients must come first, ahead
of the interest of Invesco and any Invesco person, including Invescos affiliates. Accordingly, no
Invesco person may put personal benefit, whether tangible or intangible, before the interests of
clients of Invesco or otherwise take advantage of the relationship with Invescos clients.
Personal benefit includes any intended benefit for oneself or any other individual, company,
group or organization of any kind whatsoever, except a benefit for a client of Invesco, as
appropriate. It is imperative that each Invesco person avoid any situation that might compromise,
or call into question, the exercise of fully independent judgment that is in the interests of
Invescos clients.
Occasions may arise where a person or organization involved in the proxy voting process may have a
conflict of interest. A conflict of interest may exist if Invesco has a business relationship with
(or is actively soliciting business from) either the company soliciting the proxy or a third party
that has a material interest in the outcome of a proxy vote or that is actively lobbying for a
particular outcome of a proxy vote. Additional examples of situations where a conflict may exist
include:
|
|
|
Business Relationships where Invesco manages money for a company or an
employee group, manages pension assets or is actively soliciting any such business, or
leases office space from a company;
|
|
|
|
|
Personal Relationships where an Invesco person has a personal
relationship with other proponents of proxy proposals, participants in proxy contests,
corporate directors, or candidates for directorships; and
|
|
|
|
|
Familial Relationships where an Invesco person has a known familial
relationship relating to a company (e.g. a spouse or other relative who serves as a
director of a public company or is employed by the company).
|
In the event that the Proxy Committee determines that Invesco (or an affiliate) has a material
conflict of interest, the Proxy Committee will not take into consideration the relationship giving
rise to the conflict of interest and shall, in its sole discretion, either (a) decide to vote the
proxies pursuant to RiskMetrics general proxy voting guidelines, (b) engage an independent third
party to provide a vote recommendation, or (c) contact Invescos client(s) for direction as to how
to vote the proxies.
In the event an Invesco person has a conflict of interest and has knowledge of such conflict of
interest, it is the responsibility of such Invesco person to disclose the conflict to the Chief
Compliance Officer. When a Proxy Committee meeting is called, the Chief Compliance Officer will
report to the Proxy Committee all real or potential conflicts of interest for the Proxy Committee
to review and determine whether such conflict is material. If the Proxy Committee determines that
such conflict is material and involves a person involved in the proxy voting process, the Proxy
Committee may require such person to recuse himself or herself from participating in the
discussions regarding the proxy vote item and from casting a vote regarding how Invesco should vote
such proxy. An Invesco person will not be considered to have a material conflict of interest if
the Invesco person did not know of the conflict of interest and did not attempt to influence the
outcome of a proxy vote.
In order to ensure compliance with these procedures, the Proxy Manager and each member of the Proxy
Committee shall certify annually as to their compliance with this policy. In addition, any Invesco
person who submits a RiskMetrics override recommendation to the Proxy Committee shall certify as to
their compliance with this policy concurrently with the submission of their override
recommendation. A form of such certification is attached as Appendix A.
In addition, members of the Proxy Committee must notify Invescos Chief Compliance Officer, with
impunity and without fear of retribution or retaliation, of any direct, indirect or perceived
improper influence exerted by any Invesco person or by an affiliated companys representatives with
regard to how Invesco should vote proxies. The Chief Compliance Officer will investigate the
allegations and will report his or her findings to the Invesco Risk Management Committee. In the
event that it is determined that improper influence was exerted, the Risk Management Committee will
determine the appropriate action to take, which actions may include, but are not limited to, (1)
notifying the affiliated companys Chief Executive Officer, its Management Committee or Board of
Directors, (2) taking remedial action, if necessary, to correct the result of any improper
influence where clients have been harmed, or (3) notifying the appropriate regulatory agencies of
the improper influence and cooperating fully with these regulatory agencies as required. In all
cases, the Proxy Committee shall not take into consideration the improper influence in determining
how to vote proxies and will vote proxies solely in the best economic interests of clients.
C. RECORDKEEPING
Records are maintained in accordance with Invescos Recordkeeping Policy.
Proxy Voting Records
The proxy voting statements and records will be maintained by the Proxy Manager on-site (or
accessible via an electronic storage site of RiskMetrics) for the first two (2) years. Copies of
the proxy voting statements and records will be maintained for an additional five (5) years by
Invesco (or will be accessible via an electronic storage site of RiskMetrics). Clients may obtain
information about how Invesco voted proxies on their behalf by contacting their client services
representative. Alternatively, clients may make a written request for proxy voting information to:
Proxy Manager, 1555 Peachtree Street, N.E., Atlanta, Georgia 30309.
APPENDIX A
ACKNOWLEDGEMENT AND CERTIFICATION
I acknowledge that I have read the Invesco Proxy Voting Policy (a copy of which
has been supplied to me, which I will retain for future reference) and agree to comply
in all respects with the terms and provisions thereof. I have disclosed or reported
all real or potential conflicts of interest to the Invesco Chief Compliance Officer
and will continue to do so as matters arise. I have complied with all provisions of
this Policy.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Print Name
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Date
|
|
Signature
|
|
|
|
|
|
|
|
I.1 Proxy Policy Appendix A
|
|
Acknowledgement and Certification
|
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
The following individuals are jointly and primarily responsible for the day-to-day management of
the Trust:
|
|
|
Thomas Byron, Portfolio Manager, who has been responsible for the Trust since 2009 and
has been associated with Invesco and/or its affiliates since 2010. From 1981 to 2010, Mr.
Byron was associated with Morgan Stanley Investment Advisors Inc. in an investment
management capacity.
|
|
|
|
|
Robert Stryker, Portfolio Manager, who has been responsible for the Trust since 2009 and
has been associated with Invesco and/or its affiliates since 2010. From 1994 to 2010, Mr.
Stryker was associated with Morgan Stanley Investment Advisors Inc. in an investment
management capacity.
|
|
|
|
|
Robert Wimmel, Portfolio Manager, who has been responsible for the Trust since 2009 and
has been associated with Invesco and/or its affiliates since 2010. From 1996 to 2010, Mr.
Wimmel was associated with Morgan Stanley Investment Advisors Inc. in an investment
management capacity.
|
Portfolio Manager Fund Holdings and Information on Other Managed Accounts
Invescos portfolio managers develop investment models which are used in connection with the
management of certain Invesco Funds as well as other mutual funds for which Invesco or an affiliate
acts as sub-adviser, other pooled investment vehicles that are not registered mutual funds, and
other accounts managed for organizations and individuals. The following chart reflects the
portfolio managers investments in the Funds that they manage. The chart also reflects information
regarding accounts other than the Funds for which each portfolio manager has day-to-day management
responsibilities. Accounts are grouped into three categories: (i) other registered investment
companies, (ii) other pooled investment vehicles and (iii) other accounts. To the extent that any
of these accounts pay advisory fees that are based on account performance (performance-based fees),
information on those accounts is specifically broken out. In addition, any assets denominated in
foreign currencies have been converted into U.S. Dollars using the exchange rates as of the
applicable date.
The following information is as of February 28, 2011:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Registered
|
|
Other Pooled
|
|
|
|
|
|
|
|
|
Investment Companies
|
|
Investment Vehicles
|
|
Other Accounts
|
|
|
Dollar Range
|
|
Managed (assets in
|
|
Managed (assets in
|
|
Managed
|
|
|
of
|
|
millions)
|
|
millions)
|
|
(assets in millions)
|
|
|
Investments
|
|
Number
|
|
|
|
|
|
Number
|
|
|
|
|
|
Number
|
|
|
Portfolio
|
|
in Each
|
|
of
|
|
|
|
|
|
of
|
|
|
|
|
|
of
|
|
|
Manager
|
|
Fund
1
|
|
Accounts
|
|
Assets
|
|
Accounts
|
|
Assets
|
|
Accounts
|
|
Assets
|
Invesco Quality Municipal Securities
|
Thomas Byron
|
|
None
|
|
|
28
|
|
|
$
|
10,533.1
|
|
|
None
|
|
None
|
|
None
|
|
None
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Robert Stryker
|
|
None
|
|
|
33
|
|
|
$
|
11,240.8
|
|
|
None
|
|
None
|
|
None
|
|
None
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Robert Wimmel
|
|
None
|
|
|
29
|
|
|
$
|
11,159.0
|
|
|
None
|
|
None
|
|
None
|
|
None
|
Potential Conflicts of Interest
Actual or apparent conflicts of interest may arise when a portfolio manager has day-to-day
management responsibilities with respect to more than one Fund or other account. More
specifically, portfolio managers who manage multiple Funds and/or other accounts may be presented
with one or more of the following potential conflicts:
|
|
|
1
|
|
This column reflects investments in a
Funds shares owned directly by a portfolio manager or beneficially owned by a
portfolio manager (as determined in accordance with Rule 16a-1(a) (2) under the
Securities Exchange Act of 1934, as amended). A portfolio manager is presumed
to be a beneficial owner of securities that are held by his or her immediate
family members sharing the same household.
|
Ø
|
|
The management of multiple Funds and/or other accounts may result in a portfolio manager
devoting unequal time and attention to the management of each Fund and/or other account. The
Adviser and each Sub-Adviser seek to manage such competing interests for the time and
attention of portfolio managers by having portfolio managers focus on a particular investment
discipline. Most other accounts managed by a
portfolio manager are managed using the same investment models that are used in connection with
the management of the Funds.
|
|
Ø
|
|
If a portfolio manager identifies a limited investment opportunity
which may be suitable for more than one Fund or other account, a
Fund may not be able to take full advantage of that opportunity
due to an allocation of filled purchase or sale orders across all
eligible Funds and other accounts. To deal with these situations,
the Adviser, each Sub-Adviser and the Funds have adopted
procedures for allocating portfolio transactions across multiple
accounts.
|
|
Ø
|
|
The Adviser and each Sub-Adviser determine which broker to use to
execute each order for securities transactions for the Funds,
consistent with its duty to seek best execution of the
transaction. However, for certain other accounts (such as mutual
funds for which Invesco or an affiliate acts as sub-adviser, other
pooled investment vehicles that are not registered mutual funds,
and other accounts managed for organizations and individuals), the
Adviser and each Sub-Adviser may be limited by the client with
respect to the selection of brokers or may be instructed to direct
trades through a particular broker. In these cases, trades for a
Fund in a particular security may be placed separately from,
rather than aggregated with, such other accounts. Having separate
transactions with respect to a security may temporarily affect the
market price of the security or the execution of the transaction,
or both, to the possible detriment of the Fund or other account(s)
involved.
|
|
Ø
|
|
Finally, the appearance of a conflict of interest may arise where
the Adviser or Sub-Adviser has an incentive, such as a
performance-based management fee, which relates to the management
of one Fund or account but not all Funds and accounts for which a
portfolio manager has day-to-day management responsibilities.
|
The Adviser, each Sub-Adviser, and the Funds have adopted certain compliance procedures which
are designed to address these types of conflicts. However, there is no guarantee that such
procedures will detect each and every situation in which a conflict arises.
Description of Compensation Structure
For the Adviser and each affiliated Sub-Adviser
The Adviser and each Sub-Adviser seek to maintain a compensation program that is competitively
positioned to attract and retain high-caliber investment professionals. Portfolio managers receive
a base salary, an incentive bonus opportunity and an equity compensation opportunity. Portfolio
manager compensation is reviewed and may be modified each year as appropriate to reflect changes in
the market, as well as to adjust the factors used to determine bonuses to promote competitive Fund
performance. The Adviser and each Sub-Adviser evaluate competitive market compensation by reviewing
compensation survey results conducted by an independent third party of investment industry
compensation. Each portfolio managers compensation consists of the following three elements:
Base Salary.
Each portfolio manager is paid a base salary. In setting the base salary, the
Adviser and each Sub-Advisers intention is to be competitive in light of the particular portfolio
managers experience and responsibilities.
Annual Bonus.
The portfolio managers are eligible, along with other employees of the Adviser
and each Sub-Adviser, to participate in a discretionary year-end bonus pool. The Compensation
Committee of Invesco Ltd. reviews and approves the amount of the bonus pool available for the
Adviser and each of the Sub-Advisers investment centers. The Compensation Committee considers
investment performance and financial results in its review. In addition, while having no direct
impact on individual bonuses, assets under management are considered when determining the starting
bonus funding levels. Each portfolio manager is eligible to receive an annual cash bonus which is
based on quantitative (i.e. investment performance) and non-quantitative factors (which may
include, but are not limited to, individual performance, risk management and teamwork).
Each portfolio managers compensation is linked to the pre-tax investment performance of the
Funds/accounts managed by the portfolio manager as described in Table 1 below.
Table 1
|
|
|
Sub-Adviser
|
|
Performance time period
2
|
Invesco
3,4,5
Invesco Australia
Invesco Deutschland
|
|
One-, Three- and Five-year performance
against Fund peer group.
|
|
|
|
Invesco Senior Secured
|
|
N/A
|
|
|
|
Invesco Trimark
3
|
|
One-year performance against Fund peer group.
Three- and Five-year performance against
entire universe of Canadian funds.
|
|
|
|
Invesco Hong Kong
3
Invesco Asset Management
|
|
One-, Three- and Five-year performance
against Fund peer group.
|
|
|
|
Invesco Japan
6
|
|
One-, Three- and Five-year performance
against the appropriate Micropol benchmark.
|
Invesco Senior Secureds bonus is based on annual measures of equity return and standard tests
of collateralization performance.
High investment performance (against applicable peer group and/or benchmarks) would deliver
compensation generally associated with top pay in the industry (determined by reference to the
third-party provided compensation survey information) and poor investment performance (versus
applicable peer group) would result in low bonus compared to the applicable peer group or no bonus
at all. These decisions are reviewed and approved collectively by senior leadership which has
responsibility for executing the compensation approach across the organization.
Equity-Based Compensation.
Portfolio managers may be granted an award that allows them to
select receipt of shares of certain Invesco Funds with a vesting period as well as common shares
and/or restricted shares of Invesco Ltd. stock from pools determined from time to time by the
Compensation Committee of Invesco Ltd.s Board of Directors. Awards of equity-based compensation
typically vest over time, so as to create incentives to retain key talent.
Portfolio managers also participate in benefit plans and programs available generally to all
employees.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND
AFFILIATED PURCHASERS.
Not applicable.
|
|
|
2
|
|
Rolling time periods based on calendar
year-end.
|
|
3
|
|
Portfolio Managers may be granted a
short-term award that vests on a pro-rata basis over a four year period and
final payments are based on the performance of eligible Funds selected by the
portfolio manager at the time the award is granted.
|
|
4
|
|
Portfolio Managers for Invesco Global
Real Estate Fund, Invesco Real Estate Fund, Invesco Select Real Estate Income
Fund and Invesco V.I. Global Real Estate Fund base their bonus on new operating
profits of the U.S. Real Estate Division of Invesco.
|
|
5
|
|
Portfolio Managers for Invesco Balanced
Fund, Invesco Basic Balanced Fund, Invesco Basic Value Fund, Invesco
Fundamental Value Fund, Invesco Large Cap Basic Value Fund, Invesco Large Cap
Relative Value Fund, Invesco Mid Cap Basic Value Fund, Invesco Mid-Cap Value
Fund, Invesco U.S. Mid Cap Value Fund, Invesco Value Fund, Invesco Value II
Fund, Invesco V.I. Basic Balanced Fund, Invesco V.I. Basic Value Fund, Invesco
V.I. Select Dimensions Balanced Fund, Invesco V.I. Income Builder Fund, Invesco
Van Kampen American Value Fund, Invesco Van Kampen Comstock Fund, Invesco Van
Kampen Equity and Income Fund, Invesco Van Kampen Growth and Income Fund,
Invesco Van Kampen Value Opportunities Fund, Invesco Van Kampen V.I. Comstock
Fund, Invesco Van Kampen V.I. Growth and Income Fund, Invesco Van Kampen V.I.
Equity and Income Fund, Invesco Van Kampen V.I. Mid Cap Value Fund and Invesco
Van Kampen V.I. Value Funds compensation is based on the one-, three- and
five-year performance against the Funds peer group. Furthermore, for the
portfolio manager(s) formerly managing the predecessor funds to the Funds in
this footnote 5, they also have a ten-year performance measure.
|
|
6
|
|
Portfolio Managers for Invesco Pacific
Growth Funds compensation is based on the one-, three- and five-year
performance against the appropriate Micropol benchmark. Furthermore, for the
portfolio manager(s) formerly managing the predecessor fund to Invesco Pacific
Growth Fund, they also have a ten-year performance measure.
|
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
None.
ITEM 11. CONTROLS AND PROCEDURES.
(a)
|
|
As of March 21, 2011, an evaluation was performed under the supervision and with the
participation of the officers of the Registrant, including the Principal Executive Officer
(PEO) and Principal Financial Officer (PFO), to assess the effectiveness of the
Registrants disclosure controls and procedures, as that term is defined in Rule
30a-3(c) under the Investment Company Act of 1940 (the Act), as amended. Based on
that evaluation, the Registrants officers, including the PEO and PFO, concluded
that, as of March 21, 2011, the Registrants disclosure controls and procedures were
reasonably designed to ensure: (1) that information required to be disclosed by the
Registrant on Form N-CSR is recorded, processed, summarized and reported within the
time periods specified by the rules and forms of the Securities and Exchange
Commission; and (2) that material information relating to the Registrant is made
known to the PEO and PFO as appropriate to allow timely decisions regarding required
disclosure.
|
|
(b)
|
|
There have been no changes in the Registrants internal control over financial reporting (as
defined in Rule 30a-3(d) under the Act) that occurred during the second fiscal quarter of the
period covered by the report that has materially affected, or is reasonably likely to
materially affect, the Registrants internal control over financial reporting.
|
ITEM 12. EXHIBITS.
12(a) (1)
|
|
Not applicable.
|
|
12(a) (2)
|
|
Certifications of principal executive officer and principal financial officer as
required by Rule 30a-2(a) under the Investment Company Act of 1940.
|
|
12(a) (3)
|
|
Not applicable.
|
|
12(b)
|
|
Certifications of principal executive officer and principal financial officer as required by
Rule 30a-2(b) under the Investment Company Act of 1940.
|
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act
of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
Registrant: Invesco Quality Municipal Securities
|
|
|
|
|
By:
|
|
/s/ Philip A. Taylor
Philip A. Taylor
|
|
|
|
|
Principal Executive Officer
|
|
|
Date: May 9, 2011
Pursuant to the requirements of the Securities and Exchange Act of 1934 and the Investment Company
Act of 1940, this report has been signed below by the following persons on behalf of the Registrant
and in the capacities and on the dates indicated.
|
|
|
|
|
By:
|
|
/s/ Philip A. Taylor
Philip A. Taylor
|
|
|
|
|
Principal Executive Officer
|
|
|
Date: May 9, 2011
|
|
|
|
|
By:
|
|
/s/ Sheri Morris
Sheri Morris
|
|
|
|
|
Principal Financial Officer
|
|
|
Date: May 9, 2011
EXHIBIT INDEX
|
|
|
12(a)(1)
|
|
Code of Ethics.
|
|
|
|
12(a)(2)
|
|
Certifications of principal executive officer and principal
Financial officer as required by Rule 30a-2(a) under the
Investment Company Act of 1940.
|
|
|
|
12(a)(3)
|
|
Not applicable.
|
|
|
|
12(b)
|
|
Certifications of principal executive officer and principal
financial officer as required by Rule 30a-2(b) under the
Investment Company Act of 1940.
|
Invesco Quality Municipal Securities (NYSE:IQM)
Historical Stock Chart
From Jul 2024 to Aug 2024
Invesco Quality Municipal Securities (NYSE:IQM)
Historical Stock Chart
From Aug 2023 to Aug 2024