VK-SCV-UPD-1-E_Communication 1/16/2015 8:22 AM Page 1 Mutual Fund Retail Share Classes Data as of Dec. 31, 2014 Invesco Small Cap Value Fund Quarterly Performance Commentary Limited Offering Nasdaq: A: VSCAX R. Canon Coleman II, Jonathan Edwards, Jonathan Mueller Portfolio Information Total Net Assets $3,359,455,164 Total Number of Holdings 63 % of Total Net Assets Alere Inc. Amtrust Financial Services Etrade Financial Corp. Belden Inc. LPL Financial Holdings Inc. Manpower Inc. ON Semiconductor Corp. Elizabeth Arden Inc. Abercrombie & Fitch Co. First Horizon National Corp. Top Contributors 4.13 4.03 3.94 3.39 3.23 3.17 3.15 3.15 2.74 2.68 % of Total Net Assets 1. AmTrust Financial Services Inc. 2. Elizabeth Arden Inc. 3. Belden Inc. 4. Gentex Corp. 5. Sealed Air Corp. Top Detractors Y: VSMIX Market overview Portfolio Management Top Holdings C: VSMCX 4.03 3.15 3.39 1.97 2.56 % of Total Net Assets 1. Goodrich Petroleum Corp. 2. Abercrombie & Fitch Co. 3. McDermott International Inc. 4. Aegion Corp. 5. Kennametal Inc. 0.38 2.74 0.43 0.24 1.47 - During the fourth quarter, US equity markets were volatile as investors worried about geopolitical issues, global economic growth and falling oil prices. However, the broad market, as represented by the S&P 500 Index, still managed to post a gain for the fourth quarter, as did small capitalization indexes. Within the Russell 2000 Value Index, sector performance was mixed, with utilities and health care performing the best and energy performing the worst during the quarter. Performance highlights - The fund’s Class A shares at net asset value (NAV) posted a gain, but underperformed the Russell 2000 Value Index. (Please see the investment results table on page 2 for fund and index performance.) Performance drivers were mainly stock specific. Select holdings in the financials, consumer staples and information technology (IT) sectors were among the largest contributors to fund performance. Select investments in energy, consumer discretionary and industrials were among the largest individual detractors. Contributors to performance - Property & casualty insurance company AmTrust Financial Services Inc. performed well in the fourth quarter after reporting strong financial results for the third quarter of 2014. - Shares of beauty products company Elizabeth Arden Inc. rose after the company reported results for its first quarter of fiscal 2015 that were better than consensus expectations. Management also reiterated fiscal year 2015 guidance. After a series of disappointing results in fiscal year 2014, the stock rallied due to signs of business stabilization. Detractors from performance - Oil and gas exploration company Goodrich Petroleum Corp. and oil & gas equipment and services company McDermott International Inc. declined during the fourth quarter along with the overall energy sector. - Shares of apparel company Abercrombie & Fitch Co. fell after management reported fiscal third-quarter profit and a full-year outlook that were below expectations. Positioning and outlook - We use an intrinsic value approach to select investments for the fund. We seek to create wealth by maintaining a long-term investment horizon and investing in companies that we believe are significantly undervalued on an absolute basis. - During the quarter, we sold several holdings based on valuation and other factors. We also initiated new positions in stocks where we see better upside potential based on our estimate of intrinsic values. - We believe the fund is well diversified and positioned to benefit from areas where we see the best valuation opportunities, based on our bottom-up stock selection approach. - Going forward, we will work hard to protect and grow the fund’s estimated intrinsic value. We thank you for your investment and for sharing our long-term perspective. VK-SCV-UPD-1-E_Communication 1/16/2015 8:22 AM Page 2 The Fund’s Positioning Versus the Russell 2000 Value Index Investment Results Average Annual Total Returns (%) as of Dec. 31, 2014 Period Inception 10 Years 5 Years 3 Years 1 Year Quarter Class A Shares Inception: 06/21/99 Class C Shares Inception: 06/21/99 Max Load 5.50% 11.24 10.52 16.30 21.40 1.25 0.51 Max CDSC 1.00% 10.81 10.33 16.75 22.80 5.51 5.33 NAV 11.64 11.15 17.62 23.71 7.14 6.36 (% underweight/overweight) Class Y Shares Inception: 08/12/05 NAV 10.81 10.33 16.75 22.80 6.37 6.20 NAV 11.39 17.91 24.05 7.43 6.42 Style-Specific Index Russell 2000 Value Index 6.89 14.26 18.29 4.22 9.40 Performance quoted is past performance and cannot guarantee comparable future results; current performance may be lower or higher. Visit invesco.com/performance for the most recent month-end performance. Performance figures reflect reinvested distributions and changes in net asset value (NAV). Investment return and principal value will vary, and you may have a gain or a loss when you sell shares. Index returns do not reflect any fees, expenses or sales charges. No contingent deferred sales charge (CDSC) will be imposed on redemptions of Class C shares following one year from the date shares were purchased. Performance shown at NAV does not include applicable CDSC or front-end sales charges, which would have reduced the performance. Class Y shares have no sales charge; therefore, performance is at NAV. Returns less than one year are cumulative; all others are annualized. Index source: FactSet Research Systems Inc. Asset Mix (%) Domestic Common Stk Int'l Common Stk Cash Other 93.34 3.95 2.23 0.48 Expense Ratios % Net % Total Class A Shares Class C Shares Class Y Shares 1.12 1.87 0.87 1.12 1.87 0.87 IT 6.84 Consumer Discretionary 5.73 Health Care 4.05 Industrials 3.05 Consumer Staples 2.95 Materials 0.26 Telecom Services -0.79 Energy -2.79 Utilities Financials -6.92 -15.01 -20 -10 0 10 Per the current prospectus Net and Total = The expense ratio includes acquired fund fees and expenses of 0.01% for the underlying funds. For more information you can visit us at www.invesco.com/us The fund has limited public sales of its shares to certain investors. For more information on who may continue to invest in the fund, please see the prospectus. Class Y shares are available only to certain investors. See the prospectus for more information. Asset allocation/diversification does not guarantee a profit or eliminate the risk of loss. The fund holdings are organized according to the Global Industry Classification Standard, which was developed by and is the exclusive property and service mark of MSCI Inc. and Standard & Poor’s. The Russell 2000® Value Index is an unmanaged index considered representative of small-cap value stocks. The Russell 2000 Value Index is a trademark/service mark of the Frank Rusell Co. Russell® is a trademark of the Frank Russell Co.An investment cannot be made directly in an index. The S&P 500® Index is an unmanaged index considered representative of the US stock market. An investment cannot be made directly in an index. VK-SCV-UPD-1-E_Communication 1/16/2015 8:22 AM Page 3 About risk Derivatives may be more volatile and less liquid than traditional investments and are subject to market, interest rate, credit, leverage, counterparty and management risks. An investment in a derivative could lose more than the cash amount invested. An investment in developing/emerging market countries carries greater risks compared to more developed economies. The risks of investing in securities of foreign issuers can include fluctuations in foreign currencies, political and economic instability, and foreign taxation issues. Stocks of small and mid-sized companies tend to be more vulnerable to adverse developments, may be more volatile, and may be illiquid or restricted as to resale. A value style of investing is subject to the risk that the valuations never improve or that the returns will trail other styles of investing or the overall stock markets. The fund is subject to certain other risks. Please see the current prospectus for more information regarding the risks associated with an investment in the fund. Explore Intentional Investing with Invesco® NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE Before investing, investors should carefully read the prospectus and/or summary prospectus and carefully consider the investment objectives, risks, charges and expenses. For this and more complete information about the fund(s), investors should ask their advisors for a prospectus/summary prospectus or visit invesco.com/fundprospectus. Note: Not all products available at all firms. Advisors, please contact your home office. Opinions expressed are those of the fund's portfolio management. Holdings are subject to change and are not buy/sell recommendations. All data provided by Invesco unless otherwise noted. For US use only. Invesco Small Cap Value Fund VK-SCV-UPD-1-E 01/15 invesco.com/us Invesco Distributors, Inc.