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Invesco UK 2 Investment Series Interim Report Including Long Form Financial Statements

Issued November 2019 For the period 1 April 2019 to 30 September 2019 02 Aggregate_Layout 1 22-Nov-19 10:02 AM Page 1

Contents

Invesco UK 2 Investment Series (the “Company”) 02 Report of the Authorised Corporate Director (the “Manager”)* 06 Notes applicable to the unaudited financial statements of all Funds

07 Invesco Income Fund (UK) 08 Strategy, review and outlook* 09 Comparative table 12 Portfolio statement* 16 Unaudited financial statements 18 Distributions

19 Invesco UK Enhanced Index Fund (UK) 20 Strategy, review and outlook* 21 Comparative table 24 Portfolio statement* 28 Unaudited financial statements 30 Distributions

31 Invesco UK Strategic Income Fund (UK) 32 Strategy, review and outlook* 33 Comparative table 36 Portfolio statement* 39 Unaudited financial statements 41 Distributions

42 General Information

* These collectively comprise the Authorised Corporate Director’s Report.

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Invesco UK 2 Investment Series (the “Company”) Report of the Authorised Corporate Director (the “Manager”)

The Company Remuneration Policy (Unaudited) The Invesco UK 2 Investment Series is an investment On 18 March 2016, Invesco Fund Managers company with variable capital, incorporated in England Limited (the “Manager”) adopted a remuneration and Wales on 11 April 2003. policy consistent with the principles outlined in the European Securities and Markets Authority (ESMA) The Company is a “UCITS Scheme” and an Guidelines, on sound remuneration policies under “Umbrella Company” (under the OEIC Regulations) the UCITS Directive (the “Remuneration Policy”). and therefore new Funds may be formed by the Manager, subject to regulatory approval. Any The policy was revised in 2018, to include changes to Funds or share classes will be included in specificities for some Invesco EU regulated an updated Prospectus. Management Companies. The Manager was not impacted by the changes. The Company is a Financial Conduct Authority (FCA) authorised scheme complying with the FCA’s Collective The purpose of the Remuneration Policy is to ensure Investment Schemes sourcebook. the remuneration of the staff of the Manager is consistent with and promotes sound and effective Terms used in this report shall have the same risk management, does not encourage risk-taking meaning as defined in the Prospectus. which is inconsistent with the risk profiles, rules or instruments of incorporation of the Manager and At 30 September 2019, the Company consisted of of the UCITS it manages and does not impair the three Funds: Manager’s compliance with its duty to act in the best Invesco Income Fund (UK) interests of the UCITS it manages. The Manager’s Invesco UK Enhanced Index Fund (UK) summary Remuneration Policy is available from Invesco UK Strategic Income Fund (UK) the corporate policies section of our website (www.invesco.co.uk). Paper copies of the full Accounting Periods Remuneration Policy can be obtained for free from Annual accounting date 31 March the registered office of the Manager, Invesco Fund Interim accounting date 30 September Managers Limited, Perpetual Park, Perpetual Park Distribution payable on 31 May Drive, Henley-on-Thames, Oxfordshire, RG9 1HH, UK Interim distribution payable on 30 November upon request.

Should expenses and taxation exceed revenue in a The Remuneration Policy is reviewed annually distribution period for a share class, no distribution by the Compliance, Human Resources and Risk will be payable for that class. Management functions, who recommend any adjustments to ensure continued alignment of the Securities Financing Transactions Regulation policy with sound risk management. The board of This Regulation requires the Manager to provide directors of the Manager are responsible for the investors with information on the use of securities oversight of remuneration and for ensuring adherence financing transactions (SFTs) and total return swaps to this policy through the Human Resources function. (TRS) by the Company in all interim and annual reports for the Company. The Internal Audit function conducts regular testing of administration of the Remuneration Policy to During the period from 1 April 2019 to 30 assess its ongoing compliance with the Invesco September 2019, none of the Funds entered into Group’s remuneration policies and procedures. any SFTs and/or TRS. Should this change in the future, the interim and annual reports for the The Manager does not employ any direct staff. The Company will disclose all required information on the aggregate total remuneration of Invesco staff involved use of SFTs and TRS by the Company. in UCITS related activities of the Manager in respect of performance year (1 January 2018 to 31 December Please refer to the Prospectus for further details on 2018) is £76.21m of which £44.70m is fixed SFTs and TRS. remuneration and £31.51m is variable remuneration. The number of beneficiaries is 379. Fund Events On the 7 August 2019 there was an update to the The Manager has identified individuals considered Prospectus for the various ICVC funds. As part of this to have a material impact on the risk profile of the update, various changes were implemented regarding Manager or the UCITS it manages (“Identified Staff”), investment objectives, investment policies, investment who include board members of the Manager, senior strategies and benchmark disclosures, all for management, heads of control functions, other risk clarification purposes only. There have been no takers and any employees receiving total remuneration changes to the way the Funds are managed. The that takes them into the same remuneration bracket updated prospectus is available at www.invesco.co.uk. as senior management and risk takers. Identified Staff of the Manager are employed by Invesco.

The aggregate total remuneration paid to the Identified Staff of the Manager for UCITS related activities for the performance year (1 January 2018 to 31 December 2018) is £18.62m of which £4.16m is paid to Senior Management and £14.46m is paid to other Identified Staff.

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Invesco UK 2 Investment Series (the “Company”) Report of the Authorised Corporate Director (the “Manager”)

Share Classes Available Brexit The UK has voted to leave the EU, an event Invesco Income Fund (UK) commonly referred to as Brexit. The exit date Accumulation shares may be shortened or extended upon agreement Accumulation shares (No Trail) between the UK and EU27. At the date of this Z Accumulation shares report, discussions remain ongoing between the Y Accumulation shares UK and EU27 as to the precise nature of the future Income shares relationship. It is not certain at this stage whether Income shares (No Trail) a withdrawal agreement will be finalised or if the Z Income shares UK will leave the EU under a no-deal scenario. Y Income shares The Authorised Corporate Director does not believe that Brexit under any of these scenarios will present Invesco UK Enhanced Index Fund (UK) significant issues that cannot be mitigated given that Accumulation shares (No Trail) no Fund is passported into Europe, Shareholders Z Accumulation shares are predominantly UK-based and core counterparties Y Accumulation shares of and service providers to the Company have Income shares (No Trail) contingency arrangements available as necessary Z Income shares to ensure that activities can continue with minimal Y Income shares disruption. In addition, on 30 January 2019, EU27 national regulators and the UK’s Financial Conduct Invesco UK Strategic Income Fund (UK) Authority agreed Memoranda of Understanding in Accumulation shares the event of a no-deal Brexit scenario on various Accumulation shares (No Trail) matters related to the conduct of financial services Z Accumulation shares and trading activities. Y Accumulation shares Income shares The Company’s Manager, Invesco Fund Managers Income shares (No Trail) Limited “IFML”, is part of a global group and has Z Income shares been committed for many years to meeting clients’ Y Income shares needs across Europe in both EU and non-EU countries. The change in the UK’s status from an The prices of shares will appear on our website EU to a non-EU country will not change the group’s (www.invesco.co.uk). This is the primary method focus or commitment to serve its clients across of price publication. The prices of shares may also Europe. IFML is monitoring developments closely, be obtained by calling 0800 085 8677 during the through a Brexit Steering Committee, and will take Manager’s normal business hours. advantage of the Memoranda of Understanding to ensure that the impact on clients and the Company is minimal.

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Invesco UK 2 Investment Series (the “Company”) Report of the Authorised Corporate Director (the “Manager”)

Risk Profile Holdings in other Funds of the Company Shareholders should be aware of the risks inherent in As at 30 September 2019, no Funds held shares in investing in securities and other financial instruments. any other Fund of the Company . Financial markets can be vulnerable to unpredictable price movements and are affected by a number of Liability factors, both political and economic. The Company is structured by having different Funds. The assets and liabilities of each Fund are The value of investments and any income will segregated in accordance with the law of England fluctuate (this may partly be the result of exchange and Wales. As a consequence the assets of a Fund rate fluctuations) and investors may not get back the will not be available to meet the liabilities of another full amount invested. Over time, inflation may erode Fund within the Company. the value of investments. The Shareholders are not liable for the debts of As one of the key objectives of the Invesco Income the Company. Fund (UK) and Invesco UK Strategic Income Fund (UK) is to provide income, the ongoing charge is taken from ISA Eligibility capital rather than income. This can erode capital and All the Company’s Funds qualify for stocks and reduce the potential for capital growth. shares ISA investment.

The Invesco Income Fund (UK) and the Invesco UK None of the Funds qualify for cash ISA investment. Strategic Income Fund (UK) may invest in private and unlisted equities which may involve additional risks Certification of the Interim Report by the Manager such as lack of liquidity and concentrated ownership. In accordance with the requirements of the Open- These investments may result in greater fluctuations Ended Investment Companies Regulations 2001, we of the value of the Funds. The Manager, however, will hereby certify these financial statements on behalf ensure that any investments in private and unlisted of the Directors of Invesco Fund Managers Limited. equities do not materially alter the overall risk profile of the Funds. Director – Hayley Norford The Invesco Income Fund (UK) and the Invesco UK Strategic Income Fund (UK) invests in smaller companies which may result in a higher level of Director – Douglas Sharp risk than a fund that invests in larger companies. Securities of smaller companies may be subject to abrupt price movements and may be less liquid, 21 November 2019 which may mean that they are not easy to buy or sell.

The Funds may use derivatives (complex instruments) in an attempt to reduce the overall risk of their investments, reduce the costs of investing and/or generate additional capital or income, although this may not be achieved. The use of such complex instruments may result in greater fluctuations of the value of the Funds. The Manager, however, will ensure that the use of derivatives within the Funds does not materially alter the overall risk profile of the Funds.

All risks are contained within the Prospectus.

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Invesco UK 2 Investment Series (the “Company”) Report of the Authorised Corporate Director (the “Manager”)

Risk and Reward Profiles A share class in risk category 1 indicates its price for the period 1 April 2019 to 30 September 2019 has experienced very low rises and falls historically.

Invesco Income Fund (UK) A share class in risk category 2 indicates its price Lower Risk Higher Risk has experienced minor rises and falls historically. Typically lower rewards Typically higher rewards A share class in risk category 3 indicates its price has 1234 567 experienced very moderate rises and falls historically.

A share class in risk category 4 indicates its price Invesco UK Enhanced Index Fund (UK) has experienced moderate rises and falls historically. Lower Risk Higher Risk A share class in risk category 5 indicates its price Typically lower rewards Typically higher rewards has experienced significant rises and falls historically. 1 23 45 67 A share class in risk category 6 indicates its price has experienced very significant rises and falls historically. Invesco UK Strategic Income Fund (UK) A share class in risk category 7 indicates its price Lower Risk Higher Risk has experienced major rises and falls historically. Typically lower rewards Typically higher rewards For more information on our Funds’ risk and reward 12345 67 profiles, please refer to the most up to date relevant Fund and share class specific Key Investor Information The risk categories shown are not a measure of Documents (KIIDs), which are available at capital losses or gains, but of how significant the www.invesco.co.uk or by contacting us. rises and falls in the share class prices have been historically. For example a share class whose price has experienced significant rises and falls will be in a higher risk category, whereas a share class whose price has experienced less significant rises and falls will be in a lower risk category. As the Share Class risk category has been calculated using historical data, it may not be a reliable indication of the Share Class future risk profile. Please note that the Share Class risk category may change in the future and is not guaranteed. The lowest risk category does not mean a risk free investment.

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Invesco UK 2 Investment Series (the “Company”) Notes applicable to the unaudited financial statements of all Funds

1 Accounting Policies The financial statements have been prepared on a going concern basis, under the historical cost convention as modified by the revaluation of certain financial assets and liabilities held at fair value through profit and loss. The financial statements have also been prepared in accordance with the United Kingdom Generally Accepted Accounting Practice (UK GAAP), as defined within the UK Financial Reporting Standard (FRS 102) and the Statement of Recommended Practice ‘Financial Statements of UK Authorised Funds’ (the “SORP”), issued by the Investment Management Association (now known as the Investment Association) in May 2014.

All other accounting policies used to prepare the interim financial statements are as per the audited financial statements for the year ended 31 March 2019.

2 Shareholders’ Funds The Manager’s entry charge and Fund Management Fee (FMF) are as follows:

Fund Entry Management Charge Fee % % Invesco Income Fund (UK) - Trail classes 5.0 1.66 - No Trail classes 0.0 1.16 - Z classes 0.0 0.91 - Y classes 0.0 0.86 Invesco UK Enhanced Index Fund (UK) - No Trail classes 0.0 0.25 - Z classes 0.0 0.24 - Y classes 0.0 0.23 Invesco UK Strategic Income Fund (UK) - Trail classes 5.0 1.67 - No Trail classes 0.0 1.17 - Z classes 0.0 0.92 - Y classes 0.0 0.87

References in this report to Trail classes mean the Accumulation Shares and Income Shares.

The net assets attributable to each share class, the net assets value per share and the number of shares in issue of each share class are shown in the comparative tables of each Fund. These can be found on:

Invesco Income Fund (UK) page 09 Invesco UK Enhanced Index Fund (UK) page 21 Invesco UK Strategic Income Fund (UK) page 33

Each share class has the same rights on a winding up of the Company.

3 Investment Objective and Policy The investment objective and policy of each Fund can be found on:

Invesco Income Fund (UK) page 07 Invesco UK Enhanced Index Fund (UK) page 19 Invesco UK Strategic Income Fund (UK) page 31

The Funds may also hold cash and near cash assets only to the extent that this may reasonably be regarded as necessary for the pursuit of the Fund’s investment objective, to fund redemptions of shares in that Fund, for the efficient management of the Fund in accordance with its investment objective or for other purposes which may reasonably be regarded as ancillary to the investment objectives of the Fund. They may also borrow, provided such borrowing is on a temporary basis and does not exceed the limits laid down in the regulations.

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Invesco Income Fund (UK) Investment report for the period

The Investment Objective and Policy of the Invesco Income Fund (UK) The Fund aims to achieve a reasonable level of income together with capital growth over the long term (5 years plus).The Fund invests at least 80% of its assets in shares or other equity related securities of companies incorporated, domiciled or carrying out the main part of their economic activity in the UK. In pursuing the Fund’s investment objective, the fund manager may consider it appropriate to also invest in other transferable securities (including private and unlisted equities and non UK companies), money market instruments, collective investment schemes (including funds managed by the Invesco group), deposits and cash. The Fund may use derivatives for efficient portfolio management purposes only, to reduce risk, reduce costs and/or generate additional capital or income.

Performance Percentage growth to 30 September 2019 Since Since Since Since Since 31.3.19 30.9.18 30.9.16 30.9.14 30.9.09 % % % % % Invesco Income Fund (UK) (Z Accumulation shares) 1 -2.11 -7.32 -2.14 10.91 103.33 IA UK All Companies Sector NR 2 4.92 0.03 20.29 36.99 121.91 Fund Ranking 235/244 222/243 223/229 210/217 134/173

Standardised rolling 12 month performance Percentage growth 30.9.14 30.9.15 30.9.16 30.9.17 30.9.18 30.9.15 30.9.16 30.9.17 30.9.18 30.9.19 % % % % % Invesco Income Fund (UK) (Z Accumulation shares) 1 7.4 5.6 5.8 -0.2 -7.3 IA UK All Companies Sector NR 2 1.7 12.0 13.8 5.6 0.0

This standardised past performance information is updated on a quarterly basis. Should you require up to date past performance information, this is available on our website www.invesco.co.uk or by contacting us.

Fund and sector average performance data source: Lipper, in Sterling, with income reinvested and net of the ongoing charge and portfolio transaction costs.

The value of investments and any income from them will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested.

Past performance is not a guide to future returns. Current tax levels and reliefs may change. Depending on individual circumstances, this may affect investment returns.

1 Effective 18 April 2016, the primary share class changed from Income share class to Z Accumulation share class. Performance figures are based on the Z Accumulation share class. As this was launched on 12 November 2012, for the periods prior to this launch date, performance figures are based on the Income share class, without any adjustment for fees. 2 This is a Comparator Benchmark. Given its geographic focus the Fund’s performance can be compared against the Benchmark. However, the Fund is actively managed and is not constrained by any benchmark.

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Invesco Income Fund (UK) Investment report for the period

Strategy, review and outlook period. Elsewhere BCA Marketplace was subject to a The Fund fell in value by 2.1% during the six months successful private equity bid, whilst PureTech Health, to the end of September 2019, underperforming Next and Capita also provided notable positive the IA UK All Companies Sector NR which rose on contributions to returns. average by 4.9%. This placed the Fund in the fourth quartile. The performance of the UK stock market is likely to be determined by the same macroeconomic and political Fund and sector average performance data source: forces which have dominated sentiment for the past Lipper, in Sterling, with income reinvested and net of few years. We have seen extreme polarisation of the ongoing charge and portfolio transaction costs. company valuations and the fund manager believes Performance figures are based on the Z Accumulation the most glaring opportunities lie within domestic UK share class. stocks. As such the portfolio is positioned to take advantage of this perceived mispricing. Past performance is not a guide to future returns. The level of pessimism which is discounted in the valuations of many holdings is anticipated to The UK equity market provided a positive return over materially improve when the political fog around our the period. However, this headline return masks periods EU exit clears. The portfolio continues to seek to of underlying volatility. Global markets were driven by invest in companies that have the potential to achieve persistent concerns of a slowdown in economic growth both capital growth and sustainable growth in income and the fluctuation of US-Sino trade tensions. over time. In investing across the market-cap Meanwhile internationally orientated sectors within the spectrum, the fund manager seeks to diversify the FTSE 100 continued to lead market performance. risk profile of the fund and secure diverse sources of Against this backdrop commodity prices proved volatile. income for the fund. He continues to evaluate the holdings in the portfolio and to seek the best Political uncertainty continued and sterling served as opportunities to create a diversified, sustainable flow the bellwether for the perceived likelihood of a “no- of dividend income that can grow over time. deal” exit. The value of sterling versus international currencies remained weak The Fund’s exposure to unquoted investment increased by 0.89% over the period and accounted Economic data released during the period, showed a for 5.84% of the portfolio as at 30 September 2019. slowdown in economic growth during the first half of We believe that whilst less liquid than other parts of 2019, a result of weaker business investment and the portfolio these stocks provide an opportunity for slowing global economic growth. Yet employment contributing to the capital performance objectives of data remains robust. the Fund.

Having been a strong contributor to Fund performance Mark Barnett, Fund Manager over many years, Burford Capital provided the Where Mark Barnett has expressed opinions, they are portfolio’s largest negative return over the period. In based on current market conditions, they may differ August 2019, the litigation financer was the subject of from those of other investment professionals and are a highly critical report from a US firm that specialises subject to change without notice. in publishing research for short -sellers. This caused a very material fall in the company’s share price. Burford Capital robustly defended itself against the The Fund’s ten largest investments are % accusations and later announced a series of corporate BP 5.64 governance enhancements. British American Tobacco 4.91 Investor sentiment towards the tobacco sector was Next 3.25 impacted by revived fears around regulation, whilst Derwent London 2.79 the release of underwhelming sales data for Imperial Tesco 2.78 Brands’ next generation technology reignited Royal Dutch Shell 2.67 concerns around the outlook for future revenues. Despite these persistent concerns, the manager Legal & General 2.67 remains confident in the outlook for the sector, Oxford Nanopore Technologies 2.47 particularly given his view that the headwinds PureTech Health 2.33 outlined are reflected in depressed valuations. Capita 2.22 It should also be noted that a small number of holdings saw persistently weak share prices in the absence of any meaningful company news. This cohort comprised a number of stocks in which there was a cross holding with a forced seller, which further compounded the already depressed market sentiment. Whilst this short-term share price disruption was not isolated to this portfolio it has proven extremely frustrating. We maintain the view that the long-term outlook and inherent value of those companies impacted is unchanged. Despite the performance challenges faced over the period there were a number of areas of the portfolio that performed strongly. AJ Bell continued to perform well and released strong trading updates during the

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Invesco Income Fund (UK) Investment report for the period

Comparative table

Total net assets of Fund 30.9.19 31.3.19 31.3.18 31.3.17 £’000 £’000 £’000 £’000 Total net assets 2,737,810 3,218,182 4,312,067 5,597,429

Net asset value 30.9.19 31.3.19 31.3.18 31.3.17 Accumulation shares Assets attributable (£'000) 1,238,779 1,393,719 1,891,056 2,531,926 Shares in issue 40,108,088 43,842,078 60,207,580 74,792,958 Net asset value (pence per share) 3,088.60 3,178.95 3,140.89 3,385.25 Accumulation shares (No Trail) Assets attributable (£'000) 69,324 95,562 140,300 145,266 Shares in issue 40,060,433 53,786,968 80,324,928 77,552,930 Net asset value (pence per share) 173.05 177.67 174.67 187.31 Z Accumulation shares Assets attributable (£'000) 255,740 289,207 361,939 452,840 Shares in issue 83,440,435 92,023,288 117,440,679 137,356,587 Net asset value (pence per share) 306.49 314.28 308.19 329.68 Y Accumulation shares Assets attributable (£'000) 379,529 473,478 595,525 771,327 Shares in issue 163,155,182 198,551,883 254,791,348 308,646,464 Net asset value (pence per share) 232.62 238.47 233.73 249.91 Income shares Assets attributable (£'000) 444,156 509,857 639,664 791,554 Shares in issue 29,672,038 32,423,581 39,743,276 44,118,360 Net asset value (pence per share) 1,496.89 1,572.49 1,609.49 1,794.16 Income shares (No Trail) Assets attributable (£'000) 13,170 18,969 85,767 96,688 Shares in issue 11,928,863 16,396,607 72,791,492 73,983,791 Net asset value (pence per share) 110.40 115.69 117.83 130.69 Z Income shares Assets attributable (£'000) 135,620 181,063 277,395 401,530 Shares in issue 55,890,639 71,298,264 107,520,835 140,671,169 Net asset value (pence per share) 242.65 253.95 257.99 285.44 Y Income shares Assets attributable (£'000) 201,492 256,327 320,421 406,298 Shares in issue 105,754,019 128,580,397 158,295,085 181,512,182 Net asset value (pence per share) 190.53 199.35 202.42 223.84

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Invesco Income Fund (UK) Investment report for the period

Price and revenue record by share class Highest Lowest Net share share revenue price price per share Accounting period p p p Accumulation shares Year ended 31 March 2017 3,394.00 2,931.37 106.1611 Year ended 31 March 2018 3,562.99 3,107.99 109.9225 Year ended 31 March 2019 3,429.56 2,997.13 114.9601 Six months ended 30 September 2019 3,269.90 2,936.66 62.3831 Accumulation shares (No Trail) Year ended 31 March 2017 187.77 161.59 5.8653 Year ended 31 March 2018 197.32 172.82 6.1034 Year ended 31 March 2019 191.04 167.29 6.4121 Six months ended 30 September 2019 182.79 164.43 3.4947 Z Accumulation shares Year ended 31 March 2017 330.46 283.86 10.3099 Year ended 31 March 2018 347.44 304.91 10.7543 Year ended 31 March 2019 337.36 295.73 11.3413 Six months ended 30 September 2019 323.38 291.14 6.1895 Y Accumulation shares Year ended 31 March 2017 250.49 215.09 7.8133 Year ended 31 March 2018 263.39 231.24 8.1537 Year ended 31 March 2019 255.90 224.36 8.6049 Six months ended 30 September 2019 245.38 220.95 4.6976 Income shares Year ended 31 March 2017 1,827.54 1,604.38 57.6321 Year ended 31 March 2018 1,888.42 1,617.69 57.7893 Year ended 31 March 2019 1,757.39 1,506.11 58.3814 Six months ended 30 September 2019 1,617.42 1,452.59 30.8570 Income shares (No Trail) Year ended 31 March 2017 133.10 116.42 4.1921 Year ended 31 March 2018 137.67 118.41 4.2227 Year ended 31 March 2019 128.87 110.66 4.2892 Six months ended 30 September 2019 119.02 107.07 2.2758 Z Income shares Year ended 31 March 2017 290.67 253.79 9.1435 Year ended 31 March 2018 300.82 259.26 9.2370 Year ended 31 March 2019 282.41 242.76 9.4139 Six months ended 30 September 2019 261.30 235.25 5.0013 Y Income shares Year ended 31 March 2017 227.94 198.95 7.1685 Year ended 31 March 2018 235.93 203.41 7.2453 Year ended 31 March 2019 221.61 190.54 7.3892 Six months ended 30 September 2019 205.12 184.70 3.9269

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Invesco Income Fund (UK) Investment report for the period

Operating charges figure 01.4.19 01.4.18 to 30.9.19 to 31.3.19 Operating charges as % of average net assets Accumulation shares and Income shares 1.66% 1.66% Accumulation shares (No Trail) and Income shares (No Trail) 1.16% 1.16% Z Accumulation shares and Z Income shares 0.91% 0.91% Y Accumulation shares and Y Income shares 0.86% 0.86%

The operating charges figure is equivalent to the FMF shown on page 06, which we also refer to as the ongoing charge in our Key Investor Information Documents (KIIDs) and our literature.

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Invesco Income Fund (UK) Investment report for the period

Portfolio Statement Holding or Percentage as at 30 September 2019 nominal Market of total value of value net assets Investment positions £’000 % Denmark 0.69% (31.3.19 - 0.00%) Financials 0.69% (31.3.19 - 0.00%) Eurotrust 1 4,155,000 – 0.00 Novo Nordisk ‘B’ 452,681 18,924 0.69

France 1.10% (31.3.19 - Nil) Oil & Gas 1.10% (31.3.19 - Nil) Total 709,527 30,058 1.10

Germany 0.00% (31.3.19 - 0.00%) Financials 0.00% (31.3.19 - 0.00%) Speymill Deutsche Immobilien 1 14,588,469 – 0.00

Guernsey 3.13% (31.3.19 - 2.64%) Industrials 1.07% (31.3.19 - 1.04%) Amedeo Air Four Plus 35,191,196 29,209 1.07

Financials 2.06% (31.3.19 - 1.60%) Hipgnosis Songs Fund 14,677,929 15,705 0.57 Sherborne Investors 50,000,000 25,000 0.91 Trian Investors 15,719,465 15,719 0.58

Israel 0.63% (31.3.19 - 0.36%) Financials 0.63% (31.3.19 - 0.36%) Plus500 2,265,963 17,294 0.63

Norway 0.22% (31.3.19 - 0.43%) Industrials 0.22% (31.3.19 - 0.43%) IDEX 36,300,045 4,377 0.16 Thin Film Electronics ‘A’ 72,116,529 1,697 0.06

United Kingdom 89.09% (31.3.19 - 91.78%) Oil & Gas 8.32% (31.3.19 - 8.34%) BP 29,962,826 154,488 5.64 Royal Dutch Shell ‘A’ (UK Regd.) 3,062,276 73,005 2.67 Velocys 8,400,000 197 0.01

Industrials 10.10% (31.3.19 - 11.33%) Babcock International 8,178,248 45,553 1.66 Breedon 75,863,818 49,311 1.80 Capita 41,890,269 60,678 2.22 G4S 22,715,539 42,978 1.57 HomeServe 3,510,568 41,635 1.52 Stobart 28,230,580 35,740 1.31 Xeros Technology 8,315,830 541 0.02

Consumer Goods 10.48% (31.3.19 - 10.10%) British American Tobacco 4,468,671 134,395 4.91 Cranswick 1,961,239 57,778 2.11 Countryside Properties 148,525 498 0.02 Imperial Brands 2,545,607 46,539 1.70 Nexeon 1 184,981 1,633 0.06 Victoria 9,894,992 46,111 1.68

Health Care 3.25% (31.3.19 - 4.98%) Cell Medica ‘A’ pref. 1 727,272 284 0.01 Cell Medica ‘B’ pref. 1 261,841 251 0.01 Cell Medica ‘C’ pref. 1 549,507 1,374 0.05 Circassia Pharmaceuticals 27,503,822 4,593 0.17 e-Therapeutics 35,323,680 989 0.04 hVIVO 7,940,160 1,231 0.04 Infirst Healthcare D-2013 1 234,001 395 0.02 Infirst Healthcare D-2015 1 36,339 84 0.00 Infirst Healthcare January pref. 1 11,697 153 0.01 Infirst Healthcare March pref. 1 12,724 113 0.00 Lamellar Biomedical 1 39,090 1,026 0.04 Mereo Biopharma 5,257,323 3,102 0.11

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Invesco Income Fund (UK) Investment report for the period

Portfolio Statement continued Holding or Percentage as at 30 September 2019 nominal Market of total value of value net assets Investment positions £’000 % Health Care continued Oxford Nanopore Technologies 1 1,244,645 67,634 2.47 Psioxus Therapeutics ‘A’ pref. 1 40,832 2,062 0.08 Psioxus Therapeutics ‘B-1’ pref. 1 21,213 1,102 0.04 Psioxus Therapeutics ‘B-2’ pref. 1 10,101 571 0.02 Tissue Regenix 125,263,532 3,883 0.14

Consumer Services 11.63% (31.3.19 - 9.19%) Card Factory 24,771,000 41,467 1.52 easyJet 4,459,930 51,289 1.87 International Consolidated Airlines (UK Regd.) 3,167,567 15,046 0.55 ITWP Acquisitions 1 2,722,975,639 18,189 0.66 Next 1,439,790 89,065 3.25 Supponor 1 113,677 – 0.00 Tesco 31,602,538 76,162 2.78 Time out 21,883,334 27,354 1.00

Telecommunications 2.37% (31.3.19 - 2.57%) BT 26,958,247 48,142 1.76 TalkTalk Telecom 15,839,513 16,631 0.61

Utilities 1.24% (31.3.19 - 1.50%) Drax 12,342,959 34,017 1.24

Financials 41.34% (31.3.19 - 43.42%) AJ Bell 13,502,570 55,833 2.04 Allied Minds 14,169,868 7,453 0.27 Amigo 15,103,218 10,119 0.37 Aviva 8,105,734 32,366 1.18 Beazley 7,109,597 44,222 1.62 Biopharma Credit 55,859,899 46,010 1.68 British Land 9,825,407 57,439 2.10 Burford Capital 6,035,178 49,670 1.81 Cambridge Innovation Capital 1 4,344,506 4,167 0.15 Crystal Amber Fund 9,847,231 18,710 0.68 Derwent London 2,269,002 76,465 2.79 Draper Esprit 6,809,824 28,806 1.05 Eurovestech 1 38,819,368 2,484 0.09 Funding Circle 6,289,147 5,975 0.22 Hiscox 2,069,426 34,352 1.26 Honeycomb Investment Trust 4,441,900 45,752 1.67 IP 86,016,119 54,792 2.00 Lancashire 5,374,360 39,609 1.45 Leaf Clean Energy 3,185,038 4,459 0.16 Legal & General 29,410,152 73,055 2.67 Marwyn Value Investors 6,736,638 8,421 0.31 NewRiver REIT 15,139,955 29,432 1.08 Non-Standard Finance 29,008,835 11,604 0.42 Ombu ‘D’ pref. 1 43,816 2,453 0.09 Ombu pref. 1 223,482 13,775 0.50 Ombu 1 1,056,081 – 0.00 P2P Global Investments 5,861,966 47,365 1.73 Provident Financial 10,892,188 44,331 1.62 PRS REIT 47,026,819 40,913 1.49 Raven Property 57,969,053 24,695 0.90 Raven Property 6.5% pref. 5,877,193 6,230 0.23 Raven property pref. 14,897,481 19,218 0.70 Redde 25,602,868 29,238 1.07 Royal Bank of Scotland 20,078,142 41,682 1.52 Safe Harbour 2,361,111 3,069 0.11 Secure Income REIT 10,261,515 46,177 1.69 Summit Germany 44,383,895 47,904 1.75 VPC Specialty Lending Investments 24,922,146 19,738 0.72 Wilmcote 4,062,500 3,961 0.15

Technology 0.36% (31.3.19 - 0.35%) Mercia Technologies 31,957,496 9,779 0.36

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Invesco Income Fund (UK) Investment report for the period

Portfolio Statement continued Holding or Percentage as at 30 September 2019 nominal Market of total value of value net assets Investment positions £’000 % United States 5.81% (31.3.19 - 4.88%) Basic Materials 0.00% (31.3.19 - 0.01%) Xyleco ‘A’ 1 18,038,631 – 0.00 Xyleco ‘B’ 1 6,012,877 – 0.00

Health Care 5.16% (31.3.19 - 4.29%) Evofem Biosciences 4,148,940 16,969 0.62 Gelesis 1 869,031 11,290 0.41 Immunoscience 1 8,016,712 – 0.00 Oxford Immunotec 2,683,448 36,148 1.32 PureTech Health 25,401,285 63,757 2.33 Vedanta Biosciences 1 485,651 9,131 0.33 Vedanta Biosciences ‘C’ pref. 1 220,751 4,151 0.15

Financials 0.50% (31.3.19 - 0.46%) Eight Africa Fund ‘A’ 1 21,649,470 13,680 0.50

Technology 0.15% (31.3.19 - 0.12%) Spin Transfer Technologies 1 1,864,286 3,994 0.15

Portfolio of investments (31.3.19 - 100.09%) 2,756,115 100.67 Net other liabilities (31.3.19 - (0.09%)) (18,305) (0.67) Net assets 2,737,810 100.00

Unless otherwise stated, all holdings are on an official stock exchange listing or are permitted collective investment schemes.

1 Unquoted securities - for the period ended 30 September 2019 these amount to 5.84% (31 March 2019 - 4.95%) of the Net Asset Value of the Fund.

Portfolio Statement Breakdown Percentage Percentage as at 30 September 2019 Market of total Market of total value net assets value net assets 30.9.19 30.9.19 31.3.19 31.3.19 £’000 % £’000 % Quoted securities 2,596,119 94.83 3,061,620 95.14 Unquoted securities 1 159,996 5.84 159,345 4.95 Portfolio of investments 2,756,115 100.67 3,220,965 100.09 Net other liabilities (18,305) (0.67) (2,783) (0.09) Net assets 2,737,810 100.00 3,218,182 100.00

14 Invesco UK 2 Investment Series 03 Income Fund_Layout 1 22-Nov-19 10:02 AM Page 15

Invesco Income Fund (UK) Investment report for the period

Summary of Material Portfolio Changes for the period 1 April 2019 to 30 September 2019 Cost £’000 Total purchases 176,201 Largest purchases: Denmark Novo Nordisk ‘B’ 19,352 France Total 30,769 Guernsey Hipgnosis Songs Fund 8,575 Israel Plus500 3,990 United Kingdom Amigo 26,205 Royal Bank of Scotland 14,931 International Consolidated Airlines (UK Regd.) 14,075 Tesco 11,902 British American Tobacco 9,289 Time out 5,530 Derwent London 3,454 Capita 3,143 BP 3,125 G4S 3,103 Legal & General 3,085 British Land 3,084 BT 3,079 Babcock International 3,020 easyJet 2,883 United States Gelesis 3,143

Proceeds £’000 Total sales 516,428 Largest sales: United Kingdom AJ Bell 107,100 BCA Marketplace 92,008 BTG 53,260 HomeServe 22,024 Aviva 21,017 Funding Circle SME Income Fund 20,167 Royal Dutch Shell ‘A’ (UK Regd.) 15,547 Derwent London 14,387 BP 13,767 Next 12,482 Hiscox 11,006 Leaf Clean Energy 10,479 Imperial Brands 9,831 Biopharma Credit 7,432 Lancashire 7,204 TalkTalk Telecom 7,190 British American Tobacco 6,344 Legal & General 6,261 Burford Capital 5,781 United States Alkermes 22,811

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Invesco Income Fund (UK) Unaudited financial statements

Unaudited Statement of Total Return 01.4.19 01.4.18 for the period 1 April 2019 to 30 September 2019 to 30.9.19 to 30.9.18 £’000 £’000 £’000 £’000 Income Net capital (losses)/gains (124,884) 245,316 Revenue 60,283 84,160 Expenses (20,407) (29,167) Interest payable and similar charges (24) (17) Net revenue before taxation 39,852 54,976 Taxation (434) (386) Net revenue after taxation 39,418 54,590 Total return before distributions (85,466) 299,906 Distributions (59,021) (82,959) Change in net assets attributable to Shareholders from investment activities (144,487) 216,947

Unaudited Statement of Change i n Net Assets Attributable to Shareholders 01.4.19 01.4.18 for the period 1 April 2019 to 30 September 2019 to 30.9.19 to 30.9.18 £’000 £’000 £’000 £’000 Opening net assets attributable to Shareholders 3,218,182 4,312,067

Amounts received on issue of shares 4,167 7,561 Amounts paid on redemption of shares (381,204) (700,269) (377,037) (692,708)

Dilution adjustment 1,882 2,402 Change in net assets attributable to Shareholders from investment activities (144,487) 216,947 Retained distribution on accumulation shares 39,250 51,989 Unclaimed distribution monies 20 15 Closing net assets attributable to Shareholders 2,737,810 3,890,712

The opening net assets attributable to Shareholders for the current period do not equal the closing net assets attributable to Shareholders for the comparative period as they are not consecutive periods.

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Invesco Income Fund (UK) Unaudited financial statements

Unaudited Balance Sheet 30.9.19 31.3.19 as at 30 September 2019 £’000 £’000 £’000 £’000 Assets Fixed assets Investments 2,756,115 3,220,965

Current assets Debtors 3,880 12,236 Cash and bank balances 5,019 13,667 Total other assets 8,899 25,903 Total assets 2,765,014 3,246,868

Liabilities Investment liabilities – –

Creditors Distribution payable 16,376 15,356 Other creditors 10,828 13,330 Total other liabilities 27,204 28,686 Total liabilities 27,204 28,686 Net assets attributable to Shareholders 2,737,810 3,218,182

Accounting Policies The Fund’s accounting policies are set out on page 06.

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Invesco Income Fund (UK) Distributions

Distributions 01.4.19 01.4.18 for the period 1 April 2019 to 30 September 2019 to 30.9.19 to 30.9.18 pence pence per share per share Accumulation shares Payable 30 November 2019 62.3831 65.1674 Accumulation shares (No Trail) Payable 30 November 2019 3.4947 3.6328 Z Accumulation shares Payable 30 November 2019 6.1895 6.4241 Y Accumulation shares Payable 30 November 2019 4.6976 4.8740 Income shares Payable 30 November 2019 30.8570 33.3931 Income shares (No Trail) Payable 30 November 2019 2.2758 2.4505 Z Income shares Payable 30 November 2019 5.0013 5.3767 Y Income shares Payable 30 November 2019 3.9269 4.2208

18 Invesco UK 2 Investment Series 04 UK Enhanced Index Fund_Layout 1 22-Nov-19 10:02 AM Page 19

Invesco UK Enhanced Index Fund (UK) Investment report for the period

The Investment Objective and Policy of the Invesco UK Enhanced Index Fund (UK) The Fund aims to achieve capital growth and outperform the FTSE All–Share (ex Investment Trusts) Index TR net of fees (the “Benchmark”) over a rolling 5 year period. The Fund invests at least 80% of its assets in shares or other equity related securities of companies incorporated, domiciled or carrying out the main part of their economic activity in the UK. There is no guarantee that the Fund will achieve its target and an investor may not get back the amount invested. In pursuing the Fund’s investment objective, the fund manager may consider it appropriate to also invest in other transferable securities (including non UK companies), money market instruments, collective investment schemes (including funds managed by the Invesco group), deposits and cash. The Fund may use derivatives for efficient portfolio management purposes only, to reduce risk, reduce costs and/or generate additional capital or income.

Performance Percentage growth to 30 September 2019 Since Since Since Since Since 31.3.19 30.9.18 30.9.16 30.9.14 30.9.09 % % % % % Invesco UK Enhanced Index Fund (UK) (Z Accumulation shares) 1 4.24 1.20 23.95 42.19 139.24 FTSE All–Share (ex Investment Trusts) Index TR 2 4.55 2.62 21.12 37.89 119.21

Standardised rolling 12 month performance Percentage growth 30.9.14 30.9.15 30.9.16 30.9.17 30.9.18 30.9.15 30.9.16 30.9.17 30.9.18 30.9.19 % % % % % Invesco UK Enhanced Index Fund (UK) (Z Accumulation shares) 1 -1.1 16.0 13.2 8.3 1.2 FTSE All–Share (ex Investment Trusts) Index TR 2 -2.5 16.7 11.7 5.6 2.6

This standardised past performance information is updated on a quarterly basis. Should you require up to date past performance information, this is available on our website www.invesco.co.uk or by contacting us.

Fund performance data source: Lipper, in Sterling, with income reinvested and net of the ongoing charge and portfolio transaction costs. FTSE All–Share (ex Investment Trusts) Index TR 2 data source: Lipper, total return, in Sterling.

The value of investments and any income from them will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested.

Past performance is not a guide to future returns. Current tax levels and reliefs may change. Depending on individual circumstances, this may affect investment returns.

1 Effective 28 July 2016, the primary share class changed from Accumulation share (No Trail) class to Z Accumulation share class. Performance figures are based on the Z Accumulation share class. As this was launched on 28 July 2016, for the periods prior to this launch date, performance figures are based on the Accumulation share (No Trail) class, without any adjustment for fees. 2 This is a Target Benchmark. The Fund aims to outperform the Benchmark net of fees over a rolling 5 year period. The Fund has a high correlation to the Benchmark and has similar risk characteristics aiming for a tracking error target of 1.5%. As a result, this will limit the extent to which the Fund’s performance will deviate from the Benchmark. The Fund’s performance can be measured against the Benchmark.

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Invesco UK Enhanced Index Fund (UK) Investment report for the period

Strategy, review and outlook Michael Fraikin and Alexander Uhlmann, The Fund rose by 4.2% over the six months to the end Fund Managers of September 2019, compared to a 4.6% increase in Where Michael Fraikin and Alexander Uhlmann the FTSE All-Share (ex Investment Trusts) Index TR. have expressed opinions, they are based on current market conditions, they may differ from those of Fund performance data source: Lipper, in Sterling, other investment professionals and are subject to with income reinvested and net of the ongoing charge change without notice. and portfolio transaction costs. Performance figures are based on the Z Accumulation share class. FTSE All-Share (ex Investment Trusts) Index TR data source: The Fund’s ten largest investments are % Lipper, total return, in Sterling. Royal Dutch Shell 8.30 HSBC 4.93 Past performance is not a guide to future returns. GlaxoSmithKline 4.63 Our performance is generated through a quantitative BP 4.06 bottom-up investment process driven by a Multi-Factor Diageo 3.37 Model based on four factors: Earnings Momentum, AstraZeneca 3.28 Price Momentum, Quality and Value. Relative risk is controlled with the help of an optimiser, an analysis British American Tobacco 3.17 tool that recommends trades to maximise portfolio Rio Tinto 3.10 exposure to the selected stocks within pre-determined BHP 3.05 risk/return parameters. In terms of portfolio Unilever 2.76 construction, we tightly constrain the risk taken in sectors, countries and currencies.

The UK equity market ended over the last six months in positive territory despite of concerns about trade tensions and Brexit. After seeing a recovery from June to July, the UK stock market suffered a significant drop in early August, spooked by a reignition of trade war rhetoric and the inversion of the US and UK yield curves. However, the market rebounded in September after the ease of US-China trade tensions.

In terms of relative performance, the Fund slightly underperformed its benchmark over the last six months. The contribution from our proprietary factors was in total flat. Despite of the negative contribution from Value and Price Momentum to relative performance, Quality and Earnings Momentum contributed positively and offset the detraction. Overweight positions in Greene King and Smith & Nephew added to relative performance, while an underweight in AstraZeneca and an overweight in Micro Focus International detracted from relative performance. Residual factors like sector allocation and the remaining style factors had no significant impact on the relative performance.

In terms of recent fund activity, we increased our positions in Avast, London Stock Exchange, Burberry and Ultra Electronics with trade weights of 0.42%, 0.40%, 0.31% and 0.26%, respectively. Moreover, we bought 0.16% Hochschild Mining. On the other side, we sold out of Plus500 and Investec Bank with trade weights of 0.13% and 0.07%, respectively. Furthermore, we decreased our positions in Micro Focus International, Tate & Lyle and Quilter with trade weights of 0.06%, 0.06% and 0.05%, respectively.

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Invesco UK Enhanced Index Fund (UK) Investment report for the period

Comparative table

Total net assets of Fund 30.9.19 31.3.19 31.3.18 31.3.17 £’000 £’000 £’000 £’000 Total net assets 564,485 495,475 308,962 87,848

Net asset value 30.9.19 31.3.19 31.3.18 31.3.17 Accumulation shares (No Trail) Assets attributable (£'000) 223,107 208,856 142,364 49,657 Shares in issue 40,949,315 39,814,075 28,592,748 10,394,951 Net asset value (pence per share) 544.84 524.58 497.90 477.70 Z Accumulation shares Assets attributable (£'000) 246,318 208,080 108,430 11 Shares in issue 97,140,217 85,234,219 46,799,626 5,000 Net asset value (pence per share) 253.57 244.13 231.69 222.25 Y Accumulation shares Assets attributable (£'000) 50,192 35,926 13,299 47 Shares in issue 19,787,673 14,712,298 5,739,048 21,339 Net asset value (pence per share) 253.65 244.19 231.73 222.27 Income shares (No Trail) Assets attributable (£'000) 29,699 29,099 38,561 38,012 Shares in issue 10,239,386 10,165,537 13,595,696 13,439,436 Net asset value (pence per share) 290.04 286.25 283.63 282.84 Z Income shares Assets attributable (£'000) 12,752 11,150 6,094 11 Shares in issue 5,790,012 5,129,594 2,829,397 5,000 Net asset value (pence per share) 220.24 217.36 215.38 214.78 Y Income shares Assets attributable (£'000) 2,417 2,364 214 110 Shares in issue 1,097,537 1,087,528 99,444 51,207 Net asset value (pence per share) 220.24 217.36 215.37 214.78

Z Accumulation shares, Y Accumulation shares, Z Income shares and Y Income shares were issued at 200p on 28 July 2016.

21 Invesco UK 2 Investment Series 04 UK Enhanced Index Fund_Layout 1 22-Nov-19 10:02 AM Page 22

Invesco UK Enhanced Index Fund (UK) Investment report for the period

Price and revenue record by share class Highest Lowest Net share share revenue price price per share Accounting period p p p Accumulation shares (No Trail) Year ended 31 March 2017 484.58 383.11 15.6903 Year ended 31 March 2018 535.16 469.82 19.1601 Year ended 31 March 2019 562.43 475.97 22.6749 Six months ended 30 September 2019 562.03 520.70 13.3564 Z Accumulation shares 28 July 2016 to 31 March 2017 225.45 196.51 7.3052 Year ended 31 March 2018 249.02 218.59 8.9589 Year ended 31 March 2019 261.72 221.50 10.5763 Six months ended 30 September 2019 261.57 242.33 6.2288 Y Accumulation shares 28 July 2016 to 31 March 2017 225.48 196.51 7.3294 Year ended 31 March 2018 249.06 218.61 8.9622 Year ended 31 March 2019 261.77 221.55 10.6047 Six months ended 30 September 2019 261.64 242.41 6.2433 Income shares (No Trail) Year ended 31 March 2017 291.46 234.73 9.5304 Year ended 31 March 2018 309.84 278.18 11.2382 Year ended 31 March 2019 320.38 264.73 12.7828 Six months ended 30 September 2019 306.71 284.16 7.2889 Z Income shares 28 July 2016 to 31 March 2017 221.33 196.51 7.2400 Year ended 31 March 2018 235.29 211.24 8.5673 Year ended 31 March 2019 243.29 201.03 9.7309 Six months ended 30 September 2019 232.91 215.79 5.5466 Y Income shares 28 July 2016 to 31 March 2017 221.35 196.51 7.2645 Year ended 31 March 2018 235.29 211.24 8.5792 Year ended 31 March 2019 243.29 201.03 9.7573 Six months ended 30 September 2019 232.92 215.79 5.5584

Z Accumulation shares, Y Accumulation shares, Z Income shares and Y Income shares were issued at 200p on 28 July 2016.

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Invesco UK Enhanced Index Fund (UK) Investment report for the period

Operating charges figure 01.4.19 01.4.18 to 30.9.19 to 31.3.19 Operating charges as % of average net assets Accumulation shares (No Trail) and Income shares (No Trail) 0.25% 0.25% Z Accumulation shares and Z Income shares 0.24% 0.24% Y Accumulation shares and Y Income shares 0.23% 0.23%

The operating charges figure is equivalent to the FMF shown on page 06, which we also refer to as the ongoing charge in our Key Investor Information Documents (KIIDs) and our literature.

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Invesco UK Enhanced Index Fund (UK) Investment report for the period

Portfolio Statement Holding or Percentage as at 30 September 2019 nominal Market of total value of value net assets Investment positions £’000 % Canada 0.09% (31.3.19 - Nil) Consumer Services 0.09% (31.3.19 - Nil) Entertainment One 94,223 533 0.09

Georgia 0.11% (31.3.19 - 0.16%) Financials 0.11% (31.3.19 - 0.16%) Bank of Georgia 47,584 636 0.11

India 0.09% (31.3.19 - Nil) Industrials 0.09 (31.3.19 - Nil) Rhi Magnesita 12,817 520 0.09

Ireland 0.08% (31.3.19- Nil) Consumer Goods 0.08% (31.3.19 - Nil) Greencore 201,930 456 0.08

Israel Nil (31.3.19 - 0.28%) Financials Nil (31.3.19 - 0.28%)

Switzerland 0.36% (31.3.19 - 0.85%) Basic Materials Nil (31.3.19 - 0.15%)

Consumer Goods 0.36% (31.3.19 - 0.70%) Coca-Cola HBC 42,489 1,127 0.20 Ferrexpo 546,604 880 0.16

United Kingdom 95.70% (31.3.19 - 94.20%) Oil & Gas 12.73% (31.3.19 - 14.82%) BP 4,441,325 22,899 4.05 Petrofac 381,824 1,528 0.27 Premier Oil 784,440 611 0.11 Royal Dutch Shell ‘A’ (UK Regd.) 1,297,684 30,937 5.48 Royal Dutch Shell 'B' (UK Regd.) 663,593 15,896 2.82

Basic Materials 8.33% (31.3.19 - 9.59%) Anglo American 307,300 5,750 1.02 BHP 993,764 17,216 3.05 Evraz 569,422 2,663 0.47 Mondi 250,220 3,888 0.69 Rio Tinto (UK Regd.) 416,095 17,513 3.10

Industrials 8.23% (31.3.19 - 6.94%) Aggreko 483,863 4,017 0.71 BCA Marketplace 184,754 435 0.08 Cobham 590,895 927 0.16 Diploma 70,836 1,176 0.21 Experian 139,234 3,617 0.64 Ferguson 69,504 4,129 0.73 Forterra 208,746 592 0.11 Grafton 299,690 2,273 0.40 Hochschild Mining 388,438 796 0.14 Howden Joinery 1,177,514 6,599 1.17 Ibstock 110,485 261 0.05 Intertek 31,015 1,699 0.30 Marshalls 236,728 1,567 0.28 Meggitt 891,445 5,661 1.00 MITIE 291,388 426 0.08 Morgan Sindall 29,735 359 0.06 PageGroup 344,529 1,513 0.27 PayPoint 34,370 313 0.06 QinetiQ 259,246 749 0.13 Rentokil Initial 427,107 1,997 0.35 Serco 124,534 185 0.03 SIG 131,120 165 0.03 Spirax-Sarco Engineering 14,512 1,138 0.20 Travis Perkins 237,950 3,072 0.54 Ultra Electronics 138,865 2,808 0.50

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Invesco UK Enhanced Index Fund (UK) Investment report for the period

Portfolio Statement continued Holding or Percentage as at 30 September 2019 nominal Market of total value of value net assets Investment positions £’000 % Consumer Goods 15.87% (31.3.19 - 14.44%) Barratt Developments 1,191,865 7,711 1.37 Berkeley 9,005 376 0.07 British American Tobacco 594,910 17,892 3.17 Britvic 126,760 1,245 0.22 Burberry 91,139 1,980 0.35 Diageo 570,686 19,021 3.37 Games Workshop 16,317 770 0.14 Imperial Brands 296,154 5,414 0.96 Persimmon 141,540 3,071 0.55 Reckitt Benckiser 108,971 6,912 1.22 Tate & Lyle 1,053,584 7,754 1.37 Taylor Wimpey 1,129,713 1,824 0.32 Unilever 318,804 15,588 2.76

Health Care 10.60% (31.3.19 - 9.23%) AstraZeneca 255,249 18,531 3.28 GlaxoSmithKline 1,496,778 26,110 4.63 Hikma Pharmaceuticals 223,236 4,911 0.87 Smith & Nephew 525,382 10,292 1.82

Consumer Services 13.53% (31.3.19 - 13.30%) 4imprint 8,612 258 0.05 Auto Trader 1,609,514 8,209 1.46 Compass 319,011 6,677 1.18 Dunelm 298,469 2,501 0.44 EI 108,337 304 0.05 FirstGroup 1,444,504 1,986 0.35 Go-Ahead 61,657 1,241 0.22 Greene King 75,719 641 0.11 Greggs 206,588 4,314 0.77 Inchcape 282,585 1,783 0.32 International Consolidated Airlines (UK Regd.) 1,173,180 5,573 0.99 Just Eat 142,322 950 0.17 JD Sports Fashion 234,681 1,760 0.31 Marks & Spencer 196,767 363 0.06 Marston's 230,815 285 0.05 Merlin Entertainments 167,734 759 0.13 Moneysupermarket.com 421,487 1,592 0.28 Morrison (Wm.) Supermarkets 1,373,069 2,750 0.49 Next 133,107 8,234 1.46 Pearson 854,601 6,302 1.12 Pets at Home 873,739 1,817 0.32 RELX 575,472 11,118 1.97 Rightmove 494,538 2,722 0.48 Stagecoach 492,934 659 0.12 Tesco 196,277 473 0.08 WH Smith 55,033 1,092 0.19 WPP 198,718 2,023 0.36

Telecommunications 2.30% (31.3.19 - 2.60%) BT 584,929 1,045 0.18 Inmarsat 101,825 596 0.11 Telecom Plus 25,120 309 0.05 Vodafone 6,825,771 11,058 1.96

Utilities 2.07% (31.3.19 - 2.28%) Centrica 663,586 489 0.09 Drax 764,950 2,108 0.37 Halma 78,830 1,553 0.28 National Grid 456,127 4,023 0.71 SSE 183,796 2,289 0.41 United Utilities 144,952 1,196 0.21

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Invesco UK Enhanced Index Fund (UK) Investment report for the period

Portfolio Statement continued Holding or Percentage as at 30 September 2019 nominal Market of total value of value net assets Investment positions £’000 % Financials 19.51% (31.3.19 - 19.17%) 3i 790,377 9,220 1.63 Admiral 21,668 459 0.08 Ashmore 723,435 3,657 0.65 Aviva 1,239,749 4,950 0.88 Barclays 2,773,187 4,171 0.74 British Land 128,173 749 0.13 Direct Line 64,557 194 0.03 Hammerson 408,358 1,158 0.21 HSBC (UK Regd.) 4,454,319 27,822 4.93 Intermediate Capital 420,667 6,117 1.08 Jupiter Fund Management 467,982 1,663 0.30 Land Securities 74,988 642 0.11 Legal & General 3,389,242 8,419 1.49 Lloyds Banking 25,999,209 14,071 2.49 London Stock Exchange 78,607 5,745 1.02 Man 1,572,738 2,747 0.49 NewRiver REIT 92,913 181 0.03 OneSavings Bank 260,328 961 0.17 Paragon 323,946 1,563 0.28 Prudential 608,119 8,967 1.59 Quilter 144,047 196 0.04 Royal Bank of Scotland 131,403 273 0.05 Savills 52,552 462 0.08 Segro 41,122 333 0.06 Shaftesbury 170,026 1,545 0.27 Standard Chartered 381,256 2,608 0.46 Standard Life Aberdeen 278,289 795 0.14 Tritax Big Box Reit 291,191 435 0.08

Technology 2.53% (31.3.19 - 1.83%) Avast 1,006,593 3,902 0.69 AVEVA 15,431 571 0.10 Computacenter 125,288 1,618 0.29 FDM 64,121 474 0.08 Micro Focus International 55,747 634 0.11 Sage 637,771 4,408 0.78 Softcat 195,834 1,960 0.35 Spirent Communications 357,855 709 0.13

United States 0.48% (31.3.19 - 0.69%) Consumer Services 0.48% (31.3.19 - 0.69%) Carnival 79,540 2,680 0.48

Futures and Derivatives 0.02% (31.3.19 - 0.02%) Futures 0.02% (31.3.19 - 0.02%) FTSE 100 Index futures contracts 20/12/2019 133 107 0.02

Portfolio of investments (31.3.19 - 96.20%) 547,147 96.93 Net other assets (31.3.19 - 3.80%) 17,338 3.07 Net assets 564,485 100.00

Unless otherwise stated, all holdings are on an official stock exchange listing or are permitted collective investment schemes.

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Invesco UK Enhanced Index Fund (UK) Investment report for the period

Summary of Material Portfolio Changes for the period 1 April 2019 to 30 September 2019 Cost £’000 Total purchases 130,199 Largest purchases: United Kingdom British American Tobacco 9,102 Diageo 6,126 Barratt Developments 5,650 Compass 5,646 Sage 5,120 AstraZeneca 4,870 Unilever 4,727 Smith & Nephew 4,486 Aggreko 4,390 Rio Tinto (UK Regd.) 4,328 Travis Perkins 4,301 Auto Trader 3,929 Avast 3,839 BHP 3,476 London Stock Exchange 3,331 Ultra Electronics 2,907 Lloyds Banking 2,890 Ashmore 2,578 Standard Chartered 2,473 Greene King 2,434

Proceeds £’000 Total sales 66,140 Largest sales: Israel Plus500 1,391 Switzerland Coca-Cola HBC 2,410 United Kingdom Greene King 5,905 Micro Focus International 3,083 Evraz 2,820 Hikma Pharmaceuticals 2,720 Burberry 2,668 Tullow Oil 2,631 Persimmon 2,299 IG 2,234 Berkeley 1,983 Travis Perkins 1,908 Ferguson 1,853 PageGroup 1,699 Vodafone 1,690 Centrica 1,598 Britvic 1,583 InterContinental Hotels 1,398 Victrex 1,261 Smith & Nephew 1,225

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Invesco UK Enhanced Index Fund (UK) Unaudited financial statements

Unaudited Statement of Total Return 01.4.19 01.4.18 for the period 1 April 2019 to 30 September 2019 to 30.9.19 to 30.9.18 £’000 £’000 £’000 £’000 Income Net capital gains 6,377 17,730 Revenue 14,026 8,860 Expenses (649) (432) Interest payable and similar charges – (2) Net revenue before taxation 13,377 8,426 Taxation (141) (81) Net revenue after taxation 13,236 8,345 Total return before distributions 19,613 26,075 Distributions (13,236) (8,345) Change in net assets attributable to Shareholders from investment activities 6,377 17,730

Unaudited Statement of Change i n Net Assets Attributable to Shareholders 01.4.19 01.4.18 for the period 1 April 2019 to 30 September 2019 to 30.9.19 to 30.9.18 £’000 £’000 £’000 £’000 Opening net assets attributable to Shareholders 495,475 308,962

Amounts received on issue of shares 62,721 57,141 Amounts paid on redemption of shares (13,152) (18,243) 49,569 38,898

Dilution adjustment 309 189 Change in net assets attributable to Shareholders from investment activities 6,377 17,730 Retained distribution on accumulation shares 12,755 7,691 Closing net assets attributable to Shareholders 564,485 373,470

The opening net assets attributable to Shareholders for the current period do not equal the closing net assets attributable to Shareholders for the comparative period as they are not consecutive periods.

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Invesco UK Enhanced Index Fund (UK) Unaudited financial statements

Unaudited Balance Sheet 30.9.19 31.3.19 as at 30 September 2019 £’000 £’000 £’000 £’000 Assets Fixed assets Investments 547,147 476,631

Current assets Debtors 2,641 8,554 Cash and bank balances 15,937 11,224 Total other assets 18,578 19,778 Total assets 565,725 496,409

Liabilities Investment liabilities – –

Creditors Distribution payable 1,129 822 Other creditors 111 112 Total other liabilities 1,240 934 Total liabilities 1,240 934 Net assets attributable to Shareholders 564,485 495,475

Accounting Policies The Fund’s accounting policies are set out on page 06.

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Invesco UK Enhanced Index Fund (UK) Distributions

Distributions 01.4.19 01.4.18 for the period 1 April 2019 to 30 September 2019 to 30.9.19 to 30.9.18 pence pence per share per share Accumulation shares (No Trail) Payable 30 November 2019 13.3564 12.7516 Z Accumulation shares Payable 30 November 2019 6.2288 5.9467 Y Accumulation shares Payable 30 November 2019 6.2433 5.9607 Income shares (No Trail) Payable 30 November 2019 7.2889 7.2638 Z Income shares Payable 30 November 2019 5.5466 5.5284 Y Income shares Payable 30 November 2019 5.5584 5.5432

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Invesco UK Strategic Income Fund (UK) Investment report for the period

The Investment Objective and Policy of the Invesco UK Strategic Income Fund (UK) The Fund aims to produce an above average income and capital growth over the long term (5 years plus). The Fund invests at least 80% of its assets in shares or other equity related securities of companies incorporated, domiciled or carrying out the main part of their economic activity in the UK. In pursuing the Fund’s investment objective, the fund manager may consider it appropriate to also invest in other transferable securities (including private and unlisted equities and non UK companies), money market instruments, collective investment schemes (including funds managed by the Invesco group), deposits and cash. The Fund may use derivatives for efficient portfolio management purposes only, to reduce risk, reduce costs and/or generate additional capital or income.

Performance Percentage growth to 30 September 2019 Since Since Since Since Since 31.3.19 30.9.18 30.9.16 30.9.14 30.9.09 % % % % % Invesco UK Strategic Income Fund (UK) (Z Accumulation shares) 1 -2.23 -11.91 -7.36 4.60 111.68 IA UK All Companies Sector NR 2 4.92 0.03 20.29 36.99 121.91 Fund Ranking 237/244 238/243 226/229 214/217 113/173

Standardised rolling 12 month performance Percentage growth 30.9.14 30.9.15 30.9.16 30.9.17 30.9.18 30.9.15 30.9.16 30.9.17 30.9.18 30.9.19 % % % % % Invesco UK Strategic Income Fund (UK) (Z Accumulation shares) 1 8.2 4.4 7.0 -1.7 -11.9 IA UK All Companies Sector NR 2 1.7 12.0 13.8 5.6 0.0

This standardised past performance information is updated on a quarterly basis. Should you require up to date past performance information, this is available on our website www.invesco.co.uk or by contacting us.

Fund and sector performance data source: Lipper, in Sterling, with income reinvested and net of the ongoing charge and portfolio transaction costs.

The value of investments and any income from them will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested.

Past performance is not a guide to future returns. Current tax levels and reliefs may change. Depending on individual circumstances, this may affect investment returns.

1 Effective 18 April 2016, the primary share class changed from Income share (No Trail) class to Z Accumulation share class. Performance figures are based on the Z Accumulation share class. As this was launched on 12 November 2012, for the periods prior to this launch date, performance figures are based on the Income share (No Trail) class, without any adjustment for fees. 2 This is a Comparator Benchmark. Given its geographic focus the Fund’s performance can be compared against the Benchmark. However, the Fund is actively managed and is not constrained by any benchmark.

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Invesco UK Strategic Income Fund (UK) Investment report for the period

Strategy, review and outlook Despite the performance challenges faced over the The Fund fell by 2.2% during the six months to the end period there were a number of areas of the portfolio of September 2019, underperforming the IA UK All that performed strongly. Puretech Health was the Companies Sector NR which rose by an average of largest contributor to returns. The company’s share 4.9%. This placed the Fund in the fourth quartile. price rose strongly in the first half of the period on news that it has received approval from the United Fund and sector average performance data source: States Food & Drug Administration for a key product. Lipper, in Sterling, with income reinvested and net of Elsewhere BCA Marketplace was subject to a the ongoing charge and portfolio transaction costs. successful private equity bid, whilst Next, Randall & Performance figures are based on the Z Accumulation Quilter and Capita also provided notable positive share class. contributions to returns.

Past performance is not a guide to future returns. The performance of the UK stock market is likely to be determined by the same macroeconomic and political The UK equity market provided a positive return over forces which have dominated sentiment for the past the period. However, this headline return masks periods few years. We have seen extreme polarisation of of underlying volatility. Global markets were driven by company valuations and the fund manager believes persistent concerns of a slowdown in economic growth the most glaring opportunities lie within domestic UK and the fluctuation of US-Sino trade tensions. stocks. As such the portfolio is positioned to take Meanwhile internationally orientated sectors within the advantage of this perceived mispricing. FTSE 100 continued to lead market performance. Against this backdrop commodity prices proved volatile. The level of pessimism which is discounted in the valuations of many holdings is anticipated to Political uncertainty continued and Sterling served as materially improve when the political fog around our the bellwether for the perceived likelihood of a “no- EU exit clears. The portfolio continues to seek to deal” exit. The value of Sterling versus international invest in companies that have the potential to achieve currencies remained weak both capital growth and sustainable growth in income over time. In investing across the market-cap Economic data released during the period, showed a spectrum, the fund manager seeks to diversify the slowdown in economic growth during the first half of risk profile of the fund and secure diverse sources of 2019, a result of weaker business investment and income for the fund. He continues to evaluate the slowing global economic growth. Yet employment holdings in the portfolio and to seek the best data remains robust. opportunities to create a diversified, sustainable flow of dividend income that can grow over time. Having been a strong contributor to fund performance over many years, Burford Capital provided the The Funds exposure to unquoted investment portfolio’s largest negative return over the period. increased by 1.54% over the period and accounted In August 2019, the litigation financer was the subject for 3.55% of the portfolio as at 30 September 2019. of a highly critical report from a US firm that specialises We believe that whilst less liquid than other parts of in publishing research for short -sellers. This caused a the portfolio these stocks provide an opportunity for very material fall in the company’s share price. Burford contribution to the capital performance objectives of Capital robustly defended itself against the accusations the Fund. and later announced a series of corporate governance enhancements. Mark Barnett, Fund Manager Where Mark Barnett has expressed opinions, they are Investor sentiment towards the tobacco sector was based on current market conditions, they may differ impacted by revived fears around regulation, whilst from those of other investment professionals and are the release of underwhelming sales data for Imperial subject to change without notice. Brands’ next generation technology reignited concerns around the outlook for future revenues. Despite these persistent concerns, the manager The Fund’s ten largest investments are % remains confident in the outlook for the sector, BP 5.82 particularly given his view that the headwinds British American Tobacco 5.69 outlined are reflected in depressed valuations. PureTech Health 3.80 It should also be noted that a small number of Next 3.61 holdings saw persistently weak share prices in the Tesco 3.11 absence of any meaningful company news. This Capita 2.99 cohort comprised a number of stocks in which there was a cross holding with a forced seller, which further Royal Dutch Shell 2.96 compounded the already depressed market Real Estate Investors 2.92 sentiment. Whilst this short-term share price Marwyn Value Investors 2.90 disruption was not isolated to this portfolio it has Legal & General 2.83 proven extremely frustrating. We maintain the view that the long-term outlook and inherent value of those companies impacted is unchanged.

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Invesco UK Strategic Income Fund (UK) Investment report for the period

Comparative table

Total net assets of Fund 30.9.19 31.3.19 31.3.18 31.3.17 £’000 £’000 £’000 £’000 Total net assets 185,611 254,497 431,702 824,707

Net asset value 30.9.19 31.3.19 31.3.18 31.3.17 Accumulation shares Assets attributable (£'000) 14,843 20,182 36,767 42,490 Shares in issue 8,728,533 11,577,212 19,845,613 21,886,943 Net asset value (pence per share) 170.06 174.33 185.27 194.13 Accumulation shares (No Trail) Assets attributable (£'000) 1,111 1,542 2,687 4,004 Shares in issue 161,314 218,896 360,870 515,633 Net asset value (pence per share) 688.75 704.27 744.71 776.46 Z Accumulation shares Assets attributable (£'000) 36,411 49,166 81,552 145,078 Shares in issue 11,776,320 15,570,475 24,485,836 41,882,200 Net asset value (pence per share) 309.19 315.76 333.06 346.40 Y Accumulation shares Assets attributable (£'000) 73,086 94,892 149,744 196,427 Shares in issue 33,662,644 42,807,537 64,076,084 80,856,864 Net asset value (pence per share) 217.11 221.67 233.70 242.93 Income shares Assets attributable (£'000) 11,749 17,969 39,017 256,196 Shares in issue 10,752,780 15,639,211 30,894,482 187,859,463 Net asset value (pence per share) 109.26 114.90 126.29 136.38 Income shares (No Trail) Assets attributable (£'000) 19,020 22,354 30,313 39,228 Shares in issue 4,297,370 4,815,261 5,970,512 7,191,016 Net asset value (pence per share) 442.59 464.24 507.70 545.52 Z Income shares Assets attributable (£'000) 14,368 27,526 50,429 82,614 Shares in issue 5,900,832 10,790,290 18,121,354 27,697,960 Net asset value (pence per share) 243.50 255.10 278.29 298.27 Y Income shares Assets attributable (£'000) 15,023 20,866 41,193 58,670 Shares in issue 8,487,087 11,255,668 20,378,598 27,094,305 Net asset value (pence per share) 177.01 185.38 202.14 216.54

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Invesco UK Strategic Income Fund (UK) Investment report for the period

Price and revenue record by share class Highest Lowest Net share share revenue price price per share Accounting period p p p Accumulation shares Year ended 31 March 2017 195.03 171.87 6.0263 Year ended 31 March 2018 205.36 184.06 5.7701 Year ended 31 March 2019 199.48 165.72 6.2133 Six months ended 30 September 2019 181.23 159.59 4.2801 Accumulation shares (No Trail) Year ended 31 March 2017 779.93 684.81 24.0582 Year ended 31 March 2018 822.09 739.78 23.1580 Year ended 31 March 2019 802.41 668.64 25.0533 Six months ended 30 September 2019 732.46 645.94 17.3350 Z Accumulation shares Year ended 31 March 2017 347.92 304.93 10.7191 Year ended 31 March 2018 366.92 330.83 10.3413 Year ended 31 March 2019 358.99 299.59 11.2273 Six months ended 30 September 2019 328.47 289.88 7.7806 Y Accumulation shares Year ended 31 March 2017 244.00 213.76 7.5159 Year ended 31 March 2018 257.35 232.13 7.2545 Year ended 31 March 2019 251.94 210.30 7.8806 Six months ended 30 September 2019 230.60 203.54 5.4635 Income shares Year ended 31 March 2017 139.05 124.62 4.3346 Year ended 31 March 2018 144.27 127.20 4.0230 Year ended 31 March 2019 135.98 110.93 4.2031 Six months ended 30 September 2019 119.45 105.18 2.8209 Income shares (No Trail) Year ended 31 March 2017 556.13 496.61 17.3073 Year ended 31 March 2018 577.61 511.32 16.1554 Year ended 31 March 2019 547.06 447.61 16.9476 Six months ended 30 September 2019 482.83 425.80 11.4269 Z Income shares Year ended 31 March 2017 304.04 271.01 9.4506 Year ended 31 March 2018 315.95 280.25 8.8412 Year ended 31 March 2019 299.97 245.80 9.3070 Six months ended 30 September 2019 265.37 234.19 6.2857 Y Income shares Year ended 31 March 2017 220.73 196.67 6.8591 Year ended 31 March 2018 229.40 203.56 6.4202 Year ended 31 March 2019 217.92 178.61 6.7634 Six months ended 30 September 2019 192.86 170.23 4.5692

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Invesco UK Strategic Income Fund (UK) Investment report for the period

Operating charges figure 01.4.19 01.4.18 to 30.9.19 to 31.3.19 Operating charges as % of average net assets Accumulation shares and Income shares 1.67% 1.67% Accumulation shares (No Trail) and Income shares (No Trail) 1.17% 1.17% Z Accumulation shares and Z Income shares 0.92% 0.92% Y Accumulation shares and Y Income shares 0.87% 0.87%

The operating charges figure is equivalent to the FMF shown on page 06, which we also refer to as the ongoing charge in our Key Investor Information Documents (KIIDs) and our literature.

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Invesco UK Strategic Income Fund (UK) Investment report for the period

Portfolio Statement Holding or Percentage as at 30 September 2019 nominal Market of total value of value net assets Investment positions £’000 % Denmark 0.71% (31.3.19 - Nil) Financials 0.71% (31.3.19 - Nil) Novo Nordisk ‘B’ 31,391 1,312 0.71

France 1.23% (31.3.19 - Nil) Oil & Gas 1.23% (31.3.19 - Nil) Total 54,080 2,291 1.23

Guernsey 0.00% (31.3.19 - 0.00%) Financials 0.00% (31.3.19 - 0.00%) Nimrod Sea Assets 1 5,722,672 – 0.00

Israel 0.80% (31.3.19 - 0.46%) Health Care 0.00% (31.3.19 - 0.00%) XTL Biopharmaceuticals ADR 1,191 1 0.00

Financials 0.80% (31.3.19 - 0.46%) Plus500 194,650 1,486 0.80

United Kingdom 92.61% (31.3.19 - 97.37%) Oil & Gas 8.78% (31.3.19 - 8.52%) BP 2,093,103 10,792 5.82 Royal Dutch Shell ‘A’ (UK Regd.) 230,477 5,495 2.96

Industrials 13.17% (31.3.19 - 13.82%) Babcock International 591,806 3,296 1.78 Breedon 5,419,342 3,523 1.90 Capita 3,829,571 5,547 2.99 Eddie Stobart Logistics 3,750,000 2,396 1.29 Equiniti 1,382,126 2,991 1.61 G4S 1,629,172 3,082 1.66 HomeServe 304,368 3,610 1.94

Consumer Goods 10.80% (31.3.19 - 11.36%) British American Tobacco 351,112 10,560 5.69 Countryside Properties 10,567 35 0.02 Imperial Brands 228,713 4,181 2.25 McBride 2,513,684 1,342 0.72 Nexeon 1 19,636 173 0.09 Victoria 806,855 3,760 2.03

Health Care 2.02% (31.3.19 - 3.47%) Oxford Genetics ‘C’ 1 11,731 3,754 2.02

Consumer Services 9.49% (31.3.19 - 9.18%) easyJet 357,084 4,107 2.21 International Consolidated Airlines (UK Regd.) 218,160 1,036 0.56 Mirada 92 – 0.00 Next 108,364 6,703 3.61 Tesco 2,390,549 5,761 3.11

Telecommunications 2.51% (31.3.19 - 3.01%) BT 1,780,606 3,180 1.71 TalkTalk Telecom 1,406,737 1,477 0.80

Utilities 1.47% (31.3.19 - 1.72%) Drax 987,937 2,723 1.47

Financials 44.37% (31.3.19 - 46.29%) Amigo 1,171,646 785 0.42 Aviva 621,634 2,482 1.34 Beazley 573,692 3,568 1.92 British Land 862,550 5,043 2.72 Burford Capital 427,431 3,518 1.90 Chesnara 990,262 2,763 1.49

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Invesco UK Strategic Income Fund (UK) Investment report for the period

Portfolio Statement continued Holding or Percentage as at 30 September 2019 nominal Market of total value of value net assets Investment positions £’000 % Financials continued CLS 1,277,263 3,021 1.63 Derwent London 150,086 5,058 2.72 Eurovestech 1 550,537 35 0.02 Hadrians Wall Secured Investments Fund 4,342,567 3,257 1.75 Hiscox 151,140 2,509 1.35 IP 5,580,558 3,555 1.91 Legal & General 2,115,185 5,254 2.83 Marwyn Value Investors 4,303,782 5,380 2.90 NewRiver REIT 1,963,503 3,817 2.06 Oakley Capital Investments 972,359 2,178 1.17 P2P Global Investments 328,996 2,658 1.43 Phoenix Spree Deutschland 1,271,636 3,853 2.08 Provident Financial 845,195 3,440 1.85 Randall & Quilter Investment 2,459,085 4,476 2.41 Real Estate Investors 10,411,246 5,414 2.92 Royal Bank of Scotland 1,303,134 2,705 1.46 Urban Exposure 4,776,739 3,344 1.80 Zegona Communications 4,568,857 4,249 2.29

United States 5.24% (31.3.19 - 2.40%) Basic Materials Nil (31.3.19 - 0.00%)

Industrial 1.42% (31.3.19 - 0.45%) HawkEye 360 1 464,468 2,642 1.42

Health Care 3.82% (31.3.19 - 1.95%) Ecoeos 1 1,190,476 – 0.00 Ecoeos warrants 16/5/2023 1 593,928 – 0.00 Jaguar Health 25,604 27 0.02 Jaguar Health - Tranche A Convertible Contingent rights 1 740,281 – 0.00 Jaguar Health - Tranche B Convertible Contingent rights 1 1,578,372 – 0.00 Jaguar Health indemnity shares 1 305,182 – 0.00 Lombard Medical 1 1,371,382 4 0.00 PureTech Health 2,811,612 7,057 3.80

Portfolio of investments (31.3.19 - 100.23%) 186,706 100.59 Net other liabilities (31.3.19 - (0.23%)) (1,095) (0.59) Net assets 185,611 100.00

Unless otherwise stated, all holdings are on an official stock exchange listing or are permitted collective investment schemes.

1 Unquoted securities - for the period ended 30 September 2019 these amount to 3.55% (31 March 2019 — 2.01%) of the Net Asset Value of the Fund.

Portfolio Statement Breakdown Percentage Percentage as at 30 September 2019 Market of total Market of total value net assets value net assets 30.9.19 30.9.19 31.3.19 31.3.19 £’000 % £’000 % Quoted securities 180,098 97.04 249,958 98.22 Unquoted securities 1 6,608 3.55 5,124 2.01 Portfolio of investments 186,706 100.59 255,082 100.23 Net other liabilities (1,095) (0.59) (585) (0.23) Net assets 185,611 100.00 254,497 100.00

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Invesco UK Strategic Income Fund (UK) Investment report for the period

Summary of Material Portfolio Changes for the period 1 April 2019 to 30 September 2019 Cost £’000 Total purchases 6,877 Purchases: Denmark Novo Nordisk ‘B’ 1,333 France Total 2,458 Israel Plus500 251 United Kingdom International Consolidated Airlines (UK Regd.) 972 Royal Bank of Scotland 888 Tesco 435 British American Tobacco 229 easyJet 207 Amigo 74 Countryside Properties 30

Proceeds £’000 Total sales 66,052 Largest sales: United Kingdom BCA Marketplace 7,017 BP 2,946 Next 2,924 NewRiver REIT 2,840 Whitbread 2,598 Allergy Therapeutics 2,579 Real Estate Investors 2,210 Aviva 2,198 Silence Therapeutics 2,188 British American Tobacco 2,150 Randall & Quilter Investment 2,124 Legal & General 1,985 Horizon Discovery 1,934 P2P Global Investments 1,737 HomeServe 1,691 Talktalk Telecom 1,633 Hiscox 1,483 Funding Circle SME Income Fund 1,483 Oakley Capital Investments 1,418 CLS 1,399

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Invesco UK Strategic Income Fund (UK) Unaudited financial statements

Unaudited Statement of Total Return 01.4.19 01.4.18 for the period 1 April 2019 to 30 September 2019 to 30.9.19 to 30.9.18 £’000 £’000 £’000 £’000 Income Net capital (losses)/gains (9,214) 17,726 Revenue 5,529 7,653 Expenses (1,124) (2,212) Interest payable and similar charges (2) (5) Net revenue before taxation 4,403 5,436 Taxation (35) (24) Net revenue after taxation 4,368 5,412 Total return before distributions (4,846) 23,138 Distributions (5,381) (7,493) Change in net assets attributable to Shareholders from investment activities (10,227) 15,645

Unaudited Statement of Change i n Net Assets Attributable to Shareholders 01.4.19 01.4.18 for the period 1 April 2019 to 30 September 2019 to 30.9.19 to 30.9.18 £’000 £’000 £’000 £’000 Opening net assets attributable to Shareholders 254,497 431,702

Amounts received on issue of shares 1,461 9,072 Amounts paid on redemption of shares (63,601) (90,174) (62,140) (81,102)

Dilution adjustment 323 520 Change in net assets attributable to Shareholders from investment activities (10,227) 15,645 Retained distribution on accumulation shares 3,157 4,309 Unclaimed distribution monies 1 1 Closing net assets attributable to Shareholders 185,611 371,075

The opening net assets attributable to Shareholders for the current period do not equal the closing net assets attributable to Shareholders for the comparative period as they are not consecutive periods.

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Invesco UK Strategic Income Fund (UK) Unaudited financial statements

Unaudited Balance Sheet 30.9.19 31.3.19 as at 30 September 2019 £’000 £’000 £’000 £’000 Assets Fixed assets Investments 186,706 255,082

Current assets Debtors 653 1,156 Cash and bank balances 1,058 664 Total other assets 1,711 1,820 Total assets 188,417 256,902

Liabilities

Creditors Distribution payable 1,553 1,381 Other creditors 1,253 1,024 Total other liabilities 2,806 2,405 Total liabilities 2,806 2,405 Net assets attributable to Shareholders 185,611 254,497

Accounting Policies The Fund’s accounting policies are set out on page 06.

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Invesco UK Strategic Income Fund (UK) Distributions

Distributions 01.4.19 01.4.18 for the period 1 April 2019 to 30 September 2019 to 30.9.19 to 30.9.18 pence pence per share per share Accumulation shares Payable 30 November 2019 4.2801 3.5382 Accumulation shares (No Trail) Payable 30 November 2019 17.3350 14.2575 Z Accumulation shares Payable 30 November 2019 7.7806 6.3854 Y Accumulation shares Payable 30 November 2019 5.4635 4.4815 Income shares Payable 30 November 2019 2.8209 2.4120 Income shares (No Trail) Payable 30 November 2019 11.4269 9.7203 Z Income shares Payable 30 November 2019 6.2857 5.3344 Y Income shares Payable 30 November 2019 4.5692 3.8764

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Invesco UK 2 Investment Series (the “Company”)

General Information

Directors of the Manager Rachel Court** Judith Eden** Hayley Norford* Graeme Proudfoot (ceased to be a Director 30 June 2019) Andrew Schlossberg (ceased to be a Director 13 May 2019) Douglas Sharp Alan Trotter

* Effective 11 March 2019 Hayley Norford was appointed as a Director of Invesco Fund Managers Limited. ** Effective 11 September 2019 Rachel Court and Judith Eden were appointed as Independent Non-Executive Directors of Invesco Fund Managers Limited

Authorised Corporate Director (the “Manager”) Invesco Fund Managers Limited Registered Office: Perpetual Park, Perpetual Park Drive, Henley-on-Thames, Oxfordshire RG9 1HH, UK Registered in England No. 898166

The Manager’s investment adviser is: Invesco Asset Management Limited, Perpetual Park, Perpetual Park Drive, Henley-on-Thames, Oxfordshire RG9 1HH, UK Registered in England No. 949417

Invesco Asset Management Limited and Invesco Fund Managers Limited are authorised and regulated by the Financial Conduct Authority.

Registrar Invesco Fund Managers Limited Registered Office: Perpetual Park, Perpetual Park Drive, Henley-on-Thames, Oxfordshire RG9 1HH, UK

For registration enquiries please call free on telephone 0800 085 8677 or write to us at: Invesco Administration Centre, PO Box 11150, Chelmsford CM99 2DL, UK

Depositary Citibank Europe plc, UK Branch Citigroup Centre, Canada Square, Canary Wharf, London E14 5LB, UK Authorised by the Prudential Regulation Authority and regulated by the Prudential Regulation Authority and the Financial Conduct Authority.

Independent Auditors PricewaterhouseCoopers LLP Atria One, 144 Morrison Street, Edinburgh, EH3 8EX

42 Invesco UK 2 Investment Series 06 Back Cover_Layout 1 22-Nov-19 10:02 AM Page 43

Further information

General enquiries Client Services Team 0800 085 8677 International calls +44 (0)1491 417000

Lines are open 8.30am to 6pm, Monday to Friday, excluding UK Bank Holidays.

www.invesco.co.uk [email protected]

Fax 01491 416000

Post: Invesco Administration Centre, PO Box 11150, Chelmsford CM99 2DL, UK

All instructions for investment and other correspondence relating to your account should be sent to this address. If you do not use this address, instructions for investment will be returned to you and our response to other correspondence may be delayed.

To invest ICVC Dealing Line 0800 085 8571*

*The initial investment into an ICVC account must be made by completing and signing an application form; subsequent investments into the account can be made by post or via the telephone dealing line.

Clients must confirm that they have been provided with the most up to date relevant Fund and share class specific Key Investor Information Document(s) prior to investing.

Telephone conversations of all dealers, staff and those of clients on our Dealing Lines will be recorded for mutual protection.

Valuations Automated Valuation Service 0800 028 4050. Lines are open 24 hours a day.

Online Valuation Service. Available to UK residents and their financial advisers only. To register for this service please go to www.invesco.co.uk

Further information on our products, including the most up to date relevant Fund and share class specific Key Investor Information Document(s) and the Supplementary Information Document, is available using the contact details as set out in the section “General Enquiries” above.

The Prospectus, which contains a written statement of the terms and conditions of the Company, can be obtained from the Manager, as can copies of Interim and Annual Reports. Please call our Client Services Team Line on 0800 085 8677 or log onto our website (www.invesco.co.uk).

Telephone conversations of all staff and those of clients may be recorded for mutual protection.

Issued by Invesco Fund Managers Limited Invesco Fund Managers Limited is authorised and regulated by the Financial Conduct Authority FCA Registered No. 119298 Registered in England No. 898166 Registered address: Perpetual Park, Perpetual Park Drive, Henley-on-Thames, Oxfordshire RG9 1HH, UK

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