Invesco Funds Series 4 Interim Report (Unaudited) For the six months ended 31 May 2014 Invesco Continental European Small Cap Equity Fund 01 Investment Policy and Description of Series 03 Price and Income Record 02 Investment Adviser’s Report on behalf of the Manager 04-06 Portfolio Statement 03 Performance Record 07 Changes in the Composition of the Portfolio Invesco Global Small Cap Equity Fund 01 Investment Policy and Description of Series 09 Price and Income Record 08 Investment Adviser’s Report on behalf of the Manager 10-18 Portfolio Statement 09 Performance Record 19 Changes in the Composition of the Portfolio 20 Balance Sheet 31 May 2014 27 Statement of Changes in Net Assets attributable to holders of 21 Balance Sheet 30 November 2013 Redeemable Participating Shares 30 November 2013 28 Statement of Changes in Net Assets attributable to holders of 22 Balance Sheet 31 May 2013 Redeemable Participating Shares 31 May 2013 23 Income Statement 31 May 2014 29-34 Notes to the Financial Statements 24 Income Statement 30 November 2013 35 Statement of the Manager’s and Trustee’s Responsibilities 25 Income Statement 31 May 2013 36 General Information 26 Statement of Changes in Net Assets attributable to holders of Redeemable Participating Shares 31 May 2014 Invesco Funds Series 4 Investment Policy and Description of Series Investment Objectives and Policies Invesco Continental European Small Cap Equity Fund (the “Fund”) aims to Any investment in the Funds should be considered long-term. There can be achieve long-term capital growth by investing in small companies no guarantee that the amounts subscribed for will be ultimately realised. throughout Europe, but excluding the United Kingdom. The Investment Changes in rates of exchange between currencies may cause the value of an Adviser will seek to meet this investment objective by investing primarily in investment in the Funds of the Series to diminish or increase. Investors listed equity and equity related securities of smaller companies in European should be aware that a more concentrated approach is taken than is markets (including warrants and convertible securities: however no more normally the case to take greater advantage of successful investments than 10% of the net asset value of the Fund may be invested in warrants). involving a greater than usual degree of risk. Investors should be aware that Europe includes countries in the European Union, Switzerland, Scandinavia, there can be no assurance that the Fund's investment will be successful or Bulgaria, Romania, Croatia, Turkey and the Commonwealth of Independent that the investment objective described will be attained. States. Please note that with effect from 31 May 2013 the functional currency of the fund changed to Euro. This report to Shareholders does not constitute an offer or invitation to purchase Shares in any of the Funds. Invesco Global Small Cap Equity Fund (the “Fund”) aims to achieve long- term capital growth through a portfolio of investments in international An updated Invesco Consolidated Prospectus was issued on 20 August securities. The Investment Adviser intends to invest primarily in equity and 2013. This contains all current and relevant information (as at the date of equity related securities of smaller companies, which are quoted on the issue) regarding the Series and other Funds within the Invesco Funds Series world’s stock markets. In pursuing this objective the Investment Adviser 1, 2, 3, 4, 5, 6 and the Fund Series. This report to Shareholders has been may include other investments that are considered appropriate which may prepared on the basis of the Prospectus. If you wish to receive a copy of this include equity and equity related securities in large companies, Shares in Prospectus please contact any Invesco office. collective investment schemes, warrants and other investments permitted by the investment restrictions. No more than 10% of the net asset value of Charges the Fund will be invested in warrants. Annual Annual Annual Annual Description of the Fund Launch Date Management Distributor Administration Trustee Invesco Funds Series 4 (the “Series”) is a multi-portfolio Irish unit trust Share Fee Fee Fee Fee comprising Invesco Continental European Small Cap Equity Fund and Actual Max Invesco Global Small Cap Equity Fund (the “Funds”). The Series is % % % % authorised by the Central Bank of Ireland as a UCITS under the European Invesco Continental European Small Cap Equity A Shares 01/10/1984 2.00 - 0.30 0.0075 Communities (Undertakings for Collective Investment in Transferable AA B Shares 03/08/2001 2.00 1.00 0.30 0.0075 Securities) Regulations 2011 (as amended) and by the Hong Kong AA C Shares 13/01/1993 1.50 - 0.30 0.0075 Securities and Futures Commission (SFC) under the Hong Kong Securities AA Z Shares 21/08/2013 1.00 - 0.30 0.0075 and Futures Ordinance (Cap. 571) and has been recognised by the Financial AA Services Authority in the United Kingdom under Section 264 of the Financial Services and Markets Act 2000 (the “Act”). Invesco Global Small Cap Equity Fund A Shares 01/09/1987 1.50 - 0.40 0.0075 AA The Funds issue Shares to Shareholders. As per the consolidated A (Acc- HKD) A prospectus, these shares are referred to as "Shares" and the shareholder is Shares 07/07/2011 1.50 - 0.40 0.0075 referred to as the "Shareholder" throughout these financial statements. A (CHF-HGD) Shares 18/09/2013 1.50 - 0.40 0.0075 A B Shares 03/08/2001 1.50 1.00 0.30 0.0075 Each Fund is a fund in the Invesco range of funds managed by Invesco AA C Shares 05/11/1996 1.00 - 0.30 0.0075 Global Asset Management Limited, (the “Manager”). Invesco Global Asset AA Management Limited is an indirect wholly-owned subsidiary of Invesco Ltd. C (CHF-HGD) Shares 18/09/2013 1.00 - 0.30 0.0075 A Z Shares 21/08/2013 0.75 - 0.40 0.0075 Each Fund is approved by the Central Bank of Ireland. Each Fund is also AA approved by the SFC. In giving authorisation for the Fund the SFC does not Z (Acc-EUR) Shares 21/08/2013 0.75 - 0.40 0.0075 take responsibility for the financial soundness of the Fund nor for the A correctness of any statements made or opinions expressed in this regard. Distribution Frequency = Accumulating The contents of this report, for which the Directors of the Manager are A = Annual responsible, have been approved by Invesco Global Asset Management AA Limited, which is regulated by the Central Bank of Ireland. The Manager's fee is based on the daily net asset value of each Fund and is The Funds are not registered under the United States Investment Company paid monthly. The Manager will also be paid a fee in respect of its duties as Act of 1940 (as amended) and its Shares have not been registered under Administrator and Registrar for each Fund. The Administration fee will be the United States Securities Act of 1933 (as amended). calculated daily and will be paid monthly on the last Business Day of each month at the rates set out above, based on the net asset value of each share Accordingly, Shares may not be offered, sold or delivered in the United class of each Fund on each Business Day. The charges are deductible from States or to US Persons as defined in the current Prospectus of the Series, the income of each Fund or from capital in the event of an income shortfall. (the “Prospectus”). The Trustee will be paid a fee calculated on a sliding scale to a maximum rate Share prices are available through the Invesco internet site of 0.0075% per annum of the net asset value of each class of each Share of www.invesco.com (for Shareholders in Hong Kong please refer to the Fund on the last business day of the month and paid monthly. www.invesco.com.hk) and, if required by local law or regulation, published in local leading financial newspapers including, in the case of Hong Kong, The assets of a Fund are exclusively available to satisfy the rights of the Hong Kong Economic Times, the South China Morning Post and the Shareholders in relation to that Fund and the rights of creditors whose Hong Kong Economic Journal. Share prices are currently also available claims have arisen in connection with the creation, operation or liquidation of from Reuters and Bloomberg. that Fund. 01 Invesco Funds Series 4 Invesco Continental European Small Cap Equity Fund Investment Adviser’s Report on behalf of the Manager Upward progress displayed by European equity markets in 2013 continued Our strategy rests on a twin track approach, underpinned by our emphasis into 2014, driven by a modest return to growth and an improving on valuation. The ‘core’ portfolio is invested in companies with, in our view, macroeconomic environment during the first five months of the year. The high and sustainable returns on capital employed. This is supplemented by a strong rally was particularly sustained in periphery markets, with equity ‘special situations’ category to exploit valuation opportunities. indices in Spain and Italy both posting double digit total returns for the 6 months ending 31 May 2014. However, with inflation in the eurozone Over the last six months, we have increased our exposure to some high remaining well below its targeted 2%, deflationary fears continue to be quality, attractively valued companies, with good growth prospect either present. This prompted the European Central Bank (ECB) to take bold organically or by M&A (examples include a Danish transport company and measures on June 5 - decreasing the Main Financing Rate from 0.25% to European long-term care provider).