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Invesco V.I. Government Securities FundAnnual Report to Shareholders • December 31, 2010

The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth quarters, the lists appear in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q. The Fund’s Form N-Q filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: [email protected]. The SEC file numbers for the Fund are 811-07452 and 033-57340. The Fund’s most recent portfolio holdings, as filed on Form N-Q, have also been made available to insurance companies issuing variable annuity contracts and variable life insurance policies (“variable products”) that invest in the Fund.

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246 or on the Invesco website, invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.

Information regarding how the Fund voted proxies related to its portfolio securities during the 12 months ended June 30, 2010, is available at our website, invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the U.S. distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.

This report must be accompanied or preceded by a currently effective Fund prospectus and variable product prospectus, which contain more complete information, including sales charges and expenses. Investors should read each carefully before investing.

Invesco Distributors, Inc.

VIGOV-AR-1

Invesco V.I. Government Securities Fund

How we investWe invest primarily in debt securities issued, guaranteed or backed by the U.S. government or its agencies and instru-mentalities. These securities include: U.S. Treasury notes and bonds, U.S. agency debentures and agency-backed mort-gage-backed securities (MBS). The Fund may invest in derivative instruments such as interest rate futures contracts and swap agreements and engage in mort-gage dollar roll transactions, a form of repurchase agreement activity in the to-be-announced (TBA) market for agency mortgage-backed securities.

Our security selection is supported by a team of independent specialists. Team members conduct top-down macroeco-nomic as well as bottom-up analysis on individual securities. Recommendations are communicated to portfolio managers through proprietary technology that allows all investment professionals to communicate in a timely manner.

Portfolio construction begins with a well-defi ned Fund design that establishes

the target investment vehicles for generating the desired “alpha” (the extra return above a specifi c benchmark) as well as the risk parameters for the Fund. Investment vehicles are evaluated for liquidity and relative value.

Sell decisions are based on:• A conscious decision to alter the

Fund’s macro risk exposure (such as duration, yield curve positioning, sector exposure).

• The need to limit or reduce exposure to a particular sector or issuer.

• Degradation of an issuer’s credit quality.

• Realignment of a valuation target.• Presentation of a better relative value

opportunity.

Market conditions and your FundIn the U.S. and much of the developed world, a gradual and somewhat lackluster recovery continued during 2010, with central banks keeping interest rates at low levels and with few of them withdraw-ing their quantitative easing measures.

This helped private sector companies improve their balance sheets and earnings following the global fi nancial crisis that began to dissipate in early 2009. However, investor skepticism of global governments’ abilities to retire huge amounts of debt without affecting economic growth rates caused sovereign debt distress (especially for eurozone countries) and became a focal point of investor concern.

In the U.S., economic recovery was present, although the pace remained modest as stubbornly high unemploy-ment and housing sector weakness continued to weigh on the economy. Real gross domestic product (GDP), the broadest measure of overall U.S. eco-nomic activity, increased at an annual rate of 3.7%, 1.7% and 2.6% for the fi rst, second and third quarters of 2010, respectively.1 The U.S. Federal Reserve (the Fed) maintained a very accommoda-tive monetary policy throughout the period, with the federal funds target rate unchanged in its range of zero to 0.25%.2 The Fed recently described its view of the U.S. economy by stating: “The Committee anticipates a gradual return to higher levels of resource utilization in a context of price stability, although the pace of economic recovery is likely to be more modest in the near term than had been anticipated.”2

U.S. Treasury yields for securities with maturities of two to 30 years ended the year lower than at the start, indicative of positive 12-month returns across government bond sectors.3 Treasuries performed well for the year despite a signifi cant rise in yields for intermediate and longer maturity securities during the fi nal three months of 2010, driven by rising infl ation expectations and improv-ing economic data. The broader U.S. investment grade bond market, as

The Fund’s holdings are subject to change, and there is no assurance that the Fund will continue to hold any particular security.*Excluding money market fund holdings.

Portfolio CompositionBy Investment type

U.S. Government Sponsored Mortgage-Backed Securities 70.2%U.S. Government Sponsored Agency Securities 21.2U.S. Treasury Securities 8.6U.S. Dollar Denominated Bonds & Notes 0.4Money Market Funds Plus Other Assets Less Liabilities (0.4)

Top 10 Fixed Income Issuers*

1. Federal National Mortgage Association 18.6%

2. Freddie Mac REMICs 16.9 3. Ginnie Mae REMICs 11.6 4. Federal Home Loan Bank 10.0 5. Federal Agriculture Mortgage Corp. 9.3 6. U.S. Treasury Notes 7.8 7. Federal Home Loan Mortgage Corp. 7.1 8. Fannie Mae REMICs 5.3 9. Government National

Mortgage Association 4.8 10. Federal Farm Credit Bank 4.6

Performance summaryFor the year ended December 31, 2010, Invesco V.I. Government Securities Fund underperformed its style-specifi c and broad market indexes. Duration positioning within the Fund contributed to slight underperformance relative to our style-specifi c benchmark. The Fund’s underperformance of its broad market index can be attrib-uted to the Fund’s government securities-only mandate during a period when non-government securities outperformed.

Your Fund’s long-term performance appears later in this report.

Fund vs. IndexesTotal returns, 12/31/09 to 12/31/10, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares 5.40%Series II Shares 5.10Barclays Capital U.S. Aggregate Index▼ (Broad Market Index) 6.54Barclays Capital U.S. Government Index▼ (Style-Specifi c Index) 5.52Lipper VUF General U.S. Government Funds Index▼ (Peer Group Index) 6.07▼Lipper Inc.

Management’s Discussion of Fund Performance

Total Net Assets $1.1 billion

Total Number of Holdings* 818


measured by the Barclays Capital U.S. Aggregate Index, also generated positive total return for the 12 months ended December 31, 2010. Slow economic growth, the avoidance of a double-dip recession, a recovery in corporate fi nancial health, strong infl ows into credit-related asset classes and low overall interest rates supported the performance of bonds, especially non-government sectors.

In this environment, the Fund gener-ated positive returns, but slightly underperformed its style-specifi c index, the Barclays Capital U.S. Government Index, for the year. Within the Fund, allocation decisions that favored the yield advantage and price stability of short average life agency MBS, collateralized mortgage obligations (CMOs) and higher coupon agency pass-through MBS slightly benefi ted performance versus the style-specifi c index, and contributed to a higher-than-index average yield-to-maturity for the period.

To accommodate the emphasis on agency CMO and MBS, the Fund main-tained an underweight allocation in lower yielding fi xed-rate, fi xed-maturity U.S. Treasuries. The Fund also benefi ted from incremental income earned by engaging in dollar (mortgage) roll activity, a type of repurchase transaction in the highly liquid TBA market for agency MBS. A dollar roll involves the Fund selling an MBS to a fi nancial institution, with an agreement to repurchase a substantially similar security at an agreed upon price and date. Cash proceeds from the sale may be invested in short-term instru-ments, and the income from these investments, together with any additional fee income received on the sale, generate income for the Fund.

The Fund also can use active duration and yield curve positioning for risk management and for generating alpha versus its style-specifi c benchmark. Duration measures a portfolio’s price sensitivity to interest rate changes, with a shorter duration portfolio tending to be less sensitive to these changes. The contribution to performance from duration positioning versus the style-specifi c benchmark was mixed over the period, but overall it had a negative effect. On average, we maintained duration positioning close to neutral versus the style-specifi c benchmark for the year, but the timing and magnitude of tactical changes were detrimental to relative returns. We were slightly shorter in duration than the style-specifi c index

for much of the fi rst three quarters of the year when interest rates trended lower. This prevented us from fully participating in the rally as longer duration asset class prices rose. Likewise, a sustained longer-than-style-specifi c-index duration positioning during the fourth quarter of 2010 was also detrimental to perfor-mance as interest rates rose.

Yield curve positioning during the third and fourth quarters, when the portfolio held a greater quantity of longer duration securities than the index, also had a slight negative effect on performance. U.S. Treasury note futures contracts were an important tool used in the management of our targeted portfolio duration.

We thank you for your investment in Invesco V.I. Government Securities Fund

1 Bureau of Economic Analysis2 U.S. Federal Reserve 3 Barclays Capital

The views and opinions expressed in management’s discussion of Fund performance are those of Invesco Advisers, Inc. These views and opinions are subject to change at any time based on factors such as market and economic conditions. These views and opinions may not be relied upon as investment advice or recommendations, or as an offer for a particular security. The information is not a complete analysis of every aspect of any market, country, industry, security or the Fund. Statements of fact are from sources considered reliable, but Invesco Advisers, Inc. makes no representation or warranty as to their completeness or accuracy. Although historical performance is no guarantee of future results, these insights may help you understand our investment management philosophy.

See important Fund and, if applicable, index disclosures later in this report.

Clint Dudley Chartered Financial Analyst, portfolio man-ager, is manager of Invesco V.I. Government Securities Fund. He joined

Invesco in 1998. Mr. Dudley earned a B.B.A. and an M.B.A. from Baylor University. He is a member of the CFA Institute.

Brian Schneider Chartered Financial Analyst, senior portfolio manager, is manager of Invesco V.I. Government Securities Fund. He joined

Invesco in 1987. Mr. Schneider earned a B.A. in economics and an M.B.A., both from Bellarmine College.


Your Fund’s Long-Term Performance

Past performance cannot guarantee comparable future results.

This chart, which is a logarithmic chart, presents the fluctuations in the value of the Fund and its indexes. We believe that a logarithmic chart is more effective than other types of charts in illustrating

changes in value during the early years shown in the chart. The vertical axis, the one that indicates the dollar value of an investment, is constructed with each seg-ment representing a percent change in the value of the investment. In this chart, each segment represents a doubling, or

100% change, in the value of the investment. In other words, the space between $5,000 and $10,000 is the same size as the space between $10,000 and $20,000, and so on.

4/30/93 12/98 12/02 12/06 12/10

5,000

10,000

20,000

$40,000

Results of a $10,000 Investment — Oldest Share Class since InceptionIndex data from 4/30/93, Fund data from 5/5/93

$29,025 Barclays Capital U.S. Aggregate Index1

$27,896 Barclays Capital U.S. Government Index1

$26,174 Lipper VUF General U.S. Government Funds Index1

$23,901 Invesco V.I. Government Securities Fund- Series I Shares

1 Lipper Inc.

Average Annual Total ReturnsAs of 12/31/10

Series I SharesInception (5/5/93) 5.06% 10 Years 4.82 5 Years 5.44 1 Year 5.40

Series II Shares 10 Years 4.55% 5 Years 5.17 1 Year 5.10

Series II shares incepted on September 19, 2001. Performance shown prior to that date is that of Series I shares, restated to reflect the higher 12b-1 fees applicable to Series II. Series I performance reflects any applicable fee waivers or expense reimbursements. The performance of the Fund’s Series I and Series II share classes will differ primarily due to different class expenses.

The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please contact your

variable product issuer or financial adviser for the most recent month-end variable product performance. Perfor-mance figures reflect Fund expenses, reinvested distributions and changes in net asset value. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

The net annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Series I and Series II shares was 0.73% and 0.98%, respec-tively.1 The total annual Fund operat-ing expense ratio set forth in the most recent Fund prospectus as of the date of this report for Series I and Series II shares was 0.75% and 1.00%, respec-tively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

Invesco V.I. Government Securities Fund, a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), is currently offered

through insurance companies issuing variable products. You cannot pur-chase shares of the Fund directly. Performance figures given represent the Fund and are not intended to reflect actual variable product values. They do not reflect sales charges, expenses and fees assessed in connection with a variable product. Sales charges, expenses and fees, which are deter-mined by the variable product issuers, will vary and will lower the total return.

The most recent month-end perfor-mance data at the Fund level, excluding variable product charges, is available at 800 451 4246. As mentioned above, for the most recent month-end perfor-mance including variable product charges, please contact your variable product issuer or financial adviser.

1 Total annual Fund operating expenses after any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least April 30, 2012. See current prospectus for more information.


Invesco V.I. Government Securities Fund’s investment objective is total return, comprised of current income and capital appreciation.• Unless otherwise stated, information presented in this report is as of December 31, 2010, and is based on total net assets. • Unless otherwise noted, all data provided by Invesco.• To access your Fund’s reports/prospectus, visit invesco.com/fundreports.

Principal risks of investing in the FundThe prices of and the income generated by the Fund’s securities may decline in response to, among other things, investor sentiment; general economic and market conditions; regional or global instability; and currency and interest rate fl uctuations.

Interest rate risk refers to the risk that bond prices generally fall as interest rates rise and vice versa.

Reinvestment risk is the risk that a bond’s cash fl ows (coupon income and principal repayment) will be reinvested at an interest rate below that on the original bond.

The Fund may invest in obligations issued by U.S. government agencies and instrumentalities that may receive varying levels of support from the government, which could affect the Fund’s ability to recover should they default.

The Fund may invest in mortgage and asset-backed securities that are subject to prepayment or call risk, which is the risk that the borrower’s payments may be received earlier or later than expected due to changes in prepayment rates on underlying loans. Securities may be prepaid at a price less than the original purchase value.

The Fund may use enhanced invest-ment techniques such as derivatives. The principal risk of derivatives is that the fl uctuations in their values may not correlate perfectly with the overall securi-ties markets. Derivatives are subject to counterparty risk — the risk that the other party will not complete the transaction with the Fund.

Leveraging entails risks such as magnifying changes in the value of the portfolio’s securities.

Reverse repurchase agreements involve the risk that the market value of securities to be repurchased may decline below the repurchase price or that the other party may default on its obligation, resulting in delays, additional costs or the restriction of proceeds from the sale.

Dollar roll transactions involve the risk that the market value and yield of the securities retained by the Fund may decline below the price of the mortgage-related securities sold by the Fund that it is obligated to repurchase.

The Fund may invest a large percentage of its assets in a limited number of securi-ties or other instruments, which could negatively affect the value of the Fund.

The investment techniques and risk analysis used by the Fund’s portfolio managers may not produce the desired results.

About indexes used in this report The Barclays Capital U.S. Aggregate Index is an unmanaged index considered representative of the U.S. investment-grade, fi xed-rate bond market.

The Barclays Capital U.S. Government Index is an unmanaged index considered representative of fi xed-income obligations issued by the U.S. Treasury, government agencies and quasi-federal corporations.

The Lipper VUF General U.S. Government Funds Index is an unmanaged index considered representa-tive of general U.S. government variable insurance underlying funds tracked by Lipper.

The Fund is not managed to track the performance of any particular index, including the index(es) defi ned here, and consequently, the performance of the Fund may deviate signifi cantly from the performance of the index(es).

A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested divi-dends, and they do not refl ect sales charges. Performance of the peer group, if applicable, refl ects fund expenses; performance of a market index does not.

Other informationThe Chartered Financial Analyst® (CFA®) designation is globally recognized and attests to a charterholder’s success in a rigorous and comprehensive study program in the fi eld of investment management and research analysis.

The returns shown in management’s discussion of Fund performance are based on net asset values calculated for share-holder transactions. Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end for fi nancial reporting purpos-es, and as such, the net asset values for shareholder transactions and the returns based on those net asset values may differ from the net asset values and returns reported in the Financial Highlights. Additionally, the returns and net asset values shown throughout this report are at the Fund level only and do not include variable product issuer charges. If such charges were included, the total returns would be lower.

Schedule of InvestmentsDecember 31, 2010

PrincipalAmount Value

U.S. Government Sponsored Agency Mortgage-Backed Securities–70.23%

Collateralized Mortgage Obligations–41.96%

Fannie Mae Grantor Trust, 5.34%,04/25/12 $ 4,500,000 $ 4,764,387

Fannie Mae REMICs,4.00%, 09/25/16 to 02/25/40 8,814,570 9,184,159

4.50%, 11/25/16 to 10/25/22 13,990,343 14,648,507

5.00%, 02/25/17 to 05/25/30 12,025,943 12,315,476

5.50%, 01/25/26 to 03/25/28 2,181,134 2,197,201

3.50%, 12/25/31 4,453,161 4,656,581

4.25%, 06/25/33 783,010 798,475

6.00%, 10/25/33 1,781,119 1,794,306

0.56%, 05/25/36(a) 12,079,349 12,103,517

Fannie Mae Whole Loans, 5.50%,07/25/34 1,555,689 1,560,308

Federal Home Loan Bank,4.55%, 04/27/12 1,213,763 1,266,945

5.27%, 12/28/12 14,065,573 14,904,525

5.46%, 11/27/15 40,540,143 44,094,970

Freddie Mac REMICs,6.75%, 06/15/11 6,380 6,426

5.25%, 08/15/11 to 08/15/32 12,482,755 13,133,339

5.38%, 08/15/11 to 09/15/11 3,452,915 3,514,856

3.88%, 12/15/12 430,945 437,930

4.50%, 12/15/15 to 04/15/30 18,019,196 18,498,441

6.00%, 09/15/16 to 09/15/29 11,410,198 11,594,768

3.50%, 10/15/16 to 12/15/27 5,568,450 5,710,674

4.00%, 11/15/16 to 02/15/30 31,515,026 33,029,585

5.00%, 05/15/18 to 03/15/31 14,209,186 14,583,169

3.75%, 10/15/18 7,092,075 7,385,698

4.75%, 05/15/23 4,419,274 4,567,664

5.50%, 01/15/27 to 09/15/30 16,516,933 16,899,780

0.66%, 04/15/28 5,674,016 5,709,935

0.56%, 03/15/36(a) 12,371,937 12,400,374

0.61%, 11/15/36(a) 15,255,783 15,264,940

0.66%, 06/15/37(a) 14,455,985 14,506,812

1.12%, 11/15/39(a) 7,564,515 7,678,963


Collateralized Mortgage Obligations–(continued)

Ginnie Mae REMICs,3.13%, 04/16/16 $ 2,896,514 $ 2,920,336

2.17%, 02/16/24 21,772,657 21,917,676

5.00%, 09/16/27 to 02/20/30 7,827,594 7,986,643

4.21%, 01/16/28 4,606,622 4,693,870

4.50%, 01/20/31 to 08/20/35 52,863,317 55,521,155

5.50%, 04/16/31 3,815,756 3,905,239

5.77%, 08/20/34(a) 3,656,659 4,006,375

4.00%, 03/20/36 to 02/20/38 25,286,914 26,601,263

La Hipotecaria S.A., Series 2010-1 GA, Class A,Floating Rate Pass Through Ctfs.3.75%, 09/08/39(a)(b) 22,996,617 23,341,566

460,106,834

Federal Home Loan Mortgage Corp.(FHLMC)–6.10%

Pass Through Ctfs.,7.00%, 05/01/11 to 12/01/37 15,280,466 17,471,791

6.50%, 10/01/12 to 12/01/35 6,680,421 7,417,178

6.00%, 09/01/13 to 02/01/34 4,292,012 4,695,785

8.00%, 07/01/15 to 09/01/36 12,988,521 15,273,706

7.50%, 03/01/16 to 08/01/36 5,039,249 5,717,643

5.00%, 07/01/18 1,859,467 1,978,125

10.50%, 08/01/19 5,025 5,713

4.50%, 09/01/20 9,288,976 9,791,742

8.50%, 09/01/20 to 08/01/31 923,917 1,089,405

10.00%, 03/01/21 70,968 81,095

9.00%, 06/01/21 to 06/01/22 573,548 649,351

7.05%, 05/20/27 347,541 393,552

6.03%, 10/20/30 2,107,683 2,355,276

66,920,362

See accompanying Notes to Financial Statements which are an integral part of the financial statements.



Federal National Mortgage Association(FNMA)–17.41%

Pass Through Ctfs.,7.00%, 07/01/11 to 06/01/36 $22,806,847 $ 25,428,797

7.50%, 08/01/11 to 07/01/37 16,033,480 18,432,304

8.00%, 06/01/12 to 11/01/37 13,853,001 15,945,731

8.50%, 06/01/12 to 08/01/37 5,398,104 6,281,684

6.50%, 05/01/13 to 11/01/37 14,394,943 15,875,599

10.00%, 09/01/13 12,563 12,748

6.00%, 09/01/17 to 03/01/37 4,686,894 5,129,136

5.00%, 11/01/17 to 12/01/33 24,654,885 26,374,183

4.50%, 09/01/18 to 11/01/21 50,106,604 53,056,940

5.50%, 03/01/21 507 545

6.75%, 07/01/24 1,167,094 1,312,822

6.95%, 10/01/25 to 09/01/26 140,343 159,315

Pass Through Ctfs., TBA,4.00%, 01/01/41(c) 23,000,000 22,885,000

190,894,804

Government National Mortgage Association(GNMA)–4.76%

Pass Through Ctfs.,6.50%, 02/20/12 to 01/15/37 14,108,745 15,983,896

8.00%, 07/15/12 to 01/15/37 4,119,061 4,784,001

6.75%, 08/15/13 32,095 34,134

7.50%, 10/15/14 to 10/15/35 7,072,207 8,206,354

11.00%, 10/15/15 1,872 1,890

9.00%, 10/20/16 to 12/20/16 91,690 102,808

7.00%, 04/15/17 to 01/15/37 6,095,851 6,947,516

10.50%, 09/15/17 to 11/15/19 3,493 3,807

8.50%, 12/15/17 to 01/15/37 891,390 1,004,804

10.00%, 06/15/19 33,375 37,184

6.00%, 09/15/20 to 08/15/33 2,842,556 3,157,634

6.95%, 08/20/25 to 08/20/27 915,099 1,040,707

6.25%, 06/15/27 135,553 151,818

6.38%, 10/20/27 to 09/20/28 754,942 851,776

6.10%, 12/20/33 8,537,431 9,842,501

52,150,830

Total U.S. Government Sponsored AgencyMortgage-Backed Securities(Cost $751,761,404) 770,072,830


U.S. Government Sponsored AgencySecurities–21.21%

Federal Agricultural Mortgage Corp.–9.31%

Notes,2.11%, 03/15/12 $70,000,000 $ 70,884,126

Unsec. Notes,2.20%, 11/09/11 25,000,000 25,266,953

1.25%, 12/06/13 6,000,000 5,951,719

102,102,798

Federal Farm Credit Bank (FFCB)–4.63%

Bonds,3.00%, 09/22/14 12,500,000 13,155,345

1.50%, 11/16/15 11,000,000 10,627,362

5.59%, 10/04/21 10,075,000 10,443,674

5.75%, 01/18/22 2,775,000 2,881,680

Global Bonds,1.38%, 06/25/13 10,000,000 10,105,110

Medium-Term Notes,5.75%, 12/07/28 3,100,000 3,590,065

50,803,236

Federal Home Loan Bank (FHLB)–4.51%

Unsec. Bonds,5.45%, 04/15/11 7,149,101 7,250,214

4.72%, 09/20/12 1,117,309 1,173,456

Unsec. Global Bonds,1.63%, 03/20/13 23,000,000 23,439,543

1.88%, 06/21/13 10,000,000 10,240,139

Series 1, Unsec. Bonds,5.77%, 03/23/18 6,728,759 7,403,586

49,506,938

Federal Home Loan Mortgage Corp.(FHLMC)–1.04%

Unsec. Global Notes,0.63%, 12/28/12 5,000,000 4,994,829

1.75%, 09/10/15 6,500,000 6,398,009

11,392,838

Federal National Mortgage Association(FNMA)–1.22%

Unsec. Global Notes,0.75%, 12/18/13 3,000,000 2,964,819

2.50%, 05/15/14 10,000,000 10,368,877

13,333,696

Tennessee Valley Authority (TVA)–0.50%

Series A, Bonds, 6.79%, 05/23/12 5,000,000 5,430,684

Total U.S. Government Sponsored AgencySecurities (Cost $228,818,913) 232,570,190




U.S. Treasury Securities–8.60%

U.S. Treasury Notes–7.78%

0.75%, 09/15/13 $ 4,500,000 $ 4,485,234

2.38%, 02/28/15 11,000,000 11,333,437

1.25%, 08/31/15 3,000,000 2,917,031

2.75%, 05/31/17 22,000,000 22,268,125

2.38%, 07/31/17 10,000,000 9,865,625

3.13%, 05/15/19(d) 6,000,000 6,060,938

3.50%, 05/15/20 12,000,000 12,290,625

2.63%, 08/15/20 17,000,000 16,115,469

85,336,484

U.S. Treasury Bonds–0.82%

8.75%, 05/15/20 3,500,000 5,092,500

7.63%, 02/15/25(d) 550,000 779,539

6.88%, 08/15/25(d) 500,000 667,969

4.25%, 05/15/39(d) 2,500,000 2,461,719

9,001,727

Total U.S. Treasury Securities(Cost $96,674,979) 94,338,211


Foreign Sovereign Bonds–0.39%

Sovereign Debt–0.39%

Israel Government Agency for InternationalDevelopment (AID) Bond (Israel), Gtd. Bonds,5.13%, 11/01/24 (Cost $3,829,928) $ 3,800,000 $ 4,220,009

Shares

Money Market Funds–1.32%

Government & Agency Portfolio–Institutional Class(Cost $14,437,887)(e) 14,437,887 14,437,887

TOTAL INVESTMENTS–101.75%(Cost $1,095,523,111) 1,115,639,127

OTHER ASSETS LESS LIABILITIES–(1.75)% (19,159,902)

NET ASSETS–100.00% $1,096,479,225

Investment Abbreviations:

Ctfs. – CertificatesGtd. – GuaranteedREMICs – Real Estate Mortgage Investment ConduitsTBA – To Be AnnouncedUnsec. – Unsecured

Notes to Schedule of Investments:(a) Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on December 31, 2010.(b) Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended. The security may be resold pursuant to an exemption

from registration under the 1933 Act, typically to qualified institutional buyers. The value of this security at December 31, 2010 represented 2.13% of the Fund’s Net Assets.(c) Security purchased on forward commitment basis. This security is subject to dollar roll transactions. See Note 1J.(d) All or a portion of the value was pledged as collateral to cover margin requirements for open futures contracts. See Note 1L and Note 4.(e) The money market fund and the Fund are affiliated by having the same investment adviser.



Statement of Assets and LiabilitiesDecember 31, 2010

Assets:

Investments, at value (Cost $1,081,085,224) $1,101,201,240

Investments in affiliated money market funds, at value and cost 14,437,887

Total investments, at value (Cost $1,095,523,111) 1,115,639,127

Receivables for:Variation margin 1,940,484

Fund shares sold 180,525

Dividends and interest 4,346,990

Principal paydowns 248,161

Investment for trustee deferred compensation and retirement plans 53,599

Other assets 381

Total assets 1,122,409,267

Liabilities:

Payable for:Investments purchased 23,267,854

Fund shares reacquired 911,789

Accrued fees to affiliates 1,533,214

Accrued other operating expenses 69,025

Trustee deferred compensation and retirement plans 148,160

Total liabilities 25,930,042

Net assets applicable to shares outstanding $1,096,479,225

Net assets consist of:

Shares of beneficial interest $1,080,930,022

Undistributed net investment income 37,474,465

Undistributed net realized gain (loss) (35,458,737)

Unrealized appreciation 13,533,475

$1,096,479,225

Net Assets:

Series I $1,072,405,372

Series II $ 24,073,853

Shares outstanding, $0.001 par value per share, unlimitednumber of shares authorized:

Series I 89,393,499

Series II 2,019,202

Series I:Net asset value per share $ 12.00

Series II:Net asset value per share $ 11.92

Statement of OperationsFor the year ended December 31, 2010

Investment income:

Interest $32,448,445

Dividends from affiliated money market funds 14,633

Total investment income 32,463,078

Expenses:

Advisory fees 5,517,804

Administrative services fees 3,241,798

Custodian fees 63,904

Distribution fees:Series II 42,253

Transfer agent fees 17,840

Trustees’ and officers’ fees and benefits 48,591

Other 121,224

Total expenses 9,053,414

Less: Fees waived and expense offset arrangement(s) (279,307)

Net expenses 8,774,107

Net investment income 23,688,971

Realized and unrealized gain (loss) from:

Net realized gain from:Investment securities (includes net gains from securities sold to

affiliates of $50,213) 3,058,050

Futures contracts 29,762,028

32,820,078

Change in net unrealized appreciation (depreciation) of:Investment securities (206,441)

Futures contracts 7,512,664

7,306,223

Net realized and unrealized gain 40,126,301

Net increase in net assets resulting from operations $63,815,272



Statement of Changes in Net AssetsFor the years ended December 31, 2010 and 2009

2010 2009

Operations:

Net investment income $ 23,688,971 $ 46,745,306

Net realized gain 32,820,078 6,396,776

Change in net unrealized appreciation (depreciation) 7,306,223 (58,197,138)

Net increase (decrease) in net assets resulting from operations 63,815,272 (5,055,056)

Distributions to shareholders from net investment income:

Series I (54,918,096) (60,184,129)

Series II (859,253) (678,455)

Total distributions from net investment income (55,777,349) (60,862,584)

Distributions to shareholders from net realized gains:

Series I — (43,257,923)

Series II — (522,035)

Total distributions from net realized gains — (43,779,958)

Share transactions–net:

Series I (128,842,349) (290,464,747)

Series II 9,854,940 (4,570,136)

Net increase (decrease) in net assets resulting from share transactions (118,987,409) (295,034,883)

Net increase (decrease) in net assets (110,949,486) (404,732,481)

Net assets:

Beginning of year 1,207,428,711 1,612,161,192

End of year (includes undistributed net investment income of $37,474,465 and $55,633,788, respectively) $1,096,479,225 $1,207,428,711

Notes to Financial StatementsDecember 31, 2010

NOTE 1—Significant Accounting Policies

Invesco V.I. Government Securities Fund (the “Fund”) is a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds (the “Trust”).The Trust is a Delaware statutory trust registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series managementinvestment company consisting of forty-one separate portfolios, (each constituting a “Fund”). The assets, liabilities and operations of each portfolio areaccounted for separately. Information presented in these financial statements pertains only to the Fund. Matters affecting each Fund or class will be voted onexclusively by the shareholders of such Fund or class. Current Securities and Exchange Commission (“SEC”) guidance, however, requires participating insurancecompanies offering separate accounts to vote shares proportionally in accordance with the instructions of the contract owners whose investments are funded byshares of each Fund or class.

The Fund’s investment objective is total return, comprised of current income and capital appreciation.The Fund currently offers two classes of shares, Series I and Series II, both of which are offered to insurance company separate accounts funding variable

annuity contracts and variable life insurance policies (“variable products”).The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.

A. Security Valuations — Securities, including restricted securities, are valued according to the following policy.Debt obligations (including convertible bonds) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service.

Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such asinstitution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate,maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturityare recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involvesome risk of default with respect to interest and/or principal payments.

A security listed or traded on an exchange (except convertible bonds) is valued at its last sales price or official closing price as of the close of thecustomary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the


security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished byindependent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued.Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the meanbetween the last bid and ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by anindependent source at the mean between the last bid and ask prices. For purposes of determining net asset value per share, futures and option contractsgenerally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset valueper share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or officialclosing price as of the close of the customary trading session on the exchange where the security is principally traded.

Foreign securities (including foreign exchange contracts) are converted into U.S. dollar amounts using the applicable exchange rates as of the close ofthe NYSE. If market quotations are available and reliable for foreign exchange traded equity securities, the securities will be valued at the marketquotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. Ifbetween the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that are significant andmake the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the securitywill be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also bebased on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in theprincipal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities meeting the approved degree ofcertainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factorsmay be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sectorindices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange ratechanges, potential for sharply devalued currencies and high inflation, political and economical upheaval, the relative lack of issuer information, relativelylow market liquidity and the potential lack of strict financial and accounting controls and standards.

Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources.The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, includingCorporate Loans.

Securities for which market quotations are not readily available or are unreliable are valued at fair value as determined in good faith by or under thesupervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers andinformation providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.

Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, generaleconomic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in thefinancial statements may materially differ from the value received upon actual sale of those investments.

B. Securities Transactions and Investment Income — Paydown gains and losses on mortgage and asset-backed securities are recorded asadjustments to interest income.

Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or areduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) frominvestment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses)on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, theyreduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported inthe Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investmentincome reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.

The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.C. Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the

investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include thelaws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or moreof its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may beevaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guaranteesand enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be theUnited States of America, unless otherwise noted.

D. Distributions — Distributions from income and net realized capital gain, if any, are generally paid to separate accounts of participating insurancecompanies annually and recorded on ex-dividend date.

E. Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify asa regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject tofederal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision forfederal income taxes is recorded in the financial statements.

The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxingauthorities for up to three years after the filing of the return for the tax period.

F. Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are chargedto the operations of such class. All other expenses are allocated among the classes based on relative net assets.


G. Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United Statesof America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of thefinancial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related totaxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions thatmay occur or become known after the period-end date and before the date the financial statements are released to print.

H. Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified againstcertain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters intocontracts, including the Fund’s servicing agreements that contain a variety of indemnification clauses. The Fund’s maximum exposure under thesearrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss asa result of such indemnification claims is considered remote.

I. Other Risks — The Funds may invest in obligations issued by agencies and instrumentalities of the U.S. Government that may vary in the level ofsupport they receive from the government. The government may choose not to provide financial support to government sponsored agencies orinstrumentalities if it is not legally obligated to do so. In this case, if the issuer defaulted, the underlying fund holding securities of such issuer might notbe able to recover its investment from the U.S. Government. Many securities purchased by the Fund are not guaranteed by the U.S. Government.

J. Dollar Roll and Forward Commitment Transactions — The Fund may engage in dollar roll and forward commitment transactions withrespect to mortgage-backed securities issued by GNMA, FNMA and FHLMC. These transactions are often conducted on a to be announced (“TBA”) basis. Ina TBA mortgage-backed transaction, the seller does not specify the particular securities to be delivered. Rather, a Fund agrees to accept any security thatmeets specified terms, such as an agreed upon issuer, coupon rate and terms of the underlying mortgages. TBA mortgage-backed transactions generallysettle once a month on a specific date.

In a dollar roll transaction, the Fund sells a mortgage-backed security held in the Fund to a financial institution such as a bank or broker-dealer, andsimultaneously agrees to purchase a substantially similar security (same type, coupon and maturity) from the institution at an agreed upon price andfuture date. The mortgage-backed securities to be purchased will bear the same coupon as those sold, but generally will be collateralized by different poolsof mortgages with different prepayment histories. Based on the typical structure of dollar roll transactions by the Fund, the dollar roll transactions areaccounted for as financing transactions in which the Fund receives compensation as either a “fee” or a “drop”. “Fee” income which is agreed uponamongst the parties at the commencement of the dollar roll and the “drop” which is the difference between the selling price and the repurchase price ofthe mortgage-backed securities are amortized to income. During the period between the sale and purchase settlement dates, the Fund will not be entitled toreceive interest and principal payments on securities purchased and not yet settled. Proceeds of the sale may be invested in short-term instruments, and theincome from these investments, together with any additional fee income received on the sale, could generate income for the Fund exceeding the yield onthe security sold. Dollar roll transactions are considered borrowings under the 1940 Act.

Forward commitment transactions involve commitments by the Fund to acquire or sell TBA mortgage-backed securities from/to a financial institution,such as a bank or broker-dealer at a specified future date and amount. The TBA mortgage-backed security is marked to market until settlement and theunrealized appreciation or depreciation is recorded in the statement of operations.

At the time the Fund enters into the dollar roll or forward commitment transaction, mortgage-backed securities or other liquid assets held by the Fundhaving a dollar value equal to the purchase price or in an amount sufficient to honor the forward commitment will be segregated.

Dollar roll transactions involve the risk that the market value of the securities retained by the Fund may decline below the price of the securities thatthe Fund has sold but is obligated to purchase under the agreement. In the event that the buyer of securities in a dollar roll transaction files forbankruptcy or becomes insolvent, the Fund’s use of the proceeds from the sale of the securities may be restricted pending a determination by the otherparty, or its trustee or receiver, whether to enforce the Fund’s obligation to purchase the securities. The return earned by the Fund with the proceeds of thedollar roll transaction may not exceed the return on the securities sold.

Forward commitment transactions involve the risk that a counter-party to the transaction may fail to complete the transaction. If this occurs, the Fundmay lose the opportunity to purchase or sell the security at the agreed upon price.

Settlement dates of forward commitment transactions may be a month or more after entering into these transactions and as a result the market valuesof the securities may vary from the purchase or sale prices. Therefore, forward commitment transactions may increase the Fund’s overall interest rateexposure.

K. Foreign Currency Translations — Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currencydealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation.Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translatedinto U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operationsresulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. Thecombined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) areincluded with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains orlosses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and(3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent ofthe amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, otherthan investments in securities at fiscal period end, resulting from changes in exchange rates.

The Fund may invest in foreign securities which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion ofwhich may be recoverable.

L. Futures Contracts — The Fund may enter into futures contracts to manage exposure to interest rate, equity and market price movements and/orcurrency risks. A futures contract is an agreement between two parties to purchase or sell a specified underlying security, currency or commodity (or


delivery of a cash settlement price, in the case of an index future) for a fixed price at a future date. The Fund currently invests only in exchange-tradedfutures and they are standardized as to maturity date and underlying financial instrument. Initial margin deposits required upon entering into futurescontracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period thefutures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts ona daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. Theseamounts are reflected as receivables or payables on the Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes arealized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The netrealized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Statement of Operations. Theprimary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate afutures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of thecontracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal counterparty risk since theexchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default. Risks may exceed amounts recognized inthe Statement of Assets and Liabilities.

M. Collateral — To the extent the Fund has pledged or segregated a security as collateral and that security is subsequently sold, it is the Fund’s practice toreplace such collateral no later than the next business day.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investmentadvisory agreement, the Fund pays an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:

Average Net Assets Rate

First $250 million 0.50%

Over $250 million 0.45%

Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco AssetManagement Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management,Inc. and Invesco Trimark Ltd. (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, may pay 40% of the fees paid to the Adviser to any suchAffiliated Sub-Adviser(s) that provide discretionary investment management services to the Fund based on the percentage of assets allocated to suchSub-Adviser(s).

The Adviser has contractually agreed, through at least April 30, 2012, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary tolimit total annual fund operating expenses after fee waiver (excluding certain items discussed below) of Series I shares to 0.73% and Series II shares to 0.98% ofaverage daily net assets. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken intoaccount, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above:(1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items; and (5) expenses that the Fund has incurred but did notactually pay because of an expense offset arrangement. Unless the Board of the Trustees and Invesco mutually agree to amend or continue the fee waiveragreement, it will terminate on April 30, 2012.

Further, the Adviser has contractually agreed, through at least June 30, 2011, to waive the advisory fee payable by the Fund in an amount equal to 100% ofthe net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money marketfunds.

For the year ended December 31, 2010, the Adviser waived advisory fees of $279,186.At the request of the Trustees of the Trust, Invesco Ltd. agreed to reimburse expenses incurred by the Fund in connection with market timing matters in the

Invesco Funds, which may include legal, audit, shareholder reporting, communications and trustee expenses. For the year ended December 31, 2010, Invesco Ltd.did not reimburse any expenses.

The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco a fee for costsincurred in providing accounting services and fund administrative services to the Fund and to reimburse Invesco for administrative services fees paid toinsurance companies that have agreed to provide services to the participants of separate accounts. These administrative services provided by the insurancecompanies may include, among other things: the printing of prospectuses, financial reports and proxy statements and the delivery of the same to existingparticipants; the maintenance of master accounts; the facilitation of purchases and redemptions requested by the participants; and the servicing of participants’accounts. Pursuant to such agreement, for the year ended December 31, 2010, Invesco was paid $285,632 for accounting and fund administrative services andreimbursed $2,956,166 for services provided by insurance companies.

The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed topay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course ofproviding such services. For the year ended December 31, 2010, expenses incurred under the agreement are shown in the Statement of Operations as transferagent fees.

The Trust has entered into a master distribution agreement with IDI to serve as the distributor for the Fund. The Trust has adopted a plan pursuant toRule 12b-1 under the 1940 Act with respect to the Fund’s Series II shares (the “Plan”). The Fund, pursuant to the Plan, pays IDI compensation at the annualrate of 0.25% of the Fund’s average daily net assets of Series II shares. Of the Plan payments, up to 0.25% of the average daily net assets of the Series II sharesmay be paid to insurance companies who furnish continuing personal shareholder services to customers who purchase and own Series II shares of the Fund.For the year ended December 31, 2010, expenses incurred under the Plan are detailed in the Statement of Operations as distribution fees.


Certain officers and trustees of the Trust are officers and directors of Invesco, IIS and/or IDI.

NOTE 3—Additional Valuation Information

GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants atthe measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods giving the highest priorityto readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs(Level 3) generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tieredinto one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:

Level 1 — Prices are determined using quoted prices in an active market for identical assets.Level 2 — Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a

security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, defaultrates, discount rates, volatilities and others.

Level 3 — Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example,when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputsreflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments andwould be based on the best available information.

The following is a summary of the tiered valuation input levels, as of December 31, 2010. The level assigned to the securities valuations may not be anindication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in thefinancial statements may materially differ from the value received upon actual sale of those investments.

During the year ended December 31, 2010, there were no significant transfers between investment levels.

Level 1 Level 2 Level 3 Total

Equity Securities $14,437,887 $ — $— $ 14,437,887

U.S. Treasury Securities — 94,338,211 — 94,338,211

U.S. Government Sponsored Securities — 1,002,643,020 — 1,002,643,020

Foreign Government Debt Securities — 4,220,009 — 4,220,009

$14,437,887 $1,101,201,240 $— $1,115,639,127

Futures* (6,582,541) — — (6,582,541)

Total Investments $ 7,855,346 $1,101,201,240 $— $1,109,056,586

* Unrealized appreciation (depreciation).

NOTE 4—Derivative Investments

The Fund has implemented the required disclosures about derivative instruments and hedging activities in accordance with GAAP. This disclosure is intended toimprove financial reporting about derivative instruments and hedging activities by requiring enhanced disclosures to enable investors to better understand theireffects on an entity’s financial position and financial performance. The enhanced disclosure has no impact on the results of operations reported in the financialstatements.

Value of Derivative Instruments at Period-End

The table below summarizes the value of the Fund’s derivative instruments, detailed by primary risk exposure, held as of December 31, 2010:

Risk Exposure/ Derivative Type Assets Liabilities

Value

Interest rate riskFutures Contracts(a) $380,786 $(6,963,327)

(a) Includes cumulative appreciation (depreciation) of futures contracts. Only current day’s variation margin receivable (payable) is reported within the Statement of Assets &Liabilities.


Effect of Derivative Instruments for the year ended December 31, 2010

The table below summarizes the gains on derivative instruments, detailed by primary risk exposure, recognized in earnings during the period:

Futures*

Location of Gain onStatement of Operations

Realized GainInterest rate risk $29,762,028

Change in Unrealized AppreciationInterest rate risk 7,512,664

Total $37,274,692

* The average value of futures outstanding during the period was $519,215,200.

ContractNumber ofContracts

Month/Commitment Value

UnrealizedAppreciation

(Depreciation)

Open Futures Contracts

U.S. Treasury 2 Year Notes 317 March-2011/Long $ 69,393,281 $ 47,314

U.S. Treasury 5 Year Notes 507 March-2011/Long 59,683,406 (434,754)

U.S. Treasury 10 Year Notes 1,166 March-2011/Long 140,430,125 (4,475,601)

Ultra U.S. Treasury Bonds 721 March-2011/Long 91,634,594 (2,001,199)

Subtotal $361,141,406 $(6,864,240)

U.S. Treasury 30 Year Bonds 82 March-2011/Short $(10,014,250) $ 281,699

Total $351,127,156 $(6,582,541)

NOTE 5—Security Transactions with Affiliated Funds

The Fund is permitted to purchase or sell securities from or to certain other Invesco Funds under specified conditions outlined in procedures adopted by theBoard of Trustees of the Trust. The procedures have been designed to ensure that any purchase or sale of securities by the Fund from or to another fund orportfolio that is or could be considered an affiliate by virtue of having a common investment adviser (or affiliated investment advisers), common Trustees and/orcommon officers complies with Rule 17a-7 of the 1940 Act. Further, as defined under the procedures, each transaction is effected at the current market price.Pursuant to these procedures, for the year ended December 31, 2010, the Fund engaged in securities sales of $13,027,220, which resulted in net realized gains of$50,213.

NOTE 6—Expense Offset Arrangement(s)

The expense offset arrangement is comprised of custodian credits which result from periodic overnight cash balances at the custodian. For the year endedDecember 31, 2010, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $121.

NOTE 7—Trustees’ and Officers’ Fees and Benefits

“Trustees’ and Officers’ Fees and Benefits” include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees havethe option to defer compensation payable by the Fund, and “Trustees’ and Officers’ Fees and Benefits” also include amounts accrued by the Fund to fund suchdeferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shallbe deemed to be invested. Finally, certain current Trustees are eligible to participate in a retirement plan that provides for benefits to be paid upon retirement toTrustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement planand receive benefits under such plan. “Trustees’ and Officers’ Fees and Benefits” include amounts accrued by the Fund to fund such retirement benefits.Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.

During the year ended December 31, 2010, the Fund paid legal fees of $5,459 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel tothe Independent Trustees. A member of that firm is a Trustee of the Trust.

NOTE 8—Cash Balances

The Fund may borrow for leveraging in an amount up to 5% of the Fund’s total assets (excluding the amount borrowed) at the time the borrowing is made. Indoing so, the Fund is permitted to temporarily carry a negative or overdrawn balance in its account with The State Street Bank and Trust Company, thecustodian bank. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in theaccount so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed uponby the custodian bank and Invesco, not to exceed the contractually agreed upon rate. A Fund may not purchase additional securities when any borrowings frombanks exceeds 5% of the Fund’s total assets.


NOTE 9—Distributions to Shareholders and Tax Components of Net Assets

Distributions to Shareholders:

Tax Character of Distributions to Shareholders Paid During the Years Ended December 31, 2010 and 2009:2010 2009

Ordinary income $55,777,349 $ 60,878,384

Long-term capital gain — 43,764,158

Total distributions $55,777,349 $104,642,542

Tax Components of Net Assets at Period-End:

2010

Undistributed ordinary income $ 37,617,791

Net unrealized appreciation — investments 19,984,727

Temporary book/tax differences (143,326)

Post-October deferrals (16,616,541)

Capital loss carryforward (25,293,448)

Shares of beneficial interest 1,080,930,022

Total net assets $1,096,479,225

The difference between book-basis and tax-basis unrealized appreciation (depreciation) is due to differences in the timing of recognition of gains and losseson investments for tax and book purposes. The Fund’s net unrealized appreciation difference is attributable primarily to wash sales.

The temporary book/tax differences are a result of timing differences between book and tax recognition of income and/or expenses. The Fund’s temporarybook/tax differences are the result of the trustee deferral of compensation and retirement plan benefits.

Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount ofcapital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforward in the future may be limited under the InternalRevenue Code and related regulations based on the results of future transactions.

The Fund utilized $31,156,599 of capital loss carryforward in the current period to offset net realized capital gain for federal income tax purposes. The Fundhas a capital loss carryforward as of December 31, 2010 which expires as follows:

ExpirationCapital Loss

Carryforward*

December 31, 2017 $25,293,448

* Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code.

NOTE 10—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and soldby the Fund during the year ended December 31, 2010 was $614,267,331 and $794,289,411, respectively. During the same period, purchases and sales ofU.S. Treasury obligations were $108,130,115 and $33,548,954, respectively. Cost of investments on a tax basis includes the adjustments for financial reportingpurposes as of the most recently completed Federal income tax reporting period end.

Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis

Aggregate unrealized appreciation of investment securities $25,556,085

Aggregate unrealized (depreciation) of investment securities (5,571,358)

Net unrealized appreciation of investment securities $19,984,727

Cost of investments for tax purposes is $1,095,654,400.

NOTE 11—Reclassification of Permanent Differences

Primarily as a result of differing book/tax treatment of paydown gains (losses), on December 31, 2010, undistributed net investment income was increased by$13,929,055, undistributed net realized gain (loss) was decreased by $13,929,055. This reclassification had no effect on the net assets of the Fund.


NOTE 12—Share Information

Shares Amount Shares Amount

2010(a) 2009

Years ended December 31,

Summary of Share Activity

Sold:Series I 14,868,780 $ 182,569,736 13,378,824 $ 173,338,232

Series II 1,086,469 13,335,480 368,564 4,730,767

Issued as reinvestment of dividends:Series I 4,508,875 54,918,094 8,534,823 103,442,051

Series II 70,954 859,253 99,626 1,200,490

Reacquired:Series I (29,794,392) (366,330,179) (44,095,427) (567,245,030)

Series II (355,134) (4,339,793) (821,161) (10,501,393)

Net increase (decrease) in share activity (9,614,448) $(118,987,409) (22,534,751) $(295,034,883)

(a) There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 94% of the outstanding shares of the Fund. TheFund and the Fund’s principal underwriter or adviser, are parties to participation agreements with these entities whereby these entities sell units of interest in separateaccounts funding variable products that are invested in the Fund. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered tobe related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as, securities brokerage, third partyrecord keeping and account servicing and administrative services. The Trust has no knowledge as to whether all or any portion of the shares owned of record by these entitiesare also owned beneficially.

NOTE 13—Financial Highlights

The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.

Net assetvalue,

beginningof period

Netinvestmentincome(a)

Net gains(losses)

on securities(both

realized andunrealized)

Total frominvestmentoperations

Dividendsfrom net

investmentincome

Distributionsfrom netrealizedgains

TotalDistributions

Net assetvalue, endof period

TotalReturn(b)

Net assets,end of period

(000s omitted)

Ratio ofexpensesto averagenet assets

with fee waiversand/or expenses

absorbed

Ratio ofexpenses

to average netassets without

fee waiversand/or expenses

absorbed

Ratio of netinvestment

incometo averagenet assets

Portfolioturnover(c)

Series IYear ended 12/31/10 $11.95 $0.24 $ 0.41 $ 0.65 $(0.60) $ — $(0.60) $12.00 5.40% $1,072,405 0.73%(d) 0.75%(d) 1.98%(d) 61%Year ended 12/31/09 13.05 0.45 (0.43) 0.02 (0.65) (0.47) (1.12) 11.95 (0.01) 1,192,967 0.73 0.75 3.47 55Year ended 12/31/08 12.06 0.50 0.96 1.46 (0.47) — (0.47) 13.05 12.22 1,591,799 0.73 0.76 3.96 109Year ended 12/31/07 11.80 0.59 0.16 0.75 (0.49) — (0.49) 12.06 6.43 1,169,985 0.73 0.76 4.93 106Year ended 12/31/06 11.87 0.55 (0.13) 0.42 (0.49) — (0.49) 11.80 3.55 907,403 0.71 0.77 4.62 89

Series IIYear ended 12/31/10 11.88 0.22 0.40 0.62 (0.58) — (0.58) 11.92 5.10 24,074 0.98(d) 1.00(d) 1.73(d) 61Year ended 12/31/09 12.97 0.41 (0.43) (0.02) (0.60) (0.47) (1.07) 11.88 (0.26) 14,462 0.98 1.00 3.22 55Year ended 12/31/08 11.99 0.46 0.97 1.43 (0.45) — (0.45) 12.97 11.98 20,362 0.98 1.01 3.71 109Year ended 12/31/07 11.74 0.56 0.15 0.71 (0.46) — (0.46) 11.99 6.11 18,770 0.98 1.01 4.68 106Year ended 12/31/06 11.81 0.52 (0.13) 0.39 (0.46) — (0.46) 11.74 3.28 16,218 0.96 1.02 4.37 89

(a) Calculated using average shares outstanding.(b) Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns

based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Total returns are not annualized for periods less than one year, if applicable and donot reflect charges assessed in connection with a variable product, which if included would reduce total returns.

(c) Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.(d) Ratios are based on average daily net assets (000’s) of $1,181,500 and $16,901 for Series I and Series II shares, respectively

NOTE 14—Significant Event

The Board of Trustees unanimously approved an Agreement and Plan of Reorganization (the “Agreement”) pursuant to which the Fund would acquire all of theassets and liabilities of the Invesco Van Kampen V.I. Government Fund (the “Target Fund”) in exchange for shares of the Fund. The Agreement requiresapproval of the Target Fund’s shareholders and will be submitted to the shareholders for their consideration at a meeting to be held in or around April 2011.


Report of Independent Registered Public Accounting Firm

To the Board of Trustees of AIM Variable Insurance Funds (Invesco Variable Insurance Funds)and Shareholders of Invesco V.I. Government Securities Fund:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements ofoperations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Invesco V.I.Government Securities Fund (formerly known as AIM V.I. Government Securities Fund; one of the funds constituting AIM Variable Insurance Funds(Invesco Variable Insurance Funds), hereafter referred to as the “Fund”) at December 31, 2010, the results of its operations for the year thenended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the periodsindicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financialhighlights (hereafter referred to as “financial statements”) are the responsibility of the Fund’s management; our responsibility is to express anopinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with thestandards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit toobtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a testbasis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significantestimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which includedconfirmation of securities at December 31, 2010 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PRICEWATERHOUSECOOPERS LLP

February 9, 2011Houston, Texas


Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur ongoing costs, including management fees; distribution and/or service fees (12b-1); and other Fund expenses. Thisexample is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investingin other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period July 1, 2010through December 31, 2010.

The actual and hypothetical expenses in the examples below do not represent the effect of any fees or other expenses assessed in connection with a variableproduct; if they did, the expenses shown would be higher while the ending account values shown would be lower.

Actual expenses

The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amountyou invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value dividedby $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate theexpenses you paid on your account during this period.

Hypothetical example for comparison purposes

The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and anassumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.

The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. Youmay use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs. Therefore, the hypothetical information is useful in comparingongoing costs, and will not help you determine the relative total costs of owning different funds.

Class

BeginningAccount Value(07/01/10)

EndingAccount Value(12/31/10)1

ExpensesPaid During

Period2

EndingAccount Value(12/31/10)

ExpensesPaid During

Period2

AnnualizedExpense

Ratio

ACTUAL

HYPOTHETICAL(5% annual return before

expenses)

Series I $1,000.00 $1,007.30 $3.64 $1,021.58 $3.67 0.72%

Series II 1,000.00 1,009.80 4.91 1,020.32 4.94 0.971 The actual ending account value is based on the actual total return of the Fund for the period July 1, 2010 through December 31, 2010, after actual expenses and will differ from the hypothetical

ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.2 Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 184/365 to reflect the most recent fiscal half year.


Tax Information

Form 1099-DIV, Form 1042-S and other year-end tax information provide shareholders with actual calendar year amounts that should be included in their taxreturns. Shareholders should consult their tax advisors.

The following distribution information is being provided as required by the Internal Revenue Code or to meet a specific state’s requirement.The Fund designates the following amounts or, if subsequently determined to be different, the maximum amount allowable for its fiscal year ended

December 31, 2010:

Federal and State Income Tax

Qualified Dividend Income* 0%Corporate Dividends Received Deduction* 0%U.S. Treasury Obligations* 21.46%

* The above percentages are based on ordinary income dividends paid to shareholders during the Fund’s fiscal year.


T-1

Trustees and Officers The address of each trustee and officer is AIM Variable Insurance Funds (Invesco Variable Insurance Funds) (the “Trust”), 11 Greenway Plaza, Suite 2500, Houston, Texas 77046-1173. The trustees serve for the life of the Trust, subject to their earlier death, incapacitation, resignation, retirement or removal as more specifically provided in the Trust’s organizational documents. Each officer serves for a one year term or until their successors are elected and qualified. Column two below includes length of time served with predecessor entities, if any.

Name, Year of Birth and Position(s) Held with the Trust

Trustee and/or Officer Since

Principal Occupation(s) During Past 5 Years

Number of Funds in

Fund Complex Overseen by

Trustee

Other Directorship(s)Held by Trustee

Interested Persons

Martin L. Flanagan1 — 1960 Trustee

2007 Executive Director, Chief Executive Officer and President, Invesco Ltd. (ultimate parent of Invesco and a global investment management firm); Advisor to the Board, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.); Trustee, The Invesco Funds; Vice Chair, Investment Company Institute; and Member of Executive Board, SMU Cox School of Business Formerly: Chairman, Invesco Advisers, Inc. (registered investment adviser); Director, Chairman, Chief Executive Officer and President, IVZ Inc. (holding company), INVESCO Group Services, Inc. (service provider) and Invesco North American Holdings, Inc. (holding company); Director, Chief Executive Officer and President, Invesco Holding Company Limited (parent of Invesco and a global investment management firm); Director, Invesco Ltd.; Chairman, Investment Company Institute and President, Co-Chief Executive Officer, Co-President, Chief Operating Officer and Chief Financial Officer, Franklin Resources, Inc. (global investment management organization)

208 None

Philip A. Taylor2 — 1954 Trustee, President and Principal Executive Officer

2006 Head of North American Retail and Senior Managing Director, Invesco Ltd.; Director, Co-Chairman, Co-President and Co-Chief Executive Officer, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director, Chief Executive Officer and President, 1371 Preferred Inc. (holding company); Director, Chairman, Chief Executive Officer and President, Invesco Management Group, Inc. (formerly Invesco Aim Management Group, Inc.) (financial services holding company); Director and President, INVESCO Funds Group, Inc. (registered investment adviser and registered transfer agent) and AIM GP Canada Inc. (general partner for limited partnerships); Director and Chairman, Invesco Investment Services, Inc. (formerly known as Invesco Aim Investment Services, Inc.) (registered transfer agent) and IVZ Distributors, Inc. (formerly known as INVESCO Distributors, Inc.) (registered broker dealer); Director, President and Chairman, Invesco Inc. (holding company) and Invesco Canada Holdings Inc. (holding company); Chief Executive Officer, Invesco Trimark Corporate Class Inc. (corporate mutual fund company) and Invesco Trimark Canada Fund Inc. (corporate mutual fund company); Director and Chief Executive Officer, Invesco Trimark Ltd./Invesco Trimark Ltèe (registered investment adviser and registered transfer agent) and Invesco Trimark Dealer Inc. (registered broker dealer); Trustee, President and Principal Executive Officer, The Invesco Funds (other than AIM Treasurer's Series Trust (Invesco Treasurer’s Series Trust) and Short-Term Investments Trust); Trustee and Executive Vice President, The Invesco Funds (AIM Treasurer's Series Trust (Invesco Treasurer’s Series Trust) and Short-Term Investments Trust only); and Director, Van Kampen Asset Management; Director, Chief Executive Officer and President, Van Kampen Investments Inc. and Van Kampen Exchange Corp.; Director and Chairman, Van Kampen Investor Services Inc. and Director and President, Van Kampen Advisors, Inc. Formerly: Director, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.) (registered broker dealer); Manager, Invesco PowerShares Capital Management LLC; Director, Chief Executive Officer and President, Invesco Advisers, Inc.; Director, Chairman, Chief Executive Officer and President, Invesco Aim Capital Management, Inc.; President, Invesco Trimark Dealer Inc. and Invesco Trimark Ltd./Invesco Trimark Ltèe; Director and President, AIM Trimark Corporate Class Inc. and AIM Trimark Canada Fund Inc.; Senior Managing Director, Invesco Holding Company Limited; Trustee and Executive Vice President, Tax-Free Investments Trust; Director and Chairman, Fund Management Company (former registered broker dealer); President and Principal Executive Officer, The Invesco Funds (AIM Treasurer's Series Trust (Invesco Treasurer’s Series Trust), Short-Term Investments Trust and Tax-Free Investments Trust only); President, AIM Trimark Global Fund Inc. and AIM Trimark Canada Fund Inc.

208 None

Wayne M. Whalen3 – 1939 Trustee

2010 Of Counsel, and prior to 2010, partner in the law firm of Skadden, Arps, Slate, Meagher & Flom LLP, legal counsel to funds in the Fund Complex

226 Director of the Abraham Lincoln Presidential Library Foundation

Independent Trustees

Bruce L. Crockett – 1944 Trustee and Chair

1993 Chairman, Crockett Technology Associates (technology consulting company) Formerly: Director, Captaris (unified messaging provider); Director, President and Chief Executive Officer COMSAT Corporation; and Chairman, Board of Governors of INTELSAT (international communications company)

208 ACE Limited (insurance company); and Investment Company Institute

David C. Arch – 1945 Trustee

2010 Chairman and Chief Executive Officer of Blistex Inc., a consumer health care products manufacturer. 226 Member of the Heartland Alliance Advisory Board, a nonprofit organization serving human needs based in Chicago. Board member of the Illinois Manufacturers’ Association. Member of the Board of Visitors, Institute for the Humanities, University of Michigan

1 Mr. Flanagan is considered an interested person of the Trust because he is an officer of the adviser to the Trust, and an officer and a director of Invesco Ltd., ultimate parent of the adviser to the Trust. 2 Mr. Taylor is considered an interested person of the Trust because he is an officer and a director of the adviser to, and a director of the principal underwriter of, the Trust. 3 Mr. Whalen is considered an “interested person” (within the meaning of Section 2(a)(19) of the 1940 Act) of certain Funds in the Fund Complex by reason of he and his firm currently providing legal services as

legal counsel to such Funds in the Fund Complex.

T-2

Trustees and Officers – (continued)




Number of Funds in


Trustee

Other Directorship(s) Held by Trustee

Independent Trustees

Bob R. Baker – 1936 Trustee

2004 Retired Formerly: President and Chief Executive Officer, AMC Cancer Research Center; and Chairman and Chief Executive Officer, First Columbia Financial Corporation

208 None

Frank S. Bayley – 1939 Trustee

2001 Retired Formerly: Director, Badgley Funds, Inc. (registered investment company) (2 portfolios) and Partner, law firm of Baker & McKenzie

208 None

James T. Bunch – 1942 Trustee

2004 Founder, Green, Manning & Bunch Ltd. (investment banking firm) Formerly: Executive Committee, United States Golf Association; and Director, Policy Studies, Inc. and Van Gilder Insurance Corporation

208 Vice Chairman, Board of Governors, Western Golf Association/Evans Scholars Foundation and Director, Denver Film Society

Rodney Dammeyer – 1940 Trustee

2010 President of CAC, LLC, a private company offering capital investment and management advisory services. Formerly: Prior to January 2004, Director of TeleTech Holdings Inc.; Prior to 2002, Director of Arris Group, Inc.; Prior to 2001, Managing Partner at Equity Group Corporate Investments. Prior to 1995, Vice Chairman of Anixter International. Prior to 1985, experience includes Senior Vice President and Chief Financial Officer of Household International, Inc, Executive Vice President and Chief Financial Officer of Northwest Industries, Inc. and Partner of Arthur Andersen & Co.

226 Director of Quidel Corporation and Stericycle, Inc. Prior to May 2008, Trustee of The Scripps Research Institute. Prior to February 2008, Director of Ventana Medical Systems, Inc. Prior to April 2007, Director of GATX Corporation. Prior to April 2004, Director of TheraSense, Inc.

Albert R. Dowden – 1941 Trustee

2000 Director of a number of public and private business corporations, including the Boss Group, Ltd. (private investment and management); Reich & Tang Funds (5 portfolios) (registered investment company); and Homeowners of America Holding Corporation/ Homeowners of America Insurance Company (property casualty company) Formerly: Director, Continental Energy Services, LLC (oil and gas pipeline service); Director, CompuDyne Corporation (provider of product and services to the public security market) and Director, Annuity and Life Re (Holdings), Ltd. (reinsurance company); Director, President and Chief Executive Officer, Volvo Group North America, Inc.; Senior Vice President, AB Volvo; Director of various public and private corporations; Chairman, DHJ Media, Inc.; Director Magellan Insurance Company; and Director, The Hertz Corporation, Genmar Corporation (boat manufacturer), National Media Corporation; Advisory Board of Rotary Power International (designer, manufacturer, and seller of rotary power engines); and Chairman, Cortland Trust, Inc. (registered investment company)

208 Board of Nature’s Sunshine Products, Inc.

Jack M. Fields – 1952 Trustee

1997 Chief Executive Officer, Twenty First Century Group, Inc. (government affairs company); and Owner and Chief Executive Officer, Dos Angelos Ranch, L.P. (cattle, hunting, corporate entertainment), Discovery Global Education Fund (non-profit) and Cross Timbers Quail Research Ranch (non-profit) Formerly: Chief Executive Officer, Texana Timber LP (sustainable forestry company) and member of the U.S. House of Representatives

208 Administaff

Carl Frischling – 1937 Trustee

1993 Partner, law firm of Kramer Levin Naftalis and Frankel LLP 208 Director, Reich & Tang Funds (16 portfolios)

Prema Mathai-Davis – 1950 Trustee

1998 Retired Formerly: Chief Executive Officer, YWCA of the U.S.A.

208 None

Lewis F. Pennock – 1942 Trustee

1993 Partner, law firm of Pennock & Cooper 208 None

Larry Soll – 1942 Trustee

2004 Retired Formerly, Chairman, Chief Executive Officer and President, Synergen Corp. (a biotechnology company)

208 None

Hugo F. Sonnenschein – 1940 Trustee

2010 President Emeritus and Honorary Trustee of the University of Chicago and the Adam Smith Distinguished Service Professor in the Department of Economics at the University of Chicago. Prior to July 2000, President of the University of Chicago.

226 Trustee of the University of Rochester and a member of its investment committee. Member of the National Academy of Sciences, the American Philosophical Society and a fellow of the American Academy of Arts and Sciences

Raymond Stickel, Jr. – 1944 Trustee

2005 Retired Formerly: Director, Mainstay VP Series Funds, Inc. (25 portfolios) and Partner, Deloitte & Touche

208 None

T-3





Number of Funds in


Trustee


Other Officers

Russell C. Burk — 1958 Senior Vice President and Senior Officer

2005 Senior Vice President and Senior Officer of Invesco Funds N/A N/A

John M. Zerr — 1962 Senior Vice President, Chief Legal Officer and Secretary

2006 Director, Senior Vice President, Secretary and General Counsel, Invesco Management Group, Inc. (formerly known as Invesco Aim Management Group, Inc.), Van Kampen Investments Inc. and Van Kampen Exchange Corp., Senior Vice President, Invesco Advisers, Inc. formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Senior Vice President and Secretary, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.); Director, Vice President and Secretary, Invesco Investment Services, Inc. (formerly known as Invesco Aim Investment Services, Inc.) and IVZ Distributors, Inc. (formerly known as INVESCO Distributors, Inc.); Director and Vice President, INVESCO Funds Group, Inc.; Senior Vice President, Chief Legal Officer and Secretary, The Invesco Funds; Manager, Invesco PowerShares Capital Management LLC; Director, Secretary and General Counsel, Van Kampen Asset Management; Director and Secretary, Van Kampen Advisors Inc.; Secretary and General Counsel, Van Kampen Funds Inc.; and Director, Vice President, Secretary and General Counsel, Van Kampen Investor Services Inc.; and Chief Legal Officer, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Fund Trust Formerly: Director, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.); Director, Senior Vice President, General Counsel and Secretary, Invesco Advisers, Inc.; Director, Vice President and Secretary, Fund Management Company; Director, Senior Vice President, Secretary, General Counsel and Vice President, Invesco Aim Capital Management, Inc.; Chief Operating Officer and General Counsel, Liberty Ridge Capital, Inc. (an investment adviser); Vice President and Secretary, PBHG Funds (an investment company) and PBHG Insurance Series Fund (an investment company); Chief Operating Officer, General Counsel and Secretary, Old Mutual Investment Partners (a broker-dealer); General Counsel and Secretary, Old Mutual Fund Services (an administrator) and Old Mutual Shareholder Services (a shareholder servicing center); Executive Vice President, General Counsel and Secretary, Old Mutual Capital, Inc. (an investment adviser); and Vice President and Secretary, Old Mutual Advisors Funds (an investment company)

N/A N/A

Lisa O. Brinkley — 1959 Vice President

2004 Global Compliance Director, Invesco Ltd.; Chief Compliance Officer, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.), Invesco Investment Services, Inc.(formerly known as Invesco Aim Investment Services, Inc.) and Van Kampen Investor Services Inc.; and Vice President, The Invesco Funds Formerly: Senior Vice President, Invesco Management Group, Inc.; Senior Vice President and Chief Compliance Officer, Invesco Advisers, Inc. and The Invesco Funds; Vice President and Chief Compliance Officer, Invesco Aim Capital Management, Inc. and Invesco Distributors, Inc.; Vice President, Invesco Investment Services, Inc. and Fund Management Company

N/A N/A

Sheri Morris — 1964 Vice President, Treasurer and Principal Financial Officer

1999 Vice President, Treasurer and Principal Financial Officer, The Invesco Funds; and Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser) Formerly: Vice President, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.; Assistant Vice President and Assistant Treasurer, The Invesco Funds and Assistant Vice President, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.

N/A N/A

Karen Dunn Kelley — 1960 Vice President

1993 Head of Invesco’s World Wide Fixed Income and Cash Management Group; Senior Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser) and Van Kampen Investments Inc.; Executive Vice President, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.); Senior Vice President, Invesco Management Group, Inc. (formerly known as Invesco Aim Management Group, Inc.); and Director, Invesco Mortgage Capital Inc.; Vice President, The Invesco Funds (other than AIM Treasurer's Series Trust (Invesco Treasurer’s Series Trust) and Short-Term Investments Trust); President and Principal Executive Officer, The Invesco Funds (AIM Treasurer's Series Trust (Invesco Treasurer’s Series Trust) and Short-Term Investments Trust only). Formerly: Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.); Director of Cash Management and Senior Vice President, Invesco Advisers, Inc. and Invesco Aim Capital Management, Inc.; President and Principal Executive Officer, Tax-Free Investments Trust; Director and President, Fund Management Company; Chief Cash Management Officer, Director of Cash Management, Senior Vice President, and Managing Director, Invesco Aim Capital Management, Inc.; Director of Cash Management, Senior Vice President, and Vice President, Invesco Advisers, Inc. and The Invesco Funds (AIM Treasurer's Series Trust (Invesco Treasurer’s Series Trust), Short-Term Investments Trust and Tax-Free Investments Trust only)

N/A N/A

T-4





Number of Funds in


Trustee


Other Officers

Lance A. Rejsek — 1967 Anti-Money Laundering Compliance Officer

2005 Anti-Money Laundering Compliance Officer, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.), Invesco Investment Services, Inc. (formerly known as Invesco Aim Investment Services, Inc.), The Invesco Funds, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust, Van Kampen Asset Management, Van Kampen Investor Services Inc., and Van Kampen Funds Inc. Formerly: Anti-Money Laundering Compliance Officer, Fund Management Company, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.

N/A N/A

Todd L. Spillane — 1958 Chief Compliance Officer

2006 Senior Vice President, Invesco Management Group, Inc. (formerly known as Invesco Aim Management Group, Inc.), Van Kampen Investments Inc. and Van Kampen Exchange Corp.; Senior Vice President and Chief Compliance Officer, Invesco Advisers, Inc. (registered investment adviser) (formerly known as Invesco Institutional (N.A.), Inc.); Chief Compliance Officer, The Invesco Funds, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust, INVESCO Private Capital Investments, Inc. (holding company), and Invesco Private Capital, Inc. (registered investment adviser); Vice President, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.), Invesco Investment Services, Inc. (formerly known as Invesco Aim Investment Services, Inc.) and Van Kampen Investor Services Inc. Formerly: Senior Vice President and Chief Compliance Officer, Invesco Advisers, Inc. and Invesco Aim Capital Management, Inc.; Chief Compliance Officer, Invesco Global Asset Management (N.A.), Inc. and Invesco Senior Secured Management, Inc. (registered investment adviser); Vice President, Invesco Aim Capital Management, Inc. and Fund Management Company

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The Statement of Additional Information of the Trust includes additional information about the Fund’s Trustees and is available upon request, without charge, by calling 1.800.959.4246. Please refer to the Fund’s prospectus for information on the Fund’s sub-advisers.

Office of the Fund 11 Greenway Plaza, Suite 2500 Houston, TX 77046-1173 Counsel to the Fund Stradley Ronon Stevens & Young, LLP 2600 One Commerce Square Philadelphia, PA 19103

Investment Adviser Invesco Advisers, Inc. 1555 Peachtree Street, N.E. Atlanta, GA 30309 Counsel to the Independent Trustees Kramer, Levin, Naftalis & Frankel LLP 1177 Avenue of the Americas New York, NY 10036-2714

Distributor Invesco Distributors, Inc. 11 Greenway Plaza, Suite 2500 Houston, TX 77046-1173 Transfer Agent Invesco Investment Services, Inc. P.O. Box 4739 Houston, TX 77210-4739

Auditors PricewaterhouseCoopers LLP 1201 Louisiana Street, Suite 2900 Houston, TX 77002-5678 Custodian State Street Bank and Trust Company 225 Franklin Boston, MA 02110-2801

Date post:	16-Apr-2018
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