For the six months ended 31 May 2010
Invesco Bond Fund
Invesco Emerging Markets
Bond Fund Gilt Fund Invesco
Invesco Global High Income Fund
$ $ £ $
Net assets attributable to holders of redeemable participating Units at beginning of year (bid-market
prices) 388,832,421 251,665,414 114,841,901 400,764,828
Adjustment from bid-market prices to mid-market prices 292,982 1,109,059 105,540 1,919,105
Net assets attributable to holders of redeemable participating Units at beginning of year (mid-market
prices) 389,125,403 252,774,473 114,947,441 402,683,933
Decrease in net assets attributable to holders of redeemable
participating Units at bid-market prices (31,882,265) (14,667,155) (688,641) (10,258,175) Movement on adjustment from bid-market prices to mid-
market prices (128,816) 838,572 313,819 1,232,977
Decrease in net assets attributable to holders of
redeemable participating Units (32,011,081) (13,828,583) (374,822) (9,025,198)
Unit Transactions
Proceeds from redeemable participating Units issued 70,192,323 138,450,977 16,847,840 271,506,671 Cost of redeemable participating Units redeemed (91,597,952) (112,670,584) (38,095,689) (111,257,247)
Net assets attributable to holders of redeemable participating Units at the end of year (mid-market
prices) 335,708,693 264,726,283 93,324,770 553,908,159
For the six months ended 31 May 2011
1. Significant accounting policies Basis of Preparation
The condensed financial statements have been prepared under the historical cost convention as modified by the revaluation of financial assets and financial liabilities held at fair value through profit or loss. These condensed financial statements have been prepared in accordance with Irish law and pronouncements on half yearly reports issued by the Accounting Standards Board and the European Communities (UCITS) Regulations, 2011, (as amended) (the “UCITS Regulations”). These condensed financial statements do not include all of the information required for full annual financial statements and should be read in conjunction with the annual financial statements for the year ended 30 November 2010, which have been prepared in accordance with accounting Standards generally accepted in Ireland. The Funds have availed of the exemption permitted to open-ended investment funds under FRS 1 not to prepare a cash flow statement. Dividends, interest and capital gains received on investments made by the Funds may be subject to withholding taxes imposed by the country from which the investment income/gains are received and such taxes may not be recoverable by the Fund or its unitholders.
Foreign currency translation
(i) Functional and presentation currency
Items included in each Funds’ financial statements are measured using the currency of the primary economic environment in which it operates ('the functional currency'). This is the US Dollar. The US Dollar is also the presentation currency.
(ii) Assets and liabilities in foreign currencies are translated into US Dollars at the rates of exchange ruling at the balance sheet date. Income and expenditure transactions are translated at the rates of exchange ruling at the date of the transactions.
The principal exchange rates used: US$1.00
31 May 2011 30 November 2010 31 May 2011 Argentine Peso 4.08 3.98 3.91 Brazilian Real 1.58 1.72 1.81 Canadian Dollar 0.97 1.02 1.05 Columbian Peso 1,809.05 1,921.00 1,972.60 Danish Krone 5.18 5.73 6.05 Egyptian Pound 5.95 5.79 5.66 Euro 0.69 0.77 0.81 Japanese Yen 81.51 83.96 91.46 Kazakhstan Tenge 145.45 147.64 146.73 Mexican Peso 11.56 12.53 12.90 Nigeria Naira 156.65 150.85 151.35
Peruvian New Sol 2.77 2.83 2.85
Philippine Peso 43.26 44.01 46.27 Polish Zloty 2.76 3.13 3.31 Russian Ruble 27.97 31.39 30.78 Singapore Dollar 1.23 1.32 1.40 Slovakian Krona 20.95 23.14 - Sterling Pound 0.61 0.65 0.69 Swedish Krona 6.17 7.05 7.84 Swiss Franc 0.85 1.00 1.16
Turkish New Lira 1.59 1.51 1.57
Ukrainian Hryvnia 7.98 7.97 7.93
Uruguay Peso 18.65 20.00 19.25
The principal exchange rates used: GB£1.00
United States Dollar 1.65 1.55 1.45
Restatement of Net Asset Value in accordance with FRS26
To determine the net asset value of each Fund for subscriptions and redemptions, investments have been valued based on the mid market prices at 10.00am (Dublin time) on the relevant trading day. For Financial Statements purposes, investments are valued based on bid market prices and an adjustment to mid market prices is shown. This adjustment from bid to mid for the period ended 31 May 2011 is shown in the Balance Sheet on page 39. The movement in the adjustment from the current period end to the previous year end is shown in the Income Statement on page 42.
The net asset value per Unit is disclosed in note 5.
2. Distributor Status
Certification for the A & C Distribution Share Classes as a "Distributing Fund" under the United Kingdom Income and Corporation Taxes Act 1988 for the purposes of UK taxation has been sought for the year ended 30 November 2010. The funds have received approval from HMRC for the A & C Classes to become Reporting funds for the purposes of UK taxation for year end 30 November 2011 and subsequent years.
3. Soft Commissions and Related Party Transactions
The Funds, consistent with obtaining the best net result, including best execution, may enter into agreements with counterparties whereby those counterparties may make payments for investment services provided to the Funds.
Investment services are used by the Funds to improve or add to the services provided to its clients. Although each and every service may not be used to service each and every account managed by the Funds, the Funds considers that those investment services received are, in the aggregate, of significant assistance in fulfilling its investment responsibilities and are of demonstrable benefit to all clients. Only services that assist in the provision of investment services to the Funds’ clients will be paid for by counterparties. Allowable investment services include services that provide assistance to the Funds in its investment performance. Those services include, but are not necessarily limited to, furnishing analysis, research and advisory services including economic factors and trends, portfolio valuation and analysis, performance
measurement, market prices services and the use of specialised computer software and hardware or other information facilities. The Funds will ensure adherence to its investment decision making responsibilities to its clients in accordance with the laws of the countries that have jurisdiction over its clients or business. This may vary in application with respect to the appropriateness of those investment services provided.
The Funds select counterparties to execute transactions on the basis that transactions will only be executed provided the placing of orders will not operate against the best interest of the Funds’ clients and that the multiple is at a level which is generally accepted market practice. The Funds will endeavour to obtain best execution on all transactions for all clients.
In addition, clients may direct the Funds to pay commission to counterparties for products and services that would otherwise have to be paid for. In such cases, the commission is used for the exclusive benefit of the client whose transactions generated that commission.
The Funds will endeavour to maintain the highest possible regulatory standards world-wide.