Results
Invesco Dynamic Credit Opportunity Fund
11/06/2026 | Press release | Distributed by Public on 11/06/2026 08:15
Semi-Annual Report by Investment Company (Form N-CSRS)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number
811-23665
Invesco Dynamic Credit Opportunity Fund
(Exact name of registrant as specified in charter)
1555 Peachtree Street, N.E., Suite 1800 Atlanta, Georgia 30309
(Address of principal executive offices) (Zip code)
Glenn Brightman 1555 Peachtree Street, N.E., Suite 1800 Atlanta, Georgia 30309
(Name and address of agent for service)
Registrant's telephone number, including area code: (713)
626-1919
Date of fiscal year end: February 28
Date of reporting period: August 31, 2026
Item 1. Reports to Stockholders.
(a) The Registrant's semi-annual report transmitted to shareholders pursuant to Rule
30e-1
under the Investment Company Act of 1940, as amended (the "Act") is as follows:
|
Semi-Annual Report to Shareholders
|
August 31, 2026
|
|||
Invesco Dynamic Credit Opportunity Fund
Nasdaq:
A: XCRTX
∎
AX: XAXCX
∎
Y: XCYOX
∎
R6: XCRRX
| 2 | Fund Performance | |
| 4 | Consolidated Schedule of Investments | |
| 16 | Consolidated Financial Statements | |
| 20 | Consolidated Financial Highlights | |
| 24 | Notes to Consolidated Financial Statements | |
| 35 | Approval of Investment Advisory and Sub-Advisory Contracts | |
| 38 | Distribution Information | |
For the most current
month-end
Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data is provided by Invesco.
This report must be accompanied or preceded by a currently effective Fund prospectus, which contains more complete information, including sales charges and expenses. Investors should read it carefully before investing.
NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE
Fund Performance
|
Performance summary
|
||||
|
Fund vs. Indexes
Cumulative total returns, 2/28/26 to 8/31/26, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or
front-end
sales charges, which would have reduced performance.
|
||||
|
Class A Shares
|
-0.57% | |||
|
Class AX Shares
|
-0.45 | |||
|
Class Y Shares
|
-0.44 | |||
|
Class R6 Shares
|
-0.40 | |||
|
S&P UBS Leveraged Loan Index
q
(Style-Specific Index)
|
4.28 | |||
|
Source(s):
q
Bloomberg LP
|
||||
|
The
S&P UBS Leveraged Loan Index
represents tradable, senior-secured,
US-dollar-denominated,
non-investment-grade
loans.
|
||||
|
The Fund is not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).
|
||||
|
A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.
|
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For more information about your Fund
|
|
Read the most recent quarterly commentary from your Fund's portfolio managers by visiting
invesco.com/us
. Click on "Products" and select "Mutual Funds." Use the "Product Finder" to locate your Fund; then click on its name to access its product detail page. There, you can learn more about your Fund's investment strategies, holdings and performance.
|
|
Also, visit
blog.invesco.us.com
, where many of Invesco's investment professionals share their in-sights about market and economic news and trends.
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|
2
|
Invesco Dynamic Credit Opportunity Fund
|
|
Average Annual Total Returns
As of 8/31/26, including maximum applicable sales charges
|
||||
|
Class A Shares
|
||||
|
10 Years
|
5.57 | % | ||
|
5 Years
|
3.86 | |||
|
1 Year
|
-3.30 | |||
|
Class AX Shares
|
||||
|
Inception (6/26/07)
|
5.37 | % | ||
|
10 Years
|
6.12 | |||
|
5 Years
|
4.69 | |||
|
1 Year
|
0.24 | |||
|
Class Y Shares
|
||||
|
10 Years
|
6.20 | % | ||
|
5 Years
|
4.84 | |||
|
1 Year
|
0.25 | |||
|
Class R6 Shares
|
||||
|
10 Years
|
6.25 | % | ||
|
5 Years
|
4.94 | |||
|
1 Year
|
0.43 | |||
The performance data quoted represent past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.
The returns shown prior to November 1, 2021 are those of Invesco Dynamic Credit Opportunities Fund (the predecessor fund), a listed
closed-end
fund. Common Shares of the predecessor fund were reorganized into Class AX shares of the Fund on November 1, 2021.
Returns shown for Class AX shares prior to November 1, 2021 are those of the Common Shares of the predecessor fund. Returns shown for Class A, Class Y and Class R6 shares prior to November 1, 2021 are those of the Common Shares of the predecessor fund restated to reflect any applicable Rule
12b-1
fees and sales charges of the respective class.
Class A share performance reflects the maximum 3.25% sales charge. Class A shares, Class AX shares, Class Y shares and Class R6 shares have no early withdrawal charges, except that an early withdrawal charge of 1.00% may be imposed on certain repurchases of Class A shares made by the Fund within eighteen months of purchase upon which a sales charge was not paid; such charge is not reflected in the returns shown above. Class AX shares also do not have a
front-end
sales charge or a CDSC. Class Y shares and Class R6 shares
do not have a
front-end
sales charge or a CDSC, therefore performance is at net asset value.
The performance of the Fund's share classes will differ primarily due to different sales charge structures and class expenses.
Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.
Portfolio Manager Update
The following individuals are jointly and primarily responsible for the
day-to-day
management of Invesco Dynamic Credit Opportunity Fund portfolio:
|
∎
|
Scott Baskind
|
|
∎
|
Nuno Caetano
|
|
∎
|
Ron Kantowitz
|
|
∎
|
Philip Yarrow
|
|
∎
|
Trevor Slaven
|
|
∎
|
Andrew Tourigney
|
|
3
|
Invesco Dynamic Credit Opportunity Fund
|
Consolidated Schedule of Investments
August 31, 2026
(Unaudited)
|
Interest
Rate |
Maturity
Date |
Principal
Amount (000)
(a)
|
Value
|
|||||||||||||||||
|
Variable Rate Senior Loan Interests-118.41%
(b)(c)(d)
|
||||||||||||||||||||
|
Aerospace & Defense-5.32%
|
||||||||||||||||||||
|
FDH Group Acquisition, Inc.
|
||||||||||||||||||||
|
Delayed Draw Term Loan
(e)(f)(g)
|
0.00 | % | 10/21/2031 | $ | 4,000 | $ | 4,000,000 | |||||||||||||
|
Delayed Draw Term Loan (3 mo. Term SOFR + 4.75%)
(e)(f)
|
8.57 | % | 10/21/2031 | 189 | 189,145 | |||||||||||||||
|
Delayed Draw Term Loan
(e)(f)(g)
|
0.00 | % | 11/04/2031 | 82 | 82,177 | |||||||||||||||
|
Term Loan B (3 mo. Term SOFR + 4.75%)
(e)(f)
|
8.48 | % | 11/04/2031 | 717 | 716,973 | |||||||||||||||
|
Gogo Intermediate Holdings LLC, Term Loan (1 mo. Term SOFR + 3.86%)
|
||||||||||||||||||||
|
(Acquired
12/02/2025-02/27/2026;
Cost $936,359)
(h)
|
7.55 | % | 04/30/2028 | 984 | 849,162 | |||||||||||||||
|
NAC Aviation 8 Ltd. (Ireland), Revolver Loan
(f)(g)
|
0.00 | % | 12/31/2026 | 1,643 | 1,642,458 | |||||||||||||||
|
Peraton Corp., First Lien Term Loan B (3 mo. Term SOFR + 3.85%)
|
7.67 | % | 02/01/2028 | 1,210 | 1,153,027 | |||||||||||||||
|
S3 AeroDefense
|
||||||||||||||||||||
|
Delayed Draw Term Loan
(e)(f)(g)
|
0.00 | % | 05/01/2032 | 2,143 | 2,123,571 | |||||||||||||||
|
Term Loan A (1 mo. Term SOFR + 5.00%)
(e)(f)
|
8.76 | % | 05/01/2032 | 2,857 | 2,831,429 | |||||||||||||||
| 13,587,942 | ||||||||||||||||||||
|
Air Transport-0.52%
|
||||||||||||||||||||
|
American Airlines, Inc., Term Loan (3 mo. Term SOFR + 3.00%)
|
6.76 | % | 05/20/2033 | 671 | 670,020 | |||||||||||||||
|
WestJet Airlines Ltd. (Canada), Term Loan (3 mo. Term SOFR + 2.75%)
|
6.48 | % | 02/14/2031 | 665 | 643,817 | |||||||||||||||
| 1,313,837 | ||||||||||||||||||||
|
Automotive-3.54%
|
||||||||||||||||||||
|
Autokiniton US Holdings, Inc., Term Loan B (1 mo. Term SOFR + 4.11%)
|
7.80 | % | 04/06/2028 | 1,247 | 1,247,975 | |||||||||||||||
|
Muth Mirror Systems LLC
|
||||||||||||||||||||
|
Revolver Loan
(e)(f)(g)(h)
|
0.00 | % | 03/31/2027 | 419 | 134,176 | |||||||||||||||
|
Revolver Loan 4.00% PIK Rate, 7.00% Cash Rate
|
||||||||||||||||||||
|
(Acquired
04/23/2019-09/30/2025;
Cost $1,676,574)
(e)(f)(h)(i)
|
4.00 | % | 03/31/2027 | 1,258 | 402,528 | |||||||||||||||
|
Term Loan
|
||||||||||||||||||||
|
(Acquired
04/23/2019-06/30/2026;
Cost $19,852,372)
(e)(f)(h)
|
7.00 | % | 03/31/2027 | 19,886 | 6,363,424 | |||||||||||||||
|
Project Boost Purchaser LLC, Term Loan (3 mo. Term SOFR + 2.75%)
|
6.48 | % | 07/16/2031 | 912 | 901,173 | |||||||||||||||
| 9,049,276 | ||||||||||||||||||||
|
Beverage & Tobacco-0.01%
|
||||||||||||||||||||
|
City Brewing Co. LLC
|
||||||||||||||||||||
|
First Lien Term Loan (3 mo. Term SOFR + 7.00%)
(f)
|
10.76 | % | 09/30/2030 | 467 | 2,335 | |||||||||||||||
|
Term Loan (3 mo. Term SOFR + 7.00%)
(f)
|
10.76 | % | 09/30/2030 | 155 | 31,075 | |||||||||||||||
| 33,410 | ||||||||||||||||||||
|
Brokers, Dealers & Investment Houses-1.11%
|
||||||||||||||||||||
|
Ascensus Group Holdings, Inc., Term Loan B (1 mo. Term SOFR + 3.00%)
|
6.69 | % | 11/24/2032 | 542 | 535,453 | |||||||||||||||
|
GC Ferry Acquisition I, Inc. (First Eagle Investment Management LLC)
|
||||||||||||||||||||
|
Delayed Draw Term Loan
(g)
|
0.00 | % | 08/16/2032 | 239 | 240,256 | |||||||||||||||
|
Term Loan B (3 mo. Term SOFR + 3.50%)
|
7.23 | % | 08/16/2032 | 1,393 | 1,400,180 | |||||||||||||||
|
OSTTRA Group Ltd., First Lien Term Loan (3 mo. Term SOFR + 3.00%)
|
6.75 | % | 10/08/2032 | 653 | 655,456 | |||||||||||||||
| 2,831,345 | ||||||||||||||||||||
|
Building & Development-2.46%
|
||||||||||||||||||||
|
Anvil UK Bidco Ltd. (Leviat) (United Kingdom), Term Loan B (3 mo.
EURIBOR + 6.25%)
(e)(f)
|
8.80 | % | 05/03/2032 | EUR | 2,564 | 2,948,549 | ||||||||||||||
|
Empire Today LLC, Term Loan (3 mo. Term SOFR + 5.50%)
(Acquired 05/01/2026; Cost $494,351)
(f)(h)
|
9.31 | % | 05/03/2032 | 494 | 494,351 | |||||||||||||||
|
Icebox Holdco III, Inc., First Lien Term Loan (3 mo. Term SOFR + 3.25%)
|
6.98 | % | 12/22/2031 | 181 | 182,392 | |||||||||||||||
|
Interior Logic Group, Inc. (Signal Parent), Term Loan B (3 mo. Term SOFR + 3.60%)
(Acquired
09/11/2023-12/08/2025;
Cost $1,268,412)
(f)(h)
|
7.42 | % | 04/03/2028 | 1,455 | 784,717 | |||||||||||||||
|
IPS Corp./CP Iris Holdco
|
||||||||||||||||||||
|
Delayed Draw Term Loan
(g)
|
0.00 | % | 10/27/2032 | 21 | 20,886 | |||||||||||||||
|
Term Loan B (3 mo. Term SOFR + 4.00%)
|
7.69 | % | 10/27/2032 | 727 | 708,500 | |||||||||||||||
|
Oldcastle BuildingEnvelope, Inc., Term Loan B (3 mo. Term SOFR + 4.25%)
|
7.98 | % | 04/29/2029 | 1,209 | 822,549 | |||||||||||||||
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
|
4
|
Invesco Dynamic Credit Opportunity Fund
|
|
Interest
Rate |
Maturity
Date |
Principal
Amount (000)
(a)
|
Value
|
|||||||||||||||||
|
Building & Development-(continued)
|
||||||||||||||||||||
|
TAMKO Building Products LLC, Incremental Term Loan B (3 mo. Term SOFR + 3.00%)
|
6.82 | % | 09/20/2030 | $ | 344 | $ | 328,243 | |||||||||||||
| 6,290,187 | ||||||||||||||||||||
|
Business Equipment & Services-23.04%
|
||||||||||||||||||||
|
Balaena Maritime UK, Ltd. (United Kingdom), Term Loan
(e)(f)
|
15.74 | % | 06/09/2031 | GBP | 3,769 | 4,980,014 | ||||||||||||||
|
BNI Intermediate Holdings LLC
|
||||||||||||||||||||
|
Delayed Draw Term Loan
(e)(f)(g)
|
0.00 | % | 08/01/2033 | 23 | 22,293 | |||||||||||||||
|
Revolver Loan
(e)(f)(g)
|
0.00 | % | 08/01/2033 | 101 | 99,590 | |||||||||||||||
|
Term Loan A
(e)(f)
|
9.07 | % | 08/01/2033 | 9 | 8,851 | |||||||||||||||
|
Term Loan B
(e)(f)
|
7.71 | % | 08/01/2033 | EUR | 549 | 628,086 | ||||||||||||||
|
Cloud Software Group, Inc., Term Loan B (3 mo. Term SOFR + 3.25%)
|
6.98 | % | 08/13/2032 | 729 | 695,735 | |||||||||||||||
|
Clover Holdings 2 LLC, Term Loan B (3 mo. Term SOFR + 3.75%)
|
7.39 | % | 12/09/2031 | 361 | 355,807 | |||||||||||||||
|
Constant Contact, Inc., Term Loan (3 mo. Term SOFR + 4.25%)
|
8.01 | % | 02/10/2028 | 1,662 | 1,617,282 | |||||||||||||||
|
GI Revelation Acquisition LLC, Term Loan
B-4
(1 mo. Term SOFR + 3.50%)
|
7.19 | % | 05/12/2028 | 2,509 | 2,362,207 | |||||||||||||||
|
Heron BidCo, LLC (Heidrick & Struggles International Inc), Term Loan B (3 mo. Term SOFR + 3.75%)
|
7.73 | % | 12/10/2032 | 686 | 690,778 | |||||||||||||||
|
IMS Services Enterprises LLC
|
||||||||||||||||||||
|
Delayed Draw Term Loan
(e)(f)(g)
|
0.00 | % | 04/01/2033 | 501 | 497,137 | |||||||||||||||
|
Delayed Draw Term Loan (3 mo. Term SOFR + 4.75%)
(e)(f)
|
8.48 | % | 04/01/2033 | 104 | 103,270 | |||||||||||||||
|
Revolver Loan
(e)(f)(g)
|
0.00 | % | 04/01/2033 | 242 | 240,163 | |||||||||||||||
|
Term Loan (6 mo. Term SOFR + 4.75%)
(e)(f)
|
8.59 | % | 04/01/2033 | 1,693 | 1,681,141 | |||||||||||||||
|
Lamark Media Group LLC
|
||||||||||||||||||||
|
Delayed Draw Term Loan (3 mo. Term SOFR + 5.00%)
(e)(f)
|
8.73 | % | 10/14/2027 | 1,474 | 1,474,457 | |||||||||||||||
|
Revolver Loan
(e)(f)(g)
|
0.00 | % | 10/14/2027 | 509 | 509,312 | |||||||||||||||
|
Revolver Loan (3 mo. Term SOFR + 5.00%)
(e)(f)
|
8.73 | % | 10/14/2027 | 509 | 509,311 | |||||||||||||||
|
Term Loan (3 mo. Term SOFR + 5.00%)
(e)(f)
|
8.73 | % | 10/14/2027 | 6,809 | 6,809,498 | |||||||||||||||
|
Learning Care Group (US) No. 2, Inc., Term Loan B (3 mo. Term SOFR + 4.00%)
|
7.81 | % | 08/11/2028 | 801 | 609,219 | |||||||||||||||
|
LSF 12 Phoenix Holdco, LLC (dba Alliance Ground International), Term Loan B (1 mo. Term SOFR + 4.50%)
(f)
|
8.19 | % | 03/25/2033 | 656 | 657,172 | |||||||||||||||
|
Merlin Parent Holdings 2026, Inc., Term Loan
(e)(f)
|
10.39 | % | 06/25/2029 | 693 | 678,821 | |||||||||||||||
|
Monitronics International, Inc., DIP Term Loan A (3 mo. Term SOFR + 7.76%)
(Acquired 06/30/2023; Cost $4,003,280)
(f)(h)
|
11.49 | % | 06/30/2028 | 4,003 | 4,001,679 | |||||||||||||||
|
NAS LLC (d.b.a. Nationwide Marketing Group)
|
||||||||||||||||||||
|
Revolver Loan
(e)(f)(j)
|
0.00 | % | 11/15/2026 | 919 | 879,057 | |||||||||||||||
|
Term Loan
(e)(f)(j)
|
0.00 | % | 11/15/2026 | 8,559 | 8,182,367 | |||||||||||||||
|
Term Loan
(e)(f)(j)
|
0.00 | % | 11/15/2026 | 2,680 | 2,562,558 | |||||||||||||||
|
Term Loan
(e)(f)(j)
|
0.00 | % | 11/15/2026 | 1,626 | 1,554,424 | |||||||||||||||
|
Nationwide Legal LLC
|
||||||||||||||||||||
|
Delayed Draw Term Loan
(e)(f)(g)
|
0.00 | % | 05/26/2032 | 2,183 | 2,157,008 | |||||||||||||||
|
Revolver Loan
(e)(f)(g)
|
0.00 | % | 05/26/2032 | 611 | 603,359 | |||||||||||||||
|
Term Loan
(e)(f)
|
8.26 | % | 05/26/2032 | 3,206 | 3,167,634 | |||||||||||||||
|
Netrix LLC
|
||||||||||||||||||||
|
Revolver Loan
(e)(f)(g)
|
0.00 | % | 10/31/2031 | 294 | 281,842 | |||||||||||||||
|
Term Loan A (1 mo. Term SOFR + 5.50%)
(e)(f)
|
9.19 | % | 10/31/2031 | 1,698 | 1,627,978 | |||||||||||||||
|
Plano HoldCo, Inc., Term Loan B (3 mo. Term SOFR + 3.50%)
|
7.23 | % | 10/02/2031 | 866 | 706,255 | |||||||||||||||
|
Project Dragon (Voyix Digital Banking), Term Loan B (3 mo. Term SOFR + 2.75%)
|
6.48 | % | 09/30/2031 | 912 | 727,407 | |||||||||||||||
|
Ryan LLC (Ryan Tax), Term Loan (1 mo. Term SOFR + 3.50%)
|
7.19 | % | 11/05/2032 | 1,443 | 1,450,672 | |||||||||||||||
|
Sixty Five Bidco, Ltd. (United Kingdom)
|
||||||||||||||||||||
|
Term Loan
(e)(f)
|
10.21 | % | 07/30/2032 | EUR | 1,095 | 1,240,088 | ||||||||||||||
|
Term Loan
(e)(f)
|
11.48 | % | 07/30/2032 | GBP | 622 | 822,247 | ||||||||||||||
|
Spin Holdco Inc.
|
||||||||||||||||||||
|
Term Loan (3 mo. Term SOFR + 4.25%)
|
8.01 | % | 09/04/2030 | 2,235 | 1,573,177 | |||||||||||||||
|
Term Loan B (3 mo. Term SOFR + 5.43%)
|
9.18 | % | 09/28/2030 | 765 | 790,244 | |||||||||||||||
|
Stage 3 Holdco LLC
|
||||||||||||||||||||
|
Delayed Draw Term Loan
(e)(f)(g)
|
0.00 | % | 06/30/2032 | 160 | 157,619 | |||||||||||||||
|
Revolver Loan
(e)(f)(g)
|
0.00 | % | 06/10/2032 | 64 | 63,048 | |||||||||||||||
|
Term Loan
(e)(f)
|
9.23 | % | 06/10/2032 | 319 | 315,239 | |||||||||||||||
|
UnitedLex Corp.
|
||||||||||||||||||||
|
Delayed Draw Term Loan (3 mo. Term SOFR + 6.90%)
(f)
|
10.65 | % | 09/30/2026 | 79 | 79,432 | |||||||||||||||
|
Term Loan (3 mo. Term SOFR + 5.90%)
(f)
|
9.63 | % | 03/20/2027 | 906 | 141,290 | |||||||||||||||
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
|
5
|
Invesco Dynamic Credit Opportunity Fund
|
|
Interest
Rate |
Maturity
Date |
Principal
Amount (000)
(a)
|
Value
|
|||||||||||||||||
|
Business Equipment & Services-(continued)
|
||||||||||||||||||||
|
Veritext Corp., Term Loan (1 mo. Term SOFR + 3.00%)
|
6.69 | % | 08/09/2030 | $ | 539 | $ | 533,722 | |||||||||||||
| 58,848,490 | ||||||||||||||||||||
|
Cable & Satellite Television-13.19%
|
||||||||||||||||||||
|
Altice Financing S.A.
(Altice-Int'l)
(Luxembourg)
|
||||||||||||||||||||
|
Term Loan B (3 mo. EURIBOR + 5.00%)
|
7.43 | % | 10/31/2027 | EUR | 3,028 | 2,277,265 | ||||||||||||||
|
Term Loan B (3 mo. EURIBOR + 5.00%)
|
7.43 | % | 11/01/2027 | EUR | 2,242 | 1,685,938 | ||||||||||||||
|
Atlantic Broadband Finance LLC (Cogeco), Term Loan
B-1
(1 mo. Term SOFR + 3.25%)
|
6.94 | % | 09/18/2030 | 1,131 | 927,116 | |||||||||||||||
|
Charter Communications Operating LLC, Term Loan
B-5
(1 mo. Term SOFR + 2.25%)
|
5.98 | % | 12/15/2031 | 350 | 344,829 | |||||||||||||||
|
Lightning Finco Ltd. (LiveU) (United Kingdom)
|
||||||||||||||||||||
|
Term Loan
B-1
(3 mo. Term SOFR + 5.75%)
(e)(f)
|
10.23 | % | 08/31/2028 | 18,375 | 18,375,146 | |||||||||||||||
|
Term Loan
B-2
(6 mo. EURIBOR + 5.75%)
(e)(f)
|
8.35 | % | 08/31/2028 | EUR | 1,886 | 2,190,422 | ||||||||||||||
|
SFR-Numericable
(YPSO, Altice France) (France), Term Loan
B-14
(3 mo. EURIBOR + 6.88%)
|
9.29 | % | 05/30/2031 | EUR | 5,560 | 6,546,001 | ||||||||||||||
|
Virgin Media 02 - LG (United Kingdom), Term Loan Y (6 mo. Term SOFR + 3.28%)
|
6.97 | % | 03/31/2031 | 1,518 | 1,325,836 | |||||||||||||||
| 33,672,553 | ||||||||||||||||||||
|
Chemicals & Plastics-8.30%
|
||||||||||||||||||||
|
A-Gas
Finco, Inc., Term Loan (3 mo. Term SOFR + 5.25%)
|
8.98 | % | 12/14/2029 | 1,067 | 1,017,481 | |||||||||||||||
|
Hexion International Holdings B.V., Term Loan B (1 mo. Term SOFR + 4.00%)
|
7.69 | % | 03/15/2029 | 907 | 896,314 | |||||||||||||||
|
Ineos Quattro (STYRO) (United Kingdom)
|
||||||||||||||||||||
|
Term Loan B (1 mo. EURIBOR + 4.50%)
|
6.75 | % | 04/02/2029 | EUR | 65 | 63,078 | ||||||||||||||
|
Term Loan B (1 mo. Term SOFR + 4.35%)
|
8.04 | % | 04/02/2029 | 1,243 | 1,048,198 | |||||||||||||||
|
Term Loan B (1 mo. Term SOFR + 3.85%)
|
7.54 | % | 03/14/2030 | 210 | 168,011 | |||||||||||||||
|
Ineos US Finance LLC
|
||||||||||||||||||||
|
Term Loan (1 mo. Term SOFR + 3.25%)
|
6.94 | % | 02/18/2030 | 1,647 | 1,562,051 | |||||||||||||||
|
Term Loan B (1 mo. Term SOFR + 3.00%)
|
6.69 | % | 02/07/2031 | 265 | 247,288 | |||||||||||||||
|
Matrix Adhesives
|
||||||||||||||||||||
|
Delayed Draw Term Loan
(e)(f)(g)
|
0.00 | % | 03/23/2033 | 172 | 169,880 | |||||||||||||||
|
Delayed Draw Term Loan (1 mo. Term SOFR + 4.50%)
(e)(f)
|
8.19 | % | 03/23/2033 | 388 | 384,078 | |||||||||||||||
|
Revolver Loan
(e)(f)(g)
|
0.00 | % | 03/23/2033 | 215 | 212,720 | |||||||||||||||
|
Revolver Loan (1 mo. Term SOFR + 4.50%)
(e)(f)
|
8.19 | % | 03/23/2033 | 9 | 8,863 | |||||||||||||||
|
Term Loan A (1 mo. Term SOFR + 4.50%)
(e)(f)
|
8.19 | % | 03/23/2033 | 1,213 | 1,201,448 | |||||||||||||||
|
MicroCare Holdings LLC
|
||||||||||||||||||||
|
Delayed Draw Term Loan
(e)(f)(g)
|
0.00 | % | 08/08/2031 | 604 | 604,079 | |||||||||||||||
|
Revolver Loan
(e)(f)(g)
|
0.00 | % | 08/08/2031 | 604 | 604,079 | |||||||||||||||
|
Term Loan (3 mo. Term SOFR + 5.00%)
(e)(f)
|
8.76 | % | 08/08/2031 | 3,693 | 3,693,216 | |||||||||||||||
|
Nouryon Finance B.V., Term Loan B (3 mo. Term SOFR + 3.50%)
|
7.17 | % | 07/08/2031 | 358 | 360,006 | |||||||||||||||
|
Oxea Corp. (OQ Chemicals) (Oman)
|
||||||||||||||||||||
|
Term Loan
B-1
(3 mo. EURIBOR + 4.75%)
(Acquired
10/08/2024-07/06/2026;
Cost $-3,989)
(h)
|
7.09 | % | 04/08/2031 | EUR | 29 | 22,879 | ||||||||||||||
|
Term Loan
B-2
(3 mo. Term SOFR + 4.85%)
(Acquired
03/06/2024-07/06/2026;
Cost $1,482,302)
(h)
|
8.60 | % | 04/08/2031 | 1,555 | 1,040,321 | |||||||||||||||
|
SCIL USA Holdings LLC, Term Loan B (3 mo. Term SOFR + 4.00%)
(f)
|
7.76 | % | 11/08/2032 | 817 | 823,808 | |||||||||||||||
|
V Global Holdings LLC
|
||||||||||||||||||||
|
Revolver Loan (1 mo. Term SOFR + 5.85%)
(e)(f)
|
9.88 | % | 01/02/2029 | 435 | 405,515 | |||||||||||||||
|
Revolver Loan
(e)(f)(g)
|
0.00 | % | 01/02/2029 | 411 | 383,180 | |||||||||||||||
|
Term Loan (3 mo. Term SOFR + 5.90%)
(e)(f)
|
9.63 | % | 01/02/2029 | 6,732 | 6,274,198 | |||||||||||||||
| 21,190,691 | ||||||||||||||||||||
|
Containers & Glass Products-5.37%
|
||||||||||||||||||||
|
Berlin Packaging LLC, Term Loan (3 mo. Term SOFR + 3.25%)
|
7.01 | % | 06/07/2031 | 725 | 722,878 | |||||||||||||||
|
Clydesdale Acquisition Holdings, Inc., Term Loan B (1 mo. Term SOFR + 3.25%)
|
6.94 | % | 04/01/2032 | 1,032 | 1,019,349 | |||||||||||||||
|
Consolidated Container Co. LLC, Term Loan B (1 mo. Term SOFR + 2.50%)
|
6.19 | % | 06/11/2031 | 836 | 816,931 | |||||||||||||||
|
Evaaro US Bidco (Keg Logistics + Ekeg MergeCo)
|
||||||||||||||||||||
|
Delayed Draw Term Loan
(e)(f)(g)
|
0.00 | % | 04/03/2032 | GBP | 11 | 14,954 | ||||||||||||||
|
Delayed Draw Term Loan
(e)(f)(g)
|
0.00 | % | 04/03/2032 | 273 | 269,463 | |||||||||||||||
|
Delayed Draw Term Loan
(e)(f)
|
8.73 | % | 04/03/2032 | GBP | 45 | 59,817 | ||||||||||||||
|
Revolver Loan
(e)(f)(g)
|
0.00 | % | 04/03/2032 | 222 | 218,401 | |||||||||||||||
|
Term Loan A (1 mo. Term SOFR + 5.05%)
(e)(f)
|
8.75 | % | 04/03/2032 | 1,046 | 1,031,773 | |||||||||||||||
|
Term Loan B (3 mo. GBP SONIA + 5.00%)
(e)(f)
|
8.73 | % | 04/03/2032 | GBP | 289 | 385,616 | ||||||||||||||
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
|
6
|
Invesco Dynamic Credit Opportunity Fund
|
|
Interest
Rate |
Maturity
Date |
Principal
Amount (000)
(a)
|
Value
|
|||||||||||||||||
|
Containers & Glass Products-(continued)
|
||||||||||||||||||||
|
Iris Holding, Inc. (Intertape), First Lien Term Loan (3 mo. Term SOFR + 4.85%)
|
8.67 | % | 06/28/2028 | $ | 993 | $ | 959,158 | |||||||||||||
|
Keg Logistics LLC, Revolver Loan
(e)(f)(g)
|
0.00 | % | 11/23/2027 | 1,366 | 1,366,251 | |||||||||||||||
|
Klockner (KPERST/Kleopatra) (Luxembourg), Term Loan (3 mo. EURIBOR + 7.00%)
|
5.00 | % | 01/30/2031 | EUR | 1,056 | 1,167,324 | ||||||||||||||
|
Libbey Glass LLC, Term Loan B (3 mo. Term SOFR + 6.65%)
|
||||||||||||||||||||
|
(Acquired
03/29/2024-01/23/2025;
Cost $1,871,119)
(f)(h)
|
10.49 | % | 11/22/2027 | 1,884 | 1,803,959 | |||||||||||||||
|
Mold-Rite Plastics LLC (Valcour Packaging LLC)
|
||||||||||||||||||||
|
Term Loan
A-1
(1 mo. Term SOFR + 5.25%)
|
8.91 | % | 10/04/2028 | 375 | 378,209 | |||||||||||||||
|
Term Loan
A-2
(1 mo. Term SOFR + 3.86%)
|
7.52 | % | 10/04/2028 | 954 | 787,505 | |||||||||||||||
|
Pregis Corp., Term Loan B (1 mo. Term SOFR + 3.75%)
|
7.44 | % | 02/01/2029 | 506 | 509,639 | |||||||||||||||
|
Sword Purchaser LLC, Term Loan (1 mo. Term SOFR + 4.00%)
|
7.69 | % | 04/09/2033 | 1,097 | 1,086,387 | |||||||||||||||
|
TricorBraun, Inc., Term Loan B (1 mo. Term SOFR + 3.25%)
|
6.94 | % | 03/03/2031 | 660 | 599,566 | |||||||||||||||
|
Trident TPI Holdings, Inc., First Lien Term Loan (3 mo. Term SOFR + 3.75%)
|
7.48 | % | 09/15/2028 | 533 | 523,243 | |||||||||||||||
| 13,720,423 | ||||||||||||||||||||
|
Cosmetics & Toiletries-0.49%
|
||||||||||||||||||||
|
Bausch & Lomb Corp., Term Loan (1 mo. Term SOFR + 3.75%)
|
7.44 | % | 01/15/2031 | 1,245 | 1,254,544 | |||||||||||||||
|
Ecological Services & Equipment-0.33%
|
||||||||||||||||||||
|
Groundworks LLC, Term Loan (1 mo. Term SOFR + 3.50%)
|
7.19 | % | 03/14/2031 | 846 | 849,774 | |||||||||||||||
|
Electronics & Electrical-8.41%
|
||||||||||||||||||||
|
BMC Software (Boxer/ Bladelogic), Term Loan (3 mo. Term SOFR + 2.75%)
|
6.51 | % | 07/30/2031 | 736 | 699,650 | |||||||||||||||
|
Dayforce LLC, Term Loan (3 mo. Term SOFR + 3.00%)
|
6.82 | % | 02/04/2033 | 788 | 762,849 | |||||||||||||||
|
Delta Topco, Inc. (Infoblox, Inc.), Term Loan B (3 mo. Term SOFR + 2.75%)
|
6.40 | % | 11/30/2029 | 869 | 850,082 | |||||||||||||||
|
Infinite Electronics
|
||||||||||||||||||||
|
First Lien Term Loan (3 mo. Term SOFR + 3.76%)
|
7.58 | % | 03/02/2028 | 854 | 854,504 | |||||||||||||||
|
Second Lien Term Loan (3 mo. Term SOFR + 7.26%)
|
11.08 | % | 03/02/2029 | 473 | 468,941 | |||||||||||||||
|
Instructure Holdings, Inc., Term Loan (3 mo. Term SOFR + 2.75%)
|
6.45 | % | 11/13/2031 | 1,086 | 1,045,001 | |||||||||||||||
|
ION Platform Finance US, Inc., Term Loan (3 mo. Term SOFR + 3.75%)
|
7.48 | % | 10/07/2032 | 1,950 | 1,503,016 | |||||||||||||||
|
KnowBe4 (aka Oranje MidCo. LLC), Term Loan B (3 mo. Term SOFR + 3.75%)
|
7.57 | % | 07/26/2032 | 199 | 145,642 | |||||||||||||||
|
Learning Pool (Brook Bidco Ltd.) (United Kingdom)
|
||||||||||||||||||||
|
Term Loan (6 mo. Term SOFR + 7.18%)
(f)
|
10.76 | % | 07/10/2028 | 939 | 898,641 | |||||||||||||||
|
Term Loan B (6 mo. GBP SONIA + 7.03%)
(f)
|
10.76 | % | 07/10/2028 | GBP | 702 | 909,905 | ||||||||||||||
|
Mavenir Systems, Inc., Second Lien Term Loan
(f)
|
12.00 | % | 07/26/2030 | 179 | 117,615 | |||||||||||||||
|
McAfee LLC, Term Loan B (1 mo. Term SOFR + 3.00%)
|
6.69 | % | 03/01/2029 | 1,211 | 1,149,924 | |||||||||||||||
|
Modena Buyer LLC (End User Computing), Term Loan (3 mo. Term SOFR + 4.25%)
|
8.07 | % | 07/01/2031 | 1,321 | 1,275,131 | |||||||||||||||
|
Proofpoint, Inc., Extended Term Loan (3 mo. Term SOFR + 4.50%)
|
8.25 | % | 08/31/2030 | 1,643 | 1,623,114 | |||||||||||||||
|
Quest Software US Holdings, Inc.
|
||||||||||||||||||||
|
First Lien Term Loan (3 mo. Term SOFR + 4.40%)
|
8.22 | % | 02/01/2029 | 2,037 | 1,094,904 | |||||||||||||||
|
First Lien Term Loan (3 mo. Term SOFR + 6.00%)
|
9.82 | % | 02/01/2029 | 625 | 605,883 | |||||||||||||||
|
Renaissance Holding Corp., Term Loan (1 mo. Term SOFR + 4.00%)
|
7.69 | % | 04/05/2030 | 1,758 | 1,359,680 | |||||||||||||||
|
Riverbed Technology LLC, PIK Term Loan, 3.50% PIK Rate, 6.23% Cash Rate
(i)
|
3.50 | % | 07/01/2028 | 1,649 | 750,223 | |||||||||||||||
|
SonicWall US Holdings, Inc.
|
||||||||||||||||||||
|
First Lien Term Loan (3 mo. Term SOFR + 5.00%)
|
8.74 | % | 04/26/2030 | 1,053 | 397,780 | |||||||||||||||
|
First Lien Term Loan (3 mo. Term SOFR + 7.50%)
|
11.24 | % | 04/26/2030 | 213 | 209,924 | |||||||||||||||
|
UKG, Inc., Term Loan B (3 mo. Term SOFR + 2.25%)
|
6.07 | % | 02/10/2031 | 1,103 | 1,074,225 | |||||||||||||||
|
Utimaco (SGT Ultimate BidCo GmbH) (Germany)
|
||||||||||||||||||||
|
Term Loan
B-1
(6 mo. EURIBOR + 5.50%)
(f)
|
7.95 | % | 05/31/2029 | EUR | 2,134 | 2,471,248 | ||||||||||||||
|
Term Loan
B-2
(6 mo. Term SOFR + 5.93%)
(f)
|
9.44 | % | 05/31/2029 | 1,205 | 1,201,073 | |||||||||||||||
| 21,468,955 | ||||||||||||||||||||
|
Financial Intermediaries-3.82%
|
||||||||||||||||||||
|
AnaCap (AFE S.A. SICAV-RAIF) (Italy)
|
||||||||||||||||||||
|
Delayed Draw Term Loan
(f)
|
10.50 | % | 01/01/2030 | EUR | 470 | 541,203 | ||||||||||||||
|
Delayed Draw Term Loan
(f)(g)
|
0.00 | % | 01/01/2030 | EUR | 216 | 249,165 | ||||||||||||||
|
Term Loan
(f)
|
10.50 | % | 01/01/2030 | EUR | 555 | 639,113 | ||||||||||||||
|
Term Loan (1 yr. EURIBOR + 0.02%)
(f)
|
0.02 | % | 01/15/2035 | EUR | 4,039 | 0 | ||||||||||||||
|
Term Loan B (3 mo. EURIBOR + 4.00%)
(f)
|
6.46 | % | 01/15/2030 | EUR | 5,003 | 4,948,244 | ||||||||||||||
|
Broadstreet Partners, Inc., Term Loan B (1 mo. Term SOFR + 2.50%)
|
6.19 | % | 06/13/2031 | 717 | 707,846 | |||||||||||||||
|
Citrin Cooperman Advisors LLC, Term Loan B (3 mo. Term SOFR + 3.00%)
|
6.73 | % | 04/01/2032 | 542 | 535,404 | |||||||||||||||
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
|
7
|
Invesco Dynamic Credit Opportunity Fund
|
|
Interest
Rate |
Maturity
Date |
Principal
Amount (000)
(a)
|
Value
|
|||||||||||||||||
|
Financial Intermediaries-(continued)
|
||||||||||||||||||||
|
Edelman Financial Engines Center LLC, Term Loan B (1 mo. Term SOFR + 4.75%)
|
7.69 | % | 12/01/2031 | $ | 408 | $ | 410,307 | |||||||||||||
|
Eisner Advisory Group LLC
|
||||||||||||||||||||
|
Delayed Draw Term Loan
(f)(g)
|
0.00 | % | 02/28/2031 | 269 | 269,454 | |||||||||||||||
|
Incremental Term Loan (1 mo. Term SOFR + 4.00%)
|
7.69 | % | 02/28/2031 | 588 | 583,360 | |||||||||||||||
|
Grant Thornton Advisors LLC, Incremental Term Loan B (1 mo. Term SOFR + 2.75%)
|
6.44 | % | 06/02/2031 | 917 | 877,558 | |||||||||||||||
| 9,761,654 | ||||||||||||||||||||
|
Food Products-11.86%
|
||||||||||||||||||||
|
AMCP Pet Holdings, Inc.
|
||||||||||||||||||||
|
Delayed Draw Term Loan (1 mo. Term SOFR + 8.11%)
(e)(f)
|
11.79 | % | 01/04/2028 | 189 | 189,007 | |||||||||||||||
|
Delayed Draw Term Loan
(e)(f)(g)
|
0.00 | % | 01/04/2028 | 63 | 63,002 | |||||||||||||||
|
Biscuit Holding S.A.S. (BISPOU/Cookie Acq) (France), Term Loan B (6 mo. EURIBOR + 4.00%)
|
6.50 | % | 08/14/2030 | EUR | 2,500 | 1,920,187 | ||||||||||||||
|
BrightPet (AMCP Pet Holdings, Inc.)
|
||||||||||||||||||||
|
Incremental Term Loan B 1.50% PIK Rate, 9.47% Cash Rate
(e)(f)(i)
|
1.50 | % | 10/05/2026 | 4,244 | 2,491,095 | |||||||||||||||
|
PIK Term Loan, 1.50% PIK Rate, 9.47% Cash Rate
(e)(f)(i)
|
1.50 | % | 10/05/2026 | 4,128 | 2,423,014 | |||||||||||||||
|
Revolver Loan (3 mo. Term SOFR + 7.15%)
(e)(f)
|
10.97 | % | 10/05/2026 | 1,566 | 919,236 | |||||||||||||||
|
Flora Foods (Netherlands), Term Loan
B-15
(6 mo. Term SOFR + 4.25%)
|
7.87 | % | 10/31/2030 | 1,384 | 1,347,005 | |||||||||||||||
|
Florida Food Products LLC
|
||||||||||||||||||||
|
First Lien Term Loan (3 mo. Term SOFR + 5.50%)
|
9.23 | % | 10/15/2030 | 382 | 380,206 | |||||||||||||||
|
First Lien Term Loan B (3 mo. Term SOFR + 5.50%)
|
9.23 | % | 10/15/2030 | 351 | 348,850 | |||||||||||||||
|
Second Lien Term Loan A (3 mo. Term SOFR + 5.25%)
(f)
|
8.99 | % | 10/15/2030 | 931 | 745,063 | |||||||||||||||
|
Second Lien Term Loan C (3 mo. Term SOFR + 5.25%)
(f)
|
8.99 | % | 10/15/2030 | 164 | 131,422 | |||||||||||||||
|
Second Lien Term Loan D (3 mo. Term SOFR + 5.25%)
(f)
|
8.99 | % | 10/15/2030 | 51 | 41,099 | |||||||||||||||
|
Third Lien Term Loan (3 mo. Term SOFR + 8.25%)
|
11.99 | % | 04/15/2031 | 866 | 227,285 | |||||||||||||||
|
Glacier/Iceberg Acquisitions UK Ltd. (United Kingdom), Term Loan (3 mo. EURIBOR + 4.50%)
|
7.09 | % | 02/11/2033 | EUR | 1,000 | 1,156,323 | ||||||||||||||
|
Shearer's Foods LLC, Term Loan B (1 mo. Term SOFR + 2.75%)
|
6.44 | % | 02/12/2031 | 706 | 700,915 | |||||||||||||||
|
Teasdale Foods, Inc., Term Loan (1 mo. Term SOFR + 6.35%)
(e)(f)
|
10.04 | % | 03/30/2029 | 18,084 | 13,364,063 | |||||||||||||||
|
TreeHouse Foods, Inc., Term Loan B (1 mo. Term SOFR + 3.75%)
|
7.44 | % | 02/11/2033 | 854 | 858,047 | |||||||||||||||
|
Western Smokehouse Partners
|
||||||||||||||||||||
|
Delayed Draw Term Loan
(e)(f)(g)
|
0.00 | % | 03/31/2029 | 257 | 256,147 | |||||||||||||||
|
Delayed Draw Term Loan (1 mo. Term SOFR + 5.50%)
(e)(f)
|
9.21 | % | 03/31/2029 | 85 | 85,169 | |||||||||||||||
|
Delayed Draw Term Loan (1 mo. Term SOFR + 5.50%)
(e)(f)
|
9.21 | % | 03/31/2030 | 150 | 149,003 | |||||||||||||||
|
Revolver Loan
(e)(f)(g)
|
0.00 | % | 03/31/2030 | 184 | 183,727 | |||||||||||||||
|
Term Loan (1 mo. Term SOFR + 5.50%)
(e)(f)
|
9.21 | % | 03/31/2029 | 1,024 | 1,019,465 | |||||||||||||||
|
Term Loan B (3 mo. Term SOFR + 5.50%)
(e)(f)
|
9.21 | % | 03/31/2029 | 1,305 | 1,299,345 | |||||||||||||||
| 30,298,675 | ||||||||||||||||||||
|
Food Service-0.88%
|
||||||||||||||||||||
|
BradyPLUS Holdings, LLC, Term Loan (1 mo. Term SOFR + 3.50%)
|
7.19 | % | 12/29/2032 | 1,030 | 1,019,470 | |||||||||||||||
|
Selecta Group B.V. (Switzerland)
|
||||||||||||||||||||
|
Revolver Loan (6 mo. EURIBOR + 5.50%)
|
||||||||||||||||||||
|
(Acquired
06/06/2025-12/08/2025;
Cost $1,200,111)
(f)(h)
|
8.21 | % | 08/01/2030 | EUR | 1,067 | 1,232,478 | ||||||||||||||
|
Revolver Loan
(f)(g)(h)
|
0.00 | % | 08/01/2030 | EUR | 3 | 2,992 | ||||||||||||||
| 2,254,940 | ||||||||||||||||||||
|
Forest Products-1.15%
|
||||||||||||||||||||
|
NewLife Forest Restoration LLC, Term Loan
|
||||||||||||||||||||
|
(Acquired
02/22/2022-05/29/2026;
Cost $7,100,032)
(f)(h)
|
10.00 | % | 04/10/2029 | 1,335 | 1,334,467 | |||||||||||||||
|
ProAmpac PG Borrower LLC, First Lien Term Loan (3 mo. Term SOFR + 4.00%)
|
7.82 | % | 03/07/2033 | 1,604 | 1,601,882 | |||||||||||||||
| 2,936,349 | ||||||||||||||||||||
|
Health Care-7.03%
|
||||||||||||||||||||
|
Ascend Learning LLC, Term Loan (1 mo. Term SOFR + 3.00%)
|
6.69 | % | 12/11/2028 | 890 | 890,733 | |||||||||||||||
|
Capitol Imaging Services LLC
|
||||||||||||||||||||
|
Delayed Draw Term Loan (3 mo. Term SOFR + 4.75%)
(e)(f)
|
8.75 | % | 01/03/2030 | 374 | 372,157 | |||||||||||||||
|
Incremental Delayed Draw Term Loan
(e)(f)(g)
|
0.00 | % | 01/03/2030 | 1,013 | 1,008,450 | |||||||||||||||
|
Incremental Delayed Draw Term Loan (3 mo. Term SOFR + 5.00%)
(e)(f)
|
8.82 | % | 01/03/2030 | 200 | 199,200 | |||||||||||||||
|
Incremental Term Loan (3 mo. Term SOFR + 4.75%)
(e)(f)
|
8.73 | % | 01/03/2030 | 37 | 37,257 | |||||||||||||||
|
Revolver Loan
(e)(f)(g)
|
0.00 | % | 01/03/2030 | 129 | 127,911 | |||||||||||||||
|
Term Loan B (3 mo. Term SOFR + 4.75%)
(e)(f)
|
8.75 | % | 12/31/2029 | 1,965 | 1,957,080 | |||||||||||||||
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
|
8
|
Invesco Dynamic Credit Opportunity Fund
|
|
Interest
Rate |
Maturity
Date |
Principal
Amount (000)
(a)
|
Value
|
|||||||||||||||||
|
Health Care-(continued)
|
||||||||||||||||||||
|
Cerba (Chrome Bidco) (France)
|
||||||||||||||||||||
|
Incremental Term Loan D (3 mo. EURIBOR + 5.45%)
|
||||||||||||||||||||
|
(Acquired
01/10/2024-08/23/2024;
Cost $3,269,530)
(h)
|
8.00 | % | 02/16/2029 | EUR | 3,000 | $ | 2,402,961 | |||||||||||||
|
Term Loan B (6 mo. EURIBOR + 3.70%)
(Acquired
03/13/2025-04/07/2025;
Cost $3,952,258)
(h)
|
6.25 | % | 06/30/2028 | EUR | 4,000 | 3,209,361 | ||||||||||||||
|
Gainwell Acquisition Corp., Term Loan B (3 mo. Term SOFR + 4.50%)
|
8.22 | % | 08/13/2031 | $ | 286 | 287,742 | ||||||||||||||
|
HAH Group Holding Co. (Help At Home), Term Loan B (1 mo. Term SOFR + 5.00%)
|
8.69 | % | 09/24/2031 | 665 | 623,257 | |||||||||||||||
|
Precision Medicine Group LLC, Term Loan B (3 mo. Term SOFR + 3.50%)
|
7.32 | % | 08/20/2032 | 782 | 786,004 | |||||||||||||||
|
SDB Holdco LLC (Specialty Dental Brands)
|
||||||||||||||||||||
|
Delayed Draw Term Loan (1 mo. Term SOFR + 7.11%)
(e)(f)
|
10.75 | % | 03/18/2027 | 803 | 876,618 | |||||||||||||||
|
Term Loan A (1 mo. Term SOFR + 7.11%)
(e)(f)
|
10.75 | % | 03/18/2027 | 7,179 | 4,429,358 | |||||||||||||||
|
Veterinary Practice Partners LLC
|
||||||||||||||||||||
|
Delayed Draw Term Loan
(e)(f)
|
1.68 | % | 06/30/2030 | 15 | 15,123 | |||||||||||||||
|
Delayed Draw Term Loan
(e)(f)(g)
|
0.00 | % | 06/30/2030 | 70 | 68,894 | |||||||||||||||
|
Revolver Loan
(e)(f)(g)
|
0.00 | % | 06/30/2030 | 35 | 34,926 | |||||||||||||||
|
Term Loan
(e)(f)
|
9.32 | % | 06/30/2030 | 633 | 626,962 | |||||||||||||||
| 17,953,994 | ||||||||||||||||||||
|
Home Furnishings-1.47%
|
||||||||||||||||||||
|
Hunter Douglas Holding B.V. (Netherlands), Term Loan
B-1
(3 mo. Term SOFR + 3.00%)
|
6.73 | % | 01/17/2032 | 987 | 991,379 | |||||||||||||||
|
Serta Simmons Bedding LLC
|
||||||||||||||||||||
|
First Lien Term Loan (3 mo. Term SOFR + 7.61%)
(f)
|
11.35 | % | 06/29/2028 | 119 | 118,312 | |||||||||||||||
|
Term Loan (3 mo. Term SOFR + 7.61%)
|
11.35 | % | 06/29/2028 | 1,672 | 1,576,095 | |||||||||||||||
|
Weber-Stephen Products LLC, Term Loan (3 mo. Term SOFR + 3.75%)
|
7.48 | % | 10/01/2032 | 1,078 | 1,074,286 | |||||||||||||||
| 3,760,072 | ||||||||||||||||||||
|
Industrial Equipment-6.77%
|
||||||||||||||||||||
|
80-20
|
||||||||||||||||||||
|
Delayed Draw Term Loan
(e)(f)(g)
|
0.00 | % | 12/12/2031 | 254 | 252,190 | |||||||||||||||
|
Revolver Loan
(e)(f)(g)
|
0.00 | % | 12/12/2031 | 381 | 378,286 | |||||||||||||||
|
Term Loan A (3 mo. PRIME + 4.50%)
(e)(f)
|
8.23 | % | 12/12/2031 | 1,362 | 1,352,135 | |||||||||||||||
|
Associated Spring, Incremental Term Loan (3 mo. Term SOFR + 5.50%)
(e)(f)
|
9.23 | % | 04/30/2030 | 3,500 | 3,465,000 | |||||||||||||||
|
AWP Group Holdings, Inc.
|
||||||||||||||||||||
|
Revolver Loan
(e)(f)
|
2.61 | % | 12/22/2032 | 169 | 167,899 | |||||||||||||||
|
Revolver Loan
(e)(f)(g)
|
0.00 | % | 12/22/2032 | 517 | 512,773 | |||||||||||||||
|
Term Loan
(e)(f)(k)
|
- | 12/22/2032 | 3,938 | 3,906,746 | ||||||||||||||||
|
Columbus Mckinnon Corp., Term Loan B
(k)
|
- | 01/31/2033 | 695 | 698,782 | ||||||||||||||||
|
Kantar (Summer BC Bidco/KANGRP) (Luxembourg), Term Loan B (3 mo. Term SOFR + 5.25%)
|
8.99 | % | 02/15/2029 | 385 | 324,703 | |||||||||||||||
|
LSF12 Helix Parent LLC (Hillenbrand), Term Loan B (1 mo. Term SOFR + 3.00%)
|
7.19 | % | 02/10/2033 | 786 | 786,358 | |||||||||||||||
|
Prime Power Solutions LLC, Second Lien Term Loan
(e)(f)
|
9.31 | % | 10/30/2031 | 5,000 | 4,920,000 | |||||||||||||||
|
STS Operating, Inc. (Sunsource), Term Loan (1 mo. Term SOFR + 4.11%)
|
7.79 | % | 03/25/2031 | 354 | 355,933 | |||||||||||||||
|
Tank Holding Corp., Revolver Loan
(f)(g)
|
0.00 | % | 03/31/2028 | 176 | 167,968 | |||||||||||||||
| 17,288,773 | ||||||||||||||||||||
|
Insurance-0.40%
|
||||||||||||||||||||
|
Acrisure LLC, Term Loan B (1 mo. Term SOFR + 3.25%)
|
6.94 | % | 06/21/2032 | 135 | 108,253 | |||||||||||||||
|
Acrisure LLC/Acrisure Finance, Inc., Term Loan
B-6
(1 mo. Term SOFR + 3.00%)
|
6.69 | % | 11/06/2030 | 1,053 | 898,645 | |||||||||||||||
| 1,006,898 | ||||||||||||||||||||
|
Leisure Goods, Activities & Movies-2.80%
|
||||||||||||||||||||
|
Amex GBT (Gaia Purchaser, Inc.), Term Loan B
(k)
|
- | 06/25/2033 | 700 | 705,368 | ||||||||||||||||
|
Crown Finance US, Inc., First Lien Term Loan (1 mo. Term SOFR + 4.50%)
|
8.15 | % | 12/02/2031 | 2,584 | 2,598,887 | |||||||||||||||
|
Fitness International LLC, Term Loan B (1 mo. Term SOFR + 4.50%)
|
8.19 | % | 02/12/2029 | 641 | 643,564 | |||||||||||||||
|
Tripadvisor, Inc., Term Loan B (1 mo. Term SOFR + 3.75%)
|
6.44 | % | 07/08/2031 | 245 | 237,467 | |||||||||||||||
|
VUE Cinemas (VUECIN) (United Kingdom)
|
||||||||||||||||||||
|
Second Lien Term Loan (6 mo. EURIBOR + 8.00%)
(Acquired
02/20/2024-04/08/2026;
Cost $723,833)
(f)(h)
|
10.46 | % | 12/31/2029 | EUR | 888 | 1,536,423 | ||||||||||||||
|
Term Loan (6 mo. EURIBOR + 8.00%)
(Acquired
02/20/2024-04/08/2026;
Cost $588,159)
(f)(h)
|
10.46 | % | 12/31/2027 | EUR | 548 | 949,030 | ||||||||||||||
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
|
9
|
Invesco Dynamic Credit Opportunity Fund
|
|
Interest
Rate |
Maturity
Date |
Principal
Amount (000)
(a)
|
Value
|
|||||||||||||||||
|
Leisure Goods, Activities & Movies-(continued)
|
||||||||||||||||||||
|
Vue International Bidco PLC (United Kingdom), Term Loan (6 mo. EURIBOR + 8.00%)
(Acquired
02/21/2024-04/08/2026;
Cost $257,647)
(f)(h)
|
10.46 | % | 06/30/2027 | EUR | 243 | $ | 488,843 | |||||||||||||
| 7,159,582 | ||||||||||||||||||||
|
Lodging & Casinos-2.06%
|
||||||||||||||||||||
|
Bingo Holdings I, LLC (PlayAGS), Term Loan B (3 mo. Term SOFR + 4.75%)
|
8.48 | % | 06/30/2032 | $ | 387 | 386,769 | ||||||||||||||
|
Caesars Entertainment, Inc., Term Loan
B-1
(1 mo. Term SOFR + 2.25%)
|
5.94 | % | 02/06/2031 | 345 | 333,234 | |||||||||||||||
|
Fertitta Entertainment LLC, Term Loan B (1 mo. Term SOFR + 3.25%)
|
6.94 | % | 01/27/2029 | 1,449 | 1,453,919 | |||||||||||||||
|
J&J Ventures Gaming LLC, Term Loan B (1 mo. Term SOFR + 3.50%)
|
7.19 | % | 04/26/2030 | 338 | 334,939 | |||||||||||||||
|
Ontario Gaming GTA L.P., First Lien Term Loan B
(k)
|
- | 08/01/2030 | 369 | 358,442 | ||||||||||||||||
|
Turquoise/TRQ Sales LLC, Term Loan B (3 mo. Term SOFR + 3.25%)
|
6.98 | % | 12/30/2032 | 628 | 627,247 | |||||||||||||||
|
Voyager Parent LLC, Term Loan B (3 mo. Term SOFR + 3.25%)
|
7.98 | % | 07/01/2032 | 1,766 | 1,773,140 | |||||||||||||||
| 5,267,690 | ||||||||||||||||||||
|
Oil & Gas-2.00%
|
||||||||||||||||||||
|
McDermott International, Ltd.
|
||||||||||||||||||||
|
LOC (3 mo. Term SOFR + 4.00%)
|
7.75 | % | 10/17/2026 | 1,193 | 1,166,517 | |||||||||||||||
|
LOC
(g)
|
0.00 | % | 06/30/2027 | 2,601 | 2,552,036 | |||||||||||||||
|
PIK Term Loan, 3.00% PIK Rate, 4.80% Cash Rate (1 mo. Term SOFR + 1.00%)
(i)
|
3.00 | % | 12/31/2027 | 1,240 | 1,210,573 | |||||||||||||||
|
Term Loan (1 mo. Term SOFR + 3.11%)
|
6.80 | % | 06/30/2027 | 180 | 176,104 | |||||||||||||||
| 5,105,230 | ||||||||||||||||||||
|
Publishing-1.51%
|
||||||||||||||||||||
|
Cengage Learning, Inc., Term Loan B (3 mo. Term SOFR + 3.00%)
|
6.74 | % | 03/24/2031 | 1,562 | 1,558,576 | |||||||||||||||
|
Century DE Buyer LLC (Simon & Schuster), Term Loan (3 mo. Term SOFR + 3.00%)
|
6.82 | % | 10/30/2030 | 682 | 684,417 | |||||||||||||||
|
Harbor Purchaser, Inc. (Houghton Mifflin Harcourt), First Lien Term Loan B (1 mo. Term SOFR + 5.35%)
|
9.04 | % | 04/09/2029 | 2,303 | 1,619,002 | |||||||||||||||
| 3,861,995 | ||||||||||||||||||||
|
Retailers (except Food & Drug)-0.09%
|
||||||||||||||||||||
|
PetSmart, Inc., Term Loan B (1 mo. Term SOFR + 4.00%)
|
7.69 | % | 08/18/2032 | 235 | 236,989 | |||||||||||||||
|
Surface Transport-1.36%
|
||||||||||||||||||||
|
Arcosa Marine Products, Inc.
|
||||||||||||||||||||
|
Revolver Loan
(e)(f)(g)
|
0.00 | % | 04/01/2032 | 162 | 160,714 | |||||||||||||||
|
Term Loan B (3 mo. Term SOFR + 5.00%)
(e)(f)
|
8.73 | % | 04/01/2032 | 1,027 | 1,016,518 | |||||||||||||||
|
Armstrong Transport Group
|
||||||||||||||||||||
|
Delayed Draw Term Loan
(e)(f)(g)
|
0.00 | % | 05/29/2033 | 210 | 207,645 | |||||||||||||||
|
Revolver Loan
(e)(f)
|
2.20 | % | 06/23/2033 | 29 | 28,367 | |||||||||||||||
|
Revolver Loan
(e)(f)(g)
|
0.00 | % | 06/23/2033 | 82 | 80,735 | |||||||||||||||
|
Term Loan
(e)(f)
|
8.45 | % | 05/29/2033 | 442 | 436,054 | |||||||||||||||
|
Source Holding Delaware LLC
|
||||||||||||||||||||
|
Delayed Draw Term Loan
(e)(f)(g)
|
0.00 | % | 02/07/2031 | 369 | 355,753 | |||||||||||||||
|
Delayed Draw Term Loan (3 mo. Term SOFR + 4.75%)
(e)(f)
|
8.51 | % | 02/07/2031 | 19 | 18,331 | |||||||||||||||
|
Revolver Loan
(e)(f)(g)
|
0.00 | % | 02/07/2031 | 66 | 63,618 | |||||||||||||||
|
Revolver Loan (3 mo. Term SOFR + 4.75%)
(e)(f)
|
10.50 | % | 02/07/2031 | 128 | 123,493 | |||||||||||||||
|
Term Loan A (3 mo. Term SOFR + 4.75%)
(e)(f)
|
8.49 | % | 02/07/2031 | 893 | 859,515 | |||||||||||||||
|
STG Distribution LLC, Term Loan (3 mo. Term SOFR + 6.90%)
(f)
|
10.63 | % | 07/15/2031 | 127 | 126,778 | |||||||||||||||
| 3,477,521 | ||||||||||||||||||||
|
Telecommunications-2.80%
|
||||||||||||||||||||
|
CoreWeave
|
||||||||||||||||||||
|
Delayed Draw Term Loan (1 mo. Term SOFR + 4.50%)
|
8.15 | % | 11/15/2031 | 135 | 136,209 | |||||||||||||||
|
Delayed Draw Term Loan
(g)
|
0.00 | % | 11/15/2031 | 176 | 177,964 | |||||||||||||||
|
CoreWeave Financing DDTL
V-V
LLC
|
||||||||||||||||||||
|
Delayed Draw Term Loan (1 mo. Term SOFR + 5.50%)
|
9.15 | % | 09/30/2031 | 154 | 154,788 | |||||||||||||||
|
Delayed Draw Term Loan
(g)
|
0.00 | % | 09/30/2031 | 184 | 184,631 | |||||||||||||||
|
Genesys Cloud Services Holdings I LLC, Term Loan (1 mo. Term SOFR + 2.25%)
|
6.19 | % | 01/30/2032 | 691 | 676,718 | |||||||||||||||
|
Inmarsat Finance PLC (United Kingdom), Term Loan (1 mo. Term SOFR + 4.50%)
|
8.19 | % | 09/27/2029 | 874 | 881,021 | |||||||||||||||
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
|
10
|
Invesco Dynamic Credit Opportunity Fund
|
|
Interest
Rate |
Maturity
Date |
Principal
Amount (000)
(a)
|
Value
|
|||||||||||||||||
|
Telecommunications-(continued)
|
||||||||||||||||||||
|
MLN US HoldCo LLC (dba Mitel)
|
||||||||||||||||||||
|
Term Loan
A-1
(1 mo. Term SOFR + 6.50%)(Acquired
06/25/2025-08/31/2026;
Cost $551,243)
(f)(h)
|
7.69 | % | 06/20/2028 | $ | 558 | $ | 550,322 | |||||||||||||
|
Term Loan
A-2
(1 mo. Term SOFR + 8.00%)(Acquired
06/20/2025-08/31/2026;
Cost $1,967,795)
(f)(h)
|
6.00 | % | 06/20/2030 | 2,200 | 1,925,987 | |||||||||||||||
|
ViaSat, Inc., Term Loan B (1 mo. Term SOFR + 4.61%)
|
8.27 | % | 05/30/2030 | 851 | 858,783 | |||||||||||||||
|
Windstream Services LLC, Term Loan B (1 mo. Term SOFR + 4.00%)
|
7.69 | % | 10/06/2032 | 791 | 795,056 | |||||||||||||||
|
Zayo Group Holdings, Inc., Term Loan, 0.50% PIK Rate, 6.80% Cash Rate
(i)
|
0.50 | % | 03/11/2030 | 791 | 793,013 | |||||||||||||||
| 7,134,492 | ||||||||||||||||||||
|
Utilities-0.32%
|
||||||||||||||||||||
|
Eastern Power LLC, Term Loan (3 mo. Term SOFR + 4.75%)
|
8.44 | % | 04/03/2029 | 815 | 821,028 | |||||||||||||||
|
Total Variable Rate Senior Loan Interests (Cost $338,424,830)
|
302,437,309 | |||||||||||||||||||
|
Shares
|
||||||||||||||||||||
|
Common Stocks & Other Equity Interests-14.74%
(l)
|
||||||||||||||||||||
|
Automotive-0.00%
|
||||||||||||||||||||
|
Cabonline, Class D (Acquired 10/30/2023; Cost $57,053) (Sweden)
(f)(h)
|
63,547,434 | 7 | ||||||||||||||||||
|
Cabonline, Class D1 (Acquired 10/30/2023; Cost $2) (Sweden)
(f)(h)
|
2,236,496 | 0 | ||||||||||||||||||
|
Cabonline, Class D2 (Acquired 10/31/2023; Cost $2) (Sweden)
(f)(h)
|
1,908,761 | 0 | ||||||||||||||||||
|
Muth Mirror Systems LLC
(f)
|
29,146 | 0 | ||||||||||||||||||
|
Muth Mirror Systems LLC, Wts. (Acquired 12/15/2023; Cost $0)
(e)(f)(h)
|
195,471 | 0 | ||||||||||||||||||
| 7 | ||||||||||||||||||||
|
Beverage & Tobacco-0.00%
|
||||||||||||||||||||
|
City Brewing Company LLC
(f)
|
3,052 | 0 | ||||||||||||||||||
|
Building & Development-0.97%
|
||||||||||||||||||||
|
Empire Today LLC (Acquired 05/01/2026; Cost $1,358,016)
(f)(h)
|
62,606 | 2,477,945 | ||||||||||||||||||
|
Lake at Las Vegas Joint Venture LLC, Class A
(f)
|
2,338 | 0 | ||||||||||||||||||
|
Lake at Las Vegas Joint Venture LLC, Class B (Acquired 07/15/2010; Cost $285,788)
(f)(h)
|
28 | 0 | ||||||||||||||||||
| 2,477,945 | ||||||||||||||||||||
|
Business Equipment & Services-7.68%
|
||||||||||||||||||||
|
ANVIL UK BIDCO, Ltd., Term Loan (United Kingdom)
(f)
|
40,000 | 62,000 | ||||||||||||||||||
|
Monitronics International, Inc. (Acquired
06/30/2023-12/16/2025;
Cost $2,380,776)
(f)(h)
|
122,556 | 6,602,092 | ||||||||||||||||||
|
My Alarm Center LLC, Class A (Acquired
03/09/2021-05/17/2024;
Cost $3,184,108)
(f)(h)
|
47,743 | 12,939,279 | ||||||||||||||||||
| 19,603,371 | ||||||||||||||||||||
|
Chemicals & Plastics-0.00%
|
||||||||||||||||||||
|
Flint Group (ColourOz Inv), Class A (Germany)
(f)
|
18,948 | 0 | ||||||||||||||||||
|
Containers & Glass Products-0.57%
|
||||||||||||||||||||
|
Klockner (KPERST/Kleopatra) (Luxembourg)
|
313,884 | 641,135 | ||||||||||||||||||
|
Libbey Glass LLC (Acquired
11/13/2020-09/05/2025;
Cost $344,530)
(f)(h)
|
76,695 | 807,598 | ||||||||||||||||||
| 1,448,733 | ||||||||||||||||||||
|
Electronics & Electrical-0.00%
|
||||||||||||||||||||
|
Riverbed Technology LLC, Class B (Acquired 07/03/2023; Cost $5,458)
(f)(h)
|
41,988 | 2,309 | ||||||||||||||||||
|
Robertshaw Controls Co.
(f)(h)
|
144 | 0 | ||||||||||||||||||
|
Sandvine Corp. (Acquired 06/28/2024; Cost $0)
(f)(h)
|
5,849 | 0 | ||||||||||||||||||
| 2,309 | ||||||||||||||||||||
|
Food Service-0.67%
|
||||||||||||||||||||
|
Selecta Group B.V., Class A1 (Acquired 07/31/2025; Cost $1,303,380) (Switzerland)
(f)(h)
|
11,326 | 1,356,485 | ||||||||||||||||||
|
Selecta Group B.V., Class A2 (Acquired 07/31/2025; Cost $345,121) (Switzerland)
(f)(h)
|
2,999 | 359,183 | ||||||||||||||||||
|
Teasdale Food Holdings LLC, Wts. (Acquired 03/30/2026; Cost $0)
(f)(h)
|
5,059 | 0 | ||||||||||||||||||
| 1,715,668 | ||||||||||||||||||||
|
Forest Products-0.02%
|
||||||||||||||||||||
|
NewLife Forest Restoration LLC
|
54,171 | 54,171 | ||||||||||||||||||
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
|
11
|
Invesco Dynamic Credit Opportunity Fund
|
|
Shares
|
Value
|
|||||||||||||||||||
|
Health Care-0.00%
|
||||||||||||||||||||
|
SDB Holdco LLC (Specialty Dental Brands)
(f)
|
5,863,446 | $ | 6 | |||||||||||||||||
|
Home Furnishings-0.18%
|
||||||||||||||||||||
|
Serta Simmons Bedding LLC
|
61,610 | 454,374 | ||||||||||||||||||
|
Industrial Equipment-0.00%
|
||||||||||||||||||||
|
North American Lifting Holdings, Inc. (Acquired 11/26/2013-10/27/2021;
Cost $1,576,038)
(h)
|
62,889 | 2,987 | ||||||||||||||||||
|
Leisure Goods, Activities & Movies-1.00%
|
||||||||||||||||||||
|
Crown Finance US, Inc.
|
100,722 | 2,559,397 | ||||||||||||||||||
|
VUE Cinemas (VUECIN), Class A1 (Acquired 02/20/2024; Cost $0)
(United Kingdom)
(f)(h)
|
2,084 | 0 | ||||||||||||||||||
|
VUE Cinemas (VUECIN), Class A2 (Acquired 02/20/2024; Cost $0)
(United Kingdom)
(f)(h)
|
1,026,420 | 1 | ||||||||||||||||||
|
VUE Cinemas (VUECIN), Class A3 (Acquired 02/20/2024; Cost $0)
(United Kingdom)
(f)(h)
|
638,918 | 1 | ||||||||||||||||||
|
VUE Cinemas (VUECIN), Class A4 (United Kingdom)
(f)
|
445,416 | 1 | ||||||||||||||||||
| 2,559,400 | ||||||||||||||||||||
|
Oil & Gas-1.99%
|
||||||||||||||||||||
|
McDermott International, Ltd.
(m)
|
106,979 | 470,708 | ||||||||||||||||||
|
McDermott International, Ltd. (Bermuda)
|
1,042,384 | 4,586,490 | ||||||||||||||||||
|
Samson Investment Co., Class A (Acquired 03/01/2017; Cost $2,932,743)
(f)(h)
|
163,748 | 11,462 | ||||||||||||||||||
|
Tribune Resources LLC
(f)
|
376,237 | 26,336 | ||||||||||||||||||
| 5,094,996 | ||||||||||||||||||||
|
Radio & Television-0.00%
|
||||||||||||||||||||
|
iHeartMedia, Inc., Class B
(f)
|
42 | 142 | ||||||||||||||||||
|
Surface Transport-0.96%
|
||||||||||||||||||||
|
Commercial Barge Line Co. (Acquired
02/15/2018-02/06/2020;
Cost $743,133)
(f)(h)
|
8,956 | 922,244 | ||||||||||||||||||
|
Commercial Barge Line Co., Series B, Wts., expiring 04/30/2045 (Acquired 08/20/2026; Cost $18,460)
(h)
|
29,536 | 18,460 | ||||||||||||||||||
|
Commercial Barge Line Co., Wts., expiring 04/27/2045 (Acquired
02/15/2018-02/06/2020;
Cost $781,183)
(f)(h)
|
9,414 | 969,407 | ||||||||||||||||||
|
STG Distribution LLC (Acquired 07/08/2026; Cost $522,923)
(f)(h)
|
66,695 | 542,392 | ||||||||||||||||||
| 2,452,503 | ||||||||||||||||||||
|
Telecommunications-0.70%
|
||||||||||||||||||||
|
MLN US HoldCo. LLC (dba Mitel)
(f)
|
263,002 | 1,780,524 | ||||||||||||||||||
|
Total Common Stocks & Other Equity Interests (Cost $58,979,714)
|
37,647,136 | |||||||||||||||||||
|
Interest
Rate |
Maturity
Date |
Principal
Amount
(000)
(a)
|
||||||||||||||||||
|
Non-U.S.
Dollar Denominated Bonds & Notes-3.15%
(n)
|
||||||||||||||||||||
|
Automotive-0.40%
|
||||||||||||||||||||
|
Cabonline Group Holding AB (Sweden) (Acquired 10/13/2023; Cost $169,681)
(f)(h)(o)
|
10.00 | % | 03/19/2028 | SEK | 1,909 | 191,919 | ||||||||||||||
|
Cabonline Group Holding AB (Sweden) (Acquired 10/12/2023; Cost $347,109)
(f)(h)(j)(o)
|
0.00 | % | 03/19/2028 | SEK | 3,818 | 382,922 | ||||||||||||||
|
Cabonline Group Holding AB (Sweden) (Acquired 03/24/2022; Cost $784,118)
(f)(h)(j)(o)
|
0.00 | % | 04/19/2029 | SEK | 7,380 | 460,196 | ||||||||||||||
| 1,035,037 | ||||||||||||||||||||
|
Financial Intermediaries-2.28%
|
||||||||||||||||||||
|
Sherwood Financing PLC (United Kingdom) (3 mo. EURIBOR + 5.50%)
(o)(p)
|
7.90 | % | 12/15/2029 | EUR | 3,000 | 3,493,767 | ||||||||||||||
|
Sherwood Financing PLC (United Kingdom) (3 mo. EURIBOR + 5.50%)
(o)(p)
|
7.90 | % | 12/15/2029 | EUR | 2,000 | 2,329,178 | ||||||||||||||
| 5,822,945 | ||||||||||||||||||||
|
Food Service-0.47%
|
||||||||||||||||||||
|
Selecta Group B.V. (Switzerland)
(f)
|
15.00 | % | 10/01/2030 | EUR | 1,057 | 1,190,201 | ||||||||||||||
|
Total
Non-U.S.
Dollar Denominated Bonds & Notes (Cost $7,984,217)
|
8,048,183 | |||||||||||||||||||
|
Shares
|
||||||||||||||||||||
|
Preferred Stocks-3.07%
(l)
|
||||||||||||||||||||
|
Health Care-0.00%
|
||||||||||||||||||||
|
SDB Holdco LLC (Specialty Dental Brands), Pfd.
(f)
|
2,844,928 | 3 | ||||||||||||||||||
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
|
12
|
Invesco Dynamic Credit Opportunity Fund
|
|
Shares
|
Value
|
|||||||||||||||
|
Insurance-0.18%
|
||||||||||||||||
|
Pinion Insurance Group, Pfd.
(e)(f)
|
459,511 | $ | 459,511 | |||||||||||||
|
Oil & Gas-0.00%
|
||||||||||||||||
|
Southcross Energy Partners L.P., Pfd. (Acquired
05/07/2019-05/09/2019;
Cost $285,287)
(f)(h)
|
288,393 | 1,702 | ||||||||||||||
|
Surface Transport-2.89%
|
||||||||||||||||
|
Commercial Barge Line Co., Series B, Pfd. (Acquired
02/05/2020-10/27/2020;
Cost $978,436)
(f)(h)
|
42,058 | 4,330,922 | ||||||||||||||
|
Commercial Barge Line Co., Series B, Pfd.,Wts., expiring 04/27/2045
(Acquired
02/05/2020-10/27/2020;
Cost $687,140)
(f)(h)
|
29,536 | 3,041,470 | ||||||||||||||
| 7,372,392 | ||||||||||||||||
|
Total Preferred Stocks (Cost $3,290,880)
|
7,833,608 | |||||||||||||||
|
Interest
Rate
|
Maturity
Date
|
Principal
Amount
(000)
(a)
|
||||||||||||||
|
U.S. Dollar Denominated Bonds & Notes-1.17%
|
||||||||||||||||
|
Air Transport-0.13%
|
||||||||||||||||
|
WestJet, An Alberta Partnership (Canada)
(o)
|
8.00 | % | 02/14/2031 | $ | 345 | 332,296 | ||||||||||
|
Brokers, Dealers & Investment Houses-0.01%
|
||||||||||||||||
|
First Eagle Holdings, Inc.
(o)
|
7.25 | % | 08/15/2032 | 32 | 32,674 | |||||||||||
|
Building & Development-0.11%
|
||||||||||||||||
|
Signal Parent, Inc. (Acquired
09/11/2023-09/27/2023;
Cost $447,189)
(f)(h)(o)
|
6.13 | % | 04/01/2029 | 564 | 287,640 | |||||||||||
|
Chemicals & Plastics-0.01%
|
||||||||||||||||
|
BASF Coatings
(o)
|
7.13 | % | 06/15/2033 | 32 | 32,537 | |||||||||||
|
Containers & Glass Products-0.06%
|
||||||||||||||||
|
Sword Purchaser LLC
(o)
|
8.25 | % | 04/15/2033 | 149 | 154,310 | |||||||||||
|
Electronics & Electrical-0.17%
|
||||||||||||||||
|
ION Platform Finance US, Inc.
(o)
|
7.88 | % | 09/30/2032 | 243 | 192,234 | |||||||||||
|
ION Platform Finance US, Inc./ION Platform Finance S.a.r.l.
(o)
|
9.00 | % | 08/01/2029 | 261 | 238,877 | |||||||||||
| 431,111 | ||||||||||||||||
|
Food Products-0.32%
|
||||||||||||||||
|
Industrial F&B Investments III, Inc.
(o)
|
7.75 | % | 02/11/2033 | 107 | 108,308 | |||||||||||
|
Viking Baked Goods Acquisition Corp.
(o)
|
8.63 | % | 11/01/2031 | 702 | 704,492 | |||||||||||
| 812,800 | ||||||||||||||||
|
Health Care-0.04%
|
||||||||||||||||
|
HAH Group Holding Co. LLC
(o)
|
9.75 | % | 10/01/2031 | 100 | 94,954 | |||||||||||
|
Industrial Equipment-0.11%
|
||||||||||||||||
|
Columbus McKinnon Corp.
(o)
|
7.13 | % | 02/01/2033 | 268 | 271,346 | |||||||||||
|
Leisure Goods, Activities & Movies-0.02%
|
||||||||||||||||
|
Gaia Purchaser, Inc.
(o)
|
7.63 | % | 07/15/2033 | 64 | 65,383 | |||||||||||
|
Retailers (except Food & Drug)-0.19%
|
||||||||||||||||
|
PetSmart LLC/PetSmart Finance Corp.
(o)
|
7.50 | % | 09/15/2032 | 470 | 474,783 | |||||||||||
|
Total U.S. Dollar Denominated Bonds & Notes (Cost $3,206,383)
|
2,989,834 | |||||||||||||||
|
TOTAL INVESTMENTS IN SECURITIES-140.54% (Cost $411,886,024)
|
358,956,070 | |||||||||||||||
|
BORROWINGS-(37.20)%
|
(95,000,000 | ) | ||||||||||||||
|
OTHER ASSETS LESS LIABILITIES-(3.34)%
|
(8,550,294 | ) | ||||||||||||||
|
NET ASSETS-100.00%
|
$ | 255,405,776 | ||||||||||||||
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
|
13
|
Invesco Dynamic Credit Opportunity Fund
|
| Investment Abbreviations: | ||
| DIP |
-
Debtor-in-Possession
|
|
| EUR | - Euro | |
| EURIBOR | - Euro Interbank Offered Rate | |
| GBP | - British Pound Sterling | |
| LOC | - Letter of Credit | |
| Pfd. | - Preferred | |
| PIK |
-
Pay-in-Kind
|
|
| SEK | - Swedish Krona | |
| SOFR | - Secured Overnight Financing Rate | |
| SONIA | - Sterling Overnight Index Average | |
| Wts. | - Warrants | |
Notes to Consolidated Schedule of Investments:
|
(a)
|
Principal amounts are denominated in U.S. dollars unless otherwise noted.
|
|
(b)
|
Variable rate senior loan interests often require prepayments from excess cash flow or permit the borrower to repay at its election. The degree to which borrowers repay, whether as a contractual requirement or at their election, cannot be predicted with any accuracy. As a result, the actual remaining maturity may be substantially less than the stated maturities shown. However, it is anticipated that the variable rate senior loan interests will have an expected average life of three to five years.
|
|
(c)
|
Variable rate senior loan interests are, at present, not readily marketable, not registered under the Securities Act of 1933, as amended (the "1933 Act") and may be subject to contractual and legal restrictions on sale. Variable rate senior loan interests in the Fund's portfolio generally have variable rates which adjust to a base, such as the Secured Overnight Financing Rate ("SOFR"), on set dates, typically every 30 days, but not greater than one year, and/or have interest rates that float at margin above a widely recognized base lending rate such as the Prime Rate of a designated U.S. bank.
|
|
(d)
|
Calculated as a percentage of net assets. Amounts in excess of 100% are due to the Fund's use of leverage.
|
|
(e)
|
Acquired through direct lending. Direct loans may be subject to liquidity and interest rate risk and certain direct loans may be deemed illiquid.
|
|
(f)
|
Security valued using significant unobservable inputs (Level 3). See Note 3.
|
|
(g)
|
All or a portion of this holding is subject to unfunded loan commitments. Interest rate will be determined at the time of funding. See Note 7.
|
|
(h)
|
Restricted security. The aggregate value of these securities at August 31, 2026 was $65,238,683, which represented 25.54% of the Fund's Net Assets.
|
|
(i)
|
All or a portion of this security is
Pay-in-Kind.
Pay-in-Kind
securities pay interest income in the form of securities.
|
|
(j)
|
Defaulted security. Currently, the issuer is in default with respect to principal and/or interest payments. The aggregate value of these securities at August 31, 2026 was $14,021,524, which represented 5.55% of the Fund's Net Assets.
|
|
(k)
|
This variable rate interest will settle after August 31, 2026, at which time the interest rate will be determined.
|
|
(l)
|
Securities acquired through the restructuring of senior loans.
|
|
(m)
|
Non-income
producing security.
|
|
(n)
|
Foreign denominated security. Principal amount is denominated in the currency indicated.
|
|
(o)
|
Security purchased or received in a transaction exempt from registration under the 1933 Act. The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at August 31, 2026 was $9,847,816, which represented 3.86% of the Fund's Net Assets.
|
|
(p)
|
Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on August 31, 2026.
|
Affiliated holding. Affiliated holdings are investments in entities which are under common ownership or control of Invesco Ltd. or are investments in entities in which the Fund owns 5% or more of the outstanding voting securities. The table below shows the Fund's transactions in, and earnings from, its investments in affiliates for the six months ended August 31, 2026.
|
Value
February 28, 2026 |
Purchases
at Cost |
Proceeds
from Sales |
Change in
Unrealized Appreciation |
Realized
Gain |
Value
August 31, 2026 |
Dividend Income
|
||||||||||||||||||||||
|
Investments in Affiliated Money Market Funds:
|
||||||||||||||||||||||||||||
|
Invesco Government & Agency Portfolio, Institutional Class
|
$- | $ | 17,538,239 | $ | (17,538,239 | ) | $- | $- | $- | $(24,734 | ) | |||||||||||||||||
|
Invesco Treasury Portfolio, Institutional Class
|
- | 11,692,160 | (11,692,160 | ) | - | - | - | 2,861 | ||||||||||||||||||||
|
Total
|
$- | $ | 29,230,399 | $ | (29,230,399 | ) | $- | $- | $- | $(21,873 | ) | |||||||||||||||||
The aggregate value of securities considered illiquid at August 31, 2026 was $123,145,510, which represented 48.22% of the Fund's Net Assets.
Open Forward Foreign Currency Contracts
|
Settlement
|
Contract to
|
Unrealized
Appreciation
|
||||||||||||||||||||
|
Date
|
Counterparty
|
Deliver
|
Receive
|
(Depreciation)
|
||||||||||||||||||
|
Currency Risk
|
||||||||||||||||||||||
| 09/08/2026 | Bank Of America | USD | 27,896 | GBP | 20,775 | $ | 254 | |||||||||||||||
| 09/28/2026 | BNP Paribas S.A. | USD | 869,363 | EUR | 750,000 | 2,682 | ||||||||||||||||
| 09/28/2026 | JP Morgan Chase Bank | USD | 926,061 | EUR | 798,844 | 2,776 | ||||||||||||||||
| 10/30/2026 | JP Morgan Chase Bank | EUR | 46,584,247 | USD | 54,464,489 | 232,683 | ||||||||||||||||
| 09/28/2026 | Royal Bank of Canada | SEK | 114,526 | USD | 12,082 | 108 | ||||||||||||||||
| 10/30/2026 | Royal Bank of Canada | SEK | 14,331,748 | USD | 1,514,827 | 13,584 | ||||||||||||||||
| 10/30/2026 | State Street Bank & Trust Co. | USD | 315,648 | SEK | 3,023,982 | 1,112 | ||||||||||||||||
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
|
14
|
Invesco Dynamic Credit Opportunity Fund
|
|
Open Forward Foreign Currency Contracts-(continued)
|
||||||||||||||||||||||
|
Settlement
|
Contract to
|
Unrealized
Appreciation |
||||||||||||||||||||
|
Date
|
Counterparty
|
Deliver
|
Receive
|
(Depreciation)
|
||||||||||||||||||
|
10/30/2026
|
Toronto Dominion Bank | GBP | 1,091,046 | USD | 1,487,059 | $ | 8,537 | |||||||||||||||
|
Subtotal-Appreciation
|
261,736 | |||||||||||||||||||||
|
Currency Risk
|
||||||||||||||||||||||
|
09/08/2026
|
Bank Of America | EUR | 1,652,965 | USD | 1,904,460 | (16,000 | ) | |||||||||||||||
|
09/08/2026
|
Bank Of America | GBP | 4,527,420 | USD | 6,079,181 | (55,457 | ) | |||||||||||||||
|
09/28/2026
|
BNP Paribas S.A. | EUR | 47,544,175 | USD | 54,243,101 | (1,037,739 | ) | |||||||||||||||
|
09/08/2026
|
Goldman Sachs & Co. | EUR | 311 | USD | 358 | (3 | ) | |||||||||||||||
|
09/28/2026
|
JP Morgan Chase Bank | EUR | 588,916 | USD | 684,066 | (682 | ) | |||||||||||||||
|
09/28/2026
|
JP Morgan Chase Bank | GBP | 11,257 | USD | 15,226 | (28 | ) | |||||||||||||||
|
09/28/2026
|
JP Morgan Chase Bank | USD | 54,399,727 | EUR | 46,584,246 | (235,020 | ) | |||||||||||||||
|
09/28/2026
|
Morgan Stanley | SEK | 14,078,839 | USD | 1,454,307 | (17,802 | ) | |||||||||||||||
|
09/28/2026
|
Royal Bank of Canada | GBP | 1,079,789 | USD | 1,439,258 | (23,897 | ) | |||||||||||||||
|
09/28/2026
|
Royal Bank of Canada | SEK | 138,383 | USD | 14,357 | (113 | ) | |||||||||||||||
|
09/28/2026
|
Royal Bank of Canada | USD | 1,512,195 | SEK | 14,331,748 | (13,640 | ) | |||||||||||||||
|
09/28/2026
|
Toronto Dominion Bank | USD | 1,487,033 | GBP | 1,091,046 | (8,625 | ) | |||||||||||||||
|
Subtotal-Depreciation
|
(1,409,006 | ) | ||||||||||||||||||||
|
Total Forward Foreign Currency Contracts
|
$(1,147,270 | ) | ||||||||||||||||||||
|
Abbreviations:
|
||
| EUR | - Euro | |
| GBP | - British Pound Sterling | |
| SEK | - Swedish Krona | |
| USD | - U.S. Dollar | |
Portfolio Composition
†
By credit quality, based on total investments
as of August 31, 2026
|
BBB-
|
0.10 | % | ||
|
BB+
|
0.09 | |||
|
BB
|
0.26 | |||
|
BB-
|
1.14 | |||
|
B+
|
3.41 | |||
|
B
|
14.01 | |||
|
B-
|
7.37 | |||
|
CCC+
|
5.64 | |||
|
CCC
|
2.1 | |||
|
CCC-
|
1.74 | |||
|
Non-Rated
|
51.49 | |||
|
Equity
|
12.65 | |||
|
†
|
Source: S&P Global Ratings. A credit rating is an assessment provided by a nationally recognized statistical rating organization of the creditworthiness of an issuer with respect to debt obligations, including specific securities, money market instruments or other debts. Ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest); ratings are subject to change without notice. "Non- Rated" indicates the debtor was not rated, and should not be interpreted as indicating low quality. For more information on S&P Global Ratings' rating methodology, please visit spglobal.com and select "Understanding Credit Ratings" under About Ratings on the homepage.
|
Excluding money market fund holdings, if any.
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
|
15
|
Invesco Dynamic Credit Opportunity Fund
|
Consolidated Statement of Assets and Liabilities
August 31, 2026
(Unaudited)
|
Assets:
|
||||
|
Investments in unaffiliated securities, at value (Cost $411,886,024)
|
$ | 358,956,070 | ||
|
Other investments:
|
||||
|
Unrealized appreciation on forward foreign currency contracts outstanding
|
261,736 | |||
|
Cash
|
6,589,774 | |||
|
Foreign currencies, at value (Cost $2,852,641)
|
2,860,355 | |||
|
Receivable for:
|
||||
|
Investments sold
|
5,599,369 | |||
|
Fund shares sold
|
49,557 | |||
|
Interest
|
7,914,962 | |||
|
Investments matured, at value (Cost $89,567)
|
36,722 | |||
|
Investment for trustee deferred compensation and retirement plans
|
44,359 | |||
|
Other assets
|
143,036 | |||
|
Total assets
|
382,455,940 | |||
|
Liabilities:
|
||||
|
Other investments:
|
||||
|
Unrealized depreciation on forward foreign currency contracts outstanding
|
1,409,006 | |||
|
Payable for:
|
||||
|
Borrowings
|
95,000,000 | |||
|
Investments purchased
|
3,932,855 | |||
|
Dividends
|
1,723,917 | |||
|
Accrued fees to affiliates
|
87,000 | |||
|
Accrued interest expense
|
181,332 | |||
|
Accrued trustees' and officers' fees and benefits
|
4,375 | |||
|
Accrued other operating expenses
|
233,557 | |||
|
Trustee deferred compensation and retirement plans
|
44,359 | |||
|
Unfunded loan commitments
|
24,433,763 | |||
|
Total liabilities
|
127,050,164 | |||
|
Net assets applicable to shares outstanding
|
$ | 255,405,776 | ||
|
Net assets consist of:
|
||||
|
Shares of beneficial interest
|
$ | 464,058,295 | ||
|
Distributable earnings (loss)
|
(208,652,519 | ) | ||
| $ | 255,405,776 | |||
|
Net Assets:
|
||||
|
Class A
|
$ | 864,847 | ||
|
Class AX
|
$ | 120,262,369 | ||
|
Class Y
|
$ | 899,234 | ||
|
Class R6
|
$ | 133,379,326 | ||
|
Shares outstanding, no par value, with an unlimited number of shares authorized:
|
||||
|
Class A
|
90,815 | |||
|
Class AX
|
12,631,994 | |||
|
Class Y
|
94,344 | |||
|
Class R6
|
13,997,471 | |||
|
Class A:
|
||||
|
Net asset value per share
|
$ | 9.52 | ||
|
Maximum offering price per share
|
||||
|
(Net asset value of $9.52 ÷ 96.75%)
|
$ | 9.84 | ||
|
Class AX:
|
||||
|
Net asset value and offering price per share
|
$ | 9.52 | ||
|
Class Y:
|
||||
|
Net asset value and offering price per share
|
$ | 9.53 | ||
|
Class R6:
|
||||
|
Net asset value and offering price per share
|
$ | 9.53 | ||
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
|
16
|
Invesco Dynamic Credit Opportunity Fund
|
Consolidated Statement of Operations
For the six months ended August 31, 2026
(Unaudited)
|
Investment income:
|
||||
|
Interest
|
$ | 12,746,268 | ||
|
Dividends
|
1,178,241 | |||
|
Dividends from affiliated money market funds
|
(21,873 | ) | ||
|
Pay-in-kind
interest income
|
2,995,609 | |||
|
Total investment income
|
16,898,245 | |||
|
Expenses:
|
||||
|
Advisory fees
|
2,200,748 | |||
|
Administrative services fees
|
17,423 | |||
|
Custodian fees
|
21,235 | |||
|
Distribution fees:
Class A
|
1,102 | |||
|
Interest, facilities and maintenance fees
|
3,087,364 | |||
|
Transfer agent fees
|
96,115 | |||
|
Transfer agent fees - R6
|
19,743 | |||
|
Trustees' and officers' fees and benefits
|
12,105 | |||
|
Registration and filing fees
|
27,935 | |||
|
Reports to shareholders
|
55,871 | |||
|
Professional services fees
|
237,584 | |||
|
Other
|
19,694 | |||
|
Total expenses
|
5,796,919 | |||
|
Less: Fees waived and/or expenses reimbursed
|
(265 | ) | ||
|
Net expenses
|
5,796,654 | |||
|
Net investment income
|
11,101,591 | |||
|
Realized and unrealized gain (loss) from:
|
||||
|
Net realized gain (loss) from:
|
||||
|
Unaffiliated investment securities
|
(15,554,868 | ) | ||
|
Foreign currencies
|
(72,346 | ) | ||
|
Forward foreign currency contracts
|
3,533,234 | |||
| (12,093,980 | ) | |||
|
Change in net unrealized appreciation (depreciation) of:
|
||||
|
Unaffiliated investment securities
|
1,603,975 | |||
|
Foreign currencies
|
1,835 | |||
|
Forward foreign currency contracts
|
(2,011,450 | ) | ||
| (405,640 | ) | |||
|
Net realized and unrealized gain (loss)
|
(12,499,620 | ) | ||
|
Net increase (decrease) in net assets resulting from operations
|
$ | (1,398,029 | ) | |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
|
17
|
Invesco Dynamic Credit Opportunity Fund
|
Consolidated Statement of Changes in Net Assets
For the six months ended August 31, 2026 and the year ended February 28, 2026
(Unaudited)
|
August 31,
2026
|
February 28,
2026
|
|||||||
|
Operations:
|
||||||||
|
Net investment income
|
$ | 11,101,591 | $ | 22,685,937 | ||||
|
Net realized gain (loss)
|
(12,093,980 | ) | (25,325,603 | ) | ||||
|
Change in net unrealized appreciation (depreciation)
|
(405,640 | ) | 11,577,168 | |||||
|
Net increase (decrease) in net assets resulting from operations
|
(1,398,029 | ) | 8,937,502 | |||||
|
Distributions to shareholders from distributable earnings:
|
||||||||
|
Class A
|
(43,307 | ) | (54,162 | ) | ||||
|
Class AX
|
(6,465,302 | ) | (15,714,863 | ) | ||||
|
Class Y
|
(39,476 | ) | (29,602 | ) | ||||
|
Class R6
|
(6,570,751 | ) | (9,444,067 | ) | ||||
|
Total distributions from distributable earnings
|
(13,118,836 | ) | (25,242,694 | ) | ||||
|
Return of capital:
|
||||||||
|
Class A
|
- | (4,921 | ) | |||||
|
Class AX
|
- | (1,427,662 | ) | |||||
|
Class Y
|
- | (2,689 | ) | |||||
|
Class R6
|
- | (857,974 | ) | |||||
|
Total distributions
|
(13,118,836 | ) | (27,535,940 | ) | ||||
|
Share transactions-net:
|
||||||||
|
Class A
|
(24,190 | ) | 730,225 | |||||
|
Class AX
|
(12,126,145 | ) | (26,439,768 | ) | ||||
|
Class Y
|
143,478 | 802,992 | ||||||
|
Class R6
|
25,611,400 | 37,723,019 | ||||||
|
Net increase in net assets resulting from share transactions
|
13,604,543 | 12,816,468 | ||||||
|
Net increase (decrease) in net assets
|
(912,322 | ) | (5,781,970 | ) | ||||
|
Net assets:
|
||||||||
|
Beginning of period
|
256,318,098 | 262,100,068 | ||||||
|
End of period
|
$ | 255,405,776 | $ | 256,318,098 | ||||
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
|
18
|
Invesco Dynamic Credit Opportunity Fund
|
Consolidated Statement of Cash Flows
For the six months ended August 31, 2026
(Unaudited)
|
Cash provided by (used in) operating activities:
|
||||
|
Net increase (decrease) in net assets resulting from operations
|
$ | (1,398,029 | ) | |
|
Adjustments to reconcile the change in net assets from operations to net cash provided by (used in) operating activities:
|
||||
|
Purchases of investments
|
(94,328,730 | ) | ||
|
Proceeds from sales of investments
|
64,123,683 | |||
|
Purchases of short-term investments, net
|
(6,954,306 | ) | ||
|
Amortization (accretion) of premiums and discounts, net
|
(1,054,214 | ) | ||
|
Net realized loss from investment securities
|
15,554,868 | |||
|
Net change in unrealized appreciation on investment securities
|
(1,603,975 | ) | ||
|
Net change in unrealized depreciation on forward foreign currency contracts and foreign currency
|
1,984,463 | |||
|
Change in operating assets and liabilities:
|
||||
|
Increase in receivables and other assets
|
(105,510 | ) | ||
|
Decrease in accrued expenses and other payables
|
(548,601 | ) | ||
|
Net cash provided by (used in) operating activities
|
(24,330,351 | ) | ||
|
Cash provided by financing activities:
|
||||
|
Dividends paid to shareholders from distributable earnings
|
(10,388,555 | ) | ||
|
Proceeds from shares of beneficial interest sold
|
25,665,019 | |||
|
Disbursements from shares of beneficial interest reacquired
|
(14,637,554 | ) | ||
|
Proceeds from borrowings
|
57,000,000 | |||
|
Repayment from borrowings
|
(32,000,000 | ) | ||
|
Net cash provided by financing activities
|
25,638,910 | |||
|
Cash impact from foreign exchange fluctuations:
|
||||
|
Net change in appreciation on foreign currency
|
$ | 26,987 | ||
|
Net increase in cash and cash equivalents
|
1,335,546 | |||
|
Cash and cash equivalents at beginning of period
|
8,114,583 | |||
|
Cash and cash equivalents at end of period
|
$ | 9,450,129 | ||
|
Non-cash
financing activities:
|
||||
|
Value of shares of beneficial interest issued in reinvestment of dividends paid to shareholders
|
$ | 2,598,001 | ||
|
Supplemental disclosure of cash flow information:
|
||||
|
Cash paid during the period for taxes
|
$ | 17,090 | ||
|
Cash paid during the period for interest, facilities and maintenance fees
|
$ | 3,290,453 | ||
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
|
19
|
Invesco Dynamic Credit Opportunity Fund
|
Consolidated Financial Highlights
(Unaudited)
The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
|
Class A
|
Six Months Ended
August 31,
2026
|
Years Ended
February 28,
|
Year Ended
February 29,
2024
|
Year Ended
February 28,
2023
|
Period Ended
February 28,
2022
(a)
|
|||||||||||||||||||
|
2026
|
2025
|
|||||||||||||||||||||||
|
Net asset value, beginning of period
|
$ 10.05 | $ 10.86 | $ 11.18 | $ 11.24 | $ 12.27 | $ 12.46 | ||||||||||||||||||
|
Net investment income
(b)
|
0.41 | 0.92 | 1.24 | 1.21 | 0.79 | 0.85 | ||||||||||||||||||
|
Net gains (losses) on securities (both realized and unrealized)
|
(0.46 | ) | (0.40 | ) | (0.35 | ) | (0.14 | ) | (0.92 | ) | (0.90 | ) | ||||||||||||
|
Total from investment operations
|
(0.05 | ) | 0.52 | 0.89 | 1.07 | (0.13 | ) | (0.05 | ) | |||||||||||||||
|
Less:
|
||||||||||||||||||||||||
|
Less: Dividends from net investment income
|
(0.48 | ) | (1.23 | ) | (1.21 | ) | (1.13 | ) | (0.90 | ) | (0.14 | ) | ||||||||||||
|
Return of capital
|
- | (0.10 | ) | - | - | - | - | |||||||||||||||||
|
Total distributions
|
(0.48 | ) | (1.33 | ) | (1.21 | ) | (1.13 | ) | (0.90 | ) | (0.14 | ) | ||||||||||||
|
Net asset value, end of period
|
$ 9.52 | $ 10.05 | $ 10.86 | $ 11.18 | $ 11.24 | $ 12.27 | ||||||||||||||||||
|
Total return at net asset value
(c)
|
(0.47 | )% | 4.82 | % | 8.28 | % | 9.92 | % | (1.03 | )% | (0.38 | )% | ||||||||||||
|
Net assets, end of period (000's omitted)
|
$ 865 | $ 936 | $ 258 | $ 137 | $ 91 | $ 12 | ||||||||||||||||||
|
Portfolio turnover rate
(d)
|
17 | % | 35 | % | 27 | % | 27 | % | 22 | % | 96 | % | ||||||||||||
|
Ratios/supplemental data based on average net assets:
|
||||||||||||||||||||||||
|
Ratio of expenses:
|
||||||||||||||||||||||||
|
With fee waivers and/or expense reimbursements
|
4.78 |
%
(e)(f)
|
4.27 | % | 4.25 | % | 4.40 |
%
(f)
|
4.27 |
%
(f)
|
2.84 |
%
(e)(f)
|
||||||||||||
|
With fee waivers and/or expense reimbursements excluding interest, facilities and maintenance fees
|
2.40 |
%
(e)
|
2.38 | % | 2.32 | % | 2.34 | % | 2.37 | % | 2.32 |
%
(e)
|
||||||||||||
|
Without fee waivers and/or expense reimbursements
|
4.78 |
%
(e)
|
4.28 | % | 4.26 | % | 4.40 | % | 4.27 | % | 2.84 |
%
(e)
|
||||||||||||
|
Ratio of net investment income
|
8.25 |
%
(e)
|
8.76 | % | 11.31 | % | 10.87 | % | 7.06 | % | 4.91 |
%
(e)
|
||||||||||||
|
Senior indebtedness:
|
||||||||||||||||||||||||
|
Total borrowings (000's omitted)
|
$95,000 | $70,000 | $64,500 | $87,000 | $136,000 | $217,000 | ||||||||||||||||||
|
Asset coverage per $1,000 unit of senior indebtedness
(g)
|
$ 3,688 | $ 4,662 | $ 5,064 | $ 5,080 | $ 4,132 | $ 3,867 | ||||||||||||||||||
|
(a)
|
Commencement date of November 1, 2021.
|
|
(b)
|
Calculated using average shares outstanding.
|
|
(c)
|
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. Does not include sales charges and is not annualized for periods less than one year, if applicable.
|
|
(d)
|
Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. Calculation includes the proceeds from principal repayments and sales of variable rate senior loan interests.
|
|
(e)
|
Annualized.
|
|
(f)
|
Includes fee waivers which were less than 0.005% per share.
|
|
(g)
|
Calculated by subtracting the Fund's total liabilities (not including the Borrowings) from the Fund's total assets and dividing by the total number of senior indebtedness units, where one unit equals $1,000 of senior indebtedness.
|
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
|
20
|
Invesco Dynamic Credit Opportunity Fund
|
Consolidated Financial Highlights
-(continued)
|
Six months ended August 31,
2026
|
Years Ended February 28,
|
Year Ended
February 29,
2024
|
Years Ended February 28,
|
|||||||||||||||||||
|
Class AX
(a)
|
2026
|
2025
|
2023
|
2022
|
||||||||||||||||||
|
Net asset value, beginning of period
|
$ 10.05 | $ 10.85 | $ 11.18 | $ 11.23 | $ 12.27 | $ 12.02 | ||||||||||||||||
|
Net investment income
(b)
|
0.42 | 0.96 | 1.27 | 1.24 | 0.88 | 0.65 | ||||||||||||||||
|
Net gains (losses) on securities (both realized and unrealized)
|
(0.45) | (0.39 | ) | (0.36 | ) | (0.13 | ) | (0.99 | ) | 0.38 | ||||||||||||
|
Total from investment operations
|
(0.03) | 0.57 | 0.91 | 1.11 | (0.11 | ) | 1.03 | |||||||||||||||
|
Less:
|
||||||||||||||||||||||
|
Dividends from net investment income
|
(0.50) | (1.27 | ) | (1.24 | ) | (1.16 | ) | (0.93 | ) | (0.78 | ) | |||||||||||
|
Return of capital
|
- | (0.10 | ) | - | - | - | - | |||||||||||||||
|
Total distributions
|
(0.50) | (1.37 | ) | (1.24 | ) | (1.16 | ) | (0.93 | ) | (0.78 | ) | |||||||||||
|
Net asset value, end of period
|
$ 9.52 | $ 10.05 | $ 10.85 | $ 11.18 | $ 11.23 | $ 12.27 | ||||||||||||||||
|
Total return at net asset value
(c)
|
(0.35)% | 5.22 | % | 8.44 | % | 10.29 | % | (0.86 | )% | 8.75 | % | |||||||||||
|
Net assets, end of period (000's omitted)
|
$120,262 | $139,386 | $177,284 | $354,477 | $425,833 | $622,174 | ||||||||||||||||
|
Portfolio turnover rate
(d)
|
17% | 35 | % | 27 | % | 27 | % | 22 | % | 96 | % | |||||||||||
|
Ratios/supplemental data based on average net assets:
|
||||||||||||||||||||||
|
Ratio of expenses:
|
||||||||||||||||||||||
|
With fee waivers and/or expense reimbursements
|
4.53%
(e)(f)
|
4.02 | % | 4.00 | % | 4.15 |
%
(f)
|
3.68 |
%
(f)
|
2.52 |
%
(f)
|
|||||||||||
|
With fee waivers and/or expense reimbursements excluding interest, facilities and maintenance fees
|
2.15%
(e)
|
2.13 | % | 2.07 | % | 2.09 | % | 2.12 | % | 1.96 | % | |||||||||||
|
Without fee waivers and/or expense reimbursements
|
4.53%
(e)
|
4.03 | % | 4.01 | % | 4.15 | % | 3.68 | % | 2.52 | % | |||||||||||
|
Ratio of net investment income
|
8.50%
(e)
|
9.01 | % | 11.56 | % | 11.12 | % | 7.65 | % | 5.23 | % | |||||||||||
|
Senior indebtedness:
|
||||||||||||||||||||||
|
Total borrowings (000's omitted)
|
$ 95,000 | $ 70,000 | $ 64,500 | $ 87,000 | $136,000 | $217,000 | ||||||||||||||||
|
Asset coverage per $1,000 unit of senior indebtedness
(g)
|
$ 3,688 | $ 4,662 | $ 5,064 | $ 5,080 | $ 4,132 | $ 3,867 | ||||||||||||||||
|
(a)
|
Prior to November 1, 2021, the Fund operated as a
Closed-End
non-interval
fund. On such date, holders of common shares of
Closed-End
Fund received Class AX shares of the Fund equal to the number of
Closed-End
Fund common shares they owned prior to Reorganization.
|
|
(b)
|
Calculated using average shares outstanding.
|
|
(c)
|
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. Does not include sales charges and is not annualized for periods less than one year, if applicable.
|
|
(d)
|
Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. Calculation includes the proceeds from principal repayments and sales of variable rate senior loan interests.
|
|
(e)
|
Annualized.
|
|
(f)
|
Includes fee waivers which were less than 0.005% per share.
|
|
(g)
|
Calculated by subtracting the Fund's total liabilities (not including the Borrowings) from the Fund's total assets and dividing by the total number of senior indebtedness units, where one unit equals $1,000 of senior indebtedness.
|
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
|
21
|
Invesco Dynamic Credit Opportunity Fund
|
Consolidated Financial Highlights
-(continued)
|
Class Y
|
Six Months Ended
August 31,
2026
|
Years Ended
February 28,
|
Year Ended
February 29,
2024
|
Year Ended
February 28,
2023
|
Period Ended
February 28,
2022
(a)
|
|||||||||||||||||||
|
2026
|
2025
|
|||||||||||||||||||||||
|
Net asset value, beginning of period
|
$ 10.06 | $ 10.87 | $ 11.18 | $ 11.24 | $ 12.27 | $ 12.46 | ||||||||||||||||||
|
Net investment income
(b)
|
0.42 | 0.93 | 1.28 | 1.23 | 0.87 | 0.86 | ||||||||||||||||||
|
Net gains (losses) on securities (both realized and unrealized)
|
(0.45 | ) | (0.37 | ) | (0.35 | ) | (0.13 | ) | (0.97 | ) | (0.90 | ) | ||||||||||||
|
Total from investment operations
|
(0.03 | ) | 0.56 | 0.93 | 1.10 | (0.10 | ) | (0.04 | ) | |||||||||||||||
|
Less:
|
||||||||||||||||||||||||
|
Less: Dividends from net investment income
|
(0.50 | ) | (1.27 | ) | (1.24 | ) | (1.16 | ) | (0.93 | ) | (0.15 | ) | ||||||||||||
|
Return of capital
|
- | (0.10 | ) | - | - | - | - | |||||||||||||||||
|
Total distributions
|
(0.50 | ) | (1.37 | ) | (1.24 | ) | (1.16 | ) | (0.93 | ) | (0.15 | ) | ||||||||||||
|
Net asset value, end of period
|
$ 9.53 | $ 10.06 | $ 10.87 | $ 11.18 | $ 11.24 | $ 12.27 | ||||||||||||||||||
|
Total return at net asset value
(c)
|
(0.34 | )% | 5.13 | % | 8.64 | % | 10.19 | % | (0.75 | )% | (0.34 | )% | ||||||||||||
|
Net assets, end of period (000's omitted)
|
$ 899 | $ 795 | $ 28 | $ 319 | $ 10 | $ 11 | ||||||||||||||||||
|
Portfolio turnover rate
(d)
|
17 | % | 35 | % | 27 | % | 27 | % | 22 | % | 96 | % | ||||||||||||
|
Ratios/supplemental data based on average net assets:
|
||||||||||||||||||||||||
|
Ratio of expenses:
|
||||||||||||||||||||||||
|
With fee waivers and/or expense reimbursements
|
4.53 |
%
(e)(f)
|
4.02 | % | 4.00 | % | 4.15 |
%
(f)
|
3.68 |
%
(f)
|
2.59 |
%
(e)(f)
|
||||||||||||
|
With fee waivers and/or expense reimbursements excluding interest, facilities and maintenance fees
|
2.15 |
%
(e)
|
2.13 | % | 2.07 | % | 2.09 | % | 2.12 | % | 2.07 |
%
(e)
|
||||||||||||
|
Without fee waivers and/or expense reimbursements
|
4.53 |
%
(e)
|
4.03 | % | 4.01 | % | 4.15 | % | 3.68 | % | 2.59 |
%
(e)
|
||||||||||||
|
Ratio of net investment income
|
8.50 |
%
(e)
|
9.01 | % | 11.56 | % | 11.12 | % | 7.65 | % | 5.16 |
%
(e)
|
||||||||||||
|
Senior indebtedness:
|
||||||||||||||||||||||||
|
Total borrowings (000's omitted)
|
$95,000 | $70,000 | $64,500 | $87,000 | $136,000 | $217,000 | ||||||||||||||||||
|
Asset coverage per $1,000 unit of senior indebtedness
(g)
|
$ 3,688 | $ 4,662 | $ 5,064 | $ 5,080 | $ 4,132 | $ 3,867 | ||||||||||||||||||
|
(a)
|
Commencement date of November 1, 2021.
|
|
(b)
|
Calculated using average shares outstanding.
|
|
(c)
|
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. Does not include sales charges and is not annualized for periods less than one year, if applicable.
|
|
(d)
|
Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. Calculation includes the proceeds from principal repayments and sales of variable rate senior loan interests.
|
|
(e)
|
Annualized.
|
|
(f)
|
Includes fee waivers which were less than 0.005% per share.
|
|
(g)
|
Calculated by subtracting the Fund's total liabilities (not including the Borrowings) from the Fund's total assets and dividing by the total number of senior indebtedness units, where one unit equals $1,000 of senior indebtedness.
|
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
|
22
|
Invesco Dynamic Credit Opportunity Fund
|
Consolidated Financial Highlights
-(continued)
|
Class R6
|
Six Months Ended
August 31,
2026
|
Years Ended
February 28,
|
Year Ended
February 29,
2024
|
Year Ended
February 28,
2023
|
Period Ended
February 28,
2022
(a)
|
|||||||||||||||||||
|
2026
|
2025
|
|||||||||||||||||||||||
|
Net asset value, beginning of period
|
$ 10.06 | $ 10.86 | $ 11.19 | $ 11.24 | $ 12.27 | $ 12.46 | ||||||||||||||||||
|
Net investment income
(b)
|
0.42 | 0.96 | 1.29 | 1.25 | 0.89 | 0.86 | ||||||||||||||||||
|
Net gains (losses) on securities (both realized and unrealized)
|
(0.45 | ) | (0.38 | ) | (0.36 | ) | (0.13 | ) | (0.98 | ) | (0.90 | ) | ||||||||||||
|
Total from investment operations
|
(0.03 | ) | 0.58 | 0.93 | 1.12 | (0.09 | ) | (0.04 | ) | |||||||||||||||
|
Less:
|
||||||||||||||||||||||||
|
Less: Dividends from net investment income
|
(0.50 | ) | (1.28 | ) | (1.26 | ) | (1.17 | ) | (0.94 | ) | (0.15 | ) | ||||||||||||
|
Return of capital
|
- | (0.10 | ) | - | - | - | - | |||||||||||||||||
|
Total distributions
|
(0.50 | ) | (1.38 | ) | (1.26 | ) | (1.17 | ) | (0.94 | ) | (0.15 | ) | ||||||||||||
|
Net asset value, end of period
|
$ 9.53 | $ 10.06 | $ 10.86 | $ 11.19 | $ 11.24 | $ 12.27 | ||||||||||||||||||
|
Total return at net asset value
(c)
|
(0.30 | )% | 5.36 | % | 8.59 | % | 10.41 | % | (0.70 | )% | (0.33 | )% | ||||||||||||
|
Net assets, end of period (000's omitted)
|
$133,379 | $115,201 | $84,530 | $ 9 | $ 9 | $ 10 | ||||||||||||||||||
|
Portfolio turnover rate
(d)
|
17 | % | 35 | % | 27 | % | 27 | % | 22 | % | 96 | % | ||||||||||||
|
Ratios/supplemental data based on average net assets:
|
||||||||||||||||||||||||
|
Ratio of expenses:
|
||||||||||||||||||||||||
|
With fee waivers and/or expense reimbursements
|
4.41 |
%
(e)(f)
|
3.95 |
%
(f)
|
3.85 |
%
(f)
|
4.05 |
%
(f)
|
3.58 |
%
(f)
|
2.55 |
%
(e)(f)
|
||||||||||||
|
With fee waivers and/or expense reimbursements excluding interest, facilities and maintenance fees
|
2.03 |
%
(e)
|
2.06 | % | 1.92 | % | 1.99 | % | 2.02 | % | 2.03 |
%
(e)
|
||||||||||||
|
Without fee waivers and/or expense reimbursements
|
4.41 |
%
(e)
|
3.95 | % | 3.85 |
%
(f)
|
4.05 | % | 3.58 | % | 2.55 |
%
(e)
|
||||||||||||
|
Ratio of net investment income
|
8.62 |
%
(e)
|
9.08 | % | 11.71 | % | 11.22 | % | 7.75 | % | 5.20 |
%
(e)
|
||||||||||||
|
Senior indebtedness:
|
||||||||||||||||||||||||
|
Total borrowings (000's omitted)
|
$ 95,000 | $ 70,000 | $64,500 | $87,000 | $136,000 | $217,000 | ||||||||||||||||||
|
Asset coverage per $1,000 unit of senior indebtedness
(g)
|
$ 3,688 | $ 4,662 | $ 5,064 | $ 5,080 | $ 4,132 | $ 3,867 | ||||||||||||||||||
|
(a)
|
Commencement date of November 1, 2021.
|
|
(b)
|
Calculated using average shares outstanding.
|
|
(c)
|
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. Does not include sales charges and is not annualized for periods less than one year, if applicable.
|
|
(d)
|
Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. Calculation includes the proceeds from principal repayments and sales of variable rate senior loan interests.
|
|
(e)
|
Annualized.
|
|
(f)
|
Includes fee waivers which were less than 0.005% per share.
|
|
(g)
|
Calculated by subtracting the Fund's total liabilities (not including the Borrowings) from the Fund's total assets and dividing by the total number of senior indebtedness units, where one unit equals $1,000 of senior indebtedness.
|
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
|
23
|
Invesco Dynamic Credit Opportunity Fund
|
Notes to Consolidated Financial Statements
August 31, 2026
(Unaudited)
NOTE 1-Significant Accounting Policies
Invesco Dynamic Credit Opportunity Fund (the "Fund") is a Delaware statutory trust registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as a
closed-end
management investment company that is operated as an interval fund and periodically offers its shares for repurchase.
The Fund may participate in direct lending opportunities through its indirect investment in the Invesco Dynamic Credit Opportunities Loan Origination LLC (the "LLC"), a Delaware limited liability company. The Fund owns all beneficial and economic interests in the Invesco Dynamic Credit Opportunities Loan Origination Trust, a Massachusetts Business Trust (the "Loan Origination Trust"), which in turn owns all beneficial and economic interests in the LLC.
The Fund may also invest a portion of its assets indirectly through a wholly-owned subsidiary, Invesco Dynamic Credit Opportunity TB, LLC, a Delaware limited liability series company (the "Subsidiary"), which formed two separate series. The Fund owns all beneficial and economic interests in the Subsidiary and each of the Subsidiary's two series. The accompanying consolidated financial statements reflect, on a consolidated basis, the financial position and results of operations of the Fund, its Loan Origination Trust, the Subsidiary and each of the Subsidiary's two series.
The Fund's investment objective is to seek a high level of current income, with a secondary objective of capital appreciation. The Fund seeks to achieve its objectives by investing primarily in a portfolio of interests in floating or fixed rate senior loans to corporations, partnerships, and other entities which operate in a variety of industries and geographic regions. The Fund borrows money for investment purposes which may create the opportunity for enhanced return, but also should be considered a speculative technique and may increase the Fund's volatility.
The Fund currently consists of four different classes of shares: Class A, Class AX, Class Y and Class R6 shares. Class AX shares are closed to new investors. Class Y shares are available only to certain investors. Class A shares are sold with a
front-end
sales charge unless certain waiver criteria are met. Under certain circumstances, load waived shares may be subject to contingent deferred sales charges ("CDSC"). Class AX, Class Y and Class R6 shares are sold at net asset value.
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification Topic 946,
Financial Services - Investment Companies
.
The following is a summary of the significant accounting policies followed by the Fund in the preparation of its consolidated financial statements.
|
A.
|
Security Valuations
- Variable rate senior loan interests are fair valued using quotes provided by an independent pricing service. Quotes provided by the pricing service may reflect appropriate factors such as ratings, tranche type, industry, company performance, spread, individual trading characteristics,
institution-size
trading in similar groups of securities and other market data.
|
Securities, including restricted securities, are valued according to the following policy. A security listed or traded on an exchange is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded, or lacking any trades or official closing price on a particular day, the security may be valued at the closing bid or ask price on that day. Securities traded in the
over-the-counter
market (but not securities reported on the NASDAQ Stock Exchange) are valued based on the prices furnished by independent pricing services, in which case the securities may be considered fair valued, or by market makers. Each security reported on the NASDAQ Stock Exchange is valued at the NASDAQ Official Closing Price ("NOCP") as of the close of the customary trading session on the valuation date or absent a NOCP, at the closing bid price.
Futures contracts are valued at the daily settlement price set by an exchange on which they are principally traded. Where a final settlement price exists, exchange-traded options are valued at the final settlement price from the exchange where the option principally trades, as of the approximate official closing time of that exchange. Where a final settlement price does not exist, exchange-traded options are valued at the mean between the last bid and ask price generally from the exchange where the option principally trades.
Securities of investment companies that are not exchange-traded (e.g.,
open-end
mutual funds) are valued using such company's most recently reported net asset value per share.
Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as
institution-size
trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots, and their value may be adjusted accordingly. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
Swap agreements are fair valued using an evaluated quote, if available, provided by an independent pricing service. Evaluated quotes provided by the pricing service are valued based on a model which may include
end-of-day
net present values, spreads, ratings, industry, company performance and returns of referenced assets. Centrally cleared swap agreements are valued at the daily settlement price determined by the relevant exchange or clearinghouse.
Deposits, other obligations of U.S. and
non-U.S.
banks and financial institutions are valued at their daily account value.
Foreign securities' (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the New York Stock Exchange ("NYSE"). If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Advisers, Inc. (the "Adviser" or "Invesco") may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become not representative of market value in the Adviser's judgment ("unreliable"). If, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith in accordance with Board-approved policies and related Adviser procedures ("Valuation Procedures"). Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities' prices meeting the degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Private investments will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the investment's fair value in accordance with the Valuation Procedures. Valuation techniques used for private investments may include, as appropriate, an income approach, including a discounted cash flow analysis; a market approach using observable transactions involving comparable investments; or other valuation techniques. Significant inputs and assumptions may include discount rates, prevailing credit spreads, comparable transaction data, projected cash flows, payment history, covenant compliance, issuer or borrower operating and financial information, maturity and liquidity characteristics, collateral values, default
|
24
|
Invesco Dynamic Credit Opportunity Fund
|
probabilities, recovery rate assumptions and other investment-specific or market-related factors. The relevance and relative weighting of these inputs and assumptions may vary by investment and over time. Changes in these inputs might result in a significantly different fair valuation at the applicable measurement date.
Non-traded
rights and warrants shall be valued at intrinsic value if the terms of the rights and warrants are available, specifically the subscription or exercise price and the ratio. Intrinsic value is calculated as the daily market closing price of the security to be received less the subscription price, which is then adjusted by the exercise ratio. In the case of warrants, an option pricing model supplied by an independent pricing service may be used based on market data such as volatility, stock price and interest rate from the independent pricing service and strike price and exercise period from verified terms.
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 mean between the last bid and ask prices may be used to value debt obligations, including corporate loans, and unlisted equity securities.
Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security's fair value. Fair value measurements are intended to reflect the assumptions that market participants would use in pricing an investment as of the applicable measurement date. Valuation models and techniques may be calibrated to the transaction price initially, where appropriate, and may subsequently be reassessed in light of available market information and changes in facts or circumstances. There can be no assurance that such calibration or reassessment will result in a valuation that corresponds to the price that could be obtained in an actual transaction.
Prices or valuation information received from a pricing service or other third party may be based on models, estimates or information that is incomplete, stale, or otherwise does not completely reflect current market conditions. The use of a pricing service or other third party does not eliminate valuation risk, and the Adviser may determine that a price or other valuation information received from such a third party is unreliable or does not represent fair value.
The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.
Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer's assets, general market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, military conflicts, acts of terrorism, economic crises, economic sanctions and tariffs, significant governmental actions or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the consolidated financial statements may materially differ from the value received upon actual sale of those investments.
The price the Fund could receive upon the sale of any investment may differ from the Adviser's valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Changes in one or more significant inputs or assumptions could result in a significantly different fair value for an investment on the same reporting date. Different valuation techniques or reasonable judgments concerning the selection or weighting of inputs and assumptions could produce materially different valuation results. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.
|
B.
|
Securities Transactions and Investment Income
- Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable.
Pay-in-kind
interest income and
non-cash
dividend income received in the form of securities in lieu of cash are recorded at the fair value of the securities received. Facility fees received may be amortized over the life of the loan. Dividend income (net of withholding tax, if any) is recorded on the
ex-dividend
date.
|
The Fund may periodically participate in litigation related to the Fund's investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Consolidated Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Other income is comprised primarily of amendment fees which are recorded when received. Amendment fees are received in return for changes in the terms of the loan or note.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Consolidated Statement of Operations and the Consolidated Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Consolidated Financial Highlights. Transaction costs are included in the calculation of the Fund's net asset value and, accordingly, they reduce the Fund's total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Consolidated Statement of Operations and the Consolidated Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Consolidated Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates realized and unrealized capital gains and losses to a class based on the relative net assets of each class. The Fund allocates income to a class based on the relative value of the settled shares of each class.
|
C.
|
Country Determination
- For the purposes of making investment selection decisions and presentation in the Consolidated 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 the laws 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 more of its total revenues, the country that has the primary market for the issuer's securities and its "country of risk" as determined by a third party service provider, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
|
|
D.
|
Distributions
- Distributions from net investment income, if any, are declared daily and paid monthly. Distributions from net realized capital gain, if any, are generally declared and paid annually and recorded on the
ex-dividend
date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes.
|
|
E.
|
Federal Income Taxes -
The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the "Internal Revenue Code"), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund's taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. The Subsidiary is treated as a corporation for U.S. federal income tax purposes and generally is subject to U.S. federal and state income tax on its taxable income.
|
The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund's uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions.
|
25
|
Invesco Dynamic Credit Opportunity Fund
|
The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Fund is subject to examinations by such taxing authorities 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 are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R6 are charged to such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on the relative value of settled shares.
|
|
G.
|
Interest, Facilities and Maintenance Fees
- Interest, Facilities and Maintenance Fees include interest and related borrowing costs such as commitment fees, administrative expenses, negative or overdrawn balances on margin accounts and other expenses associated with establishing and maintaining a line of credit.
|
|
H.
|
Accounting Estimates
- The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the
period-end
date and before the date the consolidated financial statements are released to print.
|
|
I.
|
Indemnifications
- Under the Fund's organizational documents, each Trustee, officer, employee or other agent of the Fund, under the LLC's organizational documents, each member of the LLC and certain affiliated persons, and under the Subsidiary's organizational documents, the directors and officers of the Subsidiary, are indemnified against certain liabilities that may arise out of the performance of their duties to the Fund, the LLC and/or the Subsidiary, respectively. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund's servicing agreements, that contain a variety of indemnification clauses. The Fund's maximum exposure under these arrangements 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 as a result of such indemnification claims is considered remote.
|
|
J.
|
Segment Reporting
- The Fund represents a single operating segment, in accordance with ASC 280, Segment Reporting. Subject to the oversight and, when applicable, approval of the Board of Trustees, portfolio managers and senior executives at the Adviser act as the Fund's chief operating decision maker ("CODM"), assessing performance and making decisions about resource allocation within the Fund. The CODM monitors the operating results as a whole, and the Fund's long-term strategic asset allocation is determined in accordance with the terms of its prospectus based on a defined investment strategy. The financial information provided to and reviewed by the CODM is consistent with that presented in the Fund's consolidated financial statements.
|
|
K.
|
Cash and Cash Equivalents -
For the purposes of the Consolidated Statement of Cash Flows, the Fund defines Cash and Cash Equivalents as cash (including foreign currency), restricted cash, money market funds that qualify as a cash equivalent and other investments held in lieu of cash.
|
|
L.
|
Securities Purchased on a When-Issued and Delayed Delivery Basis
- The Fund may purchase and sell securities on a when-issued and delayed delivery basis, with payment and delivery scheduled for a future date. No income accrues to the Fund on such interests or securities in connection with such transactions prior to the date the Fund actually takes delivery of such interests or securities. These transactions are subject to market fluctuations and are subject to the risk that the value at delivery may be more or less than the trade date purchase price. Although the Fund will generally purchase these securities with the intention of acquiring such securities, they may sell such securities prior to the settlement date.
|
|
M.
|
Foreign Currency Translations
- Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Consolidated Statement of Operations. Reported net realized foreign currency gains or losses 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 of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than 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 of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Consolidated Statement of Operations.
The performance of the Fund may be materially affected positively or negatively by foreign currency strength or weakness relative to the U.S. dollar. Currency rates in foreign countries may fluctuate for a number of reasons, including changes in interest rates, political, economic, or social instability and development, and imposition of currency controls. Currency controls in certain foreign jurisdictions may cause the Fund to experience significant delays in its ability to repatriate its assets in U.S. dollars at quoted spot rates, and it is possible that the Fund's ability to convert certain foreign currencies into U.S. dollars may be limited and may occur at discounts to quoted rates. As a result, the value of the Fund's assets and liabilities denominated in such currencies that would ultimately be realized could differ from those reported on the Consolidated Statement of Assets and Liabilities. Certain foreign companies may be subject to sanctions, embargoes, or other governmental actions that may limit the ability to invest in, receive, hold, or sell the securities of such companies, all of which affect the market and/or credit risk of the investments. Because of the inherent uncertainties of valuation, the values reflected in the consolidated financial statements may materially differ from the value received upon actual sale of those investments.
|
N.
|
Forward Foreign Currency Contracts
- The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk.
|
The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to "lock in" the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical exchange of the two currencies on the settlement date, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount
(non-deliverable
forwards).
A forward foreign currency contract is an obligation between two parties ("Counterparties") to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts for hedging does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Consolidated Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Consolidated Statement of Assets and Liabilities.
|
O.
|
Industry Focus
- To the extent that the Fund invests a greater amount of its assets in securities of issuers in the banking and financial services industries, the Fund's performance will depend to a greater extent on the overall condition of those industries. The value of these securities can be sensitive to changes in government regulation, interest rates and economic downturns in the U.S. and abroad.
|
| P. |
Bank Loan Risk - Although the resale, or secondary market for floating rate loans has grown substantially over the past decade, both in overall size and
|
| 26 | Invesco Dynamic Credit Opportunity Fund |
number of market participants, there is no organized exchange or board of trade on which floating rate loans are traded. Instead, the secondary market for floating rate loans is a private, unregulated interdealer or interbank resale market. Such a market may therefore be subject to irregular trading activity, wide bid/ask spreads, and extended trade settlement periods, which may impair the Fund's ability to sell bank loans within its desired time frame or at an acceptable price and its ability to value existing and prospective investments. Extended trade settlement periods may result in cash not being immediately available to the Fund. As a result, the Fund may have to sell other investments or engage in borrowing transactions to raise cash to meet its obligations. Similar to other asset classes, bank loan funds may be exposed to counterparty credit risk, or the risk than an entity with which the Fund has unsettled or open transactions may fail to or be unable to perform on its commitments. The Fund seeks to manage counterparty credit risk by entering into transactions only with counterparties that it be
lie
ves have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties.
| Q. |
Foreign Risk - The Fund may invest in senior loans to borrowers that are organized or located in countries other than the United States. Investment in non-U.S. issuers involves special risks, including that non-U.S. issuers may be subject to less rigorous accounting and reporting requirements than U.S. issuers, less rigorous regulatory requirements, different legal systems and laws relating to creditors' rights, the potential inability to enforce legal judgments and the potential for political, social and economic adversity. Investments by the Fund in non-U.S. dollar denominated investments will be subject to currency risk. The Fund also may hold non-U.S. dollar denominated senior loans or other securities received as part of a reorganization or restructuring. Trading in many foreign securities may be less liquid and more volatile than U.S. securities due to the size of the market or other factors.
|
| R. |
Leverage Risk - The Fund may utilize leverage to seek to enhance the yield of the Fund by borrowing or issuing preferred shares. There are risks associated with borrowing or issuing preferred shares in an effort to increase the yield and distributions on the common shares, including that the costs of the financial leverage may exceed the income from investments made with such leverage, the higher volatility of the net asset value of the common shares, and that fluctuations in the interest rates on the borrowing or dividend rates on preferred shares may affect the yield and distributions to the common shareholders. There can be no assurance that the Fund's leverage strategy will be successful.
|
| S. |
Other Risks - The Fund may invest all or substantially all of its assets in senior secured floating rate loans and senior secured debt securities that are determined to be rated below investment grade. These securities are generally considered to have speculative characteristics and are subject to greater risk of loss of principal and interest than higher rated securities. The value of lower quality debt securities and floating rate loans can be more volatile due to increased sensitivity to adverse issuer, political, regulatory, market or economic developments.
|
The Fund invests in corporate loans from U.S. or non-U.S. companies (the "Borrowers"). The investment of the Fund in a corporate loan may take the form of participation interests or assignments. If the Fund purchases a participation interest from a syndicate of lenders ("Lenders") or one of the participants in the syndicate ("Participant"), one or more of which administers the loan on behalf of all the Lenders (the "Agent Bank"), the Fund would be required to rely on the Lender that sold the participation interest not only for the enforcement of the Fund's rights against the Borrower but also for the receipt and processing of payments due to the Fund under the corporate loans. As such, the Fund is subject to the credit risk of the Borrower and the Participant. Lenders and Participants interposed between the Fund and a Borrower, together with Agent Banks, are referred to as "Intermediate Participants".
Fluctuations in the federal funds and equivalent foreign rates or other changes to monetary policy or regulatory actions may expose fixed income markets to heightened volatility, perhaps suddenly and to a significant degree, and to reduced liquidity for certain fixed income investments, particularly those with longer maturities. Such changes and resulting increased volatility may adversely impact the Fund, including its operations, universe of potential investment options, and return potential. It is difficult to predict the impact of interest rate changes on various markets. In addition, decreases in fixed income dealer market-making capacity may also potentially lead to heightened volatility and reduced liquidity in the fixed income markets. As a result, the value of the Fund's investments and share price may decline. Changes in central bank policies and other governmental actions and political events within the U.S. and abroad may also, among other things, affect investor and consumer expectations and confidence in the financial markets. This could result in higher than normal redemptions by shareholders, which could potentially increase the Fund's portfolio turnover rate and transaction costs.
In making a loan directly to the borrower ("direct loan"), the Fund is exposed to the credit risk that the borrower may default or become insolvent and, consequently, that the Fund will lose money on the loan. Furthermore, direct loans may subject the Fund to liquidity and interest rate risk and certain direct loans may be deemed illiquid. Direct loans are not publicly traded and may not have a secondary market. The lack of a secondary market for direct loans may have an adverse impact on the ability of the Fund to dispose of a direct loan and/or to value the direct loan. When engaging in direct lending, the Fund's performance may depend, in part, on the ability of the Fund to originate loans on advantageous terms. In originating and purchasing loans, the Fund will compete with a broad spectrum of lenders. Increased competition for, or a decrease in the available supply of, qualifying loans could result in lower yields on such loans, which could adversely affect Fund performance.
The Fund is non-diversified and may invest in securities of fewer issuers than if it were diversified. Thus, the value of the Fund's shares may vary more widely and the Fund may be subject to greater market and credit risk than if the Fund invested more broadly.
By investing through the LLC and Subsidiary, the Fund is exposed to the risks associated with the investments of the LLC and Subsidiary (which risks are generally the same as the Fund's investment risks). The LLC and Subsidiary are not registered under the 1940 Act, and, except as otherwise noted in the Fund's prospectus, are not subject to the investor protections of the 1940 Act. However, the Fund will comply with the applicable requirements of the 1940 Act on a consolidated basis with its LLC and Subsidiary, and the LLC and Subsidiary will be subject to the same investment restrictions and limitations, and will adhere to the same compliance policies and procedures, as the Fund. Changes in the laws of the United States and/or the jurisdiction in which the LLC and Subsidiary are organized, including any changes in the interpretations of, or treatment with respect to, applicable federal tax-related matters impacting the Fund and its status as a regulated investment company, could result in the inability of the Fund, the LLC and/or the Subsidiary to operate as intended and could adversely affect the Fund and its shareholders.
Investments through the Subsidiary, which is taxable as a corporation for U.S. federal income tax purposes, may incur entity-level income taxes on their earnings, which ultimately may reduce the return to shareholders.
A significant amount of the Fund's investments are expected to be in securities, loans and other instruments that do not have readily available market quotations ("private investments"). These private investments are valued at fair value as determined in good faith by the Adviser as described above. In connection with that determination, valuations will be prepared using inputs from the sponsor, issuer or borrower with respect to the relevant investment, and the Adviser may consider, as one input among others, certain procedures performed by a sub-adviser or one or more independent valuation firms, if any. The Adviser may also consider proprietary models depending on the availability of information on the Fund's assets and the type of asset being valued, all in accordance with the Fund's valuation policy. Additionally, the Adviser expects to receive information regarding the Fund's private investments, which it may use to price those investments and calculate the Fund's net asset value, on a monthly or quarterly basis, often on a significant lag. The Adviser generally does not expect to receive updated information from the sponsors, issuers or borrowers more frequently. As a result, the prices of such investments and the Fund's net asset value attributable to such investments may be based on portfolio company information from the prior month or quarter. Events occurring after the date of the most recently available information, including deterioration in an issuer's or borrower's financial condition, covenant breaches, payment defaults, restructurings, extensions, changes in collateral value or changes in market conditions, may not be reflected in such information. Although the Adviser may make adjustments based on reasonably available information, there can be no assurance that all relevant developments will be identified or reflected in a valuation. A lack of timely sponsor, borrower or issuer information may increase the degree of judgment, estimation and uncertainty involved in the fair valuation.
The Fund may invest in loans and other debt instruments that will be treated as having "market discount" and/or original issue discount ("OID") or with PIK interest where interest owed by the relevant borrower or issuer is periodically capitalized into the principal balance of the debt instrument rather than paid in cash. Because the Fund may be required to recognize income in respect of these investments before, or without, receiving cash representing such income (e.g.,
|
27
|
Invesco Dynamic Credit Opportunity Fund
|
PIK interest), the Fund may have difficulty satisfying the annual distribution requirements applicable to RICs and avoiding Fund-level U.S. federal income and/or excise taxes. Accordingly, the Fund may be required to sell assets, including at potentially disadvantageous times or prices, raise additional debt or equity capital or reduce new investments to obtain the cash needed to make these income distributions. Market prices of OID and PIK instruments are more volatile because they are affected to a greater extent by interest rate changes than instruments that pay interest periodically in cash. Further, the interest rates on PIK instruments may be higher to reflect the time-value of money on deferred interest payments and the higher credit risk of borrowers or issuers who may need to defer interest payments. Instruments that are treated as having OID for U.S. federal income tax purposes or that provide for PIK interest may have unreliable valuations because their continuing accruals require judgments about the collectability of the deferred payments and the value of any collateral. Instruments that are treated as having OID or that provide for PIK interest generally represent a significantly higher credit risk than coupon bearing debt instrument that pay interest in cash. Accruals on such instruments may create uncertainty about the source of Fund distributions to Shareholders. The accrual of interest on debt instruments that are treated as having OID or that provide for PIK interest will increase the net asset value of the Fund and, consequently, the management fees payable to the Adviser. These management fees will be
non-refundable
by the Adviser, even if such accruals are never realized by the Fund in cash because of the related borrowers' or issuers' inability to pay. In addition, the deferral of PIK interest also increases a loan's
loan-to-value
ratio at a compounding rate, thereby diminishing the security provided by the collateral backing the loan.
NOTE 2-Advisory Fees and Other Fees Paid to Affiliates
The Fund has entered into a master investment advisory agreement with the Adviser. Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of 1.25% of the Fund's average daily managed assets. Managed assets for this purpose means the Fund's net assets, plus assets attributable to any outstanding preferred shares and the amount of any borrowings incurred for the purpose of leverage (whether or not such borrowed amounts are reflected in the Fund's consolidated financial statements for purposes of GAAP.)
The Subsidiary had entered into a separate contract with the Adviser whereby the Adviser provided investment advisory and other services to the Subsidiary. In consideration of these services, the Subsidiary paid an advisory fee to the Adviser based on the annual rate of 1.25% of the Subsidiary's average daily net assets. To the extent the Fund invested in the Subsidiary, the Adviser did not collect the portion of the advisory fee that the Adviser would have otherwise been entitled to collect from the Fund, in an amount equal to 100% of the advisory fee that the Adviser received from the Subsidiary.
For the six months ended August 31, 2026, the effective advisory fee rate incurred by the Fund was 1.70%.
Under the terms of a master
sub-advisory
agreement between the Adviser and each of Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Management S.A. and Invesco Senior Secured Management, Inc. and a separate
sub-advisory
agreement with Invesco Capital Management LLC (collectively, the "Affiliated
Sub-Advisers")
the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated
Sub-Adviser(s)
that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated
Sub-Adviser(s).
The Adviser, on behalf of the Fund, has also entered into a
sub-advisory
agreement with Barings LLC ("Barings") to provide investment advice, order execution and discretionary investment management services to all or a portion of the Fund, subject to the oversight of the Adviser and the Board of Trustees of the Fund. Under this
sub-advisory
agreement, the Adviser will pay Barings up to 40% of the advisory fees the Adviser receives from the Fund. Barings has entered into a
sub-sub-advisory
agreement with Baring International Investment Limited ("BIIL"). Barings will compensate BIIL out of the
sub-advisory
fees it receives from the Adviser.
The Adviser has contractually agreed, through at least August 31, 2027, to waive the advisory fee payable by the Fund in an amount equal to the advisory fees earned by the Adviser and/or its affiliates on underlying affiliated investments, including 100% of the net advisory fees the Adviser receives from any affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.
For the six months ended August 31, 2026, the Adviser waived advisory fees of $265.
The Fund has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the six months ended August 31, 2026, expenses incurred under this agreement are shown in the Consolidated Statement of Operations as
Administrative services fees
. Invesco has entered into a
sub-administration
agreement whereby State Street Bank and Trust Company ("SSB") serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Fund, SSB also serves as the Fund's custodian.
The Fund has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. ("IIS") pursuant to which the Fund has agreed to pay 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 of providing such services. For the six months ended August 31, 2026, expenses incurred under these agreements are shown in the Consolidated Statement of Operations as
Transfer agent fees.
The Fund has entered into master distribution agreements with Invesco Distributors, Inc. ("IDI") to serve as the distributor for the Class A, Class AX, Class Y and Class R6 shares of the Fund. The Fund has adopted a plan pursuant to Rule
12b-1
under the 1940 Act with respect to the Fund's Class A shares (the "Plan"). The Fund, pursuant to the Plan, pays IDI compensation at the annual rate of 0.25% of the Fund's average daily net assets of Class A shares. The fees are accrued daily and paid monthly. Of the Plan payments, up to 0.25% of the Fund's average daily net assets of Class A shares may be paid to furnish continuing personal shareholder services to customers who purchase and own Class A shares. Any amounts not paid as a service fee under the Plan would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority ("FINRA") also impose a cap on the total sales charges, including asset-based sales charges, that may be paid by Class A shares of the Fund. For the six months ended August 31, 2026, expenses incurred under the Plan are shown in the Consolidated Statement of Operations as
Distribution fees
.
Certain officers and trustees of the Fund are officers and directors of the Adviser, 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 at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to 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. Based on the valuation inputs, the securities or other investments are tiered into 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, default rates, discount rates, volatilities and others. When market movements occur after the close of the relevant foreign securities markets, foreign securities may be fair valued utilizing an independent pricing service.
|
| 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 inputs reflect the Adviser's assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.
|
|
28
|
Invesco Dynamic Credit Opportunity Fund
|
The following is a summary of the tiered valuation input levels, as of August 31, 2026. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the consolidated financial statements may materially differ from the value received upon actual sale of those investments.
|
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||
|
Investments in Securities
|
||||||||||||||||
|
Variable Rate Senior Loan Interests
|
$ | - | $ | 120,374,724 | $ | 182,062,585 | $ | 302,437,309 | ||||||||
|
Common Stocks & Other Equity Interests
|
470,708 | 8,262,843 | 28,913,585 | 37,647,136 | ||||||||||||
|
Non-U.S.
Dollar Denominated Bonds & Notes
|
- | 5,822,945 | 2,225,238 | 8,048,183 | ||||||||||||
|
Preferred Stocks
|
- | - | 7,833,608 | 7,833,608 | ||||||||||||
|
U.S. Dollar Denominated Bonds & Notes
|
- | 2,702,194 | 287,640 | 2,989,834 | ||||||||||||
|
Total Investments in Securities
|
470,708 | 137,162,706 | 221,322,656 | 358,956,070 | ||||||||||||
|
Other Investments - Assets*
|
||||||||||||||||
|
Investments Matured
|
- | - | 36,722 | 36,722 | ||||||||||||
|
Forward Foreign Currency Contracts
|
- | 261,736 | - | 261,736 | ||||||||||||
| - | 261,736 | 36,722 | 298,458 | |||||||||||||
|
Other Investments - Liabilities*
|
||||||||||||||||
|
Forward Foreign Currency Contracts
|
- | (1,409,006 | ) | - | (1,409,006 | ) | ||||||||||
|
Total Other Investments
|
- | (1,147,270 | ) | 36,722 | (1,110,548 | ) | ||||||||||
|
Total Investments
|
$ | 470,708 | $ | 136,015,436 | $ | 221,359,378 | $ | 357,845,522 | ||||||||
| * |
Forward foreign currency contracts are valued at unrealized appreciation (depreciation). Investments matured are shown at value.
|
A reconciliation of Level 3 investments is presented when the Fund had a significant amount of Level 3 investments at the beginning and/or end of the reporting period in relation to net assets.
The following is a reconciliation of the fair valuations using significant unobservable inputs (Level 3) during the six months ended August 31, 2026:
|
Value
02/28/26* |
Purchases
at Cost |
Proceeds
from Sales |
Accrued
Discounts/ Premiums |
Realized
Gain
(Loss) |
Change in
Unrealized Appreciation (Depreciation) |
Transfers
into Level 3** |
Transfers
out of Level 3** |
Value
08/31/26
|
||||||||||||||||||||||||||||||||||||||
| Variable Rate Senior Loan Interests | $ | 165,608,829 | $ | 55,826,111 | $ | (26,426,219 | ) | $ | 272,726 | $ | (2,605,369 | ) | $ | (9,119,898 | ) | $ | 1,921,509 | $ | (3,415,104 | ) | $ | 182,062,585 | ||||||||||||||||||||||||
| Common Stocks & Other Equity Interests | 28,799,783 | 1,929,116 | (999,934 | ) | - | (7,594,786 | ) | 6,945,546 | - | (166,140 | ) | 28,913,585 | ||||||||||||||||||||||||||||||||||
| Preferred Stocks | 7,327,495 | 170,695 | - | - | - | 335,418 | - | - | 7,833,608 | |||||||||||||||||||||||||||||||||||||
|
Non-U.S.
Dollar Denominated Bonds & Notes
|
1,111,014 | 136,142 | - | 1,837 | - | (53,142 | ) | 1,029,387 | - | 2,225,238 | ||||||||||||||||||||||||||||||||||||
| U.S. Dollar Denominated Bonds & Notes | 338,174 | 144,833 | - | 20,597 | (3,702,212 | ) | 3,486,248 | - | - | 287,640 | ||||||||||||||||||||||||||||||||||||
| Investments Matured | 36,722 | - | - | - | - | - | - | - | 36,722 | |||||||||||||||||||||||||||||||||||||
|
Total
|
$ | 203,222,017 | $ | 58,206,897 | $ | (27,426,153 | ) | $ | 295,160 | $ | (13,902,367 | ) | $ | 1,594,172 | $ | 2,950,896 | $ | (3,581,244 | ) | $ | 221,359,378 | |||||||||||||||||||||||||
*Prior year balances have been adjusted for a change in security classification.
**Transfers into and out of Level 3 are due to increases or decreases in market activity impacting the available market inputs to determine the price.
The following table summarizes the valuation techniques and significant unobservable inputs used in determining fair value measurements for those investments classified as Level 3 at period end:
|
Fair Value at 08/31/26 |
Valuation Technique |
Unobservable Inputs |
Range of Unobservable Inputs |
Weighted Average of Unobservable Inputs Based on Fair Value |
||||||||
|
Variable Rate Senior Loan Interests
|
$ | 182,062,585 | Comparable Companies | EBITDA Multiple |
0.53x - 15.00x
|
5.29x | ||||||
| Discounted Cash Flow Model | Discount Rate |
7.79% - 17.31%
|
11.95% | |||||||||
| Loan Origination Value | Original Cost | 99% of Par | - | |||||||||
| Third-Party Pricing | Broker Quote |
98.80% - 132.11% of Par
|
114.92% of Par | |||||||||
|
Common Stocks & Other Equity Interests
|
28,913,585
|
Comparable Companies | EBITDA Multiple | 3.75x - 9.75x | 5.11x | |||||||
|
Preferred Stocks
|
7,833,608 | Comparable Companies | EBITDA Multiple | 9.50x | 9.50x | |||||||
|
Non-U.S.
Dollar Denominated Bonds & Notes
|
2,225,238 | Valued at Cost | Acquisition Cost | 100.00% of Par | - | |||||||
|
U.S. Dollar Denominated Bonds & Notes
|
287,640 | Comparable Companies | EBITDA Multiple | 9.25x | - | |||||||
|
Investments Matured
|
36,722 | Expected Recovery | Anticipated Proceeds | 41.00% of Par | - | |||||||
|
Total
|
$ | 221,359,378 | ||||||||||
NOTE 4-Derivative Investments
The Fund may enter into an International Swaps and Derivatives Association Master Agreement ("ISDA Master Agreement") under which a fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions and
close-out
netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.
|
29
|
Invesco Dynamic Credit Opportunity Fund
|
For financial reporting purposes, the Fund does not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the Consolidated Statement of Assets and Liabilities.
Value of Derivative Investments at Period-End
The table below summarizes the value of the Fund's derivative investments, detailed by primary risk exposure, held as of August 31, 2026:
|
Value
|
||||
|
Derivative Assets
|
Currency
Risk |
|||
|
Unrealized appreciation on forward foreign currency contracts outstanding
|
$ | 261,736 | ||
|
Derivatives not subject to master netting agreements
|
- | |||
|
Total Derivative Assets subject to master netting agreements
|
$ | 261,736 | ||
|
Value
|
||||
|
Derivative Liabilities
|
Currency
Risk |
|||
|
Unrealized depreciation on forward foreign currency contracts outstanding
|
$(1,409,006) | |||
|
Derivatives not subject to master netting agreements
|
- | |||
|
Total Derivative Liabilities subject to master netting agreements
|
$(1,409,006) | |||
Offsetting Assets and Liabilities
The table below reflects the Fund's exposure to Counterparties subject to either an ISDA Master Agreement or other agreement for OTC derivative transactions as of August 31, 2026.
|
Financial
Derivative Assets |
Financial
Derivative Liabilities |
Collateral
(Received)/Pledged |
|||||||||||||||||||||||||||||
|
Counterparty
|
Forward Foreign
Currency Contracts |
Forward Foreign
Currency Contracts |
Net Value of
Derivatives |
Non-Cash
|
Cash
|
Net
Amount |
|||||||||||||||||||||||||
|
Bank Of America
|
$ | 254 | $ | (71,457 | ) | $ | (71,203 | ) | $ | - | $ | - | $ | (71,203 | ) | ||||||||||||||||
|
BNP Paribas S.A.
|
2,682 | (1,037,739 | ) | (1,035,057 | ) | - | - | (1,035,057 | ) | ||||||||||||||||||||||
|
Goldman Sachs & Co.
|
- | (3 | ) | (3 | ) | - | - | (3 | ) | ||||||||||||||||||||||
|
JP Morgan Chase Bank
|
235,459 | (235,730 | ) | (271 | ) | - | - | (271 | ) | ||||||||||||||||||||||
|
Morgan Stanley
|
- | (17,802 | ) | (17,802 | ) | - | - | (17,802 | ) | ||||||||||||||||||||||
|
Royal Bank of Canada
|
13,692 | (37,650 | ) | (23,958 | ) | - | - | (23,958 | ) | ||||||||||||||||||||||
|
State Street Bank & Trust Co.
|
1,112 | - | 1,112 | - | - | 1,112 | |||||||||||||||||||||||||
|
Toronto Dominion Bank
|
8,537 | (8,625 | ) | (88 | ) | - | - | (88 | ) | ||||||||||||||||||||||
|
Total
|
$ | 261,736 | $ | (1,409,006 | ) | $ | (1,147,270 | ) | $ | - | $ | - | $ | (1,147,270 | ) | ||||||||||||||||
Effect of Derivative Investments for the six months ended August 31, 2026
The table below summarizes the gains (losses) on derivative investments, detailed by primary risk exposure, recognized in earnings during the period:
|
Location of Gain (Loss) on
Consolidated Statement of Operations
|
||||
|
Currency
Risk |
||||
|
Realized Gain:
|
||||
|
Forward foreign currency contracts
|
$3,533,234 | |||
|
Change in Net Unrealized Appreciation (Depreciation):
|
||||
|
Forward foreign currency contracts
|
(2,011,450) | |||
|
Total
|
$1,521,784 | |||
The table below summarizes the average notional value of derivatives held during the period.
|
Forward
|
||||
|
Foreign Currency
|
||||
|
Contracts
|
||||
|
Average notional value
|
$148,863,336 | |||
NOTE 5-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 have the option to defer compensation payable by the Fund, and
Trustees' and Officers' Fees and Benefits
also include amounts accrued by the Fund to fund such deferred
|
30
|
Invesco Dynamic Credit Opportunity Fund
|
compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Obligations under the deferred compensation plan represent unsecured claims against the general assets of the Fund.
NOTE 6-Cash Balances and Borrowings
The Fund entered into a revolving credit and security agreement with U.S. Bank National Association and PNC Bank, National Association (the "U.S. Bank Credit Agreement"), which will expire on April 27, 2027. The U.S. Bank Credit Agreement permitted borrowings as follows: up to $200 million prior to August 18, 2026; and up to $140 million effective August 18, 2026.
The revolving credit and security agreement is secured by the assets of the Fund. The Fund is subject to certain covenants relating to the revolving credit and security agreement. Failure to comply with these restrictions could cause the acceleration of the repayment of the amount outstanding under the revolving credit and security agreement.
During the period ended August 31, 2026, the average daily balance of borrowing under the Fund's U.S. Bank Credit Agreement was $92,793,478 with an average interest rate of 5.48%.
The carrying amount of the Fund's payables for borrowings as reported on the Consolidated Statement of Assets and Liabilities approximates its fair value. Expenses under the revolving credit and security agreements are shown in the Consolidated Statement of Operations as
Interest, facilities and maintenance fees
.
Additionally, the Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at
period-end,
are shown in the Consolidated Statement of Assets and Liabilities under the payable caption
Amount due custodian
. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.
|
31
|
Invesco Dynamic Credit Opportunity Fund
|
NOTE 7-Unfunded Loan Commitments
Pursuant to the terms of certain Senior Loan agreements, the Fund held the following unfunded loan commitments as of August 31, 2026. The Fund intends to reserve against such contingent obligations by designating cash, liquid securities and liquid Senior Loans as a reserve. Unfunded loan commitments are reflected as a liability on the Consolidated Statement of Assets and Liabilities.
|
Borrower
|
Type
|
Unfunded Loan
Commitment |
Unrealized
Appreciation (Depreciation) |
||||||||||
|
80-20
|
Delayed Draw Term Loan | $ | 251,685 | $ | 505 | ||||||||
|
80-20
|
Revolver Loan | 379,243 | (957 | ) | |||||||||
|
AMCP Pet Holdings, Inc.
|
Delayed Draw Term Loan | 63,002 | 0 | ||||||||||
|
AnaCap (AFE S.A. SICAV-RAIF)
|
Delayed Draw Term Loan | 250,183 | (1,018 | ) | |||||||||
|
Arcosa Marine Products, Inc.
|
Revolver Loan | 160,308 | 406 | ||||||||||
|
Armstrong Transport Group
|
Delayed Draw Term Loan | 207,717 | (72 | ) | |||||||||
|
Armstrong Transport Group
|
Revolver Loan | 80,756 | (21 | ) | |||||||||
|
AWP Group Holdings, Inc.
|
Revolver Loan | 513,196 | (423 | ) | |||||||||
|
BNI Intermediate Holdings LLC
|
Delayed Draw Term Loan | 22,297 | (4 | ) | |||||||||
|
BNI Intermediate Holdings LLC
|
Revolver Loan | 99,609 | (19 | ) | |||||||||
|
Capitol Imaging Services LLC
|
Incremental Delayed Draw Term Loan | 1,007,928 | 522 | ||||||||||
|
Capitol Imaging Services LLC
|
Revolver Loan | 127,131 | 780 | ||||||||||
|
CoreWeave
|
Delayed Draw Term Loan | 174,491 | 3,473 | ||||||||||
|
CoreWeave Financing DDTL
V-V
LLC
|
Delayed Draw Term Loan | 178,322 | 6,309 | ||||||||||
|
Eisner Advisory Group LLC
|
Delayed Draw Term Loan | 267,138 | 2,316 | ||||||||||
|
Evaaro US Bidco (Keg Logistics + Ekeg MergeCo)
|
Delayed Draw Term Loan | 271,364 | (1,901 | ) | |||||||||
|
Evaaro US Bidco (Keg Logistics + Ekeg MergeCo)
|
Delayed Draw Term Loan | 15,024 | (70 | ) | |||||||||
|
Evaaro US Bidco (Keg Logistics + Ekeg MergeCo)
|
Revolver Loan | 218,383 | 18 | ||||||||||
|
FDH Group Acquisition, Inc.
|
Delayed Draw Term Loan | 81,872 | 305 | ||||||||||
|
FDH Group Acquisition, Inc.
|
Delayed Draw Term Loan | 3,981,516 | 18,484 | ||||||||||
|
GC Ferry Acquisition I, Inc. (First Eagle Investment Management LLC)
|
Delayed Draw Term Loan | 239,251 | 1,005 | ||||||||||
|
IMS Services Enterprises LLC
|
Delayed Draw Term Loan | 498,288 | (1,151 | ) | |||||||||
|
IMS Services Enterprises LLC
|
Revolver Loan | 239,546 | 617 | ||||||||||
|
IPS Corp./CP Iris Holdco
|
Delayed Draw Term Loan | 21,415 | (529 | ) | |||||||||
|
Keg Logistics LLC
|
Revolver Loan | 1,360,887 | 5,364 | ||||||||||
|
Lamark Media Group LLC
|
Revolver Loan | 508,348 | 964 | ||||||||||
|
Matrix Adhesives
|
Delayed Draw Term Loan | 170,791 | (911 | ) | |||||||||
|
Matrix Adhesives
|
Revolver Loan | 212,852 | (132 | ) | |||||||||
|
McDermott International, Ltd.
|
LOC | 2,600,801 | (48,765 | ) | |||||||||
|
MicroCare Holdings LLC
|
Delayed Draw Term Loan | 600,330 | 3,749 | ||||||||||
|
MicroCare Holdings LLC
|
Revolver Loan | 596,597 | 7,482 | ||||||||||
|
Muth Mirror Systems LLC
|
Revolver Loan | 419,144 | (284,968 | ) | |||||||||
|
NAC Aviation 8 Ltd.
|
Revolver Loan | 1,642,458 | 0 | ||||||||||
|
Nationwide Legal LLC
|
Delayed Draw Term Loan | 2,162,347 | (5,339 | ) | |||||||||
|
Nationwide Legal LLC
|
Revolver Loan | 604,846 | (1,487 | ) | |||||||||
|
Netrix LLC
|
Revolver Loan | 290,086 | (8,244 | ) | |||||||||
|
S3 AeroDefense
|
Delayed Draw Term Loan | 2,132,500 | (8,929 | ) | |||||||||
|
Selecta Group B.V.
|
Revolver Loan | 2,906 | 86 | ||||||||||
|
Source Holding Delaware LLC
|
Delayed Draw Term Loan | 367,701 | (11,948 | ) | |||||||||
|
Source Holding Delaware LLC
|
Revolver Loan | 65,449 | (1,831 | ) | |||||||||
|
Stage 3 Holdco LLC
|
Delayed Draw Term Loan | 157,695 | (76 | ) | |||||||||
|
Stage 3 Holdco LLC
|
Revolver Loan | 63,077 | (29 | ) | |||||||||
|
Tank Holding Corp.
|
Revolver Loan | 175,149 | (7,181 | ) | |||||||||
|
V Global Holdings LLC
|
Revolver Loan | 408,387 | (25,207 | ) | |||||||||
|
Veterinary Practice Partners LLC
|
Delayed Draw Term Loan | 68,914 | (20 | ) | |||||||||
|
Veterinary Practice Partners LLC
|
Revolver Loan | 34,933 | (7 | ) | |||||||||
|
Western Smokehouse Partners
|
Delayed Draw Term Loan | 255,669 | 478 | ||||||||||
|
Western Smokehouse Partners
|
Revolver Loan | 182,231 | 1,496 | ||||||||||
| $ | 24,433,763 | $ | (356,880 | ) | |||||||||
|
32
|
Invesco Dynamic Credit Opportunity Fund
|
NOTE 8-Tax Information
The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund's capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund's fiscal
year-end.
For the six months ended August 31, 2026, the Subsidiary did not incur any current or deferred federal income tax expense.
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 of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund had a capital loss carryforward as of February 28, 2026, as follows:
|
Capital Loss Carryforward*
|
||||||||||||||||||||
|
Expiration
|
Short-Term
|
Long-Term
|
Total
|
|||||||||||||||||
|
Not subject to expiration
|
$ | 17,754,507 | $ | 118,928,994 | $ | 136,683,501 | ||||||||||||||
|
Expiring 2031
|
967,734 | - | 967,734 | |||||||||||||||||
|
Total
|
$ | 18,722,241 | $ | 118,928,994 | $ | 137,651,235 | ||||||||||||||
| * |
Capital loss carryforward is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization.
|
NOTE 9-Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the six months ended August 31, 2026 was $85,804,704 and $58,083,866, respectively. As of August 31, 2026, the aggregate cost of investments, including any derivatives, on a tax basis listed below includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting
period-end:
|
Unrealized Appreciation (Depreciation) of Investments on a Tax Basis
|
||||
|
Aggregate unrealized appreciation of investments
|
$ | 31,617,091 | ||
|
Aggregate unrealized (depreciation) of investments
|
(87,511,351 | ) | ||
|
Net unrealized appreciation (depreciation) of investments
|
$ | (55,894,260 | ) | |
Cost of investments for tax purposes is $413,739,782.
NOTE 10-Senior Loan Participation Commitments
The Fund invests in participations, assignments, or acts as a party to the primary lending syndicate of a Senior Loan interest to corporations, partnerships, and other entities. When the Fund purchases a participation of a Senior Loan interest, the Fund typically enters into a contractual agreement with the lender or other third party selling the participation, but not with the borrower directly. As such, the Fund assumes the credit risk of the borrower, selling participant or other persons interpositioned between the Fund and the borrower.
At the six months ended August 31, 2026, the following sets forth the selling participants with respect to interest in Senior Loans purchased by the Fund on a participation basis.
|
Selling Participant
|
Principal
Amount
|
Value
|
||||||||
|
Barclays Bank PLC
|
$ | 2,600,801 | $ | 2,561,789 | ||||||
NOTE 11-Dividends
The Fund declared the following monthly dividends from net investment income subsequent to August 31, 2026.
|
Amount Per Share
|
||||||
|
Share Class
|
Record Date
|
Payable September 30, 2026
|
||||
|
Class A
|
Daily | $0.0706 | ||||
|
Class AX
|
Daily | $0.0726 | ||||
|
Class Y
|
Daily | $0.0726 | ||||
|
Class R6
|
Daily | $0.0736 | ||||
NOTE 12-Repurchase of Shares
The Fund has a policy of making quarterly repurchase offers ("Repurchase Offers") for the Fund's common shares pursuant to Rule
23c-3(b)
of the 1940 Act.
The Repurchase Offers will be for between 5% and 25% of the Fund's outstanding shares at net asset value (The Board of Trustees may authorize an additional 2%, if necessary, without extending the Repurchase Offers). Written notification of each quarterly repurchase offer is sent to shareholders no less than 21 days and no more than 42 days before each repurchase request deadline. During the six months ended August 31, 2026, the Fund had Repurchase Offers as follows:
|
Repurchase request deadlines
|
Percentage of
outstanding shares the
Fund offered to
repurchase
|
Number of shares
tendered (all classes)
|
Percentage of
outstanding shares
tendered (all classes)
|
|||||||||||||
|
March 20, 2026
|
5.0 | % | 757,327 | 3.0 | % | |||||||||||
|
June 18, 2026
|
5.0 | 733,549 | 2.7 | |||||||||||||
|
33
|
Invesco Dynamic Credit Opportunity Fund
|
NOTE 13-Share Information
|
Summary of Share Activity
|
||||||||||||||||
|
Six months ended
August 31, 2026
(a)
|
Year ended
February 28, 2026
|
|||||||||||||||
|
Shares
|
Amount
|
Shares
|
Amount
|
|||||||||||||
|
Sold:
|
||||||||||||||||
|
Class A
|
2,834 | $ | 27,345 | 66,288 | $ | 698,263 | ||||||||||
|
Class AX
|
35,504 | 346,364 | 130,193 | 1,373,452 | ||||||||||||
|
Class Y
|
28,019 | 270,387 | 78,020 | 819,780 | ||||||||||||
|
Class R6
|
2,485,089 | 25,000,000 | 3,555,021 | 36,566,777 | ||||||||||||
|
Issued as reinvestment of dividends:
|
||||||||||||||||
|
Class A
|
2,037 | 19,832 | 4,701 | 49,490 | ||||||||||||
|
Class AX
|
200,958 | 1,957,079 | 526,736 | 5,580,038 | ||||||||||||
|
Class Y
|
1,000 | 9,690 | 1,008 | 10,558 | ||||||||||||
|
Class R6
|
62,760 | 611,400 | 109,915 | 1,156,242 | ||||||||||||
|
Reacquired:
|
||||||||||||||||
|
Class A
|
(7,184 | ) | (71,367 | ) | (1,633 | ) | (17,528 | ) | ||||||||
|
Class AX
|
(1,470,028 | ) | (14,429,588 | ) | (3,132,025 | ) | (33,393,258 | ) | ||||||||
|
Class Y
|
(13,665 | ) | (136,599 | ) | (2,626 | ) | (27,346 | ) | ||||||||
|
Net increase in share activity
|
1,327,324 | $ | 13,604,543 | 1,335,598 | $ | 12,816,468 | ||||||||||
|
(a)
|
There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 26% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be 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, distribution, third party record keeping and account servicing. The Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.
|
In addition, 29% of the outstanding shares of the Fund are owned by the Adviser or an affiliate of the Adviser.
|
34
|
Invesco Dynamic Credit Opportunity Fund
|
Approval of Investment Advisory and Sub-Advisory Contracts
At meetings held on June 10, 2026, the Board of Trustees (the Board or the Trustees) of Invesco Dynamic Credit Opportunity Fund (the Fund) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Fund's Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup
Sub-Advisory
Contract for Mutual Funds with Invesco Management S.A., Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited and Invesco Senior Secured Management, Inc., a separate
sub-advisory
contract with Invesco Capital Management LLC (collectively, the Affiliated
Sub-Advisers),
and a separate
sub-advisory
contract with Barings LLC and
sub-sub-advisory
contract with Baring International Investment Limited (BIIL and with Barings LLC, Barings, and collectively, the
sub-advisory
contracts) for another year, effective July 1, 2026. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund's investment advisory agreement and the
sub-advisory
contracts and determined that the compensation payable thereunder by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated
Sub-Advisers
and to Barings is fair and reasonable.
The Board's Evaluation Process
The Board considered the broad range of information relevant to the annual review process for the Invesco Funds' investment advisory agreement and
sub-advisory
contracts (the annual review process) that is provided to the Board throughout the year. Additionally, the Board has established an Investments Committee, which in turn has established
Sub-Committees.
The
Sub-Committees
meet regularly throughout the year with portfolio managers and other members of management to review information about the investment performance and portfolio attributes for those funds advised by Invesco Advisers (Invesco Funds) assigned to them. The Board has established additional standing and ad hoc committees that meet throughout the year to review matters within their purview, including a working group focused on opportunities to make ongoing and continuous improvements to the annual review process. In considering whether to approve each Invesco Fund's investment advisory agreement and
sub-advisory
contracts, the Board took into account evaluations and reports that it received from its committees and
sub-committees,
as well as the information provided to the Board and its committees and
sub-committees
throughout the year.
As part of the annual review process, the Board reviews and considers information provided in response to requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees (independent legal counsel) and the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. The Board receives comparative investment performance and fee and expense data regarding the Invesco Funds prepared by Broadridge Financial Solutions, Inc. (Broadridge), an independent provider of investment
company data, as well as information on the composition of the peer groups and its methodology for determining peer groups. The Board also receives an independent written evaluation from the Senior Officer. The Senior Officer's evaluation is prepared as part of his responsibility to manage the process by which the Invesco Funds' proposed management fees are negotiated during the annual review process to ensure they are negotiated in a manner that is at arms' length and reasonable in accordance with certain negotiated regulatory requirements. In addition to meetings with Invesco Advisers and fund counsel throughout the year and as part of meetings convened on April
28-29,
2026 and June
9-11,
2026, the independent Trustees also discussed the continuance of the investment advisory agreement and
sub-advisory
contracts in separate sessions with the Senior Officer and with independent legal counsel.
The discussion below includes summary information drawn in part from the Senior Officer's independent written evaluation with respect to the Fund's investment advisory agreement and
sub-advisory
contracts, as well as a discussion of the material factors and related conclusions that formed the basis for the Board's approval of the Fund's investment advisory agreement and
sub-advisory
contracts. The Trustees' review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee.
Factors and Conclusions and Summary of Independent Written Fee Evaluation
|
A.
|
Nature, Extent and Quality of Services Provided by Invesco Advisers and the Affiliated
Sub-Advisers
|
The Board reviewed the nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund's investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund's portfolio manager(s). The Board's review included consideration of Invesco Advisers' investment process and oversight, credit analysis and research capabilities. The Board considered information regarding Invesco Advisers' programs for and resources devoted to risk management, including management of investment, enterprise, operational, liquidity, derivatives, valuation and compliance risks, and technology and other resources used to manage such risks. The Board received information regarding Invesco's methodology for compensating its investment professionals and the incentives and accountability it creates, as well as how it impacts Invesco's ability to attract and retain talent. The Board considered that Invesco Advisers has shown the willingness to commit resources to support investment in the business and to remain well-positioned to serve Fund shareholders including with regard to attracting and retaining qualified personnel on its investment teams and investing in technology including emerging technologies such as those driven by artificial intelligence. The Board also considered Invesco's commitment to the Fund
evidenced by its purchase of a significant dollar amount of Fund shares in 2024 to facilitate Fund liquidity and
non-prorated
repurchase offers. The Board considered the additional services provided to the Fund due to the fact that the Fund is a
closed-end
interval fund, including, but not limited to, leverage management and monitoring, and facilitation and management of the Fund's quarterly repurchase offers. The Board received a description of, and reports related to, Invesco Advisers' global security program and business continuity plans and of its approach to data privacy and cybersecurity, including related testing. The Board also considered
non-advisory
services that Invesco Advisers and its affiliates provide to the Invesco Funds, such as various middle office and back office support functions, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board considered Invesco Advisers' systems preparedness and ongoing investment to seek to manage, operate and oversee the Invesco Funds with minimal impact or disruption through challenging environments. The Board reviewed and considered the benefits to shareholders of investing in a Fund that is part of the family of funds under the umbrella of Invesco Ltd., Invesco Advisers' parent company, and noted Invesco Ltd.'s depth and experience in running an investment management business, as well as its commitment of financial and other resources to such business. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers supported the renewal of the investment advisory agreement.
The Board reviewed the services that may be provided to the Fund by the Affiliated
Sub-Advisers
under the
sub-advisory
contracts and the credentials and experience of the officers and employees of the Affiliated
Sub-Advisers
who provide these services. The Board noted the Affiliated
Sub-Advisers'
expertise with respect to certain asset classes and that the Affiliated
Sub-Advisers
have offices and personnel that are located in financial centers around the world. As a result, the Board noted that the Affiliated
Sub-Advisers
can provide research and investment analysis on the markets and economies of various countries and territories in which the Fund may invest, make recommendations regarding securities and assist with portfolio trading. The Board concluded that the
sub-advisory
contracts may benefit the Fund and its shareholders by permitting Invesco Advisers to use the resources and talents of the Affiliated
Sub-Advisers
in managing the Fund. The Board concluded that the nature, extent and quality of the services that may be provided to the Fund by the Affiliated
Sub-Advisers
supported the renewal of the
sub-advisory
contracts.
The Board reviewed the nature, extent and quality of the services provided to the Fund by Barings under the
sub-advisory
contract and
sub-sub-advisory
contract, and the credentials and experience of the officers and employees of Barings who provide these services, including the Fund's portfolio managers from Barings. The Board's review included consideration of Invesco Advisers' recommendation of Barings LLC as a
Sub-Adviser
and BIIL as a
Sub-Sub-Adviser
to the Fund, including Invesco Advisers' evaluation of Barings' operations,
|
35
|
Invesco Dynamic Credit Opportunity Fund
|
qualifications, performance and experience. The Board also considered Barings' expertise with respect to certain asset classes and strategies, including their international capabilities in the direct lending space, and how that experience complements that of Invesco Advisers and the affiliated
Sub-Advisers
of the Fund. The Board reviewed the evaluation by the Fund's Chief Compliance Officer (CCO) of Barings' compliance program, noting that the CCO believed the program to be reasonably designed to prevent the violation of federal securities laws. The Board considered that the
sub-advisory
contract and
sub-sub-advisory
contract benefit the Fund and its shareholders by permitting Invesco Advisers to use the resources and differentiated expertise of Barings in managing the Fund. The Board concluded that the nature, extent and quality of the services provided to the Fund by Barings supported the approval of the
sub-advisory
contract and
sub-sub-advisory
contract.
|
B.
|
Fund Investment Performance
|
The Board considered Fund investment performance as a relevant factor in considering whether to approve the investment advisory agreement as well as the
sub-advisory
contracts for the Fund, as Invesco Senior Secured Management, Inc., Invesco Asset Management Limited and Barings currently manage assets of the Fund.
The Board considered that the Fund continued the historical performance information of Invesco Dynamic Credit Opportunities Fund (the Acquired Fund), an exchange-listed
closed-end
fund with the same investment objective and substantially similar principal investment strategies as the Fund, following the consummation of the reorganization of the Acquired Fund into the Fund in November 2021. The Board compared the Fund's investment performance over multiple time periods ending December 31, 2025 to the performance of funds in the Broadridge performance universe and against the S&P UBS Leveraged Loan Index(Index). The Board noted that performance of Class AX shares of the Fund was in the fourth quintile of its performance universe for the one and three year periods and the second quintile for the five year period (the first quintile being the best performing funds on a relative basis and the fifth quintile being the worst performing funds on a relative basis). The Board noted that performance of Class AX shares of the Fund was below the performance of the Index for the one year period, reasonably comparable to the performance of the Index for the three year period, and above the performance of the Index for the five year period. The Board acknowledged limitations regarding the Broadridge data, in particular that differences may exist between the Fund's investment objective, principal investment strategies and/or investment restrictions and those of its performance peer funds, and further noted that the Fund is unique relative to its peers in that it is a
closed-end
interval fund. The Board also considered that in 2025 the Adviser had recommended, and the Board had approved (with shareholder approval as applicable), the appointment of Barings as a
sub-adviser
to the Fund and certain strategy changes for the Fund, with the understanding that these changes allow for the potential for improved risk adjusted returns as well as the potential for increased investor interest in the Fund. The Board considered information presented regarding the integration of Barings into the portfolio management process. The Board recognized that the performance data reflects a snapshot in time as of a particular date and that selecting a different
performance period could produce different results. The Board also reviewed more recent Fund performance as well as other performance metrics, including Barings' performance in other accounts that it manages within its private credit and capital solutions strategies, which did not change its conclusions.
|
C.
|
Advisory and
Sub-Advisory
Fees and Fund Expenses
|
The Board received information regarding Invesco Advisers' approach with respect to contractual management fee schedules and compared the Fund's contractual management fee rate to the contractual management fee rates of funds in the Fund's Broadridge expense group. The Board noted that the contractual management and actual management fee rates for Class AX shares of the Fund were below and the same as, respectively, the median contractual management and actual management fee rates of funds in its expense group. The Board also noted that the term "contractual management fee" and "actual management fee" for funds in the expense group may include both advisory and certain
non-portfolio
management administrative services fees, but that Broadridge is not able to provide information on a
fund-by-fund
basis as to what is included. The Board also reviewed the methodology used by Broadridge in calculating expense group information, which includes using each fund's contractual management fee schedule (including any applicable breakpoints) as reported in the most recent audited annual reports for each fund in the expense group. The Board also considered comparative information regarding the Fund's total expense ratio and its various components. The Board noted that the Fund's total expense ratio was in the fourth quintile of its expense group and discussed with management reasons for such relative total expenses.
The Board noted that Invesco Advisers and the Affiliated
Sub-Advisers
do not manage other similarly managed mutual funds or client accounts.
The Board also considered the services that may be provided by the Affiliated
Sub-Advisers
pursuant to the
sub-advisory
contracts, as well as the fees payable by Invesco Advisers to the Affiliated
Sub-Advisers
pursuant to the
sub-advisory
contracts. The Board noted that the
sub-advisory
fees for the Fund are negotiated at arm's length by Invesco Advisers and are paid by Invesco Advisers out of its advisory fees. The Board noted that Invesco Advisers retains overall responsibility for, and provides services to,
sub-advised
Invesco Funds, including oversight of the Affiliated
Sub-Advisers
and as well as the additional services described herein other than
day-to-day
portfolio management.
The Board considered the services provided by Barings pursuant to the
sub-advisory
contract and the
sub-sub-advisory
contract, as well as the fees payable by Invesco Advisers to Barings LLC pursuant to the
sub-advisory
contract and the fees payable by Barings LLC to BIIL pursuant to the
sub-sub-advisory
contract. The Board noted that Invesco Advisers retains overall responsibility for, and provides services to, the Fund, including oversight of Barings. The Board considered that the
sub-advisory
contract and
sub-sub-advisory
contract do not result in any changes to the Fund's current fees. The Board considered that the fees paid under the
sub-advisory
contract and the
sub-sub-advisory
contract appeared to be the result of arms-length negotiations.
The Board considered the amount and structure of the compensation to Barings and received
information from Invesco Advisers that such terms were the result of arm's length, competitive negotiation. Invesco Advisers also advised that it had sought to obtain comparative fee information from public sources, but that such information is limited and was not available. The Board noted that Barings and BIIL do not manage other mutual funds or client accounts with strategies substantially similar to that of the Fund.
|
D.
|
Economies of Scale and Breakpoints
|
The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund and the Invesco Funds, and the extent to which such economies of scale are shared with the Fund and the Invesco Funds. The Board acknowledged the limitations in calculating and measuring economies of scale at the individual fund level, noting that only indicative and estimated measures are available at the individual fund level and that such measures are subject to uncertainty. The Board noted that the Fund does not benefit from economies of scale through contractual breakpoints, but does share in economies of scale through Invesco Advisers' ability to negotiate lower fee arrangements with third party service providers. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, as well as Invesco Advisers' management of significant assets and investment in its business, including investments in business infrastructure, technology and cybersecurity.
|
E.
|
Profitability and Financial Resources
|
The Board reviewed information from Invesco Advisers concerning the costs of the advisory and other services that Invesco Advisers and its affiliates provide to the Fund and the Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services in the aggregate and on an individual
fund-by-fund
basis. The Board considered the methodology used for calculating profitability and the periodic review and enhancement of such methodology. The Board noted that Invesco Advisers continues to operate at a net profit from services Invesco Advisers and its affiliates provide to the Invesco Funds in the aggregate and to most Invesco Funds individually. The Board considered that profits to Invesco Advisers can vary significantly depending on the particular Invesco Fund, with some Invesco Funds showing indicative losses to Invesco Advisers and others showing indicative profits at healthy levels, and that Invesco Advisers' support for and commitment to an Invesco Fund are not, however, solely dependent on the profits attributed to such Fund. The Board did not deem the level of profits realized by Invesco Advisers and its affiliates from providing such services to be excessive, given the nature, extent and quality of the services provided. The Board noted that Invesco Advisers provided information demonstrating that Invesco Advisers is financially sound and has the resources necessary to perform its obligations under the investment advisory agreement, and provided representations indicating that the Affiliated
Sub-Advisers
are financially sound and have the resources necessary to perform their obligations under the
sub-advisory
contracts. The Board noted the cyclical and competitive nature of the global asset management industry.
The Board did not consider Barings' projected profitability because Invesco Advisers would be paying Barings out of the advisory fees that Invesco Advisers receives from the Fund for the
sub-advisory
contract. The Board therefore believed that Invesco
|
36
|
Invesco Dynamic Credit Opportunity Fund
|
Advisers has an incentive to negotiate competitive
sub-advisory
fees. The Board also noted that Barings LLC would be paying BIIL for the services provided under the
sub-sub-advisory
contract. The Board received information from Barings demonstrating that Barings is financially sound and has the resources necessary to perform its obligations under the
sub-advisory
contract and
sub-sub-advisory
contract
|
F.
|
Collateral Benefits to Invesco Advisers and its Affiliates
|
The Board considered various other benefits received by Invesco Advisers and its affiliates from the relationship with the Fund, including the fees received for providing administrative, transfer agency and distribution services to the Fund. The Board received comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. The Board reviewed the performance of Invesco Advisers and its affiliates in providing these services and the organizational structure employed to provide these services. The Board noted that these services are provided to the Fund pursuant to written contracts that are reviewed and subject to approval on an annual basis by the Board based on its reasonable business judgement and in accordance with applicable regulatory guidance.
|
G.
|
Collateral Benefits to Barings
|
The Board considered various other benefits received by Barings from the relationship with the Fund, including the opportunity for Barings to scale its investment capabilities within the U.S. wealth market and expand its distribution and product opportunities.
|
37
|
Invesco Dynamic Credit Opportunity Fund
|
Distribution Information
Shareholders were sent a notice from the Fund that set forth an estimate on a per share basis of the source or sources from which the distribution was paid in April of 2026. Subsequently, certain of these estimates have been corrected. Listed below is a written statement of the sources of this distribution, as corrected, on a generally accepted accounting principles ("GAAP") basis.
|
Net Income
|
Gain from
Sale of Securities |
Return of Principal
|
Total Distribution
|
|||||||
|
04/30/2026
|
Class R6 | $0.0623 | $0.000 | $0.0218 | $0.0841 | |||||
|
04/30/2026
|
Class Y | $0.0621 | $0.000 | $0.0218 | $0.0839 | |||||
|
04/30/2026
|
Class A | $0.0600 | $0.000 | $0.0218 | $0.0818 | |||||
|
04/30/2026
|
Class AX | $0.0620 | $0.000 | $0.0218 | $0.0838 |
Please note that the information in the preceding chart is for financial accounting purposes only. Shareholders should be aware that the tax treatment of distributions likely differs from GAAP treatment. Form
1099-DIV
for the calendar year will report distributions for US federal income tax purposes. This Notice is sent to comply with certain US Securities and Exchange Commission requirements.
|
38
|
Invesco Dynamic Credit Opportunity Fund
|
(This page intentionally left blank)
Go paperless with eDelivery
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∎
Fund reports and prospectuses
∎
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∎
Daily confirmations
∎
Tax forms
Invesco mailing information
Send general correspondence to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.
Important notice regarding delivery of security holder documents
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at 800 959 4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
Fund holdings and proxy voting information
The Fund provides a complete list of its portfolio holdings four times each year, at the end of each fiscal quarter. For the second and fourth quarters, the list appears, respectively, in the Fund's semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the list with the Securities and Exchange Commission (SEC) as an exhibit to its reports on Form
N-PORT.
The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund's Form
N-PORT
filings on the SEC website, sec.gov. The SEC file numbers for the Fund are shown below.
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 at invesco.com/
corporate/about-us/esg.
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 most recent
12-month
period ended June 30 is available at invesco.com/proxysearch. This 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 US 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.
|
SEC file number(s):
811-23665
and 333-255932
|
Invesco Distributors, Inc. |
VK-CE-DCO-SAR-1
|
(b) Not applicable.
Item 2. Code of Ethics.
Not applicable for a semi-annual report.
Item 3. Audit Committee Financial Expert.
Not applicable for a semi-annual report.
Item 4. Principal Accountant Fees and Services.
Not applicable for a semi-annual report.
Item 5. Audit Committee of Listed Registrants.
Not applicable for a semi-annual report.
Item 6. Investments.
(a) Investments in securities of unaffiliated issuers is filed under Item 1 of this Form N-CSR.
(b) Not applicable.
Item 7. Financial Statements and Financial Highlights for Open-End Management Investment Companies.
Not applicable.
Item 8. Changes in and Disagreements with Accountants for Open-End Management Investment Companies.
Not applicable.
Item 9. Proxy Disclosures for Open-End Management Investment Companies.
Not applicable.
Item 10. Remuneration Paid to Directors, Officers, and Others for Open-End Management Investment Companies.
Not applicable.
Item 11. Statement Regarding Basis for Approval of Investment Advisory Contract.
Not applicable.
Item 12. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 13. Portfolio Managers of Closed-End Management Investment Companies.
As of August 31, 2026, the following individuals are jointly and primarily responsible for the day-to-day management of the Trust:
●
Scott Baskind (lead manager), Portfolio Manager, who has been responsible for the Fund since 2021 and has been associated with Invesco Senior Secured and/or its affiliates since 1999. Prior to the commencement of the Fund's operations, Mr. Baskind managed the Predecessor Fund since 2010.
●
Nuno Caetano, Portfolio Manager, who has been responsible for the Fund since 2021 and has been associated with Invesco Asset Management and/or its affiliates since 2010. Prior to the commencement of the Fund's operations, Mr. Caetano managed the Predecessor Fund since 2013.
●
Ron Kantowitz, Portfolio Manager, who has been responsible for the Fund since 2021 and has been associated with Invesco Senior Secured and/or its affiliates since 2018. From 2013 to 2018, he was employed with Benefit Street Partners, an alternative credit asset manager, where he served as managing director.
●
Philip Yarrow, Portfolio Manager, who has been responsible for the Fund since 2021 and has been associated with Invesco Senior Secured and/or its affiliates since 2010. Prior to the commencement of the Fund's operations, Mr. Yarrow managed the Predecessor Fund since 2007.
●
Trevor Slaven, Portfolio Manager, who has been responsible for the Fund since 2026 and has been associated with Barings and/or its affiliates since 2024. Prior to joining Barings in 2024, Mr. Slaven was a Managing Director at BlackRock, Inc. where he was the Head of Macro Research for Fundamental Fixed Income, the Head of Fixed Income for the Global Allocation funds, and a portfolio manager for the Strategic Global Bond, World Bond, and Global Government Bond funds. Prior to joining BlackRock, Mr. Slaven was an investment banker at Morgan Joseph & Co.
●
Andrew Tourigney, Portfolio Manager, who has been responsible for the Fund since 2026 and has been associated with Barings and/or its affiliates since 2021. Prior to joining Barings in 2021, Mr. Tourigney served as Vice President and Portfolio Manager, Head of Agency MBS at Hartford Investment Management Company (HIMCO). Previously, he served on HIMCO's Insurance Portfolio Management team and was a member of The Hartford Insurance Group's Market Risk Management organization.
Portfolio Manager Fund Holdings and Information on Other Managed Accounts
Invesco's portfolio managers develop investment models which are used in connection with the management of certain Invesco Funds as well as other mutual funds for which Invesco or an affiliate acts as sub-adviser, other pooled investment vehicles that are not registered mutual funds, and other accounts managed for organizations and individuals. The 'Investments' chart reflects the portfolio managers' investments in the Fund(s) that they manage and includes investments in the Fund's shares beneficially owned by a portfolio manager, as determined in accordance with Rule 16a-1(a)(2) under the Securities Exchange Act of 1934, as amended (the Exchange Act), (beneficial ownership includes ownership by a portfolio manager's immediate family members sharing the same household). The 'Assets Managed' chart reflects information regarding accounts other than the Fund for which each portfolio manager has day-to-day management responsibilities. Accounts are grouped into three categories: (i) other registered investment companies; (ii) other pooled investment vehicles; and (iii) other accounts. To the extent that any of these accounts pay advisory fees that are based on account performance (performance-based fees), information on those accounts is specifically noted. In addition, any assets denominated in foreign currencies have been converted into U.S. dollars using the exchange rates as of the applicable date.
Investments
The following information is as of August 31, 2026 (unless otherwise noted):
|
Fund
|
Portfolio
Manager(s)
|
Dollar Range of
Investments in the Fund
|
|
Invesco Dynamic Credit Opportunity Fund
|
||
|
|
Scott Baskind
|
None
|
|
|
Nuno Caetano
|
None
|
|
|
Ron Kantowitz
|
None
|
|
|
Philip Yarrow
|
None
|
|
|
Trevor Slaven
|
None
|
|
|
Andrew Tourigney
|
None
|
|
|
|
|
Assets Managed
The following information is as of August 31, 2026 (unless otherwise noted):
|
Portfolio Manager(s)
|
Other Registered
Investment Companies
Managed
|
Other Pooled
Investment Vehicles
Managed
|
Other
Accounts
Managed
|
|||
|
|
Number of
Accounts
|
Assets
(in millions)
|
Number of
Accounts
|
Assets
(in millions)
|
Number of
Accounts
|
Assets
(in millions)
|
|
Invesco Dynamic Credit Opportunity Fund
|
||||||
|
Scott Baskind
|
5
|
$10,236.9
|
7
|
$7,220.3
|
14
|
$2,463.5
|
|
Nuno Caetano
|
None
|
None
|
None
|
None
|
16
|
$6,954.4
|
|
Ron Kantowitz
|
None
|
None
|
3
|
$902.5
|
None
|
None
|
|
Philip Yarrow
|
4
|
$5,370.3
|
2
|
$4,061.7
|
14
|
$2,463.5
|
|
Trevor Slaven
|
None
|
None
|
1
|
$48.0
|
None
|
None
|
|
Andrew Tourigney
|
None
|
None
|
31
|
$265.01
|
8
|
$27,680.0
|
|
|
|
|
|
|
|
|
1 This amount includes 1 fund that pays performance-based fees with $158.2M in total assets under management.
Potential Conflicts of Interest
Actual or apparent conflicts of interest may arise when a portfolio manager has day-to-day management responsibilities with respect to more than one Fund or other account. More specifically, portfolio managers who manage multiple Funds and/or other accounts may be presented with one or more of the following potential conflicts:
●
The management of multiple Funds and/or other accounts may result in a portfolio manager devoting unequal time and attention to the management of each Fund and/or other account. The Adviser and each Sub-Adviser seek to manage such competing interests for the time and attention of portfolio managers by having portfolio managers focus on a particular investment discipline. Most other accounts managed by a portfolio manager are managed using the same investment models that are used in connection with the management of the Funds.
●
If a portfolio manager identifies a limited investment opportunity which may be suitable for more than one Fund or other account, a Fund may not be able to take full advantage of that opportunity due to an allocation of filled purchase or sale orders across all eligible Funds and other accounts. To deal with these situations, the Adviser, each Sub-Adviser and the Funds have adopted procedures for allocating portfolio transactions across multiple accounts.
●
The Adviser and each Sub-Adviser determine which broker to use to execute each order for securities transactions for the Funds, consistent with its duty to seek best execution of the transaction. However, for certain other accounts (such as mutual funds for which Invesco or an affiliate acts as sub-adviser, other pooled investment vehicles that are not registered mutual funds, and other accounts managed for organizations and individuals), the Adviser and each Sub-Adviser may be limited by the client with respect to the selection of brokers or may be instructed to direct trades through a particular broker. In these cases, trades for a Fund in a particular security may be placed separately from, rather than aggregated with, such other accounts. Having separate transactions with respect to a security may temporarily affect the market price of the security or the execution of the transaction, or both, to the possible detriment of the Fund or other account(s) involved.
●
The appearance of a conflict of interest may arise where the Adviser or Sub-Adviser has an incentive, such as a performance-based management fee, which relates to the management of one Fund or account but not all Funds and accounts for which a portfolio manager has day-to-day management responsibilities.
●
In the case of a fund-of-funds arrangement, including where a portfolio manager manages both the investing Fund and an affiliated underlying fund in which the investing Fund invests or may invest, a conflict of interest may arise if the portfolio manager of the investing Fund receives material nonpublic information about the underlying fund. For example, such a conflict may restrict the ability of the portfolio manager to buy or sell securities of the underlying Fund, potentially for a prolonged period of time, which may adversely affect the Fund.
The Adviser, each Sub-Adviser, and the Funds have adopted certain compliance procedures which are designed to address these types of conflicts. However, there is no guarantee that such procedures will detect each and every situation in which a conflict arises.
Barings Conflict of Interest
The potential for material conflicts of interest may exist when a portfolio manager has responsibilities for the day-to-day management of multiple accounts. These conflicts may be heightened to the extent a portfolio manager, Barings, and/or an affiliate has an investment in one or more of such accounts or an interest in the performance of one or more
such accounts. Barings has identified (and summarized below) areas where material conflicts of interest are most likely to arise, and have adopted policies and procedures that it believes are reasonably designed to address such conflicts.
It is possible that an investment opportunity may be suitable for both a fund and other accounts managed by a portfolio manager, but may not be available in sufficient quantities for both the fund and the other accounts to participate fully. Similarly, there may be limited opportunity to sell an investment held by a fund and another account. A conflict may arise where the portfolio manager may have an incentive to treat an account preferentially as compared to a fund because the account pays Barings a performance-based fee or the portfolio manager, Barings, or an affiliate has an interest in the account. Barings and BIIL have adopted global policies and procedures, including but not limited to a global investment allocation policy and global trade allocation procedures to address allocation of portfolio transactions and investment opportunities across multiple clients. The global policies and procedures are designed to achieve fair and equitable treatment of all clients over time, and specifically prohibit allocations based on performance of an account, the amount or structure of the management fee, performance fee or profit sharing allocations, participation or investment by an employee, Barings, or an affiliate, and whether the account is public, private, proprietary or third party.
Potential material conflicts of interest may also arise related to the knowledge and timing of a fund's trades, investment opportunities and broker selection. Portfolio managers may have information about the size, timing and possible market impact of a fund's trades. It is theoretically possible that portfolio managers could use this information for their personal advantage and/or the advantage of other accounts they manage, or to the possible detriment of a fund. For example, a portfolio manager could front run a fund's trade or short sell a security for an account immediately prior to a fund's sale of that security. To address these conflicts, Barings and BIIL have adopted global policies and procedures governing employees' personal securities transactions, the use of short sales, and trading between the fund and other accounts managed by the portfolio manager or accounts owned by Barings or its affiliates.
With respect to securities transactions for the fund, Barings and BIIL determines which broker to use to execute each order, consistent with their duty to seek best execution of the transaction. Barings and BIIL manage certain other accounts, however, where they may be limited by the client with respect to the selection of brokers or directed to trade such client's transactions through a particular broker. In these cases, trades for a fund in a particular security may be placed separately from, rather than aggregated with, such other accounts. Placing separate transaction orders for a security may temporarily affect the market price of the security or otherwise affect the execution of the transaction to the possible detriment of a fund or the other account(s) involved. Barings and BIIL have adopted global policies and procedures that address best execution and directed brokerage.
A portfolio manager may also face other potential conflicts of interest in managing a fund, and the above is not a complete description of every conflict of interest that could be deemed to exist in managing both a fund and the other accounts listed above.
Description of Compensation Structure
For the Adviser and each Sub-Adviser
The Adviser and each Sub-Adviser seek to maintain a compensation program that is competitively positioned to attract and retain high-caliber investment professionals. Portfolio managers receive a base salary, an incentive cash bonus opportunity and a deferred compensation opportunity. Portfolio manager compensation is reviewed and may be modified each year as appropriate to reflect changes in the market, as well as to adjust the factors used to determine bonuses to promote competitive Fund performance. The Adviser and each Sub-Adviser evaluate competitive market compensation by reviewing compensation survey results conducted by an independent third party of investment industry compensation. Each portfolio manager's compensation consists of the following three elements:
Base Salary. Each portfolio manager is paid a base salary. In setting the base salary, the Adviser and each Sub-Adviser's intention is to be competitive in light of the particular portfolio manager's experience and responsibilities.
Annual Bonus. The portfolio managers are eligible, along with other employees of the Adviser and each Sub-Adviser, to participate in a discretionary year-end bonus pool. The Compensation Committee of Invesco Ltd. reviews and approves the firm-wide bonus pool based upon progress against strategic objectives and annual operating plan, including investment performance, revenues, enterprise expectations and financial results. In addition, while having no direct impact on individual bonuses, assets under management are considered when determining the starting bonus funding levels. Each portfolio manager is eligible to receive an annual cash bonus which is based on quantitative (i.e. investment performance and revenues) and non-quantitative factors (which may include, but are not limited to, enterprise expectations, individual performance, risk management and teamwork).
Each portfolio manager's compensation is linked to the pre-tax investment performance of the Funds/accounts managed by the portfolio manager as described in Table 1 below.
|
Sub-Adviser
|
Performance time period2
|
|
Invesco3
|
One-, Three- and Five-year performance against Fund peer group or Market Index
|
|
Invesco Management S.A.3
|
|
|
Invesco Hong Kong3
|
|
|
Invesco Asset Management3
|
|
|
Invesco Listed Real Assets Division3
|
|
|
|
|
|
Invesco Senior Secured3, 4
|
Not applicable
|
|
Invesco Capital3, 5
|
|
|
|
|
|
Invesco Japan
|
One-, Three- and Five-year performance
|
|
2 Rolling time periods are measured from October 1st to September 30th .
|
|
|
3 Portfolio Managers may be granted an annual deferral award that vests on a pro-rata basis over a four-year period.
|
|
|
4 Invesco Senior Secured's bonus is based on annual measures of equity return and standard tests of collateralization performance.
|
|
|
5 Portfolio Managers for Invesco Capital base their bonus on Invesco results as well as overall performance of Invesco Capital.
|
|
High investment performance (against applicable peer group and/or benchmarks) would deliver compensation generally associated with top pay in the industry (determined by reference to the third-party provided compensation survey information) and poor investment performance (versus applicable peer group) would result in low bonus compared to the applicable peer group or no bonus at all. These decisions are reviewed and approved collectively by senior leadership which has responsibility for executing the compensation approach across the organization.
With respect to Invesco Capital, there is no policy regarding, or agreement with, the Portfolio Managers or any other senior executive of the Adviser to receive bonuses or any other compensation in connection with the performance of any of the accounts managed by the Portfolio Managers.
Deferred / Long Term Compensation. Portfolio managers may be granted a deferred compensation award based on a firm-wide bonus pool approved by the Compensation Committee of Invesco Ltd. Deferred compensation awards largely take the form of long-term awards (LTA) which consist of Fund Deferral (LTF) and Equity (LTE). Fund deferrals are notionally invested in certain Invesco funds selected by the Portfolio Manager and are settled in cash. Equity awards are settled in Invesco Ltd. common shares. Deferred compensation awards have a four-year ratable vesting schedule. The vesting period aligns the interests of the Portfolio Managers with the long-term interests of clients and shareholders and encourages retention.
Retirement and health and welfare arrangements. Portfolio managers are eligible to participate in retirement and health and welfare plans and programs that are available generally to all employees.
Item 14. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 15. Submission of Matters to a Vote of Security Holders.
None.
Item 16. Controls and Procedures.
| (a) |
As of a date within 90 days of the filing date of this report, an evaluation was performed under the supervision and with the participation of the officers of the Registrant, including the Principal Executive Officer ("PEO") and Principal Financial Officer ("PFO"), to assess the effectiveness of the Registrant's disclosure controls and procedures, as that term is defined in Rule 30a-3(c) under the Act. Based on that evaluation, the Registrant's officers, including the PEO and PFO, concluded that the Registrant's disclosure controls and procedures were reasonably designed to ensure: (1) that information required to be disclosed by the Registrant on Form N-CSR is recorded, processed, summarized and reported within the time periods specified by the rules and forms of the Securities and Exchange Commission; and (2) that material information relating to the Registrant is made known to the PEO and PFO as appropriate to allow timely decisions regarding required disclosure. |
| (b) |
There have been no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting. |
Item 17. Disclosure of Securities Lending Activity for Closed-End Management Investment Companies.
Not applicable.
Item 18. Recovery of Erroneously Awarded Compensation.
Not applicable.
Item 19. Exhibits.
(a)(1) Not applicable.
(a)(2) Not applicable.
(a)(3) Certifications of the Registrant's PEO and PFO pursuant to Rule 30a-2(a) under the Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached as Exhibit 99.CERT.
(a)(4) Not applicable.
(a)(5) Not applicable.
(b) Certifications of Registrant's PEO and PFO pursuant to Rule 30a-2(b) under the Act and Section 906 of the Sarbanes-Oxley Act of 2002 are attached as Exhibit 99.906CERT.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| (Registrant) Invesco Dynamic Credit Opportunity Fund | ||
| By: | /s/ Glenn Brightman | |
| Name: | Glenn Brightman | |
| Title: | Principal Executive Officer | |
| Date: November 6, 2026 | ||
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
| By: | /s/ Glenn Brightman | |
| Name: | Glenn Brightman | |
| Title: | Principal Executive Officer | |
| Date: November 6, 2026 | ||
| By: | /s/ Adrien Deberghes | |
| Name: | Adrien Deberghes | |
| Title: | Principal Financial Officer | |
| Date: November 6, 2026 | ||
Invesco Dynamic Credit Opportunity Fund published this content on November 06, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on November 06, 2026 at 14:16 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]