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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   811-06471
Invesco Van Kampen Trust for Investment Grade Municipals
(Exact name of registrant as specified in charter)
1555 Peachtree Street, N.E., Atlanta, Georgia 30309
(Address of principal executive offices)    (Zip code)
Colin Meadows   1555 Peachtree Street, N.E., 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:   2/28
Date of reporting period:    2/28/11
 
 

 


 

Item 1. Reports to Stockholders.

 


 


(FULL PAGE GRAPHIC)
 

 
     
 
Annual Report to Shareholders
  February 28, 2011
 
Invesco Van Kampen Trust for
Investment Grade Municipals
NYSE: VGM
 
     
 
2
  Performance Summary
2
  Management Discussion
4
  Supplemental Information
5
  Dividend Reinvestment Plan
6
  Schedule of Investments
23
  Financial Statements
26
  Notes to Financial Statements
33
  Financial Highlights
34
  Auditor’s Report
35
  Tax Information
T-1
  Trustees and Officers


 


 

 
Management’s Discussion of Trust Performance

 
Performance summary
Please note that the fiscal year-end for Invesco Van Kampen Trust for Investment Grade Municipals has changed to February 28. Therefore, the period covered by this report is from October 31, 2010, the date of the last annual report, through February 28, 2011, the Trust’s new fiscal year-end.
     The Trust’s return can be calculated based on either the market price or the net asset value (NAV) of its shares. NAV per share is determined by dividing the value of the Trust’s portfolio securities, cash and other assets, less all liabilities and preferred shares, by the total number of common shares outstanding, while market price reflects the supply and demand for Trust shares. As a result, the two returns can differ, as they did during the reporting period. Main contributors to return on an NAV basis included our exposure to state general obligation (GO) bonds and local GO bonds.
 
Performance
Cumulative total returns, 10/31/10 to 2/28/11
         
Trust at NAV
    -7.66 %
 
Trust at Market Value
    -11.67  
 
Barclays Capital Municipal Bond Index
    -3.09  
 
 
 
Market Price Discount to NAV as of 2/28/11
    -0.85  
 
 
Lipper Inc.nbsp;  
 
The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Investment return, net asset value and common share market price will fluctuate so that you may have a gain or loss when you sell shares. Please visit invesco.com/performance for the most recent month-end performance. Performance figures reflect Trust expenses, the reinvestment of distributions (if any) and changes in net asset value (NAV) for performance based on NAV and changes in market price for performance based on market price.
     Since the Trust is a closed-end management investment company, shares of the Trust may trade at a discount or premium from the NAV. This characteristic is separate and distinct from the risk that NAV could decrease as a result of investment activities and may be a greater risk to investors expecting to sell their shares after a short time. The Trust cannot predict whether shares will trade at, above or below NAV. The Trust should not be viewed as a vehicle for trading purposes. It is designed primarily for risk-tolerant long-term investors.

 
How we invest
We seek to provide investors with a high level of current income exempt from federal income tax, primarily through investment in a diversified portfolio of investment grade municipal securities.
     We seek to achieve the Trust’s investment objective by investing primarily in municipal securities that are rated BBB or higher by Standard & Poor’s (S&P) or Baa or higher by Moody’s at the time of
purchase. Municipal securities include long-term obligations (“municipal bonds”), short-term municipal notes, participation certificates, municipal leases and tax-exempt commercial paper. The Trust also may invest in securities rated BB/Ba or B by S&P, Moody’s or Fitch, as well as unrated securities that we determine to be of comparable or higher quality. From time to time, we may invest in municipal securities that pay


interest that is subject to the federal alternative minimum tax.
     We employ a bottom-up, research-driven approach to identify securities that have attractive risk/reward characteristics for the sectors in which we invest. We also integrate macroeconomic analysis and forecasting into our evaluation and ranking of various sectors and individual securities. Finally, we employ leverage in an effort to enhance the Trust’s income and total return.
     Sell decisions are based on:
n   A deterioration or likely deterioration of an individual issuer’s capacity to meet its debt obligations on a timely basis.
n   A deterioration or likely deterioration of the broader fundamentals of a particular industry or sector.
n   Opportunities in the secondary or primary market to purchase a security with better relative value.
 
Market conditions and your Trust
In the U.S. and most of the developed world, a gradual and somewhat lackluster recovery continued, with central banks keeping interest rates at low levels and with few of them withdrawing their quantitative easing measures. This helped private sector companies improve their balance sheets and earnings following the global financial crisis that began to dissipate in early 2009. However, investor skepticism of global governments’ abilities to retire huge amounts of debt without affecting economic growth rates caused sovereign debt distress (especially for eurozone countries) and became a focal point of investor concern.


 
Top Five Fixed Income Holdings
               
  1.  
New Jersey (State of) Economic Development Authority
    4.1 %
 
  2.  
North Carolina (State of)
Municipal Power Agency No. 1
(Indexed Caps)
    3.7  
 
  3.  
New York (City of) Transit Authority (Livingston Plaza)
    2.4  
 
  4.  
East Baton Rouge (Parish of)
(Exxon Corp.)
    2.3  
 
  5.  
Florida (State of) Board of Education
    2.1  
 
Portfolio Composition
By credit sector, based on total investments
 
 
Revenue Bonds
    90.3 %
 
General Obligation Bonds
    6.8  
 
Other
    1.8  
 
Pre-refunded Bonds
    1.1  
 
Total Net Assets
       
Applicable to Common Shares
  $702.6 million  
Total Number of Holdings
    465  
The Trust’s holdings are subject to change, and there is no assurance that the Trust will continue to hold any particular security.


2 Invesco Van Kampen Trust for Investment Grade Municipals

 


 

     In the U.S., economic recovery was present, although the pace was modest as stubbornly high unemployment and export weakness continued to weigh on the economy. Real gross domestic product, the broadest measure of overall U.S. economic activity, increased at an annual rate of 3.1% in the fourth quarter of 2010, a marked improvement from the 2.6% decrease in 2009.1 The U.S. Federal Reserve (the Fed) maintained a very accommodative monetary policy throughout the period, with the federal funds target rate unchanged in a range of zero to 0.25%.2 The Fed recently described its view of the U.S. economy by stating: “The Committee will maintain the target range for the federal funds rate at 0 to 1/4 percent and continues to anticipate that economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels for the federal funds rate for an extended period.”2
     During the four-month period covered by this report, municipal bond mutual funds experienced extensive net outflows. Market volatility was heightened across the municipal asset class as U.S. Treasury yields increased, and the market was flooded with new issuance during the last two months of 2010 in anticipation of the Build America Bond (BAB) program ending. These factors contributed to rising investor fears regarding the health of municipal finances leading to redemptions and lower municipal bond prices.
     In terms of yield curve positioning, the Trust’s exposure to the long end of the curve (20+ years) detracted from returns as yields increased during most of the reporting period. Some of our yield curve and duration positioning was obtained through the use of inverse floating rate securities. Inverse floating rate securities are instruments which have an inverse relationship to a referenced interest rate. Inverse floating rate securities can be a more efficient means by which to manage duration, yield curve exposure, credit exposure and potentially can enhance yield.
     Sector performance was driven by quality spread widening for most of the reporting period before tightening in February, largely a result of increased volatility and higher tax-exempt issuance.
As a result, BBB-rated and lower credit quality sectors underperformed and detracted from Trust performance as we held exposure to these market segments.
     At a sector level, our exposure to tax-supported bonds and higher education bonds contributed to returns for the reporting period. Our exposure to health care bonds detracted from returns.
     We employ leverage in an effort to enhance the Trust’s income and total return. Leverage simply magnifies the performance of the Trust, either up or down, and can be implemented several ways. The Trust achieves a leveraged position through both borrowings and the use of financial instruments, which include auction rate preferred shares. During the reporting period, the use of leverage detracted from returns.
     As stated earlier, the Trust trades at a market price and also has an NAV. For most of the reporting period, the Trust fluctuated between trading at a premium and trading at a discount to its underlying NAV. At the end of the reporting period, the Trust was trading at a slight discount.
     Thank you for investing in Invesco Van Kampen Trust for Investment Grade Municipals and for sharing our long-term investment horizon.
1   Bureau of Economic Analysis
2   U.S. Federal Reserve
The views and opinions expressed in management’s discussion of Trust performance are those of Invesco Advisers, Inc. These views and opinions are subject to change at any time based on factors such as market and economic conditions. These views and opinions may not be relied upon as investment advice or recommendations, or as an offer for a particular security. The information is not a complete analysis of every aspect of any market, country, industry, security or the Trust. Statements of fact are from sources considered reliable, but Invesco Advisers, Inc. makes no representation or warranty as to their completeness or accuracy. Although historical performance is no guarantee of future results, these insights may help you understand our investment management philosophy.
See important Trust and, if applicable, index disclosures later in this report.
(PHOTO OF THOMAS BYRON)
Thomas Byron
Portfolio manager, is manager of Invesco Van Kampen Trust for Investment Grade Municipals. Mr. Byron joined Invesco in 2010. He was associated with the Trust’s previous investment adviser or its investment advisory affiliates in an investment capacity from 1981 to 2010 and began managing the Trust in 1997. He earned a B.S. in finance from Marquette University and an M.B.A. in finance from DePaul University.
(PHOTO OF ROBERT STRYKER)
Robert Stryker
Chartered Financial Analyst, portfolio manager, is manager of Invesco Van Kampen Trust for Investment Grade Municipals. Mr. Stryker joined Invesco in 2010. He was associated with the Trust’s previous investment adviser or its investment advisory affiliates in an investment capacity from 1994 to 2010 and began managing the Trust in 2009. He earned a B.S. in finance from the University of Illinois, Chicago.
(PHOTO OF ROBERT WIMMEL)
Robert Wimmel
Portfolio manager, is manager of Invesco Van Kampen Trust for Investment Grade Municipals. Mr. Wimmel joined Invesco in 2010. He was associated with the Trust’s previous investment adviser or its investment advisory affiliates in an investment capacity from 1996 to 2010 and began managing the Trust in 2001. He earned a B.A. in anthropology from the University of Cincinnati and an M.A. in economics from the University of Illinois, Chicago.


3 Invesco Van Kampen Trust for Investment Grade Municipals

 


 

 
Invesco Van Kampen Trust for Investment Grade Municipals’ investment objective is to seek to provide a high level of current income exempt from federal income taxes, consistent with preservation of capital.
n   Unless otherwise stated, information presented in this report is as of February 28, 2011, and is based on total net assets applicable to common shares.
 
n   Unless otherwise noted, all data provided by Invesco.
 
n   To access your Trust’s reports, visit invesco.com/fundreports.
 
 
Principal risks of investing
in the Trust
n   The prices of securities held by the Trust may decline in response to market risks.
 
n   Other risks are described and defined later in this report.
 
About indexes used in this report
n   The Barclays Capital Municipal Bond Index is an unmanaged index considered representative of the tax-exempt bond market.
 
n   The Trust is not managed to track the performance of any particular index, including the index(es) defined here, and consequently, the performance of the Trust may deviate significantly from the performance of the index(es).
 
n   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.
 
Other information
n   The Chartered Financial Analyst® (CFA®) designation is globally recognized and attests to a charterholder’s success in a rigorous and comprehensive study program in the field of investment management and research analysis.
 
n   The returns shown in management’s discussion of Trust performance are based on net asset values calculated for shareholder transactions. Generally accepted accounting principles require adjustments to be made to the net assets of the Trust at period end for financial reporting purposes, and as such, the net asset values for shareholder transactions and the returns based on those net asset values may differ from the net asset values and returns reported in the Financial Highlights.
      





























 
NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE
 
 
NYSE Symbol   VGM


4 Invesco Van Kampen Trust for Investment Grade Municipals

 


 

 
Dividend Reinvestment Plan
The dividend reinvestment plan (the Plan) offers you a prompt and simple way to reinvest your dividends and capital gains distributions (Distributions) into additional shares of your Trust. Under the Plan, the money you earn from Distributions will be reinvested automatically in more shares of your Trust, allowing you to potentially increase your investment over time.

 
Plan benefits
n   Add to your account
 
    You may increase the amount of shares in your Trust easily and automatically with the Plan.
 
n   Low transaction costs
 
    Shareholders who participate in the Plan are able to buy shares at below-market prices when the Trust is trading at a premium to its net asset value (NAV). In addition, transaction costs are low because when new shares are issued by a Trust, there is no fee, and when shares are bought in blocks on the open market, the per share fee is shared among all Participants.
 
n   Convenience
 
    You will receive a detailed account statement from Computershare Trust Company, N.A. (the Agent) which administers the Plan. The statement shows your total Distributions, date of investment, shares acquired, and price per share, as well as the total number of shares in your reinvestment account. You can also access your account via the Internet. To do this, please go to invesco.com/us.
 
n   Safekeeping
 
    The Agent will hold the shares it has acquired for you in safekeeping.
 
How to participate in the Plan
If you own shares in your own name, you can participate directly in the Plan. If your shares are held in “street name” – in the name of your brokerage firm, bank, or other financial institution – you must instruct that entity to participate on your behalf. If they are unable to participate on your behalf, you may request that they reregister your shares in your own name so that you may enroll in the Plan.
 
How to enroll
To enroll in the Plan, please read the Terms and Conditions in the Plan Brochure. You can enroll in the Plan by visiting invesco.com/us, calling toll-free 800 341 2929 or notifying us in writing at Invesco Van Kampen Closed-End Funds, Computershare Trust Company, N.A., P.O. Box 43078, Providence, RI 02940-3078. Please include your Trust name and account number and ensure that all shareholders listed on the account sign these written instructions. Your participation in the Plan will begin with the next Distribution payable after the Agent receives your authorization, as long as they receive it before the “record date,” which is generally 10 business days before such Distributions are paid. If your authorization arrives after such record date, your participation in the Plan will begin with the following Distributions.
 
How the Plan works
If you choose to participate in the Plan, your Distributions will be promptly reinvested for you, automatically increasing your shares. If the Trust is trading at a share price that is equal to its NAV, you’ll pay that amount for your reinvested shares. However, if the Trust is trading above or below NAV, the price is determined by one of two ways:
  1.   Premium: If the Trust is trading at a premium – a market price that is higher than its NAV – you’ll pay either the NAV or 95 percent of the market price, whichever is greater. When the Trust trades at a premium, you’ll pay less for your reinvested shares than an investor purchasing shares on the stock exchange. Keep in mind, a portion of your price reduction may be taxable because you are receiving shares at less than market price.
 
  2.   Discount: If the Trust is trading at a discount – a market price that is lower than NAV – you’ll pay the market price for your reinvested shares.
 
Costs of the Plan
There is no direct charge to you for reinvesting Distributions because the Plan’s fees are paid by your Trust. If your Trust is trading at or above its NAV, your new shares are issued directly by the Trust and there are no brokerage charges or fees. However, if your Trust is trading at a discount, the shares are purchased on the open market, and you will pay your portion of per share fees. These per share fees are typically less than the standard brokerage charges for individual transactions because shares are purchased for all Participants in blocks, resulting in lower fees for each individual Participant. Any service or per share fees are added to the purchase price. Per share fees include any applicable brokerage commissions the Agent is required to pay.
 
Tax implications
The automatic reinvestment of Distributions does not relieve you of any income tax that may be due on Distributions. You will receive tax information annually to help you prepare your federal income tax return.
     Invesco does not offer tax advice. The tax information contained herein is general and is not exhaustive by nature. It was not intended or written to be used, and it cannot be used, by any taxpayer for avoiding penalties that may be imposed on the taxpayer under U.S. federal tax laws. Federal and state tax laws are complex and constantly changing. Shareholders should always consult a legal or tax adviser for information concerning their individual situation.
 
How to withdraw from the Plan
You may withdraw from the Plan at any time by calling 800 341 2929, visiting invesco.com/us or by writing to Invesco Van Kampen Closed-End Funds, Computershare Trust Company, N.A., P.O. Box 43078, Providence, RI 02940-3078. Simply indicate that you would like to withdraw from the Plan, and be sure to include your Trust name and account number. Also, ensure that all shareholders listed on the account have signed these written instructions. If you withdraw, you have three options with regard to the shares held in the Plan:
  1.   If you opt to continue to hold your non-certificated whole shares (Investment Plan Book Shares), they will be held by the Agent electronically as Direct Registration Book-Shares (Book-Entry Shares) and fractional shares will be sold at the then-current market price. Proceeds will be sent via check to your address of record after deducting applicable fees.
 
  2.   If you opt to sell your shares through the Agent, we will sell all full and fractional shares and send the proceeds via check to your address of record after deducting a $2.50 per share fee and applicable per share fee. Per share fees include any applicable brokerage commissions the Agent is required to pay.
 
  3.   You may sell your shares through your financial adviser through the Direct Registration System (DRS). DRS is a service within the securities industry that allows Trust shares to be held in your name in electronic format. You retain full ownership of your shares, without having to hold a stock certificate. You should contact your financial adviser to learn more about any restrictions or fees that may apply.
     To obtain a complete copy of the Dividend Reinvestment Plan, please call our Client Services department at 800 341 2929 or visit invesco.com/us.


5 Invesco Van Kampen Trust for Investment Grade Municipals

 


 

Schedule of Investments
 
February 28, 2011
 
 
                                 
            Principal
   
    Interest
  Maturity
  Amount
   
    Rate   Date   (000)   Value
 
 
Municipal Obligations–170.75%
 
                       
 
Alabama–2.39%
 
                       
Alabama (State of) Board of Education (Southern Union State Community College); Series 2003, Ref. & Improvement RB (INS–NATL)(a)
    5.25 %     07/01/20     $ 3,660     $ 3,844,684  
 
Bessemer Governmental Utility Services Corp.; Series 2008 A, Ref. Water Supply RB (INS–AGL)(a)(b)
    5.00 %     06/01/39       3,225       3,056,720  
 
Birmingham (City of) Airport Authority; Series 2010, Airport RB (INS–AGM)(a)
    5.25 %     07/01/30       2,500       2,526,500  
 
Health Care Authority for Baptist Health (The); Series 2009 A, RB(c)(d)
    6.13 %     05/15/12       2,000       2,077,840  
 
Huntsville-Redstone Village (City of) Special Care Facilities Financing Authority (Redstone Village); Series 2007, Retirement Facilities RB
    5.50 %     01/01/43       2,525       1,796,184  
 
Selma (City of) Industrial Development Board (Gulf Opportunity Zone); Series 2009 A, RB
    6.25 %     11/01/33       3,395       3,490,671  
 
                              16,792,599  
 
 
Alaska–0.54%
 
                       
Matanuska-Susitna Borough (City of) (Public Safety Building Lease); Series 2000, COP (INS–AGM)(a)
    5.75 %     03/01/16       1,350       1,355,629  
 
Northern Tobacco Securitization Corp.; Series 2006 A, Tobacco Settlement Asset-Backed RB
    5.00 %     06/01/46       4,075       2,410,485  
 
                              3,766,114  
 
 
Arizona–4.09%
 
                       
Arizona (State of) Transportation Board;
                               
Series 2008 B, Highway RB
    5.00 %     07/01/25       2,560       2,700,518  
 
Series 2008 B, Highway RB(b)
    5.00 %     07/01/26       3,835       4,013,328  
 
Glendale (City of) Industrial Development Authority (Midwestern University);
                               
Series 2010, RB
    5.00 %     05/15/35       750       667,935  
 
Series 2010, RB
    5.13 %     05/15/40       1,500       1,371,900  
 
Glendale Industrial Development Authority; Series 2005 B, Ref. RB
    5.00 %     12/01/37       2,065       1,703,625  
 
Goodyear (City of) McDowell Road Commercial Corridor Improvement District; Series 2007, Special Assessment Bonds (INS–AMBAC)(a)
    5.25 %     01/01/32       1,775       1,670,950  
 
Maricopa (County of) Industrial Development Authority (Catholic Healthcare West); Series 2009 C, Health Facilities RB(c)(d)
    5.00 %     07/01/14       3,330       3,569,194  
 
Maricopa (County of) Pollution Control Corp. (Arizona Public Service Co.–Palo Verde); Series 2009 B, Ref. PCR(c)(d)
    5.50 %     05/01/12       1,825       1,881,429  
 
Navajo (County of) Pollution Control Corp.;
                               
Series 2009 C, PCR(c)(d)
    5.50 %     06/01/14       900       966,636  
 
Series 2009 E, PCR(c)(d)
    5.75 %     06/01/16       1,035       1,129,951  
 
Phoenix (City of) Industrial Development Authority (Career Success Schools);
                               
Series 2009, Education RB
    7.00 %     01/01/39       970       925,467  
 
Series 2009, Education RB
    7.13 %     01/01/45       925       889,341  
 
Pima (County of) Industrial Development Authority (Global Water Resources LLC); Series 2007, Water & Wastewater RB(e)
    6.55 %     12/01/37       3,400       2,941,850  
 
Salt River Project Agricultural Improvement & Power District; Series 2009 A, Electric System RB(b)
    5.00 %     01/01/28       3,145       3,286,871  
 
University Medical Center Corp.; Series 2005, Hospital RB
    5.00 %     07/01/35       1,205       1,039,301  
 
                              28,758,296  
 
 
California–16.22%
 
                       
Anaheim (City of) Public Financing Authority (Anaheim Public Improvements); Series 1997 C, Sub. Lease RB (INS–AGM)(a)
    6.00 %     09/01/16       1,300       1,434,277  
 
Bay Area Toll Authority (San Francisco Bay Area);
                               
Series 2008 F-1, Toll Bridge RB(b)
    5.00 %     04/01/39       1,500       1,423,020  
 
Series 2008 F-1, Toll Bridge RB
    5.00 %     04/01/39       4,500       4,269,060  
 
Beverly Hills (City of) Unified School District California (Election of 2008); Series 2009, Unlimited Tax CAB GO Bonds(f)
    0.00 %     08/01/28       1,250       442,450  
 
 
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
 
6        Invesco Van Kampen Trust for Investment Grade Municipals


 

                                 
            Principal
   
    Interest
  Maturity
  Amount
   
    Rate   Date   (000)   Value
 
 
California–(continued)
 
                       
                                 
California (State of) Department of Water Resources (Central Valley);
                               
Series 2008 AE, Water RB(b)
    5.00 %     12/01/24     $ 1,175     $ 1,263,407  
 
Series 2008 AE, Water RB(b)
    5.00 %     12/01/25       1,500       1,599,150  
 
Series 2008 AE, Water RB(b)
    5.00 %     12/01/26       1,500       1,587,300  
 
Series 2008 AE, Water RB(b)
    5.00 %     12/01/27       875       919,188  
 
Series 2008 AE, Water RB(b)
    5.00 %     12/01/28       1,500       1,569,060  
 
California (State of) Department of Water Resources;
                               
Series 2002, Water RB (INS–NATL/FGIC)(a)
    5.00 %     12/01/29       730       731,402  
 
Series 2002 X, RB(g)
    5.00 %     12/01/12       10       10,782  
 
Series 2002 X, RB(g)
    5.00 %     12/01/12       260       280,095  
 
California (State of) Health Facilities Financing Authority (Catholic Health Care West) Series 2009 A, RB
    6.00 %     07/01/34       1,500       1,520,475  
 
California (State of) Health Facilities Financing Authority (Sutter Health); Series 2011 B, RB
    5.50 %     08/15/26       1,000       1,006,870  
 
California (State of) Housing Finance Agency (Home Mortgage);
                               
Series 2007 G, RB(e)
    4.95 %     08/01/23       3,000       2,766,270  
 
Series 2007 G, RB(e)
    5.05 %     02/01/29       1,610       1,505,382  
 
Series K 2008, Home Mortgage RB(e)
    5.30 %     08/01/23       4,800       4,504,416  
 
Series K 2008, Home Mortgage RB(e)
    5.45 %     08/01/28       5,500       5,363,325  
 
California (State of) Pollution Control Financing Authority (Waste Management Inc.); Series 2002 B, Solid Waste Disposal PCR(e)
    5.00 %     07/01/27       1,500       1,426,860  
 
California (State of) Statewide Communities Development Authority (Adventist Health System/West); Series 2005 A, Health Facility RB
    5.00 %     03/01/30       2,700       2,467,692  
 
California (State of) Statewide Communities Development Authority (Kaiser Permanente); Series 2009 A, RB
    5.00 %     04/01/19       2,000       2,100,320  
 
California (State of);
                               
Series 2006 CD, Unlimited Tax GO Bonds(e)
    4.60 %     12/01/32       2,850       2,376,074  
 
Series 2009, Various Purpose Unlimited Tax GO Bonds
    5.75 %     04/01/31       1,800       1,860,408  
 
Series 2009 A, Ref. Economic Recovery Unlimited Tax GO Bonds
    5.25 %     07/01/21       2,900       3,230,948  
 
California State University; Series 2002 A, Systemwide RB (INS–AMBAC)(a)
    5.00 %     11/01/33       5,000       4,714,950  
 
Daly (City of) Housing Development Finance Agency (Franciscan Mobile Home Park Acquisition); Series 2007 C, Third Tier Ref. RB
    6.50 %     12/15/47       585       479,021  
 
Florin (City of) Resource Conservation District (Elk Grove Water Service);
                               
Series 2002 B, COP (INS–NATL)(a)
    5.00 %     03/01/33       3,000       2,531,130  
 
Series 2003 A, COP (INS–NATL)(a)
    5.00 %     09/01/33       1,750       1,473,640  
 
Foothill/Eastern Transportation Corridor Agency;
                               
Series 1995 A, Sr. Lien Tollroad CAB RB(f)(h)
    0.00 %     01/01/23       10,750       6,717,783  
 
Series 1999, Ref. Toll Road CAB RB (INS–NATL)(a)(f)
    0.00 %     01/15/17       2,000       1,326,560  
 
Fremont Unified School District; Series 2002 A, Unlimited Tax GO Bonds (INS–NATL/FGIC)(a)
    5.00 %     08/01/25       3,000       3,035,790  
 
Golden State Tobacco Securitization Corp.;
                               
Series 2005 A, Enhanced Tobacco Settlement Asset-Backed RB
    5.00 %     06/01/45       4,000       3,206,720  
 
Series 2007 A-1, Sr. Tobacco Settlement Asset-Backed RB
    4.50 %     06/01/27       3,150       2,267,937  
 
Series 2007 A-1, Sr. Tobacco Settlement Asset-Backed RB
    5.75 %     06/01/47       8,515       5,685,976  
 
Hesperia (City of) Public Financing Authority (Redevelopment & Housing); Series 2007 A, Tax Allocation RB (INS–SYNCORA)(a)
    5.00 %     09/01/37       700       447,608  
 
Los Angeles (City of) Department of Airports (Los Angeles International Airport); Series 2010 B, Sub. Airport RB
    5.00 %     05/15/40       2,000       1,841,680  
 
Los Angeles Unified School District; Series 2009 D, Unlimited Tax GO Bonds
    5.00 %     07/01/22       1,800       1,888,074  
 
Metropolitan Water District of Southern California;
                               
Series 2003 B-1, Water RB (INS–NATL/FGIC)(a)
    5.00 %     10/01/33       1,500       1,509,525  
 
Series 2009 A, Water RB
    5.00 %     01/01/34       2,500       2,529,750  
 
Morongo Band of Mission Indians (Enterprise Casino); Series 2008, RB(i)
    5.50 %     03/01/18       235       221,520  
 
 
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
 
7        Invesco Van Kampen Trust for Investment Grade Municipals


 

                                 
            Principal
   
    Interest
  Maturity
  Amount
   
    Rate   Date   (000)   Value
 
 
California–(continued)
 
                       
                                 
Northern California Tobacco Securitization Authority (Sacramento County Tobacco Securitization Corp.);
                               
Series 2005 A-1, Tobacco Settlement Asset-Backed Turbo RB
    5.38 %     06/01/38     $ 4,700     $ 3,227,255  
 
Series 2005 A-1, Tobacco Settlement Asset-Backed Turbo RB
    5.50 %     06/01/45       1,500       947,160  
 
Palm Springs (City of) Financing Authority (Convention Center Expansion); Series 2004 A, Lease RB (INS–NATL)(a)
    5.50 %     11/01/35       3,500       3,273,690  
 
Palomar Pomerado Health Care District; Series 2009, COP
    6.75 %     11/01/39       1,700       1,686,995  
 
Sacramento (County of); Series 2010, Sr. Airport System RB
    5.00 %     07/01/40       3,415       3,067,046  
 
San Francisco City & County Airports Commission; Series 2008 A-4, Ref. RB(c)(d)(e)
    6.50 %     05/01/12       1,850       1,963,997  
 
Southern California Tobacco Securitization Authority (San Diego County Tobacco Asset Securitization Corp.);
                               
Series 2006 A-1, Sr. Tobacco Settlement Asset-Backed RB
    5.00 %     06/01/37       2,300       1,500,336  
 
Series 2006 A-1, Sr. Tobacco Settlement Asset-Backed RB
    5.13 %     06/01/46       7,600       4,652,796  
 
Temecula (City of) Redevelopment Agency (No. 1); Series 2002, Tax Allocation RB (INS–NATL)(a)
    5.25 %     08/01/36       3,000       2,439,360  
 
Turlock (City of) (Emanuel Medical Center, Inc.); Series 2004, Health Facilities COP
    5.38 %     10/15/34       1,600       1,317,424  
 
Twin Rivers Unified School District (School Facility Bridge Program); Series 2007, COP (INS–AGM)(a)(c)(d)
    3.50 %     05/31/13       1,000       1,000,000  
 
Vernon (City of); Series 2009 A, Electric System RB
    5.13 %     08/01/21       3,250       3,344,153  
 
                              113,956,107  
 
 
Colorado–2.64%
 
                       
Colorado (State of) Educational & Cultural Facilities Authority (The Classical Academy); Series 2003, Ref. & Improvement RB (INS–SYNCORA)(a)
    5.25 %     12/01/23       3,405       3,424,681  
 
Colorado (State of) Health Facilities Authority (Catholic Health); Series 2006 C5, RB (INS–AGM)(a)(b)
    5.00 %     09/01/36       7,300       6,845,356  
 
Colorado (State of) Health Facilities Authority (Portercare Adventist Health); Series 2001, Hospital RB(g)
    6.50 %     11/15/11       1,125       1,184,288  
 
Colorado (State of) Health Facilities Authority (Volunteers of America Care);
                               
Series 2007 A, RB
    5.25 %     07/01/27       800       653,448  
 
Series 2007 A, RB
    5.30 %     07/01/37       600       433,770  
 
Montezuma (County of) Hospital District (Health Facilities Enterprise); Series 2007, Ref. Hospital RB
    5.90 %     10/01/37       955       747,956  
 
Regional Transportation District (Denver Transit Partners Eagle P3);
                               
Series 2010, Private Activity RB
    6.50 %     01/15/30       2,100       2,120,349  
 
Series 2010, Private Activity RB
    6.00 %     01/15/34       1,700       1,599,343  
 
Salida Hospital District; Series 2006, Hospital RB
    5.25 %     10/01/36       2,048       1,574,195  
 
                              18,583,386  
 
 
Connecticut–1.13%
 
                       
Connecticut (State of) (Bradley International Airport); Series 2000 A, Special Obligation Parking RB (INS–ACA)(a)(e)
    6.60 %     07/01/24       3,580       3,388,828  
 
Connecticut (State of) Housing Finance Authority; Series 2010 D 2, Sub. Housing Mortgage Finance Program RB(e)
    5.00 %     05/15/31       2,500       2,404,450  
 
Hamden (Town of) (Whitney Center); Series 2009 B, Facility Entrance Fee Principal Redemption RB
    6.13 %     01/01/14       2,150       2,157,590  
 
                              7,950,868  
 
 
District of Columbia–2.51%
 
                       
District of Columbia (Friendship Public Charter School, Inc.); Series 2003, RB (INS–ACA)(a)
    5.75 %     06/01/18       2,000       1,951,220  
 
District of Columbia (Sibley Memorial Hospital);
                               
Series 2009, Hospital RB
    6.50 %     10/01/29       1,100       1,165,175  
 
Series 2009, Hospital RB
    6.38 %     10/01/34       3,650       3,790,197  
 
District of Columbia Water & Sewer Authority;
                               
Series 2007 A, Public Utility RB (INS–AGM/NATL/FGIC)(a)
    5.50 %     10/01/41       6,000       6,191,880  
 
Series 2008 A, Ref. Public Utility Sub. Lien RB (INS–AGC)(a)(b)
    5.00 %     10/01/29       1,150       1,180,257  
 
Series 2008 A, Ref. Public Utility Sub. Lien RB (INS–AGC)(a)(b)
    5.00 %     10/01/34       2,350       2,353,572  
 
District of Columbia; Series 1993 E, Unlimited Tax GO Bonds(g)
    6.00 %     06/01/13       5       5,023  
 
Metropolitan Washington Airports Authority; Series 2002 A, Airport System RB (INS–NATL/FGIC)(a)(e)
    5.25 %     10/01/32       1,000       974,120  
 
                              17,611,444  
 
                                 
                                 
 
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
 
8        Invesco Van Kampen Trust for Investment Grade Municipals


 

                                 
            Principal
   
    Interest
  Maturity
  Amount
   
    Rate   Date   (000)   Value
 
 
Florida–24.06%
 
                       
Alachua (County of) (North Florida Retirement Village, Inc.);
                               
Series 2007, IDR
    5.25 %     11/15/17     $ 1,000     $ 936,370  
 
Series 2007, IDR
    5.88 %     11/15/36       1,000       752,220  
 
Brevard (County of) Health Facilities Authority (Buena Vida Estates, Inc.); Series 2008, Residential Care Facility RB
    6.75 %     01/01/37       1,740       1,552,898  
 
Brevard (County of) Health Facilities Authority (Health First, Inc.) Series 2005, RB
    5.00 %     04/01/34       4,960       4,423,626  
 
Capital Trust Agency (Fort Lauderdale); Series 2003, Sr. RB(e)
    5.75 %     01/01/32       1,300       1,075,295  
 
Citizens Property Insurance Corp (High Risk Account);
                               
Series 2010 A-1, Sr. Sec. RB
    5.00 %     06/01/14       4,000       4,194,880  
 
Series 2010 A-1, Sr. Sec. RB
    5.25 %     06/01/17       3,410       3,563,996  
 
Escambia (County of) Health Facilities Authority (Florida Health Care Facility Loan Veterans Health Administration Program); Series 2000, Healthcare Facilities RB (INS–AMBAC)(a)
    5.95 %     07/01/20       495       504,687  
 
Florida (State of) Board of Education; Series 2005 D, Unlimited Tax GO Bonds(b)
    4.75 %     06/01/35       15,000       14,444,700  
 
Florida (State of) Department of Transportation;
                               
Series 2004 A, Turnpike RB(b)
    5.00 %     07/01/29       7,295       7,383,853  
 
Series 2008 A, Ref. Turnpike RB(b)
    5.00 %     07/01/26       1,910       1,954,045  
 
Series 2008 A, Ref. Turnpike RB(b)
    5.00 %     07/01/27       1,935       1,966,366  
 
Series 2008 A, Ref. Turnpike RB(b)
    5.00 %     07/01/28       2,100       2,123,646  
 
Series 2008 A, Ref. Turnpike RB(b)
    5.00 %     07/01/32       2,500       2,506,700  
 
Florida (State of) Housing Finance Corp. (Home Ownership Mortgage);
                               
Series 1991 B, RB(e)
    8.60 %     11/01/18       170       179,457  
 
Series 2000, RB (INS–AGM)(a)(e)
    6.25 %     07/01/22       325       329,030  
 
Florida (State of) Ports Financing Commission (State Transportation Trust Fund); Series 1996, RB (INS–NATL)(a)(e)
    5.38 %     06/01/27       2,000       1,953,240  
 
Florida (State of) Ports Financing Commission (State Transportation Trust Fund-Intermodal Program); Series 1999, RB (INS–NATL/FGIC)(a)(e)
    5.50 %     10/01/29       8,475       8,267,532  
 
Gainesville (City of); Series 1980, Utility System RB(h)
    8.13 %     10/01/14       260       290,633  
 
Gramercy Farms Community Development District; Series 2007 B, Special Assessment RB(j)
    5.10 %     05/01/14       1,000       438,800  
 
Gulf Breeze (City of) (Local Government Loan Program);
                               
Series 1985, RB (INS–FGIC)(a)(c)(d)
    5.65 %     12/01/17       500       505,355  
 
Series 1985, RB (INS–FGIC)(a)(d)
    5.80 %     12/01/20       1,000       1,007,530  
 
Hernando (County of) Sterling Hill Community Development; Series 2003 A, Capital Improvement RB
    6.20 %     05/01/35       1,250       1,066,025  
 
Hillsborough (County of) Aviation Authority;
                               
Series 2008 A, RB (INS–AGL)(a)(b)(e)
    5.38 %     10/01/33       1,450       1,389,579  
 
Series 2008 A, RB (INS–AGL)(a)(b)(e)
    5.50 %     10/01/38       3,260       3,064,237  
 
Hillsborough (County of) Industrial Development Authority (Tampa Electric Co.);
                               
Series 2006, Ref. PCR (INS–AMBAC)(a)(c)(d)
    5.00 %     03/15/12       1,100       1,137,510  
 
Series 2007 B, Ref. PCR(c)(d)
    5.15 %     09/01/13       1,225       1,311,412  
 
Hillsborough (County of) Industrial Development Authority (Tampa General Hospital); Series 2006, RB
    5.25 %     10/01/41       14,150       12,246,825  
 
Hillsborough (County of) Port District (Tampa Port Authority); Series 2002 A, RB (INS–NATL)(a)(e)
    5.38 %     06/01/27       2,745       2,680,822  
 
Hillsborough (County of);
                               
Series 2000, Capacity Special Assessment RB (INS–AGM)(a)
    5.00 %     03/01/15       750       759,233  
 
Series 2000, Capacity Special Assessment RB (INS–AGM)(a)
    5.00 %     09/01/15       750       759,165  
 
Series 2006 A, Solid Waste & Resources Recovery RB (INS–BHAC)(a)(e)
    4.50 %     09/01/34       9,325       7,827,218  
 
Lakeland (City of) (Lakeland Regional Health Systems); Series 2006, Hospital System RB
    5.00 %     11/15/25       5,105       4,875,632  
 
Lakeland (City of);
                               
Series 1989, Electric & Water RB(h)
    5.75 %     10/01/19       2,230       2,350,576  
 
Series 1990, Electric & Water CAB RB(f)(h)
    0.00 %     10/01/13       7,000       6,770,540  
 
Lee (County of) Industrial Development Authority (County Community Charter Schools, LLC); Series 2007 A, RB
    5.38 %     06/15/37       1,000       751,920  
 
Main Street Community Development District;
                               
Series 2008 A, Capital Improvement Special Assessment RB(i)
    6.80 %     05/01/38       990       746,975  
 
Series 2008 B, Capital Improvement Special Assessment RB(i)
    6.90 %     05/01/17       650       588,855  
 
 
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
 
9        Invesco Van Kampen Trust for Investment Grade Municipals


 

                                 
            Principal
   
    Interest
  Maturity
  Amount
   
    Rate   Date   (000)   Value
 
 
Florida–(continued)
 
                       
                                 
Miami Beach (City of); Series 2000, Stormwater RB (INS–NATL/FGIC)(a)
    5.25 %     09/01/25     $ 1,500     $ 1,509,315  
 
Miami-Dade (County of) (Miami International Airport);
                               
Series 2000 B, Aviation RB (INS–NATL/FGIC)(a)
    5.45 %     10/01/15       870       880,684  
 
Series 2000 B, Aviation RB (INS–NATL/FGIC)(a)
    5.75 %     10/01/29       3,000       3,015,870  
 
Series 2005, Aviation RB (INS–AGC/CIFG)(a)(e)
    5.00 %     10/01/38       3,200       2,792,192  
 
Miami-Dade (County of) Expressway Authority; Series 2010 A, Ref. Toll System RB
    5.00 %     07/01/40       4,250       3,867,372  
 
Miami-Dade (County of) Health Facilities Authority (Miami Children’s Hospital); Series 2010 A, Ref. Hospital RB
    6.13 %     08/01/42       970       969,273  
 
Miami-Dade (County of) Miami International Airport;
                               
Series 2002, Aviation RB (INS–AGC/FGIC)(a)(e)
    5.38 %     10/01/27       2,000       2,005,940  
 
Series 2002, Aviation RB (INS–AGC/FGIC)(a)(e)
    5.38 %     10/01/32       4,720       4,551,590  
 
Miami-Dade (County of);
                               
Series 2002 A, Aviation RB (INS–AGM)(a)(e)
    5.00 %     10/01/33       2,000       1,822,100  
 
Series 2002 A, Aviation RB (INS–AGM)(a)(e)
    5.13 %     10/01/35       2,000       1,803,640  
 
Midtown Miami Community Development District; Series 2004 A, Special Assessment RB
    6.00 %     05/01/24       865       811,742  
 
Orange (County of) Health Facilities Authority (Orlando Lutheran Towers, Inc.); Series 2007, First Mortgage RB
    5.50 %     07/01/32       2,475       1,994,305  
 
Orange (County of) Housing Finance Authority (H.A.N.D.S., Inc.); Series 1995 A, MFH RB(i)
    7.00 %     10/01/25       1,000       1,021,210  
 
Orange (County of);
                               
Series 1992, Ref. Improvement CAB RB (INS–AMBAC)(a)(f)
    0.00 %     10/01/12       1,000       976,030  
 
Series 1992, Ref. Improvement CAB RB (INS–AMBAC)(a)(f)
    0.00 %     10/01/13       1,000       947,420  
 
Overoaks Community Development District;
                               
Series 2004 A, Capital Improvement Special Assessment RB(j)
    6.13 %     05/01/35       190       2  
 
Series 2010 A-1, Capital Improvement RB
    6.13 %     05/01/35       95       87,012  
 
Series 2010 A-2, Capital Improvement RB(k)
    6.13 %     05/01/35       200       116,444  
 
Series 2010 B, Capital Improvement RB(k)
    5.13 %     05/01/17       460       376,505  
 
Palm Beach (County of) Health Facilities Authority (The Waterford); Series 2007, RB
    5.88 %     11/15/37       1,650       1,466,652  
 
Palm Beach (County of) Solid Waste Authority; Series 2009, Improvement RB (INS–BHAC)(a)(b)
    5.50 %     10/01/23       4,000       4,319,240  
 
Pasco (County of) Seven Oaks Community Development District II; Series 2004 A, Special Assessment RB
    5.88 %     05/01/35       1,380       982,091  
 
Pembroke Pines (City of); Series 1992, Consolidated Utility System RB (INS–FGIC)(a)(h)
    6.25 %     09/01/11       270       277,460  
 
Port St. Lucie (City of) (Southwest Annexation District); Series 2007 B-1, Special Assessment RB (INS–NATL)(a)
    5.00 %     07/01/33       2,000       1,714,920  
 
Putnam (County of) Development Authority (Seminole); Series 2007 A, Ref. PCR (INS–AMBAC)(a)(c)(d)
    5.35 %     05/01/18       4,675       4,880,793  
 
Reunion East Community Development District; Series 2005, Special Assessment RB
    5.80 %     05/01/36       880       429,704  
 
Seminole Indian Tribe of Florida; Series 2007 A, Special Obligation RB(i)
    5.25 %     10/01/27       600       501,216  
 
South Lake (County of) Hospital District (South Lake Hospital, Inc.); Series 2003, RB
    6.38 %     10/01/28       1,000       1,002,400  
 
St. Johns (County of) Industrial Development Authority (Glenmoor);
                               
Series 2006 A, Health Care RB
    5.25 %     01/01/26       1,000       808,560  
 
Series 2006 A, Health Care RB
    5.38 %     01/01/40       1,500       1,084,140  
 
St. Lucie (County of) School Board;
                               
Series 2001 A, COP (INS–AGM)(a)
    5.00 %     07/01/21       2,000       2,041,920  
 
Series 2001 A, COP (INS–AGM)(a)
    5.00 %     07/01/23       750       760,380  
 
Tallahassee (City of) (Tallahassee Memorial Health Care, Inc.); Series 2000, Health Facilities RB
    6.38 %     12/01/30       1,000       999,320  
 
Tolomato Community Development District;
                               
Series 2007, Special Assessment RB
    6.55 %     05/01/27       300       209,358  
 
Series 2007, Special Assessment RB
    6.65 %     05/01/40       1,720       1,157,302  
 
Series 2007 A, Special Assessment RB
    5.25 %     05/01/39       495       311,484  
 
 
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
 
10        Invesco Van Kampen Trust for Investment Grade Municipals


 

                                 
            Principal
   
    Interest
  Maturity
  Amount
   
    Rate   Date   (000)   Value
 
 
Florida–(continued)
 
                       
                                 
Village Center Community Development District;
                               
Series 1993, Utility RB (INS–FGIC)(a)(h)
    6.00 %     11/01/18     $ 1,000     $ 1,196,900  
 
Series 2001 A, Recreational RB (INS–NATL)(a)
    5.20 %     11/01/25       1,000       903,560  
 
Series 2003, Utility RB (INS–NATL)(a)
    5.25 %     10/01/23       2,000       1,978,140  
 
Series 2004 A, Recreational RB (INS–NATL)(a)
    5.13 %     11/01/36       3,500       2,778,160  
 
Volusia (County of) Educational Facility Authority (Embry-Riddle Aeronautical University); Series 1999 A, RB
    5.75 %     10/15/29       1,000       1,000,420  
 
                              169,034,149  
 
 
Georgia–3.96%
 
                       
Atlanta (City of) (Beltline);
                               
Series 2009 B, Tax Allocation RB
    6.75 %     01/01/20       1,015       1,017,933  
 
Series 2009 B, Tax Allocation RB
    6.75 %     01/01/20       560       561,618  
 
Series 2009 B, Tax Allocation RB
    7.38 %     01/01/31       310       305,986  
 
Atlanta (City of) (Eastside); Series 2005 B, Tax Allocation RB
    5.60 %     01/01/30       1,000       927,480  
 
Atlanta (City of);
                               
Series 2004 C, Airport Passenger Facility Charge & Sub. Lien General RB (INS–AGM)(a)(b)
    5.00 %     01/01/33       5,250       5,174,190  
 
Series 2009 A, Water & Wastewater RB
    6.00 %     11/01/27       1,850       1,972,748  
 
Series 2009 A, Water & Wastewater RB
    6.00 %     11/01/28       2,000       2,119,720  
 
Series 2009 A, Water & Wastewater RB
    6.00 %     11/01/29       1,850       1,948,827  
 
George L. Smith II Georgia World Congress Center Authority (Domed Stadium); Series 2000, Ref. RB (INS–NATL)(a)(e)
    5.50 %     07/01/20       1,500       1,506,540  
 
Georgia (State of) Municipal Electric Authority;
                               
Series 1997 A, RB (INS–NATL/IBC)(a)
    6.50 %     01/01/20       2,635       3,079,419  
 
Series 1998, Power RB(g)
    6.50 %     01/01/14       85       98,207  
 
Series 1998, Power RB(g)
    6.50 %     01/01/17       240       278,767  
 
Series 1998, Power RB (INS–NATL/IBC/BNY)(a)
    6.50 %     01/01/17       5,575       6,394,637  
 
Putnam (County of) Development Authority (Georgia Power Co.); Series 1996, PCR
    5.10 %     06/01/23       2,400       2,427,240  
 
                              27,813,312  
 
 
Hawaii–0.41%
 
                       
Hawaii (State of); Series 2010 A, Airports System RB
    5.00 %     07/01/39       3,075       2,871,989  
 
 
Idaho–0.80%
 
                       
Idaho (State of) Health Facilities Authority (St. Luke’s Health System);
                               
Series 2008 A, RB
    6.50 %     11/01/23       1,000       1,101,240  
 
Series 2008 A, RB
    6.75 %     11/01/37       1,500       1,606,275  
 
Idaho (State of) Health Facilities Authority (Valley Vista Care Corp.); Series 2007, Ref. RB
    6.13 %     11/15/27       1,230       1,007,714  
 
University of Idaho (The); Series 2011, Ref. General RB(c)(d)
    5.25 %     04/01/21       1,750       1,896,825  
 
                              5,612,054  
 
 
Illinois–12.32%
 
                       
Bartlett (Village of) (Quarry Redevelopment); Series 2007, Ref. Sr. Lien Tax Allocation RB
    5.60 %     01/01/23       1,910       1,561,845  
 
Bourbonnais (Village of) (Olivet Nazarene University); Series 2010, IDR
    5.50 %     11/01/40       1,100       1,032,757  
 
Chicago (City of) (O’Hare International Airport);
                               
Series 2005 A, Airport RB (INS–AGC/NATL)(a)(b)
    5.25 %     01/01/24       4,400       4,476,736  
 
Series 2005 A, Airport RB (INS–AGC/NATL)(a)(b)
    5.25 %     01/01/25       11,500       11,636,275  
 
Series 2008 A, Airport RB (INS–AGM)(a)(b)
    5.00 %     01/01/33       5,700       5,430,276  
 
Chicago (City of) Board of Education;
                               
Series 2008 C, Ref. Unlimited Tax GO Bonds (INS–AGM)(a)(b)
    5.00 %     12/01/27       5,775       5,549,602  
 
Series 2008 C, Ref. Unlimited Tax GO Bonds (INS–AGM)(a)
    5.00 %     12/01/27       5,900       5,669,723  
 
 
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
 
11        Invesco Van Kampen Trust for Investment Grade Municipals


 

                                 
            Principal
   
    Interest
  Maturity
  Amount
   
    Rate   Date   (000)   Value
 
 
Illinois–(continued)
 
                       
                                 
Chicago (City of);
                               
Series 1993, Ref. Unlimited Tax GO Bonds (INS–AMBAC)(a)
    5.13 %     01/01/15     $ 685     $ 724,326  
 
Series 2001 A, Unlimited Tax GO Bonds (INS–NATL)(a)
    5.00 %     01/01/31       1,095       1,003,929  
 
Series 2008 A, Unlimited Tax GO Bonds (INS–AGL)(a)(b)
    5.25 %     01/01/25       3,500       3,474,275  
 
Granite City (City of) (Waste Management, Inc.); Series 2002, Disposal RB(c)(d)(e)
    3.50 %     05/01/13       1,300       1,297,387  
 
Illinois (State of) Finance Authority (Adventist Health System);
                               
Series 1997, RB (INS–NATL)(a)
    5.50 %     11/15/13       2,310       2,510,000  
 
Series 1997, RB (INS–NATL)(a)
    5.50 %     11/15/15       2,500       2,774,800  
 
Illinois (State of) Finance Authority (Disposal Waste Management Inc.); Series 2005 A, Solid Waste RB(e)
    5.05 %     08/01/29       1,330       1,219,477  
 
Illinois (State of) Finance Authority (Evangelical Hospital); Series 1992 C, RB (INS–AGM)(a)
    6.75 %     04/15/17       1,250       1,474,825  
 
Illinois (State of) Finance Authority (Kish Health System Obligated Group); Series 2008, Ref. RB
    5.50 %     10/01/22       1,860       1,898,632  
 
Illinois (State of) Finance Authority (Northwestern Memorial Hospital);
                               
Series 2009 A, RB(b)
    5.38 %     08/15/24       3,500       3,700,900  
 
Series 2009 A, RB(b)
    5.75 %     08/15/30       2,000       2,052,460  
 
Illinois (State of) Finance Authority (OSF Healthcare System); Series 2007 A, RB
    5.75 %     11/15/37       4,500       4,181,580  
 
Illinois (State of) Finance Authority (Park Place of Elmhurst); Series 2010 D-2, TEMPS RB
    7.00 %     11/15/15       2,700       2,644,704  
 
Illinois (State of) Finance Authority (Riverside Health System); Series 2009, RB
    6.25 %     11/15/35       1,900       1,929,089  
 
Illinois (State of) Finance Authority (Roosevelt University); Series 2007, RB
    5.50 %     04/01/37       1,000       893,440  
 
Illinois (State of) Finance Authority (Rush University Medical Center Obligated Group); Series 2009 A, RB
    7.25 %     11/01/38       2,885       3,071,054  
 
Illinois (State of) Finance Authority (Sherman Health Systems); Series 2007 A, RB
    5.50 %     08/01/37       4,500       3,800,880  
 
Illinois (State of) Finance Authority (South Suburban Hospital); Series 1992, RB(h)
    7.00 %     02/15/18       1,880       2,238,948  
 
Illinois (State of) Metropolitan Pier & Exposition Authority (McCormick Place Expansion); Series 2010 A, RB
    5.50 %     06/15/50       3,375       3,104,392  
 
Railsplitter Tobacco Settlement Authority; Series 2010, RB
    5.50 %     06/01/23       5,475       5,248,390  
 
Will-Kankakee Regional Development Authority (Senior Estates Supportive Living); Series 2007, MFH RB(e)
    7.00 %     12/01/42       775       670,282  
 
Yorkville (City of) United City (Cannonball/Beecher); Series 2007, Special Tax Bonds
    5.75 %     03/01/28       1,480       1,293,727  
 
                              86,564,711  
 
 
Indiana–2.00%
 
                       
Crown Point (City of) (Wittenberg Village); Series 2009 C-1, TEMPS Economic Development RB
    7.25 %     11/15/14       1,065       1,051,272  
 
Indiana (State of) Finance Authority (Deaconess Hospital Obligated Group); Series 2009 A, Hospital RB
    6.75 %     03/01/39       2,200       2,333,804  
 
Indiana (State of) Finance Authority (Indianapolis Power & Light Company); Series 2009 A, Ref. Environmental Facilities RB
    4.90 %     01/01/16       2,500       2,679,275  
 
Indiana (State of) Health & Educational Facilities Financing Authority (Ascension Health Senior Credit); Series 2006 B-6, RB(b)
    5.00 %     11/15/36       5,600       5,130,272  
 
North Adams (City of) Community Schools Renovation Building Corp.; Series 2000, 1st Mortgage CAB RB (INS–AGM)(a)(f)
    0.00 %     01/15/19       1,280       956,736  
 
Petersburg (City of) (Indianapolis Power & Light Company); Series 1995, PCR(e)
    5.95 %     12/01/29       1,500       1,508,010  
 
Vigo (County of) Hospital Authority (Union Hospital, Inc.); Series 2007, Hospital RB(i)
    5.75 %     09/01/42       500       368,580  
 
                              14,027,949  
 
 
Iowa–1.20%
 
                       
Des Moines (City of);
                               
Series 2000 A, Public Parking System RB (INS–NATL/FGIC)(a)
    5.75 %     06/01/15       1,685       1,691,437  
 
Series 2000 A, Public Parking System RB (INS–NATL/FGIC)(a)
    5.75 %     06/01/16       1,785       1,791,819  
 
Iowa (State of) Tobacco Settlement Authority;
                               
Series 2005 C, Asset-Backed RB
    5.38 %     06/01/38       1,410       1,002,876  
 
Series 2005 C, Tobacco Settlement Asset-Backed RB
    5.50 %     06/01/42       5,950       3,940,447  
 
                              8,426,579  
 
                                 
                                 
 
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
 
12        Invesco Van Kampen Trust for Investment Grade Municipals


 

                                 
            Principal
   
    Interest
  Maturity
  Amount
   
    Rate   Date   (000)   Value
 
 
Kansas–1.42%
 
                       
Burlington (City of) (Kansas City Power & Light Company); Series 1993 B, Ref. Environment Improvement RB (INS–SYNCORA)(a)(c)(d)
    5.00 %     04/01/11     $ 2,100     $ 2,107,077  
 
Kansas (State of) Development Finance Authority (Adventist Health System); Series 2009, Hospital RB
    5.75 %     11/15/38       3,800       3,862,092  
 
Olathe (City of) (Catholic Care Campus, Inc.); Series 2006 A, Senior Living Facility RB
    6.00 %     11/15/38       1,075       888,874  
 
Olathe (City of) (Olathe Medical Center); Series 2008, VRD RB (LOC–Bank of America, N.A.)(l)(m)
    0.24 %     09/01/32       3,115       3,115,000  
 
                              9,973,043  
 
 
Kentucky–1.95%
 
                       
Kentucky (State of) Economic Development Finance Authority (Louisville Arena Authority, Inc.); Series 2008 A-1, Sub. RB (INS–AGL)(a)
    5.75 %     12/01/28       2,300       2,408,721  
 
Kentucky (State of) Economic Development Finance Authority (Owensboro Medical Health System, Inc.); Series 2010 A, Hospital Facilities RB
    6.50 %     03/01/45       2,400       2,292,792  
 
Kentucky (State of) Property & Building Commission (No. 93);
                               
Series 2009, RB (INS–AGL)(a)
    5.25 %     02/01/24       2,470       2,626,944  
 
Series 2009, RB (INS–AGL)(a)
    5.25 %     02/01/25       2,780       2,929,731  
 
Louisville/Jefferson (County of) Metropolitan Government (Norton Healthcare, Inc.); Series 2006, Health System RB
    5.25 %     10/01/36       3,915       3,468,024  
 
                              13,726,212  
 
 
Louisiana–4.03%
 
                       
East Baton Rouge (Parish of) (Exxon Corp.); Series 1993, Ref. VRD PCR(m)
    0.16 %     03/01/22       16,000       16,000,000  
 
Lakeshore Villages Master Community Development District; Series 2007, Special Assessment RB(j)
    5.25 %     07/01/17       1,482       779,814  
 
Louisiana (State of) Citizens Property Insurance Corp.; Series 2009 C-2, Assessment RB (INS–AGL)(a)
    6.75 %     06/01/26       3,100       3,533,318  
 
Louisiana (State of) Public Facilities Authority (Entergy Louisiana LLC); Series 2010, RB
    5.00 %     06/01/30       1,700       1,673,021  
 
Louisiana (State of) Rapides Finance Authority (Cleco Power LLC); Series 2007, RB(c)(d)(e)
    5.25 %     03/01/13       2,750       2,873,558  
 
St. John the Baptist (Parish of) (Marathon Oil Corp.); Series 2007 A, RB
    5.13 %     06/01/37       3,750       3,467,437  
 
                              28,327,148  
 
 
Maryland–1.16%
 
                       
Maryland (State of) Economic Development Corp. (Terminal); Series 2010 B, RB
    5.75 %     06/01/35       1,565       1,413,351  
 
Maryland (State of) Economic Development Corp. (Transportation Facilities); Series 2010 A, Economic Development RB
    5.38 %     06/01/25       1,110       1,020,578  
 
Maryland (State of) Health & Higher Educational Facilities Authority (Maryland Institute College of Art Issue); Series 2006, RB
    5.00 %     06/01/40       960       836,592  
 
Maryland (State of) Health & Higher Educational Facilities Authority (Mercy Medical Center); Series 2007 A, RB
    5.50 %     07/01/42       1,915       1,650,807  
 
Maryland (State of) Transportation Authority (Baltimore/Washington International Airport); Series 2002 B, Airport Parking RB (INS–AMBAC)(a)(e)
    5.13 %     03/01/24       2,250       2,263,860  
 
Prince George’s (County of) (National Harbor); Series 2004, Special Obligation RB
    5.20 %     07/01/34       1,175       992,699  
 
                              8,177,887  
 
 
Massachusetts–4.30%
 
                       
Massachusetts (State of) Department of Transportation; Series 2010 B, Sr. System RB
    5.00 %     01/01/32       6,000       5,892,900  
 
Massachusetts (State of) Development Finance Agency (Linden Ponds Inc.);
                               
Series 2007 A, RB
    5.75 %     11/15/35       350       199,465  
 
Series 2007 A, RB
    5.75 %     11/15/42       750       404,925  
 
Massachusetts (State of) Development Finance Agency; Series 2009 B-2, Senior Living Facility RB
    6.25 %     06/01/14       1,585       1,557,659  
 
Massachusetts (State of) Health & Educational Facilities Authority (Berklee College of Music); Series 2007 A, RB
    5.00 %     10/01/32       2,700       2,637,144  
 
Massachusetts (State of) Health & Educational Facilities Authority (Covenant Health Care Systems); Series 2002, RB
    6.00 %     07/01/31       395       394,044  
 
Massachusetts (State of) Health & Educational Facilities Authority (Harvard University); Series 2008 B, RB(b)
    5.00 %     10/01/38       7,000       7,135,450  
 
Massachusetts (State of) Health & Educational Facilities Authority (Massachusetts Institute of Technology Issue); Series 2008 A, RB
    5.00 %     07/01/38       750       763,612  
 
 
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
 
13        Invesco Van Kampen Trust for Investment Grade Municipals


 

                                 
            Principal
   
    Interest
  Maturity
  Amount
   
    Rate   Date   (000)   Value
 
 
Massachusetts–(continued)
 
                       
                                 
Massachusetts (State of) School Building Authority;
                               
Series 2005 A, Dedicated Sales Tax RB (INS–AGM)(a)(b)
    5.00 %     08/15/30     $ 3,850     $ 3,904,478  
 
Series 2007 A, Dedicated Sales Tax RB (INS–AMBAC)(a)(b)
    4.50 %     08/15/35       5,740       5,310,648  
 
Massachusetts (State of) Water Resources Authority; Series 2009 B, RB
    5.00 %     08/01/22       1,800       2,003,814  
 
                              30,204,139  
 
 
Michigan–4.62%
 
                       
Detroit (City of) Downtown Development Authority;
                               
Series 1996, Tax Increment Allocation CAB RB(f)
    0.00 %     07/01/17       3,015       2,200,347  
 
Series 1996, Tax Increment Allocation CAB RB(f)
    0.00 %     07/01/18       3,050       2,070,096  
 
Series 1996, Tax Increment Allocation CAB RB(f)
    0.00 %     07/01/19       3,050       1,928,881  
 
Series 1996, Tax Increment Allocation CAB RB(f)
    0.00 %     07/01/22       3,050       1,545,404  
 
Series 1996, Tax Increment Allocation CAB RB(f)
    0.00 %     07/01/23       3,050       1,428,742  
 
Series 1996, Tax Increment Allocation CAB RB(f)
    0.00 %     07/01/24       3,050       1,325,469  
 
Detroit (City of); Series 2001 C-1, Ref. Sewage Disposal System Sr. Lien RB (INS–AGM)(a)
    7.00 %     07/01/27       3,925       4,521,247  
 
Grand Rapids (City of) Downtown Development Authority;
                               
Series 1994, Tax Increment Allocation CAB RB (INS–NATL)(a)(f)
    0.00 %     06/01/15       3,500       2,987,740  
 
Series 1994, Tax Increment Allocation CAB RB (INS–NATL)(a)(f)
    0.00 %     06/01/16       2,765       2,236,055  
 
Michigan (State of) Kent Hospital Finance Authority (Spectrum Health System);
                               
Series 2008 A, RB(c)(d)
    5.25 %     01/15/14       1,350       1,470,164  
 
Series 2008 A, RB(c)(d)
    5.50 %     01/15/15       600       669,456  
 
Michigan (State of) Strategic Fund (Detroit Edison Co.);
                               
Series 1995 CC, Ref. Limited Obligation PCR (INS–AMBAC)(a)(c)(d)
    4.85 %     09/01/11       2,500       2,528,350  
 
Series 1999 B, Ref. Limited Obligation PCR(e)
    5.65 %     09/01/29       1,000       1,000,220  
 
Series 2002 C, Ref. Limited Obligation RB (INS–SYNCORA)(a)(e)
    5.45 %     12/15/32       2,500       2,364,825  
 
Series 2003 A, Ref. Limited Obligation RB (INS–SYNCORA)(a)(e)
    5.50 %     06/01/30       1,500       1,467,630  
 
Saginaw (City of) Hospital Finance Authority (Covenant Medical Center, Inc.); Series 2010 H, Ref. RB
    5.00 %     07/01/30       3,000       2,687,580  
 
                              32,432,206  
 
 
Minnesota–1.20%
 
                       
Annadale (City of) Economic Development Authority (Annadale Care Center); Series 2007 A, Sr. Housing & Healthcare RB
    5.90 %     11/01/37       355       304,139  
 
Chisago (City of) (CDL Homes LLC); Series 2007, Health Care Facilities RB
    6.00 %     08/01/42       525       461,590  
 
Minneapolis (City of) (Fairview Health Services);
                               
Series 2008 A, Healthcare System RB
    6.38 %     11/15/23       2,750       3,037,430  
 
Series 2008 A, Healthcare System RB
    6.63 %     11/15/28       1,850       1,997,297  
 
Minnesota (State of) Agricultural & Economic Development Board (Healthcare System); Series 1997 A, RB (INS–NATL)(a)
    5.75 %     11/15/26       50       50,004  
 
North Oaks (City of) (Presbyterian Homes of North Oaks); Series 2007, Sr. Housing RB
    6.00 %     10/01/33       775       685,232  
 
St. Paul (City of) Housing & Redevelopment Authority (Health Partners Obligated Group); Series 2006, Health Care Facilities RB
    5.25 %     05/15/36       2,200       1,902,406  
 
                              8,438,098  
 
 
Mississippi–1.66%
 
                       
Mississippi (State of) Business Finance Corp. (Chevron U.S.A. Inc.);
                               
Series 2007 A, VRD Gulf Opportunity Zone IDR(m)
    0.17 %     12/01/30       700       700,000  
 
Series 2007 C, VRD Gulf Opportunity Zone IDR(m)
    0.17 %     12/01/30       11,000       11,000,000  
 
                              11,700,000  
 
 
Missouri–2.08%
 
                       
Cape Girardeau (County of) Industrial Development Authority (Southeast Missouri Hospital Association); Series 2002, Health Care Facilities RB
    5.63 %     06/01/27       245       235,764  
 
 
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
 
14        Invesco Van Kampen Trust for Investment Grade Municipals


 

                                 
            Principal
   
    Interest
  Maturity
  Amount
   
    Rate   Date   (000)   Value
 
 
Missouri–(continued)
 
                       
                                 
Cass (County of); Series 2007, Hospital RB
    5.63 %     05/01/38     $ 1,700     $ 1,422,747  
 
Cole (County of) Industrial Development Authority (Lutheran Senior Services-Heisinger); Series 2004, Sr. Living Facilities RB
    5.50 %     02/01/35       625       573,688  
 
Joplin (City of) Industrial Development Authority (Christian Homes, Inc. Obligated Group);
                               
Series 2007 F, Ref. IDR
    5.75 %     05/15/26       2,500       2,195,125  
 
Series 2007 F, Ref. IDR
    5.75 %     05/15/31       1,000       833,700  
 
Kirkwood (City of) Industrial Development Authority (Aberdeen Heights); Series 2010 C-1, TEMPS Retirement Community IDR
    7.50 %     11/15/16       2,500       2,515,075  
 
Maryland Heights (City of) (South Heights Redevelopment); Series 2007 A, Ref. Tax Increment Allocation RB
    5.50 %     09/01/18       1,140       1,072,455  
 
Missouri (State of) Health & Educational Facilities Authority (Lutheran Senior Services); Series 2010, Sr. RB
    5.38 %     02/01/35       1,200       1,042,416  
 
St. Louis (City of) Industrial Development Authority (Loughborough Commons Redevelopment); Series 2007, Ref. Tax Increment Allocation IDR
    5.75 %     11/01/27       900       795,051  
 
St. Louis (County of) Industrial Development Authority (Friendship Village West Community); Series 2007 A, Senior Living Facilities IDR
    5.38 %     09/01/21       1,250       1,216,275  
 
St. Louis (County of) Industrial Development Authority (St. Andrew’s Resources for Seniors);
                               
Series 2007 A, Senior Living Facilities IDR
    6.38 %     12/01/30       975       827,960  
 
Series 2007 A, Senior Living Facilities RB
    6.38 %     12/01/41       2,335       1,899,919  
 
                              14,630,175  
 
 
Nebraska–0.59%
 
                       
Lancaster (County of) Hospital Authority No. 1 (BryanLGH Medical Center); Series 2008 B-1, Ref. VRD RB (LOC–U.S. Bank, N.A.)(l)(m)
    0.23 %     06/01/31       1,500       1,500,000  
 
Omaha (City of) Public Power District; Series 2006 A, Electricity RB(b)
    5.00 %     02/01/34       2,615       2,627,238  
 
                              4,127,238  
 
 
Nevada–2.38%
 
                       
Clark (County of) (Southwest Gas Corp.);
                               
Series 2003 D, IDR (INS–NATL/FGIC)(a)(e)
    5.25 %     03/01/38       3,500       3,108,525  
 
Series 2004 A, IDR (INS–AMBAC)(a)(e)
    5.25 %     07/01/34       3,000       2,681,100  
 
Nevada (State of) (Capital Improvement & Cultural Affairs);
                               
Series 2008 C, Limited Tax GO Bonds(b)
    5.00 %     06/01/22       4,300       4,589,261  
 
Series 2008 C, Limited Tax GO Bonds(b)
    5.00 %     06/01/23       3,300       3,483,579  
 
Reno (City of) (Renown Regional Medical Center); Series 2007 A, Hospital RB
    5.25 %     06/01/37       3,460       2,854,535  
 
                              16,717,000  
 
 
New Hampshire–0.39%
 
                       
New Hampshire (State of) Business Finance Authority (Pennichuck Water Works, Inc.); Series 1997, Water Facility RB (INS–AMBAC)(a)(e)
    6.30 %     05/01/22       850       851,062  
 
New Hampshire (State of) Business Finance Authority (United Illuminating Co.);
                               
Series 2009, PCR(c)(d)(e)
    7.13 %     02/01/12       1,050       1,090,425  
 
Series 2009 A, Ref. PCR(c)(d)(e)
    6.88 %     02/01/12       750       780,503  
 
                              2,721,990  
 
 
New Jersey–5.22%
 
                       
New Jersey (State of) Economic Development Authority (Lawrenceville School); Series 1996 B, Economic Development RB(m)
    0.17 %     07/01/26       2,500       2,500,000  
 
New Jersey (State of) Economic Development Authority (Provident Group-Montclair Properties LLC–Montclair State University Student Housing); Series 2010 A, RB
    5.88 %     06/01/42       2,475       2,272,025  
 
New Jersey (State of) Economic Development Authority; Series 1992, RB (INS–NATL)(a)
    5.90 %     03/15/21       25,000       28,779,250  
 
New Jersey (State of) Tobacco Settlement Financing Corp.; Series 2007 1-A, Tobacco Settlement Asset-Backed RB
    5.00 %     06/01/41       1,295       778,710  
 
New Jersey (State of) Transportation Trust Fund Authority (Transportation System); Series 1999 A, RB
    5.75 %     06/15/17       2,095       2,338,020  
 
                              36,668,005  
 
                                 
                                 
 
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
 
15        Invesco Van Kampen Trust for Investment Grade Municipals


 

                                 
            Principal
   
    Interest
  Maturity
  Amount
   
    Rate   Date   (000)   Value
 
 
New Mexico–0.91%
 
                       
Farmington (City of) (Public Service Co. of New Mexico San Juan); Series 2010 C, Ref. PCR
    5.90 %     06/01/40     $ 3,125     $ 2,972,531  
 
Jicarilla Apache Nation; Series 2003 A, RB(i)
    5.50 %     09/01/23       1,250       1,295,388  
 
New Mexico (State of) Hospital Equipment Loan Council (Presbyterian Health Care Services); Series 2008 A, Hospital RB(b)
    6.38 %     08/01/32       2,050       2,164,411  
 
                              6,432,330  
 
 
New York–13.94%
 
                       
Brooklyn (City of) Arena Local Development Corp. (Barclays Center);
                               
Series 2009, RB
    6.25 %     07/15/40       2,070       2,026,240  
 
Series 2009, RB
    6.38 %     07/15/43       860       853,980  
 
Metropolitan Transportation Authority;
                               
Series 2002 A, RB (INS–NATL)(a)
    5.25 %     11/15/31       2,500       2,495,100  
 
Series 2009 B, Dedicated Tax Funds RB
    5.25 %     11/15/28       4,000       4,152,640  
 
Series 2010 D, Transportation RB
    5.25 %     11/15/26       7,500       7,616,325  
 
New York (City of) Housing Development Corp.; Series 2007 E1, Multifamily Housing RB(e)
    5.35 %     11/01/37       2,400       2,336,640  
 
New York (City of) Industrial Development Agency (7 World Trade Center, LLC); Series 2005 B, Liberty RB
    6.75 %     03/01/15       3,000       3,003,570  
 
New York (City of) Municipal Water Finance Authority; Series 2008 AA, Water & Sewer RB(b)
    5.00 %     06/15/22       8,450       9,170,025  
 
New York (City of) Transit Authority (Livingston Plaza); Series 1993, Ref. Transporation Facilities RB(h)
    5.40 %     01/01/18       14,930       17,211,603  
 
New York (City of) Transitional Finance Authority; Series 2009 S-3, Building Aid RB
    5.25 %     01/15/39       5,300       5,345,633  
 
New York (City of); Series 2008 I-1, Unlimited Tax GO Bonds(b)
    5.00 %     02/01/26       7,225       7,439,799  
 
New York (State of) Dormitory Authority (Maimonides Medical Center); Series 2004, Mortgage Hospital RB (INS–NATL)(a)
    5.00 %     08/01/33       2,500       2,392,700  
 
New York (State of) Dormitory Authority (School District Financial Program); Series 2009 C, Non State Supported Debt RB (INS–AGL)(a)
    5.00 %     10/01/24       3,000       3,136,230  
 
New York (State of) Local Government Assistance Corp.; Series 1993 E, Ref. RB
    6.00 %     04/01/14       2,790       3,034,850  
 
New York (State of) Thruway Authority;
                               
Series 2009 A, Personal Income Tax RB(b)
    5.00 %     03/15/26       2,800       2,952,544  
 
Series 2009 A, Personal Income Tax RB(b)
    5.00 %     03/15/27       3,100       3,251,621  
 
New York (State of) Urban Development Corp. (Rensselaer Polytechnic Institute–Center for Industrial Innovation); Series 1995, Ref. RB
    5.50 %     01/01/13       790       821,576  
 
Port Authority of New York & New Jersey (JFK International Air Terminal, LLC);
                               
Series 1997, Special Obligation RB (INS–NATL)(a)(e)
    5.75 %     12/01/22       3,000       2,928,420  
 
Series 1997, Special Obligation RB (INS–NATL)(a)(e)
    5.75 %     12/01/25       3,000       2,852,010  
 
Series 2010, Special Obligation RB
    6.00 %     12/01/36       3,000       2,949,480  
 
Port Authority of New York & New Jersey; Series 2006 144th, Consolidated RB(b)
    5.00 %     10/01/35       12,100       11,989,528  
 
                              97,960,514  
 
 
North Carolina–3.84%
 
                       
North Carolina (State of) Medical Care Commission (Southminister); Series 2007 A, First Mortgage Retirement Facilities RB
    5.75 %     10/01/37       1,050       873,705  
 
North Carolina (State of) Municipal Power Agency No. 1 (Indexed Caps); Series 1992, Electric RB (INS–NATL)(a)
    6.00 %     01/01/12       25,000       26,107,500  
 
                              26,981,205  
 
 
North Dakota–0.33%
 
                       
McLean (County of) (Great River Energy); Series 2010 B, Solid Waste Facilities RB
    5.15 %     07/01/40       1,000       931,380  
 
Ward (County of) (Trinity Obligated Group); Series 2006, Health Care Facility RB
    5.13 %     07/01/29       1,500       1,367,535  
 
                              2,298,915  
 
 
Ohio–8.81%
 
                       
Cuyahoga (County of) (Eliza Jennings Senior Care Network); Series 2007 A, Health Care & Independent Living Facilities RB
    5.75 %     05/15/27       450       389,457  
 
 
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
 
16        Invesco Van Kampen Trust for Investment Grade Municipals


 

                                 
            Principal
   
    Interest
  Maturity
  Amount
   
    Rate   Date   (000)   Value
 
 
Ohio–(continued)
 
                       
                                 
Lorain (County of) (Catholic Healthcare Partners);
                               
Series 2003 C-1, Ref. Hospital RB (INS–AGM)(a)(b)
    5.00 %     04/01/24     $ 4,800     $ 4,869,168  
 
Series 2006 A, Hospital RB (INS–AGM)(a)(b)
    5.00 %     02/01/24       4,500       4,565,610  
 
Series 2006 B, Hospital RB (INS–AGM)(a)(b)
    5.00 %     02/01/24       4,525       4,591,020  
 
Lucas (County of) Hospital Promedica Healthcare Series 2011 A, RB,
    6.50 %     11/15/37       3,500       3,716,055  
 
Montgomery (County of) (Catholic Health); Series 2006 C-1, RB (INS–AGM)(a)(b)
    5.00 %     10/01/41       1,625       1,492,936  
 
Montgomery (County of) (Miami Valley Hospital);
                               
Series 2009 A, RB
    6.00 %     11/15/28       2,370       2,442,735  
 
Series 2009 A, RB
    6.25 %     11/15/39       1,465       1,505,258  
 
Ohio (State of) (Cleveland Clinic Health System Obligated Group); Series 2009 B, Hospital RB(b)
    5.00 %     01/01/27       4,000       4,007,440  
 
Ohio (State of) Air Quality Development Authority (Dayton Power); Series 2006, RB (INS–BHAC/FGIC)(a)(b)(e)
    4.80 %     09/01/36       8,000       7,235,920  
 
Ohio (State of) Air Quality Development Authority (FirstEnergy Generation Corp.);
                               
Series 2006, Ref. PCR(c)(d)
    2.25 %     06/03/13       5,000       4,928,550  
 
Series 2009 C, Ref. PCR
    5.63 %     06/01/18       4,300       4,592,013  
 
Ohio (State of) Air Quality Development Authority (Ohio Power Co. Galvin); Series 2010 A, Ref. RB(c)(d)(e)
    2.88 %     08/01/14       2,000       1,993,700  
 
Ohio (State of) Higher Educational Facility Commission (Summa Health System 2010); Series 2010, RB
    5.75 %     11/15/35       2,390       2,176,167  
 
Ohio (State of) Higher Educational Facility Commission (University Hospitals Health System, Inc.); Series 2009 A, RB
    6.75 %     01/15/39       3,000       3,084,960  
 
Ohio (State of) Housing Finance Agency (Mortgage-Backed Securities Program);
                               
Series 2008 D, Residential Mortgage RB (INS–GNMA/FNMA/FHLMC)(a)(b)(e)
    5.30 %     09/01/28       2,232       2,235,861  
 
Series 2008 D, Residential Mortgage RB (INS–GNMA/FNMA/FHLMC)(a)(b)(e)
    5.40 %     03/01/33       1,904       1,884,655  
 
Series 2008 F, Residential Mortgage RB (INS–GNMA/FNMA/FHLMC)(a)(b)
    5.50 %     09/01/39       2,262       2,294,799  
 
Ohio (State of) Water Development Authority (FirstEnergy Nuclear Generation Corp.); Series 2009 A, Ref. PCR(c)(d)
    5.88 %     06/01/16       3,610       3,888,512  
 
                              61,894,816  
 
 
Oklahoma–0.32%
 
                       
Chickasaw Nation (City of); Series 2007, Health System RB(i)
    6.25 %     12/01/32       2,175       2,254,453  
 
 
Oregon–0.28%
 
                       
Portland (City of) (Downtown Waterfront); Series 2000 A, Renewal & Redevelopment Tax Allocation Bonds (INS–AMBAC)(a)
    5.75 %     06/15/16       1,985       2,001,793  
 
 
Pennsylvania–2.13%
 
                       
Allegheny (County of) Higher Education Building Authority Duquesne University Series 2011 A, RB,
    5.50 %     03/01/28       1,500       1,535,940  
 
Delaware River Port Authority;
                               
Series 2010 D, RB
    5.00 %     01/01/35       1,450       1,430,033  
 
Series 2010 D, RB
    5.00 %     01/01/40       1,500       1,457,505  
 
Franklin (County of) Industrial Development Authority (Chambersburg Hospital); Series 2010, RB
    5.38 %     07/01/42       2,900       2,652,630  
 
Pennsylvania (State of) Turnpike Commission;
                               
Series 2009 A, Sub. Turnpike RB (INS–AGL)(a)
    5.00 %     06/01/39       1,825       1,704,641  
 
Series 2010 B2, Conv.Sub. RB(f)
    5.75 %     12/01/28       3,450       2,654,292  
 
Series 2010 B2, Conv.Sub. RB(f)
    6.00 %     12/01/34       2,100       1,599,906  
 
Philadelphia (City of) Authority of Industrial Development Authority (Philadelphia Airport System); Series 2001 A, Airport RB (INS–NATL/FGIC)(a)(e)
    5.13 %     07/01/19       1,000       1,008,120  
 
Ridley Park Hospital Authority (Taylor Hospital); Series 1993 A, Hospital RB(h)
    6.00 %     12/01/13       860       929,970  
 
                              14,973,037  
 
 
Rhode Island–0.37%
 
                       
Tobacco Settlement Corp.; Series 2002 A, Asset-Backed RB
    6.25 %     06/01/42       3,000       2,617,230  
 
 
South Carolina–4.81%
 
                       
Berkeley County School District (Berkeley School Facilities Group Inc.); Series 1995, COP(h)
    5.25 %     02/01/16       2,375       2,626,631  
 
 
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
 
17        Invesco Van Kampen Trust for Investment Grade Municipals


 

                                 
            Principal
   
    Interest
  Maturity
  Amount
   
    Rate   Date   (000)   Value
 
 
South Carolina–(continued)
 
                       
                                 
Charleston (County of) Educational Excellence Finance Corp. (Charleston County School District);
                               
Series 2005, RB(b)
    5.25 %     12/01/25     $ 10,125     $ 10,372,253  
 
Series 2005, RB(b)
    5.25 %     12/01/26       3,375       3,440,104  
 
Myrtle Beach (City of);
                               
Series 2004 A, Hospitality Fee RB (INS–NATL/FGIC)(a)
    5.38 %     06/01/21       1,840       1,914,851  
 
Series 2004 A, Hospitality Fee RB (INS–NATL/FGIC)(a)
    5.38 %     06/01/22       1,935       1,996,881  
 
South Carolina (State of) Jobs-Economic Development Authority (AnMed Health); Series 2009 B, Ref. Hospital & Improvement RB (INS–AGL)(a)
    5.50 %     02/01/38       1,000       1,000,270  
 
South Carolina (State of) Jobs-Economic Development Authority (Electric & Gas Co.);
                               
Series 2002 A, IDR (INS–AMBAC)(a)
    5.20 %     11/01/27       4,500       4,508,955  
 
Series 2002 B, IDR (INS–AMBAC)(a)(e)
    5.45 %     11/01/32       3,750       3,486,338  
 
South Carolina (State of) Jobs-Economic Development Authority (Palmetto Health Alliance); Series 2003 A, Ref. Hospital Facilities RB
    6.25 %     08/01/31       3,000       3,000,480  
 
South Carolina (State of) Jobs-Economic Development Authority (Wesley Commons); Series 2006, Ref. First Mortgage Health Facilities RB
    5.30 %     10/01/36       1,400       1,033,298  
 
South Carolina (State of) Jobs-Economic Development Authority (Woodlands at Furman); Series 2007 A, RB
    6.00 %     11/15/27       750       429,015  
 
                              33,809,076  
 
 
South Dakota–0.06%
 
                       
South Dakota (State of) Health & Educational Facilities Authority (Vocational Education Program); Series 1998 A, RB (INS–AMBAC)(a)
    5.40 %     08/01/13       410       415,888  
 
 
Tennessee–2.16%
 
                       
Chattanooga (City of) Health Educational & Housing Facility Board (CDFI Phase I, LLC); Series 2005 A, Ref. Sr. RB
    5.13 %     10/01/35       4,345       3,579,454  
 
Johnson City (City of) Health & Educational Facilities Board (Mountain States Health); Series 2006 A, First Mortgage MTN Hospital RB
    5.50 %     07/01/36       3,620       3,136,694  
 
Johnson City (City of) Health & Educational Facilities Board; Series 2000 A, Ref. First Mortgage MTN Hospital RB(g)
    7.50 %     07/01/12       3,500       3,852,940  
 
Shelby (County of) Health Educational & Housing Facilities Board; Series 2004 B, RB (INS–AGM)(a)(b)
    5.25 %     09/01/27       4,550       4,612,517  
 
                              15,181,605  
 
 
Texas–16.22%
 
                       
Alliance Airport Authority, Inc. (Federal Express Corp.); Series 2006, Ref. Special Facilities RB(e)
    4.85 %     04/01/21       2,375       2,366,284  
 
Dallas (City of) Civic Center Convention Complex;
                               
Series 2009, Ref. & Improvement RB (INS–AGL)(a)
    5.00 %     08/15/18       1,875       2,027,606  
 
Series 2009, Ref. & Improvement RB (INS–AGL)(a)
    5.00 %     08/15/19       2,200       2,362,162  
 
Dallas (County of) Flood Control District No. 1; Series 2002, Ref. Unlimited Tax GO Bonds
    6.75 %     04/01/16       980       1,036,144  
 
Dallas-Fort Worth (Cities of) International Airport Facilities Improvement Corp.;
                               
Series 2000 A, Joint Airport RB (INS–NATL/FGIC)(a)(e)
    5.75 %     11/01/30       4,000       4,002,560  
 
Series 2001 A, Ref. & Improvement Airport RB (INS–BHAC/FGIC)(a)(e)
    5.50 %     11/01/31       4,000       3,953,440  
 
Series 2002 C, Joint Airport RB (INS–NATL)(a)(e)
    5.75 %     11/01/18       1,050       1,053,707  
 
Series 2002 C, Joint Airport RB (INS–NATL)(a)(e)
    6.00 %     11/01/23       2,000       2,007,500  
 
El Paso (County of) Hospital District; Series 2008 A, Limited Tax GO Bonds (INS–AGL)(a)(b)
    5.00 %     08/15/37       7,960       7,693,499  
 
Harris (County of) (Toll Road); Series 2009 A, Sr. Lien RB(b)
    5.00 %     08/15/32       1,000       1,003,750  
 
Harris (County of) Health Facilities Development Corp. (Baylor College of Medicine); Series 2007 B, VRD Hospital RB (LOC– JP Morgan Chase Bank, N.A.)(l)(m)
    0.19 %     11/15/47       500       500,000  
 
Harris (County of) Health Facilities Development Corp. (Memorial Hermann Healthcare System);
                               
Series 2001 A, Hospital RB(g)
    6.38 %     06/01/11       1,000       1,025,440  
 
Series 2008 B, Ref. Hospital RB
    7.25 %     12/01/35       1,200       1,303,428  
 
Harris (County of) Industrial Development Corp. (Deer Park Refining Limited Partnership); Series 2006, Solid Waste Disposal RB
    5.00 %     02/01/23       1,550       1,558,618  
 
 
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
 
18        Invesco Van Kampen Trust for Investment Grade Municipals


 

                                 
            Principal
   
    Interest
  Maturity
  Amount
   
    Rate   Date   (000)   Value
 
 
Texas–(continued)
 
                       
                                 
Houston (City of);
                               
Series 2000 A, Sub. Lien Airport System RB (INS–AGM)(a)(e)
    5.63 %     07/01/30     $ 1,000     $ 999,920  
 
Series 2007 A, Ref. First Lien Utility System RB (INS–AGM)(a)(b)
    5.00 %     11/15/36       12,800       12,698,368  
 
Judson Independent School District (School Building); Series 2008, Unlimited Tax GO Bonds (INS–AGL)(a)(b)
    5.00 %     02/01/37       5,025       4,914,098  
 
Lower Colorado River Authority; Series 2010 A, Ref. RB
    5.00 %     05/15/40       2,425       2,256,171  
 
Lufkin (City of) Health Facilities Development Corp. (Memorial Health System of East Texas);
                               
Series 2007, Health System RB
    5.50 %     02/15/32       1,650       1,423,669  
 
Series 2007, Health System RB
    5.50 %     02/15/37       1,250       1,037,313  
 
McLennan (County of) Public Facility Corp.; Series 2009, RB
    6.63 %     06/01/35       1,825       1,924,189  
 
Mission (City of) Economic Development Corp. (Waste Management, Inc.); Series 2008, Solid Waste Disposal RB(c)(d)(e)
    6.00 %     08/01/13       1,500       1,583,940  
 
North Central Texas Health Facility Development Corp. (Children’s Medical Center of Dallas); Series 2002, RB (INS–AMBAC)(a)
    5.25 %     08/15/32       3,450       3,393,247  
 
North Texas Tollway Authority;
                               
Series 2008 B, Ref. First Tier System RB
    6.00 %     01/01/26       1,000       1,046,650  
 
Series 2008 B, Ref. First Tier System RB
    6.00 %     01/01/27       1,420       1,484,582  
 
Series 2008 B, Ref. First Tier System RB
    5.63 %     01/01/28       1,000       1,024,710  
 
Series 2008 F, Ref. Second Tier System RB
    5.75 %     01/01/33       4,300       4,154,488  
 
Series 2008 L-2, Ref. First Tier System RB(c)(d)
    6.00 %     01/01/13       2,250       2,421,855  
 
Port Freeport (City of) (The Dow Chemical Co.); Series 1991, Ref. RB
    5.25 %     10/01/11       1,000       1,003,020  
 
Tarrant (County of) Cultural Education Facilities Finance Corp. (Buckingham Senior Living Community, Inc.);
                               
Series 2007, Retirement Facility RB
    5.63 %     11/15/27       1,000       871,880  
 
Series 2007, Retirement Facility RB
    5.75 %     11/15/37       4,200       3,489,654  
 
Tarrant (County of) Cultural Education Facilities Finance Corp. (Buckner Retirement Services, Inc.); Series 2007, Retirement Facility RB
    5.25 %     11/15/37       7,000       6,219,850  
 
Tarrant (County of) Cultural Education Facilities Finance Corp. (C.C. Young Memorial Home);
                               
Series 2007, Retirement Facility RB
    5.75 %     02/15/25       650       532,084  
 
Series 2009 B-2, Retirement Facility RB
    6.50 %     02/15/14       1,850       1,796,812  
 
Tarrant (County of) Cultural Education Facilities Finance Corp. (CHRISTUS Health); Series 2008 A, Ref. RB (INS–AGL)(a)
    6.25 %     07/01/28       4,900       5,123,146  
 
Texas (State of) (Transportation Commission–Mobility Fund); Series 2008, Unlimited Tax GO Bonds(b)
    5.00 %     04/01/28       8,700       9,098,286  
 
Texas (State of) Gulf Coast Waste Disposal Authority (Waste Management); Series 2006 D, RB(e)
    4.55 %     04/01/12       1,500       1,514,520  
 
Texas (State of) Private Activity Surface Transportation Corp. (North Transit Express Mobility); Series 2009, Sr. Lien RB
    6.88 %     12/31/39       2,000       2,024,940  
 
Texas (State of) Public Property Finance Corp. (Mental Health & Retardation); Series 1993, Ref. RB (INS–AGM)(a)
    5.50 %     09/01/13       315       320,922  
 
Texas (State of) Water Development Board (State Revolving Fund); Series 1999 B, Sr. Lien RB
    5.25 %     07/15/17       1,500       1,505,970  
 
Texas A&M University Board of Regents; Series 2009, Financing System RB
    5.00 %     05/15/28       4,000       4,207,320  
 
Tyler (City of) Health Facilities Development Corp. (East Texas Medical Center Regional Healthcare System); Series 2007 A, Ref. & Improvement Hospital RB
    5.38 %     11/01/37       4,900       3,983,700  
 
                              113,949,442  
 
 
Utah–0.24%
 
                       
Utah (State of) Charter School Finance Authority (Summit Academy); Series 2007 A, Charter School RB
    5.80 %     06/15/38       1,100       881,804  
 
Utah (State of) Housing Corp.; Series 2007 E-1-CL I, Single Family Mortgage RB(b)(e)
    5.25 %     01/01/39       808       812,775  
 
                              1,694,579  
 
 
Virginia–0.53%
 
                       
Lexington (City of) Industrial Development Authority (Kendall at Lexington); Series 2007 A, Residential Care Facilities Mortgage RB
    5.50 %     01/01/37       700       537,859  
 
Peninsula Town Center Community Development Authority; Series 2007, Special Obligation RB
    6.45 %     09/01/37       744       664,757  
 
 
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
 
19        Invesco Van Kampen Trust for Investment Grade Municipals


 

                                 
            Principal
   
    Interest
  Maturity
  Amount
   
    Rate   Date   (000)   Value
 
 
Virginia–(continued)
 
                       
                                 
Virginia (State of) Tobacco Settlement Financing Corp.; Series 2005, Asset-Backed RB(g)
    5.50 %     06/01/26     $ 800     $ 887,424  
 
White Oak Village Shops Community Development Authority; Series 2007, Special Assessment RB
    5.30 %     03/01/17       1,638       1,642,160  
 
                              3,732,200  
 
 
Washington–2.12%
 
                       
Energy Northwest (No. 3); Series 2001 A, Ref. Electric RB(a)(g)
    5.50 %     07/01/11       2,500       2,564,450  
 
Goat Hill Properties (Government Office Building); Series 2005, Lease RB (INS–NATL)(a)
    5.00 %     12/01/33       1,000       983,240  
 
Kalispel Tribe Indians; Series 2008, Priority District Washington RB
    6.63 %     01/01/28       1,950       1,687,062  
 
Radford Court Properties;
                               
Series 2000, Student Housing RB (INS–NATL)(a)
    6.00 %     06/01/15       1,435       1,451,790  
 
Series 2000, Student Housing RB (INS–NATL)(a)
    6.00 %     06/01/16       1,585       1,603,544  
 
Spokane (City of) Public Facilities District; Series 2003, RB (INS–NATL)(a)
    5.25 %     09/01/33       3,000       2,961,000  
 
Washington (State of) Health Care Facilities Authority (Swedish Health Services): Series 2011 A, Health Care Facilities Authority RB
    6.25 %     11/15/41       1,525       1,525,961  
 
Washington (State of) Housing Finance Commission (Custodial Receipts Wesley Homes); Series 2008, Non-Profit RB(i)
    6.00 %     01/01/27       2,325       2,110,472  
 
                              14,887,519  
 
 
West Virginia–1.08%
 
                       
Ohio (County of) (Fort Henry Centre Tax Increment Financing District); Series 2007 A, Tax Increment Allocation RB
    5.63 %     06/01/22       250       241,192  
 
Pleasants (County of) (County Commission Allegheny); Series 2007 F, Ref. PCR
    5.25 %     10/15/37       1,290       1,147,984  
 
West Virginia (State of) Hospital Finance Authority (Thomas Health System, Inc.);
                               
Series 2008, Hospital RB
    6.00 %     10/01/20       1,500       1,460,520  
 
Series 2008, Hospital RB
    6.25 %     10/01/23       1,695       1,614,776  
 
West Virginia (State of) Hospital Finance Authority (West Virginia United Health System Obligated Group);
                               
Series 2009 C, Ref. & Improvement Hospital RB
    5.50 %     06/01/34       1,630       1,610,880  
 
Series 2009 C, Ref. & Improvement Hospital RB
    5.50 %     06/01/39       1,535       1,487,814  
 
                              7,563,166  
 
 
Wisconsin–3.02%
 
                       
Southeast Wisconsin Professional Baseball Park District; Series 1998 A, Ref. Sales Tax RB(g)
    5.50 %     12/15/20       2,000       2,327,440  
 
Superior (City of) (Superior Water, Light & Power Company);
                               
Series 2007 A, Ref. Collateralized Utility RB(e)
    5.38 %     11/01/21       700       706,384  
 
Series 2007 B, Collateralized Utility RB(e)
    5.75 %     11/01/37       625       589,250  
 
Wisconsin (State of) Health & Educational Facilities Authority (Aurora Health Care, Inc.); Series 2009 B, RB(c)(d)
    5.13 %     08/15/16       1,400       1,502,298  
 
Wisconsin (State of) Health & Educational Facilities Authority (Meriter Hospital, Inc.);
                               
Series 2002, VRD RB (LOC–JP Morgan Chase Bank, N.A.)(l)(m)
    0.24 %     12/01/32       2,945       2,945,000  
 
Series 2008 A, VRD RB (LOC–U.S. Bank, N.A.)(l)(m)
    0.23 %     12/01/24       2,740       2,740,000  
 
Wisconsin (State of) Health & Educational Facilities Authority (Prohealth Care, Inc. Obligated Group); Series 2009, RB
    6.63 %     02/15/39       1,825       1,913,969  
 
Wisconsin (State of) Housing & Economic Development Authority;
                               
Series 2008 A, Home Ownership RB(b)(e)
    5.30 %     09/01/23       4,100       4,199,589  
 
Series 2008 A, Home Ownership RB(b)(e)
    5.50 %     09/01/28       2,640       2,657,186  
 
Wisconsin (State of); Series 2009 A, General Appropriation RB
    5.38 %     05/01/25       1,545       1,656,379  
 
                              21,237,495  
 
 
Wyoming–0.54%
 
                       
Sweetwater (County of) (FMC Corp.); Series 2005, Ref. Solid Waste Disposal RB(e)
    5.60 %     12/01/35       2,000       1,890,180  
 
Sweetwater (County of) (Idaho Power Co.); Series 2006, Ref. PCR
    5.25 %     07/15/26       1,850       1,912,621  
 
                              3,802,801  
 
                                 
                                 
 
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
 
20        Invesco Van Kampen Trust for Investment Grade Municipals


 

                                 
            Principal
   
    Interest
  Maturity
  Amount
   
    Rate   Date   (000)   Value
 
 
Guam–0.09%
 
                       
Guam (Commonwealth of) Power Authority; Series 1999 A, RB (INS–AMBAC)(a)
    5.25 %     10/01/34     $ 690     $ 628,328  
 
 
Puerto Rico–3.07%
 
                       
Puerto Rico (Commonwealth of) Electric Power Authority;
                               
Series 2010 CCC, Power RB
    5.25 %     07/01/27       3,200       3,087,488  
 
Series 2010 XX, Power RB
    5.25 %     07/01/40       3,050       2,660,301  
 
Puerto Rico (Commonwealth of) Public Buildings Authority (Government Facilities); Series 2004 I, RB(g)
    5.25 %     07/01/14       50       56,411  
 
Puerto Rico (Commonwealth of) Sales Tax Financing Corp.;
                               
Series 2010 A, First Sub. Sales Tax RB
    5.38 %     08/01/39       3,100       2,868,802  
 
Series 2010 C, First Sub. Sales Tax RB
    5.25 %     08/01/41       5,700       5,156,562  
 
Series 2009 A, First Sub. Sales Tax RB(c)(d)(g)
    5.00 %     08/01/11       4,350       4,436,217  
 
Series 2010 A, First Sub. Sales Tax RB
    5.50 %     08/01/42       3,500       3,286,465  
 
                              21,552,246  
 
 
Virgin Islands–0.61%
 
                       
Virgin Islands (Government of) Public Finance Authority (Gross Receipts Taxes Loan Note); Series 1999 A, RB
    6.38 %     10/01/19       1,500       1,517,535  
 
Virgin Islands Public Finance Authority (Matching Fund Loan Note); Series 2010 A, Sr. Lien Working Capital RB
    5.00 %     10/01/25       2,775       2,738,675  
 
                              4,256,210  
 
TOTAL INVESTMENTS(n)–170.75% (Cost $1,222,722,568)
                            1,199,737,546  
 
FLOATING RATE NOTE OBLIGATIONS(o)–(23.09%)
 
                               
Notes with interest rates ranging from 0.26% to 0.41% at 02/28/2011 and contractual maturities of collateral ranging from 06/01/2022 to 10/01/2041 (See Note 1I)
                            (162,220,000 )
 
OTHER ASSETS LESS LIABILITIES–1.92%
                            13,499,202  
 
PREFERRED SHARES–(49.58%)
                            (348,400,000 )
 
NET ASSETS APPLICABLE TO COMMON SHARES–100.00%
                          $ 702,616,748  
 
 
Investment Abbreviations:
 
     
ACA
  – ACA Financial Guaranty Corp.
AGC
  – Assured Guaranty Corp.
AGL
  – Assured Guaranty Ltd.
AGM
  – Assured Guaranty Municipal Corp.
AMBAC
 
– American Municipal Bond Assurance Corp. (AMBAC filed for bankruptcy on November 8, 2010)
BHAC
  – Berkshire Hathaway Assurance Corp.
BNY
  – Bank of New York
CAB
  – Capital Appreciation Bond
CIFG
  – CIFG Assurance North America, Inc.
Conv.
  – Convertible
COP
  – Certificates of Participation
FGIC
  – Financial Guaranty Insurance Co.
FHLMC
  – Federal Home Loan Mortgage Corp.
FNMA
  – Federal National Mortgage Association
GNMA
  – Government National Mortgage Association
GO
  – General Obligation
IBC
  – International Bancshares Corp.
IDR
  – Industrial Development Revenue Bonds
INS
  – Insurer
LOC
  – Letter of Credit
MFH
  – Multi-Family Housing
MTN
  – Medium-Term Notes
NATL
  – National Public Finance Guarantee Corp.
PCR
  – Pollution Control Revenue Bonds
RB
  – Revenue Bonds
Ref.
  – Refunding
Sec.
  – Secured
SYNCORA
  – Syncora Guarantee, Inc.
Sr.
  – Senior
Sub.
  – Subordinated
TEMPS
  – Tax-Exempt Mandatory Paydown Securities
VRD
  – Variable Rate Demand
 
Notes to Schedule of Investments:
 
(a) Principal and/or interest payments are secured by the bond insurance company listed.
(b) Underlying security related to Dealer Trusts entered into by the Trust. See Note 1I.
(c) Security has an irrevocable call by the issuer or mandatory put by the holder. Maturity date reflects such call or put.
(d) Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on February 28, 2011.
(e) Security subject to the alternative minimum tax.
(f) Zero coupon bond issued at a discount.
(g) Advance refunded.
(h) Advance refunded; secured by an escrow fund of U.S. Government obligations or other highly rated collateral.
 
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
 
21        Invesco Van Kampen Trust for Investment Grade Municipals


 

(i) Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended. The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at February 28, 2011 was $9,108,669, which represented 1.30% of the Trust’s Net Assets.
(j) Defaulted security. Currently, the issuer is partially or fully in default with respect to interest payments. The aggregate value of these securities at February 28, 2011 was $1,218,616, which represented 0.17% of the Trust’s Net Assets
(k) Step coupon bond. The interest rate represents the coupon rate at which the bond will accrue at a specified future date.
(l) Principal and interest payments are fully enhanced by a letter of credit from the bank listed or a predecessor bank, branch or subsidiary.
(m) Demand security payable upon demand by the Trust at specified time intervals no greater than thirteen months. Interest rate is redetermined periodically. Rate shown is the rate in effect on February 28, 2011.
(n) This table provides a listing of those entities that have either issued, guaranteed, backed or otherwise enhanced the credit quality of more than 5% of the securities held in the portfolio. In instances where the entity has guaranteed, backed or otherwise enhanced the credit quality of a security, it is not primarily responsible for the issuer’s obligations but may be called upon to satisfy the issuer’s obligations.
 
         
Entities   Percentage
 
Assured Guaranty Municipal Corp. 
    7.87 %
 
National Public Finance Guarantee Corp. 
    13.38 %
 
 
(o) Floating rate note obligations related to securities held. The interest rates shown reflect the rates in effect at February 28, 2011. At February 28, 2011, the Trust’s investments with a value of $273,572,997 are held by the Dealer Trusts and serve as collateral for the $162,220,000 in the floating rate note obligations outstanding at that date.
 
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
 
22        Invesco Van Kampen Trust for Investment Grade Municipals


 

Statement of Assets and Liabilities
 
February 28, 2011
 
 
         
 
Assets:
 
Investments, at value (Cost $1,222,722,568)
  $ 1,199,737,546  
 
Receivable for:
       
Investments sold
    4,155,380  
 
Interest
    16,296,572  
 
Total assets
    1,220,189,498  
 
 
Liabilities:
 
Floating rate note obligations
    162,220,000  
 
Payable for:
       
Investments purchased
    1,482,269  
 
Amount due custodian
    4,866,005  
 
Income distributions — preferred and common shares
    166,515  
 
Accrued fees to affiliates
    56,111  
 
Accrued other operating expenses
    381,850  
 
Total liabilities
    169,172,750  
 
Preferred shares ($0.01 par value, authorized 100,000,000 shares, 13,936 issued with liquidation preference of $25,000 per share)
    348,400,000  
 
Net assets attributable to common shares
  $ 702,616,748  
 
 
Net Assets applicable to common shares consist of:
 
Shares of beneficial interest — common shares
  $ 826,075,178  
 
Undistributed net investment income
    22,349,886  
 
Undistributed net realized gain (loss)
    (122,823,294 )
 
Unrealized appreciation (depreciation)
    (22,985,022 )
 
    $ 702,616,748  
 
 
Net Assets:
 
 
Shares outstanding, $0.01 par value per common share with an unlimited number of shares authorized:
 
Common shares
    54,005,711  
 
Net asset value per common share
  $ 13.01  
 
Market value per common share
  $ 12.90  
 
 
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
 
23        Invesco Van Kampen Trust for Investment Grade Municipals


 

Statement of Operations
 
For the period November 1, 2010 to February 28, 2011 and the year ended October 31, 2010
 
 
                 
    Four months ended
  Year ended
    February 28,
  October 31,
    2011   2010
 
 
Investment income:
 
       
Interest
  $ 21,404,410     $ 67,755,715  
 
 
Expenses:
 
       
Advisory fees
    2,217,118       7,050,123  
 
Administrative services fees
    83,490       253,309  
 
Interest, facilities and maintenance fees
    649,324       2,164,090  
 
Trustees’ and officers’ fees and benefits
    59,597       177,772  
 
Other
    43,445       504,161  
 
Total expenses
    3,052,974       10,149,455  
 
Less: Fees waived or expenses reimbursed
          825,464  
 
Net expenses
    3,052,974       9,323,991  
 
Net investment income
    18,351,436       58,431,724  
 
 
Realized and unrealized gain (loss):
 
       
Net realized gain (loss) from investment securities
    (10,200,128 )     (7,168,247 )
 
Change in net unrealized appreciation (depreciation) of investment securities
    (66,945,876 )     50,938,297  
 
Net realized and unrealized gain (loss)
    (77,146,004 )     43,770,050  
 
Distributions to preferred shareholders from net investment income
    (251,644 )     (752,917 )
 
Net increase (decrease) in net assets applicable to common shares resulting from operations
  $ (59,046,212 )   $ 101,448,857  
 
 
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
 
24        Invesco Van Kampen Trust for Investment Grade Municipals


 

Statement of Changes in Net Assets
 
For the period November 1, 2010 to February 28, 2011 and the years ended October 31, 2010 and 2009
 
 
                         
    Four months ended
  Year ended
  Year ended
    February 28,
  October 31,
  October 31,
    2011   2010   2009
 
 
Operations:
 
               
Net investment income
  $ 18,351,436     $ 58,431,724     $ 62,789,391  
 
Net realized gain (loss)
    (10,200,128 )     (7,168,247 )     (41,922,716 )
 
Change in net unrealized appreciation (depreciation)
    (66,945,876 )     50,938,297       172,003,703  
 
Distributions to preferred shareholders from net investment income
    (251,644 )     (752,917 )     (2,436,422 )
 
Net increase (decrease) in net assets applicable to common shares resulting from operations
    (59,046,212 )     101,448,857       190,433,956  
 
Distributions to common shareholders from net investment income
    (19,004,123 )     (56,600,304 )     (47,880,329 )
 
Net increase (decrease) in net assets applicable to common shares resulting from investment activities
    (78,050,335 )     44,848,553       142,553,627  
 
 
Share transactions–net:
 
               
Value of common shares issued through dividend reinvestment
    435,795       1,782,700       314,233  
 
Repurchase of shares
    0       0       (93,449 )
 
Increase from transactions in common shares of beneficial interest
    435,795       1,782,700       220,784  
 
Net increase (decrease) in net assets
    (77,614,540 )     46,631,253       142,774,411  
 
 
Net assets:
 
               
Beginning of year
    780,231,288       733,600,035       590,825,624  
 
End of year (includes undistributed net investment income of $22,349,886, 23,361,307 and 22,478,324, respectively)
  $ 702,616,748     $ 780,231,288     $ 733,600,035  
 
 
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
 
25        Invesco Van Kampen Trust for Investment Grade Municipals


 

Statement of Cash Flows
 
(For the period November 1, 2010 to February 28, 2011 and the year ended October 31, 2010)
 
 
                 
    Four months ended
  Year ended
    February 28,
  October 31,
    2011   2010
 
Net increase (decrease) in net assets applicable to common shares resulting from operations
  $ (59,046,212 )   $ 101,448,857  
 
 
Adjustments to reconcile the change in net assets applicable to common shares from operations to net cash provided by operating activities:
       
Net cash provided by operating activities:
               
Purchases of investments
    (61,899,437 )     (138,675,056 )
 
Proceeds from sales of investments
    61,460,019       207,118,159  
 
Net purchases of short-term investments
          (14,710,000 )
 
Amortization of premium
    402,021       1,463,691  
 
Accretion of discount
    (654,401 )     (2,708,554 )
 
Net realized loss on investments
    10,200,128       7,168,247  
 
Net change in unrealized appreciation (depreciation) on investments
    66,945,876       (50,938,297 )
 
Decrease in interest receivable and other assets
    2,882,425       1,472,347  
 
(Increase) decrease in accrued expenses and other payables
    (480,577 )     17,212  
 
Decrease in trustees’ deferred compensation and retirement plans
    -       (1,483,276 )
 
Net cash provided by operating activities
  $ 19,809,842     $ 110,173,330  
 
 
Cash flows provided by (used in) financing activities:
 
       
Due to custodian
    4,249,986       616,019  
 
Retirement of preferred shares
          (53,600,000 )
 
Dividends paid to common shareholders from net investment income
    (18,439,828 )     (54,978,810 )
 
Net proceeds from and repayments of floating rate note obligations
    (5,620,000 )     (9,170,000 )
 
Net cash provided by (used in) financing activities
    (19,809,842 )     (117,132,791 )
 
Net decrease in cash
          (6,959,461 )
 
Cash at the beginning of the period
          6,959,461  
 
Cash at the end of the period
  $     $  
 
 
Supplemental disclosures of cash flow information
 
       
Cash paid during the period for interest, facilities and maintenance fees
  $ 649,324     $ 1,565,674
 
 
  For the year ended October 31, 2010, facilities and maintenance fees were excluded.
 
Notes to Financial Statements
 
February 28, 2011
 
 
NOTE 1—Significant Accounting Policies
 
Invesco Van Kampen Trust for Investment Grade Municipals (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as a diversified, closed-end management investment company. Effective June 1, 2010, the Trust name changed from Van Kampen Trust for Investment Grade Municipals to Invesco Van Kampen Trust for Investment Grade Municipals.
  The Trust’s investment objective is to seek to provide a high level of current income exempt from federal income taxes, consistent with preservation of capital. The Trust will invest substantially all of its assets in municipal securities rated investment grade at the time of investment.
  On February 28, 2011, the Trust’s fiscal year-end changed from October 31 to February 28.
  The following is a summary of the significant accounting policies followed by the Trust in the preparation of its financial statements.
A. Security Valuations — Securities, including restricted securities, are valued according to the following policy.
    Securities are fair valued using an evaluated quote provided by an independent pricing service approved by the Board of Trustees. Evaluated quotes 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, yield, quality, coupon rate, maturity, type of issue, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Securities with
 
26        Invesco Van Kampen Trust for Investment Grade Municipals


 

a demand feature exercisable within one to seven days are valued at par. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and principal payments.
    Securities for which market quotations either are not readily available or are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Some of the factors which may be considered in determining fair value are fundamental analytical data relating to the investment; the nature and duration of any restrictions on transferability or disposition; trading in similar securities by the same issuer or comparable companies; relevant political, economic or issuer specific news; and other relevant factors under the circumstances.
    Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
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 is recorded on the accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes.
    The Trust may periodically participate in litigation related to Trust investments. As such, the Trust may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
    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 Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Trust’s net asset value and, accordingly, they reduce the Trust’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Trust and the investment adviser.
C. Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include 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 and the country that has the primary market for the issuer’s securities, 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 — The Trust declares and pays monthly dividends from net investment income to common shareholders. Distributions from net realized capital gain, if any, are generally paid annually and are distributed on a pro rata basis to common and preferred shareholders. The Trust may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes.
E. Federal Income Taxes — The Trust intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Trust’s taxable earnings to shareholders. As such, the Trust will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.
    In addition, the Trust intends to invest in such municipal securities to allow it to qualify to pay shareholders “exempt-interest dividends”, as defined in the Internal Revenue Code.
    The Trust files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Trust is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F. 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 Trust monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
G. Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Trust. Additionally, in the normal course of business, the Trust enters into contracts, including the Trust’s servicing agreements that contain a variety of indemnification clauses. The Trust’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
H. Securities Purchased on a When-Issued and Delayed Delivery Basis — The Trust may purchase and sell interests in portfolio securities on a when-issued and delayed delivery basis, with payment and delivery scheduled for a future date. No income accrues to the Trust on such interests or securities in connection with such transactions prior to the date the Trust 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 Trust will generally purchase these securities with the intention of acquiring such securities, they may sell such securities prior to the settlement date.
I. Floating Rate Note Obligations — The Trust invests in inverse floating rate securities, such as Residual Interest Bonds (“RIBs”) or Tender Option Bonds (“TOBs”) for investment purposes and to enhance the yield of the Trust. Inverse floating rate investments tend to underperform the market for fixed rate bonds in a rising interest rate environment, but tend to outperform the market for fixed rate bonds when interest rates decline or remain
 
27        Invesco Van Kampen Trust for Investment Grade Municipals


 

relatively stable. Such transactions may be purchased in the secondary market without first owning the underlying bond or by the sale of fixed rate bonds by the Trust to Special Purpose Trusts established by a broker dealer (“Dealer Trusts”) in exchange for cash and residual interests in the Dealer Trusts’ assets and cash flows, which are in the form of inverse floating rate securities. The Dealer Trusts finance the purchases of the fixed rate bonds by issuing floating rate notes to third parties and allowing the Trust to retain residual interest in the bonds. The floating rate notes issued by the Dealer Trusts have interest rates that reset weekly and the floating rate note holders have the option to tender their notes to the Dealer Trusts for redemption at par at each reset date. The residual interests held by the Trust (inverse floating rate investments) include the right of the Trust (1) to cause the holders of the floating rate notes to tender their notes at par at the next interest rate reset date, and (2) to transfer the municipal bond from the Dealer Trusts to the Trust, thereby collapsing the Dealer Trusts.
    TOBs are presently classified as private placement securities. Private placement securities are subject to restrictions on resale because they have not been registered under the Securities Act of 1933, as amended or are otherwise not readily marketable. As a result of the absence of a public trading market for these securities, they may be less liquid than publicly traded securities. Although these securities may be resold in privately negotiated transactions, the prices realized from these sales could be less than those originally paid by the Trust or less than what may be considered the fair value of such securities.
    The Trust accounts for the transfer of bonds to the Dealer Trusts as secured borrowings, with the securities transferred remaining in the Fund’s investment assets, and the related floating rate notes reflected as Trust liabilities under the caption Floating rate note obligations on the Statement of Assets and Liabilities. The Trust records the interest income from the fixed rate bonds under the caption Interest and records the expenses related to floating rate obligations and any administrative expenses of the Dealer Trusts as a component of Interest, facilities and maintenance fees on the Statement of Operations.
    The Trust generally invests in inverse floating rate securities that include embedded leverage, thus exposing the Trust to greater risks and increased costs. The primary risks associated with inverse floating rate securities are varying degrees of liquidity and the changes in the value of such securities in response to changes in market rates of interest to a greater extent than the value of an equal principal amount of a fixed rate security having similar credit quality, redemption provisions and maturity which may cause the Trust’s net asset value to be more volatile than if it had not invested in inverse floating rate securities. In certain instances, the short-term floating rate interests created by the special purpose trust may not be able to be sold to third parties or, in the case of holders tendering (or putting) such interests for repayment of principal, may not be able to be remarketed to third parties. In such cases, the special purpose trust holding the long-term fixed rate bonds may be collapsed. In the case of RIBs or TOBs created by the contribution of long-term fixed income bonds by the Trust, the Trust will then be required to repay the principal amount of the tendered securities. During times of market volatility, illiquidity or uncertainty, the Trust could be required to sell other portfolio holdings at a disadvantageous time to raise cash to meet that obligation.
J. Cash and Cash Equivalents — For the purpose of the Statement of Cash Flows the Trust defines Cash and Cash Equivalents as cash (including foreign currency), money market funds and other investments held in lieu of cash and excludes investments made with cash collateral received.
K. Other Risks — The value of, payment of interest on, repayment of principal for and the ability of the Trust to sell a municipal security may be affected by constitutional amendments, legislative enactments, executive orders, administrative regulations, voter initiatives and the economics of the regions in which the issuers in which the Trust invests are located.
    Since many municipal securities are issued to finance similar projects, especially those relating to education, health care, transportation and utilities, conditions in those sectors can affect the overall municipal securities market and the Trust.
    There is some risk that a portion or all of the interest received from certain tax-free municipal securities could become taxable as a result of determinations by the Internal Revenue Service.
L. Interest, Facilities and Maintenance Fees — Interest, Facilities and Maintenance Fees include interest and related borrowing costs such as commitment fees and other expenses associated with lines of credit and interest and administrative expenses related to establishing and maintaining Auction Rate Preferred Shares and floating rate note obligations, if any.
 
NOTE 2—Advisory Fees and Other Fees Paid to Affiliates
 
The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Trust pays an advisory fee to the Adviser based on the annual rate 0.55% of the Trust’s average daily net assets including current preferred shares and leverage entered into to retire preferred shares of the Trust. Prior June 1, 2010, Van Kampen Asset Management (“VKAM”) had voluntarily agreed to waive investment advisory fees equal to 0.10% of the average daily net assets including current preferred shares and leverage. For the period November 1, 2009 to May 31, 2010, the Trust paid an advisory fee of $4,073,695 to VKAM based on the annual rate and the Trust’s average weekly net assets as discussed above.
  Under the terms of master intergroup sub-advisory contracts between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Trust, may pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provides discretionary investment management services to the Trust based on the percentage of assets allocated to such Sub-Adviser(s).
  The Adviser has contractually agreed, through at least June 30, 2012, to waive advisory fees and/or reimburse expenses to the extent necessary to limit the Trust’s expenses (excluding certain items discussed below) to 0.99%. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the Trust’s expenses to exceed the limit reflected above: (1) interest, facilities and maintenance fees; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items; and (5) expenses that the Trust has incurred but did not actually pay because of an expense offset arrangement. Unless the Board of Trustees and Invesco mutually agree to amend or continue the fee waiver agreement, it will terminate on June 30, 2012.
  For the period November 1, 2010 to February 28, 2011 and the year ended October 31, 2010, the Adviser waived advisory fees of $0 and $84,792, respectively
  Prior to June 1, 2010, VKAM voluntarily waived $740,672 of advisory fees of the Trust.
 
28        Invesco Van Kampen Trust for Investment Grade Municipals


 

  The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Trust has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Trust. Prior to June 1, 2010, under separate accounting services and chief compliance officer (“CCO”) employment agreements, Van Kampen Investments Inc. (“VKII”) provided accounting services and the CCO provided compliance services to the Trust. Pursuant to such agreements, the Trust paid $48,439 to VKII. For the period November 1, 2010 to February 28, 2011 and the year ended October 31, 2010, expenses incurred under these agreements are shown in the Statement of Operations as administrative services fees. Also, Invesco has entered into service agreements whereby State Street Bank and Trust Company (“SSB”) serves as the custodian and fund accountant and provides certain administrative services to the Trust.
  Prior to June 1, 2010, under a legal services agreement, VKII provided legal services to the Trust. Pursuant to such agreement, the Trust paid $21,211 to VKII.
  Certain officers and trustees of the Trust are officers and directors of Invesco.
 
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 or are unreliable. 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.
    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 Trust’s own 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.
  The following is a summary of the tiered valuation input levels, as of February 28, 2011. 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 financial statements may materially differ from the value received upon actual sale of those investments.
  During the period ended February 28, 2011, there were no significant transfers between investment levels.
 
                                 
    Level 1   Level 2   Level 3   Total
 
Municipal Securities
  $     $ 1,199,737,546     $     $ 1,199,737,546  
 
 
NOTE 4—Trustees’ and Officers’ Fees and Benefits
 
“Trustees’ and Officers’ Fees and Benefits” include amounts accrued by the Trust to pay remuneration to certain Trustees and Officers of the Trust.
  For the period ended February 28, 2011 and year ended October 31, 2010, the Trust paid legal fees of $44,533 and $54,684, respectively for services rendered by Skadden, Arps, Slate, Meagher & Flom LLP as counsel to the Independent Trustees. A member of that firm is a Trustee of the Trust.
  Prior to June 1, 2010, the Trust provided retirement plans for its independent trustees. Such plans were terminated and the amounts owed to the trustees were distributed.
 
NOTE 5—Cash Balances and Borrowings
 
The Trust is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. To compensate the custodian bank for such overdrafts, the overdrawn Trust 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.
  Inverse floating rate note obligations resulting from the transfer of bonds to Dealer Trusts are accounted for as secured borrowings. The average floating rate notes outstanding and average annual interest and fees related to inverse floating rate note obligations during the period ended February 28, 2011 were $166,749,200 and 0.83%, respectively.
 
29        Invesco Van Kampen Trust for Investment Grade Municipals


 

NOTE 6—Distributions to Shareholders and Tax Components of Net Assets
 
Tax Character of Distributions to Shareholders Paid for the period November 1, 2010 to February 28, 2011 and the years ended October 31, 2010 and 2009:
 
                         
    Period ended
  Year ended
  Year ended
    February 28,
  October 31,
  October 31,
    2011   2010   2009
 
Ordinary income
  $ 0     $ 276,995     $ 274,921  
 
Tax-exempt income
    19,255,767       57,076,226       50,650,518  
 
Total distributions
  $ 19,255,767     $ 57,353,221     $ 50,925,439  
 
 
Tax Components of Net Assets at Period-End:
 
         
    2011
 
Undistributed ordinary income
  $ 20,851,885  
 
Net unrealized depreciation — investments
    (19,550,350 )
 
Temporary book/tax differences
    (1,339 )
 
Capital loss carryforward
    (124,758,626 )
 
Shares of beneficial interest
    826,075,178  
 
Total net assets
  $ 702,616,748  
 
 
  The difference between book-basis and tax-basis unrealized appreciation (depreciation) is due to differences in the timing of recognition of gains and losses on investments for tax and book purposes. The Trust’s net unrealized appreciation (depreciation) difference is attributable primarily to book to tax accretion and amortization differences and inverse floater adjustments.
  The temporary book/tax differences are a result of timing differences between book and tax recognition of income and/or expenses.
  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 Trust 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 Trust utilized $0 of capital loss carryforward in the current period to offset net realized capital gain for federal income tax purposes. The Trust has a capital loss carryforward as of February 28, 2011 which expires as follows:
 
         
    Capital Loss
Expiration   Carryforward*
 
October 31, 2015
  $ 11,260,708  
 
October 31, 2016
    54,105,639  
 
October 31, 2017
    40,510,505  
 
October 31, 2018
    8,635,210  
 
October 31, 2019
    10,246,564  
 
Total capital loss carryforward
  $ 124,758,626  
 
Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code.
 
NOTE 7—Investment Securities
 
The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Trust during the period ended February 28, 2011 was $37,957,134 and $59,567,914, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed Federal income tax reporting period-end.
 
         
Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis
 
Aggregate unrealized appreciation of investment securities
  $ 24,878,279  
 
Aggregate unrealized (depreciation) of investment securities
    (44,428,629 )
 
Net unrealized appreciation (depreciation) of investment securities
  $ (19,550,350 )
 
Cost of investments for tax purposes is $1,219,287,896        
 
NOTE 8—Reclassification of Permanent Differences
 
Primarily as a result of differing book/tax treatment of defaulted bonds and income taxes, on February 28, 2011, undistributed net investment income was decreased by $107,090, undistributed net realized gain (loss) was decreased by $46,435, and shares of beneficial interest was increased by $153,525. This reclassification had no effect on the net assets of the Trust.
 
30        Invesco Van Kampen Trust for Investment Grade Municipals


 

NOTE 9—Common Shares of Beneficial Interest
 
 
                         
    Four Months Ended
  Year Ended
  Year Ended
    February 28,
  October 31,
  October 31,
    2011   2010   2009
 
Beginning shares
    53,973,083       53,846,492       53,831,731  
 
Shares Issued Through Dividend Reinvestment
    32,628       126,591       24,561  
 
Shares Repurchased*
    -0-       -0-       (9,800 )
 
Ending shares
    54,005,711       53,973,083       53,846,492  
 
The Trust has a share repurchase program for purposes of enhancing stockholder value and reducing the discount at which the Trust’s shares trade from its net asset value. For the period November 1, 2010 to February 28, 2011 and the period ended October 31, 2010 the Trust did not repurchase its shares and for the year ended October 31, 2009 the Trust repurchased 9,800 of its shares at an average discount of 8.60% from net asset value per share. The Trust expects to continue to repurchase its outstanding shares at such time and in such amounts as it believes such activity will further the accomplishment of the foregoing objectives, subject to review of the Trustees.
 
NOTE 10—Preferred Shares of Beneficial Interest
 
The Trust has issued Auction Rate Preferred Shares (“preferred shares”) which have a liquidation value of $25,000 per share plus the redemption premium, if any, plus accumulated but unpaid dividends, whether or not declared, thereon to the date of distribution. The Trust may redeem such shares, in whole or in part, at the original purchase price of $25,000 per share plus accumulated but unpaid dividends, whether or not declared, thereon to the date of redemption.
  Historically, the Trust paid annual fees equivalent to 0.25% of the preferred share liquidation value for the remarketing efforts associated with the preferred auction. Effective March 16, 2009, the Trust decreased this amount to 0.15% due to auction failures. In the future, if auctions no longer fail, the Trust may return to an annual fee payment of 0.25% of the preferred share liquidation value. These fees are included as a component of interest, facilities and maintenance fees on the Statement of Operations.
  Dividends, which are cumulative, are reset through auction procedures.
 
                                         
        Amount
          Range of
Series   Shares†   (000’s omitted)†   Rate†   Reset Date   Dividend Rates††
 
A
    1,950     $ 48,750       0.243 %     03/14/2011       0.177-0.243 %
 
B
    1,950       48,750       0.210       03/21/2011       0.133-0.243  
 
C
    1,950       48,750       0.210       03/24/2011       0.199-0.243  
 
D
    1,040       26,000       0.210       03/02/2011       0.210-0.265  
 
E
    1,430       35,750       0.243       03/14/2011       0.177-0.243  
 
F
    1,430       35,750       0.210       03/21/2011       0.133-0.243  
 
G
    1,430       35,750       0.199       03/28/2011       0.155-0.265  
 
H
    1,456       36,400       0.210       03/24/2011       0.199-0.243  
 
I
    1,300       32,500       0.221       03/17/2011       0.221-0.265  
 
As of February 28, 2011.
†† For the four month period ended February 28, 2011.
 
  Subsequent to February 28, 2011 and up through March 29, 2011 the Trust paid dividends to preferred shareholders at rates ranging from 0.155% to 0.199% in the aggregate amount of $54,287.
  The Trust is subject to certain restrictions relating to the preferred shares. Failure to comply with these restrictions could preclude the Trust from declaring any distributions to common shareholders or purchasing common shares and/or could trigger the mandatory redemption of preferred shares at liquidation value.
  Beginning on February 15, 2008 and continuing through February 28, 2011 all series of preferred shares of the Trust were not successfully remarketed. As a result, the dividend rates of these preferred shares were reset to the maximum applicable rate.
  The preferred shares, which are entitled to one vote per share, generally vote with the common shares but vote separately as a class to elect two Trustees and on any matters affecting the rights of the preferred shares.
  The preferred shares are not listed on an exchange. Investors in preferred shares may participate in auctions through authorized broker-dealers; however, such broker-dealers are not required to maintain a secondary market in preferred shares, and there can be no assurance that a secondary market will develop, or if it does develop, a secondary market may not provide you with liquidity. When a preferred shares auction fails, investors may not be able to sell any or all of their preferred shares and because of the nature of the market for preferred shares, investors may receive less than the price paid for their preferred shares if sold outside of the auction.
 
31        Invesco Van Kampen Trust for Investment Grade Municipals


 

  The Trust entered into additional floating rate note obligations as an alternative form of leverage in order to redeem and to retire a portion of its preferred shares. Transactions in preferred shares were as follows:
 
                                                                 
    Series A   Series B   Series C   Series D
    Shares   Value   Shares   Value   Shares   Value   Shares   Value
 
Outstanding at October 31, 2010
    1,950     $ 48,750,000       1,950     $ 48,750,000       1,950     $ 48,750,000       1,040     $ 26,000,000  
 
Shares retired
    -0-       -0-       -0-       -0-       -0-       -0-       -0-       -0-  
 
Outstanding at February 28, 2011
    1,950     $ 48,750,000       1,950     $ 48,750,000       1,950     $ 48,750,000       1,040     $ 26,000,000  
 
                                                                 
                                                                 
    Series E   Series F   Series G   Series H
    Shares   Value   Shares   Value   Shares   Value   Shares   Value
 
Outstanding at October 31, 2010
    1,430     $ 35,750,000       1,430     $ 35,750,000       1,430     $ 35,750,000       1,456     $ 36,400,000  
 
Shares retired
    -0-       -0-       -0-       -0-       -0-       -0-       -0-       -0-  
 
Outstanding at February 28, 2011
    1,430     $ 35,750,000       1,430     $ 35,750,000       1,430     $ 35,750,000       1,456     $ 36,400,000  
 
 
                 
    Series I
    Shares   Value
 
Outstanding at October 31, 2010
    1,300     $ 32,500,000  
 
Shares retired
    -0-       -0-  
 
Outstanding at February 28, 2011
    1,300     $ 32,500,000  
 
 
NOTE 11—Legal Matters
 
The Trust received a shareholder demand letter dated August 6, 2010, from two of the Trust’s shareholders, alleging that the Board and the officers of the Trust breached their fiduciary duty and duty of loyalty and wasted Trust assets by causing the Trust to redeem Auction Rate Preferred Securities (ARPS) at their liquidation value. Specifically, the shareholders claim that the Board and officers had no obligation to provide liquidity to the ARPS shareholders, the redemptions were improperly motivated to benefit the prior adviser by preserving business relationships with the ARPS holders, i.e., institutional investors, and the market value and fair value of the ARPS were less than par at the time they were redeemed. The letter alleges that the redemption of the ARPS occurred at the expense of the Trust and its common shareholders. The letter demands that: 1) the Board take action against the prior adviser and trustees/officers to recover damages; 2) the Board refrain from authorizing further redemptions or repurchases of ARPS by the Trust at prices in excess of fair value or market value at the time of the transaction; and 3) if the Trust does not commence appropriate action, the shareholder will commence a shareholder derivative action on behalf of the Trust. The Board has formed a committee to investigate these claims and make a recommendation to the Board regarding whether maintenance of these claims is in the best interests of the Trusts.
  Management of Invesco and the Trust believe that the outcome of the proceedings described above will have no material adverse effect on the Trust or on the ability of Invesco to provide ongoing services to the Trust.
 
NOTE 12—Dividends
 
The Fund declared the following dividends from net investment income subsequent to February 28, 2011:
 
                         
Declaration Date   Amount per Share   Record Date   Payable Date
 
March 1, 2011
  $ 0.0880       March 15, 2011       March 31, 2011  
 
April 1, 2011
  $ 0.0880       April 15, 2011       April 29, 2011  
 
 
32        Invesco Van Kampen Trust for Investment Grade Municipals


 

 
NOTE 13—Financial Highlights
 
The following schedule presents financial highlights for a common share of the Trust outstanding throughout the periods indicated.
 
                                                 
    Four months ended
                   
    February 28,
  Year ended October 31
    2011   2010   2009   2008   2007   2006
 
Net asset value per common share, beginning of period
  $ 14.46     $ 13.62     $ 10.98     $ 15.89     $ 16.97     $ 16.80  
 
Net investment income(a)
    0.34       1.08       1.17       1.27       1.18       1.11  
 
Net gains (losses) on securities (both realized and unrealized)
    (1.44 )     0.82       2.41       (5.05 )     (1.06 )     0.47  
 
Distributions paid to preferred shareholders from:
 
                                               
Net investment income
          (0.01 )     (0.05 )     (0.30 )     (0.37 )     (0.29 )
 
Net realized gain
                            (0.01 )     (0.06 )
 
Total income (loss) from investment operations
    (1.10 )     1.89       3.53       (4.08 )     (0.26 )     1.23  
 
Dstributions paid to common shareholders:
 
                                               
Net investment income
    (0.35 )     (1.05 )     (0.89 )     (0.83 )     (0.80 )     (0.82 )
 
Net realized gain
                            (0.02 )     (0.24 )
 
Net asset value per common share, end of period
  $ 13.01     $ 14.46     $ 13.62     $ 10.98     $ 15.89     $ 16.97  
 
Market value, end of period
  $ 12.90     $ 15.00     $ 13.55     $ 10.11     $ 14.11     $ 14.94  
 
Total return at net asset value(b)
    (7.56 )%     14.39 %                                
 
Total return at market value(c)
    (11.67 )%     19.27 %     44.66 %     (23.77 )%     (0.39 )%     9.86 %
 
Net assets applicable to common shares, end of the period (000s omitted)
  $ 702,617     $ 780,231     $ 733,600     $ 590,826     $ 867,764     $ 743,367  
 
Portfolio turnover rate(d)
    3 %     11 %     17 %     55 %     76 %     25 %
 
 
Ratios/supplemental data based on average net assets applicable to common shares:
 
                                       
Ratio of expenses:
 
                                               
With fee waivers and/or expense reimbursements(f)
    1.30 %(e)     1.23 %     1.46 %     2.23 %     2.45 %     1.28 %
 
With fee waivers and/or expense reimbursements excluding interest, facilities and maintenance fees(f)(i)
    1.03 %(e)     1.03 %     1.12 %     0.98 %     1.12 %     1.17 %
 
Without fee waivers and/or expense reimbursements(f)
    1.30 %(e)     1.34 %     1.64 %     2.40 %     2.61 %     1.28 %
 
Ratio of net investment income before preferred shares dividends
    7.83 %(e)     7.74 %     9.70 %     8.78 %     7.85 %     6.68 %
 
Preferred share dividends
    0.11 %(e)     0.10 %                                
 
Ratio of net investment income after preferred share dividends
    7.72 %(e)     7.64 %     9.32 %     6.72 %     5.36 %     4.94 %
 
 
Senior securities:
 
                                       
Total preferred shares outstanding
    13,936       13,936       16,080       17,152       21,440       17,200  
 
Total amount of preferred shares outstanding (000’s omitted)
  $ 348,400     $ 348,400     $ 402,000     $ 428,800     $ 536,000     $ 430,000  
 
Asset coverage per preferred share(g)
  $ 75,417     $ 80,989     $ 70,624     $ 59,484     $ 65,519     $ 68,253  
 
Liquidating preference per preferred share
  $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000  
 
(a) Calculated using average shares outstanding.
(b) Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions.
(c) Total return assumes an investment at the common share market price at the beginning of the period indicated, reinvestment of all distributions for the period in accordance with the Trust’s dividend reinvestment plan, and sale of all shares at the closing common share market price at the end of the period indicated.
(d) Ratios do not reflect the effect of dividend payments to preferred shareholders.
(e) Ratios are annualized and based on average net assets applicable to common shares (000’s omitted) of $712,823.
(f) Ratios reflect the effect of dividend payments to preferred shareholders.
(g) Portfolio turnover is not annualized for periods less than one year, if applicable.
(h) Calculated by subtracting the Trust’s total liabilities (not including the preferred shares) from the Trust’s total assets and dividing this by the number of preferred shares outstanding.
(i) For the years ended October 31, 2010 and prior, ratio does not exclude facilities and maintenance fees.
 
33        Invesco Van Kampen Trust for Investment Grade Municipals


 

Report of Independent Registered Public Accounting Firm
 
 
To the Board of Directors and Shareholders of
Invesco Van Kampen Trust for Investment Grade Municipals:
 
In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations, of changes in net assets and of cash flows and the financial highlights present fairly, in all material respects, the financial position of Invesco Van Kampen Trust for Investment Grade Municipals (hereafter referred to as the “Fund”) at February 28, 2011, the results of its operations, the changes in its net assets, its cash flows, and the financial highlights for the period ended February 28, 2011 and the year ended October 31, 2010, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Trust’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at February 28, 2011 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion. The statement of changes in net assets and the financial highlights of the Trust for the periods ended October 31, 2009 and prior were audited by other independent auditors whose report dated December 21, 2009 expressed an unqualified opinion on those financial statements.
 
PRICEWATERHOUSECOOPERS LLP
 
April 21, 2011
Houston, Texas
 
34        Invesco Van Kampen Trust for Investment Grade Municipals


 

Tax Information
 
 
Form 1099-DIV, Form 1042-S and other year-end tax information provide shareholders with actual calendar year amounts that should be included in their tax returns. Shareholders should consult their tax advisors.
  The following distribution information is being provided as required by the Internal Revenue Code or to meet a specific state’s requirement.
  The Trust designates the following amounts or, if subsequently determined to be different, the maximum amount allowable for its fiscal year ended February 28, 2011:
 
         
Federal and State Income Tax
   
 
Tax Exempt Interest Dividends*
    100.00%  
 
  The above percentages are based on ordinary income dividends paid to shareholders during the Trust’s fiscal year.
 
35        Invesco Van Kampen Trust for Investment Grade Municipals


 

Trustees and Officers
The address of each trustee and officer is 1555 Peachtree, N.E., Atlanta, Georgia 30309. Generally, each trustee serves for a three year term or until his or her successor has been duly elected and qualified, and each officer serves for a one year term or until his or her successor has been duly elected and qualified. Column two below includes length of time served with predecessor entities, if any.
                             
                  Number of      
                  Funds in      
              Fund      
            Complex      
  Name, Year of Birth and   Trustee and/   Principal Occupation(s)   Overseen by   Other Directorship(s)  
  Position(s) Held with the Trust   or Officer Since   During Past 5 Years   Trustee   Held by Trustee  
 
 
                         
 
Interested Persons
                         
 
 
                         
 
Colin Meadows — 1971 Trustee, President and Principal Executive Officer
  2010     Chief Administrative Officer, Invesco Advisers, Inc., since 2006; Prior to 2006, Senior Vice President of business development and mergers and acquisitions at GE Consumer Finance; Prior to 2005, Senior Vice President of strategic planning and technology at Wells Fargo Bank; From 1996 to 2003, associate principal with McKinsey & Company, focusing on the financial services and venture capital industries, with emphasis in banking and asset management sectors.     18     None  
 
 
                         
 
Independent Trustees
                         
 
 
                         
 
Wayne M. Whalen1 — 1939 Trustee and Chair
  1991     Of Counsel, and prior to 2010, partner in the law firm of Skadden, Arps, Slate, Meagher & Flom LLP, legal counsel to funds in the Fund Complex     227     Director of the Abraham Lincoln Presidential Library Foundation  
 
 
                         
 
David C. Arch — 1945 Trustee
  1991     Chairman and Chief Executive Officer of Blistex Inc., a consumer health care products manufacturer.     227     Member of the Heartland Alliance Advisory Board, a nonprofit organization serving human needs based in Chicago. Board member of the Illinois Manufacturers’ Association. Member of the Board of Visitors, Institute for the Humanities, University of Michigan  
 
 
                         
 
Jerry D. Choate — 1938 Trustee
  2003     From 1995 to 1999, Chairman and Chief Executive Officer of the Allstate Corporation (‘‘Allstate’’) and Allstate Insurance Company. From 1994 to 1995, President and Chief Executive Officer of Allstate. Prior to 1994, various management positions at Allstate.     18     Trustee/Director/Managing General Partner of funds in the Fund Complex. Director since 1998 and member of the governance and nominating committee, executive committee, compensation and management development committee and equity award committee, of Amgen Inc., a biotechnological company. Director since 1999 and member of the nominating and governance committee and compensation and executive committee, of Valero Energy Corporation, a crude oil refining and marketing company. Previously, from 2006 to 2007, Director and member of the compensation committee and audit committee, of H&R Block, a tax preparation services company.  
 
 
                         
 
Rodney Dammeyer — 1940 Trustee
  1991     President of CAC, LLC, a private company offering capital investment and management advisory services.

Formerly: Prior to January 2004, Director of TeleTech Holdings Inc.; Prior to 2002, Director of Arris Group, Inc.; Prior to 2001, Managing Partner at Equity Group Corporate Investments. Prior to 1995, Vice Chairman of Anixter International. Prior to 1985, experience includes Senior Vice President and Chief Financial Officer of Household International, Inc, Executive Vice President and Chief Financial Officer of Northwest Industries, Inc. and Partner of Arthur Andersen & Co.
    227     Director of Quidel Corporation and Stericycle, Inc. Prior to May 2008, Trustee of The Scripps Research Institute. Prior to February 2008, Director of Ventana Medical Systems, Inc. Prior to April 2007, Director of GATX Corporation. Prior to April 2004, Director of TheraSense, Inc.  
 
 
                         
 
1   Mr. Whalen is considered an “interested person” (within the meaning of Section 2(a)(19) of the 1940 Act) of certain Funds in the Fund Complex by reason of he and his firm currently providing legal services as legal counsel to such Funds in the Fund Complex.

T-1


 

Trustees and Officers — (continued)
                     
              Number of      
              Funds in      
              Fund      
              Complex      
  Name, Year of Birth and   Trustee and/   Principal Occupation(s)   Overseen by   Other Directorship(s)  
  Position(s) Held with the Trust   or Officer Since   During Past 5 Years   Trustee   Held by Trustee  
                     
 
Independent Trustees
                 
                     
 
Linda Hutton Heagy — 1948
Trustee
  2003    Prior to June 2008, Managing Partner of Heidrick & Struggles, the second largest global executive search firm, and from 2001-2004, Regional Managing Director of U.S. operations at Heidrick & Struggles. Prior to 1997, Managing Partner of Ray & Berndtson, Inc., an executive recruiting firm. Prior to 1995, Executive Vice President of ABN AMRO, N.A., a bank holding company, with oversight for treasury management operations including all non-credit product pricing. Prior to 1990, experience includes Executive Vice President of The Exchange National Bank with oversight of treasury management including capital markets operations, Vice President of Northern Trust Company and an Associate at Price Waterhouse.   18    Trustee/Director/Managing General Partner of funds in the Fund Complex. Prior to 2010, Trustee on the University of Chicago Medical Center Board, Vice Chair of the Board of the YMCA of Metropolitan Chicago and a member of the Women’s Board of the University of Chicago.  
                     
 
R. Craig Kennedy — 1952
Trustee
  2003    Director and President of the German Marshall Fund of the United States, an independent U.S. foundation created to deepen understanding, promote collaboration and stimulate exchanges of practical experience between Americans and Europeans. Formerly, advisor to the Dennis Trading Group Inc., a managed futures and option company that invests money for individuals and institutions. Prior to 1992, President and Chief Executive Officer, Director and member of the Investment Committee of the Joyce Foundation, a private foundation.   18    Trustee/Director/Managing General Partner of funds in the Fund Complex. Director of First Solar, Inc.  
                     
 
Howard J Kerr — 1935
Trustee
  1992    Retired. Previous member of the City Council and Mayor of Lake Forest, Illinois from 1988 through 2002. Previous business experience from 1981 through 1996 includes President and Chief Executive Officer of Pocklington Corporation, Inc., an investment holding company, President and Chief Executive Officer of Grabill Aerospace, and President of Custom Technologies Corporation. United States Naval Officer from 1960 through 1981, with responsibilities including Commanding Officer of United States Navy destroyers and Commander of United States Navy Destroyer Squadron Thirty-Three, White House experience in 1973 through 1975 as military aide to Vice Presidents Agnew and Ford and Naval Aid to President Ford, and Military Fellow on the Council of Foreign Relations in 1978-through 1979.   18    Trustee/Director/Managing General Partner of funds in the Fund Complex. Director of the Lake Forest Bank & Trust. Director of the Marrow Foundation.  
                     
 
Jack E. Nelson — 1936
Trustee
  2003    President of Nelson Investment Planning Services, Inc., a financial planning company and registered investment adviser in the State of Florida. President of Nelson Ivest Brokerage Services Inc., a member of the Financial Industry Regulatory Authority (“FINRA”), Securities Investors Protection Corp. and the Municipal Securities Rulemaking Board. President of Nelson Sales and Services Corporation, a marketing and services company to support affiliated companies.   18    Trustee/Director/Managing General Partner of funds in the Fund Complex.  
                     
 
Hugo F. Sonnenschein — 1940
Trustee
  1994    President Emeritus and Honorary Trustee of the University of Chicago and the Adam Smith Distinguished Service Professor in the Department of Economics at the University of Chicago. Prior to July 2000, President of the University of Chicago.   227    Trustee of the University of Rochester and a member of its investment committee. Member of the National Academy of Sciences, the American Philosophical Society and a fellow of the American Academy of Arts and Sciences  
                     
 
Suzanne H. Woolsey, Ph.D. — 1941
Trustee
  2003    Chief Communications Officer of the National Academy of Sciences and Engineering and Institute of Medicine/National Research Council, an independent, federally chartered policy institution, from 2001 to November 2003 and Chief Operating Officer from 1993 to 2001. Executive Director of the Commission on Behavioral and Social Sciences and Education at the National Academy of Sciences/National Research Council from 1989 to 1993. Prior to 1980, experience includes Partner of Coopers & Lybrand (from 1980 to 1989), Associate Director of the US Office of Management and Budget (from 1977 to 1980) and Program Director of the Urban Institute (from 1975 to 1977).   18    Trustee/Director/Managing General Partner of funds in the Fund Complex. Independent Director and audit committee chairperson of Changing World Technologies, Inc., an energy manufacturing company, since July 2008. Independent Director and member of audit and governance committees of Fluor Corp., a global engineering, construction and management company, since January 2004. Director of Intelligent Medical Devices, Inc., a private company which develops symptom-based diagnostic tools for viral respiratory infections. Advisory Board member of ExactCost LLC, a private company providing activity-based costing for hospitals, laboratories, clinics, and physicians, since 2008.  
                     
T-2

 


 

Trustees and Officers — (continued)
                     
              Number of      
              Funds in      
              Fund      
              Complex      
  Name, Year of Birth and   Trustee and/   Principal Occupation(s)   Overseen by   Other Directorship(s)  
  Position(s) Held with the Trust   or Officer Since   During Past 5 Years   Trustee   Held by Trustee  
                     
 
Independent Trustees
                 
                     
 
 
              Chairperson of the Board of Trustees of the Institute for Defense Analyses, afederally funded research and development center, since 2000. Trustee from 1992 to 2000 and 2002 to present, current chairperson of the finance committee, current member of the audit committee, strategic growth committee and executive committee, and former Chairperson of the Board of Trustees (from 1997 to 1999), of the German Marshall Fund of the United States, a public foundation. Lead Independent Trustee of the Rocky Mountain Institute, a non-profit energy and environmental institute; Trustee since 2004. Chairperson of the Board of Trustees of the Colorado College; Trustee since 1995. Trustee of California Institute of Technology. Previously, Independent Director and member of audit committee and governance committee of Neurogen Corporation from 1998 to 2006; and Independent Director of Arbros Communications from 2000 to 2002  
                     
 
Other Officers
                 
                     
 
John M. Zerr — 1962
Senior Vice President, Chief Legal Officer and Secretary
  2010    Director, Senior Vice President, Secretary and General Counsel, Invesco Management Group, Inc. (formerly known as Invesco Aim Management Group, Inc.), Van Kampen Investments Inc. and Van Kampen Exchange Corp., Senior Vice President, Invesco Advisers, Inc. formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Senior Vice President and Secretary, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.); Director, Vice President and Secretary, Invesco Investment Services, Inc. (formerly known as Invesco Aim Investment Services, Inc.) and IVZ Distributors, Inc. (formerly known as INVESCO Distributors, Inc.); Director and Vice President, INVESCO Funds Group, Inc.; Senior Vice President, Chief Legal Officer and Secretary, The Invesco Funds; Manager, Invesco PowerShares Capital Management LLC; Director, Secretary and General Counsel, Van Kampen Asset Management; Director and Secretary, Van Kampen Advisors Inc.; Secretary and General Counsel, Van Kampen Funds Inc.; and Director, Vice President, Secretary and General Counsel, Van Kampen Investor Services Inc.; and Chief Legal Officer, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Fund Trust

Formerly: Director, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.); Director, Senior Vice President, General Counsel and Secretary, Invesco Advisers, Inc.; Director, Vice President and Secretary, Fund Management Company; Director, Senior Vice President, Secretary, General Counsel and Vice President, Invesco Aim Capital Management, Inc.; Chief Operating Officer and General Counsel, Liberty Ridge Capital, Inc. (an investment adviser); Vice President and Secretary, PBHG Funds (an investment company) and PBHG Insurance Series Fund (an investment company); Chief Operating Officer, General Counsel and Secretary, Old Mutual Investment Partners (a broker-dealer); General Counsel and Secretary, Old Mutual Fund Services (an administrator) and Old Mutual Shareholder Services (a shareholder servicing center); Executive Vice President, General Counsel and Secretary, Old Mutual Capital, Inc. (an investment adviser); and Vice President and Secretary, Old Mutual Advisors Funds (an investment company)
  N/A   N/A  
                     
 
Lisa O. Brinkley — 1959
Vice President
  2010    Global Compliance Director, Invesco Ltd.; Chief Compliance Officer, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.), Invesco Investment Services, Inc.(formerly known as Invesco Aim Investment Services, Inc.) and Van Kampen Investor Services Inc.; and Vice President, The Invesco Funds

Formerly: Senior Vice President, Invesco Management Group, Inc.; Senior Vice President and Chief Compliance Officer, Invesco Advisers, Inc. and The Invesco Funds; Vice President and Chief Compliance Officer, Invesco Aim Capital Management, Inc. and Invesco Distributors, Inc.; Vice President, Invesco Investment Services, Inc. and Fund Management Company
  N/A   N/A  
                     
T-3

 


 

Trustees and Officers — (continued)
                     
              Number of      
              Funds in      
              Fund      
              Complex      
  Name, Year of Birth and   Trustee and/   Principal Occupation(s)   Overseen by   Other Directorship(s)  
  Position(s) Held with the Trust   or Officer Since   During Past 5 Years   Trustee   Held by Trustee  
                     
 
Other Officers
                 
                     
 
Karen Dunn Kelley — 1960
Vice President
  2010    Head of Invesco’s World Wide Fixed Income and Cash Management Group; Senior Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser) and Van Kampen Investments Inc.; Executive Vice President, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.); Senior Vice President, Invesco Management Group, Inc. (formerly known as Invesco Aim Management Group, Inc.); and Director, Invesco Mortgage Capital Inc.; Vice President, The Invesco Funds (other than AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust) and Short-Term Investments Trust); President and Principal Executive Officer, The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust) and Short-Term Investments Trust only).

Formerly: Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.); Director of Cash Management and Senior Vice President, Invesco Advisers, Inc. and Invesco Aim Capital Management, Inc.; President and Principal Executive Officer, Tax-Free Investments Trust; Director and President, Fund Management Company; Chief Cash Management Officer, Director of Cash Management, Senior Vice President, and Managing Director, Invesco Aim Capital Management, Inc.; Director of Cash Management, Senior Vice President, and Vice President, Invesco Advisers, Inc. and The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust), Short-Term Investments Trust and Tax-Free Investments Trust only)
  N/A   N/A  
                     
 
Sheri Morris — 1964
Vice President, Principal Financial Officer and Treasurer
  2010    Vice President, Treasurer and Principal Financial Officer, The Invesco Funds; and Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser)

Formerly: Vice President, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.; Assistant Vice President and Assistant Treasurer, The Invesco Funds and Assistant Vice President, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.
  N/A   N/A  
                     
 
Lance A. Rejsek — 1967
Anti-Money Laundering Compliance Officer
  2010    Anti-Money Laundering Compliance Officer, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.), Invesco Investment Services, Inc. (formerly known as Invesco Aim Investment Services, Inc.), The Invesco Funds, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Trust II, PowerShares India Exchange- Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust, Van Kampen Asset Management, Van Kampen Investor Services Inc., and Van Kampen Funds Inc.

Formerly: Anti-Money Laundering Compliance Officer, Fund Management Company, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.
  N/A   N/A  
                     
 
Todd L. Spillane — 1958
Chief Compliance Officer
  2010    Senior Vice President, Invesco Management Group, Inc. (formerly known as Invesco Aim Management Group, Inc.), Van Kampen Investments Inc. and Van Kampen Exchange Corp.; Senior Vice President and Chief Compliance Officer, Invesco Advisers, Inc. (registered investment adviser) (formerly known as Invesco Institutional (N.A.), Inc.); Chief Compliance Officer, The Invesco Funds, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust, INVESCO Private Capital Investments, Inc. (holding company), and Invesco Private Capital, Inc. (registered investment adviser); Vice President, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.), Invesco Investment Services, Inc. (formerly known as Invesco Aim Investment Services, Inc.) and Van Kampen Investor Services Inc.

Formerly: Senior Vice President and Chief Compliance Officer, Invesco Advisers, Inc. and Invesco Aim Capital Management, Inc.; Chief Compliance Officer, Invesco Global Asset Management (N.A.), Inc. and Invesco Senior Secured Management, Inc. (registered investment adviser); Vice President, Invesco Aim Capital Management, Inc. and Fund Management Company
  N/A   N/A  
                     
             
Office of the Fund
  Investment Adviser   Auditors   Custodian
1555 Peachtree Street, N.E.
  Invesco Advisers, Inc.   PricewaterhouseCoopers LLP   State Street Bank and Trust Company
Atlanta, GA 30309
  1555 Peachtree Street, N.E.   1201 Louisiana Street,   225 Franklin
 
  Atlanta, GA 30309   Suite 2900   Boston, MA 02110-2801
 
      Houston, TX 77002-5678    
 
           
Counsel to the Fund
  Transfer Agent        
Skadden, Arps, Slate, Meagher & Flom , LLP
  Computershare Trust Company, N.A.        
155 West Wacker Drive
  P.O. Box 43078        
Chicago, IL 60606
  Providence, RI 02940-3078        
T-4

 


 

 
Invesco privacy policy
You share personal and financial information with us that is necessary for your transactions and your account records. We take very seriously the obligation to keep that information confidential and private.
     Invesco collects nonpublic personal information about you from account applications or other forms you complete and from your transactions with us or our affiliates. We do not disclose information about you or our former customers to service providers or other third parties except to the extent necessary to service your account and in other limited circumstances as permitted by law. For example, we use this information to facilitate the delivery of transaction confirmations, financial reports, prospectuses and tax forms.
     Even within Invesco, only people involved in the servicing of your accounts and compliance monitoring have access to your information. To ensure the highest level of confidentiality and security, Invesco maintains physical, electronic and procedural safeguards that meet or exceed federal standards. Special measures, such as data encryption and authentication, apply to your communications with us on our website. More detail is available to you at invesco.com/privacy.
 
Trust holdings and proxy voting information
The Trust provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth quarters, the lists appear in the Trust’s semiannual and annual reports to shareholders. For the first and third quarters, the Trust files the lists with the Securities and Exchange Commission (SEC) on Form N-Q. Shareholders can also look up the Trust’s Forms N-Q on the SEC website at sec.gov. Copies of the Trust’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file number for the Trust is 811-06471.
     A description of the policies and procedures that the Trust uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 341 2929 or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.
(INVESCO LOGO)
     Information regarding how the Trust voted proxies related to its portfolio securities during the 12 months ended June 30, 2010, is available at invesco.com/proxysearch. In addition, this information is available on the SEC website at sec.gov.
     Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the U.S. distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.
     
VK-CE-IGMUNI-AR-1
  Invesco Distributors, Inc.

 


 

ITEM 2. CODE OF ETHICS.
          As of the end of the period covered by this report, the Registrant had adopted a code of ethics (the “Code”) that applies to the Registrant’s principal executive officer (“PEO”) and principal financial officer (“PFO”). There were no amendments to the Code during the period covered by the report. The Registrant did not grant any waivers, including implicit waivers, from any provisions of the Code to the PEO or PFO during the period covered by this report.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
          The Board of Trustees has determined that the Registrant has at least one audit committee financial expert serving on its Audit Committee. The Audit Committee financial experts are Jerry D. Choate, Linda Hutton Heagy and R. Craig Kennedy. Jerry D. Choate, Linda Hutton Heagy and R. Craig Kennedy are “independent” within the meaning of that term as used in Form N-CSR.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
          Fees Billed by PWC Related to the Registrant
          PWC billed the Registrant aggregate fees for services rendered to the Registrant for the last two fiscal years as follows:
                         
            Percentage of Fees            
            Billed Applicable           Percentage of Fees
            to Non-Audit           Billed Applicable to
            Services Provided           Non-Audit Services
    Fees Billed for     for fiscal year end   Fees Billed for     Provided for fiscal
    Services Rendered     2/28/2011 Pursuant   Services Rendered     year end 10/31/2010
    to the Registrant     to Waiver of Pre-   to the Registrant for     Pursuant to Waiver
    for fiscal year end     Approval   fiscal year end     of Pre-Approval
    2/28/2011     Requirement(1)   10/31/2010     Requirement(1)
Audit Fees
  $ 19,250     N/A   $ 35,000     N/A
Audit-Related Fees(2)
  $ 4,000     0%   $ 0     0%
Tax Fees(3)
  $ 2,300     0%   $ 4,300     0%
All Other Fees(4)
  $ 1,667     0%   $ 0     0%
 
                   
Total Fees
  $ 27,217     0%   $ 39,300     0%
PWC billed the Registrant aggregate non-audit fees of $7,967 for the fiscal year ended February 28, 2011, and $4,300 for the fiscal year ended October 31, 2010, for non-audit services rendered to the Registrant.
 
(1)   With respect to the provision of non-audit services, the pre-approval requirement is waived pursuant to a de minimis exception if (i) such services were not recognized as non-audit services by the Registrant at the time of engagement, (ii) the aggregate amount of all such services provided is no more than 5% of the aggregate audit and non-audit fees paid by the Registrant to PWC during a fiscal year; and (iii) such services are promptly brought to the attention of the Registrant’s Audit Committee and approved by the Registrant’s Audit Committee prior to the completion of the audit.
 
(2)   Audit-Related fees for the fiscal year end February 28, 2011 includes fees billed for agreed upon procedures related to auction rate preferred securities.
 
(3)   Tax fees for the fiscal year end February 28, 2011 includes fees billed for reviewing tax returns. Tax fees for the fiscal year end October 31, 2010 includes fees billed for reviewing tax returns.
 
(4)   All Other fees for the fiscal year end February 28, 2011 includes fees billed for completing professional services related to benchmark analysis.

 


 

Fees Billed by PWC Related to Invesco and Invesco Affiliates
          PWC billed Invesco Advisers, Inc. (“Invesco”), the Registrant’s adviser, and any entity controlling, controlled by or under common control with Invesco that provides ongoing services to the Registrant (“Invesco Affiliates”) aggregate fees for pre-approved non-audit services rendered to Invesco and Invesco Affiliates for the last two fiscal years as follows:
                         
    Fees Billed for Non-         Fees Billed for Non-      
    Audit Services         Audit Services      
    Rendered to Invesco     Percentage of Fees   Rendered to Invesco     Percentage of Fees
    and Invesco     Billed Applicable to   and Invesco     Billed Applicable to
    Affiliates for fiscal     Non-Audit Services   Affiliates for fiscal     Non-Audit Services
    year end 2/28/2011     Provided for fiscal   year end 10/31/2010     Provided for fiscal
    That Were Required     year end 2/28/2011   That Were Required     year end 10/31/2010
    to be Pre-Approved     Pursuant to Waiver   to be Pre-Approved     Pursuant to Waiver
    by the Registrant’s     of Pre-Approval   by the Registrant’s     of Pre-Approval
    Audit Committee     Requirement(1)   Audit Committee     Requirement(1)
Audit-Related Fees
  $ 0     0%   $ 0     0%
Tax Fees
  $ 0     0%   $ 0     0%
All Other Fees
  $ 0     0%   $ 0     0%
 
                   
Total Fees(2)
  $ 0     0%   $ 0     0%
 
(1)   With respect to the provision of non-audit services, the pre-approval requirement is waived pursuant to a de minimis exception if (i) such services were not recognized as non-audit services by the Registrant at the time of engagement, (ii) the aggregate amount of all such services provided is no more than 5% of the aggregate audit and non-audit fees paid by the Registrant, Invesco and Invesco Affiliates to PWC during a fiscal year; and (iii) such services are promptly brought to the attention of the Registrant’s Audit Committee and approved by the Registrant’s Audit Committee prior to the completion of the audit.
 
(2)   Including the fees for services not required to be pre-approved by the registrant’s audit committee, PWC billed Invesco and Invesco Affiliates aggregate non-audit fees of $0 for the fiscal year ended February 28, 2011, and $0 for the fiscal year ended October 31, 2010, for non-audit services rendered to Invesco and Invesco Affiliates.
 
    The Audit Committee also has considered whether the provision of non-audit services that were rendered to Invesco and Invesco Affiliates that were not required to be pre-approved pursuant to SEC regulations, if any, is compatible with maintaining PWC’s independence. To the extent that such services were provided, the Audit Committee determined that the provision of such services is compatible with PWC maintaining independence with respect to the Registrant.

 


 

PRE-APPROVAL OF AUDIT AND NON-AUDIT SERVICES
POLICIES AND PROCEDURES
As adopted by the Audit Committees of
the Invesco Funds (the “Funds”)
Last Amended May 4, 2010
Statement of Principles
Under the Sarbanes-Oxley Act of 2002 and rules adopted by the Securities and Exchange Commission (“SEC”) (“Rules”), the Audit Committees of the Funds’ (the “Audit Committees”) Board of Trustees (the “Board”) are responsible for the appointment, compensation and oversight of the work of independent accountants (an “Auditor”). As part of this responsibility and to assure that the Auditor’s independence is not impaired, the Audit Committees pre-approve the audit and non-audit services provided to the Funds by each Auditor, as well as all non-audit services provided by the Auditor to the Funds’ investment adviser and to affiliates of the adviser that provide ongoing services to the Funds (“Service Affiliates”) if the services directly impact the Funds’ operations or financial reporting. The SEC Rules also specify the types of services that an Auditor may not provide to its audit client. The following policies and procedures comply with the requirements for pre-approval and provide a mechanism by which management of the Funds may request and secure pre-approval of audit and non-audit services in an orderly manner with minimal disruption to normal business operations.
Proposed services either may be pre-approved without consideration of specific case-by-case services by the Audit Committees (“general pre-approval”) or require the specific pre-approval of the Audit Committees (“specific pre-approval”). As set forth in these policies and procedures, unless a type of service has received general pre-approval, it will require specific pre-approval by the Audit Committees. Additionally, any fees exceeding 110% of estimated pre-approved fee levels provided at the time the service was pre-approved will also require specific approval by the Audit Committees before payment is made. The Audit Committees will also consider the impact of additional fees on the Auditor’s independence when determining whether to approve any additional fees for previously pre-approved services.
The Audit Committees will annually review and generally pre-approve the services that may be provided by each Auditor without obtaining specific pre-approval from the Audit Committee generally on an annual basis. The term of any general pre-approval runs from the date of such pre-approval through September 30th of the following year, unless the Audit Committees consider a different period and state otherwise. The Audit Committees will add to or subtract from the list of general pre-approved services from time to time, based on subsequent determinations.
The purpose of these policies and procedures is to set forth the guidelines to assist the Audit Committees in fulfilling their responsibilities.
Delegation
The Audit Committees may from time to time delegate pre-approval authority to one or more of its members who are Independent Trustees. All decisions to pre-approve a service by a delegated member shall be reported to the Audit Committees at the next quarterly meeting.
Audit Services
The annual audit services engagement terms will be subject to specific pre-approval of the Audit Committees. Audit services include the annual financial statement audit and other procedures such as tax provision work that is required to be performed by the independent auditor to be able to form an opinion on the Funds’ financial statements. The Audit Committees will obtain, review and consider sufficient information concerning the proposed Auditor to make a reasonable evaluation of the Auditor’s qualifications and independence.
In addition to the annual Audit services engagement, the Audit Committees may grant either general or specific pre-approval of other audit services, which are those services that only the independent auditor reasonably can provide. Other Audit services may include services such as issuing consents for the

 


 

inclusion of audited financial statements with SEC registration statements, periodic reports and other documents filed with the SEC or other documents issued in connection with securities offerings.
Non-Audit Services
The Audit Committees may provide either general or specific pre-approval of any non-audit services to the Funds and its Service Affiliates if the Audit Committees believe that the provision of the service will not impair the independence of the Auditor, is consistent with the SEC’s Rules on auditor independence, and otherwise conforms to the Audit Committees’ general principles and policies as set forth herein.
Audit-Related Services
“Audit-related services” are assurance and related services that are reasonably related to the performance of the audit or review of the Fund’s financial statements or that are traditionally performed by the independent auditor. Audit-related services include, among others, accounting consultations related to accounting, financial reporting or disclosure matters not classified as “Audit services”; assistance with understanding and implementing new accounting and financial reporting guidance from rulemaking authorities; and agreed-upon procedures related to mergers, compliance with ratings agency requirements and interfund lending activities.
Tax Services
“Tax services” include, but are not limited to, the review and signing of the Funds’ federal tax returns, the review of required distributions by the Funds and consultations regarding tax matters such as the tax treatment of new investments or the impact of new regulations. The Audit Committees will scrutinize carefully the retention of the Auditor in connection with a transaction initially recommended by the Auditor, the major business purpose of which may be tax avoidance or the tax treatment of which may not be supported in the Internal Revenue Code and related regulations. The Audit Committees will consult with the Funds’ Treasurer (or his or her designee) and may consult with outside counsel or advisors as necessary to ensure the consistency of Tax services rendered by the Auditor with the foregoing policy.
No Auditor shall represent any Fund or any Service Affiliate before a tax court, district court or federal court of claims.
Under rules adopted by the Public Company Accounting Oversight Board and approved by the SEC, in connection with seeking Audit Committees’ pre-approval of permissible Tax services, the Auditor shall:
  1.   Describe in writing to the Audit Committees, which writing may be in the form of the proposed engagement letter:
  a.   The scope of the service, the fee structure for the engagement, and any side letter or amendment to the engagement letter, or any other agreement between the Auditor and the Fund, relating to the service; and
 
  b.   Any compensation arrangement or other agreement, such as a referral agreement, a referral fee or fee-sharing arrangement, between the Auditor and any person (other than the Fund) with respect to the promoting, marketing, or recommending of a transaction covered by the service;
  2.   Discuss with the Audit Committees the potential effects of the services on the independence of the Auditor; and
 
  3.   Document the substance of its discussion with the Audit Committees.
All Other Auditor Services
The Audit Committees may pre-approve non-audit services classified as “All other services” that are not categorically prohibited by the SEC, as listed in Exhibit 1 to this policy.

 


 

Pre-Approval Fee Levels or Established Amounts
Pre-approval of estimated fees or established amounts for services to be provided by the Auditor under general or specific pre-approval policies will be set periodically by the Audit Committees. Any proposed fees exceeding 110% of the maximum estimated pre-approved fees or established amounts for pre-approved audit and non-audit services will be reported to the Audit Committees at the quarterly Audit Committees meeting and will require specific approval by the Audit Committees before payment is made. The Audit Committees will always factor in the overall relationship of fees for audit and non-audit services in determining whether to pre-approve any such services and in determining whether to approve any additional fees exceeding 110% of the maximum pre-approved fees or established amounts for previously pre-approved services.
Procedures
Generally on an annual basis, Invesco Advisers, Inc. (“Invesco”) will submit to the Audit Committees for general pre-approval, a list of non-audit services that the Funds or Service Affiliates of the Funds may request from the Auditor. The list will describe the non-audit services in reasonable detail and will include an estimated range of fees and such other information as the Audit Committee may request.
Each request for services to be provided by the Auditor under the general pre-approval of the Audit Committees will be submitted to the Funds’ Treasurer (or his or her designee) and must include a detailed description of the services to be rendered. The Treasurer or his or her designee will ensure that such services are included within the list of services that have received the general pre-approval of the Audit Committees. The Audit Committees will be informed at the next quarterly scheduled Audit Committees meeting of any such services for which the Auditor rendered an invoice and whether such services and fees had been pre-approved and if so, by what means.
Each request to provide services that require specific approval by the Audit Committees shall be submitted to the Audit Committees jointly by the Fund’s Treasurer or his or her designee and the Auditor, and must include a joint statement that, in their view, such request is consistent with the policies and procedures and the SEC Rules.
Each request to provide tax services under either the general or specific pre-approval of the Audit Committees will describe in writing: (i) the scope of the service, the fee structure for the engagement, and any side letter or amendment to the engagement letter, or any other agreement between the Auditor and the audit client, relating to the service; and (ii) any compensation arrangement or other agreement between the Auditor and any person (other than the audit client) with respect to the promoting, marketing, or recommending of a transaction covered by the service. The Auditor will discuss with the Audit Committees the potential effects of the services on the Auditor’s independence and will document the substance of the discussion.
Non-audit services pursuant to the de minimis exception provided by the SEC Rules will be promptly brought to the attention of the Audit Committees for approval, including documentation that each of the conditions for this exception, as set forth in the SEC Rules, has been satisfied.
On at least an annual basis, the Auditor will prepare a summary of all the services provided to any entity in the investment company complex as defined in section 2-01(f)(14) of Regulation S-X in sufficient detail as to the nature of the engagement and the fees associated with those services.
The Audit Committees have designated the Funds’ Treasurer to monitor the performance of all services provided by the Auditor and to ensure such services are in compliance with these policies and procedures. The Funds’ Treasurer will report to the Audit Committees on a periodic basis as to the results of such monitoring. Both the Funds’ Treasurer and management of Invesco will immediately report to the chairman of the Audit Committees any breach of these policies and procedures that comes to the attention of the Funds’ Treasurer or senior management of Invesco.

 


 

Exhibit 1 to Pre-Approval of Audit and Non-Audit Services Policies and Procedures
Conditionally Prohibited Non-Audit Services (not prohibited if the Fund can reasonably conclude that the results of the service would not be subject to audit procedures in connection with the audit of the Fund’s financial statements)
    Bookkeeping or other services related to the accounting records or financial statements of the audit client
 
    Financial information systems design and implementation
 
    Appraisal or valuation services, fairness opinions, or contribution-in-kind reports
 
    Actuarial services
 
    Internal audit outsourcing services
Categorically Prohibited Non-Audit Services
    Management functions
 
    Human resources
 
    Broker-dealer, investment adviser, or investment banking services
 
    Legal services
 
    Expert services unrelated to the audit
 
    Any service or product provided for a contingent fee or a commission
 
    Services related to marketing, planning, or opining in favor of the tax treatment of confidential transactions or aggressive tax position transactions, a significant purpose of which is tax avoidance
 
    Tax services for persons in financial reporting oversight roles at the Fund
 
    Any other service that the Public Company Oversight Board determines by regulation is impermissible.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
  (a)   The registrant has a separately-designed standing audit committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934, as amended. Members of the audit committee are: Jerry D. Choate, Linda Hutton Heagy and R. Craig Kennedy.
 
  (a)   Not applicable.
ITEM 6. SCHEDULE OF INVESTMENTS.
          Investments in securities of unaffiliated issuers is included as part of the reports to stockholders filed under Item 1 of this Form.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

 


 

(INVESCO LOGO)
I.2. PROXY POLICIES AND PROCEDURES — RETAIL
     
Applicable to
  Retail Accounts
Risk Addressed by Policy
  breach of fiduciary duty to client under Investment Advisers Act of 1940 by placing Invesco personal interests ahead of client best economic interests in voting proxies
Relevant Law and Other Sources
  Investment Advisers Act of 1940
Last Tested Date
   
Policy/Procedure Owner
  Advisory Compliance
Policy Approver
  Fund Board
Approved/Adopted Date
  January 1, 2010
The following policies and procedures apply to certain funds and other accounts managed by Invesco Advisers, Inc. (“Invesco”).
A. POLICY STATEMENT
Introduction
Our Belief
The Invesco Funds Boards of Trustees and Invesco’s investment professionals expect a high standard of corporate governance from the companies in our portfolios so that Invesco may fulfill its fiduciary obligation to our fund shareholders and other account holders. Well governed companies are characterized by a primary focus on the interests of shareholders, accountable boards of directors, ample transparency in financial disclosure, performance-driven cultures and appropriate consideration of all stakeholders. Invesco believes well governed companies create greater shareholder wealth over the long term than poorly governed companies, so we endeavor to vote in a manner that increases the value of our investments and fosters good governance within our portfolio companies.
In determining how to vote proxy issues, Invesco considers the probable business consequences of each issue and votes in a manner designed to protect and enhance fund shareholders’ and other account holders’ interests. Our voting decisions are intended to enhance each company’s total shareholder value over Invesco’s typical investment horizon.
Proxy voting is an integral part of Invesco’s investment process. We believe that the right to vote proxies should be managed with the same care as all other elements of the investment process. The objective of Invesco’s proxy-voting activity is to promote good governance and advance the economic interests of our clients. At no time will Invesco exercise its voting power to advance its own
     
January 2010   I.2 — 1

 


 

commercial interests, to pursue a social or political cause that is unrelated to our clients’ economic interests, or to favor a particular client or business relationship to the detriment of others.
B. OPERATING PROCEDURES AND RESPONSIBLE PARTIES
Proxy administration
The Invesco Retail Proxy Committee (the “Proxy Committee”) consists of members representing Invesco’s Investments, Legal and Compliance departments. Invesco’s Proxy Voting Guidelines (the “Guidelines”) are revised annually by the Proxy Committee, and are approved by the Invesco Funds Boards of Trustees. The Proxy Committee implements the Guidelines and oversees proxy voting.
The Proxy Committee has retained outside experts to assist with the analysis and voting of proxy issues. In addition to the advice offered by these experts, Invesco uses information gathered from our own research, company managements, Invesco’s portfolio managers and outside shareholder groups to reach our voting decisions.
Generally speaking, Invesco’s investment-research process leads us to invest in companies led by management teams we believe have the ability to conceive and execute strategies to outperform their competitors. We select companies for investment based in large part on our assessment of their management teams’ ability to create shareholder wealth. Therefore, in formulating our proxy-voting decisions, Invesco gives proper consideration to the recommendations of a company’s Board of Directors.
Important principles underlying the Invesco Proxy Voting Guidelines
I. Accountability
Management teams of companies are accountable to their boards of directors, and directors of publicly held companies are accountable to their shareholders. Invesco endeavors to vote the proxies of its portfolio companies in a manner that will reinforce the notion of a board’s accountability to its shareholders. Consequently, Invesco votes against any actions that would impair the rights of shareholders or would reduce shareholders’ influence over the board or over management.
The following are specific voting issues that illustrate how Invesco applies this principle of accountability.
    Elections of directors. In uncontested director elections for companies that do not have a controlling shareholder, Invesco votes in favor of slates if they are comprised of at least a majority of independent directors and if the boards’ key committees are fully independent. Key committees include the Audit, Compensation and Governance or Nominating Committees. Invesco’s standard of independence excludes directors who, in addition to the directorship, have any material business or family relationships with the companies they serve.
     
January 2010   I.2 — 2

 


 

      Contested director elections are evaluated on a case-by-case basis and are decided within the context of Invesco’s investment thesis on a company.
    Director performance. Invesco withholds votes from directors who exhibit a lack of accountability to shareholders, either through their level of attendance at meetings or by enacting egregious corporate-governance or other policies. In cases of material financial restatements, accounting fraud, habitually late filings, adopting shareholder rights plan (“poison pills”) without shareholder approval, or other areas of poor performance, Invesco may withhold votes from some or all of a company’s directors. In situations where directors’ performance is a concern, Invesco may also support shareholder proposals to take corrective actions such as so-called “clawback” provisions.
 
    Auditors and Audit Committee members. Invesco believes a company’s Audit Committee has a high degree of responsibility to shareholders in matters of financial disclosure, integrity of the financial statements and effectiveness of a company’s internal controls. Independence, experience and financial expertise are critical elements of a well-functioning Audit Committee. When electing directors who are members of a company’s Audit Committee, or when ratifying a company’s auditors, Invesco considers the past performance of the Committee and holds its members accountable for the quality of the company’s financial statements and reports.
 
    Majority standard in director elections. The right to elect directors is the single most important mechanism shareholders have to promote accountability. Invesco supports the nascent effort to reform the U.S. convention of electing directors, and votes in favor of proposals to elect directors by a majority vote.
 
    Classified boards. Invesco supports proposals to elect directors annually instead of electing them to staggered multi-year terms because annual elections increase a board’s level of accountability to its shareholders.
 
    Supermajority voting requirements. Unless proscribed by law in the state of incorporation, Invesco votes against actions that would impose any supermajority voting requirement, and supports actions to dismantle existing supermajority requirements.
 
    Responsiveness. Invesco withholds votes from directors who do not adequately respond to shareholder proposals that were approved by a majority of votes cast the prior year.
 
    Cumulative voting. The practice of cumulative voting can enable minority shareholders to have representation on a company’s board. Invesco supports proposals to institute the practice of cumulative voting at companies whose overall corporate-governance standards indicate a particular need to protect the interests of minority shareholders.
     
January 2010   I.2 — 3

 


 

    Shareholder access. On business matters with potential financial consequences, Invesco votes in favor of proposals that would increase shareholders’ opportunities to express their views to boards of directors, proposals that would lower barriers to shareholder action and proposals to promote the adoption of generally accepted best practices in corporate governance.
II. Incentives
Invesco believes properly constructed compensation plans that include equity ownership are effective in creating incentives that induce managements and employees of our portfolio companies to create greater shareholder wealth. Invesco supports equity compensation plans that promote the proper alignment of incentives, and votes against plans that are overly dilutive to existing shareholders, plans that contain objectionable structural features, and plans that appear likely to reduce the value of an account’s investment.
Following are specific voting issues that illustrate how Invesco evaluates incentive plans.
    Executive compensation. Invesco evaluates compensation plans for executives within the context of the company’s performance under the executives’ tenure. Invesco believes independent compensation committees are best positioned to craft executive-compensation plans that are suitable for their company-specific circumstances. We view the election of those independent compensation committee members as the appropriate mechanism for shareholders to express their approval or disapproval of a company’s compensation practices. Therefore, Invesco generally does not support shareholder proposals to limit or eliminate certain forms of executive compensation. In the interest of reinforcing the notion of a compensation committee’s accountability to shareholders, Invesco supports proposals requesting that companies subject each year’s compensation record to an advisory shareholder vote, or so-called “say on pay” proposals.
 
    Equity-based compensation plans. When voting to approve or reject equity-based compensation plans, Invesco compares the total estimated cost of the plans, including stock options and restricted stock, against a carefully selected peer group and uses multiple performance metrics that help us determine whether the incentive structures in place are creating genuine shareholder wealth. Regardless of a plan’s estimated cost relative to its peer group, Invesco votes against plans that contain structural features that would impair the alignment of incentives between shareholders and management. Such features include the ability to reprice or reload options without shareholder approval, the ability to issue options below the stock’s current market price, or the ability to automatically replenish shares without shareholder approval.
 
January 2010   I.2 — 4

 


 

    Employee stock-purchase plans. Invesco supports employee stock-purchase plans that are reasonably designed to provide proper incentives to a broad base of employees, provided that the price at which employees may acquire stock is at most a 15 percent discount from the market price.
 
    Severance agreements. Invesco generally votes in favor of proposals requiring advisory shareholder ratification of executives’ severance agreements. However, we oppose proposals requiring such agreements to be ratified by shareholders in advance of their adoption.
III. Capitalization
Examples of management proposals related to a company’s capital structure include authorizing or issuing additional equity capital, repurchasing outstanding stock, or enacting a stock split or reverse stock split. On requests for additional capital stock, Invesco analyzes the company’s stated reasons for the request. Except where the request could adversely affect the fund’s ownership stake or voting rights, Invesco generally supports a board’s decisions on its needs for additional capital stock. Some capitalization proposals require a case-by-case analysis within the context of Invesco’s investment thesis on a company. Examples of such proposals include authorizing common or preferred stock with special voting rights, or issuing additional stock in connection with an acquisition.
IV. Mergers, Acquisitions and Other Corporate Actions
Issuers occasionally require shareholder approval to engage in certain corporate actions such as mergers, acquisitions, name changes, dissolutions, reorganizations, divestitures and reincorporations. Invesco analyzes these proposals within the context of our investment thesis on the company, and determines its vote on a case-by-case basis.
V. Anti-Takeover Measures
Practices designed to protect a company from unsolicited bids can adversely affect shareholder value and voting rights, and they create conflicts of interests among directors, management and shareholders. Except under special issuer-specific circumstances, Invesco votes to reduce or eliminate such measures. These measures include adopting or renewing “poison pills”, requiring supermajority voting on certain corporate actions, classifying the election of directors instead of electing each director to an annual term, or creating separate classes of common or preferred stock with special voting rights. Invesco generally votes against management proposals to impose these types of measures, and generally votes for shareholder proposals designed to reduce such measures. Invesco supports shareholder proposals directing companies to subject their anti-takeover provisions to a shareholder vote.
VI. Shareholder Proposals on Corporate Governance
Invesco generally votes for shareholder proposals that are designed to protect shareholder rights if a company’s corporate-governance standards indicate that such additional protections are warranted.
     
January 2010   I.2 — 5

 


 

VII. Shareholder Proposals on Social Responsibility
The potential costs and economic benefits of shareholder proposals seeking to amend a company’s practices for social reasons are difficult to assess. Analyzing the costs and economic benefits of these proposals is highly subjective and does not fit readily within our framework of voting to create greater shareholder wealth over Invesco’s typical investment horizon. Therefore, Invesco abstains from voting on shareholder proposals deemed to be of a purely social, political or moral nature.
VIII. Routine Business Matters
Routine business matters rarely have a potentially material effect on the economic prospects of fund holdings, so we generally support the board’s discretion on these items. However, Invesco votes against proposals where there is insufficient information to make a decision about the nature of the proposal. Similarly, Invesco votes against proposals to conduct other unidentified business at shareholder meetings.
Summary
These Guidelines provide an important framework for making proxy-voting decisions, and should give fund shareholders and other account holders insight into the factors driving Invesco’s decisions. The Guidelines cannot address all potential proxy issues, however. Decisions on specific issues must be made within the context of these Guidelines and within the context of the investment thesis of the funds and other accounts that own the company’s stock. Where a different investment thesis is held by portfolio managers who may hold stocks in common, Invesco may vote the shares held on a fund-by-fund or account-by-account basis.
Exceptions
In certain circumstances, Invesco may refrain from voting where the economic cost of voting a company’s proxy exceeds any anticipated benefits of that proxy proposal.
Share-lending programs
One reason that some portion of Invesco’s position in a particular security might not be voted is the securities lending program. When securities are out on loan and earning fees for the lending fund, they are transferred into the borrower’s name. Any proxies during the period of the loan are voted by the borrower. The lending fund would have to terminate the loan to vote the company’s proxy, an action that is not generally in the best economic interest of fund shareholders. However, whenever Invesco determines that the benefit to shareholders or other account holders of voting a particular proxy outweighs the revenue lost by terminating the loan, we recall the securities for the purpose of voting the fund’s full position.
“Share-blocking”
Another example of a situation where Invesco may be unable to vote is in countries where the exercise of voting rights requires the fund to submit to short-term trading restrictions, a practice known as “share-blocking.” Invesco generally
     
January 2010   I.2 — 6

 


 

refrains from voting proxies in share-blocking countries unless the portfolio manager determines that the benefit to fund shareholders and other account holders of voting a specific proxy outweighs the fund’s or other account’s temporary inability to sell the security.
International constraints
An additional concern that sometimes precludes our voting non-U.S. proxies is our inability to receive proxy materials with enough time and enough information to make a voting decision. In the great majority of instances, however, we are able to vote non-U.S. proxies successfully. It is important to note that Invesco makes voting decisions for non-U.S. issuers using these Guidelines as our framework, but also takes into account the corporate-governance standards, regulatory environment and generally accepted best practices of the local market.
Exceptions to these Guidelines
Invesco retains the flexibility to accommodate company-specific situations where strictly adhering to the Guidelines would lead to a vote that the Proxy Committee deems not to be in the best interest of the funds’ shareholders and other account holders. In these situations, the Proxy Committee will vote the proxy in the manner deemed to be in the best interest of the funds’ shareholders and other account holders, and will promptly inform the funds’ Boards of Trustees of such vote and the circumstances surrounding it.
Resolving potential conflicts of interest
A potential conflict of interest arises when Invesco votes a proxy for an issuer with which it also maintains a material business relationship. Examples could include issuers that are distributors of Invesco’s products, or issuers that employ Invesco to manage portions of their retirement plans or treasury accounts. Invesco reviews each proxy proposal to assess the extent, if any, to which there may be a material conflict between the interests of the fund shareholders or other account holders and Invesco.
Invesco takes reasonable measures to determine whether a potential conflict may exist. A potential conflict is deemed to exist only if one or more of the Proxy Committee members actually knew or should have known of the potential conflict.
If a material potential conflict is deemed to exist, Invesco may resolve the potential conflict in one of the following ways: (1) if the proposal that gives rise to the potential conflict is specifically addressed by the Guidelines, Invesco may vote the proxy in accordance with the predetermined Guidelines; (2) Invesco may engage an independent third party to determine how the proxy should be voted; or (3) Invesco may establish an ethical wall or other informational barrier between the persons involved in the potential conflict and the persons making the proxy-voting decision in order to insulate the potential conflict from the decision makers.
Because the Guidelines are pre-determined and crafted to be in the best economic interest of shareholders and other account holders, applying the Guidelines to vote client proxies should, in most instances, adequately resolve any potential conflict of
     
January 2010   I.2 — 7

 


 

interest. As an additional safeguard against potential conflicts, persons from Invesco’s marketing, distribution and other customer-facing functions are precluded from becoming members of the Proxy Committee.
On a quarterly basis, the Invesco Funds Boards of Trustees review a report from Invesco’s Internal Compliance Controls Committee. The report contains a list of all known material business relationships that Invesco maintains with publicly traded issuers. That list is cross-referenced with the list of proxies voted over the period. If there are any instances where Invesco’s voting pattern on the proxies of its material business partners is inconsistent with its voting pattern on all other issuers, they are brought before the Trustees and explained by the Chairman of the Proxy Committee.
Personal conflicts of interest. If any member of the Proxy Committee has a personal conflict of interest with respect to a company or an issue presented for voting, that Proxy Committee member will inform the Proxy Committee of such conflict and will abstain from voting on that company or issue.
Funds of funds. Some Invesco Funds offering diversified asset allocation within one investment vehicle own shares in other Invesco Funds. A potential conflict of interest could arise if an underlying Invesco Fund has a shareholder meeting with any proxy issues to be voted on, because Invesco’s asset-allocation funds or target-maturity funds may be large shareholders of the underlying fund. In order to avoid any potential for a conflict, the asset-allocation funds and target maturity funds vote their shares in the same proportion as the votes of the external shareholders of the underlying fund.
C. RECORDKEEPING
Records are maintained in accordance with Invesco’s Recordkeeping Policy.
Policies and Vote Disclosure
A copy of these Guidelines and the voting record of each Invesco Fund are available on our web site, www.invesco.com. In accordance with Securities and Exchange Commission regulations, all funds file a record of all proxy-voting activity for the prior 12 months ending June 30th. That filing is made on or before August 31st of each year.
     
January 2010   I.2 — 8

 


 

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
The following individuals are jointly and primarily responsible for the day-to-day management of the Trust:
    Thomas Byron, Portfolio Manager, who has been responsible for the Trust since 1997 and has been associated with Invesco and/or its affiliates since 2010. From 1981 to 2010, Mr. Byron was associated with Morgan Stanley Investment Advisors Inc. in an investment management capacity.
 
    Robert Stryker, Portfolio Manager, who has been responsible for the Trust since 2009 and has been with Invesco and/or its affiliates since 2010. From 1994 to 2010, Mr. Stryker was associated with Morgan Stanley Investment Advisors Inc. in an investment management capacity.
 
    Robert Wimmel, Portfolio Manager, who has been responsible for the Trust since 2001 and has been associated with Invesco and/or its affiliates since 2010. From 1996 to 2010, Mr. Wimmel was associated with Morgan Stanley Investment Advisors Inc. in an investment management capacity.
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 following chart reflects the portfolio managers’ investments in the Funds that they manage. The chart also reflects information regarding accounts other than the Funds 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 broken out. In addition, any assets denominated in foreign currencies have been converted into U.S. Dollars using the exchange rates as of the applicable date.
The following information is as of February 28, 2011:
                                                         
            Other Registered   Other Pooled    
            Investment Companies   Investment Vehicles   Other Accounts
    Dollar Range   Managed (assets in   Managed (assets in   Managed
    of   millions)   millions)   (assets in millions)
    Investments   Number       Number       Number    
Portfolio   in Each   of       of       of    
Manager   Fund1   Accounts   Assets   Accounts   Assets   Accounts   Assets
Invesco Van Kampen Trust for Investment Grade Municipals
Thomas Byron
  $ 1- $10,000       28     $ 9,596.9     None   None   None   None
Robert Stryker
  None     33     $ 10,304.5     None   None   None   None
Robert Wimmel
  None     29     $ 10,222.7     None   None   None   None
 
1   This column reflects investments in a Fund’s shares owned directly by a portfolio manager or 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). A portfolio manager is presumed to be a beneficial owner of securities that are held by his or her immediate family members sharing the same household.

 


 

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:
Ø   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.
 
Ø   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.
 
Ø   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.
 
Ø   Finally, 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.
          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.
Description of Compensation Structure
For the Adviser and each affiliated 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 bonus opportunity and an equity 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 amount of the bonus pool available for the Adviser and each of the Sub-Adviser’s investment centers. The Compensation Committee considers investment performance and financial results in its review. 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 non-quantitative factors (which may include, but are not limited to, 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.
Table 1
     
Sub-Adviser   Performance time period2
Invesco 3,4,5
Invesco Australia
Invesco Deutschland
  One-, Three- and Five-year performance against Fund peer group.
 
   
Invesco Senior Secured
  N/A
 
   
Invesco Trimark3
  One-year performance against Fund peer group.
 
   
 
  Three- and Five-year performance against entire universe of Canadian funds.
 
   
Invesco Hong Kong3
Invesco Asset Management
  One-, Three- and Five-year performance against Fund peer group.
 
   
Invesco Japan6
  One-, Three- and Five-year performance against the appropriate Micropol benchmark.
          Invesco Senior Secured’s bonus is based on annual measures of equity return and standard tests of collateralization performance.
          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.
 
2   Rolling time periods based on calendar year-end.
 
3   Portfolio Managers may be granted a short-term award that vests on a pro-rata basis over a four year period and final payments are based on the performance of eligible Funds selected by the portfolio manager at the time the award is granted.
 
4   Portfolio Managers for Invesco Global Real Estate Fund, Invesco Real Estate Fund, Invesco Select Real Estate Income Fund and Invesco V.I. Global Real Estate Fund base their bonus on new operating profits of the U.S. Real Estate Division of Invesco.
 
5   Portfolio Managers for Invesco Balanced Fund, Invesco Basic Balanced Fund, Invesco Basic Value Fund, Invesco Fundamental Value Fund, Invesco Large Cap Basic Value Fund, Invesco Large Cap Relative Value Fund, Invesco Mid Cap Basic Value Fund, Invesco Mid-Cap Value Fund, Invesco U.S. Mid Cap Value Fund, Invesco Value Fund, Invesco Value II Fund, Invesco V.I. Basic Balanced Fund, Invesco V.I. Basic Value Fund, Invesco V.I. Select Dimensions Balanced Fund, Invesco V.I. Income Builder Fund, Invesco Van Kampen American Value Fund, Invesco Van Kampen Comstock Fund, Invesco Van Kampen Equity and Income Fund, Invesco Van Kampen Growth and Income Fund, Invesco Van Kampen Value Opportunities Fund, Invesco Van Kampen V.I. Comstock Fund, Invesco Van Kampen V.I. Growth and Income Fund, Invesco Van Kampen V.I. Equity and Income Fund, Invesco Van Kampen V.I. Mid Cap Value Fund and Invesco Van Kampen V.I. Value Fund’s compensation is based on the one-, three- and five-year performance against the Fund’s peer group. Furthermore, for the portfolio manager(s) formerly managing the predecessor funds to the Funds in this footnote 5, they also have a ten-year performance measure.
 
6   Portfolio Managers for Invesco Pacific Growth Fund’s compensation is based on the one-, three- and five-year performance against the appropriate Micropol benchmark. Furthermore, for the portfolio manager(s) formerly managing the predecessor fund to Invesco Pacific Growth Fund, they also have a ten-year performance measure.

 


 

          Equity-Based Compensation. Portfolio managers may be granted an award that allows them to select receipt of shares of certain Invesco Funds with a vesting period as well as common shares and/or restricted shares of Invesco Ltd. stock from pools determined from time to time by the Compensation Committee of Invesco Ltd.’s Board of Directors. Awards of equity-based compensation typically vest over time, so as to create incentives to retain key talent.
          Portfolio managers also participate in benefit plans and programs available generally to all employees.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
          Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
          None
ITEM 11. CONTROLS AND PROCEDURES.
(a)   As of March 21, 2011, an evaluation was performed under the supervision and with the participation of the officers of the Registrant, including the PEO and 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 Investment Company Act of 1940 (the “Act”), as amended. Based on that evaluation, the Registrant’s officers, including the PEO and PFO, concluded that, as of March 21, 2011, 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 second fiscal quarter of 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 12. EXHIBITS.
     
12(a)(1)
  Code of Ethics.
 
   
12(a) (2)
  Certifications of principal executive officer and principal financial officer as required by Rule 30a-2(a) under the Investment Company Act of 1940.
 
   
12(a) (3)
  Not applicable.
 
   
12(b)
  Certifications of principal executive officer and principal financial officer as required by Rule 30a-2(b) under the Investment Company Act of 1940.

 


 

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 Van Kampen Trust for Investment Grade Municipals
         
By:
  /s/ Colin Meadows
 
Colin Meadows
   
 
  Principal Executive Officer    
 
       
Date:
  May 9, 2011    
Pursuant to the requirements of the Securities and 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/ Colin Meadows
 
Colin Meadows
   
 
  Principal Executive Officer    
 
       
Date:
  May 9, 2011    
 
       
By:
  /s/ Sheri Morris
 
Sheri Morris
   
 
  Principal Financial Officer    
 
       
Date:
  May 9, 2011    

 


 

EXHIBIT INDEX
     
12(a)(1)
  Code of Ethics.
 
   
12(a)(2)
  Certifications of principal executive officer and principal Financial officer as required by Rule 30a-2(a) under the Investment Company Act of 1940.
 
   
12(a)(3)
  Not applicable.
 
   
12(b)
  Certifications of principal executive officer and principal financial officer as required by Rule 30a-2(b) under the Investment Company Act of 1940.