Invesco Van Kampen V.I. Comstock Fund · 2020. 5. 2. · Invesco Van Kampen V.I. Comstock Fund...

Invesco Van Kampen V.I. Comstock FundAnnual Report to Shareholders • December 31, 2011

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

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

Information regarding how the Fund voted proxies related to its portfolio securities during the 12 months ended June 30, 2011, is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

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

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

Invesco Distributors, Inc.

VK-VICOM-AR-1

Invesco Van Kampen V.I. Comstock Fund

Management’s Discussion of Fund Performance

How we investOur strategy aims to exploit market ineffi ciencies by investing in companies that appear undervalued relative to the market in general. Ultimately, we believe the market will recognize the value in these companies, and we will sell as the stock prices begin to refl ect their intrinsic value. We feel that stock selection, as opposed to making sector bets, may provide a more consistent opportunity for success. In addition, investors can take advantage of pricing anomalies by purchasing undervalued stocks before a recognizable catalyst arises.

The Fund’s investable universe includes all large-cap U.S.-denominated equities. To distill these investments, we fi rst fi lter for companies with suffi cient liquidity. We fi lter the remaining securities on valu-ation metrics depending upon the growth or cyclical nature of their business. The

result of this fi ltering process is a pool of highly liquid securities that we believe are statistically inexpensive relative to the broader market. Companies identifi ed in the fi ltering process are thoroughly ana-lyzed to assess intrinsic value and their ability to achieve fair value.

We will initiate a purchase of a security only if we believe the potential for stock price appreciation outweighs potential downside risk. To be eligible for inclusion in the Fund, a stock must meet the follow-ing criteria:• It is statistically cheap on the basis of

its primary valuation criteria, which depends upon the cyclical or growth nature of its business.

• Rigorous fundamental analysis shows that the company is undervalued and possesses potential fi nancial strength and improved quality of management for future growth.

Portfolio construction is bottom up and stock specifi c, concentrating on individ-ual company fundamental analysis and valuations. Therefore, while we monitor and are aware of our positions relative to the benchmark, it does not play a major role in the construction of the Fund.

We seek to manage risk with portfolio construction, mainly though diversifi ca-tion across most major sectors, and through the assistance of an independent quantitative risk control group. Risk man-agement is continuous. The Fund is regu-larly reviewed to ensure it is optimally constructed on a risk/reward basis. We have the fi nal say on the construction of the Fund, and there is a collegial relation-ship between the risk management team and the Fund team.

Our sell discipline is just as important as the buy decision and is based on the same principles: relative value and funda-mentals. While no sale is automatic, a security is typically sold if it meets one or more of the following criteria:• We believe the target price has been

realized, and we no longer consider the company undervalued.

• We determine that a better value opportunity can be found elsewhere.

• Our research shows that a company is experiencing deteriorating funda-mentals beyond what we feel to be a tolerable level, and the trend is likely to be a long-term issue.

Market conditions and your FundThe fi scal year began with equity markets fueled by the second round of “quantita-tive easing” by the U.S. Federal Reserve, and markets rose through the fi rst quarter of 2011. However, with the spring came increased volatility and signifi cant macroeconomic distortions due to civil unrest in Egypt and Libya, fl ooding in Australia and a devastating earthquake and tsunami in Japan. Corporate earnings remained strong with largely positive surprises, but were often overshadowed by investor concerns about continuing high unemployment and soft housing data. Although markets stabilized and were generally in positive territory through the summer, major equity indexes sold off precipitously in August as the U.S. government struggled to raise the nation’s debt ceiling. Despite an eventual agreement between the White House and Congress, credit rating agency Standard & Poor’s announced the fi rst-ever downgrade to long-term U.S. government debt. Uncertainty created by the downgrade combined with the

Performance summaryFor the year ended December 31, 2011, Invesco Van Kampen V.I. Comstock Fund underperformed its benchmark, the Russell 1000 Value Index. The Fund’s perfor-mance was mixed among sectors, with stock selection in the health care, consumer discretionary (specifi cally media companies) and telecommunication sectors contrib-uting to relative performance. Alternatively, stock selection and an underweight position in the energy sector detracted the most from the Fund’s performance versus its style-specifi c benchmark.

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

Fund vs. IndexesTotal returns, 12/31/10 to 12/31/11, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares –1.84%Series II Shares –2.11S&P 500 Index▼ (Broad Market Index) 2.09Russell 1000 Value Index▼ (Style-Specifi c Index) 0.39Lipper VUF Large-Cap Value Funds Index▼ (Peer Group Index) –1.70

Source(s): ▼Lipper Inc.As noted in the Fund’s latest semiannual report, the Fund has adopted a three-tier benchmark structure to compare its performance to broad market, style-specifi c and peer group market measures.

Top 10 Equity Holdings*

1. Comcast Corp. 4.2% 2. International Paper Co. 3.2 3. Pfi zer Inc. 2.8 4. JPMorgan Chase & Co. 2.6 5. Viacom Inc. 2.5 6. Microsoft Corp. 2.4 7. Bristol-Myers Squibb Co. 2.3 8. Citigroup Inc. 2.3 9. Allstate Corp. (The) 2.2 10. BP PLC-ADR 2.2

Portfolio CompositionBy sector

Financials 19.7%Consumer Discretionary 16.1Health Care 13.6Energy 12.1Information Technology 11.1Consumer Staples 7.7Industrials 6.3Materials 4.1Telecommunication Services 3.8Utilities 2.9Money Market Funds Plus Other Assets Less Liabilities 2.6 The Fund’s holdings are subject to change, and

there is no assurance that the Fund will continue to hold any particular security.*Excluding money market fund holdings.

Total Net Assets $1.8 billion

Total Number of Holdings* 72


Kevin HoltChartered Financial Analyst, portfolio manager, is lead manager of Invesco Van Kampen V.I. Comstock Fund.

Mr. Holt joined Invesco in 2010. He earned a bachelor’s degree from the University of Iowa and an M.B.A. from the University of Chicago Graduate School of Business.

Devin ArmstrongChartered Financial Analyst, portfolio manager, is manager of Invesco Van Kampen V.I. Comstock Fund.

Mr. Armstrong joined Invesco in 2010. He earned a B.S. in psychology and fi nance from the University of Illinois and an M.B.A. in fi nance from Columbia University.

Jason LederChartered Financial Analyst, portfolio manager, is manager of Invesco Van Kampen V.I. Comstock Fund. Mr. Leder

joined Invesco in 2010. He earned a bachelor’s degree from The University of Texas and an M.B.A. from Columbia University.

Matthew SeinsheimerChartered Financial Analyst, portfolio manager, is manager of Invesco Van Kampen V.I. Comstock Fund.

Mr. Seinsheimer joined Invesco in 1998. He earned a B.B.A. from Southern Methodist University and an M.B.A. from The University of Texas at Austin.

James WarwickPortfolio manager, is manager of Invesco Van Kampen V.I. Comstock Fund. Mr. Warwick joined Invesco in 2010. He

earned a B.B.A. from Stephen F. Austin State University and an M.B.A. from the University of Houston.

continuing saga surrounding the debt crisis in the eurozone reignited fears of a global recession. Despite evidence of sustained, but muted, growth, these macroeconomic factors continued to weigh on markets through the end of the reporting period.

Results were mixed among the sectors of the Russell 1000 Value Index, with cyclical sectors such as fi nancials, materials and information technology (IT) posting negative returns, while defensive sectors such as health care and consumer staples fared better, posting double-digit positive returns.

On the positive side, strong stock selection in the health care sector was the largest contributor to Fund performance. Health care provider UnitedHealth Group and pharmaceuti-cals companies Bristol-Myers Squibb and GlaxoSmithKline were top per-formers in this sector on a relative and absolute basis.

Stock selection and a signifi cant over-weight position in the consumer discre-tionary sector also contributed to the Fund’s relative performance. The Fund’s main consumer discretionary exposure was in the media companies industry. Viacom and Comcast were top perform-ers during the reporting period, continu-ing the trend from the previous fi scal year.

Favorable stock selection in the tele-communication services sector also con-tributed to Fund performance. Notably, Vodafone Group was one of the largest relative contributors in this sector. Not owning holdings such as Sprint Nextel also helped relative Fund performance versus the Russell 1000 Value Index.

Unfavorable stock selection and a slight underweight position in the energy sector were the largest detractors from Fund performance. Specifi cally, the Fund had exposure to oil equipment and services companies Halliburton and Weatherford, which were two of the main detractors in this sector. Both holdings were affected by decreasing profi t mar-gins from international drilling efforts that fell through during the economic slowdown in Europe and overseas, causing earnings expectations to be lowered, thereby, negatively affecting the stock price.

Unfavorable stock selection and a meaningful overweight to IT companies also hurt Fund performance relative to the style-specifi c index. Hardware and internet-related stocks, including Cisco Systems and Hewlett-Packard, per-formed poorly over the reporting period.

Cisco Systems’ stock declined on cautious guidance regarding company revenue forecasts and worries of IT spending cuts from both the U.S. government and corporations. Hewlett-Packard’s stock declined on concerns of overpaying for the acquisition of an enterprise software company. The company’s CEO was replaced in September of 2011 by Meg Whitman, the former CEO of eBay.

A material underweight exposure to the utilities sector was a major detractor from Fund performance. Utilities was the best performing sector for the reporting period, as investors sought defensive oriented, dividend yielding stocks during the market turmoil.

Finally, stock selection in the fi nancials sector acted as a detractor from relative Fund performance for the year. Notably, exposure to diversifi ed fi nancials like Citigroup, Morgan Stanley and Bank of New York Mellon detracted from both absolute and relative Fund performance as investors fl ed bank stocks beginning in the summer of 2011 on concerns of European debt crisis contagion.

Toward the end of the reporting period, we reduced our exposure to select media, pharmaceuticals and insurance compa-nies due to rising valuations, using the proceeds to increase the Fund’s exposure to select diversifi ed fi nancial, banking, property and casualty insurance and integrated oil companies as they came under pressure.

We believe in our contrarian philosophy and deep value approach of buying extremely undervalued companies, and capitalizing on market volatility and peri-ods of down markets as value is created for new investment opportunities.

Thank you for your investment in Invesco Van Kampen V.I. Comstock Fund and for sharing our long-term investment horizon.

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

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


Your Fund’s Long-Term Performance

Results of a $10,000 Investment — Oldest Share Class(es)Fund and index data from 12/31/01*

1 Source: Lipper Inc.

$14,652 Russell 1000 Value Index1

$13,966 Invesco Van Kampen V.I. Comstock Fund—Series I Shares

$13,333 S&P 500 Index1

$12,926 Lipper VUF Large-Cap Value Funds Index1

5,000

10,000

15,000

$20,000

12/1112/1012/0912/0812/0712/0612/0512/0412/0312/0212/31/01

Effective June 1, 2010, Class I and Class II shares of the predecessor fund, Van Kampen Life Investment Trust Comstock Portfolio, advised by Van Kampen Asset Management were reorganized into Series I and Series II shares, respectively, of Invesco Van Kampen V.I. Comstock Fund. Returns shown above for Series I and Series II shares are blended returns of the predecessor fund and Invesco Van Kampen V.I. Comstock Fund. Share class returns will differ from the predecessor fund because of different expenses.

The performance data quoted repre-sent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please contact your variable product issuer or financial adviser for the most recent month-end variable product performance. Performance fig-ures reflect Fund expenses, reinvested distributions and changes in net asset value. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

The net annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Series I and Series II shares was 0.62% and 0.87%, respec-tively.1 The total annual Fund operat-ing expense ratio set forth in the most recent Fund prospectus as of the date of this report for Series I and Series II shares was 0.85% and 1.10%, respec-tively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

Invesco Van Kampen V.I. Comstock Fund, a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), is currently offered through insurance companies issuing variable products. You cannot pur-chase shares of the Fund directly. Performance figures given represent the Fund and are not intended to reflect actual variable product values. They do not reflect sales charges, expenses and fees assessed in connection with a variable product. Sales charges, expenses and fees, which are deter-mined by the variable product issuers, will vary and will lower the total return.

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

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

Past performance cannot guarantee comparable future results.

As noted earlier in this report, the Fund has adopted a three-tier benchmark structure to compare its performance

to broad market, style-specific and peer group market measures. These addi-tional benchmarks will now be included in the chart above.

Average Annual Total ReturnsAs of 12/31/11

Series I SharesInception (4/30/99) 4.13% 10 Years 3.40 5 Years –1.57 1 Year –1.84

Series II SharesInception (9/18/00) 3.97% 10 Years 3.15 5 Years –1.83 1 Year –2.11

* During the reporting period, Invesco changed its policy regarding growth of $10,000 charts. For funds older than 10 years, we previously showed performance since inception. Going forward, we will show performance for the most recent 10 years, since this more accurately refl ects the experience of the typical share-holder. As a result, charts now may include benchmarks that did not appear previously, because the funds’ inception pre-dated the benchmarks’ inception. Also, all charts will now be presented using a linear format.


Invesco Van Kampen V.I. Comstock Fund’s investment objective is to seek capital growth and income through investments in equity securities, including common stocks, preferred stocks and securities con-vertible into common and preferred stocks.• Unless otherwise stated, information presented in this report is as of December 31, 2011, and is based on total net assets. • Unless otherwise noted, all data provided by Invesco.• To access your Fund’s reports/prospectus, visit invesco.com/fundreports.

Principal risks of investing in the FundMarket risk. Market risk is the possibility that the market values of securities owned by the Fund will decline. Market risk may affect a single issuer, industry, sector of the economy or the market as a whole. Investments in equity securities generally are affected by changes in the stock markets which fluctuate substan-tially over time, sometimes suddenly and sharply. The ability of the Fund’s investment holdings to generate income depends on the earnings and the continu-ing declaration of dividends by the issu-ers of such securities. The value of a convertible security tends to decline as interest rates rise and, because of the conversion feature, tends to vary with fluctuations in the market value of the underlying equity security.

Small- and medium-sized companies risk. During an overall stock market decline, stock prices of small- or medium-sized companies often fluctuate more than stock prices of larger companies or the market averages in general. In addi-tion, such companies typically are subject to a greater degree of change in earnings and business prospects than are larger companies and may be less liquid than larger-sized companies. In addition, small- and medium-sized companies may have more limited markets, financial resources and product lines, and may lack the depth of management of larger companies.

Value investing. This style of investing is subject to the risk that the valuations never improve or that the returns on value equity securities are less than the returns on other styles of investing or the overall stock markets.

Foreign risks. The risks of investing in securities of foreign issuers, including emerging market issuers, can include fluctuations in foreign currencies, foreign currency exchange controls, political and economic instability, differences in secu-rities regulation and trading, and foreign taxation issues.

Futures risk. A decision as to whether, when and how to use futures involves the exercise of skill and judgment and even a well-conceived futures transaction may be unsuccessful because of market behavior or unexpected events.

Options risk. A decision as to whether, when and how to use options involves the exercise of skill and judgment and even a well-conceived option transaction may be unsuccessful because of market behavior or unexpected events. The prices of options can be highly volatile and the use of options can lower total returns.

Real estate investment trusts (REITs) risk. Investing in REITs makes the Fund more susceptible to risks associated with the ownership of real estate and with the real estate industry in general and may involve duplication of management fees and certain other expenses. In addition, REITs depend upon specialized manage-ment skills, may be less diversified, may have lower trading volume, and may be subject to more abrupt or erratic price movements than the overall securities markets.

Derivative instruments risk. Risks of derivatives include the possible imperfect correlation between the value of the instruments and the underlying assets; risks of default by the other party to certain transactions; risks that the trans-actions may result in losses that partially or completely offset gains in portfolio positions; and risks that the transactions may not be liquid.

About indexes used in this report The S&P 500® Index is an unmanaged index considered representative of the U.S. stock market.

The Russell 1000® Value Index is an unmanaged index considered representa-tive of large-cap value stocks. The Russell 1000 Value Index is a trademark/service mark of the Frank Russell Co. Russell® is a trademark of the Frank Russell Co.

The Lipper VUF Large-Cap Value Funds Index is an unmanaged index considered representative of large-cap value variable insurance underlying funds tracked by Lipper.

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

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

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

Industry classifi cations used in this report are generally according to the Global Industry Classifi cation Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

The returns shown in management’s discussion of Fund 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 Fund at period end for fi nancial 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. Additionally, the returns and net asset values shown throughout this report are at the Fund level only and do not include variable product issuer charges. If such charges were included, the total returns would be lower.

Schedule of InvestmentsDecember 31, 2011

Shares Value

Common Stocks & Other EquityInterests–97.36%(a)

Aerospace & Defense–2.39%

Honeywell International Inc. 502,426 $ 27,306,853

Textron Inc. 838,070 15,495,914

42,802,767

Aluminum–0.90%

Alcoa Inc. 1,852,362 16,022,931

Asset Management & Custody Banks–1.98%

Bank of New York Mellon Corp. (The) 1,359,091 27,059,502

State Street Corp. 209,852 8,459,134

35,518,636

Automobile Manufacturers–1.25%

General Motors Co.(b) 1,103,681 22,371,614

Cable & Satellite–5.91%

Comcast Corp.–Class A 3,140,641 74,464,598

Time Warner Cable Inc. 492,305 31,295,829

105,760,427

Communications Equipment–1.03%

Cisco Systems, Inc. 1,022,014 18,478,013

Computer Hardware–2.88%

Dell Inc.(b) 1,220,173 17,851,131

Hewlett-Packard Co. 1,310,961 33,770,355

51,621,486

Department Stores–0.36%

Macy’s, Inc. 202,726 6,523,723

Diversified Banks–2.51%

U.S. Bancorp 416,231 11,259,049

Wells Fargo & Co. 1,222,236 33,684,824

44,943,873

Drug Retail–1.94%

CVS Caremark Corp. 851,348 34,717,971

Electric Utilities–2.93%

FirstEnergy Corp. 482,646 21,381,218

PPL Corp. 1,055,735 31,059,723

52,440,941

Electrical Components & Equipment–0.72%

Emerson Electric Co. 276,777 12,895,040

General Merchandise Stores–0.71%

Target Corp. 249,090 12,758,390

Shares Value

Health Care Distributors–0.96%

Cardinal Health, Inc. 423,278 $ 17,189,320

Home Improvement Retail–1.59%

Home Depot, Inc. (The) 264,000 11,098,560

Lowe’s Cos., Inc. 686,444 17,421,949

28,520,509

Household Products–0.37%

Procter & Gamble Co. (The) 100,077 6,676,137

Hypermarkets & Super Centers–1.04%

Wal-Mart Stores, Inc. 311,852 18,636,276

Industrial Conglomerates–1.49%

General Electric Co. 1,485,952 26,613,400

Industrial Machinery–1.67%

Ingersoll-Rand PLC (Ireland) 982,482 29,936,227

Integrated Oil & Gas–7.55%

BP PLC–ADR (United Kingdom) 901,840 38,544,642

Chevron Corp. 352,014 37,454,290

Murphy Oil Corp. 381,944 21,289,558

Royal Dutch Shell PLC–ADR (United Kingdom) 517,354 37,813,404

135,101,894

Integrated Telecommunication Services–2.79%

AT&T Inc. 662,336 20,029,041

Verizon Communications Inc. 743,243 29,818,909

49,847,950

Internet Software & Services–3.73%

eBay Inc.(b) 1,175,614 35,656,373

Yahoo! Inc.(b) 1,925,619 31,060,234

66,716,607

Investment Banking & Brokerage–1.59%

Goldman Sachs Group, Inc. (The) 155,300 14,043,779

Morgan Stanley 949,805 14,370,550

28,414,329

Life & Health Insurance–1.47%

Aflac, Inc. 152,674 6,604,677

MetLife, Inc. 631,559 19,692,010

26,296,687

Managed Health Care–2.80%

UnitedHealth Group Inc. 675,078 34,212,953

WellPoint, Inc. 239,724 15,881,715

50,094,668

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


Shares Value

Movies & Entertainment–5.44%

News Corp.–Class B 1,562,235 $ 28,401,432

Time Warner Inc. 651,771 23,555,004

Viacom Inc.–Class B 999,129 45,370,448

97,326,884

Oil & Gas Drilling–0.45%

Noble Corp.(b) 267,452 8,082,399

Oil & Gas Equipment & Services–3.45%

Halliburton Co. 1,048,005 36,166,652

Weatherford International Ltd.(b) 1,741,934 25,501,914

61,668,566

Oil & Gas Exploration & Production–0.61%

Chesapeake Energy Corp. 491,412 10,953,573

Other Diversified Financial Services–5.78%

Bank of America Corp. 2,716,933 15,106,147

Citigroup Inc. 1,593,390 41,922,091

JPMorgan Chase & Co. 1,399,243 46,524,830

103,553,068

Packaged Foods & Meats–3.57%

Kraft Foods Inc.–Class A 848,843 31,712,774

Unilever N.V.–New York Shares (Netherlands) 938,932 32,271,093

63,983,867

Paper Products–3.24%

International Paper Co. 1,960,925 58,043,380

Personal Products–0.30%

Avon Products, Inc. 310,348 5,421,780

Pharmaceuticals–9.87%

Abbott Laboratories 127,038 7,143,347

Bristol-Myers Squibb Co. 1,143,137 40,284,148

GlaxoSmithKline PLC–ADR (United Kingdom) 454,348 20,731,899

Merck & Co., Inc. 944,427 35,604,898

Pfizer Inc. 2,276,465 49,262,703

Roche Holding AG–ADR (Switzerland) 340,186 14,479,098

Sanofi–ADR (France) 251,412 9,186,594

176,692,687

Shares Value

Property & Casualty Insurance–3.95%

Allstate Corp. (The) 1,422,253 $ 38,983,955

Chubb Corp. (The) 115,482 7,993,664

Travelers Cos., Inc. (The) 400,921 23,722,495

70,700,114

Regional Banks–2.38%

Fifth Third Bancorp 1,205,177 15,329,851

PNC Financial Services Group, Inc. 472,031 27,222,028

42,551,879

Semiconductor Equipment–0.39%

KLA-Tencor Corp. 142,955 6,897,579

Semiconductors–0.75%

Intel Corp. 553,846 13,430,766

Soft Drinks–0.48%

PepsiCo, Inc. 129,128 8,567,643

Specialty Stores–0.78%

Staples, Inc. 1,010,573 14,036,859

Systems Software–2.36%

Microsoft Corp. 1,628,706 42,281,208

Wireless Telecommunication Services–1.00%

Vodafone Group PLC–ADR (United Kingdom) 640,564 17,955,009

Total Common Stocks & Other Equity Interests(Cost $1,928,432,278) 1,743,047,077

Money Market Funds–3.18%

Liquid Assets Portfolio–Institutional Class(c) 28,457,270 28,457,270

Premier Portfolio–Institutional Class(c) 28,457,270 28,457,270

Total Money Market Funds (Cost $56,914,540) 56,914,540

TOTAL INVESTMENTS–100.54% (Cost $1,985,346,818) 1,799,961,617

OTHER ASSETS LESS LIABILITIES–(0.54)% (9,576,236)

NET ASSETS–100.00% $1,790,385,381

Investment Abbreviations:

ADR – American Depositary Receipt

Notes to Schedule of Investments:(a) Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive

property and a service mark of MSCI Inc. and Standard & Poor’s.(b) Non-income producing security.(c) The money market fund and the Fund are affiliated by having the same investment adviser.



Statement of Assets and LiabilitiesDecember 31, 2011

Assets:

Investments, at value (Cost $1,928,432,278) $1,743,047,077

Investments in affiliated money market funds, at value and cost 56,914,540

Total investments, at value (Cost $1,985,346,818) 1,799,961,617

Receivable for:Investments sold 6,865,853

Fund shares sold 289,062

Dividends 3,932,271

Investment for trustee deferred compensation and retirement plans 16,694

Total assets 1,811,065,497

Liabilities:

Payable for:Investments purchased 7,420,350

Fund shares reacquired 10,361,827

Accrued fees to affiliates 2,778,630

Accrued other operating expenses 45,556

Trustee deferred compensation and retirement plans 73,753

Total liabilities 20,680,116

Net assets applicable to shares outstanding $1,790,385,381

Net assets consist of:

Shares of beneficial interest $2,435,550,019

Undistributed net investment income 28,583,510

Undistributed net realized gain (loss) (488,362,947)

Unrealized appreciation (depreciation) (185,385,201)

$1,790,385,381

Net Assets:

Series I $ 262,318,683

Series II $1,528,066,698

Shares outstanding, $0.001 par value per share, with anunlimited number of shares authorized:

Series I 23,169,949

Series II 135,455,799

Series I:Net asset value per share $ 11.32

Series II:Net asset value per share $ 11.28

Statement of OperationsFor the year ended December 31, 2011

Investment income:

Dividends (net of foreign withholding taxes of $642,147) $ 43,988,712

Dividends from affiliated money market funds 60,620

Total investment income 44,049,332

Expenses:

Advisory fees 10,548,579

Administrative services fees 4,748,244

Custodian fees 8,790

Distribution fees — Series II 4,011,282

Transfer agent fees 32,344

Trustees’ and officers’ fees and benefits 99,190

Other (447,755)

Total expenses 19,000,674

Less: Fees waived (3,452,557)

Net expenses 15,548,117

Net investment income 28,501,215

Net realized gain from investment securities (includes net gainsfrom securities sold to affiliates of $1,332,073) 77,412,661

Change in net unrealized appreciation (depreciation) of investmentsecurities (142,304,555)

Net realized and unrealized gain (loss) (64,891,894)

Net increase (decrease) in net assets resulting from operations $ (36,390,679)



Statement of Changes in Net AssetsFor the years ended December 31, 2011 and 2010

2011 2010

Operations:

Net investment income $ 28,501,215 $ 26,130,323

Net realized gain 77,412,661 53,876,954

Change in net unrealized appreciation (depreciation) (142,304,555) 169,893,792

Net increase (decrease) in net assets resulting from operations (36,390,679) 249,901,069

Distributions to shareholders from net investment income:

Series I (4,436,682) (193,186)

Series II (21,508,918) (2,889,112)

Total distributions from net investment income (25,945,600) (3,082,298)

Share transactions–net:

Series I 51,382,742 53,459,524

Series II (86,766,882) (725,552,245)

Net increase (decrease) in net assets resulting from share transactions (35,384,140) (672,092,721)

Net increase (decrease) in net assets (97,720,419) (425,273,950)

Net assets:

Beginning of year 1,888,105,800 2,313,379,750

End of year (includes undistributed net investment income of $28,583,510 and $25,786,214, respectively) $1,790,385,381 $1,888,105,800

Notes to Financial StatementsDecember 31, 2011

NOTE 1—Significant Accounting Policies

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

The Fund’s investment objective is to seek capital growth and income through investments in equity securities, including common stocks, preferred stocks andsecurities convertible into common and preferred stocks.

The Fund currently offers two classes of shares, Series I and Series II, both of which are offered to insurance company separate accounts funding variableannuity contracts and variable life insurance policies (“variable products”).

The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.A. Security Valuations — Securities, including restricted securities, are valued according to the following policy.

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

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


Debt obligations (including convertible bonds) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service.Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such asinstitution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate,maturity, individual trading characteristics and other market data. Debt securities are subject to interest rate and credit risks. In addition, all debt securitiesinvolve some risk of default with respect to interest and/or principal payments.

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

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

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

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

B. Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losseson 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.

The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Anyproceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) forinvestments 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 areduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) frominvestment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses)on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, theyreduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported inthe Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investmentincome reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.

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

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

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

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

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


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

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

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

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

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

Average Daily Net Assets Rate

First $500 million 0.60%

Over $500 million 0.55%

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

The Adviser has contractually agreed, through at least June 30, 2012, to waive advisory fees and/or reimburse expenses to the extent necessary to limit totalannual operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Series I shares to 0.62% and Series IIshares to 0.87% of average daily net assets. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses arenot taken into account, and could cause total annual operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above:(1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that theFund has incurred but did not actually pay because of an expense offset arrangement. Unless the Board of the Trustees and Invesco mutually agree to amend orcontinue the fee waiver agreement, it will terminate on June 30, 2012.

For the year ended December 31, 2011, the Adviser waived advisory fees of $3,452,557.Further, the Adviser has contractually agreed, through at least June 30, 2012, to waive the advisory fee payable by the Fund in an amount equal to 100% of

the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money marketfunds.

The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco a fee for costsincurred in providing accounting services and fund administrative services to the Fund and to reimburse Invesco for administrative services fees paid toinsurance companies that have agreed to provide services to the participants of separate accounts. These administrative services provided by the insurancecompanies may include, among other things: the printing of prospectuses, financial reports and proxy statements and the delivery of the same to existingparticipants; the maintenance of master accounts; the facilitation of purchases and redemptions requested by the participants; and the servicing of participants’accounts. Pursuant to such agreement, for the year ended December 31, 2011, Invesco was paid $403,421 for accounting and fund administrative services andreimbursed $4,344,823 for services provided by insurance companies.

The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed topay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course ofproviding such services. For the year ended December 31, 2011, expenses incurred under the agreement are shown in the Statement of Operations as transferagent fees.

The Trust has entered into a master distribution agreement with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Fund. The Trust hasadopted a plan pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Series II shares (the “Plan”). The Fund, pursuant to the Plan, pays IDIcompensation at the annual rate of 0.25% of the Fund’s average daily net assets of Series II shares. Of the Plan payments, up to 0.25% of the average daily netassets of the Series II shares may be paid to insurance companies who furnish continuing personal shareholder services to customers who purchase and ownSeries II shares of the Fund. For the year ended December 31, 2011, expenses incurred under the Plan are detailed in the Statement of Operations asdistribution fees.

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

NOTE 3—Additional Valuation Information

GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants atthe measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods giving the highest 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 tieredinto one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:

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

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

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

The following is a summary of the tiered valuation input levels, as of December 31, 2011. The level assigned to the securities valuations may not be anindication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in thefinancial statements may materially differ from the value received upon actual sale of those investments.

During the year ended December 31, 2011, there were no significant transfers between investment levels.

Level 1 Level 2 Level 3 Total

Equity Securities $1,785,482,519 $14,479,098 $— $1,799,961,617

NOTE 4—Security Transactions with Affiliated Funds

The Fund is permitted to purchase or sell securities from or to certain other Invesco Funds under specified conditions outlined in procedures adopted by theBoard of Trustees of the Trust. The procedures have been designed to ensure that any purchase or sale of securities by the Fund from or to another fund orportfolio that is or could be considered an affiliate by virtue of having a common investment adviser (or affiliated investment advisers), common Trustees and/orcommon officers complies with Rule 17a-7 of the 1940 Act. Further, as defined under the procedures, each transaction is effected at the current market price.Pursuant to these procedures, for the year ended December 31, 2011, the Fund engaged in securities purchases of $4,487,703 and securities sales of $3,290,556,which resulted in net realized gains of $1,332,073.

NOTE 5—Trustees’ and Officers’ Fees and Benefits

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

During the year ended December 31, 2011, the Fund paid legal fees of $3,481 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel tothe Independent Trustees. A partner of that firm is a Trustee of the Trust.

NOTE 6—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with State Street Bank and Trust Company, the custodian bank. Tocompensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodianbank 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 andInvesco, not to exceed the contractually agreed upon rate.

NOTE 7—Distributions to Shareholders and Tax Components of Net Assets

Tax Character of Distributions to Shareholders Paid During the Years Ended December 31, 2011 and 2010:

2011 2010

Ordinary income $25,945,600 $3,082,298


Tax Components of Net Assets at Period-End:

2011

Undistributed ordinary income $ 28,656,730

Net unrealized appreciation (depreciation) — investments (190,634,742)

Temporary book/tax differences (73,220)

Capital loss carryforward (483,113,406)

Shares of beneficial interest 2,435,550,019

Total net assets $1,790,385,381

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

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

Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount ofcapital loss carryforward actually available for the Fund to utilize. The Regulated Investment Company Modernization Act of 2010 (the “Act”) eliminated theeight-year carryover period for capital losses that arise in taxable years beginning after its enactment date of December 22, 2010. Consequently, these capitallosses can be carried forward for an unlimited period. However, capital losses with an expiration period may not be used to offset capital gains until all netcapital losses without an expiration date have been utilized. Additionally, post-enactment capital loss carryovers will retain their character as either short-term orlong-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforward in the future may be limitedunder the Internal Revenue Code and related regulations based on the results of future transactions. Under these limitation rules, the Fund is limited toutilizing 481,267,851 of capital loss carryforward in the fiscal year ending December 31, 2012.

The Fund utilized $72,219,646 of capital loss carryforward in the current period to offset net realized capital gain for federal income tax purposes. The Fundhas a capital loss carryforward as of December 31, 2011, which expires as follows:

Expiration Short-Term

Capital Loss Carryforward*

December 31, 2016 $142,015,578

December 31, 2017 341,097,828

$483,113,406

* Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code. To the extent that unrealized gains as of May 2,2011, the date of reorganization of Invesco Van Kampen V.I. Value Fund into the Fund are realized on securities held in each fund at such date of reorganization, the capital losscarryforward may be further limited for up to five years from the dates of the reorganization.

NOTE 8—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and soldby the Fund during the year ended December 31, 2011 was $452,447,329 and $445,575,544, respectively. Cost of investments on a tax basis includes theadjustments 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 $ 130,625,724

Aggregate unrealized (depreciation) of investment securities (321,260,466)

Net unrealized appreciation (depreciation) of investment securities $(190,634,742)

Cost of investments for tax purposes is $1,990,596,359.

NOTE 9—Reclassification of Permanent Differences

Primarily as a result of differing book/tax treatment of Convertible Preferred transactions and Fair Fund Payments, on December 31, 2011, undistributed netinvestment income was increased by $245,580 and undistributed net realized gain (loss) was decreased by $245,580. Further, as a result of tax deferrals acquiredin the reorganization of Invesco Van Kampen V.I. Value Fund into the Fund, undistributed net investment income was decreased by $3,899, undistributed netrealized gain was decreased by $6,326,412 and shares of beneficial interest increased by $6,330,311. These reclassifications had no effect on the net assets of theFund.


NOTE 10—Share Information

Shares Amount Shares Amount

2011(a) 2010

Year ended December 31,

Summary of Share Activity

Sold:Series I 6,303,011 $ 74,837,879 7,436,847 $ 85,067,642

Series II 10,321,141 116,328,044 7,860,095 81,647,180

Issued as reinvestment of dividends:Series I 363,662 4,436,682 18,487 193,186

Series II 1,767,372 21,508,918 277,000 2,889,112

Issued in connection with acquisitions:(b)

Series I 2,033,402 25,661,404 — —

Series II 1,023 12,889 — —

Reacquired:Series I (4,604,342) (53,553,223) (3,029,626) (31,801,304)

Series II (19,330,648) (224,616,733) (79,919,957) (810,088,537)

Net increase (decrease) in share activity (3,145,379) $ (35,384,140) (67,357,154) $(672,092,721)

(a) There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 69% of the outstanding shares of the Fund. TheFund and the Fund’s principal underwriter or adviser, are parties to participation agreements with these entities whereby these entities sell units of interest in separateaccounts funding variable products that are invested in the Fund. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered tobe related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as, securities brokerage, third partyrecord keeping and account servicing and administrative services. The Fund has no knowledge as to whether all or any portion of the shares owned of record by these entitiesare also owned beneficially.

(b) As of the opening of business on May 2, 2011 the Fund acquired all the net assets of Invesco Van Kampen V.I. Value Fund (the “Target Fund”) pursuant to a plan ofreorganization approved by the Trustees of the Fund on November 10, 2010 and by the shareholders of the Target fund on April 1, 2011. The acquisition was accomplished bya tax-free exchange of 2,034,425 shares of the Fund for 2,471,069 shares outstanding of the Target fund as of the close of business on April 29, 2011. Class I and Class IIshares of the Target fund were exchanged for Series I and Series II shares of the Fund, respectively, based on the relative net asset value of the Target fund to the net assetvalue of the Fund at the close of business on April 29, 2011. The Target fund’s net assets at that date of $25,674,293, including $4,451,624 of unrealized appreciation, werecombined with those of the Fund. The net assets of the Fund immediately before the acquisition were $2,060,987,398. The net assets of the Fund immediately following theacquisition were $2,086,661,691.The pro forma results of the operations for the year ended December 31, 2011, assuming the reorganization had been completed on January 1, 2011, the beginning of theannual reporting period, are as follows:Net investment income (loss) $ 28,597,812Net realized/unrealized gains (losses) (62,664,518)

Change in net assets resulting from operations $(34,066,706)The combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts ofrevenue and earnings of the Target fund that have been included in the Fund’s Statement of Operations since May 2, 2011.


NOTE 11—Financial Highlights

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

Net assetvalue,

beginningof period

Netinvestmentincome(a)

Net gains(losses) onsecurities

(bothrealized andunrealized)

Total frominvestmentoperations

Dividendsfrom net

investmentincome

Distributionsfrom netrealizedgains

TotalDistributions

Net assetvalue, endof period

TotalReturn

Net assets,end of period

(000s omitted)

Ratio ofexpensesto averagenet assets

with fee waiversand/or expenses

absorbed

Ratio ofexpenses

to average netassets without

fee waiversand/or expenses

absorbed

Ratio of netinvestment

incometo averagenet assets

Portfolioturnover(b)

Series I(c)

Year ended 12/31/11 $11.71 $0.20 $(0.40) $(0.20) $(0.19) $ — $(0.19) $11.32 (1.84)%(d) $ 262,319 0.62%(e) 0.80%(e) 1.75%(e) 24%Year ended 12/31/10 10.11 0.17 1.44 1.61 (0.01) 0.00 (0.01) 11.71 15.98(d) 223,354 0.61 0.73 1.58 21Year ended 12/31/09 8.25 0.16 2.12 2.28 (0.42) 0.00 (0.42) 10.11 28.78 148,060 0.62 0.62 1.91 27Year ended 12/31/08 13.86 0.26 (4.93) (4.67) (0.30) (0.64) (0.94) 8.25 (35.67) 192,548 0.60 0.60 2.38 38Year ended 12/31/07 14.75 0.30 (0.60) (0.30) (0.26) (0.33) (0.59) 13.86 (2.04) 309,646 0.59 0.59 2.03 25

Series II(c)

Year ended 12/31/11 11.67 0.17 (0.40) (0.23) (0.16) — (0.16) 11.28 (2.11)(d) 1,528,067 0.87(e) 1.05(e) 1.50(e) 24Year ended 12/31/10 10.10 0.14 1.44 1.58 (0.01) 0.00 (0.01) 11.67 15.70(d) 1,664,751 0.86 0.98 1.32 21Year ended 12/31/09 8.22 0.14 2.11 2.25 (0.37) 0.00 (0.37) 10.10 28.41(f) 2,165,319 0.87 0.87 1.63 27Year ended 12/31/08 13.80 0.23 (4.91) (4.68) (0.26) (0.64) (0.90) 8.22 (35.80)(f) 2,268,812 0.85 0.85 2.13 38Year ended 12/31/07 14.70 0.26 (0.59) (0.33) (0.24) (0.33) (0.57) 13.80 (2.33)(f) 3,521,509 0.84 0.84 1.78 25

(a) Calculated using average shares outstanding.(b) Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. For the period ending December 31, 2011, the portfolio turnover calculation

excludes the value of securities purchased of $21,084,025 and sold of $6,434,519 in the effort to realign the Fund’s portfolio holdings after the reorganization of Invesco Van Kampen V.I. ValueFund into the Fund.

(c) On June 1, 2010, the Class I and Class II shares of the predecessor fund were reorganized into Series I and Series II shares of the Fund, respectively.(d) Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns

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

(e) Ratios are based on average daily net assets (000’s) of $267,956 and $1,604,513 for Series I and Series II shares, respectively.(f) These returns include combined Rule 12b-1 fees and service fees of up to 0.25%.


Report of Independent Registered Public Accounting Firm

To the Board of Trustees of AIM Variable Insurance Funds (Invesco Variable Insurance Funds)and Shareholders of Invesco Van Kampen V.I. Comstock Fund:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements ofoperations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Invesco VanKampen V.I. Comstock Fund (one of the funds constituting AIM Variable Insurance Funds (Invesco Variable Insurance Funds), hereafter referred toas the “Fund”) at December 31, 2011, the results of its operations for the year then ended, and the changes in its net assets and the financialhighlights for each of the two years in the period then ended, in conformity with accounting principles generally accepted in the United States ofAmerica. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fund’smanagement; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of thesefinancial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards requirethat we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. Anaudit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accountingprinciples used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that ouraudits, which included confirmation of securities at December 31, 2011 by correspondence with the custodian and brokers, provide a reasonablebasis for our opinion. The financial highlights of the Fund for the periods ended December 31, 2009 and prior were audited by other independentauditors whose report dated February 19, 2010 expressed an unqualified opinion on those financial statements.

PRICEWATERHOUSECOOPERS LLP

February 14, 2012Houston, Texas


Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur ongoing costs, including management fees; distribution and/or service fees (12b-1); and other Fund expenses. Thisexample is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investingin other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period July 1, 2011through December 31, 2011.

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

Actual expenses

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

Hypothetical example for comparison purposes

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

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

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

Class

BeginningAccount Value(07/01/11)

EndingAccount Value(12/31/11)1

ExpensesPaid During

Period2

EndingAccount Value(12/31/11)

ExpensesPaid During

Period2

AnnualizedExpense

Ratio

ACTUAL

HYPOTHETICAL(5% annual return before

expenses)

Series I $1,000.00 $928.60 $3.01 $1,022.08 $3.16 0.62%

Series II 1,000.00 927.60 4.23 1,020.82 4.43 0.871 The actual ending account value is based on the actual total return of the Fund for the period July 1, 2011 through December 31, 2011, after actual expenses and will differ from the hypothetical

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


Tax Information

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

The following distribution information is being provided as required by the Internal Revenue Code or to meet a specific state’s requirement.The Fund designates the following amounts or, if subsequently determined to be different, the maximum amount allowable for its fiscal year ended December 31,

2011:

Federal and State Income Tax

Corporate Dividends Received Deduction* 100.00%

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


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

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

Trustee and/or Officer Since

Principal Occupation(s)During Past 5 Years

Number of Fundsin Fund ComplexOverseen by Trustee

Other Directorship(s)Held by Trustee

Interested Persons

Martin L. Flanagan1 — 1960Trustee

2007 Executive Director, Chief Executive Officer and President, Invesco Ltd. (ultimate parentof Invesco and a global investment management firm); Advisor to the Board, InvescoAdvisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.); Trustee, TheInvesco Funds; Vice Chair, Investment Company Institute; and Member of ExecutiveBoard, SMU Cox School of Business

Formerly: Chairman, Invesco Advisers, Inc. (registered investment adviser); Director,Chairman, Chief Executive Officer and President, IVZ Inc. (holding company), INVESCOGroup Services, Inc. (service provider) and Invesco North American Holdings, Inc.(holding company); Director, Chief Executive Officer and President, Invesco HoldingCompany Limited (parent of Invesco and a global investment management firm);Director, Invesco Ltd.; Chairman, Investment Company Institute and President, Co-ChiefExecutive Officer, Co-President, Chief Operating Officer and Chief Financial Officer,Franklin Resources, Inc. (global investment management organization)

140 None

Philip A. Taylor2 — 1954Trustee, President and PrincipalExecutive Officer

2006 Head of North American Retail and Senior Managing Director, Invesco Ltd.; Director, Co-Chairman, Co-President and Co-Chief Executive Officer, Invesco Advisers, Inc. (formerlyknown as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director,Chairman, Chief Executive Officer and President, Invesco Management Group, Inc.(formerly Invesco Aim Management Group, Inc.) (financial services holding company);Director and President, INVESCO Funds Group, Inc. (registered investment adviser andregistered transfer agent); Director and Chairman, Invesco Investment Services, Inc.(formerly known as Invesco Aim Investment Services, Inc.) (registered transfer agent)and IVZ Distributors, Inc. (formerly known as INVESCO Distributors, Inc.) (registeredbroker dealer); Director, President and Chairman, Invesco Inc. (holding company) andInvesco Canada Holdings Inc. (holding company); Chief Executive Officer, InvescoCorporate Class Inc. (corporate mutual fund company) and Invesco Canada Fund Inc.(corporate mutual fund company); Director, Chairman and Chief Executive Officer,Invesco Canada Ltd. (formerly known as Invesco Trimark Ltd./Invesco Trimark Ltèe)(registered investment adviser and registered transfer agent); Trustee, President andPrincipal Executive Officer, The Invesco Funds (other than AIM Treasurer’s Series Trust(Invesco Treasurer’s Series Trust) and Short-Term Investments Trust); Trustee andExecutive Vice President, The Invesco Funds (AIM Treasurer’s Series Trust (InvescoTreasurer’s Series Trust) and Short-Term Investments Trust only); Director, InvescoInvestment Advisers LLC (formerly known as Van Kampen Asset Management); Director,Chief Executive Officer and President, Van Kampen Exchange Corp.

140 None

Formerly: Director and Chairman, Van Kampen Investor Services Inc.: Director, ChiefExecutive Officer and President, 1371 Preferred Inc. (holding company); and VanKampen Investments Inc.; Director and President, AIM GP Canada Inc. (general partnerfor limited partnerships); and Van Kampen Advisors, Inc.; Director and Chief ExecutiveOfficer, Invesco Trimark Dealer Inc. (registered broker dealer); Director, InvescoDistributors, Inc. (formerly known as Invesco Aim Distributors, Inc.) (registered brokerdealer); Manager, Invesco PowerShares Capital Management LLC; Director, ChiefExecutive Officer and President, Invesco Advisers, Inc.; Director, Chairman, ChiefExecutive Officer and President, Invesco Aim Capital Management, Inc.; President,Invesco Trimark Dealer Inc. and Invesco Trimark Ltd./Invesco Trimark Ltèe; Directorand President, AIM Trimark Corporate Class Inc. and AIM Trimark Canada Fund Inc.;Senior Managing Director, Invesco Holding Company Limited; Trustee and ExecutiveVice President, Tax-Free Investments Trust; Director and Chairman, Fund ManagementCompany (former registered broker dealer); President and Principal Executive Officer,The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust),Short-Term Investments Trust and Tax-Free Investments Trust only); President, AIMTrimark Global Fund Inc. and AIM Trimark Canada Fund Inc.

Wayne W. Whalen3 — 1939Trustee

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

158 Director of theAbraham LincolnPresidential LibraryFoundation

Independent Trustees

Bruce L. Crockett — 1944Trustee and Chair

1993 Chairman, Crockett Technology Associates (technology consulting company) 140 ACE Limited(insurance company);and InvestmentCompany Institute

Formerly: Director, Captaris (unified messaging provider); Director, President and ChiefExecutive Officer COMSAT Corporation; and Chairman, Board of Governors of INTELSAT(international communications company)

1 Mr. Flanagan is considered an interested person of the Trust because he is an officer of the adviser to the Trust, and an officer and a director of Invesco Ltd., ultimate parent of the adviser to theTrust.

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

legal services as legal counsel to such Funds in the Fund Complex.







Independent Trustees—(continued)

David C. Arch — 1945Trustee

2010 Chairman and Chief Executive Officer of Blistex Inc., a consumer health care productsmanufacturer.

158 Member of theHeartland AllianceAdvisory Board, anonprofit organizationserving human needsbased in Chicago.Board member of theIllinois Manufacturers’Association. Memberof the Board ofVisitors, Institute forthe Humanities,University of Michigan

Frank S. Bayley — 1939Trustee

2001 Retired

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

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

140 Director andChairman, C.D.Stimson Company (areal estate investmentcompany)

James T. Bunch — 1942Trustee

2004 Managing Member, Grumman Hill Group LLC (family office private equitymanagement)

Formerly: Founder, Green, Manning & Bunch Ltd. (investment banking firm)(1988-2010); Executive Committee, United States Golf Association; and Director, Policy Studies,Inc. and Van Gilder Insurance Corporation

140 Vice Chairman, Boardof Governors, WesternGolf Association/EvansScholars Foundationand Director, DenverFilm Society

Rodney F. Dammeyer — 1940Trustee

2010 President of CAC, LLC, a private company offering capital investment and managementadvisory 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 GroupCorporate Investments. Prior to 1995, Vice Chairman of Anixter International. Prior to1985, experience includes Senior Vice President and Chief Financial Officer of HouseholdInternational, Inc., Executive Vice President and Chief Financial Officer of NorthwestIndustries, Inc. and Partner of Arthur Andersen & Co.

158 Director of QuidelCorporation andStericycle, Inc. Priorto May 2008, Trusteeof The ScrippsResearch Institute.Prior to February2008, Director ofVentana MedicalSystems, Inc. Prior toApril 2007, Director ofGATX Corporation.Prior to April 2004,Director ofTheraSense, Inc.

Albert R. Dowden — 1941Trustee

2000 Director of a number of public and private business corporations, including the BossGroup, Ltd. (private investment and management); Reich & Tang Funds (5 portfolios)(registered investment company); and Homeowners of America Holding Corporation/Homeowners of America Insurance Company (property casualty company)

Formerly: Director, Continental Energy Services, LLC (oil and gas pipeline service);Director, CompuDyne Corporation (provider of product and services to the public securitymarket) and Director, Annuity and Life Re (Holdings), Ltd. (reinsurance company);Director, President and Chief Executive Officer, Volvo Group North America, Inc.; SeniorVice President, AB Volvo; Director of various public and private corporations; Chairman,DHJ Media, Inc.; Director Magellan Insurance Company; and Director, The HertzCorporation, Genmar Corporation (boat manufacturer), National Media Corporation;Advisory Board of Rotary Power International (designer, manufacturer, and seller ofrotary power engines); and Chairman, Cortland Trust, Inc. (registered investmentcompany)

140 Board of Nature’sSunshine Products,Inc.

Jack M. Fields — 1952Trustee

1997 Chief Executive Officer, Twenty First Century Group, Inc. (government affairs company);and Owner and Chief Executive Officer, Dos Angelos Ranch, L.P. (cattle, hunting,corporate entertainment), Discovery Global Education Fund (non-profit) and CrossTimbers Quail Research Ranch (non-profit)

Formerly: Chief Executive Officer, Texana Timber LP (sustainable forestry company) andmember of the U.S. House of Representatives

140 Administaff

Carl Frischling — 1937Trustee

1993 Partner, law firm of Kramer Levin Naftalis and Frankel LLP 140 Director, Reich &Tang Funds (16portfolios)


Trustees and Officers—(continued)

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






Independent Trustees—(continued)

Prema Mathai-Davis — 1950Trustee

1998 Retired

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

140 None

Larry Soll — 1942Trustee

2004 Retired

Formerly, Chairman, Chief Executive Officer and President, Synergen Corp. (abiotechnology company)

140 None

Hugo F. Sonnenschein — 1940Trustee

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

158 Trustee of theUniversity ofRochester and amember of itsinvestment committee.Member of theNational Academy ofSciences, theAmericanPhilosophical Societyand a fellow of theAmerican Academy ofArts and Sciences

Raymond Stickel, Jr. — 1944Trustee

2005 Retired

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

140 None

Other Officers

Russell C. Burk — 1958Senior Vice President and SeniorOfficer

2005 Senior Vice President and Senior Officer, The Invesco Funds N/A N/A

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

2006 Director, Senior Vice President, Secretary and General Counsel, Invesco ManagementGroup, Inc. (formerly known as Invesco Aim Management Group, Inc.) and VanKampen Exchange Corp.; Senior Vice President, Invesco Advisers, Inc. (formerly knownas Invesco Institutional (N.A.), Inc.) (registered investment adviser); Senior VicePresident and Secretary, Invesco Distributors, Inc. (formerly known as Invesco AimDistributors, 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, Invesco Investment Advisers LLC (formerly known asVan Kampen Asset Management); Secretary and General Counsel, Van Kampen FundsInc. and Chief Legal Officer, PowerShares Exchange-Traded Fund Trust, PowerSharesExchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust andPowerShares Actively Managed Exchange-Traded Fund Trust

Formerly: Director and Secretary, Van Kampen Advisors Inc.; Director Vice President,Secretary and General Counsel Van Kampen Investor Services Inc.; Director, InvescoDistributors, Inc. (formerly known as Invesco Aim Distributors, Inc.); Director, SeniorVice President, General Counsel and Secretary, Invesco Advisers, Inc.; and Van KampenInvestments Inc.; Director, Vice President and Secretary, Fund Management Company;Director, Senior Vice President, Secretary, General Counsel and Vice President, InvescoAim Capital Management, Inc.; Chief Operating Officer and General Counsel, LibertyRidge 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 (anadministrator) and Old Mutual Shareholder Services (a shareholder servicing center);Executive Vice President, General Counsel and Secretary, Old Mutual Capital, Inc. (aninvestment adviser); and Vice President and Secretary, Old Mutual Advisors Funds (aninvestment company)

N/A N/A

Lisa O. Brinkley — 1959Vice President

2004 Global Compliance Director, Invesco Ltd.; Chief Compliance Officer, Invesco InvestmentServices, Inc.(formerly known as Invesco Aim Investment Services, Inc.); and VicePresident, The Invesco Funds

Formerly: Chief Compliance Officer, Invesco Distributors, Inc. (formerly known asInvesco Aim Distributors, Inc.) and Van Kampen Investor Services Inc.; Senior VicePresident, Invesco Management Group, Inc.; Senior Vice President and Chief ComplianceOfficer, Invesco Advisers, Inc. and The Invesco Funds; Vice President and ChiefCompliance Officer, Invesco Aim Capital Management, Inc. and Invesco Distributors,Inc.; Vice President, Invesco Investment Services, Inc. and Fund Management Company

N/A N/A









Other Officers—(continued)

Sheri Morris — 1964Vice President, Treasurer andPrincipal Financial Officer

1999 Vice President, Treasurer and Principal Financial Officer, The Invesco Funds; VicePresident, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.)(registered investment adviser).

Formerly: Treasurer, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust and PowerSharesActively Managed Exchange-Traded Fund Trust, 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 VicePresident, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and InvescoAim Private Asset Management, Inc.

N/A N/A

Karen Dunn Kelley — 1960Vice President

1993 Head of Invesco’s World Wide Fixed Income and Cash Management Group; Senior VicePresident, Invesco Management Group, Inc. (formerly known as Invesco AimManagement Group, Inc.) and Invesco Advisers, Inc. (formerly known as InvescoInstitutional (N.A.), Inc.) (registered investment adviser); Executive Vice President,Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.); Director,Invesco Mortgage Capital Inc.; Vice President, The Invesco Funds (other than AIMTreasurer’s Series Trust (Invesco Treasurer’s Series Trust) and Short-Term InvestmentsTrust); and President and Principal Executive Officer, The Invesco Funds (AIMTreasurer’s Series Trust (Invesco Treasurer’s Series Trust) and Short-Term InvestmentsTrust only).

Formerly: Senior Vice President, Van Kampen Investments Inc.; Vice President, InvescoAdvisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.); Director of CashManagement and Senior Vice President, Invesco Advisers, Inc. and Invesco Aim CapitalManagement, 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, InvescoAim Capital Management, Inc.; Director of Cash Management, Senior Vice President,and Vice President, Invesco Advisers, Inc. and The Invesco Funds (AIM Treasurer’s SeriesTrust (Invesco Treasurer’s Series Trust), Short-Term Investments Trust and Tax-FreeInvestments Trust only)

N/A N/A

Yinka Akinsola — 1977Anti-Money LaunderingCompliance Officer

2011 Anti-Money Laundering Compliance Officer, Invesco Advisers, Inc. (formerly known asInvesco 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.), Invesco ManagementGroup, Inc., The Invesco Funds, Invesco Van Kampen Closed-End Funds, Van KampenExchange Corp. and Van Kampen Funds Inc.

N/A N/A

Todd L. Spillane — 1958Chief Compliance Officer

2006 Senior Vice President, Invesco Management Group, Inc. (formerly known as Invesco AimManagement Group, Inc.) and Van Kampen Exchange Corp.; Senior Vice President andChief Compliance Officer, Invesco Advisers, Inc. (registered investment adviser) (formerlyknown as Invesco Institutional (N.A.), Inc.); Chief Compliance Officer, The InvescoFunds, INVESCO Private Capital Investments, Inc. (holding company) and InvescoPrivate Capital, Inc. (registered investment adviser); Vice President, Invesco Distributors,Inc. (formerly known as Invesco Aim Distributors, Inc.) and Invesco InvestmentServices, Inc. (formerly known as Invesco Aim Investment Services, Inc.).

Formerly: Chief Compliance Officer, Invesco Van Kampen Closed-End Funds PowerSharesExchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerSharesIndia Exchange-Traded Fund Trust, and PowerShares Actively Managed Exchange-TradedFund Trust; Senior Vice President, Van Kampen Investments Inc.; Senior Vice Presidentand Chief Compliance Officer, Invesco Advisers, Inc. and Invesco Aim CapitalManagement, Inc.; Chief Compliance Officer, Invesco Global Asset Management (N.A.),Inc., Invesco Senior Secured Management, Inc. (registered investment adviser) and VanKampen Investor Services Inc.; Vice President, Invesco Aim Capital Management, Inc.and Fund Management Company

N/A N/A

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

Office of the Fund11 Greenway Plaza, Suite 2500Houston, TX 77046-1173

Investment AdviserInvesco Advisers, Inc.1555 Peachtree Street, N.E.Atlanta, GA 30309

DistributorInvesco Distributors, Inc.11 Greenway Plaza, Suite 2500Houston, TX 77046-1173

AuditorsPricewaterhouseCoopers LLP1201 Louisiana Street, Suite 2900Houston, TX 77002-5678

Counsel to the FundStradley Ronon Stevens & Young, LLP2600 One Commerce SquarePhiladelphia, PA 19103

Counsel to the IndependentTrusteesKramer, Levin, Naftalis & Frankel LLP1177 Avenue of the AmericasNew York, NY 10036-2714

Transfer AgentInvesco Investment Services, Inc.11 Greenway Plaza, Suite 2500Houston, TX77046-1173

CustodianState Street Bank and Trust Company225 FranklinBoston, MA 02110-2801




Invesco Van Kampen V.I. Comstock Fund · 2020. 5. 2. · Invesco Van Kampen V.I. Comstock Fund...

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