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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM N-CSR

 

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-05597

 

 

Invesco Municipal Income Opportunities Trust

(Exact name of registrant as specified in charter)

 

 

1555 Peachtree Street, N.E., Suite 1800 Atlanta, Georgia 30309

(Address of principal executive offices) (Zip code)

 

 

Sheri Morris 1555 Peachtree Street, N.E., Suite 1800 Atlanta, Georgia 30309

(Name and address of agent for service)

 

 

Registrant’s telephone number, including area code: (713) 626-1919

Date of fiscal year end: 2/28

Date of reporting period: 2/28/18

 

 

 

Item 1. Report to Stockholders.

  

 

     

LOGO

 

    Annual Report to Shareholders

 

      February 28, 2018      
  

 

     
   Invesco Municipal Income Opportunities Trust

 

NYSE: OIA

  

 

 

   

 

LOGO

 

Letters to Shareholders

 

LOGO

         Philip Taylor

  

Dear Shareholders:

This annual report includes information about your Trust, including performance data and a complete list of its investments as of the close of the reporting period. Inside is a discussion of how your Trust was managed and the factors that affected its performance during the reporting period.

    For much of the reporting period, major US stock market indexes rose to record highs – but in early 2018, volatility returned to the US stock and bond markets. Investors worried about how rising interest rates might affect economic growth; those concerns caused the US stock market, which many investors believed had risen too far, too fast, to pull back. Throughout the reporting period, economic data remained generally positive, corporate earnings remained strong and consumer sentiment remained positive, particularly after passage of legislation cutting personal and corporate tax rates in December. The US economy expanded throughout the reporting period, and the first signs of rising inflation appeared. In response, the US Federal

Reserve raised interest rates three times, and the tone of its statements grew more hawkish regarding potential rate increases in 2018.

    Short-term market volatility can prompt some investors to abandon their investment plans – and can cause others to settle for whatever returns the market has to offer. The investment professionals at Invesco, in contrast, invest with high conviction. This means that, no matter the asset class or the strategy, each investment team has a passion to exceed. We want to help investors achieve better outcomes, such as seeking higher returns, helping mitigate risk and generating income. Of course, investing with high conviction can’t guarantee a profit or ensure success; no investment strategy can. To learn more about how we invest with high conviction, visit invesco.com/HighConviction.

    You, too, can invest with high conviction by maintaining a long-term investment perspective and by working with your financial adviser on a regular basis. During periods of short-term market volatility or uncertainty, your financial adviser can keep you focused on your long-term investment goals – a new home, a child’s college education or a secure retirement. He or she also can share research about the economy, the markets and individual investment options.

Visit our website for more information on your investments

Our website, invesco.com/us, offers a wide range of market insights and investment perspectives. On the website, you’ll find detailed information about your Trust’s performance and portfolio holdings. In addition to the resources accessible on our website and through our mobile app, you can obtain timely updates to help you stay informed about the markets and the economy by connecting with Invesco on Twitter, LinkedIn or Facebook. You can access our blog at blog.invesco.us.com. Our goal is to provide you the information you want, when and where you want it.

    Finally, I’m pleased to share with you Invesco’s commitment to both the Principles for Responsible Investment and to considering environmental, social and governance issues in our robust investment process. I invite you to learn more at invesco.com/esg.

Have questions?

For questions about your account, contact an Invesco client services representative at 800 341 2929. For Invesco-related questions or comments, please email me directly at phil@invesco.com.

    All of us at Invesco look forward to serving your investment management needs. Thank you for investing with us.

Sincerely,

 

   LOGO

Philip Taylor

Senior Managing Director, Invesco Ltd.

 

2                             Invesco Municipal Income Opportunities Trust

 

 

LOGO

Bruce Crockett

     

Dear Fellow Shareholders:

Among the many important lessons I’ve learned in more than 40 years in a variety of business endeavors is the value of a trusted advocate.

    As independent chair of the Invesco Funds Board, I can assure you that the members of the Board are strong advocates for the interests of investors in Invesco’s mutual funds. We work hard to represent your interests through oversight of the quality of the investment management services your funds receive and other matters important to your investment, including but not limited to:

∎ Monitoring how the portfolio management teams of the Invesco funds are performing in light of changing economic and market conditions.

∎ Assessing each portfolio management team’s investment performance within the context of the fund’s investment strategy.

∎ Monitoring for potential conflicts of interests that may impact the nature of the services that your funds receive.

    We believe one of the most important services we provide our fund shareholders is the annual review of the funds’ advisory and sub-advisory contracts with Invesco Advisers and its affiliates. This review is required by the Investment Company Act of 1940 and focuses on the nature and quality of the services Invesco provides as the adviser to the Invesco funds and the reasonableness of the fees that it charges for those services. Each year, we spend months carefully reviewing information received from Invesco and a variety of independent sources, such as performance and fee data prepared by Lipper, Inc. (a subsidiary of Broadridge Financial Solutions, Inc.), an independent, third-party firm widely recognized as a leader in its field. We also meet with our independent legal counsel and other independent advisers to review and help us assess the information that we have received. Our goal is to assure that you receive quality investment management services for a reasonable fee.

    I trust the measures outlined above provide assurance that you have a worthy advocate when it comes to choosing the Invesco Funds.

    As always, please contact me at bruce@brucecrockett.com with any questions or concerns you may have. On behalf of the Board, we look forward to continuing to represent your interests and serving your needs.

Sincerely,

 

 

LOGO

Bruce L. Crockett

Independent Chair

Invesco Funds Board of Trustees

 

3                             Invesco Municipal Income Opportunities Trust

 

Management’s Discussion of Trust Performance

 

Performance summary

    

For the fiscal year ended February 28, 2018, Invesco Municipal Income Opportunities Trust (the Trust), at net asset value (NAV), outperformed its style-specific benchmark, the Custom Invesco Municipal Income Opportunities Trust Index. The Trust’s return can be calculated based on either the market price or the NAV of its shares. NAV per share is determined by dividing the value of the Trust’s portfolio securities, cash and other assets, less all liabilities and preferred shares, by the total number of common shares outstanding. Market price reflects the supply and demand for Trust shares. As a result, the two returns can differ, as they did during the fiscal year.

 

Performance

Total returns, 2/28/17 to 2/28/18

 

Trust at NAV

   5.19%  

Trust at Market Value

   4.64     

S&P Municipal Bond High Yield Index▼ (Broad Market Index)

   2.25     

Custom Invesco Municipal Income Opportunities Trust Index⬛ (Style-Specific Index)

   2.27     

Lipper Closed-End High Yield Municipal Index◆ (Peer Group Index)

   4,70     
     

Market Price Premium to NAV as of 2/28/18

   1.62     

Source(s): ▼FactSet Research Systems Inc.; ⬛Invesco, FactSet Research Systems Inc.; ◆Lipper Inc.

  

The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Investment return, NAV and common share market price will fluctuate so that you may have a gain or loss when you sell shares. Please visit invesco.com/us for the most recent month-end performance. Performance figures reflect Trust expenses, the reinvestment of distributions (if any) and changes in NAV for performance based on NAV and changes in market price for performance based on market price.

    Since the Trust is a closed-end management investment company, shares of the Trust may trade at a discount or premium from the NAV. This characteristic is separate and distinct from the risk that NAV could decrease as a result of investment activities and may be a greater risk to investors expecting to sell their shares after a short time. The Trust cannot predict whether shares will trade at, above or below NAV. The Trust should not be viewed as a vehicle for trading purposes. It is designed primarily for risk-tolerant long-term investors.

 

 

How we invest

The Trust seeks to provide investors with a high level of current income exempt from federal income tax.

    We seek to achieve the Trust’s investment objective by investing primarily in municipal securities rated BB or better by Standard & Poor’s or Ba or better by Moody’s, or if not rated, securities we determine to be of comparable quality at the time of investment.† Municipal securities include municipal bonds, municipal notes and municipal commercial paper.

From time to time, we may invest in municipal securities that pay interest subject to the federal alternative minimum tax.

    We employ a bottom-up, research-driven approach to identify securities that have attractive risk-reward characteristics for the sectors in which we invest.

    We also integrate macroeconomic analysis and forecasting into our evaluation and ranking of various sectors and individual securities. Finally, we employ leverage in an effort to enhance the Trust’s income and total return.

 

 

    Sell decisions generally are based on:

∎ A deterioration or likely deterioration of an individual issuer’s capacity to meet its debt obligations on a timely basis.
∎ A deterioration or likely deterioration of the broader fundamentals of a particular industry or sector.
∎ Opportunities in the secondary or primary market to exchange into a security with better relative value.

 

 

Market conditions and your Trust

Although shifting expectations about potential federal tax reform unsettled fixed income investors during the fourth quarter of 2017, municipal bonds enjoyed another year of positive performance in calendar year 2017, with investment grade municipals returning 5.45% and high yield municipals returning 9.69%.1 For the first two months of 2018 however, performance weakened, with investment grade municipals returning -1.47% and high yield municipals returning -0.87%.1

    Flows into the municipal bond asset class were positive for 10 of the 12 months covered in this report. The first negative month of flows was in December 2017. Flows were positive in January 2018, but turned negative again in February 2018.2

    The broad municipal bond market held up well in the aftermath of hurricanes Harvey, Irma and Maria – which caused Texas, Florida, the commonwealth of Puerto Rico and the US Virgin Islands to suffer staggering financial losses. The credit quality of each issuer before the storms was the most significant factor in the performance of its municipal debt. Puerto Rico and the US Virgin Islands have been struggling with deteriorating economic conditions for some time. In contrast, Texas and Florida are in

 

Portfolio Composition

    

By credit sector, based on total investments

Revenue Bonds

   76.8% 

Pre-refunded Bonds

   13.1    

General Obligation Bonds

   9.9    

Other

     0.2    

 Top Five Debt Holdings

 1.   New York (City of) Transitional Finance Authority; Subseries 2012 F-1    1.9% 
 2.   Triborough Bridge & Tunnel Authority; Series 2017 A    1.4
 3.   California (State of) Educational Facilities Authority (Stanford University); Series 2014 U-6    1.1
 4.   California (State of) Educational Facilities Authority (Stanford University); Series 2012 U-2    1.1
 5.   New Orleans (City of) Aviation Board (North Terminal); Series 2017 B    1.0
    Total Net Assets Applicable to Common Shares    $351.8 million 
    Total Number of Holdings    335 

The Trust’s holdings are subject to change, and there is no assurance that the Trust will continue to hold any particular security.

 

 

4                             Invesco Municipal Income Opportunities Trust

relatively stronger economic and financial positions.

    Long standing budget standoffs in Illinois and New Jersey ended in 2017, with both states passing budgets within days of each other. This served to stabilize the states’ fiscal conditions and, therefore, their credit ratings, which in turn enhanced the performance of their municipal bonds.

    The most significant event impacting the municipal bond market during the fiscal year was passage of the Tax Cuts and Jobs Act (TCJA), which President Donald Trump signed into law in December 2017. As of January 1, 2018, individual tax rates are lower and the corporate tax rate was cut from 35% to 21%.3 In our opinion, the changes in individual income tax rates are not sufficient to negatively impact individual investors’ demand for municipal securities. Historically, lowering individual tax rates has had minimal impact on individual demand for municipal bonds but may reduce corporate demand. The TCJA eliminated the tax exemption for advance refunding bonds; we believe this may decrease municipal supply by 10% to 20% per year going forward.

    Municipal supply was strong through 2017, with $436 billion in new issuance – just 2% less than seen in 2016.4 Many issuers rushed to market with advance refundings previously planned for 2018. There was also a surge in private activity bond issuance until it became clear that the tax exemption for such securities would be preserved. New issuance totaled $62.5 billion in December 2017, making it a record month for issuance.4 This rush to market explains the extremely low volume in new issuance seen in January and February 2018.

    During the fiscal year, preference for revenue bonds over general obligation bonds contributed to the Trust’s performance relative to its style-specific benchmark. Security selection in higher-coupon (5.00%+) bonds also contributed to the Trust’s relative performance. On a state level, security selection in Texas holdings contributed to the Trust’s relative performance. Furthermore, the Trust’s continued very minimal exposure to beleaguered Puerto Rico issues compared to its style-specific benchmark was another contributing factor to the Trust’s relative performance.

    Overweight exposure to pre-refunded bonds and security selection in the tobacco sector detracted from the Trust’s performance relative to its style-specific benchmark during the fiscal year.

Security selection among bonds rated just below investment grade had a slightly negative effect on the Fund’s relative return. On a state level, issues domiciled in Illinois detracted from relative performance.

    One important factor affecting the Trust’s performance relative to its style-specific benchmark was the use of leverage. The Trust uses leverage because we believe that, over time, leveraging can provide opportunities for additional income and total return for common shareholders. However, the use of leverage also can expose common shareholders to additional volatility. For example, if the prices of securities held by a trust decline, the negative effect of these valuation changes on common-share NAV and total return is magnified by the use of leverage. Conversely, leverage may enhance common-share returns during periods when the prices of securities held by a trust generally are rising.

    Over the fiscal year, leverage contributed to the Trust’s performance relative to its style-specific benchmark. The Trust achieved a leveraged position through the use of inverse floating rate securities and variable rate muni term preferred (VMTP) shares. Inverse floating rate securities or tender option bonds (TOBs) are instruments that have an inverse relationship to a referenced interest rate. VMTPs are a variable rate form of preferred stock with a mandatory redemption date. Inverse floating rate securities and VMTPs can be an efficient way to manage duration, yield curve exposure and credit exposure, potentially enhancing yield. At the close of the fiscal year, leverage accounted for 22% of the Trust’s total assets and it contributed to returns. For more information about the Trust’s use of leverage, see the Notes to Financial Statements later in this report.

    We wish to remind you that the Trust is subject to interest rate risk, meaning when interest rates rise, the value of fixed income securities tends to fall. This risk may be greater in the current market environment because interest rates are at or near historic lows. The degree to which the value of fixed income securities may decline due to rising interest rates may vary depending on the speed and magnitude of the increase in interest rates, as well as individual security characteristics such as price, maturity, duration and coupon and market forces such as supply and demand for similar securities. We are monitoring interest rates, and the market, economic and geopolitical factors that may impact the direction, speed and magnitude

of changes to interest rates across the maturity spectrum, including the potential impact of monetary policy changes by the US Federal Reserve and certain foreign central banks. If interest rates rise faster than expected, markets may experience increased volatility, which may affect the value and/or liquidity of certain of the Trust’s investments and/or the market price of the Trust’s common shares.

    Thank you for investing in Invesco Municipal Income Opportunities Trust and for sharing our long-term investment horizon.

 

1  Source:  FactSet Systems Inc.
2  Source:  Strategic Insight
3  Source:  Internal Revenue Service
4  Source:  The Bond Buyer

 

† A credit rating is an assessment provided by a nationally recognized statistical rating organization (NRSRO) of the creditworthiness of an issuer with respect to debt obligations, including specific securities, money market instruments or other debts. Ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest); ratings are subject to change without notice. For more information on rating methodologies, please visit the following NRSRO websites: standardandpoors.com and select “Understanding Ratings” under Rating Resources on the homepage; moodys.com and select “Rating Methodologies” under Research and Ratings on the homepage; and fitchratings.com and select “Ratings Definitions” on the homepage.

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

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

 

 

LOGO

 

 

Mark Paris

Portfolio Manager and Chief Investment Officer and Head of Municipal Strategies for Invesco Fixed Income, is manager

of Invesco Municipal Income Opportunities Trust. He joined Invesco in 2010. Mr. Paris was associated with the Trust’s previous investment adviser or its investment advisory affiliates in an investment management capacity from 2002 to 2010 and began managing the Trust in 2009. He earned a BBA in finance from Baruch College – The City University of New York.
 

 

5                             Invesco Municipal Income Opportunities Trust

 

 

LOGO

 

Jack Connelly

Portfolio Manager, is manager of Invesco Municipal Income Opportunities Trust. He joined Invesco in 2016 and began managing

the Trust in 2016. Mr. Connelly was employed at Raymond James & Associates in an investment management capacity from 1994 to 2015. Prior to 2012, he served as director of the municipal high yield trading group. He earned a BA in philosophy from Wheaton College and masters degrees from the University of Rhode Island and Yale University.

LOGO

 

Tim O’Reilly

Portfolio Manager, is manager of Invesco Municipal Income Opportunities Trust. He joined Invesco in 2010.

Mr. O’Reilly was associated with the Trust’s previous investment adviser or its investment advisory affiliates in an investment management capacity from 2001 to 2010 and began managing the Trust in 2016. Mr. O’Reilly earned a BS in finance from Eastern Illinois University and an MBA in finance from the University of Illinois at Chicago.

LOGO

 

James Phillips

Portfolio Manager, is manager of Invesco Municipal Income Opportunities Trust. He joined Invesco in 2010.

Mr. Phillips was associated with the Trust’s previous investment adviser or its investment advisory affiliates in an investment management capacity from 1991 to 2010 and began managing the Trust in 2009. He earned a BA in American literature from Empire State College, the independent study division of the State University of New York, and an MBA in finance from the University at Albany, State University of New York.

LOGO

 

Robert Stryker

Chartered Financial Analyst, Portfolio Manager, is manager of Invesco Municipal Income Opportunities Trust. He

joined Invesco in 2010. Mr. Stryker was associated with the Trust’s previous investment adviser or its investment advisory affiliates in an investment management capacity from 1994 to 2010 and began managing the Trust in 2015. He earned a BS in finance from the University of Illinois, Chicago.

LOGO

 

Julius Williams

Portfolio Manager, is manager of Invesco Municipal Income Opportunities Trust. He joined Invesco in 2010.

Mr. Williams was associated with the Trust’s previous investment adviser or its investment advisory affiliates in an investment management capacity from 2000 to 2010 and began managing the Trust in 2015. He earned a BA in economics and sociology and a Master of Education degree in educational psychology from the University of Virginia.

 

 

6                             Invesco Municipal Income Opportunities Trust

 

Supplemental Information

Invesco Municipal Income Opportunities Trust’s investment objective is to provide a high level of current income which is exempt from federal income tax.

∎   Unless otherwise stated, information presented in this report is as of February 28, 2018, and is based on total net assets applicable to common shares.
∎   Unless otherwise noted, all data provided by Invesco.
∎   To access your Trust’s reports, visit invesco.com/fundreports.

 

 

 

About indexes used in this report

∎   The S&P Municipal Bond High Yield Index is an unmanaged index considered representative of municipal bonds that are not rated or are rated below investment grade.
∎   The Custom Invesco Municipal Income Opportunities Trust Index is designed to measure the performance of a hypothetical allocation, which consists of 80% weight in the S&P Municipal Bond High Yield Index and 20% weight in the S&P Municipal Bond Investment Grade Index.
∎   The Lipper Closed-End High Yield Municipal Index is an unmanaged index considered representative of closed-end high-yield municipal funds tracked by Lipper. These funds typically invest 50% or more of their assets in municipal debt issues rated BBB or lower.
∎   The S&P Municipal Bond Investment Grade Index consists of bonds in the S&P Municipal Bond Index that are rated investment grade by Standard & Poor’s, Moody’s and/or Fitch.
∎   The Trust is not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Trust may deviate significantly from the performance of the index(es).
∎   A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

 

Other information

∎   The returns shown in management’s discussion of Trust performance are based on net asset values (NAVs) calculated for shareholder transactions. Generally accepted accounting principles require adjustments to be made to the net assets of the Trust at period end for financial reporting purposes, and as such, the NAVs for shareholder transactions and the returns based on those NAVs may differ from the NAVs and returns reported in the Financial Highlights.
 

 

 

 

NOT FDIC INSURED  |  MAY LOSE VALUE  |  NO BANK GUARANTEE

  

 

7                             Invesco Municipal Income Opportunities Trust

 

Dividend Reinvestment Plan

The dividend reinvestment plan (the Plan) offers you a prompt and simple way to reinvest your dividends and capital gains distributions (Distributions) into additional shares of your Invesco closed-end Trust (the Trust). Under the Plan, the money you earn from Distributions will be reinvested automatically in more shares of the Trust, allowing you to potentially increase your investment over time. All shareholders in the Trust are automatically enrolled in the Plan when shares are purchased.

 

 

Plan benefits

∎   Add to your account:

You may increase your shares in your Trust easily and automatically with the Plan.

∎   Low transaction costs:

Shareholders who participate in the Plan may be able to buy shares at below-market prices when the Trust is trading at a premium to its net asset value (NAV). In addition, transaction costs are low because when new shares are issued by the Trust, there is no brokerage fee, and when shares are bought in blocks on the open market, the per share fee is shared among all participants.

∎   Convenience:

You will receive a detailed account statement from Computershare Trust Company, N.A. (the Agent), which administers the Plan. The statement shows your total Distributions, date of investment, shares acquired, and price per share, as well as the total number of shares in your reinvestment account. You can also access your account at invesco.com/closed-end.

∎   Safekeeping:

The Agent will hold the shares it has acquired for you in safekeeping.

 

 

Who can participate in the Plan

If you own shares in your own name, your purchase will automatically enroll you in the Plan. If your shares are held in “street name” – in the name of your brokerage firm, bank, or other financial institution – you must instruct that entity to participate on your behalf. If they are unable to participate on your behalf, you may request that they reregister your shares in your own name so that you may enroll in the Plan.

 

 

How to enroll

If you haven’t participated in the Plan in the past or chose to opt out, you are still eligible to participate. Enroll by visiting invesco.com/closed-end, by calling toll-free 800 341 2929 or by notifying us in writing at Invesco Closed-End Funds, Computershare Trust Company, N.A., P.O. Box 505000, Louisville, KY 40233-5000. If you are writing to us, please include the Trust name and account number and ensure that all shareholders listed on the account sign these written instructions. Your participation in the Plan will begin with the next Distribution payable after the Agent receives your authorization, as long as they receive it before the “record date,” which is generally 10 business days before the Distribution is paid. If your authorization arrives after such record date, your participation in the Plan will begin with the following Distribution.

 

How the Plan works

If you choose to participate in the Plan, your Distributions will be promptly reinvested for you, automatically increasing your shares. If the Trust is trading at a share price that is equal to its NAV, you’ll pay that amount for your reinvested shares. However, if the Trust is trading above or below NAV, the price is determined by one of two ways:

  1. Premium: If the Trust is trading at a premium – a market price that is higher than its NAV – you’ll pay either the NAV or 95 percent of the market price, whichever is greater. When the Trust trades at a premium, you may pay less for your reinvested shares than an investor purchasing shares on the stock exchange. Keep in mind, a portion of your price reduction may be taxable because you are receiving shares at less than market price.
  2. Discount: If the Trust is trading at a discount – a market price that is lower than its NAV – you’ll pay the market price for your reinvested shares.

 

 

Costs of the Plan

There is no direct charge to you for reinvesting Distributions because the Plan’s fees are paid by the Trust. If the Trust is trading at or above its NAV, your new shares are issued directly by the Trust and there are no brokerage charges or fees. However, if the Trust is trading at a discount, the shares are purchased on the open market, and you will pay your portion of any per share fees. These per share fees are typically less than the standard brokerage charges for individual transactions because shares are purchased for all participants in blocks, resulting in lower fees for each individual participant. Any service or per share fees are added to the purchase price. Per share fees include any applicable brokerage commissions the Agent is required to pay.

 

 

Tax implications

The automatic reinvestment of Distributions does not relieve you of any income tax that may be due on Distributions. You will receive tax information annually to help you prepare your federal income tax return.

    Invesco does not offer tax advice. The tax information contained herein is general and is not exhaustive by nature. It was not intended or written to be used, and it cannot be used, by any taxpayer for avoiding penalties that may be imposed on the taxpayer under US federal tax laws. Federal and state tax laws are complex and constantly changing. Shareholders should always consult a legal or tax adviser for information concerning their individual situation.

 

How to withdraw from the Plan

You may withdraw from the Plan at any time by calling 800 341 2929, by visiting invesco.com/closed-end or by writing to Invesco Closed-End Funds, Computershare Trust Company, N.A., P.O. Box 505000, Louisville, KY 40233-5000. Simply indicate that you would like to withdraw from the Plan, and be sure to include your Trust name and account number. Also, ensure that all shareholders listed on the account sign these written instructions. If you withdraw, you have three options with regard to the shares held in the Plan:

  1. If you opt to continue to hold your non-certificated whole shares (Investment Plan Book Shares), they will be held by the Agent electronically as Direct Registration Book-Shares (Book-Entry Shares) and fractional shares will be sold at the then-current market price. Proceeds will be sent via check to your address of record after deducting applicable fees, including per share fees such as any applicable brokerage commissions the Agent is required to pay.
  2. If you opt to sell your shares through the Agent, we will sell all full and fractional shares and send the proceeds via check to your address of record after deducting a $2.50 service fee and per share fees. Per share fees include any applicable brokerage commissions the Agent is required to pay.
  3. You may sell your shares through your financial adviser through the Direct Registration System (DRS). DRS is a service within the securities industry that allows Trust shares to be held in your name in electronic format. You retain full ownership of your shares, without having to hold a share certificate. You should contact your financial adviser to learn more about any restrictions or fees that may apply.

The Trust and Computershare Trust Company, N.A. may amend or terminate the Plan at any time. Participants will receive at least 30 days written notice before the effective date of any amendment. In the case of termination, Participants will receive at least 30 days written notice before the record date for the payment of any such Distributions by the Trust. In the case of amendment or termination necessary or appropriate to comply with applicable law or the rules and policies of the Securities and Exchange Commission or any other regulatory authority, such written notice will not be required.

    To obtain a complete copy of the current Dividend Reinvestment Plan, please call our Client Services department at 800 341 2929 or visit invesco.com/closed-end.

 

 

8                             Invesco Municipal Income Opportunities Trust

Schedule of Investments

February 28, 2018

 

     Interest
Rate		     Maturity
Date		      Principal
Amount
(000)		      Value  

Municipal Obligations–127.29%(a)

          
Alabama–2.70%          

Birmingham (City of) Special Care Facilities Financing Authority (Methodist Home for the Aging); Series 2016, RB

     6.00 %      06/01/2050      $ 1,000      $ 1,110,320  

Birmingham (City of) Water Works Board; Series 2015 A, Ref. Water RB(b)

     5.00 %      01/01/2042        2,250        2,503,935  

Huntsville (City of) Special Care Facilities Financing Authority (Redstone Village); Series 2007, Retirement Facility RB

     5.50 %      01/01/2043        925        734,385  

Jefferson (County of);

          

Series 2013 C, Sr. Lien Sewer Revenue Conv. CAB Wts.(INS–AGM)(c)(d)

     6.60 %      10/01/2042        1,300        1,114,282  

Series 2013 F, Sub. Lien Sewer Revenue Conv. CAB Wts.(c)

     7.75 %      10/01/2046        1,700        1,407,753  

Series 2013-F, Sub. Lien Sewer Revenue Conv. CAB Wts.(c)

     7.90 %      10/01/2050        1,000        826,280  

Lower Alabama Gas District (The); Series 2016 A, Gas Project RB(b)

     5.00 %      09/01/2046        1,500        1,805,730  
                                9,502,685  
American Samoa–0.20%          

American Samoa (Territory of) Economic Development Authority; Series 2015 A, Ref. RB

     6.63 %      09/01/2035        750        718,702  
Arizona–3.17%          

Arizona (State of) Industrial Development Authority (Kaizen Education Foundation); Series 2016, Education RB(e)

     5.75 %      07/01/2036        1,500        1,574,715  

Glendale (City of) Industrial Development Authority (The Beatitudes Campus); Series 2017, Ref. RB

     5.00 %      11/15/2040        1,500        1,541,700  

Phoenix (City of) Industrial Development Authority (Choice Academies); Series 2012, Education RB

     5.38 %      09/01/2032        1,000        1,029,930  

Phoenix (City of) Industrial Development Authority (Great Hearts Academies); Series 2012, Education RB(f)(g)

     6.40 %      07/01/2021        600        688,608  

Phoenix (City of) Industrial Development Authority (Legacy Traditional Schools); Series 2014 A, Education Facility RB(e)

     6.75 %      07/01/2044        750        828,105  

Phoenix (City of) Industrial Development Authority (Phoenix Collegiate Academy); Series 2012, Education RB

     5.63 %      07/01/2042        1,000        1,037,380  

Pima (County of) Industrial Development Authority (American Leadership Academy); Series 2017, Education Facility RB(e)

     5.00 %      06/15/2052        500        485,125  

Pima (County of) Industrial Development Authority (Coral Academy Science); Series 2008 A, Education Facilities RB

     7.25 %      12/01/2038        1,000        1,007,340  

Pima (County of) Industrial Development Authority (Edkey Charter Schools); Series 2013, Ref. Education Facility RB

     6.00 %      07/01/2048        1,000        890,380  

Tempe (City of) Industrial Development Authority (Mirabella at ASU); Series 2017 A, RB(e)

     6.13 %      10/01/2052        1,000        1,022,100  

Town of Florence, Inc. (The) Industrial Development Authority (Legacy Traditional School — Queen Creek and Casa Grande Campuses); Series 2013, Education RB

     6.00 %      07/01/2043        1,000        1,058,180  
                                11,163,563  
California–15.44%          

ABAG Finance Authority for Non-profit Corps. (Episcopal Senior Communities); Series 2012 A, Ref. RB

     5.00 %      07/01/2047        1,000        1,063,460  

Alhambra (City of) (Atherton Baptist Homes); Series 2010 A, RB(f)(g)

     7.63 %      01/01/2020        1,000        1,108,810  

Bay Area Toll Authority (San Francisco Bay Area); Series 2017 F-1, Toll Bridge RB(b)

     5.00 %      04/01/2056        2,250        2,523,555  

California (State of) Educational Facilities Authority (Stanford University);

          

Series 2010, RB(b)

     5.25 %      04/01/2040        500        652,015  

Series 2012 U-2, Ref. RB(b)

     5.00 %      10/01/2032        3,000        3,760,980  

Series 2014 U-6, RB(b)

     5.00 %      05/01/2045        3,000        3,871,860  

California (State of) Municipal Finance Authority (Caritas Affordable Housing, Inc.); Series 2014 B, Sub. Mobile Home Park RB

     5.88 %      08/15/2049        1,250        1,359,100  

California (State of) Municipal Finance Authority (High Tech High-Media Arts); Series 2008 A, Educational Facility RB(e)(f)(g)

     5.88 %      07/02/2018        695        705,432  

California (State of) Municipal Finance Authority (Santa Rosa Academy); Series 2012 A, Charter School Lease RB

     6.00 %      07/01/2042        1,000        1,068,490  

 

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

 

9                         Invesco Municipal Income Opportunities Trust

     Interest
Rate		     Maturity
Date		      Principal
Amount
(000)		      Value  
California–(continued)          

California (State of) Pollution Control Finance Authority; Series 2012, Water Furnishing RB(e)(h)

     5.00 %      07/01/2037      $ 1,000      $ 1,068,450  

California (State of) Pollution Control Financing Authority (Aemerge Redpack Services LLC); Series 2016, Solid Waste Disposal RB(e)(h)

     7.00 %      12/01/2027        1,000        978,500  

California (State of) School Finance Authority (New Designs Charter School); Series 2012, Educational Facilities RB

     5.50 %      06/01/2042        695        716,399  

California (State of) Statewide Communities Development Authority (California Baptist University); Series 2011, RB(f)(g)

     7.25 %      11/01/2021        1,000        1,192,760  

California (State of) Statewide Communities Development Authority (Creative Child Care & Team); Series 2015, School Facilities RB (Acquired 11/03/2015; Cost $755,000)(e)

     6.75 %      06/01/2045        755        770,492  

California (State of) Statewide Communities Development Authority (Loma Linda University Medical Center); Series 2016 A, RB(e)

     5.25 %      12/01/2056        2,000        2,137,780  

California (State of) Statewide Finance Authority (Pooled Tobacco Securitization);

 

Series 2002, Tobacco Settlement Asset-Backed RB

     6.00 %      05/01/2043        750        750,165  

Series 2006 A, Tobacco Settlement CAB Turbo RB(i)

     0.00 %      06/01/2046        10,000        1,554,300  

California County Tobacco Securitization Agency (The) (Sonoma County Securitization Corp.); Series 2005, Ref. Tobacco Settlement Asset-Backed RB

     5.13 %      06/01/2038        1,000        1,000,020  

Daly City (City of) Housing Development Finance Agency (Franciscan Mobile Home Park Acquisition); Series 2007 C, Ref. Third Tier Mobile Home Park RB

     6.50 %      12/15/2047        925        926,286  

Foothill-Eastern Transportation Corridor Agency; Series 2014 C, Ref. Jr. Lien Toll Road RB

     6.50 %      01/15/2043        1,000        1,178,200  

Golden State Tobacco Securitization Corp.;

 

Series 2007, Sr. Tobacco Settlement Asset-Backed RB

     5.75 %      06/01/2047        2,355        2,372,662  

Series 2007 A-1, Sr. Tobacco Settlement Asset-Backed RB

     5.00 %      06/01/2033        980        981,215  

Series 2007 A-1, Sr. Tobacco Settlement Asset-Backed RB

     5.13 %      06/01/2047        2,500        2,493,750  

Series 2007 B, First Sub. Tobacco Settlement Asset-Backed CAB RB(i)

     0.00 %      06/01/2047        10,000        1,366,300  

Inland Empire Tobacco Securitization Authority; Series 2007 C-1, Asset-Backed Tobacco Settlement CAB Turbo RB(i)

     0.00 %      06/01/2036        10,000        3,031,000  

National City (City of) Community Development Commission (National City Redevelopment); Series 2011, Tax Allocation RB(f)(g)

     7.00 %      08/01/2021        1,000        1,174,450  

Palm Springs (City of) (Palm Springs International Airport); Series 2006, Ref. Sub. Airport Passenger Facility Charge RB(h)

     5.55 %      07/01/2028        360        356,350  

Poway Unified School District (School Facilities Improvement); Series 2011, Unlimited Tax CAB GO Bonds(i)

     0.00 %      08/01/2039        8,000        3,447,440  

Riverside (County of) Redevelopment Agency (Mid-County Redevelopment Project Area); Series 2010 C, Tax Allocation RB(f)(g)

     6.25 %      10/01/2018        1,000        1,028,820  

Riverside (County of) Transportation Commission; Series 2013 A, Sr. Lien Toll RB

     5.75 %      06/01/2048        1,000        1,111,500  

San Buenaventura (City of) (Community Memorial Health System); Series 2011, RB

     7.50 %      12/01/2041        1,000        1,119,840  

San Francisco (City & County of) Redevelopment Financing Authority (Mission Bay South Redevelopment); Series 2011 D, Tax Allocation RB(f)(g)

     7.00 %      02/01/2021        1,400        1,612,632  

San Francisco (City & County of) Successor Agency to the Redevelopment Agency Community Facilities District No. 6 (Mission Bay South Public Improvements); Series 2013 C, Special Tax CAB RB(i)

     0.00 %      08/01/2037        5,000        1,803,400  

Silicon Valley Tobacco Securitization Authority (Santa Clara); Series 2007 A, Tobacco Settlement CAB Turbo RB(i)

     0.00 %      06/01/2036        2,000        710,860  

Southern California Logistics Airport Authority; Series 2008 A, Tax Allocation CAB RB(i)

     0.00 %      12/01/2044        18,085        533,146  

Southern California Tobacco Securitization Authority (San Diego County Tobacco Asset Securitization Corp.); Series 2006 A-1, Sr. Tobacco Settlement Asset-Backed RB

     5.13 %      06/01/2046        1,000        1,001,720  

Union City (City of) Community Redevelopment Agency (Community Redevelopment); Series 2011, Sub. Lien Tax Allocation RB(f)(g)

     6.88 %      12/01/2021        1,500        1,777,590  
                                54,309,729  
Colorado–7.10%          

Banning Lewis Ranch Metropolitan District No. 3; Series 2015 A, Limited Tax GO Bonds

     6.13 %      12/01/2045        750        720,480  

Brighton Crossing Metropolitan District No. 4; Series 2017 A, Limited Tax GO Bonds

     5.00 %      12/01/2037        525        538,177  

Broomfield (City and County of) Midcities Metropolitan District No. 2; Series 2016 B, Ref. Sub. Special Limited Tax GO Bonds

     7.75 %      12/15/2046        1,945        1,926,445  

Canyons Metropolitan District No. 5; Series 2017 A, Ref. Limited Tax GO Bonds

     6.13 %      12/01/2047        1,000        1,006,930  

 

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

 

10                         Invesco Municipal Income Opportunities Trust

     Interest
Rate		     Maturity
Date		      Principal
Amount
(000)		      Value  
Colorado–(continued)          

Colorado (State of) Health Facilities Authority (SCL Health System); Series 2013 A, RB(b)

     5.50 %      01/01/2035      $ 3,000      $ 3,416,430  

Colorado (State of) Health Facilities Authority (Sunny Vista Living Center); Series 2015 A, Ref. RB(e)

     6.25 %      12/01/2050        1,000        1,051,190  

Colorado (State of) Health Facilities Authority (Total Longterm Care National Obligated Group); Series 2010 A, RB(f)(g)

     6.25 %      11/15/2020        1,000        1,118,820  

Colorado (State of) Regional Transportation District (Denver Transit Partners Eagle P3); Series 2010, Private Activity RB

     6.00 %      01/15/2041        1,000        1,083,850  

Fossil Ridge Metropolitan District No. 1; Series 2010, Ref. Tax Supported Limited Tax GO Bonds

     7.25 %      12/01/2040        500        526,785  

Gardens on Havana Metropolitan District No. 3 (The); Series 2017 B, Sub. Special RB

     7.75 %      12/15/2047        700        713,769  

Leyden Rock Metropolitan District No. 10; Series 2016 B, Sub. Limited Tax GO Bonds

     7.25 %      12/15/2045        500        489,325  

North Range Metropolitan District No. 2 Series 2017 A, Ref. Limited Tax GO Bonds

     5.75 %      12/01/2047        1,000        1,004,240  

Solaris Metropolitan District No.3 Series 2016 B, Ref. Sub. Limited Tax GO Bonds

     7.00 %      12/15/2046        1,000        981,650  

Southlands Metropolitan District No. 1; Series 2017 A-1, Ref. Unlimited Tax GO Bonds

     5.00 %      12/01/2047        2,085        2,213,728  

St. Vrain Lakes Metropolitan District No. 2; Series 2017 A, Sr. Limited Tax GO Bonds

     5.00 %      12/01/2037        1,500        1,498,110  

Sterling Ranch Community Authority Board; Series 2017 A, Sr. Supported and Special RB

     5.00 %      12/01/2038        2,000        2,024,980  

Tallyns Reach Metropolitan District No. 3; Series 2016 A, Sub. Limited Tax GO Bonds

     6.75 %      11/01/2038        1,220        1,216,730  

University of Colorado; Series 2013 A, Enterprise RB(b)(f)(g)

     5.00 %      06/01/2023        3,000        3,438,060  
                                24,969,699  
Connecticut–0.42%          

Georgetown (City of) Special Taxing District; Series 2006 A, Unlimited Tax GO Bonds (Acquired 11/16/2006; Cost $2,955,000)(e)(j)

     5.13 %      10/01/2036        2,955        945,600  

Hamden (Town of) (Whitney Center); Series 2009 A, Facility RB

     7.75 %      01/01/2043        500        520,075  
                                1,465,675  
District of Columbia–1.66%          

District of Columbia (Cesar Chavez Charter School); Series 2011, RB

     7.88 %      11/15/2040        1,000        1,041,210  

District of Columbia;

          

Series 2009 B, Ref. Sec. Income Tax RB(b)

     5.00 %      12/01/2025        1,335        1,413,578  

Series 2014 C, Unlimited Tax GO Bonds(b)

     5.00 %      06/01/2038        3,000        3,379,410  
                                5,834,198  
Florida–7.89%          

Alachua (County of) (North Florida Retirement Village, Inc.);

          

Series 2007, IDR

     5.88 %      11/15/2036        2,000        2,003,420  

Series 2007, IDR

     5.88 %      11/15/2042        1,100        1,101,859  

Alachua (County of) Health Facilities Authority (East Ridge Retirement Village, Inc.); Series 2014, RB

     6.38 %      11/15/2049        900        970,191  

Alachua (County of) Health Facilities Authority (Terraces at Bonita Springs); Series 2011 A, RB

     8.13 %      11/15/2046        1,000        1,122,990  

Capital Trust Agency Inc. (Tallahassee Tapestry); Series 2015, First Mortgage RB(e)

     7.00 %      12/01/2045        1,000        1,048,500  

Collier (County of) Industrial Development Authority (The Arlington of Naples); Series 2014 A, Continuing Care Community RB(e)

     8.25 %      05/15/2049        1,200        1,334,028  

Florida (State of) Mid-Bay Bridge Authority; Series 2011 A, Springing Lien RB(f)(g)

     7.25 %      10/01/2021        1,000        1,181,270  

Florida Development Finance Corp. (Brightline Passenger Rail); Series 2017, Surface Transportation Facilitiy RB(e)(f)(h)

     5.63 %      01/01/2028        2,000        2,062,460  

Florida Development Finance Corp. (Renaissance Charter School, Inc.);

          

Series 2012 A, Educational Facilities RB

     6.13 %      06/15/2043        1,000        1,043,920  

Series 2015, Educational Facilities RB(e)

     6.13 %      06/15/2046        1,000        1,038,220  

Lee (County of) Industrial Development Authority (Cypress Cove Healthpark); Series 2012, Ref. RB

     5.75 %      10/01/2042        1,000        1,074,280  

Lee (County of) Industrial Development Authority (Lee County Community Charter Schools, LLC); Series 2012, IDR

     5.75 %      06/15/2042        1,200        1,199,880  

Miami-Dade (County of); Series 2009, Sub. Special Obligation CAB RB(i)

     0.00 %      10/01/2042        7,900        2,664,986  

Orlando (City of) Greater Orlando Aviation Authority; Series 2017 A, Priority Sub. Airport Facilities
RB(b)(h)

     5.00 %      10/01/2047        3,000        3,327,420  

Orlando (City of); Series 2014 A, Contract Tourist Development Tax Payments RB(b)(f)(g)

     5.00 %      05/01/2024        3,000        3,491,040  

 

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

 

11                         Invesco Municipal Income Opportunities Trust

     Interest
Rate		     Maturity
Date		      Principal
Amount
(000)		      Value  
Florida–(continued)          

Palm Beach (County of) Health Facilities Authority (Sinai Residences of Boca Raton); Series 2014 A, RB

     7.50 %      06/01/2049      $ 750      $ 873,195  

Seminole (County of) Industrial Development Authority (Legacy Pointe at UCF); Series 2016 A, RB(e)

     10.00 %      12/28/2021        1,000        1,119,840  

St. Johns (County of) Industrial Development Authority (Presbyterian Retirement Communities); Series 2010 A, RB(f)(g)

     6.00 %      08/01/2020        1,000        1,102,510  
                                27,760,009  
Georgia–1.71%          

Americus (City of) & Sumter (County of) Hospital Authority (Magnolia Manor Obligated Group); Series 2013 A, Ref. RB

     6.38 %      05/15/2043        1,000        1,097,200  

Atlanta (City of) (Beltline); Series 2009 B, Tax Allocation RB(f)(g)

     7.38 %      01/01/2019        1,000        1,048,800  

Atlanta (City of); Series 2015, Ref. Water & Wastewater RB(b)

     5.00 %      11/01/2040        2,490        2,808,795  

DeKalb (County of) Hospital Authority (DeKalb Medical Center, Inc.); Series 2010, RAC

     6.13 %      09/01/2040        1,000        1,071,900  
                                6,026,695  
Hawaii–0.59%          

Hawaii (State of) Department of Budget & Finance (15 Craigside); Series 2009 A, Special Purpose Senior Living RB(f)(g)

     8.75 %      11/15/2019        905        1,008,360  

Hawaii (State of) Department of Budget & Finance (Hawaiian Electric Co., Inc. & Subsidiary); Series 2009, Special Purpose RB

     6.50 %      07/01/2039        1,000        1,056,580  
                                2,064,940  
Idaho–0.79%          

Idaho (State of) Health Facilities Authority (Terraces of Boise); Series 2014 A, RB

     8.13 %      10/01/2049        1,000        1,142,640  

Idaho (State of) Health Facilities Authority (Valley Vista Care Corp.); Series 2017 A, Ref. RB

     5.25 %      11/15/2047        1,600        1,645,200  
                                2,787,840  
Illinois–13.62%          

Bolingbrook (Village of) Special Services Area No. 1 (Forest City); Series 2005, Special Tax RB

     5.90 %      03/01/2027        1,750        1,751,522  

Bolingbrook (Village of); Series 2005, Sales Tax RB

     6.25 %      01/01/2024        1,455        1,441,236  

Chicago (City of) (Lakeshore East); Series 2003, Special Assessment Improvement RB

     6.75 %      12/01/2032        1,860        1,870,267  

Chicago (City of) Board of Education; Series 2017 H, Dedicated Unlimited Tax GO Bonds

     5.00 %      12/01/2046        1,500        1,501,035  

Chicago (City of) Metropolitan Water Reclamation District;

          

Series 2015 A, Unlimited Tax GO Green Bonds(b)

     5.00 %      12/01/2044        3,000        3,308,010  

Series 2016 C, Unlimited Tax GO Green Bonds(b)

     5.00 %      12/01/2045        2,250        2,470,275  

Chicago (City of) Transit Authority; Series 2014, Sales Tax Receipts RB(b)

     5.25 %      12/01/2049        3,000        3,312,930  

Chicago (City of);

          

Series 2007 F, Ref. Unlimited Tax GO Bonds

     5.50 %      01/01/2042        1,250        1,318,212  

Series 2009 C, Ref. Unlimited Tax CAB GO Bonds(i)

     0.00 %      01/01/2031        5,020        2,673,903  

Series 2011, Tax Increment Allocation Revenue COP

     7.13 %      05/01/2025        1,030        1,039,898  

Series 2017 A, Ref. Unlimited Tax GO Bonds

     6.00 %      01/01/2038        1,500        1,703,325  

Hillside (Village of) (Mannheim Redevelopment); Series 2008, Sr. Lien Tax Increment Allocation RB

     7.00 %      01/01/2028        1,000        1,020,930  

Illinois (State of) Finance Authority (Collegiate Housing Foundation — DeKalb II, LLC — Northern Illinois University); Series 2011, Student Housing RB

     6.88 %      10/01/2043        1,000        1,093,240  

Illinois (State of) Finance Authority (Intrinsic Schools — Belmont School); Series 2015, Charter School RB(e)

     6.00 %      12/01/2045        1,000        1,018,470  

Illinois (State of) Finance Authority (Luther Oaks);

          

Series 2006 A, RB

     5.70 %      08/15/2028        500        500,280  

Series 2006 A, RB

     6.00 %      08/15/2039        1,500        1,500,600  

Illinois (State of) Finance Authority (Lutheran Home & Services); Series 2012, Ref. RB

     5.75 %      05/15/2046        1,000        1,052,780  

Illinois (State of) Finance Authority (Park Place of Elmhurst);

          

Series 2016, RB

     2.00 %      05/15/2055        150        8,222  

Series 2016 A, RB

     6.24 %      05/15/2038        140        135,922  

Series 2016 A, RB

     6.33 %      05/15/2048        500        496,610  

Series 2016 A, RB

     6.44 %      05/15/2055        850        846,592  

 

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

 

12                         Invesco Municipal Income Opportunities Trust

     Interest
Rate		     Maturity
Date		      Principal
Amount
(000)		      Value  
Illinois–(continued)          

Illinois (State of) Finance Authority (Peace Village); Series 2013, RB

     7.00 %      08/15/2043      $ 1,000      $ 1,062,560  

Illinois (State of) Finance Authority (Plymouth Place); Series 2013, Ref. RB

     6.00 %      05/15/2043        1,000        1,100,870  

Illinois (State of) Finance Authority (Rogers Park Montessori School); Series 2014, Ref. Sr. Educational Facilities RB

     6.13 %      02/01/2045        500        524,040  

Illinois (State of) Finance Authority (United Neighborhood Organization Charter School Network, Inc.);

          

Series 2011, Ref. Charter School RB

     6.88 %      10/01/2031        435        464,110  

Series 2011, Ref. Charter School RB

     7.13 %      10/01/2041        500        522,520  

Illinois (State of) Finance Authority (University of Chicago); Series 2013 A, RB(b)

     5.25 %      10/01/2052        3,000        3,330,750  

Illinois (State of) Finance Authority (Villa St. Benedict); Series 2015, Ref. RB

     6.38 %      11/15/2043        775        853,810  

Illinois (State of) Metropolitan Pier & Exposition Authority (McCormick Place Expansion);

          

Series 2017 B, Ref. Conv. CAB RB(c)

     4.70 %      12/15/2037        1,000        539,430  

Series 2017 B, Ref. Conv. CAB RB(c)

     4.95 %      12/15/2047        1,900        992,180  

Illinois (State of); Series 2017 D, Unlimited Tax GO Bonds(b)

     5.00 %      11/01/2023        3,000        3,153,660  

Long Grove (Village of) (Sunset Grove); Series 2010, Limited Obligation Tax Increment Allocation RB

     7.50 %      01/01/2030        870        884,268  

Pingree Grove (Village of) (Cambridge Lakes Learning Center); Series 2011, RB(f)(g)

     8.50 %      06/01/2021        1,000        1,207,540  

United City of Yorkville (City of) Special Service Area No. 2006-113 (Cannonball/Beecher Road); Series 2007, Special Tax RB

     5.75 %      03/01/2028        795        795,223  

Upper Illinois River Valley Development Authority (Pleasant View Luther Home); Series 2010, RB

     7.38 %      11/15/2045        1,000        1,045,610  

Will (County of) & Kankakee (City of) Regional Development Authority (Senior Estates Supportive Living); Series 2007, MFH RB(h)

     7.00 %      12/01/2042        1,375        1,382,617  
                                47,923,447  
Indiana–1.71%          

Allen (County of) Economic Development (StoryPoint Fort Wayne); Series 2017, RB(e)

     6.88 %      01/15/2052        250        264,148  

Carmel (City of) (Barrington Carmel); Series 2012 A, RB

     7.13 %      11/15/2047        515        553,393  

Crown Point (City of) (Wittenberg Village); Series 2009 A, Economic Development RB

     8.00 %      11/15/2039        1,000        1,049,940  

Indiana (State of) Finance Authority (Indiana University Health Obligated Group); Series 2015 A, Ref. Hospital RB(b)

     5.00 %      12/01/2040        2,250        2,501,213  

Indianapolis (City of) (Ritter Affordable Assisted Living); Series 2014, MFH RB

     6.90 %      12/01/2033        500        471,150  

Valparaiso (City of) (Pratt Paper, LLC); Series 2013, Exempt Facilities RB(h)

     7.00 %      01/01/2044        1,000        1,181,930  
                                6,021,774  
Iowa–3.22%          

Cass (County of) (Cass County Memorial Hospital); Series 2010 A, Hospital RB(k)

     7.25 %      06/01/2035        1,000        1,068,170  

Iowa (State of) Finance Authority (Alcoa Inc.); Series 2012, Midwestern Disaster Area RB

     4.75 %      08/01/2042        1,000        1,024,340  

Iowa (State of) Finance Authority (Iowa Fertilizer Co.); Series 2013, Midwestern Disaster Area RB

     5.25 %      12/01/2025        3,000        3,190,650  

Iowa (State of) Finance Authority (Madrid Home); Series 2007, Ref. Health Care Facility RB

     5.90 %      11/15/2037        750        749,940  

Iowa (State of) Tobacco Settlement Authority;

          

Series 2005 B, Asset-Backed RB

     5.60 %      06/01/2034        700        707,224  

Series 2005 C, Asset-Backed RB

     5.38 %      06/01/2038        1,125        1,127,745  

Series 2005 C, Asset-Backed RB

     5.63 %      06/01/2046        1,000        999,980  

Series 2005 D, Asset-Backed CAB RB(i)

     0.00 %      06/01/2046        8,400        1,367,772  

Series 2005 E, Asset-Backed CAB RB(i)

     0.00 %      06/01/2046        10,000        1,096,700  
                                11,332,521  
Kansas–0.61%          

Wichita (City of) (Larksfield Place); Series 2013 III, Ref. Health Care Facilities & Improvement RB

     7.38 %      12/15/2043        1,000        1,080,940  

Wichita (City of) (Presbyterian Manors, Inc.); Series 2013 IV-A, Health Care Facilities RB

     6.50 %      05/15/2048        1,000        1,059,430  
                                2,140,370  
Kentucky–0.86%          

Kentucky (State of) Economic Development Finance Authority (Masonic Home Independent Living II); Series 2011, RB(f)(g)

     7.38 %      05/15/2021        1,000        1,169,300  

 

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

 

13                         Invesco Municipal Income Opportunities Trust

     Interest
Rate		     Maturity
Date		      Principal
Amount
(000)		      Value  
Kentucky–(continued)          

Kentucky (State of) Public Transportation Infrastructure Authority (Downtown Crossing); Series 2013 C, First Tier Toll Conv. CAB RB(c)

     6.88 %      07/01/2046      $ 2,000      $ 1,852,440  
                                3,021,740  
Louisiana–1.87%          

East Baton Rouge (Parish of) Industrial Development Board (ExxonMobil); Series 2010 B, VRD RB(l)

     1.14 %      12/01/2040        300        300,000  

Louisiana (State of) Local Government Environmental Facilities & Community Development Authority (Westlake Chemical Corp.); Series 2009 A, RB

     6.50 %      08/01/2029        750        828,937  

Louisiana (State of) Local Government Environmental Facilities & Community Development Authority; Series 2015 A, Ref. RB

     6.25 %      11/15/2045        750        832,005  

Louisiana (State of) Public Facilities Authority (Lake Charles Memorial Hospital); Series 2007, Ref. Hospital RB(e)

     6.38 %      12/01/2034        1,000        1,049,580  

New Orleans (City of) Aviation Board (North Terminal); Series 2017 B, General Airport RB(b)(h)

     5.00 %      01/01/2048        3,250        3,575,943  
                                6,586,465  
Maine–0.31%          

Maine (State of) Health & Higher Educational Facilities Authority (Maine General Medical Center); Series 2011, RB

     6.75 %      07/01/2041        1,000        1,086,320  
Maryland–1.53%          

Baltimore (City of) (East Baltimore Research Park); Series 2008 A, Special Obligation Tax Allocation
RB(f)(g)

     7.00 %      09/01/2018        1,000        1,027,900  

Baltimore (City of); Series 2017, Ref. Convention Center Hotel RB

     5.00 %      09/01/2042        2,000        2,227,160  

Frederick (County of) (Jefferson Technology Park); Series 2013 B, Tax Increment & Special Tax RB(e)

     7.13 %      07/01/2043        1,000        1,079,360  

Harford (County of); Series 2011, Special Obligation Tax Allocation RB

     7.50 %      07/01/2040        1,000        1,045,800  
                                5,380,220  
Massachusetts–1.80%          

Massachusetts (State of) Development Finance Agency (Massachusetts Institute of Technology); Series 2002 K, RB(b)

     5.50 %      07/01/2032        505        654,591  

Massachusetts (State of) Development Finance Agency (Newbridge Charles, Inc.); Series 2017, Ref. RB(e)

     5.00 %      10/01/2057        1,500        1,575,675  

Massachusetts (State of) Development Finance Agency (Tufts Medical Center);

          

Series 2011 I, RB(f)(g)

     6.88 %      01/01/2021        600        681,504  

Series 2011 I, RB

     6.88 %      01/01/2041        400        450,208  

Massachusetts (State of); Series 2004 A, Ref. Limited Tax GO Bonds (INS–AMBAC)(b)(d)

     5.50 %      08/01/2030        960        1,190,458  

University of Massachusetts Building Authority; Sr. Series 2017 1, RB(b)

     5.25 %      11/01/2047        1,500        1,767,465  
                                6,319,901  
Michigan–1.85%          

Charyl Stockwell Academy; Series 2015, Ref. Public School Academy RB

     5.75 %      10/01/2045        635        629,761  

Dearborn Economic Development Corp. (Henry Ford Village, Inc.); Series 2008, Ref. Limited Obligation RB

     7.00 %      11/15/2028        1,200        1,190,052  

Detroit (City of) Water and Sewerage Department; Series 2012 A, Ref. Sr. Lien Sewage Disposal System RB

     5.25 %      07/01/2039        1,000        1,082,240  

Grand Rapids Economic Development Corp. (Beacon Hill at Eastgate); Series 2017 A, Ref. RB

     5.00 %      11/01/2037        600        630,954  

Michigan (State of) Tobacco Settlement Finance Authority; Series 2007 A, Sr. Asset-Backed RB

     6.00 %      06/01/2048        2,280        2,274,300  

Wayne Charter County Economic Development Corp. (Rivers of Grosse Point); Series 2013, First Mortgage RB

     7.88 %      12/01/2043        1,000        700,150  
                                6,507,457  
Minnesota–2.95%          

Anoka (City of) (The Homestead at Anoka, Inc.); Series 2011 A, Health Care Facilities RB(f)(g)

     7.00 %      11/01/2019        1,000        1,094,360  

Bloomington (City of) Port Authority (Radisson Blu Mall of America, LLC); Series 2010, Recovery Zone Facility RB

     9.00 %      12/01/2035        1,000        1,121,330  

Minneapolis (City of) (Fairview Health Services); Series 2008 A, Health Care System RB(f)(g)

     6.75 %      11/15/2018        1,500        1,555,890  

 

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

 

14                         Invesco Municipal Income Opportunities Trust

     Interest
Rate		     Maturity
Date		      Principal
Amount
(000)		      Value  
Minnesota–(continued)          

Rochester (City of) (Homestead at Rochester, Inc.); Series 2013 A, Health Care & Housing RB

     6.88 %      12/01/2048      $ 1,000      $ 1,130,890  

Rochester (City of) (Samaritan Bethany, Inc.); Series 2009 A, Ref. Health Care & Housing RB(f)(g)

     7.38 %      12/01/2019        1,000        1,095,970  

St. Paul (City of) Housing & Redevelopment Authority (Emerald Gardens); Series 2010, Ref. Tax Increment Allocation RB

     6.25 %      03/01/2025        1,000        1,029,200  

Wayzata (City of) (Folkestone Senior Living Community); Series 2012 A, Senior Housing RB

     6.00 %      05/01/2047        1,000        1,046,010  

West St. Paul (City of) (Walker Thompson Hill, LLC); Series 2011A, Health Care Facilities RB(f)(g)

     7.00 %      09/01/2019        700        754,292  

West St. Paul (City of) (Walker Westwood Ridge Campus); Series 2017, Ref. Housing & Health Care Facilities RB

     5.00 %      11/01/2049        1,500        1,537,320  
                                10,365,262  
Mississippi–0.32%          

Mississippi Business Finance Corp. (Chevron U.S.A. Inc.); Series 2009 C, VRD Gulf Opportunity Zone IDR(l)

     1.12 %      12/01/2030        500        500,000  

Mississippi Business Finance Corp. (System Energy Resources, Inc.); Series 1998, PCR

     5.88 %      04/01/2022        620        639,499  
                                1,139,499  
Missouri–1.28%          

Branson Hills Infrastructure Facilities Community Improvement District; Series 2007 A, Special Assessment RB

     5.50 %      04/01/2027        750        331,927  

Bridgeton (City of) Industrial Development Authority (Sarah Community); Series 2011 A, Ref. & Improvement Senior Housing RB(f)(g)

     6.38 %      05/01/2018        1,000        1,008,270  

Kansas City (City of) Industrial Development Authority (Ward Parkway Center Community Improvement District); Series 2011, Sales Tax RB(f)(g)

     6.75 %      10/01/2018        1,000        1,030,810  

Kirkwood (City of) Industrial Development Authority (Aberdeen Heights); Series 2010 A, Retirement Community RB(f)(g)

     8.25 %      05/15/2020        1,000        1,135,840  

St. Louis (County of) Industrial Development Authority (Grand Center Redevelopment); Series 2011, Tax Increment Allocation Improvement RB

     6.38 %      12/01/2025        1,000        1,012,950  
                                4,519,797  
Nebraska–0.32%          

Gage (County of) Hospital Authority No. 1 (Beatrice Community Hospital & Health Center); Series 2010 B, Health Care Facilities RB(f)(g)

     6.75 %      06/01/2020        1,000        1,111,080  
Nevada–0.32%          

Las Vegas (City of) Redevelopment Agency; Series 2009 A, Tax Increment Allocation RB(f)(g)

     8.00 %      06/15/2019        700        756,686  

Sparks (City of) (Local Improvement District No. 3 — Legends at Sparks Marina); Series 2008, Special Assessment Limited Obligation Improvement RB(f)(g)

     6.50 %      09/01/2018        355        363,850  
                                1,120,536  
New Hampshire–0.59%          

New Hampshire (State of) Business Finance Authority (Huggins Hospital); Series 2009, First Mortgage RB(f)(g)

     6.88 %      10/01/2019        910        980,179  

New Hampshire (State of) Health & Education Facilities Authority (Rivermead); Series 2011 A, RB

     6.88 %      07/01/2041        1,000        1,089,070  
                                2,069,249  
New Jersey–3.98%          

Essex (County of) Improvement Authority (Newark); Series 2010 A, RB

     6.25 %      11/01/2030        1,000        1,056,250  

New Jersey (State of) Economic Development Authority (Continental Airlines, Inc.);

          

Series 1999, Special Facility RB(h)

     5.25 %      09/15/2029        1,000        1,091,610  

Series 2012, Special Facility RB(h)

     5.75 %      09/15/2027        1,000        1,109,530  

New Jersey (State of) Economic Development Authority (Leap Academy); Series 2014 A, RB

     6.30 %      10/01/2049        1,200        1,223,172  

New Jersey (State of) Economic Development Authority (Paterson Charter School for Science and Technology Inc.); Series 2012 C, RB

     5.30 %      07/01/2044        1,000        907,850  

New Jersey (State of) Transportation Trust Fund Authority; Series 2008 A, CAB Transportation System RB(i)

     0.00 %      12/15/2037        5,000        1,929,750  

 

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

 

15                         Invesco Municipal Income Opportunities Trust

     Interest
Rate		     Maturity
Date		      Principal
Amount
(000)		      Value  
New Jersey–(continued)          

New Jersey (State of) Turnpike Authority; Series 2017 B, Ref. RB(b)

     5.00 %      01/01/2040      $ 1,500      $ 1,703,085  

Tobacco Settlement Financing Corp.;

          

Series 2007 1-A, Asset-Backed RB

     5.00 %      06/01/2041        2,500        2,497,750  

Series 2007 1A, Asset-Backed RB

     4.63 %      06/01/2026        1,000        1,003,510  

Series 2007 1A, Asset-Backed RB

     4.75 %      06/01/2034        1,500        1,485,015  
                                14,007,522  
New Mexico–0.30%          

New Mexico (State of) Hospital Equipment Loan Council (La Vida Llena); Series 2010 A, First Mortgage RB

     6.13 %      07/01/2040        1,000        1,053,150  
New York–14.37%          

Brooklyn Arena Local Development Corp. (Barclays Center);

          

Series 2009, PILOT CAB RB(i)

     0.00 %      07/15/2035        1,475        745,155  

Series 2009, PILOT CAB RB(i)

     0.00 %      07/15/2046        10,000        3,083,900  

Hudson Yards Infrastructure Corp.; Series 2017 A, Ref. Second Indenture RB(b)

     5.00 %      02/15/2042        2,250        2,546,235  

Nassau (County of) Industrial Development Agency (Amsterdam at Harborside);

          

Series 2014 A, Continuing Care Retirement Community RB

     6.50 %      01/01/2032        1,125        1,199,295  

Series 2014 A, Continuing Care Retirement Community RB

     6.70 %      01/01/2049        500        533,100  

Series 2014 C, Continuing Care Retirement Community RB

     2.00 %      01/01/2049        405        68,860  

New York & New Jersey (States of) Port Authority;

          

One Hundred Sixty-Ninth Series 2011, Consolidated RB(b)(h)

     5.00 %      10/15/2027        1,700        1,858,491  

One Hundred Sixty-Ninth Series 2011, Consolidated RB(b)(h)

     5.00 %      10/15/2028        1,300        1,420,718  

Two Hundred Fifth Series 2017, Ref. Consolidated RB(b)

     5.25 %      11/15/2057        2,250        2,605,568  

New York (City of) Industrial Development Agency (Brooklyn Navy Yard Cogen Partners); Series 1997, Industrial Development RB(h)

     5.75 %      10/01/2036        2,000        1,986,360  

New York (City of) Industrial Development Agency (Queens Baseball Stadium); Series 2006, PILOT RB (INS–AMBAC)(d)

     5.00 %      01/01/2039        500        503,910  

New York (City of) Municipal Water Finance Authority; Series 2012 BB, Water & Sewer System Second General Resolution RB(b)

     5.00 %      06/15/2047        3,000        3,313,410  

New York (City of) Transitional Finance Authority;

          

Series 2013 I, Sub. Future Tax Sec. RB(b)

     5.00 %      05/01/2042        2,400        2,681,496  

Subseries 2012 F-1, Future Tax Sec. RB(b)

     5.00 %      05/01/2039        6,000        6,614,460  

New York (City of); Subseries 2016 A-1, Unlimited Tax GO Bonds(b)

     5.00 %      08/01/2038        2,250        2,544,840  

New York (Counties of) Tobacco Trust VI; Subseries 2016 A-1, Ref. Tobacco Settlement Pass Through RB

     5.75 %      06/01/2043        2,000        2,196,780  

New York (State of) Dormitory Authority (Sales Tax); Series 2015 B-C, RB(b)

     5.00 %      03/15/2045        3,000        3,389,040  

New York (State of) Dormitory Authority; Series 2014 C, Personal Income Tax RB(b)

     5.00 %      03/15/2041        3,000        3,378,360  

New York Liberty Development Corp. (3 World Trade Center); Series 2014, Class 3, Ref. Liberty RB(e)

     7.25 %      11/15/2044        1,000        1,194,540  

New York Liberty Development Corp. (Bank of America Tower at One Bryant Park); Series 2010, Ref. Second Priority Liberty RB

     6.38 %      07/15/2049        1,000        1,069,550  

New York Transportation Development Corp. (LaGuardia Airport Terminal B Redevelopment); Series 2016 A, Special Facilities RB(b)(h)

     5.00 %      07/01/2046        1,750        1,900,920  

Triborough Bridge & Tunnel Authority; Series 2017 A, General RB(b)

     5.00 %      11/15/2047        4,170        4,739,122  

TSASC, Inc.; Series 2016 B, Ref. Sub. Tobacco Settlement Asset-Backed RB

     5.00 %      06/01/2045        1,000        998,440  
                                50,572,550  
North Carolina–0.57%          

North Carolina (State of) Medical Care Commission (Aldersgate); Series 2013, Ref. First Mortgage Retirement Facilities RB

     6.25 %      07/01/2035        750        844,028  

North Carolina (State of) Medical Care Commission (WhiteStone); Series 2011 A, First Mortgage Retirement Facilities RB(f)(g)

     7.75 %      03/01/2021        1,000        1,168,060  
                                2,012,088  

 

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

 

16                         Invesco Municipal Income Opportunities Trust

     Interest
Rate		     Maturity
Date		      Principal
Amount
(000)		      Value  
North Dakota–0.28%          

Burleigh (County of) (University of Mary); Series 2016, Education Facilities RB

     5.20 %      04/15/2046      $ 1,000      $ 992,310  
Ohio–4.87%          

Buckeye Tobacco Settlement Financing Authority;

          

Series 2007 A-2, Sr. Asset-Backed Turbo RB

     5.88 %      06/01/2030        1,000        969,290  

Series 2007 A-2, Sr. Asset-Backed Turbo RB

     5.88 %      06/01/2047        2,000        1,912,520  

Series 2007 A-2, Sr. Asset-Backed Turbo RB

     6.50 %      06/01/2047        2,000        1,987,500  

Series 2007 A-3, Sr. Asset-Backed RB

     6.25 %      06/01/2037        1,000        996,560  

Series 2007 B, First Sub. Asset-Backed CAB RB(i)

     0.00 %      06/01/2047        34,540        2,218,504  

Cleveland (City of) & Cuyahoga (County of) Port Authority (Constellation Schools); Series 2014 A, Ref. & Improvement Lease RB(e)

     6.75 %      01/01/2044        1,000        1,039,820  

Cuyahoga (County of) (Metrohealth System); Series 2017, Ref. Hospital RB

     5.50 %      02/15/2057        2,000        2,169,000  

Franklin (County of) (First Community Village Obligated Group); Series 2013, Ref. Health Care Facilities RB

     5.63 %      07/01/2047        600        604,200  

Gallia (County of) (Holzer Health System Obligated Group); Series 2012, Ref. & Improvement Hospital Facilities RB

     8.00 %      07/01/2042        970        1,119,031  

Montgomery (County of) (St. Leonard); Series 2010, Ref. & Improvement Health Care & MFH RB

     6.63 %      04/01/2040        1,000        1,076,330  

Muskingum (County of) (Genesis Healthcare System); Series 2013, Hospital Facilities RB

     5.00 %      02/15/2044        1,000        1,043,600  

Ohio (State of) Air Quality Development Authority (FirstEnergy Generation Corp.); Series 2009 C, Ref. PCR

     5.63 %      06/01/2018        1,000        955,300  

Toledo-Lucas (County of) Port Authority (StoryPoint Waterville); Series 2016 A-1, RB(e)

     6.38 %      01/15/2051        1,000        1,030,260  
                                17,121,915  
Oklahoma–0.94%          

Oklahoma (State of) Development Finance Authority (Inverness Village Community);

          

Series 2012, Ref. Continuing Care Retirement Community RB

     6.00 %      01/01/2032        1,000        731,010  

Series 2013, Ref. Continuing Care Retirement Community RB

     5.75 %      01/01/2037        1,000        730,970  

Payne (County of) Economic Development Authority (Epworth Living at the Ranch); Series 2016 A, RB

     7.00 %      11/01/2051        1,000        740,750  

Tulsa (County of) Industrial Authority (Montereau, Inc.); Series 2010 A, Senior Living Community RB(f)(g)

     7.25 %      05/01/2020        1,000        1,115,350  
                                3,318,080  
Pennsylvania–4.41%          

Allegheny (County of) Industrial Development Authority (Propel Charter School-Montour); Series 2010 A, Charter School RB

     6.75 %      08/15/2035        890        941,923  

Cumberland (County of) Municipal Authority (Asbury Pennsylvania Obligated Group); Series 2010, RB

     6.13 %      01/01/2045        965        1,008,608  

Lehigh (County of) General Purpose Authority (Bible Fellowship Church Homes, Inc.); Series 2013, RB

     5.25 %      07/01/2042        1,000        1,013,050  

Montgomery (County of) Industrial Development Authority (Philadelphia Presbytery Homes, Inc.); Series 2010, RB(f)(g)

     6.63 %      12/01/2021        1,000        1,170,080  

Pennsylvania (Commonwealth of); First Series 2014, Unlimited Tax GO Bonds(b)

     5.00 %      06/15/2034        3,000        3,352,200  

Pennsylvania (State of) Economic Development Financing Authority (USG Corp.); Series 1999, Solid Waste Disposal RB(h)

     6.00 %      06/01/2031        1,000        1,002,000  

Pennsylvania (State of) Intergovernmental Cooperation Authority (City of Philadelphia Funding Program); Series 2009, Ref. Special Tax RB(b)

     5.00 %      06/15/2021        3,000        3,133,590  

Pennsylvania (State of) Turnpike Commission; Second Series 2017, Ref. Sub. Turnpike RB

     5.00 %      12/01/2037        1,000        1,104,650  

Philadelphia (City of) Industrial Development Authority (First Philadelphia Preparatory Charter School); Series 2014 A, RB

     7.25 %      06/15/2043        750        854,722  

Philadelphia (City of) Industrial Development Authority (Performing Arts Charter School); Series 2013, RB(e)

     6.75 %      06/15/2043        1,000        1,055,170  

Washington (County of) Redevelopment Authority (Victory Centre Tanger Outlet Development); Series 2006 A, Tax Allocation RB

     5.45 %      07/01/2035        860        861,213  
                                15,497,206  

 

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

 

17                         Invesco Municipal Income Opportunities Trust

     Interest
Rate		     Maturity
Date		      Principal
Amount
(000)		      Value  
Puerto Rico–1.25%          

Children’s Trust Fund;

          

Series 2002, Tobacco Settlement Asset-Backed RB

     5.50 %      05/15/2039      $ 500      $ 471,895  

Series 2002, Tobacco Settlement Asset-Backed RB

     5.63 %      05/15/2043        1,000        935,500  

Series 2005 A, Tobacco Settlement Asset-Backed RB(i)

     0.00 %      05/15/2050        27,000        1,982,070  

Puerto Rico (Commonwealth of) Public Buildings Authority; Series 2007, Ref. Government Facilities RB (INS–NATL)(d)

     6.00 %      07/01/2024        1,000        1,002,800  
                                4,392,265  
Tennessee–0.87%          

Bristol (City of) Industrial Development Board (Pinnacle); Series 2016, Tax Increment Allocation RB

     5.63 %      06/01/2035        1,000        1,044,450  

Shelby (County of) Health, Educational & Housing Facilities Board (Trezevant Manor); Series 2013 A, Ref. RB

     5.50 %      09/01/2047        1,000        1,025,700  

Trenton (City of) Health & Educational Facilities Board (RHA/Trenton MR, Inc.); Series 2009,
RB(f)(g)

     9.25 %      04/01/2019        930        1,005,786  
                                3,075,936  
Texas–7.87%          

Arlington Higher Education Finance Corp. (Universal Academy); Series 2014 A, Education RB

     7.13 %      03/01/2044        800        824,504  

Capital Area Cultural Education Facilities Finance Corp. (The Roman Catholic Diocese of Austin); Series 2005 B, RB

     6.13 %      04/01/2045        1,000        1,070,500  

Central Texas Regional Mobility Authority; Series 2011, Sub. Lien RB(f)(g)

     6.75 %      01/01/2021        1,000        1,133,900  

Clifton Higher Education Finance Corp. (Uplift Education); Series 2010 A, Education RB(f)(g)

     6.25 %      12/01/2020        1,000        1,119,580  

HFDC of Central Texas, Inc. (Sears Tyler Methodist); Series 2009 A, RB(j)

     7.75 %      11/15/2044        1,000        10  

Houston (City of) (Continental Airlines, Inc.); Series 2011 A, Ref. Airport System Special Facilities RB(h)

     6.63 %      07/15/2038        1,000        1,105,160  

Houston Higher Education Finance Corp. (Cosmos Foundation, Inc.); Series 2011 A, RB(f)(g)

     6.88 %      05/15/2021        1,000        1,153,840  

La Vernia Higher Education Finance Corp. (Knowledge is Power Program, Inc.); Series 2009 A, RB(f)(g)

     6.25 %      08/15/2019        1,000        1,066,200  

La Vernia Higher Education Finance Corp. (Meridian World School); Series 2015 A, RB(e)

     5.50 %      08/15/2045        750        761,430  

Mission Economic Development Corp. (CarbonLite Recycling LLC); Series 2016, Solid Waste Disposal RB(e)(h)

     6.50 %      12/01/2033        1,000        983,450  

Mission Economic Development Corp. (Natgasoline); Series 2016 B, Sr. Lien RB(e)(h)

     5.75 %      10/01/2031        1,000        1,041,770  

New Hope Cultural Education Facilities Finance Corp. (Longhorn Village); Series 2017, Ref. Retirement Facility RB

     5.00 %      01/01/2047        1,000        1,052,430  

New Hope Cultural Education Facilities Finance Corp. (MRC Senior Living-The Langford); Series 2016 A, Retirement Facility RB

     5.50 %      11/15/2052        1,500        1,500,885  

North Texas Tollway Authority; Series 2011 B, Special Project System CAB RB(f)(g)(i)

     0.00 %      09/01/2031        7,000        2,994,180  

Port Beaumont Navigation District (Jefferson Energy Companies); Series 2016, Dock & Wharf Facility RB(e)(f)(h)

     7.25 %      02/13/2020        1,500        1,558,755  

Red River Health Facilities Development Corp. (Sears Methodist Retirement System); Series 2013, Retirement Facility RB(j)(m)

     6.15 %      11/15/2049        978        0  

Rowlett (City of) (Bayside Public Improvement District North Improvement Area); Series 2016, Special Assessment RB

     6.00 %      09/15/2046        490        466,279  

Sanger Industrial Development Corp. (Texas Pellets); Series 2012 B, RB(h)(j)

     8.00 %      07/01/2038        990        237,600  

Tarrant County Cultural Education Facilities Finance Corp. (Buckner Senior Living — Ventana); Series 2017, Retirement Facility RB

     6.75 %      11/15/2052        1,000        1,105,960  

Tarrant County Cultural Education Facilities Finance Corp. (C.C. Young Memorial Home); Series 2017A, Retirement Facility RB

     6.38 %      02/15/2052        1,000        1,056,110  

Tarrant County Cultural Education Facilities Finance Corp. (SQLC Senior Living Center at Corpus Christi, Inc.-Mirador);

          

Series 2017 A, Retirement Facility RB

     4.63 %      11/15/2041        485        381,152  

Series 2017 A, Retirement Facility RB

     4.88 %      11/15/2048        1,000        775,150  

Tarrant County Cultural Education Facilities Finance Corp. (Stayton at Museum Way); Series 2009 A, Retirement Facility RB

     8.25 %      11/15/2044        860        771,738  

Texas Private Activity Bond Surface Transportation Corp. (LBJ Infrastructure); Series 2010, Sr. Lien RB

     7.00 %      06/30/2040        1,000        1,105,890  

 

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

 

18                         Invesco Municipal Income Opportunities Trust

     Interest
Rate		     Maturity
Date		      Principal
Amount
(000)		      Value  
Texas–(continued)          

Texas Private Activity Bond Surface Transportation Corp. (NTE Mobility Partners LLC North Tarrant Express Management Lanes); Series 2009, Sr. Lien RB

     6.88 %      12/31/2039      $ 1,000      $ 1,083,390  

Texas Private Activity Bond Surface Transportation Corp. (NTE Mobility Partners LLC); Series 2013, Sr. Lien RB(h)

     6.75 %      06/30/2043        1,000        1,160,160  

Texas State Public Finance Authority Charter School Finance Corp. (Odyssey Academy, Inc.); Series 2010 A, Education RB(f)(g)

     7.13 %      02/15/2020        1,000        1,101,920  

Travis County Health Facilities Development Corp. (Westminster Manor);

          

Series 2010, RB(f)(g)

     7.00 %      11/01/2020        805        912,701  

Series 2010, RB

     7.00 %      11/01/2030        150        168,441  
                                27,693,085  
Utah–1.25%          

Salt Lake City (City of); Series 2017 A, Airport RB(b)(h)

     5.00 %      07/01/2042        3,000        3,337,770  

Utah (State of) Charter School Finance Authority (North Davis Preparatory Academy); Series 2010, Charter School RB

     6.38 %      07/15/2040        1,000        1,064,310  
                                4,402,080  
Virginia–1.48%          

Ballston Quarter Communities Development Authority; Series 2016 A, Tax Allocation RB

     5.38 %      03/01/2036        1,000        1,044,580  

Peninsula Town Center Community Development Authority; Series 2007, Special Obligation RB

     6.45 %      09/01/2037        1,000        1,008,020  

Tobacco Settlement Financing Corp.; Series 2007 B-2, Sr. Tobacco Settlement RB

     5.20 %      06/01/2046        1,000        988,950  

Virginia (State of) Small Business Financing Authority (Transform 66 P3); Series 2017, Sr. Lien Private Activity RB(h)

     5.00 %      12/31/2052        2,000        2,152,720  
                                5,194,270  
Washington–2.39%          

King (County of) Public Hospital District No. 4 (Snoqualmie Valley Hospital); Series 2011, Ref. & Improvement Limited Tax GO Bonds

     7.00 %      12/01/2040        1,000        1,034,000  

King (County of) Public Hospital District No. 4; Series 2015 A, RB

     6.25 %      12/01/2045        1,000        1,002,310  

King (County of); Series 2011 B, Ref. Sewer RB(b)(f)(g)

     5.00 %      01/01/2021        3,000        3,261,960  

Washington (State of) Health Care Facilities Authority (Central Washington Health Services Association); Series 2009, RB(f)(g)

     7.00 %      07/01/2019        1,000        1,068,580  

Washington (State of) Health Care Facilities Authority (Seattle Cancer Care Alliance); Series 2009, RB(f)(g)

     7.38 %      03/01/2019        1,200        1,269,156  

Washington (State of) Housing Finance Commission (Heron’s Key Senior Living); Series 2015 A, RB(e)

     7.00 %      07/01/2050        740        786,894  
                                8,422,900  
West Virginia–1.09%          

Kanawha (County of) (The West Virginia State University Foundation); Series 2013, Student Housing RB

     6.75 %      07/01/2045        1,000        1,055,560  

Monongalia (County of) Commission Special District (University Town Centre Economic Opportunity Development District); Series 2017 A, Ref. Excise Tax & Improvement RB(e)

     5.75 %      06/01/2043        1,000        1,039,870  

West Virginia (State of) Economic Development Authority (Entsorga West Virginia LLC); Series 2016, Solid Waste Disposal Facilities RB(e)(h)

     7.25 %      02/01/2036        750        720,930  

West Virginia (State of) Hospital Finance Authority (Thomas Health System); Series 2008, RB

     6.50 %      10/01/2038        1,000        1,010,540  
                                3,826,900  
Wisconsin–6.54%          

Public Finance Authority (American Dream at Meadowlands); Series 2017, Limited Obligation PILOT RB(e)

     7.00 %      12/01/2050        2,000        2,313,800  

Public Finance Authority (WhiteStone); Series 2017, Ref. Retirement Facility RB(e)

     5.00 %      03/01/2037        760        835,932  

Wisconsin (State of) Health & Educational Facilities Authority (Ascension Senior Credit Group); Series 2016 A, Ref. RB(b)

     5.00 %      11/15/2039        3,000        3,375,210  

Wisconsin (State of) Health & Educational Facilities Authority (Prohealth Care, Inc. Obligated Group); Series 2009, RB(f)(g)

     6.38 %      02/15/2019        1,500        1,568,760  

 

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

 

19                         Invesco Municipal Income Opportunities Trust

     Interest
Rate		     Maturity
Date		      Principal
Amount
(000)		      Value  
Wisconsin–(continued)          

Wisconsin (State of) Health & Educational Facilities Authority (St. John’s Community, Inc.); Series 2009 A, RB(f)(g)

     7.63 %      09/15/2019      $ 1,000      $ 1,090,570  

Wisconsin (State of) Health & Educational Facilities Authority (Wisconsin Illinois Senior Housing, Inc.);

          

Series 2012, RB

     5.88 %      08/01/2042        1,000        1,009,850  

Series 2013, RB

     7.00 %      08/01/2043        1,025        1,065,108  

Wisconsin (State of) Public Finance Authority (Alabama Proton Therapy Center); Series 2017 A, RB(e)

     6.85 %      10/01/2047        2,000        1,989,780  

Wisconsin (State of) Public Finance Authority (Delray Beach Radiation Therapy Center); Series 2017 A, Sr. RB(e)

     6.85 %      11/01/2046        1,000        1,028,920  

Wisconsin (State of) Public Finance Authority (Glenridge Palmer Ranch); Series 2011 A, Continuing Care Retirement Community RB

     8.25 %      06/01/2046        1,000        1,162,050  

Wisconsin (State of) Public Finance Authority (KU Campus Development Corp. Central District Development); Series 2016, Lease Development RB(b)

     5.00 %      03/01/2046        3,000        3,300,540  

Wisconsin (State of) Public Finance Authority (Million Air Two LLC General Aviation Facilities); Series 2017 A, Special Facilities RB(h)

     7.25 %      06/01/2035        1,500        1,500,330  

Wisconsin (State of) Public Finance Authority (Prime Healthcare Foundation, Inc.); Series 2018 A, RB

     5.20 %      12/01/2037        1,500        1,522,800  

Wisconsin (State of) Public Finance Authority (Roseman University of Health Sciences); Series 2015, Ref. RB

     5.88 %      04/01/2045        660        711,163  

Wisconsin (State of) Public Finance Authority (Voyager Foundation Inc.); Series 2012 A, Charter School RB

     6.20 %      10/01/2042        500        529,720  
                                23,004,533  

TOTAL INVESTMENTS IN SECURITIES(n)–127.29% (Cost $426,457,200)

                               447,836,163  

FLOATING RATE NOTE OBLIGATIONS–(20.45)%

          

Notes with interest and fee rates ranging from 1.61% to 2.01% at 02/28/2018 and contractual maturities of collateral ranging from 06/15/2021 to 11/15/2057 (See Note 1J)(o)

                               (71,940,000 ) 

VARIABLE RATE MUNI TERM PREFERRED SHARES–(8.49)%

                               (29,866,423 ) 

OTHER ASSETS LESS LIABILITIES–1.65%

                               5,786,485  

NET ASSETS APPLICABLE TO COMMON SHARES–100.00%

                             $ 351,816,225  

Investment Abbreviations:

 

AGM  

– Assured Guaranty Municipal Corp.

AMBAC  

– American Municipal Bond Assurance Corp.

CAB  

– Capital Appreciation Bonds

Conv.  

– Convertible

COP  

– Certificates of Participation

GO  

– General Obligation

IDR  

– Industrial Development Revenue Bonds

INS  

– Insurer

Jr.  

– Junior

MFH  

– Multi-Family Housing

NATL  

– National Public Finance Guarantee Corp.

PCR  

– Pollution Control Revenue Bonds

PILOT  

– Payment-in-Lieu-of-Tax

RAC  

– Revenue Anticipation Certificates

RB  

– Revenue Bonds

Ref.  

– Refunding

Sec.  

– Secured

Sr.  

– Senior

Sub.  

– Subordinated

VRD  

– Variable Rate Demand

Wts.  

– Warrants

 

 

Notes to Schedule of Investments:

 

(a)  Calculated as a percentage of net assets. Amounts in excess of 100% are due to the Trust’s use of leverage.
(b)  Underlying security related to TOB Trusts entered into by the Trust. See Note 1J.
(c)  Convertible CAB. The interest rate shown represents the coupon rate at which the bond will accrue at a specified future date.
(d)  Principal and/or interest payments are secured by the bond insurance company listed.
(e)  Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at February 28, 2018 was $40,539,091, which represented 11.52% of the Trust’s Net Assets.
(f)  Security has an irrevocable call by the issuer or mandatory put by the holder. Maturity date reflects such call or put.
(g)  Advance refunded; secured by an escrow fund of U.S. Government obligations or other highly rated collateral.
(h)  Security subject to the alternative minimum tax.
(i)  Zero coupon bond issued at a discount.
(j)  Defaulted security. Currently, the issuer is partially or fully in default with respect to interest payments. The aggregate value of these securities at February 28, 2018 was $1,183,210, which represented less than 1% of the Trust’s Net Assets.
(k)  Security subject to crossover refunding.
(l)  Demand security payable upon demand by the Trust at specified time intervals no greater than thirteen months. Interest rate is redetermined periodically based on current market interest rates. Rate shown is the rate in effect on February 28, 2018.
(m)  Security valued using significant unobservable inputs (Level 3). See Note 3.
(n)  Entities may either issue, guarantee, back or otherwise enhance the credit quality of a security. The entities are not primarily responsible for the issuer’s obligation but may be called upon to satisfy issuers obligations. No concentration of any single entity was greater than 5% each.
(o)  Floating rate note obligations related to securities held. The interest and fee rates shown reflect the rates in effect at February 28, 2018. At February 28, 2018, the Trust’s investments with a value of $120,115,118 are held by TOB Trusts and serve as collateral for the $71,940,000 in the floating rate note obligations outstanding at that date.

 

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

 

20                         Invesco Municipal Income Opportunities Trust

Statement of Assets and Liabilities

February 28, 2018

 

 

Assets:

  

Investments in securities, at value (Cost $426,457,200)

   $ 447,836,163  

Receivable for:

  

Investments sold

     7,592,735  

Interest

     6,068,690  

Investment for trustee deferred compensation and retirement plans

     69,735  

Other assets

     27,839  

Total assets

     461,595,162  

Liabilities:

  

Floating rate note obligations

     71,940,000  

Variable rate muni term preferred shares ($0.01 par value, 300 shares issued with liquidation preference of $100,000 per share)

     29,866,423  

Payable for:

  

Investments purchased

     7,579,030  

Amount due custodian

     10,863  

Accrued interest expense

     48,041  

Accrued trustees’ and officers’ fees and benefits

     4,433  

Accrued other operating expenses

     103,387  

Trustee deferred compensation and retirement plans

     226,760  

Total liabilities

     109,778,937  

Net assets applicable to common shares

   $ 351,816,225  

Net assets applicable to common shares consist of:

 

Shares of beneficial interest — common shares

   $ 348,397,891  

Undistributed net investment income

     2,603,399  

Undistributed net realized gain (loss)

     (20,564,028 ) 

Net unrealized appreciation

     21,378,963  
    $ 351,816,225  

Common shares outstanding, no par value,
with an unlimited number of common shares authorized:

 

Common shares outstanding

     47,493,557  

Net asset value per common share

   $ 7.41  

Market value per common share

   $ 7.53  
 

 

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

 

21                         Invesco Municipal Income Opportunities Trust

Statement of Operations

For the year ended February 28, 2018

 

Investment income:

 

Interest

   $ 24,471,940  

Expenses:

  

Advisory fees

     2,401,804  

Administrative services fees

     84,059  

Custodian fees

     8,026  

Interest, facilities and maintenance fees

     1,319,433  

Transfer agent fees

     28,513  

Trustees’ and officers’ fees and benefits

     30,743  

Registration and filing fees

     46,207  

Reports to shareholders

     32,559  

Professional services fees

     100,216  

Taxes

     195,997  

Other

     52,758  

Total expenses

     4,300,315  

Net investment income

     20,171,625  

Realized and unrealized gain (loss) from:

  

Net realized gain (loss) from investment securities

     (1,589,980 ) 

Change in net unrealized appreciation (depreciation) of investment securities

     (752,452 ) 

Net realized and unrealized gain (loss)

     (2,342,432 ) 

Net increase in net assets resulting from operations

   $ 17,829,193  

 

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

 

22                         Invesco Municipal Income Opportunities Trust

Statement of Changes in Net Assets

For the years ended February 28, 2018 and 2017

 

     2018      2017  

Operations:

     

Net investment income

   $ 20,171,625      $ 19,420,721  

Net realized gain (loss)

     (1,589,980 )       818,100  

Change in net unrealized appreciation (depreciation)

     (752,452 )       (10,690,278 ) 

Net increase in net assets resulting from operations

     17,829,193        9,548,543  

Distributions to common shareholders from net investment income

     (19,596,943 )       (19,127,714 ) 

Net increase in common shares of beneficial interest

     288,688        229,541  

Net increase (decrease) in net assets applicable to common shares

     (1,479,062 )       (9,349,630 ) 

Net assets applicable to common shares:

     

Beginning of year

     353,295,287        362,644,917  

End of year (includes undistributed net investment income of $2,603,399 and $1,942,367, respectively)

   $ 351,816,225      $ 353,295,287  

 

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

 

23                         Invesco Municipal Income Opportunities Trust

Statement of Cash Flows

For the year ended February 28, 2018

 

Cash provided by operating activities:

 

Net increase in net assets resulting from operations applicable to common shares

   $ 17,829,193  

Adjustments to reconcile the change in net assets applicable to common shares from operations to net cash provided by (used in) operating activities

 

Purchases of investments

     (82,240,119 ) 

Purchases of short-term investments, net

     (800,000 ) 

Proceeds from sales of investments

     49,140,092  

Amortization of premium

     1,155,482  

Accretion of discount

     (3,771,804 ) 

Increase in receivables and other assets

     (616,836 ) 

Increase in accrued expenses and other payables

     31,390  

Net realized loss from investment securities

     1,589,980  

Net change in unrealized depreciation on investment securities

     752,452  

Net cash provided by (used in) operating activities

     (16,930,170 ) 

Cash provided by financing activities:

  

Dividends paid to common shareholders from net investment income

     (19,308,255 ) 

Decrease in payable for amount due custodian

     (1,321,575 ) 

Increase in VMTP Shares, at liquidation value

     30,000,000  

Proceeds from TOB Trusts

     14,135,000  

Repayments of TOB Trusts

     (6,575,000 ) 

Net cash provided by financing activities

     16,930,170  

Net increase in cash and cash equivalents

     —  

Cash and cash equivalents at beginning of period

     —  

Cash and cash equivalents at end of period

   $ —  

Non-cash financing activities:

  

Value of shares of beneficial interest issued in reinvestment of dividends paid to shareholders

   $ 288,688  

Supplemental disclosure of cash flow information:

  

Cash paid during the period for interest, facilities and maintenance fees

   $ 1,319,308  

Notes to Financial Statements

February 28, 2018

NOTE 1—Significant Accounting Policies

Invesco Municipal Income Opportunities Trust (the “Trust”) is a Delaware statutory trust registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as a diversified, closed-end management investment company.

The Trust’s investment objective is to provide common shareholders a high level of current income which is exempt from federal income tax.

The Trust is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services — Investment Companies.

The following is a summary of the significant accounting policies followed by the Trust in the preparation of its financial statements.

A. Security Valuations — Securities, including restricted securities, are valued according to the following policy.

Securities are fair valued using an evaluated quote provided by an independent pricing service approved by the Board of Trustees. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a trust may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

Securities for which market quotations either are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Some of the factors which may be considered in determining fair value are fundamental analytical data relating to the investment; the nature and duration of any restrictions on transferability or disposition; trading in similar securities by the same issuer or comparable companies; relevant political, economic or issuer specific news; and other relevant factors under the circumstances.

 

24                         Invesco Municipal Income Opportunities Trust

The Trust may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Trust investments.

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

B. Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Bond premiums and discounts are amortized and/or accreted over the lives of the respective securities. Pay-in-kind interest income and non-cash dividend income received in the form of securities in-lieu of cash are recorded at the fair value of the securities received. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date.

The Trust may periodically participate in litigation related to Trust investments. As such, the Trust may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.

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

C. Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D. Distributions — The Trust declares and pays monthly dividends from net investment income to common shareholders. Distributions from net realized capital gain, if any, are generally declared and paid annually and are distributed on a pro rata basis to common and preferred shareholders.
E. Federal Income Taxes — The Trust intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Trust’s taxable earnings to shareholders. As such, the Trust will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.

The Trust recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Trust’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.

In addition, the Trust intends to invest in such municipal securities to allow it to qualify to pay shareholders “exempt dividends”, as defined in the Internal Revenue Code.

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

F. Interest, Facilities and Maintenance Fees — Interest, Facilities and Maintenance Fees include interest and related borrowing costs such as commitment fees, rating and bank agent fees and other expenses associated with lines of credit and Variable Rate Muni Term Preferred Shares (“VMTP Shares”), and interest and administrative expenses related to establishing and maintaining floating rate note obligations, if any.
G. Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Trust monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H. Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Trust. Additionally, in the normal course of business, the Trust enters into contracts, including the Trust’s servicing agreements, that contain a variety of indemnification clauses. The Trust’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
I. Cash and Cash Equivalents — For the purposes of the Statement of Cash Flows, the Trust defines Cash and Cash Equivalents as cash (including foreign currency), money market funds and other investments held in lieu of cash and excludes investments made with cash collateral received.
J.

Floating Rate Note Obligations — The Trust invests in inverse floating rate securities, such as Tender Option Bonds (“TOBs”), for investment purposes and to enhance the yield of the Trust. Such securities may be purchased in the secondary market without first owning an

 

25                         Invesco Municipal Income Opportunities Trust

  underlying bond but generally are created through the sale of fixed rate bonds by the Trust to special purpose trusts established by a broker dealer or by the Trust (“TOB Trusts”) in exchange for cash and residual interests in the TOB Trusts’ assets and cash flows, which are in the form of inverse floating rate securities. The TOB Trusts finance the purchases of the fixed rate bonds by issuing floating rate notes to third parties and allowing the Trust to retain residual interests in the bonds. The floating rate notes issued by the TOB Trusts have interest rates that reset weekly and the floating rate note holders have the option to tender their notes to the TOB Trusts for redemption at par at each reset date. The residual interests held by the Trust (inverse floating rate securities) include the right of the Trust (1) to cause the holders of the floating rate notes to tender their notes at par at the next interest rate reset date, and (2) to transfer the municipal bond from the TOB Trust to the Trust, thereby collapsing the TOB Trust. Inverse floating rate securities tend to underperform the market for fixed rate bonds in a rising interest rate environment, but tend to outperform the market for fixed rate bonds when interest rates decline or remain relatively stable.

The Trust generally invests in inverse floating rate securities that include embedded leverage, thus exposing the Trust to greater risks and increased costs. The primary risks associated with inverse floating rate securities are varying degrees of liquidity and decreases in the value of such securities in response to changes in interest rates to a greater extent than fixed rate securities having similar credit quality, redemption provisions and maturity, which may cause the Trust’s net asset value to be more volatile than if it had not invested in inverse floating rate securities. In certain instances, the short-term floating rate notes created by the TOB Trust may not be able to be sold to third parties or, in the case of holders tendering (or putting) such notes for repayment of principal, may not be able to be remarketed to third parties. In such cases, the TOB Trust holding the fixed rate bonds may be collapsed with the entity that contributed the fixed rate bonds to the TOB Trust. In the case where a TOB Trust is collapsed with the Trust, the Trust will be required to repay the principal amount of the tendered securities, which may require the Trust to sell other portfolio holdings to raise cash to meet that obligation. The Trust could therefore be required to sell other portfolio holdings at a disadvantageous time or price to raise cash to meet this obligation, which risk will be heightened during times of market volatility, illiquidity or uncertainty. The embedded leverage in the TOB Trust could cause the Trust to lose more money than the value of the asset it has contributed to the TOB Trust and greater levels of leverage create the potential for greater losses. In addition, a Trust may enter into reimbursement agreements with the liquidity provider of certain TOB transactions in connection with certain residuals held by the Trust. These agreements commit a Trust to reimburse the liquidity provider to the extent that the liquidity provider must provide cash to a TOB Trust, including following the termination of a TOB Trust resulting from a mandatory tender event (“liquidity shortfall”). The reimbursement agreement will effectively make the Trust liable for the amount of the negative difference, if any, between the liquidation value of the underlying security and the purchase price of the floating rate notes issued by the TOB Trust.

The Trust accounts for the transfer of fixed rate bonds to the TOB Trusts as secured borrowings, with the securities transferred remaining in the Trust’s investment assets, and the related floating rate notes reflected as Trust liabilities under the caption Floating rate note obligations on the Statement of Assets and Liabilities. The carrying amount of the Trust’s floating rate note obligations as reported on the Statement of Assets and Liabilities approximates its fair value. The Trust records the interest income from the fixed rate bonds under the caption Interest and records the expenses related to floating rate obligations and any administrative expenses of the TOB Trusts as a component of Interest, facilities and maintenance fees on the Statement of Operations.

Final rules implementing section 619 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Volcker Rule”) prohibit banking entities from engaging in proprietary trading of certain instruments and limit such entities’ investments in, and relationships with, “covered funds”, as defined in the rules. These rules preclude banking entities and their affiliates from sponsoring and/or providing services for existing TOB Trusts. A new TOB structure is being utilized by the Trust wherein the Trust, as holder of the residuals, will perform certain duties previously performed by banking entities as “sponsors” of TOB Trusts. These duties may be performed by a third-party service provider. The Trust’s expanded role under the new TOB structure may increase its operational and regulatory risk. The new structure is substantially similar to the previous structure; however, pursuant to the Volcker Rule, the remarketing agent would not be able to repurchase tendered floaters for its own account upon a failed remarketing. In the event of a failed remarketing, a banking entity serving as liquidity provider may loan the necessary funds to the TOB Trust to purchase the tendered floaters. The TOB Trust, not the Trust, would be the borrower and the loan from the liquidity provider will be secured by the purchased floaters now held by the TOB Trust. However, as previously described, the Trust would bear the risk of loss with respect to any liquidity shortfall to the extent it entered into a reimbursement agreement with the liquidity provider.

Further, the SEC and various banking agencies recently adopted rules implementing credit risk retention requirements for asset-backed securities (the “Risk Retention Rules”). The Risk Retention Rules require the sponsor of a TOB Trust to retain at least 5% of the credit risk of the underlying assets supporting the TOB Trust’s municipal bonds. The Trust has adopted policies intended to comply with the Risk Retention Rules. The Risk Retention Rules may adversely affect the Trust’s ability to engage in TOB Trust transactions or increase the costs of such transactions in certain circumstances.

There can be no assurances that the new TOB structure will continue to be a viable form of leverage. Further, there can be no assurances that alternative forms of leverage will be available to the Trust in order to maintain current levels of leverage. Any alternative forms of leverage may be less advantageous to the Trust, and may adversely affect the Trust’s net asset value, distribution rate and ability to achieve its investment objective.

TOBs are presently classified as private placement securities. Private placement securities are subject to restrictions on resale because they have not been registered under the Securities Act of 1933, as amended (the “1933 Act”), or are otherwise not readily marketable. As a result of the absence of a public trading market for these securities, they may be less liquid than publicly traded securities. Although atypical, these securities may be resold in privately negotiated transactions, the prices realized from these sales could be less than those originally paid by the Trust or less than what may be considered the fair value of such securities.

K. Other Risks — The value of, payment of interest on, repayment of principal for and the ability to sell a municipal security may be affected by constitutional amendments, legislative enactments, executive orders, administrative regulations, voter initiatives and the economics of the regions in which the issuers are located.

Since many municipal securities are issued to finance similar projects, especially those relating to education, health care, transportation and utilities, conditions in those sectors can affect the overall municipal securities market and the Trust’s investments in municipal securities.

There is some risk that a portion or all of the interest received from certain tax-free municipal securities could become taxable as a result of determinations by the Internal Revenue Service.

 

26                         Invesco Municipal Income Opportunities Trust

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Trust accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of 0.55% of the Trust’s average weekly managed assets. Managed assets for this purpose means the Trust’s net assets, plus assets attributable to outstanding preferred shares and the amount of any borrowings incurred for the purpose of leverage (whether or not such borrowed amounts are reflected in the Trust’s financial statements for purposes of GAAP).

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

The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Trust has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Trust. For the year ended February 28, 2018, expenses incurred under these agreement are shown in the Statement of Operations as Administrative services fees.

Certain officers and trustees of the Trust are officers and directors of Invesco.

NOTE 3—Additional Valuation Information

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

  Level 1 — Prices are determined using quoted prices in an active market for identical assets.
  Level 2 — Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.
  Level 3 — Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Trust’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.

The following is a summary of the tiered valuation input levels, as of February 28, 2018. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

The Trust’s policy is to recognize transfers in and out of the valuation levels as of the end of the reporting period. During the year ended February 28, 2018, there were no material transfers between valuation levels.

 

     Level 1        Level 2        Level 3        Total  

Investments in Securities

                                         

Municipal Obligations

   $ —        $ 447,836,163        $ 0        $ 447,836,163  

NOTE 4—Security Transactions with Affiliated Funds

The Trust is permitted to purchase or sell securities from or to certain other Invesco Funds under specified conditions outlined in procedures adopted by the Board of Trustees of the Trust. The procedures have been designed to ensure that any purchase or sale of securities by the Trust from or to another fund or portfolio that is or could be considered an affiliate by virtue of having a common investment adviser (or affiliated investment advisers), common Trustees and/or common 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 February 28, 2018, the Trust engaged in securities purchases of $25,512,291 and securities sales of $28,989,418, which did not result in any net realized gains (losses).

NOTE 5—Trustees’ and Officers’ Fees and Benefits

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

 

27                         Invesco Municipal Income Opportunities Trust

NOTE 6—Cash Balances and Borrowings

The Trust is permitted to temporarily carry a negative or overdrawn balance in its account with State Street Bank and Trust Company, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Trust may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.

Inverse floating rate obligations resulting from the transfer of bonds to TOB Trusts are accounted for as secured borrowings. The average floating rate notes outstanding and average annual interest and fee rate related to inverse floating rate note obligations during the year ended February 28, 2018 were $69,384,000 and 1.54%, respectively.

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

Tax Character of Distributions to Shareholders Paid During the Fiscal Years Ended February 28, 2018 and 2017:

 

     2018        2017  

Ordinary income — tax-exempt income

   $ 19,596,943        $ 19,127,714  

Ordinary income — tax-exempt VMTP Shares

     215,071          —  

Total distributions

   $ 19,812,014        $ 19,127,714  

Tax Components of Net Assets at Period-End:

 

     2018  

Undistributed ordinary income

   $ 1,132,362  

Net unrealized appreciation — investments

     23,063,702  

Temporary book/tax differences

     (215,477 ) 

Capital loss carryforward

     (20,562,253 ) 

Shares of beneficial interest

     348,397,891  

Total net assets

   $ 351,816,225  

The difference between book-basis and tax-basis unrealized appreciation (depreciation) is due to differences in the timing of recognition of gains and losses on investments for tax and book purposes. The Trust’s net unrealized appreciation difference is attributable primarily to book to tax accretion and amortization differences and defaulted bonds.

The temporary book/tax differences are a result of timing differences between book and tax recognition of income and/or expenses. The Trust’s temporary book/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 of capital loss carryforward actually available for the Trust to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-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 limited under the Internal Revenue Code and related regulations based on the results of future transactions.

The Trust has a capital loss carryforward as of February 28, 2018, which expires as follows:

 

Capital Loss Carryforward*  
Expiration   Short-Term        Long-Term        Total  

February 28, 2019

   $ 3,761,358        $ —        $ 3,761,358  

Not subject to expiration

     4,932,283          11,868,612          16,800,895  
    $ 8,693,641        $ 11,868,612        $ 20,562,253  

 

* Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization.

NOTE 8—Investment Transactions

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Trust during the year ended February 28, 2018 was $89,776,847 and $56,697,827, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

 

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis  

Aggregate unrealized appreciation of investments

   $ 35,896,940  

Aggregate unrealized (depreciation) of investments

     (12,833,238 ) 

Net unrealized appreciation of investments

   $ 23,063,702  

Cost of investments for tax purposes is $424,772,461.

 

28                         Invesco Municipal Income Opportunities Trust

NOTE 9—Reclassification of Permanent Differences

Primarily as a result of differing book/tax treatment of expired capital loss carryforward, on February 28, 2018, undistributed net investment income was increased by $86,350, undistributed net realized gain (loss) was increased by $8,947,196 and shares of beneficial interest was decreased by $9,033,546. This reclassification had no effect on the net assets of the Trust.

NOTE 10—Common Shares of Beneficial Interest

Transactions in common shares of beneficial interest were as follows:

 

    Years ended February 28,  
     2018        2017  

Beginning shares

     47,455,306          47,425,494  

Shares issued through dividend reinvestment

     38,251          29,812  

Ending shares

     47,493,557          47,455,306  

The Trust may, when appropriate, purchase shares in the open market or in privately negotiated transactions at a price not above market value or net asset value, whichever is lower at the time of purchase.

NOTE 11—Variable Rate Muni Term Preferred Shares

On November 1, 2017, the Trust issued 300 Series 2020 VMTP Shares, with a liquidation preference of $100,000 per share, pursuant to an offering exempt from registration under the 1933 Act. VMTP Shares are a floating-rate form of preferred shares with a mandatory redemption date and are considered debt for financial reporting purposes. The Trust is required to redeem all outstanding VMTP Shares on November 1, 2020, unless earlier redeemed, repurchased or extended. VMTP Shares are subject to optional and mandatory redemption in certain circumstances. The redemption price per share is equal to the sum of the liquidation value per share plus any accumulated but unpaid dividends and a redemption premium, if any. On or prior to the redemption date, the Trust will be required to segregate assets having a value equal to 110% of the redemption amount.

The Trust incurred costs in connection with the issuance of the VMTP Shares. These costs are recorded as a deferred charge and are amortized over the 3 year life of the VMTP Shares. Amortization of these costs is included in Interest, facilities and maintenance fees on the Statement of Operations, and the unamortized balance is included in the value of Variable rate muni term preferred shares on the Statement of Assets and Liabilities.

Dividends paid on the VMTP Shares (which are treated as interest expense for financial reporting purposes) are declared daily and paid monthly. As of February 28, 2018, the dividend rate is equal to the Securities Industry and Financial Markets Association Municipal Swap Index (the “SIFMA” Index) plus a spread of 1.05%, which is based on the long term preferred share ratings assigned to the VMTP Shares by a ratings agency. The average aggregate liquidation preference outstanding and the average annualized dividend rate of the VMTP Shares during the year ended February 28, 2018 were $30,000,000 and 2.18%, respectively.

The Trust utilizes the VMTP Shares as leverage in order to enhance the yield of its common shareholders. The primary risk associated with VMTP Shares is exposing the net asset value of the common shares and total return to increased volatility if the value of the Trust decreases while the value of the VMTP Shares remain unchanged. Fluctuations in the dividend rates on the VMTP Shares can also impact the Trust’s yield or its distributions to common shareholders. The Trust is subject to certain restrictions relating to the VMTP Shares, such as maintaining certain asset coverage and leverage ratio requirements. Failure to comply with these restrictions could preclude the Trust from declaring any distributions to common shareholders or purchasing common shares and/or could trigger an increased rate which, if not cured, could cause the mandatory redemption of VMTP Shares at the liquidation preference plus any accumulated but unpaid dividends.

The liquidation preference of VMTP Shares, which approximates fair value, is recorded as a liability under the caption Variable rate muni term preferred shares on the Statement of Assets and Liabilities. The fair value of VMTP Shares is expected to be approximately their liquidation preference so long as the credit rating on the VMTP shares, and therefore the “spread” on the VMTP shares (determined in accordance with the VMTP shares’ governing document) remains unchanged. At period-end, the Trust’s Adviser has determined that fair value of VMTP shares is approximately their liquidation preference. Fair value could vary if market conditions change materially. Unpaid dividends on VMTP Shares are recognized as Accrued interest expense on the Statement of Assets and Liabilities. Dividends paid on VMTP Shares are recognized as a component of Interest, facilities and maintenance fees on the Statement of Operations.

NOTE 12—Dividends

The Trust declared the following dividends to common shareholders from net investment income subsequent to February 28, 2018:

 

Declaration Date   Amount per Share        Record Date        Payable Date  

March 1, 2018

   $ 0.0344          March 15, 2018          March 29, 2018  

April 2, 2018

   $ 0.0344          April 17, 2018          April 30, 2018  

 

29                         Invesco Municipal Income Opportunities Trust

NOTE 13—Financial Highlights

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

 

    Years ended February 28,      Year ended
February 29,
2016		      Years ended February 28,  
     2018     2017         2015      2014  

Net asset value per common share, beginning of period

   $ 7.44     $ 7.65      $ 7.58      $ 7.05      $ 7.56  

Net investment income(a)

     0.42       0.41        0.42        0.40        0.42  

Net gains (losses) on securities (both realized and unrealized)

     (0.04 )      (0.22 )       0.04        0.53        (0.51 ) 

Total from investment operations

     0.38       0.19        0.46        0.93        (0.09 ) 

Less dividends paid to common shareholders from net investment income

     (0.41 )      (0.40 )       (0.39 )       (0.40 )       (0.42 ) 

Net asset value per common share, end of period

   $ 7.41     $ 7.44      $ 7.65      $ 7.58      $ 7.05  

Market value per common share, end of period

   $ 7.53     $ 7.60      $ 7.43      $ 6.99      $ 6.52  

Total return at net asset value(b)

     5.19 %      2.51 %       6.73 %       13.96 %       (0.53 )% 

Total return at market value(c)

     4.64 %      7.82 %       12.41 %       13.63 %       (4.21 )% 

Net assets applicable to common shares, end of period (000’s omitted)

   $ 351,816     $ 353,295      $ 362,645      $ 359,602      $ 334,426  

Portfolio turnover rate(d)

     13 %      14 %       7 %       11 %       24 % 

Ratios/supplemental data based on average net assets applicable to common shares:

 

           

Ratio of expenses:

             

With fee waivers and/or expense reimbursements

     1.20 %(e)      0.98 %       0.86 %       0.79 %       0.72 % 

With fee waivers and/or expense reimbursements excluding interest, facilities and maintenance fees

     0.83 %(e)      0.76 %       0.74 %       0.69 %       0.67 % 

Without fee waivers and/or expense reimbursements

     1.20 %(e)      0.98 %       0.86 %       0.84 %       0.77 % 

Ratio of net investment income

     5.63 %(e)      5.33 %       5.58 %       5.51 %       5.92 % 

Senior securities:

 

           

Total amount of preferred shares outstanding (000’s omitted)

   $ 30,000       N/A        N/A        N/A        N/A  

Asset coverage per preferred share(f)

   $ 1,272,721       N/A        N/A        N/A        N/A  

Liquidating preference per preferred share

   $ 100,000       N/A        N/A        N/A        N/A  

 

(a)  Calculated using average shares outstanding.
(b)  Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Not annualized for periods less than one year, if applicable.
(c)  Total return assumes an investment at the common share market price at the beginning of the period indicated, reinvestment of all distributions for the period in accordance with the Trust’s dividend reinvestment plan, and sale of all shares at the closing common share market price at the end of the period indicated. Not annualized for periods less than one year, if applicable.
(d)  Portfolio turnover is not annualized for periods less than one year, if applicable.
(e)  Ratios are based on average daily net assets applicable to common shares (000’s omitted) of $358,327.
(f)  Calculated by subtracting the Trust’s total liabilities (not including preferred shares at liquidation value) from the Trust’s total assets and dividing this by preferred shares outstanding.

N/A – Not applicable

 

30                         Invesco Municipal Income Opportunities Trust

Report of Independent Registered Public Accounting Firm

 

To the Board of Trustees and Shareholders of Invesco Municipal Income Opportunities Trust

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Invesco Municipal Income Opportunities Trust (the “Trust”) as of February 28, 2018, the related statements of operations and cash flows for the year ended February 28, 2018, the statement of changes in net assets for each of the two years in the period ended February 28, 2018, including the related notes, and the financial highlights for each of the five years in the period ended February 28, 2018 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Trust as of February 28, 2018, the results of its operations and its cash flows for the year then ended, the changes in its net assets for each of the two years in the period ended February 28, 2018 and the financial highlights for each of the five years in the period ended February 28, 2018 in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Trust’s management. Our responsibility is to express an opinion on the Trust’s financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Trust in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of February 28, 2018 by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

Houston, TX

April 27, 2018

We have served as the auditor of one or more of the investment companies in the Invesco/PowerShares group of investment companies since at least 1995. We have not determined the specific year we began serving as auditor.

 

31                         Invesco Municipal Income Opportunities Trust

Tax Information

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

The following distribution information is being provided as required by the Internal Revenue Code or to meet a specific state’s requirement.

The Trust designates the following amounts or, if subsequently determined to be different, the maximum amount allowable for its fiscal year ended February 28, 2018:

 

Federal and State Income Tax

  

Qualified Dividend Income*

     0 % 

Corporate Dividends Received Deduction*

     0 % 

U.S. Treasury Obligations*

     0 % 

Tax-Exempt Interest Dividends*

     100 % 

 

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

 

32                         Invesco Municipal Income Opportunities Trust

Proxy Results

A Joint Annual Meeting (“Meeting”) of Shareholders of Invesco Municipal Income Opportunities Trust (the “Fund”) was held on September 8, 2017. The Meeting was held for the following purpose:

 

(1) Election of Trustees by Common Shareholders.

The results of the voting on the above matter were as follows:

 

     Matter    Votes For       

Votes

Withheld

  
(1)   David C. Arch      43,500,782          1,606,711  
  Teresa M. Ressel      43,140,038          1,967,455  
  Larry Soll      43,283,715