AIM V.I. Mid Cap Core Equity Fund Semiannual Report to Shareholders

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AIM V.I. Mid Cap Core Equity Fund Semiannual Report to Shareholders " June 30, 2009 The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and four th quarters, the lists appear in the Fund 9s semiannual and annual reports to shareholders.

For the first and third quarters, the F und files the lists with the Securities and Exchange Commission (SEC) on Form N-Q. The Fund 9s Form N-Q filings are available on the SEC Web site, sec.gov. Copies of the Fund 9s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C.

You can obtain information on the operation of the Public Reference Room, including information about duplicating fee char g- es, by calling 202 942 8090 or 800 732 0330, or by electronic request at the following E-mail address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-07452 and 033-57340. The Fund 9s most recent portfolio holdings, as filed on Form N-Q, have also been made available to insurance companies issuing variable annuity contracts and variable life insurance polici es ( cvariable products d) that invest in the Fund.

A description of the ... more. less.

policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securiti es is available without charge, upon request, from our Client Services department at 800 410 4246 or on the Invesco Aim Web site, invescoaim.com. On the home page, scroll down and click on Proxy Policy. The information is also available on the SEC Web site, sec.gov. Information regarding how the Fund voted proxies related to its portfolio securities during the 12 months ended June 30, 2009, is available at our Web site. Go to invescoaim.com, access the About Us tab, click on Required Notices and then click on Proxy Vot ing Activity. Next, select the Fund from the drop-down menu. The information is also available on the SEC Web site, sec.gov. It is anticipated that on or about the end of the fourth quarter of 2009, Invesco Aim Advisors, Inc., Invesco Aim Capital Manag ement, Inc., Invesco Private Asset Management, Inc. and Invesco Global Asset Management (N.A.), Inc. will be merged into Invesco Insti tutional (N.A.), Inc., and the consolidated adviser firm will be renamed Invesco Advisers, Inc. Additional information will be posted at invescoaim.com on or about the end of the fourth quarter of 2009. This report must be accompanied or preceded by a currently effective Fund prospectus and variable product prospectus, which contain more complete information, including sales charges and expenses. Investors should read each carefully before investing. Invesco Aim Distributors, Inc. AIM V.I. Mid Cap Core Equity Fund The performance of the Fund 9s Series I and Series II share classes will differ primarily due to different class expenses. The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please contact your variable product issuer or financial advisor for the most recent month-end variable product performance. Perfor- mance figures reflect Fund expenses, reinvested distributions and changes in net asset value. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares. The net annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Series I and Series II shares was 1.04% and 1.29%, respec- tively. 1,2 The total annual Fund operat- ing expense ratio set forth in the most recent Fund prospectus as of the date of this report for Series I and Series II shares was 1.07% and 1.32%, respec- tively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report. AIM V.I. Mid Cap Core Equity Fund, a series portfolio of AIM Variable Insurance Funds, is currently offered through insurance companies issuing variable products. You cannot pur- chase shares of the Fund directly. Performance figures given represent the Fund and are not intended to reflect actual variable product values. They do not reflect sales charges, expenses and fees assessed in connection with a variable product. Sales charges, expenses and fees, which are deter- mined by the variable product issuers, will vary and will lower the total return. The most recent month-end performance data at the Fund level, excluding variable product charges, is available on the Invesco Aim auto- mated information line, 866 702 4402. As mentioned above, for the most recent month-end performance including variable product charges, please contact your variable product issuer or financial advisor. 1 Total annual operating expenses less any contractual fee waivers and/or expense reimbursements by the advisor in effect through at least April 30, 2010. See current prospectus for more information. 2 Total annual operating expenses less contractual advisory fee waivers by the advisor in effect through at least June 30, 2010. See current prospectus for more information. Performance summary Fund vs. Indexes Cumulative total returns, 12/31/08 to 6/30/09, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower. Series I Shares 7.10% Series II Shares 6.92 S&P 500 Index ¼ (Broad Market Index) 3.19 Russell Midcap Index ¼ (Style-SpeciM c Index) 9.96 Lipper VUF Mid-Cap Core Funds Index ¼ (Peer Group Index) 5.56 ¼ Lipper Inc. The S&P 500 ® Index is a market capitalization-weighted index covering all major areas of the U.S. economy. It is not the 500 largest companies, but rather the most widely held 500 companies chosen with respect to market size, liquidity and their industry. The Russell Midcap ® Index measures the performance of the 800 smallest companies in the Russell 1000 ® Index, which represent approximately 30% of the total market capitalization of the Russell 1000 Index. The Russell Midcap Index and the Russell 1000 Index are trademarks/service marks of the Frank Russell Com- pany. Russell ® is a trademark of the Frank Russell Company. The Lipper VUF Mid-Cap Core Funds Index is an equally weighted representa- tion of the largest variable insurance underlying funds in the Lipper Mid-Cap Core Funds category. These funds have an average price-to-earnings ratio, price-to- book ratio, and three-year sales-per-share growth value, compared to the S&P MidCap 400 Index. The Fund is not managed to track the performance of any particular index, including the indexes deM ned here, and consequently, the performance of the Fund may deviate signiM cantly from the performance of the indexes. A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reN ect sales charges. Performance of the peer group reN ects fund expenses; performance of a market index does not. Fund Performance Average Annual Total Returns As of 6/30/09 Series I Shares Inception (9/10/01) 4.30% 5 Years 1.11 1 Year 319.11 Series II Shares Inception (9/10/01) 4.05% 5 Years 0.85 1 Year 319.33 ScheduleofInvestments (a) June30,2009 (Unaudited) SharesValue CommonStocks&OtherEquityInterests 383.34% Aerospace&Defense 33.67% GoodrichCorp.99,269$4,960,472 ITTCorp.95,2964,240,672 PrecisionCastpartsCorp.85,1716,220,038 15,421,182 ApplicationSoftware 30.91% AdobeSystemsInc. (b) 135,1843,825,707 AssetManagement&CustodyBanks 31.51% LeggMason,Inc.260,2186,344,115 CommunicationsEquipment 33.99% JuniperNetworks,Inc. (b)(c) 174,1554,110,058 Motorola,Inc. (b) 1,018,6856,753,882 Polycom,Inc. (b)(c) 291,8615,916,022 16,779,962 ComputerStorage&Peripherals 31.07% NetApp,Inc. (b) 226,9244,474,941 Construction,FarmMachinery&Heavy Trucks 30.41% JoyGlobalInc. (c) 48,0431,716,096 Distributors 31.13% GenuinePartsCo. (c) 140,8524,726,993 ElectricalComponents&Equipment 30.27% RockwellAutomation,Inc. (c) 35,5441,141,673 ElectronicEquipment&Instruments 31.28% AgilentTechnologies,Inc. (b) 264,9935,382,008 ElectronicManufacturingServices 31.05% MolexInc. (c) 284,9444,430,879 Environmental&FacilitiesServices 31.91% RepublicServices,Inc.328,3928,016,049 FoodRetail 31.81% SafewayInc.374,1787,622,006 GasUtilities 31.23% UGICorp.203,2185,180,027 HealthCareEquipment 36.15% BostonScientificCorp. (b) 323,0553,275,778 Hospira,Inc. (b) 161,2586,211,658 TeleflexInc.88,5043,967,634 SharesValue HealthCareEquipment 3(continued) VarianMedicalSystems,Inc. (b)(c) 172,412$6,058,558 ZimmerHoldings,Inc. (b) 148,6886,334,109 25,847,737 HealthCareFacilities 30.56% Rhoen-KlinikumAG(Germany)106,6422,357,242 HealthCareServices 31.95% LaboratoryCorp.ofAmericaHoldings (b) 46,9413,182,131 QuestDiagnosticsInc. (c) 88,5544,997,102 8,179,233 HealthCareSupplies 30.13% Immucor,Inc. (b) 39,217539,626 HouseholdProducts 31.11% EnergizerHoldings,Inc. (b)(c) 89,5854,679,920 IndustrialConglomerates 32.14% TycoInternationalLtd.(Switzerland)346,1908,994,016 IndustrialGases 31.11% AirProductsandChemicals,Inc.72,4814,681,548 IndustrialMachinery 34.63% AtlasCopcoA.B. 3ClassA(Sweden) (c) 508,2525,085,186 DanaherCorp.87,4365,398,299 PallCorp.155,1694,121,289 ParkerHannifinCorp. (c) 112,8604,848,465 19,453,239 InsuranceBrokers 30.78% Marsh&McLennanCos.,Inc.162,7313,275,775 ITConsulting&OtherServices 31.70% AmdocsLtd. (b) 332,6207,134,699 LifeSciencesTools&Services 35.55% PharmaceuticalProductDevelopment,Inc.246,6505,727,213 TechneCorp. (c) 69,4334,430,520 ThermoFisherScientific,Inc. (b) 185,6317,568,176 WatersCorp. (b)(c) 108,9905,609,715 23,335,624 Multi-SectorHoldings 30.29% PICOHoldings,Inc. (b)(c) 42,4301,217,741 OfficeElectronics 31.33% XeroxCorp.860,3525,575,081 SeeaccompanyingNotestoFinancialStatementswhichareanintegralpartofthefinancialstatements. AIMV.I.MidCapCoreEquityFund SharesValue OfficeServices&Supplies 30.77% PitneyBowesInc. (c) 146,684$3,216,780 Oil&GasDrilling 30.77% Helmerich&Payne,Inc. (c) 104,8893,237,923 Oil&GasEquipment&Services 32.26% BJServicesCo. (c) 466,6296,360,153 Dresser-RandGroup,Inc. (b) 120,0203,132,522 9,492,675 Oil&GasExploration&Production 33.79% ChesapeakeEnergyCorp. (c) 105,0512,083,161 NewfieldExplorationCo. (b) 200,9966,566,539 PennWestEnergyTrust(Canada)169,1982,153,891 PioneerNaturalResourcesCo. (c) 72,2371,842,044 SouthwesternEnergyCo. (b) 83,8393,257,145 15,902,780 Oil&GasStorage&Transportation 31.45% WilliamsCos.,Inc.(The)390,0486,088,649 PackagedFoods&Meats 33.51% CadburyPLC(UnitedKingdom)1,087,9979,292,385 DelMonteFoodsCo.211,9741,988,316 SaraLeeCorp.356,7123,481,509 14,762,210 PersonalProducts 30.90% AvonProducts,Inc.146,3173,772,052 Pharmaceuticals 32.29% Allergan,Inc.134,6196,405,172 TevaPharmaceuticalIndustriesLtd. 3ADR(Israel)64,8883,201,574 9,606,746 Property&CasualtyInsurance 33.43% AxisCapitalHoldingsLtd.243,6666,379,176 ProgressiveCorp.(The) (b) 530,1298,010,249 14,389,425 RegionalBanks 30.79% PNCFinancialServicesGroup,Inc.85,4333,315,655 SharesValue Semiconductors 33.51% LinearTechnologyCorp. (c) 294,187$6,869,266 MicrochipTechnologyInc. (c) 105,8032,385,858 Xilinx,Inc.269,3215,510,308 14,765,432 SpecializedFinance 32.19% Moody 9sCorp. (c) 349,3729,205,952 SpecialtyChemicals 34.21% InternationalFlavors&FragrancesInc. (c) 208,2996,815,544 Sigma-AldrichCorp. (c) 219,03610,855,424 17,670,968 SystemsSoftware 32.98% SymantecCorp. (b) 805,47412,533,175 Thrifts&MortgageFinance 32.82% People 9sUnitedFinancialInc. (c) 788,37211,857,115 TotalCommonStocks&OtherEquityInterests (Cost$368,344,431)350,150,656 PreferredStocks 32.30% HouseholdProducts 32.30% HenkelAG&Co.KGaA(Germany) 3Pfd. (Cost$12,485,398) (c) 310,0939,685,265 MoneyMarketFunds 314.57% LiquidAssetsPortfolio 3InstitutionalClass (d) 30,603,94930,603,949 PremierPortfolio 3InstitutionalClass (d) 30,603,94930,603,949 TotalMoneyMarketFunds(Cost$61,207,898)61,207,898 TOTALINVESTMENTS(excludinginvestments purchasedwithcashcollateralfromsecuritieson loan) 3100.21%(Cost$442,037,727)421,043,819 InvestmentsPurchasedwithCashCollateralfrom SecuritiesonLoan MoneyMarketFunds 317.87% LiquidAssetsPortfolio 3InstitutionalClass (Cost$75,076,593) (d)(e) 75,076,59375,076,593 TOTALINVESTMENTS 3118.08%(Cost$517,114,320)496,120,412 OTHERASSETSLESSLIABILITIES 3(18.08)%(75,980,117) NETASSETS 3100.00%$420,140,295 InvestmentAbbreviations: ADR 3AmericanDepositaryReceipt Pfd. 3Preferred NotestoScheduleofInvestments: (a) Industryand/orsectorclassificationsusedinthisreportaregenerallyaccordingtotheGlobalIndustryClassificationStandard,whichwasdevel opedbyandistheexclusive propertyandaservicemarkofMSCIInc.andStandard&Poor 9s. (b) Non-incomeproducingsecurity. (c) AlloraportionofthissecuritywasoutonloanatJune30,2009. (d) ThemoneymarketfundandtheFundareaffiliatedbyhavingthesameinvestmentadvisor. (e) Thesecurityhasbeensegregatedtosatisfythecommitmenttoreturnthecashcollateralreceivedinsecuritieslendingtransactionsupontheborrow er 9sreturnofthe securitiesloaned.SeeNote1I. SeeaccompanyingNotestoFinancialStatementswhichareanintegralpartofthefinancialstatements. AIMV.I.MidCapCoreEquityFund PortfolioComposition Bysector,basedonNetAssets asofJune30,2009 InformationTechnology17.8% HealthCare16.6 Industrials13.8 Financials11.8 ConsumerStaples9.7 Energy8.3 Materials5.3 Utilities1.2 ConsumerDiscretionary1.1 MoneyMarketFundsPlusOtherAssetsLessLiabilities14.4 SeeaccompanyingNotestoFinancialStatementswhichareanintegralpartofthefinancialstatements. AIMV.I.MidCapCoreEquityFund StatementofAssetsandLiabilities June30,2009 (Unaudited) Assets: Investments,atvalue(Cost$380,829,829)*$359,835,921 Investmentsinaffiliatedmoneymarketfunds,atvalueandcost136,284,491 Totalinvestments,atvalue(Cost$517,114,320)496,120,412 Receivablesfor: Investmentssold2,126,584 Fundsharessold120,153 Dividends572,278 Investmentfortrusteedeferredcompensationandretirementplans13,498 Totalassets498,952,925 Liabilities: Payablesfor: Investmentspurchased2,178,339 Fundsharesreacquired1,167,970 Foreigncurrencycontractsoutstanding3,228 Collateraluponreturnofsecuritiesloaned75,076,593 Accruedfeestoaffiliates283,794 Accruedotheroperatingexpenses44,251 Trusteedeferredcompensationandretirementplans58,455 Totalliabilities78,812,630 Netassetsapplicabletosharesoutstanding$420,140,295 Netassetsconsistof: Sharesofbeneficialinterest$496,046,482 Undistributednetinvestmentincome7,619,139 Undistributednetrealizedgain(loss)(62,528,764) Unrealizedappreciation(depreciation)(20,996,562) $420,140,295 NetAssets: SeriesI$367,923,304 SeriesII$52,216,991 Sharesoutstanding,$0.001parvaluepershare,unlimited numberofsharesauthorized: SeriesI39,991,215 SeriesII5,730,515 SeriesI: Netassetvaluepershare$9.20 SeriesII: Netassetvaluepershare$9.11 *AtJune30,2009,securitieswithanaggregatevalueof$72,706,358wereonloanto brokers. StatementofOperations ForthesixmonthsendedJune30,2009 (Unaudited) Investmentincome: Dividends(netofforeignwithholdingtaxesof$103,148)$3,713,158 Dividendsfromaffiliatedmoneymarketfunds(includessecurities lendingincomeof$185,175)374,901 Totalinvestmentincome4,088,059 Expenses: Advisoryfees1,388,735 Administrativeservicesfees523,053 Custodianfees10,961 Distributionfees 4SeriesII57,541 Transferagentfees11,993 Trustees 9andofficers 9feesandbenefits17,003 Other26,385 Totalexpenses2,035,671 Less:Feeswaived(30,273) Netexpenses2,005,398 Netinvestmentincome2,082,661 Realizedandunrealizedgain(loss)from: Netrealizedgain(loss)from: Investmentsecurities(54,462,698) Foreigncurrencies106,766 Foreigncurrencycontracts(672,878) (55,028,810) Changeinnetunrealizedappreciation(depreciation)of: Investmentsecurities79,124,869 Foreigncurrencies(1,808) Foreigncurrencycontracts286,851 79,409,912 Netrealizedandunrealizedgain24,381,102 Netincreaseinnetassetsresultingfromoperations$26,463,763 SeeaccompanyingNotestoFinancialStatementswhichareanintegralpartofthefinancialstatements. AIMV.I.MidCapCoreEquityFund StatementofChangesinNetAssets ForthesixmonthsendedJune30,2009andtheyearendedDecember31,2008 (Unaudited) June30, 2009 December31, 2008 Operations: Netinvestmentincome$2,082,661$5,619,494 Netrealizedgain(loss)(55,028,810)(7,003,370) Changeinnetunrealizedappreciation(depreciation)79,409,912(172,441,157) Netincrease(decrease)innetassetsresultingfromoperations26,463,763(173,825,033) Distributionstoshareholdersfromnetinvestmentincome: SeriesI 4(7,372,511) SeriesII 4(829,282) Totaldistributionsfromnetinvestmentincome 4(8,201,793) Distributionstoshareholdersfromnetrealizedgains: SeriesI 4(53,615,148) SeriesII 4(7,340,647) Totaldistributionsfromnetrealizedgains 4(60,955,795) Sharetransactions 3net: SeriesI(8,332,892)(19,282,609) SeriesII732,110(1,143,742) Netincrease(decrease)innetassetsresultingfromsharetransactions(7,600,782)(20,426,351) Netincrease(decrease)innetassets18,862,981(263,408,972) Netassets: Beginningofperiod401,277,314664,686,286 Endofperiod(includesundistributednetinvestmentincomeof$7,619,139and$5,536,478,respectively)$420,140,295$401,277,314 SeeaccompanyingNotestoFinancialStatementswhichareanintegralpartofthefinancialstatements. AIMV.I.MidCapCoreEquityFund NotestoFinancialStatements June30,2009 (Unaudited) NOTE1 4SignificantAccountingPolicies AIMV.I.MidCapCoreEquityFund(the cFund d)isaseriesportfolioofAIMVariableInsuranceFunds(the cTrust d).TheTrustisaDelawarestatutorytru st registeredundertheInvestmentCompanyActof1940,asamended(the c1940Act d),asanopen-endseriesmanagementinvestmentcompanyconsistingof twenty-oneseparateportfolios,(eachconstitutinga cFund d).Theassets,liabilitiesandoperationsofeachportfolioareaccountedforseparate ly.Information presentedinthesefinancialstatementspertainsonlytotheFund.MattersaffectingeachFundorclasswillbevotedonexclusivelybytheshareholde rsofsuch Fundorclass.CurrentSecuritiesandExchangeCommission( cSEC d)guidance,however,requiresparticipatinginsurancecompaniesofferingsepara teaccounts tovotesharesproportionallyinaccordancewiththeinstructionsofthecontractownerswhoseinvestmentsarefundedbysharesofeachFundorclass. TheFund 9sinvestmentobjectiveislong-termgrowthofcapital. TheFundcurrentlyofferstwoclassesofshares,SeriesIandSeriesII,bothofwhichareofferedtoinsurancecompanyseparateaccountsfundingvaria ble annuitycontractsandvariablelifeinsurancepolicies( cvariableproducts d). ThefollowingisasummaryofthesignificantaccountingpoliciesfollowedbytheFundinthepreparationofitsfinancialstatements. A.SecurityValuations 4Securities,includingrestrictedsecurities,arevaluedaccordingtothefollowingpolicy. Asecuritylistedortradedonanexchange(exceptconvertiblebonds)isvaluedatitslastsalespriceorofficialclosingpriceasofthecloseofthe customarytradingsessionontheexchangewherethesecurityisprincipallytraded,orlackinganysalesorofficialclosingpriceonaparticularday ,the securitymaybevaluedattheclosingbidpriceonthatday.Securitiestradedintheover-the-countermarketarevaluedbasedonpricesfurnishedby independentpricingservicesormarketmakers.Whensuchsecuritiesarevaluedbyanindependentpricingservicetheymaybeconsideredfairvalued. Futurescontractsarevaluedatthefinalsettlementpricesetbyanexchangeonwhichtheyareprincipallytraded.Listedoptionsarevaluedatthemea n betweenthelastbidandaskpricesfromtheexchangeonwhichtheyareprincipallytraded.Optionsnotlistedonanexchangearevaluedbyan independentsourceatthemeanbetweenthelastbidandaskprices.Forpurposesofdeterminingnetassetvaluepershare,futuresandoptioncontracts generallyarevalued15minutesafterthecloseofthecustomarytradingsessionoftheNewYorkStockExchange( cNYSE d). Investmentsinopen-endandclosed-endregisteredinvestmentcompaniesthatdonottradeonanexchangearevaluedattheendofdaynetassetvalue pershare.Investmentsinopen-endandclosed-endregisteredinvestmentcompaniesthattradeonanexchangearevaluedatthelastsalespriceoroffi cial closingpriceasofthecloseofthecustomarytradingsessionontheexchangewherethesecurityisprincipallytraded. Debtobligations(includingconvertiblebonds)andunlistedequitiesarefairvaluedusinganevaluatedquoteprovidedbyanindependentpricingse rvice. Evaluatedquotesprovidedbythepricingservicemaybedeterminedwithoutexclusiverelianceonquotedprices,andmayreflectappropriatefactors suchas institution-sizetradinginsimilargroupsofsecurities,developmentsrelatedtospecificsecurities,dividendrate,yield,quality,typeofiss ue,couponrate, maturity,individualtradingcharacteristicsandothermarketdata.Short-termobligations,includingcommercialpaper,having60daysorlessto maturity arerecordedatamortizedcostwhichapproximatesvalue.Debtsecuritiesaresubjecttointerestrateandcreditrisks.Inaddition,alldebtsecurit iesinvolve someriskofdefaultwithrespecttointerestand/orprincipalpayments. Foreignsecurities(includingforeignexchangecontracts)areconvertedintoU.S.dollaramountsusingtheapplicableexchangeratesasoftheclos eof theNYSE.Ifmarketquotationsareavailableandreliableforforeignexchangetradedequitysecurities,thesecuritieswillbevaluedatthemarket quotations.BecausetradinghoursforcertainforeignsecuritiesendbeforethecloseoftheNYSE,closingmarketquotationsmaybecomeunreliable. If betweenthetimetradingendsonaparticularsecurityandthecloseofthecustomarytradingsessionontheNYSE,eventsoccurthataresignificantand maketheclosingpriceunreliable,theFundmayfairvaluethesecurity.Iftheeventislikelytohaveaffectedtheclosingpriceofthesecurity,these curity willbevaluedatfairvalueingoodfaithusingproceduresapprovedbytheBoardofTrustees.Adjustmentstoclosingpricestoreflectfairvaluemayal sobe basedonascreeningprocessofanindependentpricingservicetoindicatethedegreeofcertainty,basedonhistoricaldata,thattheclosingpricein the principalmarketwhereaforeignsecuritytradesisnotthecurrentvalueasofthecloseoftheNYSE.Foreignsecuritiesmeetingtheapproveddegreeof certaintythatthepriceisnotreflectiveofcurrentvaluewillbepricedattheindicationoffairvaluefromtheindependentpricingservice.Multip lefactors maybeconsideredbytheindependentpricingserviceindeterminingadjustmentstoreflectfairvalueandmayincludeinformationrelatingtosector indices,AmericanDepositaryReceiptsanddomesticandforeignindexfutures.Foreignsecuritiesmayhaveadditionalrisksincludingexchangerat e changes,potentialforsharplydevaluedcurrenciesandhighinflation,politicalandeconomicalupheaval,therelativelackofissuerinformation ,relatively lowmarketliquidityandthepotentiallackofstrictfinancialandaccountingcontrolsandstandards. Securitiesforwhichmarketpricesarenotprovidedbyanyoftheabovemethodsmaybevaluedbaseduponquotesfurnishedbyindependentsources. ThelastbidpricemaybeusedtovalueequitysecuritiesandCorporateLoans.Themeanbetweenthelastbidandaskedpricesmaybeusedtovaluedebt obligationsotherthanCorporateLoans. Securitiesforwhichmarketquotationsarenotreadilyavailableorareunreliablearevaluedatfairvalueasdeterminedingoodfaithbyorunderthe supervisionoftheTrust 9sofficersfollowingproceduresapprovedbytheBoardofTrustees.Issuerspecificevents,markettrends,bid/askquoteso fbrokersand informationprovidersandothermarketdatamaybereviewedinthecourseofmakingagoodfaithdeterminationofasecurity 9sfairvalue. Valuationschangeinresponsetomanyfactorsincludingthehistoricalandprospectiveearningsoftheissuer,thevalueoftheissuer 9sassets,gene ral economicconditions,interestrates,investorperceptionsandmarketliquidity.Becauseoftheinherentuncertaintiesofvaluation,thevaluesre flectedinthe financialstatementsmaymateriallydifferfromthevaluereceiveduponactualsaleofthoseinvestments. B.SecuritiesTransactionsandInvestmentIncome 4Securitiestransactionsareaccountedforonatradedatebasis.Realizedgainsorlosses onsalesarecomputedonthebasisofspecificidentificationofthesecuritiessold.Interestincomeisrecordedontheaccrualbasisfromsettlement date. Dividendincomeisrecordedontheex-dividenddate. AIMV.I.MidCapCoreEquityFund TheFundmayperiodicallyparticipateinlitigationrelatedtoFundinvestments.Assuch,theFundmayreceiveproceedsfromlitigationsettlements .Any proceedsreceivedareincludedintheStatementofOperationsasrealizedgain/lossforinvestmentsnolongerheldandasunrealizedgain/lossfor investmentsstillheld. Brokeragecommissionsandmarkupsareconsideredtransactioncostsandarerecordedasanincreasetothecostbasisofsecuritiespurchasedand/ora reductionofproceedsonasaleofsecurities.Suchtransactioncostsareincludedinthedeterminationofrealizedandunrealizedgain(loss)from investmentsecuritiesreportedintheStatementofOperationsandtheStatementofChangesinNetAssetsandtherealizedandunrealizednetgains(lo sses) onsecuritiespershareintheFinancialHighlights.TransactioncostsareincludedinthecalculationoftheFund 9snetassetvalueand,accordingly ,they reducetheFund 9stotalreturns.Thesetransactioncostsarenotconsideredoperatingexpensesandarenotreflectedinnetinvestmentincomereport edin theStatementofOperationsandStatementofChangesinNetAssets,orthenetinvestmentincomepershareandratiosofexpensesandnetinvestment incomereportedintheFinancialHighlights,noraretheylimitedbyanyexpenselimitationarrangementsbetweentheFundandtheadvisor. TheFundallocatesincomeandrealizedandunrealizedcapitalgainsandlossestoaclassbasedontherelativenetassetsofeachclass. C.CountryDetermination 4ForthepurposesofmakinginvestmentselectiondecisionsandpresentationintheScheduleofInvestments,the investmentadvisormaydeterminethecountryinwhichanissuerislocatedand/orcreditriskexposurebasedonvariousfactors.Thesefactorsinclud ethe lawsofthecountryunderwhichtheissuerisorganized,wheretheissuermaintainsaprincipaloffice,thecountryinwhichtheissuerderives50%ormo re ofitstotalrevenuesandthecountrythathastheprimarymarketfortheissuer 9ssecurities,aswellasothercriteria.Amongtheothercriteriathatm aybe evaluatedformakingthisdeterminationarethecountryinwhichtheissuermaintains50%ormoreofitsassets,thetypeofsecurity,financialguaran tees andenhancements,thenatureofthecollateralandthesponsororganization.Countryofissuerand/orcreditriskexposurehasbeendeterminedtobet he UnitedStatesofAmerica,unlessotherwisenoted. D.Distributions 4Distributionsfromincomeandnetrealizedcapitalgain,ifany,aregenerallypaidtoseparateaccountsofparticipatinginsurance companiesannuallyandrecordedonex-dividenddate. E.FederalIncomeTaxes 4TheFundintendstocomplywiththerequirementsofSubchapterMoftheInternalRevenueCodenecessarytoqualifyas aregulatedinvestmentcompanyandtodistributesubstantiallyalloftheFund 9staxableearningstoshareholders.Assuch,theFundwillnotbesubje ctto federalincometaxesonotherwisetaxableincome(includingnetrealizedcapitalgain)thatisdistributedtoshareholders.Therefore,noprovisio nfor federalincometaxesisrecordedinthefinancialstatements. TheFundfilestaxreturnsintheU.S.Federaljurisdictionandcertainotherjurisdictions.GenerallytheFundissubjecttoexaminationsbysuchtax ing authoritiesforuptothreeyearsafterthefilingofthereturnforthetaxperiod. F.Expenses 4FeesprovidedforundertheRule12b-1planofaparticularclassoftheFundandwhicharedirectlyattributabletothatclassarecharged totheoperationsofsuchclass.Allotherexpensesareallocatedamongtheclassesbasedonrelativenetassets. G.AccountingEstimates 4ThepreparationoffinancialstatementsinconformitywithaccountingprinciplesgenerallyacceptedintheUnitedStates ofAmericarequiresmanagementtomakeestimatesandassumptionsthataffectthereportedamountsofassetsandliabilitiesatthedateofthefinanci al statementsandthereportedamountsofrevenuesandexpensesduringthereportingperiodincludingestimatesandassumptionsrelatedtotaxation.A ctual resultscoulddifferfromthoseestimatesbyasignificantamount.Inaddition,managementmonitorsformaterialeventsortransactionsthatmayocc uror becomeknownaftertheperiodenddateandbeforethedatethefinancialstatementsareavailableforissuance.Sucheventsandtransactionsare monitoredthroughthedateofthereportofindependentregisteredpublicaccountingfirmforauditedperiodsand45daysfromtheperiodenddatefora ll otherperiods. H.Indemnifications 4UndertheTrust 9sorganizationaldocuments,eachTrustee,officer,employeeorotheragentoftheTrustisindemnifiedagainst certainliabilitiesthatmayariseoutofperformanceoftheirdutiestotheFund.Additionally,inthenormalcourseofbusiness,theFundentersinto contracts,includingtheFund 9sservicingagreements,thatcontainavarietyofindemnificationclauses.TheFund 9smaximumexposureunderthese arrangementsisunknownasthiswouldinvolvefutureclaimsthatmaybemadeagainsttheFundthathavenotyetoccurred.Theriskofmateriallossas aresultofsuchindemnificationclaimsisconsideredremote. I.SecuritiesLending 4TheFundmaylendportfoliosecuritieshavingamarketvalueuptoone-thirdoftheFund 9stotalassets.Suchloansare securedbycollateralequaltonolessthanthemarketvalueoftheloanedsecuritiesdetermineddailybythesecuritieslendingprovider.Suchcollat eralwill becashordebtsecuritiesissuedorguaranteedbytheU.S.Governmentoranyofitssponsoredagencies.Cashcollateralreceivedinconnectionwithth ese loansisinvestedinshort-termmoneymarketinstrumentsoraffiliatedmoneymarketfundsandisshownassuchontheScheduleofInvestments.Itisthe Fund 9spolicytoobtainadditionalcollateralfromorreturnexcesscollateraltotheborrowerbytheendofthenextbusinessday,followingthevalua tion dateofthesecuritiesloaned.Therefore,thevalueofthecollateralheldmaybetemporarilylessthanthevalueofthesecuritiesonloan.Lendingsec urities entailsariskoflosstotheFundifandtotheextentthatthemarketvalueofthesecuritiesloanedweretoincreaseandtheborrowerdidnotincreasethe collateralaccordingly,andtheborrowerfailstoreturnthesecurities.Uponthefailureoftheborrowertoreturnthesecurities,collateralmaybe liquidated andthesecuritiesmaybepurchasedontheopenmarkettoreplacetheloanedsecurities.TheFundcouldexperiencedelaysandcostsingainingaccessto thecollateral.TheFundbearstheriskofanydeficiencyintheamountofthecollateralavailableforreturntotheborrowerduetoanylossonthe collateralinvested.Dividendsreceivedoncashcollateralinvestmentsforsecuritieslendingtransactions,whicharenetofcompensationtocoun terparties,is includedinDividendsfromaffiliatesontheStatementofOperations.Theaggregatevalueofsecuritiesoutonloanisshownasafootnoteonthe StatementofAssetsandLiabilities,ifany. J.ForeignCurrencyTranslations 4ForeigncurrencyisvaluedatthecloseoftheNYSEbasedonquotationspostedbybanksandmajorcurrency dealers.PortfoliosecuritiesandotherassetsandliabilitiesdenominatedinforeigncurrenciesaretranslatedintoU.S.dollaramountsatdateof valuation. Purchasesandsalesofportfoliosecurities(netofforeigntaxeswithheldondisposition)andincomeitemsdenominatedinforeigncurrenciesaretr anslated intoU.S.dollaramountsontherespectivedatesofsuchtransactions.TheFunddoesnotseparatelyaccountfortheportionoftheresultsofoperation s resultingfromchangesinforeignexchangeratesoninvestmentsandthefluctuationsarisingfromchangesinmarketpricesofsecuritiesheld.The combinedresultsofchangesinforeignexchangeratesandthefluctuationofmarketpricesoninvestments(netofestimatedforeigntaxwithholding) are AIMV.I.MidCapCoreEquityFund includedwiththenetrealizedandunrealizedgainorlossfrominvestmentsintheStatementofOperations.Reportednetrealizedforeigncurrencyga insor lossesarisefrom(i)salesofforeigncurrencies,(ii)currencygainsorlossesrealizedbetweenthetradeandsettlementdatesonsecuritiestransa ctions,and (iii)thedifferencebetweentheamountsofdividends,interest,andforeignwithholdingtaxesrecordedontheFund 9sbooksandtheU.S.dollarequiv alent oftheamountsactuallyreceivedorpaid.Netunrealizedforeigncurrencygainsandlossesarisefromchangesinthefairvaluesofassetsandliabilit ies, otherthaninvestmentsinsecuritiesatfiscalperiodend,resultingfromchangesinexchangerates. TheFundmayinvestinforeignsecuritieswhichmaybesubjecttoforeigntaxesonincome,gainsoninvestmentsorcurrencyrepatriation,aportionof whichmayberecoverable. K.ForeignCurrencyContracts 4TheFundmayenterintoforeigncurrencycontractstomanageorminimizecurrencyorexchangeraterisk.The Fundmayalsoenterintoforeigncurrencycontractsforthepurchaseorsaleofasecuritydenominatedinaforeigncurrencyinorderto clockin dthe U.S.dollarpriceofthatsecurity.Aforeigncurrencycontractisanobligationtopurchaseorsellaspecificcurrencyforanagreed-uponpriceatafu ture date.TheuseofforeigncurrencycontractsdoesnoteliminatefluctuationsinthepriceoftheunderlyingsecuritiestheFundownsorintendstoacqui re butestablishesarateofexchangeinadvance.Fluctuationsinthevalueofthesecontractsaremeasuredbythedifferenceinthecontractdateand reportingdateexchangeratesandarerecordedasunrealizedappreciation(depreciation)untilthecontractsareclosed.Whenthecontractsareclo sed, realizedgains(losses)arerecorded.Realizedandunrealizedgains(losses)onthecontractsareincludedintheStatementofOperations.Themaxim um risksassociatedwithforeigncurrencycontractsincludefailureofthecounterpartytomeetthetermsofthecontractandthevalueoftheforeigncur rency changingunfavorably.TheserisksmaybeinexcessoftheamountsreflectedintheStatementofAssetsandLiabilities. NOTE2 4AdvisoryFeesandOtherFeesPaidtoAffiliates TheTrusthasenteredintoamasterinvestmentadvisoryagreementwithInvescoAimAdvisors,Inc.(the cAdvisor dor cInvescoAim d).Underthetermsof the investmentadvisoryagreement,theFundpaysanadvisoryfeetotheAdvisorbasedontheannualrateoftheFund 9saveragedailynetassetsasfollows: AverageNetAssetsRate First$500million0.725% Next$500million0.70% Next$500million0.675% Over$1.5billion0.65% Underthetermsofamastersub-advisoryagreementapprovedbyshareholdersoftheFundbetweentheAdvisorandeachofInvescoAssetManagement DeutschlandGmbH,InvescoAssetManagementLimited,InvescoAssetManagement(Japan)Limited,InvescoAustraliaLimited,InvescoGlobalAssetMa nagement (N.A.),Inc.,InvescoHongKongLimited,InvescoInstitutional(N.A.),Inc.,InvescoSeniorSecuredManagement,Inc.andInvescoTrimarkLtd.(col lectively,the cAffiliatedSub-Advisors d)theAdvisor,nottheFund,maypay40%ofthefeespaidtotheAdvisortoanysuchAffiliatedSub-Advisor(s)thatprovidedi scretionary investmentmanagementservicestotheFundbasedonthepercentageofassetsallocatedtosuchSub-Advisor(s). TheAdvisorhascontractuallyagreedtowaiveadvisoryfeesand/orreimburseexpensestotheextentnecessarytolimittotalannualoperatingexpens es (excludingcertainitemsdiscussedbelow)ofSeriesIsharesto1.30%andSeriesIIsharesto1.45%ofaveragedailynetassets,throughatleastApril3 0,2010. Indeterminingtheadvisor 9sobligationtowaiveadvisoryfeesand/orreimburseexpenses,thefollowingexpensesarenottakenintoaccount,andcou ldcausethe netannualoperatingexpensestoexceedthenumbersreflectedabove:(i)interest;(ii)taxes;(iii)dividendexpenseonshortsales;(iv)extraordi naryitems; (v)expensesrelatedtoamergerorreorganization,asapprovedbytheFund 9sBoardofTrustees;and(vi)expensesthattheFundhasincurredbutdidnot actuallypaybecauseofanexpenseoffsetarrangement.Currently,inadditiontotheexpensereimbursementarrangementwithInvescoLtd.( cInvesco d)described morefullybelow,theexpenseoffsetarrangementsfromwhichtheFundmaybenefitareintheformofcreditsthattheFundreceivesfrombankswherethe Fundoritstransferagenthasdepositaccountsinwhichitholdsuninvestedcash.ThesecreditsareusedtopaycertainexpensesincurredbytheFund.T othe extentthattheannualizedexpenseratiodoesnotexceedtheexpenselimitation,theAdvisorwillretainitsabilitytobereimbursedforsuchfeewaiv ersor reimbursementspriortotheendofeachfiscalyear.TheAdvisordidnotwaivefeesand/orreimburseexpensesduringtheperiodunderthisexpenselimi tation. Further,theAdvisorhascontractuallyagreed,throughatleastJune30,2010,towaivetheadvisoryfeepayablebytheFundinanamountequalto100%of thenetadvisoryfeestheAdvisorreceivesfromtheaffiliatedmoneymarketfundsoninvestmentsbytheFundofuninvestedcash(excludinginvestment sofcash collateralfromsecuritieslending)insuchaffiliatedmoneymarketfunds. ForthesixmonthsendedJune30,2009,theAdvisorwaivedadvisoryfeesof$30,273. AttherequestoftheTrusteesoftheTrust,InvescoagreedtoreimburseexpensesincurredbytheFundinconnectionwithmarkettimingmattersintheAI M Funds,whichmayincludelegal,audit,shareholderreporting,communicationsandtrusteeexpenses.ForthesixmonthsendedJune30,2009,Invescod idnot reimburseanyexpenses. TheTrusthasenteredintoamasteradministrativeservicesagreementwithInvescoAimpursuanttowhichtheFundhasagreedtopayInvescoAimafeefor costsincurredinprovidingaccountingservicesandfundadministrativeservicestotheFundandtoreimburseInvescoAimforadministrativeservic esfeespaid toinsurancecompaniesthathaveagreedtoprovideservicestotheparticipantsofseparateaccounts.Theseadministrativeservicesprovidedbythe insurance companiesmayinclude,amongotherthings:theprintingofprospectuses,financialreportsandproxystatementsandthedeliveryofthesametoexist ing participants;themaintenanceofmasteraccounts;thefacilitationofpurchasesandredemptionsrequestedbytheparticipants;andtheservicingo fparticipants 9 accounts.Pursuanttosuchagreement,forthesixmonthsendedJune30,2009,InvescoAimwaspaid$49,015foraccountingandfundadministrativeserv ices andreimbursed$474,037forservicesprovidedbyinsurancecompanies. TheTrusthasenteredintoatransferagencyandserviceagreementwithInvescoAimInvestmentServices,Inc.( cIAIS d)pursuanttowhichtheFundhas agreedtopayIAISafeeforprovidingtransferagencyandshareholderservicestotheFundandreimburseIAISforcertainexpensesincurredbyIAISint he AIMV.I.MidCapCoreEquityFund courseofprovidingsuchservices.ForthesixmonthsendedJune30,2009,expensesincurredundertheagreementareshownintheStatementofOperatio nsas transferagentfees. TheTrusthasenteredintoamasterdistributionagreementwithInvescoAimDistributors,Inc.( cIADI d)toserveasthedistributorfortheFund.TheT rust hasadoptedaplanpursuanttoRule12b-1underthe1940ActwithrespecttotheFund 9sSeriesIIshares(the cPlan d).TheFund,pursuanttothePlan,pays IADIcompensationattheannualrateof0.25%oftheFund 9saveragedailynetassetsofSeriesIIshares.OfthePlanpayments,upto0.25%oftheaveraged aily netassetsoftheSeriesIIsharesmaybepaidtoinsurancecompanieswhofurnishcontinuingpersonalshareholderservicestocustomerswhopurchasea ndown SeriesIIsharesoftheFund.ForthesixmonthsendedJune30,2009,expensesincurredunderthePlanaredetailedintheStatementofOperationsas distributionfees. CertainofficersandtrusteesoftheTrustareofficersanddirectorsofInvescoAim,IAISand/orIADI. NOTE3 4AdditionalValuationInformation GenerallyAcceptedAccountingPrinciples(GAAP)definesfairvalueasthepricethatwouldbereceivedtosellanassetorpaidtotransferaliability inanorderly transactionbetweenmarketparticipantsatthemeasurementdate.GAAPestablishesahierarchythatprioritizestheinputstovaluationmethodsgiv ingthe highestprioritytoreadilyavailableunadjustedquotedpricesinanactivemarketforidenticalassets(Level1)andthelowestprioritytosignific antunobservable inputs(Level3)generallywhenmarketpricesarenotreadilyavailableorareunreliable.Basedonthevaluationinputs,thesecuritiesorotherinve stmentsare tieredintooneofthreelevels.Changesinvaluationmethodsmayresultintransfersinoroutofaninvestment 9sassignedlevel: Level1 4Pricesaredeterminedusingquotedpricesinanactivemarketforidenticalassets. Level2 4Pricesaredeterminedusingothersignificantobservableinputs.Observableinputsareinputsthatothermarketparticipantsmayuseinpri cinga security.Thesemayincludequotedpricesforsimilarsecurities,interestrates,prepaymentspeeds,creditriskandothers. Level3 4Pricesaredeterminedusingsignificantunobservableinputs.Insituationswherequotedpricesorobservableinputsareunavailable(fore xample, whenthereislittleornomarketactivityforaninvestmentattheendoftheperiod),unobservableinputsmaybeused.Unobservableinputs reflecttheFund 9sownassumptionsaboutthefactorsmarketparticipantswoulduseindeterminingfairvalueofthesecuritiesorinstrumentsand wouldbebasedonthebestavailableinformation. Thefollowingisasummaryofthetieredvaluationinputlevels,asoftheendofthereportingperiod,June30,2009.Thelevelassignedtothesecuritie s valuationsmaynotbeanindicationoftheriskorliquidityassociatedwithinvestinginthosesecurities.Becauseoftheinherentuncertaintiesofv aluation,the valuesreflectedinthefinancialstatementsmaymateriallydifferfromthevaluereceiveduponactualsaleofthoseinvestments. Level1Level2Level3Total EquitySecurities$474,785,520$21,334,892$ 4$496,120,412 NOTE4 4DerivativeInvestments EffectivewiththebeginningoftheFund 9sfiscalyear,theFundhasadoptedtheprovisionsofFASBStatementNo.161, DisclosuresaboutDerivative InstrumentsandHedgingActivities .Thestandardisintendedtoimprovefinancialreportingaboutderivativeinstrumentsandhedgingactivitiesbyrequiring enhanceddisclosurestoenableinvestorstobetterunderstandtheireffectsonanentity 9sfinancialpositionandfinancialperformance.Theadopt ionofthis provisionhasnoimpactontheresultsofoperationsreportedinthefinancialstatements. ValueofDerivativeInstrumentsatPeriod-End TheTablebelowsummarizesthevalueoftheFund 9sderivativeinstruments,detailedbyprimaryriskexposure,heldasofJune30,2009: RiskExposure/DerivativeTypeAssetsLiabilities Value Currencyrisk (a) Foreigncurrencycontracts$ 4$(3,228) (a) ValueisdisclosedontheStatementofAssetsandLiabilitiesunderForeigncurrencycontractsoutstanding. EffectofDerivativeInstrumentsforthesixmonthsendedJune30,2009 Thetablebelowsummarizesthegains(losses)onderivativeinstruments,detailedbyprimaryriskexposure,recognizedinearningsduringtheperio d: ForeignCurrencyContracts* LocationofGain(Loss)on StatementofOperations RealizedGain(Loss)-Currencyrisk$(672,878) ChangeinUnrealizedAppreciation-Currencyrisk$286,851 Total$(386,027) *Theaveragevalueoutstandingofforeigncurrencycontractsduringtheperiodwas$4,674,779. AIMV.I.MidCapCoreEquityFund ForeignCurrencyContractsatPeriod-End Settlement DateDeliverReceiveValue Unrealized Appreciation (Depreciation) Contractto OpenForeignCurrencyContracts 9/04/09GBP2,925,000USD4,807,648$4,810,876$(3,228) Totalopenforeigncurrencycontracts$(3,228) CurrencyAbbreviations: GBP 3BritishPoundSterling USD 3U.S.Dollar NOTE5 4Trustees 9andOfficers 9FeesandBenefits cTrustees 9andOfficers 9FeesandBenefits dincludeamountsaccruedbytheFundtopayremunerationtocertainTrusteesandOfficersoftheFund.Trus teeshave theoptiontodefercompensationpayablebytheFund,and cTrustees 9andOfficers 9FeesandBenefits dalsoincludeamountsaccruedbytheFundtofunds uch deferredcompensationamounts.ThoseTrusteeswhodefercompensationhavetheoptiontoselectvariousAIMFundsinwhichtheirdeferralaccountssh allbe deemedtobeinvested.Finally,certaincurrentTrusteesareeligibletoparticipateinaretirementplanthatprovidesforbenefitstobepaiduponre tirementto Trusteesoveraperiodoftimebasedonthenumberofyearsofservice.TheFundmayhavecertainformerTrusteeswhoalsoparticipateinaretirementpla n andreceivebenefitsundersuchplan. cTrustees 9andOfficers 9FeesandBenefits dincludeamountsaccruedbytheFundtofundsuchretirementbenefit s. ObligationsunderthedeferredcompensationandretirementplansrepresentunsecuredclaimsagainstthegeneralassetsoftheFund. DuringthesixmonthsendedJune30,2009,theFundpaidlegalfeesof$1,922forservicesrenderedbyKramer,Levin,Naftalis&FrankelLLPascounselto theIndependentTrustees.AmemberofthatfirmisaTrusteeoftheTrust. NOTE6 4CashBalances TheFundispermittedtotemporarilycarryanegativeoroverdrawnbalanceinitsaccountwithTheStateStreetBankandTrustCompany,thecustodianba nk. Tocompensatethecustodianbankforsuchoverdrafts,theoverdrawnFundmayeither(i)leavefundsasacompensatingbalanceintheaccountsothe custodianbankcanbecompensatedbyearningtheadditionalinterest;or(ii)compensatebypayingthecustodianbankatarateagreeduponbythecusto dian bankandInvescoAim,nottoexceedthecontractuallyagreeduponrate. NOTE7 4TaxInformation Theamountandcharacterofincomeandgainstobedistributedaredeterminedinaccordancewithincometaxregulations,whichmaydifferfromgeneral ly acceptedaccountingprinciples.ReclassificationsaremadetotheFund 9scapitalaccountstoreflectincomeandgainsavailablefordistribution( oravailable capitallosscarryforward)underincometaxregulations.Thetaxcharacterofdistributionspaidduringtheyearandthetaxcomponentsofnetassets willbe reportedattheFund 9sfiscalyear-end. TheFunddidnothaveacapitallosscarryforwardasofDecember31,2008. NOTE8 4InvestmentSecurities Theaggregateamountofinvestmentsecurities(otherthanshort-termsecurities,U.S.Treasuryobligationsandmoneymarketfunds,ifany)purchas edandsold bytheFundduringthesixmonthsendedJune30,2009was$77,424,342and$98,936,183,respectively.Costofinvestmentsonataxbasisincludesthe adjustmentsforfinancialreportingpurposesasofthemostrecentlycompletedFederalincometaxreportingperiod-end. UnrealizedAppreciation(Depreciation)ofInvestmentSecuritiesonaTaxBasis Aggregateunrealizedappreciationofinvestmentsecurities$28,866,121 Aggregateunrealized(depreciation)ofinvestmentsecurities(52,364,369) Netunrealizedappreciation(depreciation)ofinvestmentsecurities$(23,498,248) Costofinvestmentsfortaxpurposesis$519,618,660. AIMV.I.MidCapCoreEquityFund NOTE9 4ShareInformation SharesAmountSharesAmount Sixmonthsended June30,2009 (a) Yearended December31,2008 SummaryofShareActivity Sold: SeriesI2,237,729$18,342,2571,980,935$25,879,573 SeriesII1,224,55610,400,0192,495,19733,372,144 Issuedasreinvestmentofdividends: SeriesI 4 47,277,76360,987,657 SeriesII 4 4983,1448,169,929 Reacquired: SeriesI(3,329,920)(26,675,149)(8,365,253)(106,149,839) SeriesII(1,188,204)(9,667,909)(3,256,102)(42,685,815) Netincrease(decrease)inshareactivity(1,055,839)$(7,600,782)1,115,684$(20,426,351) (a) Thereareentitiesthatarerecordownersofmorethan5%oftheoutstandingsharesoftheFundandintheaggregateown74%oftheoutstandingsharesofth eFund.The FundandtheFund 9sprincipalunderwriteroradvisor,arepartiestoparticipationagreementswiththeseentitieswherebytheseentitiessellunits ofinterestinseparate accountsfundingvariableproductsthatareinvestedintheFund.TheFund,InvescoAimand/orInvescoAimaffiliatesmaymakepaymentstotheseentit ies,whichare consideredtoberelatedtotheFund,forprovidingservicestotheFund,InvescoAimand/orInvescoAimaffiliatesincludingbutnotlimitedtoservic essuchas,securities brokerage,thirdpartyrecordkeepingandaccountservicingandadministrativeservices.TheTrusthasnoknowledgeastowhetheralloranyportiono fthesharesownedof recordbytheseentitiesarealsoownedbeneficially. AIMV.I.MidCapCoreEquityFund NOTE11 4FinancialHighlights ThefollowingschedulepresentsfinancialhighlightsforashareoftheFundoutstandingthroughouttheperiodsindicated. Netasset value, beginning ofperiod Net investment income (loss) Netgains (losses) onsecurities (both realizedand unrealized) Totalfrom investment operations Dividends fromnet investment income Distributions fromnet realized gains Total Distributions Netasset value,end ofperiod Total Return (a) Netassets, endofperiod (000somitted) Ratioof expenses toaverage netassets withfeewaivers and/orexpenses absorbed Ratioof expenses toaveragenet assetswithout feewaivers and/orexpenses absorbed Ratioofnet investment income(loss) toaverage netassets Portfolio turnover (b) SeriesI Sixmonthsended06/30/09$8.59$0.05 (c) $0.56$0.61$ 4$ 4$ 4$9.207.10%$367,9231.01% (d) 1.03% (d) 1.12% (d) 23% Yearended12/31/0814.570.14 (c) (4.33)(4.19)(0.22)(1.57)(1.79)8.59(28.52)352,7881.011.041.0562 Yearended12/31/0713.520.191.111.30(0.04)(0.21)(0.25)14.579.55585,6081.001.011.2362 Yearended12/31/0613.610.141.391.53(0.14)(1.48)(1.62)13.5211.24581,1541.041.040.9383 Yearended12/31/0513.110.060.941.00(0.07)(0.43)(0.50)13.617.62584,8601.031.030.5070 Yearended12/31/0412.060.031.631.66(0.02)(0.59)(0.61)13.1113.82496,6061.041.040.2555 SeriesII Sixmonthsended06/30/098.520.04 (c) 0.550.59 4 4 49.116.9252,2171.26 (d) 1.28 (d) 0.87 (d) 23 Yearended12/31/0814.450.10 (c) (4.28)(4.18)(0.18)(1.57)(1.75)8.52(28.68)48,4891.261.290.8062 Yearended12/31/0713.420.131.121.25(0.01)(0.21)(0.22)14.459.2979,0791.251.260.9862 Yearended12/31/0613.520.101.381.48(0.10)(1.48)(1.58)13.4210.9856,7661.291.290.6883 Yearended12/31/0513.040.030.920.95(0.04)(0.43)(0.47)13.527.2750,3801.281.280.2570 Yearended12/31/0412.01(0.00)1.621.62(0.00)(0.59)(0.59)13.0413.5733,4951.291.29(0.00)55 (a) IncludesadjustmentsinaccordancewithaccountingprinciplesgenerallyacceptedintheUnitedStatesofAmericaandassuch,thenetassetvaluefor financialreporting purposesandthereturnsbaseduponthosenetassetvaluesmaydifferfromthenetassetvalueandreturnsforshareholdertransactions.Totalreturns arenotannualized forperiodslessthanoneyear,ifapplicableanddonotreflectchargesassessedinconnectionwithavariableproduct,whichifincludedwouldreduce totalreturns. (b) Portfolioturnoveriscalculatedatthefundlevelandisnotannualizedforperiodslessthanoneyear,ifapplicable. (c) Calculatedusingaveragesharesoutstanding. (d) Ratiosareannualizedandbasedonaveragedailynetassets(000 9somitted)of$339,860and$46,414forSeriesIandSeriesIIshares,respectively. AIMV.I.MidCapCoreEquityFund CalculatingyourOngoingFundexpenses Example AsashareholderoftheFund,youincurongoingcosts,includingmanagementfees;distributionand/orservicefees(12b-1);andotherFundexpenses. This exampleisintendedtohelpyouunderstandyourongoingcosts(indollars)ofinvestingintheFundandtocomparethesecostswithongoingcostsofinve sting inothermutualfunds.Theexampleisbasedonaninvestmentof$1,000investedatthebeginningoftheperiodandheldfortheentireperiodJanuary1,20 09 throughJune30,2009. Theactualandhypotheticalexpensesintheexamplesbelowdonotrepresenttheeffectofanyfeesorotherexpensesassessedinconnectionwithavaria ble product;iftheydid,theexpensesshownwouldbehigherwhiletheendingaccountvaluesshownwouldbelower. Actualexpenses Thetablebelowprovidesinformationaboutactualaccountvaluesandactualexpenses.Youmayusetheinformationinthistable,togetherwiththeamo unt youinvested,toestimatetheexpensesthatyoupaidovertheperiod.Simplydivideyouraccountvalueby$1,000(forexample,an$8,600accountvalued ivided by$1,000=8.6),thenmultiplytheresultbythenumberinthetableundertheheadingentitled cActualExpensesPaidDuringPeriod dtoestimatethe expensesyoupaidonyouraccountduringthisperiod. Hypotheticalexampleforcomparisonpurposes ThetablebelowalsoprovidesinformationabouthypotheticalaccountvaluesandhypotheticalexpensesbasedontheFund 9sactualexpenseratioanda n assumedrateofreturnof5%peryearbeforeexpenses,whichisnottheFund 9sactualreturn. Thehypotheticalaccountvaluesandexpensesmaynotbeusedtoestimatetheactualendingaccountbalanceorexpensesyoupaidfortheperiod.You mayusethisinformationtocomparetheongoingcostsofinvestingintheFundandotherfunds.Todoso,comparethis5%hypotheticalexamplewiththe 5%hypotheticalexamplesthatappearintheshareholderreportsoftheotherfunds. Pleasenotethattheexpensesshowninthetablearemeanttohighlightyourongoingcosts.Therefore,thehypotheticalinformationisusefulincompa ring ongoingcosts,andwillnothelpyoudeterminetherelativetotalcostsofowningdifferentfunds. Class Beginning AccountValue (01/01/09) Ending AccountValue (06/30/09) 1 Expenses PaidDuring Period 2 Ending AccountValue (06/30/09) Expenses PaidDuring Period 2 Annualized Expense Ratio ACTUAL HYPOTHETICAL (5%annualreturnbefore expenses) SeriesI$1,000.00$1,071.00$5.19$1,019.79$5.061.01% SeriesII1,000.001,069.206.461,018.556.311.26 1 TheactualendingaccountvalueisbasedontheactualtotalreturnoftheFundfortheperiodJanuary1,2009throughJune30,2009,afteractualexpense s andwilldifferfromthehypotheticalendingaccountvaluewhichisbasedontheFund 9sexpenseratioandahypotheticalannualreturnof5%before expenses. 2 ExpensesareequaltotheFund 9sannualizedexpenseratioasindicatedabovemultipliedbytheaverageaccountvalueovertheperiod,multipliedby18 1/365 toreflectthemostrecentfiscalhalfyear. AIMV.I.MidCapCoreEquityFund AIM V.I. Mid Cap Core Equity Fund continued The Board of Trustees (the Board) of AIM Variable Insurance Funds is required under the Investment Company Act of 1940 to approve annually the renewal of the AIM V.I. Mid Cap Core Equity Fund (the Fund) investment advisory agree- ment with Invesco Aim Advisors, Inc. (Invesco Aim) and the Master Intergroup Sub-Advisory Contract for Mutual Funds (the sub-advisory contracts) with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Global Asset Management (N.A.), Inc., Invesco Hong Kong Limited, Invesco Institutional (N.A.), Inc., Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the AfM liated Sub-Advisers). During contract renewal meetings held on June 16-17, 2009, the Board as a whole, and the disinterested or cindependent d Trustees voting separately, approved the continuance of the Fund 9s investment advisory agree- ment and the sub-advisory contracts for another year, effective July 1, 2009. In doing so, the Board determined that the Fund 9s investment advisory agreement and the sub-advisory contracts are in the best interests of the Fund and its share- holders and that the compensation to Invesco Aim and the AfM liated Sub-Advis- ers under the Fund 9s investment advisory agreement and sub-advisory contracts is fair and reasonable. The Board 9s Fund Evaluation Process The Board 9s Investments Committee has established three Sub-Committees that are responsible for overseeing the management of a number of the series portfolios of the AIM Funds. This Sub- Committee structure permits the Trus- tees to focus on the performance of the AIM Funds that have been assigned to them. The Sub-Committees meet throughout the year to review the performance of their assigned funds, and the Sub-Committees review monthly and quarterly comparative performance information and periodic asset N ow data for their assigned funds. These materials are prepared under the direction and supervision of the independent Senior OfM cer, an ofM cer of the AIM Funds who reports directly to the independent Trustees. Over the course of each year, the Sub-Committees meet with portfolio managers for their assigned funds and other members of management and review with these individuals the perform- ance, investment objective(s), policies, strategies and limitations of these funds. In addition to their meetings through- out the year, the Sub-Committees meet at designated contract renewal meetings each year to conduct an in-depth review of the performance, fees, expenses, and other matters related to their assigned funds. During the contract renewal process, the Trustees receive compara- tive performance and fee data regarding the AIM Funds prepared by an independ- ent company, Lipper, Inc. (Lipper), under the direction and supervision of the Senior OfM cer who also prepares a separate analysis of this information for the Trustees. Each Sub-Committee then makes recommendations to the Invest- ments Committee regarding the fees and expenses of their assigned funds. The Investments Committee considers each Sub-Committee 9s recommendations and makes its own recommendations regard- ing the fees and expenses of the AIM Funds to the full Board. The Investments Committee also considers each Sub-Com- mittee 9s recommendations in making its annual recommendation to the Board whether to approve the continuance of each AIM Fund 9s investment advisory agreement and sub-advisory contracts for another year. The independent Trustees met sepa- rately during their evaluation of the Fund 9s investment advisory agreement and sub-advisory contracts with inde- pendent legal counsel. The independent Trustees were also assisted in their annual evaluation of the Fund 9s invest- ment advisory agreement by the Senior OfM cer. One responsibility of the Senior OfM cer is to manage the process by which the AIM Funds 9 proposed management fees are negotiated during the annual contract renewal process to ensure that they are negotiated in a manner that is at arms 9 length and reasonable. Accord- ingly, the Senior OfM cer must either supervise a competitive bidding process or prepare an independent written evaluation. The Senior OfM cer recom- mended that an independent written evaluation be provided and, at the direction of the Board, prepared an independent written evaluation. During the annual contract renewal process, the Board considered the factors discussed below in evaluating the fairness and reasonableness of the Fund 9s investment advisory agreement and sub-advisory contracts. The Board considered all of the information pro- vided to them, including information provided at their meetings throughout the year as part of their ongoing over- sight of the Fund, and did not identify any particular factor that was controlling. Each Trustee may have evaluated the information provided differently from another Trustee and attributed different weight to the various factors. The Trustees recognized that the advisory arrangements and resulting advisory fees for the Fund and the other AIM Funds are the result of years of review and negotia- tion between the Trustees and Invesco Aim, that the Trustees may focus to a greater extent on certain aspects of these arrangements in some years than in others, and that the Trustees 9 delibera- tions and conclusions in a particular year may be based in part on their delibera- tions and conclusions regarding these same arrangements throughout the year and in prior years. The discussion below serves as a summary of the Senior OfM cer 9s inde- pendent written evaluation with respect to the Fund 9s investment advisory agreement as well as a discussion of the material factors and related conclusions that formed the basis for the Board 9s approval of the Fund 9s investment advisory agreement and sub-advisory contracts. Unless otherwise stated, information set forth below is as of June 17, 2009, and does not reN ect any changes that may have occurred since that date, including but not limited to changes to the Fund 9s performance, advisory fees, expense limitations and/or fee waivers. Factors and Conclusions and Summary of Independent Written Fee Evaluation A. Nature, Extent and Quality of Services Provided by Invesco Aim The Board reviewed the advisory services provided to the Fund by Invesco Aim under the Fund 9s investment advisory agreement, the performance of Invesco Aim in providing these services, and the credentials and experience of the ofM cers and employees of Invesco Aim who provide these services. The Board 9s review of the qualiM cations of Invesco Aim to provide these services included the Board 9s consideration of Invesco Aim 9s portfolio and product review process, various back ofM ce support functions provided by Invesco Aim and its afM liates, and Invesco Aim 9s equity and M xed income trading operations. The Board concluded that the nature, extent and quality of the advisory services provided to the Fund by Invesco Aim are appropriate and that Invesco Aim currently is providing satisfactory advisory services in accordance with the terms of the Fund 9s investment advisory Approval of Investment Advisory and Sub-Advisory Agreements AIM V.I. Mid Cap Core Equity Fund continued agreement. In addition, based on their ongoing meetings throughout the year with the Fund 9s portfolio manager or managers, the Board concluded that these individuals are competent and able to continue to carry out their responsibili- ties under the Fund 9s investment advisory agreement. In determining whether to continue the Fund 9s investment advisory agreement, the Board considered the prior relation- ship between Invesco Aim and the Fund, as well as the Board 9s knowledge of Invesco Aim 9s operations, and concluded that it is beneM cial to maintain the current relationship, in part, because of such knowledge. The Board also consid- ered the steps that Invesco Aim and its afM liates continue to take to improve the quality and efM ciency of the services they provide to the AIM Funds in the areas of investment performance, product line diversiM cation, distribution, fund opera- tions, shareholder services and compli- ance. The Board concluded that the quality and efM ciency of the services Invesco Aim and its afM liates provide to the AIM Funds in each of these areas support the Board 9s approval of the continuance of the Fund 9s investment advisory agreement. B. Nature, Extent and Quality of Services Provided by Af1 liated Sub-Advisers The Board reviewed the services provided by the AfM liated Sub-Advisers under the sub-advisory contracts and the creden- tials and experience of the ofM cers and employees of the AfM liated Sub-Advisers who provide these services. The Board concluded that the nature, extent and quality of the services provided by the AfM liated Sub-Advisers are appropriate. The Board noted that the AfM liated Sub-Advisers, which have ofM ces and personnel that are geographically dispersed in M nancial centers around the world, can provide research and other information and make recommendations on the markets and economies of various countries and securities of companies located in such countries or on various types of investments and investment techniques. The Board concluded that the sub-advisory contracts beneM t the Fund and its shareholders by permitting Invesco Aim to utilize the additional resources and talent of the AfM liated Sub-Advisers in managing the Fund. C. Fund Performance The Board considered fund performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view fund performance as a relevant factor in considering whether to approve the sub-advisory contracts for the Fund, as no AfM liated Sub-Adviser currently manages assets of the Fund. The Board compared the Fund 9s performance during the past one, three and M ve calendar years to the perform- ance of all funds in the Lipper perform- ance universe that are not managed by Invesco Aim or an AfM liated Sub-Adviser, and against the Lipper VA Underlying Funds - Mid-Cap Core Index. The Board noted that the Fund 9s performance was in the M rst quintile of its performance universe for the one, three and M ve year periods (the M rst quintile being the best performing funds and the M fth quintile being the worst performing funds). The Board noted that the Fund 9s performance was above the performance of the Index for the one, three and M ve year periods. Although the independent written evaluation of the Fund 9s Senior OfM cer only considered Fund performance through the most recent calendar year, the Board also reviewed more recent Fund performance and this review did not change their conclusions. The Board noted that, in response to the Board 9s focus on fund performance, Invesco Aim has taken a number of actions intended to improve the investment process for the funds. D. Advisory and Sub-Advisory Fees and Fee Waivers The Board compared the Fund 9s contrac- tual advisory fee rate to the contractual advisory fee rates of funds in the Fund 9s Lipper expense group that are not managed by Invesco Aim or an AfM liated Sub-Adviser, at a common asset level. The Board noted that the Fund 9s contrac- tual advisory fee rate was below the median contractual advisory fee rate of funds in its expense group. The Board also reviewed the methodology used by Lipper in determining contractual fee rates, which includes using audited M nancial data from the most recent annual report of each fund in the expense group that was publicly available as of the end of the past calendar year. The Board noted that some comparative data was at least one year old and did not reN ect the market downturn that occurred in the fourth quarter of 2008. The Board also compared the Fund 9s effective fee rate (the advisory fee after any advisory fee waivers and before any expense limitations/waivers) to the advisory fee rates of other domestic clients of Invesco Aim and its afM liates with investment strategies comparable to those of the Fund, including one mutual fund advised by Invesco Aim. The Board noted that the Fund 9s rate was above the effective fee rate for the other mutual. Additionally, the Board compared the Fund 9s effective fee rate to the effective fee rates paid by numerous separately managed accounts/wrap accounts advised by an Invesco Aim afM liate. The Board noted that the Fund 9s rate was above the rates for all but three of the separately managed accounts/wrap accounts. The Board considered that management of the separately managed accounts/wrap accounts by the Invesco Aim afM liate involves different levels of services and different operational and regulatory requirements than Invesco Aim 9s management of the Fund. The Board concluded that these differences are appropriately reN ected in the fee structure for the Fund. The Board noted that Invesco Aim has contractually agreed to waive fees and/or limit expenses of the Fund through at least April 30, 2010 in an amount necessary to limit total annual operating expenses to a speciM ed percentage of average daily net assets for each class of the Fund. The Board noted that at the current expense ratio for the Fund, this expense waiver does not have any impact. The Board also considered the services provided by the AfM liated Sub-Advisers pursuant to the sub-advisory contracts and the services provided by Invesco Aim pursuant to the Fund 9s advisory agree- ment, as well as the allocation of fees between Invesco Aim and the AfM liated Sub-Advisers pursuant to the sub-adviso- ry contracts. The Board noted that the sub-advisory fees have no direct effect on the Fund or its shareholders, as they are paid by Invesco Aim to the AfM lia

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