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 811-07868

 

 

Invesco Advantage Municipal Income Trust II

(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: 8/31/22

 

 

 


ITEM 1.

REPORTS TO STOCKHOLDERS.

(a) The Registrant’s semi-annual report transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940 is as follows:

(b) Not applicable.


 

LOGO

 

 

 

Semiannual Report to Shareholders   

 

August 31, 2022

 

 

Invesco Advantage Municipal Income Trust II

 

NYSE American: VKI

 

 

 

2   Trust Performance                                                                     
2   Share Repurchase Program Notice   
3   Dividend Reinvestment Plan   
4   Schedule of Investments   
21         Financial Statements   
25   Financial Highlights   
26   Notes to Financial Statements   
31   Approval of Investment Advisory and Sub-Advisory Contracts   
33   Proxy Results   

 

 

Unless otherwise noted, all data is provided by Invesco.

 

 

NOT FDIC INSURED  |  MAY LOSE VALUE  |  NO BANK GUARANTEE


 

Trust Performance

 

 

Performance summary

 

Cumulative total returns, 2/28/22 to 8/31/22

 

Trust at NAV

     -11.24

Trust at Market Value

     -14.52  

S&P Municipal Bond Index (Broad Market Index)

     -5.44  

S&P Municipal Bond 5+ Year Investment Grade Index (Style-Specific Index)

     -7.11  

Lipper Closed-End General and Insured Municipal Leveraged Debt Funds Index

(Peer Group Index)

     -11.04  

Market Price Discount to NAV as of 8/31/22

     -6.90  

Source(s): RIMES Technologies Corp.; Lipper Inc.

 

The performance data quoted represent past performance and cannot guarantee future results; current performance may be lower or higher. Investment return, net asset value (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.

The S&P Municipal Bond Index is a broad, market value-weighted index that seeks to measure the performance of the US municipal bond market.

The S&P Municipal Bond 5+ Year Investment Grade Index seeks to measure the performance of investment-grade US municipal bonds with maturities equal to or greater than five years.

The Lipper Closed-End General and Insured Municipal Leveraged Debt Funds Index is an unmanaged index considered representative of closed-end general and insured leveraged municipal debt funds tracked by Lipper.

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.

 

 

 

 

 

 

 

 

 

Important Notice Regarding Share Repurchase Program

 

In September 2022, the Board of Trustees of the Trust approved a share repurchase program that allows the Trust to repurchase up to 25% of the 20-day average trading volume

of the Trust’s common shares when the Trust is trading at a 10% or greater discount to its net asset value. The Trust will repurchase

shares pursuant to this program if the Adviser reasonably believes that such repurchases may enhance shareholder value.

 

 

2                     Invesco Advantage Municipal Income Trust II


 

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 rein- vested 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.

 

 

3                     Invesco Advantage Municipal Income Trust II


Schedule of Investments

August 31, 2022

(Unaudited)

 

      Interest
Rate
      Maturity  
Date
       Principal  
Amount
(000)
     Value

Municipal Obligations–173.79%(a)

          

Alabama–2.87%

          

Alabama (State of) Special Care Facilities Financing Authority (Ascension Health Senior Credit Group); Series 2016 B, Ref. RB(b)

     5.00%       11/15/2046      $   3,630      $    3,750,937

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

     5.75%       06/01/2045        185      175,331

Birmingham (City of), AL Water Works Board; Series 2016 B, Ref. RB(c)(d)

     5.00%       01/01/2027        940      1,037,924

Huntsville (City of), AL Special Care Facilities Financing Authority (Redstone Village); Series 2007, RB (Acquired 12/17/2007-12/18/2007;
Cost $1,655,986)(e)(f)

     5.50%       01/01/2043        1,900      1,206,500

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

     5.00%       09/01/2046        3,710      3,874,142

Southeast Energy Authority A Cooperative District (No. 4); Series 2022 B-1(d)

     5.00%       08/01/2028        1,875      1,963,937

Tuscaloosa (County of), AL Industrial Development Authority (Hunt Refining); Series 2019 A, Ref. IDR(g)

     5.25%       05/01/2044        615      562,910
                               12,571,681

Arizona–3.04%

          

Arizona (State of) Health Facilities Authority (Scottsdale Lincoln Hospital); Series 2014, Ref. RB

     5.00%       12/01/2042        1,870      1,926,242

Arizona (State of) Industrial Development Authority; Series 2019-2A, Revenue Ctfs.

     3.63%       05/20/2033        793      766,703

Arizona (State of) Industrial Development Authority (Great Lakes Senior Living Community); Series 2019 B, RB

     5.13%       01/01/2054        60      37,570

Arizona (State of) Industrial Development Authority (Master Academy of Nevada - Bonanza Capmus); Series 2020 A, RB(g)

     5.00%       12/15/2050        300      301,907

Glendale (City of), AZ Industrial Development Authority (The Beatitudes Campus);

          

Series 2017, Ref. RB

     5.00%       11/15/2030        1,000      996,600

Series 2017, Ref. RB

     5.00%       11/15/2045        665      600,696

Maricopa (County of), AZ Industrial Development Authority (Legacy Traditional Schools); Series 2019, Ref. RB(g)

     5.00%       07/01/2054        165      164,989

Phoenix (City of), AZ Industrial Development Authority (Legacy Traditional Schools); Series 2014 A, RB(g)

     6.50%       07/01/2034        380      399,744

Phoenix Civic Improvement Corp.;

          

Series 2017 A, RB(h)

     5.00%       07/01/2042        1,160      1,205,147

Series 2017 A, RB(h)

     5.00%       07/01/2047        1,855      1,917,313

Series 2020, RB(b)

     5.00%       07/01/2049        2,250      2,377,328

Pima (County of), AZ Industrial Development Authority (American Leadership Academy); Series 2019, Ref. RB(g)

     5.00%       06/15/2052        270      258,739

Pima (County of), AZ Industrial Development Authority (Grande Innovations Academy); Series 2018, RB(g)

     5.38%       07/01/2052        885      864,995

Pima (County of), AZ Industrial Development Authority (Tucson Medical Center); Series 2021, Ref. RB

     3.00%       04/01/2051        1,155      839,882

Salt Verde Financial Corp.; Series 2007, RB

     5.00%       12/01/2037        600      633,573
                               13,291,428

Arkansas–0.12%

          

Arkansas (State of) Development Finance Authority (Baptist Memorial Health); Series 2020, Ref. RB

     5.00%       09/01/2039        500      514,408

California–15.61%

          

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

     5.00%       04/01/2056        1,890      2,101,772

Beverly Hills Unified School District (Election of 2008); Series 2009, GO Bonds(j)

     0.00%       08/01/2028        900      757,769

California (County of), CA Tobacco Securitization Agency; Series 2020 A, Ref. RB

     4.00%       06/01/2037        275      275,743

California (County of), CA Tobacco Securitization Agency (Alameda County Tobacco Asset Securitization Corp.); Series 2006 C, RB(j)

     0.00%       06/01/2055        8,390      740,898

California (County of), CA Tobacco Securitization Agency (Los Angeles County Securitization Corp.);

          

Series 2020 B-1, Ref. RB

     5.00%       06/01/2049        80      82,639

Series 2020 B-2, Ref. RB(j)

     0.00%       06/01/2055        1,245      228,936

California (State of);

          

Series 2013, GO Bonds

     5.00%       04/01/2037        1,350      1,369,020

Series 2013, Ref. GO Bonds

     5.25%       09/01/2030        2,000      2,058,436

Series 2020, GO Bonds (INS - BAM)(k)

     3.00%       11/01/2050        1,750      1,379,276

Series 2022, Ref. GO Bonds

     4.00%       04/01/2042        2,395      2,408,157

 

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

4                     Invesco Advantage Municipal Income Trust II


      Interest
Rate
      Maturity  
Date
       Principal  
Amount
(000)
     Value

California–(continued)

          

California (State of) Community Housing Agency (Annadel Apartments); Series 2019 A, RB(g)

     5.00%       04/01/2049      $ 625      $        581,585

California (State of) Health Facilities Financing Authority (PIH Health); Series 2020 A, RB

     4.00%       06/01/2050          3,125        2,859,170

California (State of) Housing Finance Agency;

          

Series 2019 A-2, RB

     4.00%       03/20/2033        359      356,314

Series 2021 A, RB

     3.25%       08/20/2036        534      483,022

Series 2021-1A, Revenue Ctfs.

     3.50%       11/20/2035        612      570,583

California (State of) Municipal Finance Authority (Bella Mente Montessori Academy); Series 2018 A, RB(g)

     5.00%       06/01/2048        145      140,698

California (State of) Municipal Finance Authority (CHF-Davis I, LLC - West Village Student Housing); Series 2018, RB

     5.00%       05/15/2035        940      980,111

California (State of) Municipal Finance Authority (Green Bonds); Series 2021, RB (INS - BAM)(k)

     4.00%       05/15/2046        500      474,191

California (State of) Municipal Finance Authority (Linxs APM);

          

Series 2018 A, RB(h)

     5.00%       12/31/2036        1,245      1,284,784

Series 2018 A, RB(h)

     5.00%       12/31/2047        1,500      1,522,410

California (State of) Municipal Finance Authority (United Airlines, Inc.); Series 2019, RB(h)

     4.00%       07/15/2029        1,240      1,228,907

California (State of) Municipal Finance Authority (William Jessup University); Series 2019, Ref. RB(g)

     5.00%       08/01/2039        185      183,975

California (State of) Pollution Control Finance Authority;

          

Series 2012, RB(g)(h)

     5.00%       07/01/2027        840      843,869

Series 2012, RB(g)(h)

     5.00%       07/01/2030        1,215      1,219,511

Series 2012, RB(g)(h)

     5.00%       07/01/2037        2,685      2,691,338

California (State of) Statewide Communities Development Authority (Loma Linda University Medical Center);

          

Series 2014, RB

     5.25%       12/01/2044        655      665,814

Series 2016 A, RB(g)

     5.00%       12/01/2041        1,030      1,024,317

Series 2016 A, RB(g)

     5.25%       12/01/2056        750      750,865

California State University;

          

Series 2019 A, RB

     5.00%       11/01/2044        1,495      1,642,277

Series 2019 A, RB(b)(i)

     5.00%       11/01/2049        4,085      4,463,983

CSCDA Community Improvement Authority (Jefferson-Anaheim Social Bonds); Series 2021 A, RB(g)

     3.13%       08/01/2056        625      462,274

CSCDA Community Improvement Authority (Social Bonds);

          

Series 2021 A-2, RB(g)

     4.00%       09/01/2056        625      512,896

Series 2021, RB(g)

     4.00%       08/01/2056        375      307,787

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

     6.50%       12/15/2047        380      380,056

Foothill-Eastern Transportation Corridor Agency; Series 2015, Ref. RB (INS - AGM)(j)(k)

     0.00%       01/15/2034        3,145      2,012,044

Glendale Community College District; Series 2020 B, GO Bonds

     4.00%       08/01/2050        600      590,544

Golden State Tobacco Securitization Corp.;

          

Series 2013 A, RB(c)(d)

     5.00%       06/01/2023        1,050      1,071,716

Series 2015, Ref. RB(c)(d)

     5.00%       06/01/2025        1,350      1,442,939

Series 2015, Ref. RB(c)(d)

     5.00%       06/01/2025        1,650      1,765,866

Series 2018 A-1, Ref. RB(c)(d)

     5.00%       06/01/2028        1,015      1,152,234

Series 2021 B-2, Ref. RB(j)

     0.00%       06/01/2066        2,155      254,854

Los Angeles (City of), CA Department of Airports; Series 2019 A, Ref. RB(h)

     5.00%       05/15/2034        680      727,450

Los Angeles (City of), CA Department of Airports (Green Bonds); Series 2022 G, RB(h)

     5.50%       05/15/2035        1,550      1,763,832

Los Angeles (City of), CA Department of Airports (Los Angeles International Airport); Series 2019, RB(h)

     5.00%       05/15/2037        2,315      2,458,378

Los Angeles (City of), CA Department of Water & Power; Series 2022 A, RB(b)

     5.00%       07/01/2051        1,740      1,892,183

M-S-R Energy Authority;

          

Series 2009 B, RB

     7.00%       11/01/2034        435      532,526

Series 2009 B, RB

     6.50%       11/01/2039        1,660      2,005,714

Mt. San Antonio Community College District (Election of 2008); Series 2013 A, GO Bonds(l)

     6.25%       08/01/2043        1,500      1,345,697

Regents of the University of California Medical Center; Series 2022 P, RB(b)(i)

     4.00%       05/15/2053        4,065      3,936,709

Sacramento (City of), CA Unified School District (Election of 2020);

          

Series 2022 A, GO Bonds (INS - BAM)(k)

     5.50%       08/01/2047        980      1,107,735

Series 2022 A, GO Bonds (INS - BAM)(k)

     5.50%       08/01/2052        1,190      1,340,690

San Francisco (City & County of), CA Airport Commission (San Francisco International Airport);

          

Series 2019 A, RB(h)

     5.00%       05/01/2049        1,760      1,824,162

Series 2019 E, RB(h)

     5.00%       05/01/2037        500      529,010

Series 2021 A, Ref. RB(h)

     5.00%       05/01/2035        375      404,660

Santa Margarita Water District (Community Facilities District No. 2013-1); Series 2013, RB

     5.50%       09/01/2032        505      514,932

 

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

5                     Invesco Advantage Municipal Income Trust II


      Interest
Rate
      Maturity  
Date
       Principal  
Amount
(000)
     Value

California–(continued)

          

Silicon Valley Tobacco Securitization Authority (Santa Clara); Series 2007 A, RB(j)

     0.00%       06/01/2041      $   2,605      $        911,564

University of California; Series 2018 AZ, Ref. RB(b)

     4.00%       05/15/2048        1,780      1,704,702
                               68,323,524

Colorado–5.67%

          

Arkansas River Power Authority; Series 2006, RB(c)

     5.88%       10/01/2026        925      983,151

Aurora Highlands Community Authority Board; Series 2021 A, Ref. RB

     5.75%       12/01/2051        620      579,402

Belford North Metropolitan District; Series 2020 A, GO Bonds

     5.50%       12/01/2050        780      714,751

Centerra Metropolitan District No. 1 (In the City of Loveland); Series 2020 A, Ref. GO Bonds

     5.00%       12/01/2051        500      462,477

Colorado (State of) Health Facilities Authority (Adventhealth Obligated Group); Series 2021 A, Ref. RB

     4.00%       11/15/2050        555      518,164

Colorado (State of) Health Facilities Authority (CommonSpirit Health);

          

Series 2019 A-2, Ref. RB

     5.00%       08/01/2044        2,745      2,839,482

Series 2019 A-2, Ref. RB(b)(i)

     5.00%       08/01/2044        935      967,182

Series 2019 A-2, Ref. RB

     4.00%       08/01/2049        1,245      1,131,638

Colorado (State of) Health Facilities Authority (Evangelical Lutheran Good Samaritan Society (The)); Series 2017, Ref. RB(c)(d)

     5.00%       06/01/2027        435      481,255

Colorado (State of) Health Facilities Authority (Volunteers of America Care); Series 2007 A, RB

     5.30%       07/01/2037        525      449,030

Colorado (State of) Science and Technology Park Metropolitan District No. 1; Series 2018, RB

     5.00%       12/01/2033        500      504,185

Colorado Crossing Metropolitan District No. 2; Series 2020 A-1, Ref. GO Bonds

     5.00%       12/01/2047        500      458,171

Denver (City & County of), CO;

          

Series 2012 B, RB(c)(d)

     5.00%       11/15/2022        1,400      1,407,693

Series 2018 A, RB(b)(h)

     5.25%       12/01/2048        1,315      1,375,179

Series 2018 A-2, RB(j)

     0.00%       08/01/2034        1,270      815,205

Series 2022 A, RB(h)

     5.50%       11/15/2035        650      731,963

Series 2022 A, RB(h)

     5.50%       11/15/2042        1,000      1,097,133

Series 2022 A, RB(h)

     5.50%       11/15/2053        1,250      1,354,132

Great Western Metropolitan District; Series 2020, Ref. GO Bonds

     4.75%       12/01/2050        340      311,579

Jefferson (County of), CO Center Metropolitan District No. 1; Series 2020 B, Ref. RB

     5.75%       12/15/2050        675      671,617

Johnstown Plaza Metropolitan District; Series 2022, Ref. GO Bonds

     4.25%       12/01/2046        625      541,367

Neu Town Metropolitan District; Series 2018 A, Ref. GO Bonds

     5.38%       12/01/2046        530      523,936

North Range Metropolitan District No. 3; Series 2020 A, GO Bonds

     5.00%       12/01/2040        500      496,934

Public Authority for Colorado Energy; Series 2008, RB

     6.50%       11/15/2038        1,500      1,830,347

Rampart Range Metropolitan District No. 5; Series 2021, RB

     4.00%       12/01/2051        500      394,542

Sky Ranch Community Authority Board; Series 2022 A, GO Bonds(g)

     5.75%       12/01/2052        500      483,274

Village Metropolitan District (The); Series 2020, Ref. GO Bonds

     5.00%       12/01/2040        550      555,532

White Buffalo Metropolitan District No. 3; Series 2020, GO Bonds

     5.50%       12/01/2050        500      483,711

Windler Public Improvement Authority;

          

Series 2021 A-1, RB

     4.13%       12/01/2051        1,000      764,229

Series 2021 A-2, RB(l)

     4.50%       12/01/2041        1,535      892,397
                               24,819,658

District of Columbia–2.09%

          

District of Columbia; Series 2022 A, RB

     5.50%       07/01/2047        2,395      2,781,176

District of Columbia (Provident Group - Howard Properties LLC); Series 2013, RB

     5.00%       10/01/2045        515      515,645

District of Columbia Water & Sewer Authority (Green Bonds);

          

Series 2019 A, RB

     5.00%       10/01/2044        1,410      1,535,478

Series 2022 C-1, RB

     4.00%       10/01/2051        1,250      1,175,621

Metropolitan Washington Airports Authority; Series 2021 A, Ref. RB(h)

     4.00%       10/01/2039        2,100      2,015,464

Metropolitan Washington Airports Authority (Dulles Metrorail and Capital Improvement); Series 2019 B, Ref. RB

     4.00%       10/01/2049        1,245      1,122,357
                               9,145,741

Florida–11.18%

          

Alachua (County of), FL Health Facilities Authority (Terraces at Bonita Springs);

          

Series 2022 A, Ref. RB(g)

     5.00%       11/15/2061        1,075      791,761

Series 2022 B, RB(g)

     6.50%       11/15/2033        100      89,787

Brevard (County of), FL Health Facilities Authority (Health First Obligated Group); Series 2022 A, Ref. RB

     4.00%       04/01/2052        370      339,060

 

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

6                     Invesco Advantage Municipal Income Trust II


      Interest
Rate
      Maturity  
Date
       Principal  
Amount
(000)
     Value

Florida–(continued)

          

Broward (County of), FL;

          

Series 2013 C, RB(c)(d)

     5.25%       10/01/2023      $   1,900      $     1,958,948

Series 2017, RB(b)(h)

     5.00%       10/01/2047        1,935      1,987,928

Series 2019 B, RB(h)

     4.00%       09/01/2044        625      582,675

Series 2022 A, RB

     4.00%       10/01/2047        4,100      3,947,221

Broward (County of), FL (Convention Center Expansion); Series 2021, RB

     4.00%       09/01/2047        2,500      2,299,072

Cape Coral (City of), FL Health Facilities Authority (Gulf Care, Inc.); Series 2015, Ref. RB(g)

     6.00%       07/01/2045        190      183,797

Central Florida Expressway Authority; Series 2019 B, RB(b)(i)

     5.00%       07/01/2049        1,775      1,887,429

Collier (County of), FL Industrial Development Authority (The Arlington of Naples); Series 2014 A, RB (Acquired 12/16/2013; Cost $976,983)(e)(f)(g)

     7.75%       05/15/2035        1,000      640,000

Davie (Town of), FL (Nova Southeastern University); Series 2013 A, RB(c)(d)

     6.00%       04/01/2023        1,100      1,123,080

Florida (State of) North Broward Hospital District; Series 2017 B, Ref. RB

     5.00%       01/01/2048        2,255      2,269,225

Florida Development Finance Corp.; Series 2022 A, Ref. RB(d)(g)(h)

     7.25%       10/03/2023        625      612,276

Florida Development Finance Corp. (Green Bonds); Series 2019 B, RB(g)(h)

     7.38%       01/01/2049        490      467,428

Greater Orlando Aviation Authority;

          

Series 2017 A, RB(h)

     5.00%       10/01/2047        1,535      1,576,987

Series 2019 A, RB(h)

     4.00%       10/01/2044        1,750      1,645,529

Hillsborough (County of), FL Aviation Authority (Tampa International Airport); Series 2018 E, RB(h)

     5.00%       10/01/2048        1,555      1,609,045

Lake (County of), FL (Lakeside at Waterman Village);

          

Series 2020 A, Ref. RB

     5.50%       08/15/2040        485      461,105

Series 2020 A, Ref. RB

     5.75%       08/15/2050        210      196,988

Series 2020 A, Ref. RB

     5.75%       08/15/2055        790      727,889

Series 2020 B-3, RB

     3.38%       08/15/2026        105      105,041

Lee (County of), FL; Series 2022, RB

     5.25%       08/01/2049        3,125      3,393,313

Miami Beach (City of), FL Health Facilities Authority (Mt. Sinai Medical Center); Series 2014, Ref. RB

     5.00%       11/15/2039        710      722,000

Miami-Dade (County of), FL;

          

Series 2012 A, Ref. RB(c)(d)(h)

     5.00%       10/01/2022        2,270      2,274,878

Series 2012 A, Ref. RB(c)(d)(h)

     5.00%       10/01/2022        1,510      1,513,245

Series 2012 B, Ref. RB(c)(d)

     5.00%       10/01/2022        870      871,941

Series 2012 B, Ref. RB(c)(d)

     5.00%       10/01/2022        1,375      1,378,068

Series 2012 B, Ref. RB(c)(d)

     5.00%       10/01/2022        1,450      1,453,235

Series 2016 A, Ref. RB

     5.00%       10/01/2041        965      1,006,711

Miami-Dade (County of), FL Educational Facilities Authority (University of Miami); Series 2018 A, RB(b)

     5.00%       04/01/2053        2,890      3,001,933

Miami-Dade (County of), FL Expressway Authority; Series 2010 A, RB

     5.00%       07/01/2040        1,000      1,005,036

Osceola (County of), FL;

          

Series 2020 A-2, Ref. RB(j)

     0.00%       10/01/2051        1,200      277,870

Series 2020 A-2, Ref. RB(j)

     0.00%       10/01/2052        335      73,488

Series 2020 A-2, Ref. RB(j)

     0.00%       10/01/2053        335      69,874

Series 2020 A-2, Ref. RB(j)

     0.00%       10/01/2054        285      56,521

Palm Beach (County of), FL Health Facilities Authority; Series 2020, RB

     5.00%       06/01/2055        375      373,174

Palm Beach (County of), FL Health Facilities Authority (BRRH Corp. Obligated Group); Series 2014, Ref. RB(c)(d)

     5.00%       12/01/2024        1,125      1,185,561

Putnam (County of), FL Development Authority (Seminole Electric Cooperative); Series 2018 B, Ref. PCR

     5.00%       03/15/2042        625      672,019

Reunion East Community Development District; Series 2005, RB(e)(m)

     5.80%       05/01/2036        197      2

Sarasota (County of), FL Public Hospital District (Sarasota Memorial Hospital); Series 2022, RB

     4.00%       07/01/2052        1,250      1,143,426

South Carolina (State of) Jobs-Economic Development Authority (South Broward Hospital District Obligated Group); Series 2021 A, RB

     3.00%       05/01/2051        620      463,730

Sterling Hill Community Development District; Series 2003 A, RB(m)(n)

     6.20%       05/01/2035        828      446,936

Sumter (County of), FL Industrial Development Authority (Central Florida Health Alliance); Series 2014 A, RB

     5.25%       07/01/2044        1,000      1,017,723

Tallahassee (City of), FL (Tallahassee Memorial Health Care, Inc.); Series 2016, RB

     5.00%       12/01/2055        1,010      1,022,800
                               48,925,755

Georgia–4.18%

          

Atlanta (City of), GA; Series 2015, RB(b)

     5.00%       11/01/2040        6,015      6,318,839

Augusta (City of), GA Development Authority; Series 2018, RB

     4.00%       07/01/2038        2,265      1,805,008

 

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

7                     Invesco Advantage Municipal Income Trust II


      Interest
Rate
      Maturity  
Date
       Principal  
Amount
(000)
     Value

Georgia–(continued)

          

Brookhaven Development Authority;

          

Series 2020, RB(b)(i)

     4.00%       07/01/2044      $      845      $        817,883

Series 2020, RB(b)(i)

     4.00%       07/01/2049        7,150      6,818,201

Fulton (County of), GA Development Authority (Wellstar Health System, Inc.); Series 2017, RAC

     5.00%       04/01/2042        745      774,854

Gainesville (City of) & Hall (County of), GA Hospital Authority (Northeast Georgia Health System, Inc.); Series 2021 A, RB

     3.00%       02/15/2051        370      259,966

Georgia (State of) Municipal Electric Authority of Georgia (Plant Vogtle Units 3 & 4); Series 2021 A, Ref. RB

     4.00%       01/01/2046        660      584,184

Main Street Natural Gas, Inc.; Series 2019 C, RB(d)

     4.00%       09/01/2026        925      927,938
                               18,306,873

Hawaii–3.48%

          

Hawaii (State of); Series 2014 EO, GO Bonds(c)(d)

     5.00%       08/01/2024        4,500      4,720,701

Hawaii (State of) Department of Budget & Finance (Hawaii Pacific Health Obligated Group); Series 2013 A, Ref. RB(c)

     5.50%       07/01/2043        2,500      2,550,361

Hawaii (State of) Department of Transportation (Airports Division);

          

Series 2015 A, RB(h)

     5.00%       07/01/2041        645      664,775

Series 2015 A, RB(h)

     5.00%       07/01/2045        1,295      1,330,352

Series 2018 A, RB(h)

     5.00%       07/01/2043        2,580      2,671,109

Honolulu (City & County of), HI; Series 2012 A, GO Bonds

     5.00%       11/01/2036        1,000      1,003,921

Honolulu (City & County of), HI Wastewater System Revenue; Series 2015 A, RB(b)

     5.00%       07/01/2031        2,160      2,298,365
                               15,239,584

Idaho–0.34%

          

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

     5.25%       11/15/2047        650      523,932

Spring Valley Community Infrastructure District No. 1; Series 2021, RB(g)

     3.75%       09/01/2051        1,245      965,365
                               1,489,297

Illinois–17.60%

          

Bartlett (Village of), IL (Quarry Redevelopment); Series 2007, Ref. RB

     5.60%       01/01/2023        285      285,178

Bolingbrook (Village of), IL; Series 1999 C, Ref. GO Bonds (INS - NATL)(j)(k)

     0.00%       01/01/2029        1,710      1,366,457

Chicago (City of), IL;

          

Series 2002 B, GO Bonds

     5.50%       01/01/2037        795      822,904

Series 2005 D, Ref. GO Bonds

     5.50%       01/01/2040        325      335,503

Series 2007 E, Ref. GO Bonds

     5.50%       01/01/2042        260      267,993

Series 2012, RB

     5.00%       01/01/2042        2,585      2,587,151

Series 2014, RB

     5.00%       11/01/2044        665      675,772

Series 2014, Ref. RB(c)(d)

     5.00%       01/01/2024        890      919,672

Series 2015 A, GO Bonds

     5.50%       01/01/2033        2,590      2,687,208

Series 2017 A, Ref. GO Bonds

     6.00%       01/01/2038        1,550      1,667,365

Chicago (City of), IL (O’Hare International Airport);

          

Series 2013, RB

     5.75%       01/01/2038        1,900      1,915,834

Series 2015 C, RB(h)

     5.00%       01/01/2046        645      651,439

Series 2015 D, RB

     5.00%       01/01/2046        450      463,018

Series 2017 D, RB

     5.25%       01/01/2042        1,035      1,097,222

Series 2022 A, RB (INS - AGM)(h)(k)

     5.50%       01/01/2053        1,045      1,113,758

Chicago (City of), IL Board of Education;

          

Series 2017 H, GO Bonds

     5.00%       12/01/2046        475      485,593

Series 2018 A, Ref. GO Bonds (INS - AGM)(k)

     5.00%       12/01/2032        535      567,461

Series 2018 A, Ref. GO Bonds

     5.00%       12/01/2034        520      541,224

Series 2018 C, Ref. GO Bonds

     5.00%       12/01/2022        750      754,348

Chicago (City of), IL Metropolitan Water Reclamation District (Green Bonds);

          

Series 2016 E, GO Bonds

     5.00%       12/01/2045        1,335      1,409,101

Series 2021 A, GO Bonds

     4.00%       12/01/2051        1,035      969,129

Chicago (City of), IL Midway International Airport;

          

Series 2013 A, Ref. RB(h)

     5.50%       01/01/2031        2,600      2,619,143

Series 2014 A, Ref. RB(h)

     5.00%       01/01/2041        950      963,439

Chicago (City of), IL Transit Authority; Series 2014, RB

     5.00%       12/01/2044        2,590      2,656,966

Chicago Park District; Series 2020 C, GO Bonds (INS - BAM)(k)

     4.00%       01/01/2041        1,485      1,393,765

Cook (County of), IL; Series 2021 A, Ref. RB

     4.00%       11/15/2039        390      378,868

 

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

8                     Invesco Advantage Municipal Income Trust II


      Interest
Rate
      Maturity  
Date
       Principal  
Amount
(000)
     Value

Illinois–(continued)

          

Illinois (State of);

          

Series 2013, GO Bonds (INS - AGM)(k)

     5.25%       07/01/2029      $   1,660      $     1,694,552

Series 2014, GO Bonds

     5.25%       02/01/2034        1,050      1,074,224

Series 2014, GO Bonds

     5.00%       05/01/2035        355      362,363

Series 2014, GO Bonds

     5.00%       05/01/2036        850      867,355

Series 2016, GO Bonds

     5.00%       11/01/2036        895      923,433

Series 2017 C, GO Bonds

     5.00%       11/01/2029        195      207,181

Series 2017 D, GO Bonds

     5.00%       11/01/2024        115      119,050

Series 2017 D, GO Bonds

     5.00%       11/01/2026        1,880      1,993,162

Series 2018 A, GO Bonds

     6.00%       05/01/2027        575      637,245

Series 2018 A, GO Bonds

     5.00%       05/01/2030        935      996,549

Series 2018 A, Ref. GO Bonds

     5.00%       10/01/2022        435      435,756

Series 2020, GO Bonds

     5.50%       05/01/2039        1,040      1,129,900

Illinois (State of) Finance Authority (Centegra Health System); Series 2014 A, RB(c)(d)

     5.00%       09/01/2024        1,100      1,155,083

Illinois (State of) Finance Authority (CITGO Petroleum Corp.); Series 2002, RB(h)

     8.00%       06/01/2032        270      268,867

Illinois (State of) Finance Authority (Lutheran Communities Obligated Group);

          

Series 2019 A, Ref. RB

     5.00%       11/01/2040        45      42,089

Series 2019 A, Ref. RB

     5.00%       11/01/2049        410      367,439

Illinois (State of) Finance Authority (OSF Healthcare System); Series 2015 A, Ref. RB

     5.00%       11/15/2045        1,810      1,854,562

Illinois (State of) Finance Authority (Park Place of Elmhurst); Series 2016, RB

     5.13%       05/15/2060        992      772,300

Illinois (State of) Finance Authority (Roosevelt University); Series 2007, RB

     5.50%       04/01/2037        1,000      999,934

Illinois (State of) Finance Authority (Rush University Medical Center); Series 2015 A, Ref. RB

     5.00%       11/15/2038        1,570      1,616,178

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

     5.25%       10/01/2052        2,460      2,499,180

Illinois (State of) Finance Authority (Three Crowns Park);

          

Series 2017, Ref. RB

     5.00%       02/15/2032        155      156,721

Series 2017, Ref. RB

     5.25%       02/15/2037        145      147,062

Series 2017, Ref. RB

     5.25%       02/15/2047        620      621,689

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

          

Series 2002, RB (INS - AGM)(j)(k)

     0.00%       12/15/2029        2,100      1,626,641

Series 2015 A, RB

     5.50%       06/15/2053        4,500      4,635,442

Illinois (State of) Municipal Electric Agency; Series 2015 A, Ref. RB

     4.00%       02/01/2035        1,510      1,522,037

Illinois (State of) Regional Transportation Authority;

          

Series 2000, RB (INS - NATL)(k)

     6.50%       07/01/2030        1,685      2,008,376

Series 2002 A, RB (INS - NATL)(k)

     6.00%       07/01/2029        860      1,045,801

Series 2018 B, RB

     5.00%       06/01/2040        1,730      1,905,489

Illinois (State of) Sports Facilities Authority;

          

Series 2014, Ref. RB (INS - AGM)(k)

     5.25%       06/15/2031        920      952,005

Series 2014, Ref. RB (INS - AGM)(k)

     5.25%       06/15/2032        840      868,778

Illinois (State of) Toll Highway Authority;

          

Series 2013 A, RB(b)

     5.00%       01/01/2038        3,125      3,145,284

Series 2014 C, RB(b)

     5.00%       01/01/2039        3,760      3,886,204

Series 2015 A, RB(b)

     5.00%       01/01/2040        1,500      1,563,730

Sales Tax Securitization Corp.; Series 2018 A, RB(b)

     5.00%       01/01/2048        3,135      3,298,936
                               76,996,108

Indiana–2.35%

          

Indiana (State of) Finance Authority (Ohio River Bridges East End Crossing);

          

Series 2013 A, RB(c)(d)(h)

     5.00%       07/01/2023        500      509,779

Series 2013 A, RB(c)(d)(h)

     5.00%       07/01/2023        440      448,605

Series 2013, RB(c)(d)(h)

     5.00%       07/01/2023        2,940      2,997,498

Indiana (State of) Finance Authority (Ohio Valley Electrical Corp.); Series 2012 A, RB

     4.25%       11/01/2030        1,555      1,564,090

Indiana (State of) Health Facility Financing Authority; Series 1992 C, Ref. RB(c)

     7.38%       07/01/2023        660      685,081

Indiana (State of) Municipal Power Agency;

          

Series 2013 A, RB(c)(d)

     5.25%       07/01/2023        1,000      1,023,263

Series 2016 A, Ref. RB

     5.00%       01/01/2042        940      990,292

Indianapolis Local Public Improvement Bond Bank (Indianapolis Airport); Series 2019, Ref. RB(h)

     5.00%       01/01/2028        480      520,249

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

     6.75%       01/01/2034        1,500      1,555,989
                               10,294,846

 

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

9                     Invesco Advantage Municipal Income Trust II


      Interest
Rate
      Maturity  
Date
       Principal  
Amount
(000)
     Value

Iowa–1.13%

          

Iowa (State of) Board of Regents (University of Iowa Hospital & Clinics); Series 2022 B, RB

     3.00%       09/01/2056      $   1,210      $        884,122

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

     4.75%       08/01/2042        310      301,427

Iowa (State of) Finance Authority (Iowa Fertilizer Co.); Series 2022, Ref. RB(d)

     5.00%       12/01/2042        2,050      2,102,769

Iowa (State of) Finance Authority (Lifespace Communities, Inc.); Series 2016, RB

     5.00%       05/15/2041        375      362,155

Iowa (State of) Tobacco Settlement Authority; Series 2021 B-1, Ref. RB

     4.00%       06/01/2049        1,345      1,275,016
                               4,925,489

Kansas–0.29%

          

Kansas (State of) Municipal Energy Agency (Jameson Energy Center); Series 2013, RB(c)(d)

     5.75%       07/01/2023        1,215      1,248,735

Kentucky–2.66%

          

Henderson (City of), KY (Pratt Paper LLC); Series 2022 A, RB(g)(h)

     4.70%       01/01/2052        500      496,034

Kentucky (Commonwealth of) Economic Development Finance Authority (Catholic Health Initiatives); Series 2011 B, RB (SIFMA Municipal Swap Index +
1.40%)(d)(o)

     2.90%       02/01/2025        530      531,241

Kentucky (Commonwealth of) Economic Development Finance Authority (Louisville Arena Authority, Inc.); Series 2017 A, Ref. RB (INS - AGM)(k)

     5.00%       12/01/2047        835      838,294

Kentucky (Commonwealth of) Economic Development Finance Authority (Next Generation Kentucky Information Highway);

          

Series 2015 A, RB

     5.00%       07/01/2040        1,515      1,548,353

Series 2015 A, RB

     5.00%       01/01/2045        255      259,533

Kentucky (Commonwealth of) Economic Development Finance Authority (Owensboro Health, Inc.);

          

Series 2017 A, Ref. RB

     5.25%       06/01/2041        945      968,248

Series 2017 A, Ref. RB

     5.00%       06/01/2045        775      781,821

Kentucky (Commonwealth of) Public Energy Authority; Series 2019 C, RB(d)

     4.00%       02/01/2028        1,115      1,114,249

Kentucky (Commonwealth of) Public Transportation Infrastructure Authority (Downtown Crossing); Series 2013 A, RB(c)(d)

     5.75%       07/01/2023        1,000      1,020,685

Kentucky Bond Development Corp.; Series 2020, RB (INS - BAM)(b)(i)(k)

     5.00%       09/01/2044        2,860      3,067,379

Louisville (City of) & Jefferson (County of), KY Metropolitan Government (Norton Healthcare, Inc.); Series 2013 A, RB

     5.50%       10/01/2033        1,000      1,023,736
                               11,649,573

Louisiana–0.89%

          

Louisiana (State of) Energy & Power Authority (LEPA Unit No. 1); Series 2013 A,
RB(c)(d)

     5.25%       06/01/2023        2,000      2,042,040

Louisiana (State of) Local Government Environmental Facilities & Community Development Authority (St. John the Baptist); Series 2019, RB(g)

     3.90%       11/01/2044        690      552,557

New Orleans (City of), LA Aviation Board (Parking Facilities Corp. Consolidated Garage System); Series 2018 A, RB (INS - AGM)(k)

     5.00%       10/01/2043        335      355,000

Tobacco Settlement Financing Corp.; Series 2013 A, Ref. RB

     5.25%       05/15/2033        905      924,091
                               3,873,688

Maryland–0.82%

          

Brunswick (City of), MD (Brunswick Crossing); Series 2019, RB

     5.00%       07/01/2036        285      293,717

Maryland (State of) Health & Higher Educational Facilities Authority (LifeBridge Health); Series 2016, Ref. RB

     5.00%       07/01/2047        590      612,373

Maryland (State of) Health & Higher Educational Facilities Authority (Peninsula Regional Medical Center); Series 2015, Ref. RB(c)(d)

     5.00%       07/01/2024        1,205      1,258,337

Maryland (State of) Health & Higher Educational Facilities Authority (Stevenson University); Series 2021 A, Ref. RB

     4.00%       06/01/2041        375      340,130

Prince Georges (County of), MD (Collington Episcopal Life Care Community, Inc.); Series 2017, Ref. RB

     5.00%       04/01/2029        690      679,346

Rockville (City of), MD (Ingleside at King Farm); Series 2017 B, RB

     5.00%       11/01/2047        405      380,699
                               3,564,602

Massachusetts–3.42%

          

Massachusetts (Commonwealth of) Department of Transportation; Series 2010 A-1, VRD Metropolitan Highway System RB (LOC - TD Bank, N.A.)(p)(q)

     1.49%       01/01/2037        10,000      10,000,000

Massachusetts (Commonwealth of) Development Finance Agency (Dana-Farber Cancer Institute); Series 2016, RB

     5.00%       12/01/2046        1,300      1,364,700

Massachusetts (Commonwealth of) Development Finance Agency (Emerson College); Series 2016 A, RB

     5.00%       01/01/2047        2,525      2,586,732

Massachusetts (Commonwealth of) Development Finance Agency (Milford Regional Medical Center); Series 2020, Ref. RB(g)

     5.00%       07/15/2036        235      237,972

 

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

10                     Invesco Advantage Municipal Income Trust II


      Interest
Rate
      Maturity  
Date
       Principal  
Amount
(000)
     Value

Massachusetts–(continued)

          

Massachusetts (Commonwealth of) Port Authority; Series 2019 A, Ref. RB(h)

     5.00%       07/01/2036      $      740      $        792,810
                               14,982,214

Michigan–4.16%

          

Academy of Warren; Series 2020 A, RB(g)

     5.50%       05/01/2050        250      212,708

Detroit (City of), MI Downtown Development Authority; Series 2018 A, Ref. RB
(INS - AGM)(b)(i)(k)

     5.00%       07/01/2043        1,590      1,647,349

Lakeview Public School District; Series 2022, GO Bonds

     3.00%       11/01/2034        240      219,558

Michigan (State of) Building Authority (Facilities Program); Series 2016 I, RB(b)

     5.00%       04/15/2041        2,190      2,322,299

Michigan (State of) Finance Authority (Beaumont Health Credit Group); Series 2016, RB

     5.00%       11/01/2044        1,415      1,482,036

Michigan (State of) Finance Authority (Charter County of Wayne Criminal Justice Center); Series 2018, RB

     5.00%       11/01/2043        615      670,438

Michigan (State of) Finance Authority (Detroit Water & Sewerage Department);

          

Series 2014 C-3, RB (INS - AGM)(k)

     5.00%       07/01/2031        2,500      2,601,527

Series 2014 C-6, Ref. RB

     5.00%       07/01/2033        475      492,649

Series 2014 D-4, Ref. RB

     5.00%       07/01/2029        475      495,243

Series 2015, RB

     5.00%       07/01/2035        970      1,021,819

Michigan (State of) Finance Authority (Henry Ford Health System); Series 2019 A, RB

     5.00%       11/15/2048        1,000      1,027,024

Michigan (State of) Finance Authority (Landmark Academy);

          

Series 2020, Ref. RB

     5.00%       06/01/2035        125      119,869

Series 2020, Ref. RB

     5.00%       06/01/2045        360      327,216

Michigan (State of) Finance Authority (MidMichigan Health Credit Group); Series 2014, Ref. RB(c)(d)

     5.00%       06/01/2024        1,740      1,815,217

Michigan (State of) Finance Authority (Trinity Health Credit Group); Series 2017 MI, RB(b)(c)(i)

     5.00%       12/01/2046        2,965      3,121,888

Michigan (State of) Strategic Fund (I-75 Improvement Project); Series 2018, RB(h)

     5.00%       06/30/2033        600      612,686
                               18,189,526

Minnesota–0.59%

          

Bethel (City of), MN (Spectrum High School); Series 2017 A, Ref. RB

     4.25%       07/01/2047        400      348,332

Minnesota (State of) Municipal Gas Agency; Series 2022 A, RB(d)

     4.00%       12/01/2027        1,000      1,014,945

St. Cloud (City of), MN (CentraCare Health System); Series 2019, Ref. RB

     5.00%       05/01/2048        925      964,144

St. Paul (City of), MN Housing & Redevelopment Authority (Hope Community Academy); Series 2020, RB

     5.00%       12/01/2055        315      267,048
                               2,594,469

Mississippi–0.39%

          

Mississippi Business Finance Corp. (System Energy Resources, Inc.); Series 2021, RB

     2.38%       06/01/2044        830      561,318

West Rankin Utility Authority; Series 2018, RB(c)(d)

     5.00%       01/01/2028        1,010      1,139,440
                               1,700,758

Missouri–1.69%

          

Kansas City (City of), MO Industrial Development Authority (Downtown Redevelopment District);

          

Series 2011 A, Ref. RB

     5.50%       09/01/2027        800      802,235

Series 2011 A, Ref. RB

     5.50%       09/01/2028        1,670      1,674,667

Kansas City (City of), MO Industrial Development Authority (Kansas City International Airport);

                              

Series 2019 B, RB (INS - AGM)(h)(k)

     5.00%       03/01/2049        745      769,061

Series 2019 B, RB(h)

     5.00%       03/01/2054        860      876,557

Kirkwood (City of), MO Industrial Development Authority (Aberdeen Heights); Series 2017 A, Ref. RB

     5.25%       05/15/2050        385      347,153

Missouri (State of) Health & Educational Facilities Authority (Lutheran Senior Services); Series 2019, Ref. RB

     5.00%       02/01/2048        245      248,180

Missouri (State of) Health & Educational Facilities Authority (St. Louis College of Pharmacy); Series 2013, RB(c)

     5.25%       05/01/2033        1,175      1,196,667

St. Louis (County of), MO Industrial Development Authority (Friendship Village West County); Series 2018 A, RB

     5.00%       09/01/2038        1,565      1,480,858
                               7,395,378

Nebraska–1.32%

          

Central Plains Energy Project; Series 2012, RB

     5.00%       09/01/2042        3,250      3,250,000

Central Plains Energy Project (No. 3);

          

Series 2012, RB(r)

     5.25%       09/01/2037        1,000      1,000,000

Series 2017 A, Ref. RB

     5.00%       09/01/2034        155      166,155

 

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

11                     Invesco Advantage Municipal Income Trust II


      Interest
Rate
      Maturity  
Date
       Principal  
Amount
(000)
     Value

Nebraska–(continued)

          

Central Plains Energy Project (No. 4); Series 2018, RB(d)

     5.00%       01/01/2024      $   1,345      $     1,376,200
                               5,792,355

New Hampshire–0.48%

          

New Hampshire (State of) Business Finance Authority;

          

Series 2020-1A, RB

     4.13%       01/20/2034        1      941

Series 2022-1, Class A

     4.38%       09/20/2036        1,252      1,200,168

New Hampshire (State of) Health and Education Facilities Authority; Series 2020 A, RB

     5.00%       08/01/2059        820      900,843
                               2,101,952

New Jersey–6.56%

          

Garden State Preservation Trust; Series 2005 A, RB (INS - AGM)(k)

     5.75%       11/01/2028        685      765,831

New Jersey (State of) Economic Development Authority;

          

Series 2004 A, RB (INS - BHAC)(b)(k)

     5.25%       07/01/2026        6,625      7,208,949

Series 2005 N-1, Ref. RB (INS - NATL)(b)(k)

     5.50%       09/01/2022        2,820      2,820,000

New Jersey (State of) Economic Development Authority (Continental Airlines, Inc.); Series 1999, RB(h)

     5.13%       09/15/2023        175      176,930

New Jersey (State of) Economic Development Authority (Port Newark Container Terminal LLC); Series 2017, Ref. RB(h)

     5.00%       10/01/2037        715      742,226

New Jersey (State of) Economic Development Authority (Social Bonds); Series 2021, RB

     4.00%       06/15/2040        1,180      1,130,449

New Jersey (State of) Economic Development Authority (The Goethals Bridge Replacement); Series 2013, RB(h)

     5.38%       01/01/2043        2,000      2,035,233

New Jersey (State of) Health Care Facilities Financing Authority (Inspira Health Obligated Group); Series 2017, RB

     4.00%       07/01/2047        1,940      1,803,734

New Jersey (State of) Higher Education Student Assistance Authority; Series 2018 B, Ref. RB(h)

     5.00%       12/01/2024        235      244,978

New Jersey (State of) Transportation Trust Fund Authority;

          

Series 2010 D, RB

     5.00%       12/15/2023        1,700      1,746,989

Series 2014, RB

     5.00%       06/15/2030        685      744,441

Series 2015 AA, RB

     5.25%       06/15/2033        1,150      1,198,385

Series 2016 A-1, RN

     5.00%       06/15/2028        770      829,159

Series 2018 A, Ref. RB

     5.00%       12/15/2024        355      371,365

Series 2018 A, Ref. RB

     5.00%       12/15/2032        925      993,592

Series 2018 A, RN(b)(i)

     5.00%       06/15/2029        1,190      1,278,848

Series 2018 A, RN(b)(i)

     5.00%       06/15/2030        405      434,162

Series 2018 A, RN(b)(i)

     5.00%       06/15/2031        565      603,887

Series 2021 A, Ref. RB

     5.00%       06/15/2033        370      403,772

Salem (County of), NJ Pollution Control Financing Authority (Chambers);
Series 2014 A, PCR(c)(h)

     5.00%       12/01/2023        580      590,746

Tobacco Settlement Financing Corp.;

          

Series 2018 A, Ref. RB

     5.00%       06/01/2046        1,880      1,942,392

Series 2018 A, Ref. RB

     5.25%       06/01/2046        625      654,260
                               28,720,328

New Mexico–0.06%

          

Santa Fe (City of), NM (El Castillo Retirement); Series 2019 A, RB

     5.00%       05/15/2049        300      268,331

New York–24.25%

          

Build NYC Resource Corp. (Brooklyn Navy Yard); Series 2019, Ref. RB(g)(h)

     5.25%       12/31/2033        200      188,877

Erie Tobacco Asset Securitization Corp.; Series 2005 A, RB

     5.00%       06/01/2045        2,070      2,069,770

Hudson Yards Infrastructure Corp.;

          

Series 2017 A, Ref. RB

     4.00%       02/15/2044        1,875      1,748,334

Series 2017 A, Ref. RB (INS - AGM)(k)

     4.00%       02/15/2047        595      570,448

Metropolitan Transportation Authority;

          

Series 2013 B, RB

     5.00%       11/15/2038        1,425      1,434,754

Series 2016 B, Ref. RB

     5.00%       11/15/2037        110      114,024

Subseries 2015 E-1, VRD RB (LOC - Barclays Bank PLC)(p)(q)

     0.82%       11/15/2050        1,950      1,950,000

Metropolitan Transportation Authority (Bidding Group 1);

          

Series 2022 A, RB

     4.00%       11/15/2040        1,340      1,297,769

Series 2022 A, RB

     4.00%       11/15/2043        2,235      2,145,229

 

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

12                     Invesco Advantage Municipal Income Trust II


      Interest
Rate
      Maturity  
Date
       Principal  
Amount
(000)
     Value

New York–(continued)

          

Metropolitan Transportation Authority (Green Bonds);

          

Series 2016 A-1, RB

     5.00%       11/15/2041      $   1,510      $     1,549,891

Series 2017 C-1, Ref. RB

     5.00%       11/15/2023        450      463,418

Series 2020 A-1, RB (INS - AGM)(k)

     4.00%       11/15/2041        1,495      1,444,598

Series 2020 A-1, RB (INS - BAM)(k)

     4.00%       11/15/2053        295      276,799

Series 2020 C-1, RB

     5.25%       11/15/2055        995      1,035,304

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

          

Series 2020 221, RB(h)

     4.00%       07/15/2055        1,750      1,547,457

Two Hundred Seventh Series 2018, Ref. RB(b)(h)(i)

     5.00%       09/15/2028        2,460      2,687,367

New York (City of), NY;

          

Series 2020 BB-1, RB

     4.00%       06/15/2050        1,250      1,188,809

Series 2020 C, GO Bonds

     5.00%       08/01/2043        1,835      1,971,576

Subseries 2022 D-1, GO Bonds(b)

     5.25%       05/01/2038        1,015      1,144,295

Subseries 2022 D-1, GO Bonds(b)

     5.25%       05/01/2042        1,725      1,913,510

New York (City of), NY Industrial Development Agency (Queens Baseball Stadium); Series 2021 A, Ref. RB (INS - AGM)(k)

     3.00%       01/01/2046        1,875      1,399,939

New York (City of), NY Municipal Water Finance Authority; Series 2013 DD, RB

     5.00%       06/15/2035        1,000      1,019,501

New York (City of), NY Transitional Finance Authority;

          

Series 2018 S-2A, Ref. RB

     5.00%       07/15/2034        925      1,017,544

Subseries 2020 B-1, RB(b)

     4.00%       11/01/2045        2,490      2,363,904

New York (State of) Dormitory Authority; Series 2018 E, RB(b)

     5.00%       03/15/2045        4,260      4,552,611

New York (State of) Dormitory Authority (Bidding Group 3); Series 2017 B, Ref. RB

     4.00%       02/15/2044        2,510      2,399,637

New York (State of) Dormitory Authority (General Purpose);

          

Series 2013 A, RB(c)(d)

     5.00%       02/15/2023        7,900      7,999,502

Series 2014 C, RB(b)

     5.00%       03/15/2040        4,210      4,346,639

Series 2018 A, Ref. RB

     5.25%       03/15/2038        925      1,017,046

New York (State of) Dormitory Authority (Memorial Sloan Kettering Cancer); Series 2022 1-B, RB

     4.00%       07/01/2051        2,725      2,559,247

New York (State of) Mortgage Agency (Social Bonds); Series 2021, RB

     3.25%       10/01/2051        500      489,256

New York (State of) Power Authority; Series 2020 A, RB(b)

     4.00%       11/15/2045        2,740      2,587,710

New York (State of) Power Authority (Green Bonds); Series 2020, RB(b)

     4.00%       11/15/2055        3,130      2,883,874

New York (State of) Thruway Authority;

          

Series 2019 B, RB(b)

     4.00%       01/01/2050        4,030      3,738,212

Series 2019 B, RB (INS - AGM)(b)(i)(k)

     4.00%       01/01/2050        1,950      1,838,777

New York (State of) Utility Debt Securitization Authority; Series 2013 TE, RB(b)

     5.00%       12/15/2031        2,785      2,875,576

New York Counties Tobacco Trust IV; Series 2005 A, RB

     5.00%       06/01/2045        210      202,220

New York Counties Tobacco Trust VI; Series 2016 A-1, Ref. RB

     5.75%       06/01/2043        2,370      2,556,575

New York Liberty Development Corp. (3 World Trade Center); Series 2014, Class 1, Ref. RB(g)

     5.00%       11/15/2044        4,375      4,232,251

New York State Urban Development Corp. (Bidding Group 3); Series 2021 A, Ref. RB

     4.00%       03/15/2045        2,490      2,372,891

New York Transportation Development Corp. (American Airlines, Inc. John F. Kennedy International Airport);

          

Series 2020, Ref. RB(h)

     5.25%       08/01/2031        425      451,287

Series 2020, Ref. RB(h)

     5.38%       08/01/2036        705      759,767

New York Transportation Development Corp. (American Airlines, Inc.);

          

Series 2016, Ref. RB(h)

     5.00%       08/01/2026        1,050      1,055,451

Series 2016, Ref. RB(h)

     5.00%       08/01/2031        1,000      1,005,191

New York Transportation Development Corp. (Delta Air Lines, Inc. LaGuardia Airport Terminals C&D Redevelopment);

          

Series 2018, RB(h)

     5.00%       01/01/2031        180      187,194

Series 2018, RB(h)

     5.00%       01/01/2033        1,565      1,616,490

Series 2018, RB(h)

     5.00%       01/01/2034        1,285      1,325,570

Series 2018, RB(h)

     4.00%       01/01/2036        875      828,749

Series 2018, RB(h)

     5.00%       01/01/2036        585      602,197

Series 2020, RB(h)

     5.00%       10/01/2040        1,495      1,539,896

New York Transportation Development Corp. (LaGuardia Airport Terminal B Redevelopment);

          

Series 2016 A, RB(h)

     5.00%       07/01/2046        2,465      2,522,811

Series 2016 A, RB(h)

     5.25%       01/01/2050        1,355      1,393,143

New York Transportation Development Corp. (Terminal 4 JFK International Airport);

          

Series 2022, RB(h)

     5.00%       12/01/2033        975      1,040,249

Series 2022, RB(h)

     5.00%       12/01/2038        455      476,849

Onondaga (County of), NY Trust for Cultural Resources (Syracuse University); Series 2019, Ref. RB

     4.00%       12/01/2047        1,905      1,790,047

 

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

13                     Invesco Advantage Municipal Income Trust II


      Interest
Rate
      Maturity  
Date
       Principal  
Amount
(000)
     Value

New York–(continued)

          

Rockland Tobacco Asset Securitization Corp.; Series 2001, RB

     5.75%       08/15/2043      $   1,295      $     1,306,289

Suffolk Tobacco Asset Securitization Corp.; Series 2021, Ref. RB

     4.00%       06/01/2050        310      280,544

Triborough Bridge & Tunnel Authority;

          

Series 2021 C-1A, RB

     5.00%       05/15/2051        515      554,174

Series 2022 C, RB

     5.00%       05/15/2047        1,485      1,606,762

Triborough Bridge & Tunnel Authority (MTA Bridges & Tunnels);

          

Series 2020 A, RB

     5.00%       11/15/2049        3,710      3,945,000

Series 2020 A, RB

     5.00%       11/15/2054        780      821,590

TSASC, Inc.; Series 2016 B, Ref. RB

     5.00%       06/01/2045        1,815      1,790,587
                               106,094,978

North Carolina–2.53%

          

North Carolina (State of) Department of Transportation (I-77 HOT Lanes); Series 2015, RB(h)

     5.00%       06/30/2054        1,810      1,812,085

North Carolina Capital Facilities Finance Agency; Series 2015 B, Ref. RB(b)(c)(d)

     5.00%       10/01/2055        7,265      7,827,538

University of North Carolina at Chapel Hill; Series 2019, RB

     5.00%       02/01/2049        1,230      1,415,661
                               11,055,284

North Dakota–0.68%

          

Ward (County of), ND (Trinity Obligated Group);

          

Series 2017 C, RB

     5.00%       06/01/2043        1,615      1,590,795

Series 2017 C, RB

     5.00%       06/01/2048        1,440      1,386,853
                               2,977,648

Ohio–5.49%

          

Akron, Bath & Copley Joint Township Hospital District (Summa Health Obligated Group); Series 2016, Ref. RB

     5.25%       11/15/2046        645      661,037

American Municipal Power, Inc. (Combined Hydroelectric); Series 2016 A, Ref. RB

     5.00%       02/15/2037        1,095      1,151,934

American Municipal Power, Inc. (Greenup Hydroelectric); Series 2016 A, RB

     5.00%       02/15/2046        405      421,899

American Municipal Power, Inc. (Prairie State Energy); Series 2015 A, Ref. RB

     5.00%       02/15/2042        820      836,075

Buckeye Tobacco Settlement Financing Authority;

          

Series 2020 A-2, Ref. RB

     4.00%       06/01/2039        355      347,760

Series 2020 A-2, Ref. RB

     4.00%       06/01/2048        4,135      3,706,260

Series 2020 B-2, Ref. RB

     5.00%       06/01/2055        5,930      5,648,195

Series 2020 B-3, Ref. RB(j)

     0.00%       06/01/2057        6,405      775,366

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

     6.50%       01/01/2034        900      915,814

Columbus (City of) & Franklin (County of), OH Finance Authority (Easton); Series 2020, RB(g)

     5.00%       06/01/2028        535      541,727

Cuyahoga (County of), OH (MetroHealth System); Series 2017, Ref. RB

     5.50%       02/15/2052        1,290      1,338,694

Hamilton (County of), OH (Life Enriching Communities); Series 2016, Ref. RB

     5.00%       01/01/2046        1,135      1,099,970

Hamilton (County of), OH (Trihealth, Inc. Obligated Group); Series 2017 A, RB

     5.00%       08/15/2047        1,885      1,932,892

Lucas (County of), OH (ProMedica Healthcare System); Series 2018 A, Ref. RB

     5.25%       11/15/2048        750      531,617

Montgomery (County of), OH (Trousdale Foundation Properties); Series 2018 A, RB (Acquired 08/29/2018; Cost $1,004,679)(f)(g)

     6.00%       04/01/2038        1,025      385,400

Ohio (State of) (Portsmouth Bypass); Series 2015, RB (INS - AGM)(h)(k)

     5.00%       12/31/2039        615      634,991

Ohio (State of) (University Hospitals Health System, Inc.); Series 2021 A, Ref. RB

     4.00%       01/15/2046        1,865      1,735,837

Ohio (State of) Air Quality Development Authority (Ohio Valley Electric Corp.); Series 2014, RB(d)(h)

     2.60%       10/01/2029        1,000      915,493

Ohio (State of) Air Quality Development Authority (Pratt Paper LLC); Series 2017,
RB(g)(h)

     4.25%       01/15/2038        440      440,400
                               24,021,361

Oklahoma–2.05%

          

Edmond Public Works Authority;

          

Series 2017, RB(b)

     5.00%       07/01/2042        2,035      2,217,409

Series 2017, RB(b)

     5.00%       07/01/2047        1,985      2,148,961

Oklahoma (State of) Development Finance Authority (OU Medicine);

          

Series 2018 B, RB

     5.50%       08/15/2052        1,270      1,205,219

Series 2018 B, RB

     5.50%       08/15/2057        2,475      2,334,948

Oklahoma (State of) Development Finance Authority (Provident Oklahoma Education Resources, Inc.-Cross Village Student Housing); Series 2017, RB(e)

     5.00%       08/01/2052        1,485      1,485

Oklahoma (State of) Water Resources Board; Series 2022 B, RB

     5.00%       10/01/2047        960      1,076,841
                               8,984,863

 

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

14                     Invesco Advantage Municipal Income Trust II


      Interest
Rate
      Maturity  
Date
       Principal  
Amount
(000)
     Value

Oregon–0.08%

          

Clackamas (County of), OR Hospital Facility Authority (Rose Villa); Series 2020 A, Ref. RB

     5.38%       11/15/2055      $      375      $        362,856

Pennsylvania–3.68%

          

Allegheny (County of), PA Hospital Development Authority (Allegheny Health Network Obligated Group Issue);

          

Series 2018 A, Ref. RB

     4.00%       04/01/2044        1,540      1,447,272

Series 2018 A, Ref. RB

     5.00%       04/01/2047        1,000      1,028,241

Coatesville School District; Series 2020 A, GO Bonds (INS - BAM)(j)(k)

     0.00%       10/01/2036        500      261,522

Franklin (County of), PA Industrial Development Authority (Menno-Haven, Inc.); Series 2018, Ref. RB

     5.00%       12/01/2025        500      506,686

Pennsylvania (Commonwealth of) Economic Development Financing Authority (UPMC); Series 2021 A, Ref. RB

     4.00%       10/15/2037        690      683,128

Pennsylvania (Commonwealth of) Turnpike Commission;

          

Series 2014 A, RB

     4.75%       12/01/2037        740      795,267

Series 2014 A-2, RB(l)

     5.13%       12/01/2039        1,000      987,764

Series 2017 B-1, RB

     5.25%       06/01/2047        1,750      1,834,931

Series 2018 A-2, RB

     5.00%       12/01/2048        890      941,094

Series 2018 B, RB

     5.25%       12/01/2048        875      934,240

Series 2021 A, RB

     4.00%       12/01/2050        930      851,500

Philadelphia (City of), PA;

          

Series 2017 A, RB

     5.00%       10/01/2052        840      896,014

Series 2017 B, Ref. RB(h)

     5.00%       07/01/2047        2,190      2,234,775

Series 2021, Ref. RB (INS - AGM)(h)(k)

     4.00%       07/01/2041        1,230      1,160,686

Philadelphia (City of), PA Authority for Industrial Development (String Theory Charter School); Series 2020, Ref. RB(g)

     5.00%       06/15/2050        310      305,022

Philadelphia (City of), PA Authority for Industrial Development (Thomas Jefferson University);

          

Series 2017 A, Ref. RB

     5.00%       09/01/2035        545      573,494

Series 2017 A, Ref. RB

     5.00%       09/01/2047        645      665,609
                               16,107,245

Puerto Rico–6.63%

          

Children’s Trust Fund;

          

Series 2002, RB

     5.50%       05/15/2039        2,575      2,615,233

Series 2002, RB

     5.63%       05/15/2043        1,110      1,129,930

Series 2005 A, RB(j)

     0.00%       05/15/2050        4,515      770,298

Series 2005 B, RB(j)

     0.00%       05/15/2055        2,000      194,833

Series 2008 A, RB(j)

     0.00%       05/15/2057        11,190      690,400

Series 2008 B, RB(j)

     0.00%       05/15/2057        28,010      1,362,684

Puerto Rico (Commonwealth of);

          

Series 2021 A, GO Bonds(j)

     0.00%       07/01/2024        1,092      1,009,296

Series 2021 A-1, GO Bonds

     5.25%       07/01/2023        1,408      1,429,274

Series 2021 A-1, GO Bonds

     5.63%       07/01/2027        875      928,554

Puerto Rico (Commonwealth of) Electric Power Authority;

          

Series 2007 VV, Ref. RB (Acquired 04/07/2020-04/28/2020; Cost $1,452,264)
(INS - NATL)(f)(k)

     5.25%       07/01/2032        1,440      1,462,441

Series 2007 VV, Ref. RB (Acquired 06/27/2018; Cost $557,625) (INS - NATL)(f)(k)

     5.25%       07/01/2033        550      557,378

Series 2007 VV, Ref. RB (Acquired 07/19/2018; Cost $507,566) (INS - NATL)(f)(k)

     5.25%       07/01/2035        480      484,925

Puerto Rico (Commonwealth of) Highway & Transportation Authority;

          

Series 1998 A, RB (INS - NATL)(k)

     4.75%       07/01/2038        500      501,157

Series 2007 CC, Ref. RB (INS - AGM)(k)

     5.25%       07/01/2033        920      936,401

Series 2007 N, Ref. RB (INS - NATL)(k)

     5.25%       07/01/2032        575      583,961

Series 2007 N, Ref. RB (INS - AGC)(k)

     5.25%       07/01/2034        900      915,518

Series 2007 N, Ref. RB (INS - AGC)(k)

     5.25%       07/01/2036        800      811,988

 

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

15                     Invesco Advantage Municipal Income Trust II


      Interest
Rate
      Maturity  
Date
       Principal  
Amount
(000)
     Value

Puerto Rico–(continued)

          

Puerto Rico Sales Tax Financing Corp.;

          

Series 2018 A-1, RB(j)

     0.00%       07/01/2027      $        335      $        280,964

Series 2018 A-1, RB(j)

     0.00%       07/01/2029        785      601,289

Series 2018 A-1, RB(j)

     0.00%       07/01/2031        1,830      1,267,787

Series 2018 A-1, RB(j)

     0.00%       07/01/2033        650      405,692

Series 2018 A-1, RB(j)

     0.00%       07/01/2051        16,370      3,491,214

Series 2018 A-1, RB

     4.75%       07/01/2053        1,115      1,066,277

Series 2018 A-1, RB

     5.00%       07/01/2058        4,215      4,089,000

Series 2019 A-2, RB

     4.33%       07/01/2040        1,445      1,406,375
                               28,992,869

Rhode Island–0.13%

          

Tobacco Settlement Financing Corp.; Series 2015 A, Ref. RB

     5.00%       06/01/2035        530      543,905

South Carolina–1.52%

          

South Carolina (State of) Jobs-Economic Development Authority (Palmetto Health Alliance); Series 2013 A, Ref. RB(c)(d)

     5.25%       08/01/2023        1,200      1,231,147

South Carolina (State of) Ports Authority;

          

Series 2015, RB(c)(d)(h)

     5.25%       07/01/2025        2,620      2,813,742

Series 2015, RB(c)(d)(h)

     5.25%       07/01/2025        180      193,311

Series 2015, RB(c)(d)(h)

     5.25%       07/01/2025        850      912,855

South Carolina (State of) Public Service Authority;

          

Series 2014 C, Ref. RB

     5.00%       12/01/2046        890      904,280

Series 2022 A, RB

     4.00%       12/01/2052        675      611,303
                               6,666,638

South Dakota–1.02%

          

South Dakota (State of) Health & Educational Facilities Authority (Avera Health); Series 2017, Ref. RB

     4.00%       07/01/2042        2,225      2,080,407

South Dakota (State of) Health & Educational Facilities Authority (Sanford Obligated Group);

          

Series 2014 B, RB

     5.00%       11/01/2044        1,235      1,264,251

Series 2015, Ref. RB

     5.00%       11/01/2045        1,100      1,132,369
                               4,477,027

Tennessee–3.36%

          

Clarksville (City of), TN; Series 2021 A, RB

     4.00%       02/01/2051        1,200      1,140,683

Greeneville (Town of), TN Health & Educational Facilities Board (Ballad Health Obligated Group); Series 2018 A, Ref. RB

     5.00%       07/01/2036        1,295      1,378,803

Johnson City (City of), TN Health & Educational Facilities Board (Mountain States Health Alliance); Series 2000 A, Ref. RB (INS - NATL)(j)(k)

     0.00%       07/01/2026        12,525      11,001,676

Metropolitan Nashville Airport Authority (The); Series 2019 B, RB(h)

     5.00%       07/01/2054        430      439,665

Nashville (City of) & Davidson (County of), TN Metropolitan Government Health & Educational Facilities Board (The) (Lipscomb University); Series 2019 A, Ref. RB

     5.00%       10/01/2034        715      742,136
                               14,702,963

Texas–17.11%

          

Austin (City of), TX; Series 2012, Ref. RB

     5.00%       11/15/2042        1,600      1,606,169

Central Texas Regional Mobility Authority;

          

Series 2020 B, Ref. RB

     5.00%       01/01/2045        480      505,262

Series 2021 B, RB

     5.00%       01/01/2046        500      527,095

Clifton Higher Education Finance Corp. (Idea Public School); Series 2021 T, RB
(CEP - Texas Permanent School Fund)

     4.00%       08/15/2050        1,000      919,021

Clifton Higher Education Finance Corp. (International Leadership of Texas); Series 2018 D, RB

     5.75%       08/15/2033        1,250      1,296,219

Dallas & Fort Worth (Cities of), TX (Dallas/Fort Worth International Airport);
Series 2013 A, RB(c)(d)(h)

     5.00%       11/01/2022        1,000      1,004,271

El Paso (City of), TX; Series 2022 A, RB

     4.00%       03/01/2048        2,295      2,194,991

Forney Independent School District; Series 2022 B, GO Bonds (CEP - Texas Permanent School Fund)

     4.00%       08/15/2052        1,125      1,072,616

Harris (County of), TX Toll Road Authority (The); Series 2021, Ref. RB

     4.00%       08/15/2050        965      895,719

Harris County Health Facilities Development Corp. (Methodist Hospital System); Series 2008 A-2, Ref. VRD RB(p)

     0.90%       12/01/2041        5,495      5,495,000

Houston (City of), TX (United Airlines, Inc.); Series 2021 A, RB(h)

     4.00%       07/01/2041        435      393,660

Houston (City of), TX Airport System (United Airlines, Inc. Terminal E); Series 2014, Ref. RB(h)

     4.75%       07/01/2024        1,320      1,334,656

Houston (City of), TX Airport System (United Airlines, Inc.); Series 2018, RB(h)

     5.00%       07/15/2028        375      386,704

 

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

16                     Invesco Advantage Municipal Income Trust II


      Interest
Rate
      Maturity  
Date
       Principal  
Amount
(000)
     Value

Texas–(continued)

          

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

     5.50%       08/15/2024      $   1,015      $     1,065,469

Matagorda (County of), TX Navigation District No. 1 (Houston Lighting & Power Co.); Series 1997, Ref. RB (INS - AMBAC)(h)(k)

     5.13%       11/01/2028        5,000      5,500,833

Mission Economic Development Corp. (Natgasoline); Series 2018, Ref. RB(g)(h)

     4.63%       10/01/2031        2,305      2,339,584

New Hope Cultural Education Facilities Finance Corp. (4-K Housing, Inc.-Stoney Brook); Series 2017 B, RB

     5.00%       07/01/2047        1,000      450,000

New Hope Cultural Education Facilities Finance Corp. (Buckingham Senior Living Community);

          

Series 2021 A-1, RB

     7.50%       11/15/2037        60      51,864

Series 2021, RB

     2.00%       11/15/2061        1,585      831,462

New Hope Cultural Education Facilities Finance Corp. (Carillon Lifecare Community); Series 2016, Ref. RB

     5.00%       07/01/2046        1,080      856,383

New Hope Cultural Education Facilities Finance Corp. (CHF-Collegiate Housing College Station I, LLC - Texas A&M University); Series 2014 A, RB (INS - AGM)(k)

     5.00%       04/01/2046        2,505      2,557,921

New Hope Cultural Education Facilities Finance Corp. (Jubilee Academic Center); Series 2021, Ref. RB(g)

     4.00%       08/15/2051        920      754,724

New Hope Cultural Education Facilities Finance Corp. (Longhorn Village);

          

Series 2017, Ref. RB

     5.00%       01/01/2042        370      368,612

Series 2017, Ref. RB

     5.00%       01/01/2047        460      451,709

New Hope Cultural Education Facilities Finance Corp. (Presbyterian Village North);

          

Series 2018, Ref. RB

     5.00%       10/01/2027        175      175,772

Series 2018, Ref. RB

     5.00%       10/01/2028        1,000      997,885

Series 2020, RB

     5.25%       10/01/2055        1,870      1,671,672

North Texas Tollway Authority; Series 2015 B, RB(b)(i)

     5.00%       01/01/2040        7,525      7,572,822

San Antonio (City of), TX;

          

Series 2013, RB(c)(d)

     5.00%       02/01/2023        2,000      2,022,095

Series 2021 A, RB

     5.00%       02/01/2046        1,310      1,401,719

San Antonio Independent School District; Series 2022, GO Bonds (CEP -Texas Permanent School Fund)

     5.00%       08/15/2052        3,335      3,683,460

Tarrant County Cultural Education Facilities Finance Corp.; Series 2016 A, Ref. RB(b)

     5.00%       02/15/2047        2,585      2,702,383

Tarrant County Cultural Education Facilities Finance Corp. (Air Force Village Obligated Group);

          

Series 2016, Ref. RB

     5.00%       05/15/2037        1,610      1,608,219

Series 2016, Ref. RB

     5.00%       05/15/2045        755      730,074

Tarrant County Cultural Education Facilities Finance Corp. (C.C. Young Memorial Home);

          

Series 2007, RB (Acquired 12/19/2007; Cost $314,153)(e)(f)

     5.75%       02/15/2025        335      217,750

Series 2017 A, RB (Acquired 12/15/2016; Cost $1,504,009)(e)(f)

     6.38%       02/15/2048        1,490      968,500

Tarrant County Cultural Education Facilities Finance Corp. (MRC Stevenson Oaks);

          

Series 2020, Ref. RB

     6.63%       11/15/2041        60      60,161

Series 2020, Ref. RB

     6.75%       11/15/2051        60      58,941

Series 2020, Ref. RB

     6.88%       11/15/2055        60      59,565

Tarrant County Cultural Education Facilities Finance Corp. (Texas Health Resources System); Series 2016 A, Ref. RB

     5.00%       02/15/2041        3,210      3,382,071

Texas (State of) Transportation Commission;

          

Series 2016 A, GO Bonds

     5.00%       04/01/2044        1,290      1,369,188

Series 2019, RB(j)

     0.00%       08/01/2040        1,500      606,330

Texas (State of) Transportation Commission (Central Texas Turnpike System);

          

Series 2015 B, Ref. RB(j)

     0.00%       08/15/2036        2,650      1,424,860

Series 2015 B, Ref. RB(j)

     0.00%       08/15/2037        955      484,605

Series 2015 C, Ref. RB

     5.00%       08/15/2042        2,980      3,046,505

Texas (State of) Water Development Board (State Water Implementation Fund); Series 2017 A, RB

     4.00%       10/15/2035        210      216,862

Texas Municipal Gas Acquisition & Supply Corp. I; Series 2008 D, RB

     6.25%       12/15/2026        3,445      3,660,737

Texas Private Activity Bond Surface Transportation Corp. (Blueridge Transportation Group, LLC SH 288 Toll Lanes); Series 2016, RB(h)

     5.00%       12/31/2055        870      878,620

Texas Private Activity Bond Surface Transportation Corp. (NTE Mobility Partners Segments 3 LLC Segments 3A and 3B Facility); Series 2013, RB(h)

     7.00%       12/31/2038        1,150      1,186,820

Texas Private Activity Bond Surface Transportation Corp. (NTE Mobility Partners Segments 3 LLC Segments 3C); Series 2019, RB(h)

     5.00%       06/30/2058        1,780      1,800,378

Travis County Cultural Education Facilities Finance Corp. (Wayside Schools); Series 2012 A, RB

     5.25%       08/15/2042        5      5,006
                               74,852,944

Utah–2.09%

          

Black Desert Public Infrastructure District; Series 2021 A, GO Bonds(g)

     4.00%       03/01/2051        500      383,075

Military Installation Development Authority; Series 2021 A-2, RB

     4.00%       06/01/2052        500      380,610

 

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

17                     Invesco Advantage Municipal Income Trust II


      Interest
Rate
      Maturity  
Date
       Principal  
Amount
(000)
     Value

Utah–(continued)

          

Salt Lake City (City of), UT;

          

Series 2018 A, RB(h)

     5.00%       07/01/2048      $      885      $        910,032

Series 2018 A, RB(h)

     5.25%       07/01/2048        1,185      1,233,585

Series 2021 A, RB(h)

     5.00%       07/01/2032        625      685,461

Series 2021 A, RB(h)

     5.00%       07/01/2051        955      990,625

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

     5.00%       07/01/2047        2,065      2,115,321

Utah (County of), UT; Series 2016 B, RB(b)

     4.00%       05/15/2047        1,515      1,436,750

Utah (State of) Charter School Finance Authority (Ogden Preparatory Academy); Series 2022 A, Ref. RB

     4.50%       10/15/2052        1,055      1,022,818
                               9,158,277

Virginia–1.94%

          

Roanoke (City of), VA Economic Development Authority (Carilion Clinic Obligated Group); Series 2020, Ref. RB

     5.00%       07/01/2047        935      1,024,766

Roanoke (City of), VA Economic Development Authority (Richfield Living); Series 2020, RB (Acquired 01/23/2020; Cost $245,000)(f)

     5.00%       09/01/2050        245      171,568

Virginia (Commonwealth of) Small Business Financing Authority (95 Express Lanes LLC); Series 2022, Ref. RB(h)

     5.00%       01/01/2037        2,560      2,696,663

Virginia (Commonwealth of) Small Business Financing Authority (I-495 Hot Lanes);

          

Series 2022, Ref. RB(h)

     5.00%       12/31/2052        990      1,022,769

Series 2022, Ref. RB(h)

     5.00%       12/31/2057        625      641,545

Virginia (Commonwealth of) Small Business Financing Authority (Transform 66 P3);

          

Series 2017, RB(h)

     5.00%       12/31/2049        610      621,740

Series 2017, RB(h)

     5.00%       12/31/2052        1,285      1,308,052

Virginia (Commonwealth of) Transportation Board; Series 2017, RB

     4.00%       05/15/2042        1,000      1,002,834
                               8,489,937

Washington–2.58%

          

Kalispel Tribe of Indians; Series 2018 B, RB(g)

     5.00%       01/01/2032        700      751,203

Tacoma (City of), WA; Series 2022, RB

     4.00%       12/01/2047        2,070      1,966,303

Washington (State of); Series 2019 A, GO Bonds(b)

     5.00%       08/01/2042        1,400      1,516,529

Washington (State of) Convention Center Public Facilities District;

          

Series 2018, RB

     5.00%       07/01/2043        875      910,476

Series 2018, RB(b)(i)

     5.00%       07/01/2048        3,130      3,239,662

Series 2018, RB

     5.00%       07/01/2048        625      637,209

Washington (State of) Housing Finance Commission (Bayview Manor Homes);

          

Series 2016 A, Ref. RB(g)

     5.00%       07/01/2046        325      301,101

Series 2016 A, Ref. RB(g)

     5.00%       07/01/2051        270      246,577

Washington (State of) Tobacco Settlement Authority; Series 2013, Ref. RB

     5.25%       06/01/2033        1,700      1,702,156
                               11,271,216

West Virginia–0.15%

          

Monongalia (County of), WV Commission Special District (University Town Centre Economic Opportunity Development District); Series 2020, Ref. RB(g)

     7.50%       06/01/2043        625      665,329

Wisconsin–5.09%

          

Wisconsin (State of) Center District;

          

Series 2020 D, RB (INS - AGM)(j)(k)

     0.00%       12/15/2055        4,730      987,108

Series 2020 D, RB (INS - AGM)(j)(k)

     0.00%       12/15/2060        18,280      2,958,975

Wisconsin (State of) Health & Educational Facilities Authority (Aspirus, Inc. Obligated Group);

          

Series 2021, RB

     3.00%       08/15/2051        625      447,925

Series 2021, RB

     4.00%       08/15/2051        2,085      1,912,082

Wisconsin (State of) Health & Educational Facilities Authority (Froedtert Health); Series 2022 A, Ref. RB

     4.00%       04/01/2042        1,875      1,748,503

Wisconsin (State of) Health & Educational Facilities Authority (Mercy Alliance); Series 2012, RB

     5.00%       06/01/2024        4,565      4,576,217

Wisconsin (State of) Public Finance Authority (American Dream at Meadowlands);

          

Series 2017, RB(e)(g)

     6.75%       08/01/2031        685      548,000

Series 2017, RB(g)

     6.75%       12/01/2042        1,595      1,421,198

Wisconsin (State of) Public Finance Authority (Explore Academy);

          

Series 2020 A, RB(g)

     6.13%       02/01/2050        310      286,831

Series 2022 A, RB(g)

     6.13%       02/01/2050        335      309,963

 

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

18                     Invesco Advantage Municipal Income Trust II


      Interest
Rate
      Maturity  
Date
       Principal  
Amount
(000)
     Value

Wisconsin–(continued)

          

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

     5.00%       03/01/2046      $   2,880      $     3,013,185

Wisconsin (State of) Public Finance Authority (Mallard Creek Stem Academy); Series 2019 A, RB(g)

     5.13%       06/15/2039        465      466,629

Wisconsin (State of) Public Finance Authority (Maryland Proton Treatment Center); Series 2018 A-1, RB(g)

     6.38%       01/01/2048        490      301,350

Wisconsin (State of) Public Finance Authority (Prime Healthcare Foundation, Inc.);

          

Series 2018 A, RB

     5.20%       12/01/2037        1,255      1,312,348

Series 2018 A, RB

     5.35%       12/01/2045        1,255      1,287,242

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

     5.75%       04/01/2035        670      694,292
                               22,271,848

Wyoming–0.42%

          

Wyoming (State of) Municipal Power Agency; Series 2017 A, Ref. RB(b)(c)(d)

     5.00%       01/01/2047        1,675      1,849,492

 

TOTAL INVESTMENTS IN SECURITIES(s) –173.79% (Cost $777,480,241)

                             760,472,981

 

FLOATING RATE NOTE OBLIGATIONS–(23.12)%

          

Notes with interest and fee rates ranging from 2.21% to 2.44% at 08/31/2022 and contractual maturities of collateral ranging from 09/01/2022 to 04/01/2056 (See Note 1J)(t)

           (101,175,000)

 

VARIABLE RATE MUNI TERM PREFERRED SHARES–(49.35)%

           (215,955,127)

 

OTHER ASSETS LESS LIABILITIES–(1.32)%

           (5,762,049)

 

NET ASSETS APPLICABLE TO COMMON SHARES–100.00%

           $ 437,580,805

 

Investment Abbreviations:

 

AGC   – Assured Guaranty Corp.
AGM   – Assured Guaranty Municipal Corp.
AMBAC   – American Municipal Bond Assurance Corp.
BAM   – Build America Mutual Assurance Co.
BHAC   – Berkshire Hathaway Assurance Corp.
CEP   – Credit Enhancement Provider
Ctfs.   – Certificates
GO   – General Obligation
IDR   – Industrial Development Revenue Bonds
INS   – Insurer
LOC   – Letter of Credit
NATL   – National Public Finance Guarantee Corp.
PCR   – Pollution Control Revenue Bonds
RAC   – Revenue Anticipation Certificates
RB   – Revenue Bonds
Ref.   – Refunding
RN   – Revenue Notes
SIFMA   – Securities Industry and Financial Markets Association
VRD   – Variable Rate Demand

 

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

19                     Invesco Advantage Municipal Income Trust II


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)

Advance refunded; secured by an escrow fund of U.S. Government obligations or other highly rated collateral.

(d)

Security has an irrevocable call by the issuer or mandatory put by the holder. Maturity date reflects such call or put.

(e)

Defaulted security. Currently, the issuer is in default with respect to principal and/or interest payments. The aggregate value of these securities at August 31, 2022 was $3,582,237, which represented less than 1% of the Trust’s Net Assets.

(f)

Restricted security. The aggregate value of these securities at August 31, 2022 was $6,094,462, which represented 1.39% of the Trust’s Net Assets.

(g) 

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 August 31, 2022 was $33,855,882, which represented 7.74% of the Trust’s Net Assets.

(h) 

Security subject to the alternative minimum tax.

(i)

Security is subject to a reimbursement agreement which may require the Trust to pay amounts to a counterparty in the event of a significant decline in the market value of the security underlying the TOB Trusts. In case of a shortfall, the maximum potential amount of payments the Trust could ultimately be required to make under the agreement is $31,820,000. However, such shortfall payment would be reduced by the proceeds from the sale of the security underlying the TOB Trusts.

(j) 

Zero coupon bond issued at a discount.

(k) 

Principal and/or interest payments are secured by the bond insurance company listed.

(l) 

Convertible capital appreciation bond. The interest rate shown represents the coupon rate at which the bond will accrue at a specified future date.

(m) 

Security valued using significant unobservable inputs (Level 3). See Note 3.

(n) 

The issuer is paying less than stated interest, but is not in default on principal because scheduled principal payments have not yet begun.

(o) 

Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on August 31, 2022.

(p) 

Demand security payable upon demand by the Trust at specified time intervals no greater than thirteen months. Interest rate is redetermined periodically by the issuer or agent based on current market conditions. Rate shown is the rate in effect on August 31, 2022.

(q) 

Principal and interest payments are fully enhanced by a letter of credit from the bank listed or a predecessor bank, branch or subsidiary.

(r) 

Security subject to crossover refunding.

(s) 

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 issuer’s obligations. No concentration of any single entity was greater than 5% each.

(t) 

Floating rate note obligations related to securities held. The interest and fee rates shown reflect the rates in effect at August 31, 2022. At August 31, 2022, the Trust’s investments with a value of $149,171,175 are held by TOB Trusts and serve as collateral for the $101,175,000 in the floating rate note obligations outstanding at that date.

Portfolio Composition

By credit sector, based on total investments

As of August 31, 2022

 

Revenue Bonds

     79.19%  

 

 

Pre-Refunded Bonds

     10.69     

 

 

General Obligation Bonds

     7.84     

 

 

Other

     2.28     

 

 

 

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

20                     Invesco Advantage Municipal Income Trust II


Statement of Assets and Liabilities

August 31, 2022

(Unaudited)

 

Assets:

  

Investments in unaffiliated securities, at value (Cost $777,480,241)

   $ 760,472,981  

 

 

Receivable for:

  

Investments sold

     439,953  

 

 

Interest

     7,947,445  

 

 

Investment for trustee deferred compensation and retirement plans

     33,085  

 

 

Total assets

     768,893,464  

 

 

Liabilities:

  

Floating rate note obligations

     101,175,000  

 

 

Variable rate muni term preferred shares ($0.01 par value, 2,160 shares issued with liquidation preference of $100,000 per share)

     215,955,127  

 

 

Payable for:

  

Investments purchased

     5,802,409  

 

 

Dividends

     33,037  

 

 

Amount due custodian

     7,630,163  

 

 

Accrued fees to affiliates

     46,483  

 

 

Accrued interest expense

     469,877  

 

 

Accrued trustees’ and officers’ fees and benefits

     1,461  

 

 

Accrued other operating expenses

     166,017  

 

 

Trustee deferred compensation and retirement plans

     33,085  

 

 

Total liabilities

     331,312,659  

 

 

Net assets applicable to common shares

   $ 437,580,805  

 

 

Net assets applicable to common shares consist of:

  

Shares of beneficial interest – common shares

   $ 499,676,076  

 

 

Distributable earnings (loss)

     (62,095,271

 

 
   $ 437,580,805  

 

 

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

 

Common shares outstanding

     44,406,020  

 

 

Net asset value per common share

   $ 9.85  

 

 

Market value per common share

   $ 9.17  

 

 
 

 

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

21                     Invesco Advantage Municipal Income Trust II


Statement of Operations

For the six months ended August 31, 2022

(Unaudited)

 

Investment income:

  

Interest

   $   16,046,533  

 

 

Expenses:

  

Advisory fees

     2,170,083  

 

 

Administrative services fees

     35,109  

 

 

Custodian fees

     2,950  

 

 

Interest, facilities and maintenance fees

     3,003,513  

 

 

Transfer agent fees

     17,769  

 

 

Trustees’ and officers’ fees and benefits

     9,290  

 

 

Registration and filing fees

     11,292  

 

 

Reports to shareholders

     14,594  

 

 

Professional services fees

     56,300  

 

 

Other

     16,888  

 

 

Total expenses

     5,337,788  

 

 

Net investment income

     10,708,745  

 

 

Realized and unrealized gain (loss) from:

  

Net realized gain (loss) from unaffiliated investment securities (includes net gains (losses) from securities sold to affiliates of $(413,692))

     (17,017,298

 

 

Change in net unrealized appreciation (depreciation) of unaffiliated investment securities

     (50,937,378

 

 

Net realized and unrealized gain (loss)

     (67,954,676

 

 

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

   $ (57,245,931

 

 

 

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

22                     Invesco Advantage Municipal Income Trust II


Statement of Changes in Net Assets

For the six months ended August 31, 2022 and the year ended February 28, 2022

(Unaudited)

 

     August 31,     February 28,  
     2022     2022  

 

 

Operations:

    

Net investment income

   $ 10,708,745     $ 23,982,056  

 

 

Net realized gain (loss)

     (17,017,298     515,103  

 

 

Change in net unrealized appreciation (depreciation)

     (50,937,378     (27,014,031

 

 

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

     (57,245,931     (2,516,872

 

 

Distributions to common shareholders from distributable earnings

     (11,940,800     (25,639,045

 

 

Net increase in common shares of beneficial interest

           175,996  

 

 

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

     (69,186,731     (27,979,921

 

 

Net assets applicable to common shares:

    

Beginning of period

     506,767,536       534,747,457  

 

 

End of period

   $ 437,580,805     $ 506,767,536  

 

 

 

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

23                     Invesco Advantage Municipal Income Trust II


Statement of Cash Flows

For the six months ended August 31, 2022

(Unaudited)

 

Cash provided by operating activities:

  

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

   $ (57,245,931

 

 

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

  

Purchases of investments

     (198,922,559

 

 

Proceeds from sales of investments

     218,447,963  

 

 

Purchases of short-term investments, net

     (8,995,410

 

 

Amortization of premium on investment securities

     2,506,957  

 

 

Accretion of discount on investment securities

     (1,156,799

 

 

Net realized loss from investment securities

     17,017,298  

 

 

Net change in unrealized depreciation on investment securities

     50,937,378  

 

 

Change in operating assets and liabilities:

  

 

 

Decrease in receivables and other assets

     441,825  

 

 

Increase in accrued expenses and other payables

     298,030  

 

 

Net cash provided by operating activities

     23,328,752  

 

 

Cash provided by (used in) financing activities:

  

Dividends paid to common shareholders from distributable earnings

     (11,963,102

 

 

Increase in payable for amount due custodian

     7,630,163  

 

 

Proceeds of TOB Trusts

     20,995,000  

 

 

Repayments of TOB Trusts

     (43,090,000

 

 

Net cash provided by (used in) financing activities

     (26,427,939

 

 

Net decrease in cash and cash equivalents

     (3,099,187

 

 

Cash and cash equivalents at beginning of period

     3,099,187  

 

 

Cash and cash equivalents at end of period

   $  

 

 

Supplemental disclosure of cash flow information:

  

 

 

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

   $ 2,716,973  

 

 

 

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

24                     Invesco Advantage Municipal Income Trust II


Financial Highlights

August 31, 2022

(Unaudited)

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

 

                                      
     Six Months Ended     Years Ended     Year Ended     Years Ended  
     August 31,    

February 28,

    February 29,    

February 28,

 
     2022     2022     2021     2020     2019     2018  

 

 

Net asset value per common share, beginning of period

     $      11.41       $      12.05       $      12.45       $      11.55       $      11.81       $      12.03  

 

 

Net investment income(a)

     0.24       0.54       0.58       0.51       0.55       0.66  

 

 

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

     (1.53     (0.60     (0.44     0.93       (0.20     (0.22

 

 

Total from investment operations

     (1.29     (0.06     0.14       1.44       0.35       0.44  

 

 

Less:

            

Dividends paid to common shareholders from net investment income

     (0.27     (0.58     (0.54     (0.52     (0.59     (0.66

 

 

Return of capital

                       (0.02     (0.02      

 

 

Total distributions

     (0.27     (0.58     (0.54     (0.54     (0.61     (0.66

 

 

Net asset value per common share, end of period

     $      9.85       $      11.41       $      12.05       $      12.45       $      11.55       $      11.81  

 

 

Market value per common share, end of period

     $      9.17       $      11.03       $    11.49       $      11.21       $      10.67       $      10.86  

 

 

Total return at net asset value(b)

     (11.24 )%      (0.66 )%      1.75     13.11     3.61     3.99

 

 

Total return at market value(c)

     (14.52 )%      0.72     7.75     10.24     4.08     1.72

 

 

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

     $437,581       $506,768       $534,747       $552,872       $512,613       $524,065  

 

 

Portfolio turnover rate(d)

     26     14     20     9     14     12

 

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

Ratio of expenses:

            

 

 

With fee waivers and/or expense reimbursements

     2.31 %(e)      1.60     1.84     2.57     2.58     2.25

 

 

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

     1.01 %(e)      0.93     0.97     1.01     1.01     1.05

 

 

Without fee waivers and/or expense reimbursements

     2.31 %(e)      1.60     1.84     2.57     2.58     2.25

 

 

Ratio of net investment income to average net assets

     4.63 %(e)      4.45     4.89     4.26     4.74     5.44

 

 

Senior securities:

            

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

     $216,000       $216,000       $216,000       $216,000       $216,000       $216,000  

 

 

Asset coverage per preferred share(f)

     $302,584       $334,615       $347,568       $355,959       $337,321       $342,623  

 

 

Liquidating preference per preferred share

     $100,000       $100,000       $100,000       $100,000       $100,000       $100,000  

 

 

 

(a)

Calculated using average shares outstanding.

(b)

Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. 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)

Annualized.

(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 the total number of preferred shares outstanding.

 

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

25                     Invesco Advantage Municipal Income Trust II


Notes to Financial Statements

August 31, 2022

(Unaudited)

NOTE 1–Significant Accounting Policies

Invesco Advantage Municipal Income Trust II (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 with a high level of current income exempt from federal income tax, consistent with preservation of capital.

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 generally are valued on the basis of prices provided by independent pricing services. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a 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, and their value may be adjusted accordingly. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

Securities for which market quotations are not readily available and not representative of market value in the Adviser’s judgment (“unreliable”) are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.

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 market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism, significant governmental actions or adverse investor sentiment generally 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.

The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.

B.

Securities Transactions and Investment Income – Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Pay-in-kind interest income and non-cash dividend income received in the form of securities in-lieu of cash are recorded at the fair value of the securities received. 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.

 

26                     Invesco Advantage Municipal Income Trust II


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, administrative expenses and other expenses associated with establishing and maintaining the line of credit and Variable Rate Muni Term Preferred Shares (“VMTP Shares”). In addition, interest and administrative expenses related to establishing and maintaining floating rate note obligations, if any, are included.

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 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 have 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.

 

27                     Invesco Advantage Municipal Income Trust II


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.

During the period, the Trust experienced a low interest rate environment created in part by the Federal Reserve Board (FRB) and certain foreign central banks keeping the federal funds and equivalent foreign rates near historical lows. Increases in the federal funds and equivalent foreign rates may expose fixed income markets to heightened volatility and reduced liquidity for certain fixed income investments, particularly those with longer maturities. In addition, decreases in fixed income dealer market-making capacity may also potentially lead to heightened volatility and reduced liquidity in the fixed income markets. As a result, the value of the Trust’s investments and share price may decline. Changes in central bank policies could also result in higher than normal shareholder redemptions, which could potentially increase portfolio turnover and the Trust’s transaction costs. Additionally, from time to time, uncertainty regarding the status of negotiations in the U.S. Government to increase the statutory debt limit, commonly called the “debt ceiling”, could increase the risk that the U.S. Government may default on payments on certain U.S. Government securities, cause the credit rating of the U.S. Government to be downgraded, increase volatility in the stock and bond markets, result in higher interest rates, reduce prices of U.S. Treasury securities, and/or increase the costs of various kinds of debt. If a U.S. Government-sponsored entity is negatively impacted by legislative or regulatory action, is unable to meet its obligations, or its creditworthiness declines, the performance of a Trust that holds securities of that entity will be adversely impacted.

L.

COVID-19 Risk The COVID-19 strain of coronavirus has resulted in instances of market closures and dislocations, extreme volatility, liquidity constraints and increased trading costs. Efforts to contain its spread have resulted in travel restrictions, disruptions of healthcare systems, business operations (including business closures) and supply chains, layoffs, lower consumer demand and employee availability, and defaults and credit downgrades, among other significant economic impacts that have disrupted global economic activity across many industries. Such economic impacts may exacerbate other pre-existing political, social and economic risks locally or globally and cause general concern and uncertainty. The full economic impact and ongoing effects of COVID-19 (or other future epidemics or pandemics) at the macro-level and on individual businesses are unpredictable and may result in significant and prolonged effects on the Trust’s performance.

NOTE 2–Advisory Fees and Other Fees Paid to Affiliates

The Trust has entered into a master investment advisory agreement with the Adviser. 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 daily 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 six months ended August 31, 2022, expenses incurred under this agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Trust. Pursuant to a custody agreement with the Trust, SSB also serves as the Trust’s custodian.

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 Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.

The following is a summary of the tiered valuation input levels, as of August 31, 2022. 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.

 

     Level 1      Level 2      Level 3      Total  

 

 

Investments in Securities

           

 

 

Municipal Obligations

     $–      $ 760,026,043      $ 446,938      $ 760,472,981  

 

 

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 six months ended August 31, 2022, the Trust engaged in securities purchases of $28,463,286 and securities sales of $13,287,873, which resulted in net realized gains (losses) of $(413,692).

 

28                     Invesco Advantage Municipal Income Trust II


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” includes amounts accrued by the Trust to fund such deferred compensation amounts.

NOTE 6–Cash Balances and Borrowings

The Trust is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the 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 six months ended August 31, 2022 were $108,732,857 and 1.89%, respectively.

NOTE 7–Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Trust’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Trust’s fiscal year-end.

Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Trust to utilize. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

The Trust had a capital loss carryforward as of February 28, 2022, as follows:

 

Capital Loss Carryforward*  

 

 
Expiration      Short-Term        Long-Term          Total  

 

 

Not subject to expiration

   $ 17,130,204      $ 9,148,822      $ 26,279,026  

 

 

 

*

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

NOTE 8–Investment Transactions

The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Trust during the six months ended August 31, 2022 was $199,110,338 and $216,240,097, 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

   $ 12,029,717  

 

 

Aggregate unrealized (depreciation) of investments

     (29,973,184

 

 

Net unrealized appreciation (depreciation) of investments

   $ (17,943,467

 

 

Cost of investments for tax purposes is $778,416,448.

NOTE 9–Common Shares of Beneficial Interest

Transactions in common shares of beneficial interest were as follows:

 

     Six Months Ended      Year Ended  
     August 31,      February 28,  
     2022      2022  

 

 

Beginning shares

     44,406,020        44,391,551  

 

 

Shares issued through dividend reinvestment

            14,469  

 

 

Ending shares

     44,406,020        44,406,020  

 

 

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 10–Variable Rate Muni Term Preferred Shares

The Trust issued Series 2015/6-VKI VMTP Shares, with a liquidation preference of $100,000 per share, pursuant to an offering exempt from registration under the 1933 Act. As of August 31, 2022, the VMTP Shares outstanding were as follows:

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 December 2, 2024, 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 incurs costs in connection with the issuance and/or the extension of the VMTP Shares. These costs are recorded as a deferred charge and are amortized over the term 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. The initial rate for dividends was equal to the sum of 1.10% per annum plus the Securities Industry and Financial Markets Association Municipal Swap Index (the “SIFMA” Index). As of August 31, 2022, the dividend rate is equal to the SIFMA Index plus a spread of 0.95%, which is based on the long term preferred share ratings assigned to the VMTP

 

29                     Invesco Advantage Municipal Income Trust II


Shares by a ratings agency. The average aggregate liquidation preference outstanding and the average annualized dividend rate of the VMTP Shares during the six months ended August 31, 2022 were $216,000,000 and 1.78%, 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 11–Dividends

The Trust declared the following dividends to common shareholders from net investment income subsequent to August 31, 2022:

 

Declaration Date    Amount per Share    Record Date      Payable Date  

 

 

September 1, 2022

   $0.0418      September 15, 2022        September 30, 2022  

 

 

October 3, 2022

   $0.0418      October 17, 2022        October 31, 2022  

 

 

 

30                     Invesco Advantage Municipal Income Trust II


Approval of Investment Advisory and Sub-Advisory Contracts

 

At meetings held on June 13, 2022, the Board of Trustees (the Board or the Trustees) of Invesco Advantage Municipal Income Trust II (the Fund) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Fund’s Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco 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 and the sub-advisory contracts) for another year, effective July 1, 2022. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable thereunder by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.

The Board’s Evaluation Process

The Board has established an Investments Committee, which in turn has established Sub-Committees that meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). The Sub-Committees meet regularly with portfolio managers for their assigned Invesco Funds and other members of management to review detailed information about investment performance and portfolio attributes of these funds. The Board has established additional standing and ad hoc committees that meet regularly throughout the year to review matters within their purview. The Board took into account evaluations and reports that it received from its committees and sub-committees, as well as the information provided to the Board and its committees and sub-committees throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.

As part of the contract renewal process, the Board reviews and considers information provided in response to detailed requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees and the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. The Board receives comparative investment performance and fee and expense data regarding the Invesco Funds prepared by Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider, as well as information on the composition of the peer groups provided by Broadridge and its methodology for determining peer groups. The Board also receives an independent written evaluation from the Senior Officer. The Senior Officer’s evaluation is prepared as part of his responsibility to manage the process by which the Invesco Funds’ proposed management fees are negotiated during the annual contract renewal process to ensure they are negotiated in a manner that is at arms’ length and reasonable in accordance with certain negotiated regulatory requirements. In addition to meetings with Invesco Advisers and fund

counsel throughout the year and as part of meetings convened on May 2, 2022 and June 13, 2022, the independent Trustees also discussed the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel.

The discussion below is a summary of the Senior Officer’s independent written evaluation with respect to the Fund’s investment advisory agreement and sub-advisory contracts, as well as a discussion of the material factors and related conclusions that formed the basis for the Board’s approval of the Fund’s investment advisory agreement and sub-advisory contracts. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. The information received and considered by the Board was current as of various dates prior to the Board’s approval on June 13, 2022.

Factors and Conclusions and Summary of Independent Written Fee Evaluation

A.

Nature, Extent and Quality of Services Provided by Invesco Advisers and the Affiliated Sub-Advisers

The Board reviewed the nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process and oversight, credit analysis, and research capabilities. The Board considered information regarding Invesco Advisers’ programs for and resources devoted to risk management, including management of investment, enterprise, operational, liquidity, valuation and compliance risks, and technology used to manage such risks. The Board considered the additional services provided to the Fund due to the fact that the Fund is a closed-end fund, including, but not limited to, leverage management and monitoring, evaluating, and, where appropriate, making recommendations with respect to the Fund’s trading discount, share repurchase program, and distribution rates, as well as shareholder relations activities. The Board received a description of, and reports related to, Invesco Advisers’ global security program and business continuity plans and of its approach to data privacy and cybersecurity, including related testing. The Board considered how the cybersecurity and business continuity plans of Invesco Advisers and its key service providers operated in the remote and hybrid working environment resulting from the novel coronavirus (“COVID-19”) pandemic and paved the way for a hybrid working framework in a normalized environment as employees return to the office. The Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds, such as various back office support functions, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board observed that Invesco Advisers’ systems

preparedness and ongoing investment enabled Invesco Advisers to manage, operate and oversee the Invesco Funds with minimal impact or disruption through challenging environments. The Board reviewed and considered the benefits to shareholders of investing in a Fund that is part of the family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in running an investment management business, as well as its commitment of financial and other resources to such business. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory.

The Board reviewed the services that may be provided by the Affiliated Sub-Advisers under the sub-advisory contracts and the credentials and experience of the officers and employees of the Affiliated Sub-Advisers who provide these services. The Board noted the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries in which the Fund may invest, make recommendations regarding securities and assist with security trades. The Board concluded that the sub-advisory contracts may benefit the Fund and its shareholders by permitting Invesco Advisers to use the resources and talents of the Affiliated Sub-Advisers in managing the Fund. The Board concluded that the nature, extent and quality of the services that may be provided to the Fund by the Affiliated Sub-Advisers are appropriate and satisfactory.

B.

Fund Investment Performance

The Board considered Fund investment performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view Fund investment performance as a relevant factor in considering whether to approve the sub-advisory contracts for the Fund, as no Affiliated Sub-Adviser currently manages assets of the Fund.

The Board compared the Fund’s investment performance over multiple time periods ending December 31, 2021 to the performance of funds in the Broadridge performance universe and against the S&P Municipal Bond 5+ Year Investment Grade Index (Index). The Board noted that the Fund’s performance was in the third quintile of its performance universe for the one year period and the fourth quintile for the three and five year periods (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that the Fund’s performance was above the performance of the Index for the one, three and five year periods. The Board noted that the Fund’s lower exposure to credit and shorter duration positioning had detracted from Fund performance relative to peers. The Board recognized that the performance data reflects a snapshot in time as of a particular date and that selecting a different performance period could produce different results. The Board also reviewed more recent Fund performance as well as other performance metrics, which did not change its conclusions. The Board also reviewed supplementally

 

 

31                     Invesco Advantage Municipal Income Trust II


historic premium and discount levels of the Fund as provided to the Board at meetings throughout the year.

C.

Advisory and Sub-Advisory Fees and Fund Expenses

The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted that the contractual management fee rate for shares of the Fund was the same as the median contractual management fee rate of funds in its expense group. The Board noted that the term “contractual management fee” for funds in the expense group may include both advisory and certain non-portfolio management administrative services fees, but that Broadridge is not able to provide information on a fund by fund basis as to what is included. The Board also reviewed the methodology used by Broadridge in calculating expense group information, which includes using each fund’s contractual management fee schedule (including any applicable breakpoints) as reported in the most recent audited annual reports for each fund in the expense group. The Board also considered comparative information regarding the Fund’s total expense ratio and its various components. The Board noted that the Fund’s total expenses were in the fifth quintile of its expense group and discussed with management reasons for such relative total expenses, including the effect that the Fund’s investment related expenses had on its relative rankings.

The Board noted that Invesco Advisers and the Affiliated Sub-Advisers do not manage other similarly managed mutual funds or client accounts. The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts.

D.

Economies of Scale and Breakpoints

The Board noted that most closed-end funds do not have fund level breakpoints because closed-end funds generally do not experience substantial asset growth after the initial public offering. The Board noted that the Fund does not benefit from economies of scale through contractual breakpoints, but does share in economies of scale through Invesco Advisers’ ability to negotiate lower fee arrangements with third party service providers. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements, as well as Invesco Advisers’ investment in its business, including investments in business infrastructure, technology and cybersecurity.

E.

Profitability and Financial Resources

The Board reviewed information from Invesco Advisers concerning the costs of the advisory and other services that Invesco Advisers and its affiliates provide to the Fund and the Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services in the aggregate and on an individual Fund-by-Fund basis. The Board considered the methodology used for calculating profitability the periodic review and enhancement of such methodology. The Board noted that Invesco Advisers continues to operate at a net profit from services Invesco Advisers and its affiliates provide to the Invesco Funds in the aggregate and to most Funds individually. The Board did not deem the level of profits realized by Invesco Advisers and its affiliates

from providing such services to be excessive, given the nature, extent and quality of the services provided. The Board noted that Invesco Advisers provided information demonstrating that Invesco Advisers is financially sound and has the resources necessary to perform its obligations under the investment advisory agreement, and provided representations indicating that the Affiliated Sub-Advisers are financially sound and have the resources necessary to perform their obligations under the sub-advisory contracts.

F.

Collateral Benefits to Invesco Advisers and its Affiliates

The Board considered various other benefits received by Invesco Advisers and its affiliates from the relationship with the Fund. The Board considered the organizational structure employed to provide these services.

The Board considered that the Fund’s uninvested cash may be invested in registered money market funds advised by Invesco Advisers. The Board considered information regarding the returns of the affiliated money market funds relative to comparable overnight investments, as well as the fees paid by the affiliated money market funds to Invesco Advisers and its affiliates. In this regard, the Board noted that Invesco Advisers receives advisory fees from these affiliated money market funds attributable to the Fund’s investments. The Board also noted that Invesco Advisers has contractually agreed to waive through varying periods an amount equal to 100% of the net advisory fee Invesco Advisers receives from the affiliated money market funds with respect to the Fund’s investment in the affiliated money market funds of uninvested cash.

 

 

32                     Invesco Advantage Municipal Income Trust II


 

Proxy Results

A Joint Annual Meeting (“Meeting”) of Shareholders of Invesco Advantage Municipal Income Trust II (the “Fund”) was held on August 8, 2022. The Meeting was held for the following purpose:

(1). Election of Trustees by Common Shareholders and Preferred Shareholders voting together as a single class.

(2). Election of Trustees by Preferred Shareholders voting as a separate class.

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

 

     Matter    Votes For     

Votes

Withheld

 

 

 

(1).

   Cynthia Hostetler      35,533,456.75        768,912.93  
   Eli Jones      35,247,711.75        1,054,657.93  
   Ann Barnett Stern      35,504,564.75        797,804.93  
   Daniel S. Vandivort      35,296,117.75        1,006,251.93  

(2).

   Prema Mathai-Davis      1,160.00        0.00  

 

33                     Invesco Advantage Municipal Income Trust II


 

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Correspondence information

Send general correspondence to Computershare Trust Company, N.A., P.O. Box 505000, Louisville, KY 40233-5000.

 

 

Trust holdings and proxy voting information

The Trust provides a complete list of its portfolio holdings four times each fiscal year, at the end of each fiscal quarter. For the second and fourth quarters, the list appears, respectively, in the Trust’s semiannual and annual reports to shareholders. For the first and third quarters, the Trust files the list with the Securities and Exchange Commission (SEC) as an exhibit to its reports on Form N-PORT. The most recent list of portfolio holdings is available at invesco.com/us. Shareholders can also look up the Trust’s Form N-PORT filings on the SEC website at sec.gov. The SEC file number for the Trust is shown below.

A description of the policies and procedures that the Trust uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 341 2929 or at invesco.com/ corporate/about-us/esg. The information is also available on the SEC website, sec.gov.

Information regarding how the Trust voted proxies related to its portfolio securities during the most recent 12-month period ended June 30 is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

 

 

 

LOGO

 

SEC file number(s): 811-07868    VK-CE-AMINC2-SAR-1                                                     


ITEM 2.

CODE OF ETHICS.

Not applicable for a semi-annual report.

 

ITEM 3.

AUDIT COMMITTEE FINANCIAL EXPERT.

Not applicable.

 

ITEM 4.

PRINCIPAL ACCOUNTANT FEES AND SERVICES.

Not applicable.

 

ITEM 5.

AUDIT COMMITTEE OF LISTED REGISTRANTS.

Not applicable.

 

ITEM 6.

SCHEDULE OF INVESTMENTS.

Investments in securities of unaffiliated issuers is included as part of the reports to stockholders filed under Item 1 of this Form.

 

ITEM 7.

DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

 

ITEM 8.

PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT COMPANIES.

Not applicable.

 

ITEM 9.

PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.

Not applicable.


ITEM 10.

SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

None.

 

ITEM 11.

CONTROLS AND PROCEDURES.

 

  (a)

As of October 18, 2022, an evaluation was performed under the supervision and with the participation of the officers of the Registrant, including the Principal Executive Officer (“PEO”) and Principal Financial Officer (“PFO”), to assess the effectiveness of the Registrant’s disclosure controls and procedures, as that term is defined in Rule 30a-3(c) under the Investment Company Act of 1940 (“Act”), as amended. Based on that evaluation, the Registrant’s officers, including the PEO and PFO, concluded that, as of October 18, 2022, the Registrant’s disclosure controls and procedures were reasonably designed so as to ensure: (1) that information required to be disclosed by the Registrant on Form N-CSR is recorded, processed, summarized and reported within the time periods specified by the rules and forms of the Securities and Exchange Commission; and (2) that material information relating to the Registrant is made known to the PEO and PFO as appropriate to allow timely decisions regarding required disclosure.

 

  (b)

There have been no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

 

ITEM 12.

DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

 

ITEM 13.

EXHIBITS.

 

13(a) (1)

   Not applicable.

13(a) (2)

   Certifications of principal executive officer and principal financial officer as required by Rule 30a-2(a) under the Investment Company Act of 1940 and Section 302 of the Sarbanes-Oxley Act of 2002.

13(a) (3)

   Not applicable.

13(a) (4)

   Not applicable.

13(b)

   Certifications of principal executive officer and principal financial officer as required by Rule 30a-2(b) under the Investment Company Act of 1940 and Section 906 of the Sarbanes-Oxley Act of 2002.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Registrant: Invesco Advantage Municipal Income Trust II

 

By:  

/s/ Sheri Morris

  Sheri Morris
  Principal Executive Officer
Date:   November 4, 2022

Pursuant to the requirements of the Securities and Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

 

By:  

/s/ Sheri Morris

  Sheri Morris
  Principal Executive Officer
Date:   November 4, 2022

 

By:  

/s/ Adrien Deberghes

  Adrien Deberghes
  Principal Financial Officer
Date:   November 4, 2022
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