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Asset Class Opportunities

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About risk

Prices of equity securities change in response to many factors, including the historical and prospective earnings of the issuer, the value of its assets, general economic conditions, interest rates, investor perceptions and market liquidity.

Fixed income products are subject to risk, including credit risk of the issuer and the effects of changing interest rates. Market prices of fixed income securities with intermediate lives generally fluctuate more in response to changes in interest rates than do market prices of municipal securities with shorter lives, but generally fluctuate less than market prices of municipal securities with longer lives.

High-yield (junk) bonds involve a greater risk of default or price changes due to changes in the credit quality of the issuer.

Investments in convertible securities are subject to the risks associated with both fixed income securities, including credit risk and interest rate risk, and common stocks. Convertible securities may have lower yields because they offer the opportunity to be converted into stocks and if the stock is underperforming and the bond does not convert, then the bond may have a lower return than a non-convertible bond.

Preferred stock generally has a preference as to dividends and liquidation over an issuer’s common stock but ranks junior to debt securities in an issuer’s capital structure. Unlike interest payments on debt securities, preferred stock dividends are payable only if declared by the issuer’s board of directors. Preferred stock also may be subject to optional or mandatory redemption provisions.

Most senior loans are made to corporations with below investment-grade credit ratings and are subject to significant credit, valuation and liquidity risk. The value of the collateral securing a loan may not be sufficient to cover the amount owed, may be found invalid or may be used to pay other outstanding obligations of the borrower under applicable law. There is also the risk that the collateral may be difficult to liquidate, or that a majority of the collateral may be illiquid.

Municipal securities are subject to the risk that litigation, legislation, or other political events, local business or economic conditions or the bankruptcy of the issuer could have a significant effect on an issuer’s ability to make payments of principal and/or interest.

Commodities may subject an investor to greater volatility than traditional securities such as stocks and bonds.

The risks of investing in securities of foreign issuers located in developing or emerging countries may be more negatively affected by fluctuations in foreign currencies, political and economic instability, and foreign taxation issues than in more developed countries.

There is no assurance that a closed-end fund will achieve its investment objective. Like any stock, a closed-end fund’s share price will fluctuate with market conditions and other factors. At the time of sale, your shares may have a market price that is above or below net asset value, and may be worth more or less than your original investment. Accordingly, it is possible to lose money investing in a closed-end fund.

Investments in real estate related instruments may be affected by economic, legal, or environmental factors that affect property values, rents or occupancies of real estate. Real estate companies, including REITs or similar structures, tend to be small and mid-cap companies and their shares may be more volatile and less liquid.

Index Definitions

Barclays Global Aggregate ex-U.S. Bond Index is an unmanaged index considered representative of bonds of foreign countries.

Barclays High Yield Index is an unmanaged index that covers the US dollar-denominated, non-investment grade, fixed-rate, taxable corporate bond market.

Barclays High Yield Municipal Index is generally representative of bonds that are noninvestment grade, unrated or rated below Ba1.

Barclays Treasury Index is an unmanaged index of public obligations of the US Treasury with a remaining maturity of one year or more.

Barclays U.S. Aggregate Bond Index is an unmanaged index considered representative of the US investment-grade, fixed-rate bond market.

Barclays U.S. Government Bond Index is a market value weighted index of US Government and government agency securities (other than mortgage securities) with maturities of one year or more.

Barclays U.S. TIPS Index is an unmanaged index that measures the performance of the US Treasury Inflation Protected Securities ("TIPS") market.

BofA Merrill Lynch Core Fixed Rate Preferred Securities Index is designed to replicate the total return of a diversified group of investment-grade preferred securities.

BofA Merrill Lynch Corporate Master Index includes publicly-issued, fixed-rate, nonconvertible investment grade dollar-denominated, SEC-registered corporate debt having at least one year to maturity and an outstanding par value of at least $250 million.

BofA Merrill Lynch High Yield Master II Index tracks the performance of below investment grade US dollar-denominated corporate bonds publicly traded in the US domestic market.

BofA Merrill Lynch Municipal 3–7 Years Index consists of bonds with an outstanding par greater than or equal to $25 million and a maturity range between three and seven years.

BofA Merrill Lynch Municipal Master Index is a broad-based measure of the performance of the US tax-exempt bond market.

Consumer Price Index is a measure of change in consumer prices as determined by the US Bureau of Labor Statistics.

Dow Jones-UBS Commodity Index is a broadly diversified index that allows investors to track commodity futures through a single, simple measure.

FTSE EPRA/NAREIT Developed ex-U.S. Index is designed to track the performance of listed real estate companies and REITS.

FTSE NAREIT All Equity REITs Index is an unmanaged index considered representative of US REITs.

Ibbotson Long-Term Government Bonds Index is measured using a one-bond portfolio with a maturity near 20 years.

Ibbotson U.S. 30-Day T-Bill Index is an unweighted index which measures the performance of one-month maturity U.S. Treasury Bills. Each month a one-bill portfolio containing the shortest-term bill having not less than one month to maturity is constructed. To measure holding period returns for the one-bill portfolio, the bill is priced as of the last trading day of the previous month-end and as of the last trading day of the current month.

Ibbotson U.S. Long-Term Corporate Bond Index is a market value-weighted index which measures the performance of long-term U.S. corporate bonds.

JP Morgan EMBI Global Composite Index is an unmanaged index that tracks debt securities of emerging markets.

JP Morgan GBI-Emerging Markets Global Diversified Index is a comprehensive global local emerging markets index, and consists of liquid, fixed-rate, domestic currency government bonds.

MSCI EAFE Index is an unmanaged index considered representative of stocks of Europe, Australasia and the Far East.

MSCI Emerging Markets Index is an unmanaged index considered representative of stocks of developing countries.

MSCI World Index is an unmanaged index considered representative of stocks of developed countries. NCREIF Property Index is a quarterly time series composite total rate of return measure of investment performance of a very large pool of individual commercial real estate properties acquired in the private market for investment purposes only. All properties in the NPI have been acquired, at least in part, on behalf of tax-exempt institutional investors - the great majority being pension funds. As such, all properties are held in a fiduciary environment. Russell 1000 Growth Index is an unmanaged index considered representative of large-cap growth stocks.

Russell 1000 Index is an unmanaged index considered representative of large-cap stocks.

Russell 1000 Value Index is an unmanaged index considered representative of large-cap value stocks.

Russell 2000 Index is an unmanaged index considered representative of small-cap stocks.

Russell Midcap Index is an unmanaged index considered representative of mid-cap stocks.

Ryan Labs 30-year US Treasury Current Coupon Index is a one-security index in which the current "on-the-run" issue for the stated maturity remains in the index until the date a new one is auctioned and settles.

S&P 100 Index is a sub-set of the S&P 500® and measures the performance of large cap companies in the United States. The index is comprised of 100 major, blue chip companies across multiple industry groups.

S&P 500 Index is an unmanaged index considered representative of the US stock market.

S&P 500 Equal Weight Index is the equal-weight version of the widely regarded S&P 500. The index has the same constituents as the capitalization weighted S&P 500, but each company in the S&P 500 EWI is allocated a fixed weight.

S&P GSCI Index is an unmanaged world production-weighted index composed of the principal physical commodities that are the subject of active, liquid futures markets.

S&P/LSTA Leveraged Loan Index is a weekly total return index that tracks the current outstanding balance and spread over Libor for fully funded term loans.

S&P 500 VIX Short-Term Futures Index measures the return from a daily rolling long position in the VIX futures contracts traded on the CBOE. The short-term index is comprised of the first and second contract months.

The Russell Indices are trademarks/service marks of the Frank Russell Co. Russell® is a trademark of the Frank Russell Co.

Unmanaged index returns do not reflect fees, expenses, or sales charges. An investment cannot be made directly in an index.

Other Definitions

Correlation indicates the degree to which two investments have historically moved in the same direction and magnitude. A greater positive correlation (+1.00 maximum) means the two investments have behaved more similarly; a greater negative correlation (1.00 maximum) means the two have performed less similarly.

Earnings per share (EPS) Growth is the portion of a company’s profit allocated to each outstanding share of common stock. Earnings per share serves as an indicator of a company’s profitability.

Price/Earnings Ratio is a valuation ratio of a company's current share price compared to its per-share earnings.

Net Margin is the ratio of net profits to revenues for a company or business segment - typically expressed as a percentage – that shows how much of each dollar earned by the company is translated into profits.

Return on Equity is the amount of net income returned as a percentage of shareholders equity. Return on equity measures a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested.

Modified Macaulay Duration is the weighted average term to maturity of the cash flows from a bond. The weight of each cash flow is determined by dividing the present value of the cash flow by the price, and is a measure of bond price volatility with respect to interest rates.

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Before investing, investors should carefully read the prospectus and/or summary prospectus and carefully consider the investment objectives, risks, charges and expenses. For this and more complete information about the fund(s), investors should ask their advisers for a prospectus/summary prospectus.

All data provided by Invesco unless otherwise noted.

Invesco Distributors, Inc. is the US distributor for Invesco Ltd.'s retail products. It is a wholly owned, indirect subsidiary of Invesco Ltd.

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