Mutual Funds

Invesco Real Estate Fund

Alternatives | Real Estate

Objective & Strategy

The fund seeks total return through growth of capital and current income by investing primarily in domestic real estate securities.

Building Diversification

An active, total return strategy focused on US real estate investment trusts (REITs) whose values are driven by real commercial property assets.

Management expertise   Competitive returns   Diversification potential
Established in 1983, Invesco Real Estate manages $61.8 billion in direct and publicly traded real estate securities.

The Securities Investment team, a subset of Invesco Real Estate, manages $26.9 billion with six portfolio managers and 16 analysts, averaging 21 years and 12 years experience, respectively.
  US REITs have historically provided strong long-term total returns when compared with the broad stock market.1

REITs have also been a source of income because they are legally required to distribute at least 90% of taxable income to shareholders annually to maintain tax exempt status at the corporate level.
  Our diversified approach to investing encompasses a range of domestic commercial property sectors and regions.

Real estate enhances potential portfolio diversification due to low-to-moderate correlations to other equity and fixedincome investments.2


Footnote(s)

1 Domestic REITs as measured by the FTSE NAREIT All Equity REITs Index, and the broad market as measured by the S&P 500 Index.
2 Source: StyleADVISOR. Correlation of FTSE NAREIT All Equity REITs Index from Jan. 31, 1990 to Sept. 30, 2014, compared to S&P 500 Index (0.56), MSCI World Index (0.55), Russell 2000 Index (0.64), Barclays U.S. Aggregate Bond Index (0.17), Barclays Global Aggregate Bond Index (0.27). Correlation indicates the degree to which two investments have historically moved in the same direction and magnitude. A correlation of 0.5 or less is considered low.
A correlation of 0.5 to 0.7 is considered moderate.

Style Map

Invesco Real Estate Fund

The map illustrates areas in which the fund can invest, not necessarily within a limited period of time. This fund is not classified with regard to one primary market capitalization.

as of 06/30/2015

Morningstar Rating

Overall Rating - Real Estate Category

As of 06/30/2015 the Fund had an overall rating of 3 stars out of 232 funds and was rated 1 stars out of 232 funds, 1 stars out of 199 funds and 4 stars out of 151 funds for the 3-, 5- and 10- year periods, respectively.

Morningstar details

Source: Morningstar Inc. Ratings are based on a risk-adjusted return measure that accounts for variation in a fund's monthly performance (including the effect of sales charges, loads and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The overall rating is derived from a weighted average of three-, five- and 10-year rating metrics, as applicable. ©2015 Morningstar Inc. All rights reserved. The information contained herein is proprietary to Morningstar and/or its content providers. It may not be copied or distributed and is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance does not guarantee future results. A fund is eligible for a Morningstar Rating three years after inception. The top 10% of funds in a category receive five stars, the next 22.5% four stars, the next 35% three stars, the next 22.5% two stars and the bottom 10% one star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) Ratings for other share classes may differ due to different performance characteristics.

Management team

as of 06/30/2015

Top Equity Holdings | View all

% of Total Assets
SIMON PROPERTY GROUP INC 9.23
AVALONBAY COMMUNITIES INC 6.92
AMERICAN TOWER CORP CL A 5.72
PROLOGIS INC 4.92
FEDERAL RLTY INVS TRUST 4.67
BOSTON PROPERTIES INC 4.25
VENTAS INC 3.95
WEYERHAEUSER CO 3.55
CROWN CASTLE INTERNATIONAL CORP 3.45
ESSEX PROPERTY TRUST INC 3.09

Holdings are subject to change and are not buy/sell recommendations.

as of 06/30/2015 06/30/2015

Average Annual Returns (%)

  Incept.
Date
Max
Load (%)
Since
Incept. (%)
YTD (%) 1Y (%) 3Y (%) 5Y (%) 10Y (%)
NAV 12/31/1996 N/A 9.58 -6.19 3.42 7.97 12.93 6.92
Load 12/31/1996 5.50 9.25 -11.35 -2.27 5.94 11.66 6.31
Performance quoted is past performance and cannot guarantee comparable future results; current performance may be lower or higher. Investment return and principal value will vary so that you may have a gain or a loss when you sell shares.

Performance shown at NAV does not include applicable front-end or CDSC sales charges, which would have reduced the performance.

Performance figures reflect reinvested distributions and changes in net asset value (NAV) and the effect of the maximum sales charge unless otherwise stated.

Had fees not been waived and/or expenses reimbursed currently or in the past, returns would have been lower.

as of 06/30/2015 06/30/2015

Annualized Benchmark Returns


Index Name 1 Mo (%) 3 Mo (%) 1Y (%) 3Y (%) 5Y (%) 10Y (%)
FTSE NAREIT All Equity REITs Index -4.12 -9.06 4.14 9.06 14.36 7.05
S&P 500 Reinvested IX -1.94 0.28 7.42 17.31 17.34 7.89
FTSE NAREIT All Equity REITs Index -4.12 -9.06 4.14 9.06 14.36 7.05
S&P 500 Reinvested IX -1.94 0.28 7.42 17.31 17.34 7.89

Source: FactSet Research Systems Inc.

Source: FactSet Research Systems Inc.

An investment cannot be made directly in an index.

Expense Ratio per Prospectus

Management Fee 0.73
12b-1 Fee 0.25
Other Expenses 0.26
Interest/Dividend Exp 0.00
Total Other Expenses 0.26
Acquired Fund Fees and Expenses (Underlying Fund Fees & Expenses) 0.00
Total Annual Fund Operating Expenses 1.24
Contractual Waivers/Reimbursements N/A
Net Expenses - PER PROSPECTUS 1.24
Additional Waivers/Reimbursements 0.00
Net Expenses - With Additional Fee Reduction 1.24
This information is updated per the most recent prospectus.

Historical Prices

From   to
No history records found for this date range

Distributions

From   to
    Capital Gains Reinvestment
Price ($)
Ex-Date Income Short Term Long Term
06/18/2015 0.0595 N/A N/A 25.86
03/19/2015 0.0499 N/A N/A 27.37
12/12/2014 0.0289 0.0264 1.0400 26.04
09/18/2014 0.0506 N/A N/A 24.81
06/19/2014 0.0560 N/A N/A 24.96
03/20/2014 0.0703 N/A N/A 23.01
12/13/2013 0.0703 0.0497 2.8015 21.26
09/19/2013 0.0679 N/A N/A 25.65
06/20/2013 0.0579 N/A N/A 24.10
03/21/2013 0.0749 N/A N/A 25.43
12/07/2012 0.0249 N/A 2.1073 23.89
09/20/2012 0.0249 N/A N/A 26.39
06/14/2012 0.0249 N/A N/A 24.93
03/15/2012 0.0249 N/A N/A 24.69
12/09/2011 0.0249 N/A N/A 21.99
09/15/2011 0.0417 N/A N/A 21.88
06/16/2011 0.0443 N/A N/A 22.61
03/17/2011 0.0673 N/A N/A 21.77
12/03/2010 0.0784 N/A N/A 21.09
09/16/2010 0.0766 N/A N/A 20.47
06/17/2010 0.0781 N/A N/A 19.77
03/18/2010 0.1100 N/A N/A 19.15
12/11/2009 0.1102 N/A N/A 17.24
09/18/2009 0.0691 N/A N/A 17.13
06/19/2009 0.0896 N/A N/A 12.48
03/20/2009 0.1114 N/A N/A 9.38
12/12/2008 0.1033 N/A 0.0913 12.86
09/18/2008 0.1214 N/A N/A 23.23
06/18/2008 0.1211 N/A N/A 23.03
03/18/2008 0.0617 N/A N/A 22.74
12/14/2007 0.1800 0.8416 4.4353 22.956
09/20/2007 0.2108 N/A N/A 31.896
06/20/2007 0.0966 N/A N/A 31.926
03/20/2007 0.0982 N/A N/A 34.98
12/15/2006 0.2181 0.4178 3.3791 33.541
09/20/2006 0.0862 N/A N/A 34.406
06/20/2006 0.1037 N/A N/A 30.517
03/20/2006 0.0565 0.0475 N/A 31.745
12/16/2005 0.1113 0.2811 0.9815 27.937
09/19/2005 0.1466 N/A N/A 27.998
06/20/2005 0.1326 N/A N/A 27.32
03/18/2005 0.1076 N/A N/A 24.477
12/17/2004 0.0865 0.1129 0.5428 25.564
09/20/2004 0.0814 N/A N/A 22.634
06/18/2004 0.1131 N/A 0.0044 20.797
03/19/2004 0.1030 N/A N/A 21.836
12/12/2003 0.1350 N/A N/A 19.62
10/29/2003 0.0362 N/A N/A 18.552
09/19/2003 0.1075 N/A N/A 17.917
06/20/2003 0.1050 N/A N/A 16.364
03/20/2003 0.1025 N/A N/A 15.128
12/13/2002 0.1200 N/A N/A 14.539
09/20/2002 0.1125 N/A N/A 14.817
06/20/2002 0.1125 N/A N/A 15.478
03/20/2002 0.1100 N/A N/A 14.87
12/14/2001 0.1200 N/A N/A 13.758
09/20/2001 0.1125 N/A N/A 13.085
06/20/2001 0.1025 N/A N/A 13.575
03/20/2001 0.1000 N/A N/A 12.601
12/15/2000 0.1650 N/A N/A 12.849
09/20/2000 0.1500 N/A N/A 12.642
06/20/2000 0.1720 N/A N/A 12.159
03/20/2000 0.0825 N/A N/A 10.66
12/17/1999 0.1040 N/A N/A 10.05
09/20/1999 0.1100 N/A N/A 10.86
06/18/1999 0.1500 N/A N/A 11.85
03/19/1999 0.1575 N/A N/A 10.51
12/18/1998 0.1470 0.0850 0.1615 11.16
09/15/1998 0.1450 0.0000 0.0000 11.19
06/15/1998 0.1120 0.0000 0.0000 14.03
03/13/1998 0.0975 0.0000 0.0000 15.05
12/15/1997 0.1170 0.3400 0.3800 15.21
09/23/1997 0.3502 0.0000 0.0000 64.566
06/24/1997 0.6490 N/A 0.0820 56.81
03/25/1997 0.3011 N/A N/A 57.64
as of 06/30/2015

Sector Breakdown

The holdings are organized according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of Morgan Stanley Capital International Inc. and Standard & Poor's.

as of 06/30/2015

Asset Mix

as of 06/30/2015

Fund Characteristics

3-Year Alpha -0.83%
3-Year Beta 0.98
3-Year R-Squared 0.99
3-Year Sharpe Ratio 0.63
3-Year Standard Deviation 12.49
Number of Securities 48
Total Assets $2,173,253,262.00
Wghtd Med Mkt Cap MM$ $14,458.00

Source: FactSet Research Systems Inc., StyleADVISOR

Benchmark:  FTSE NAREIT All Equity REITs Index

as of 06/30/2015

Top Equity Holdings | View all

% of Total Assets
SIMON PROPERTY GROUP INC 9.23
AVALONBAY COMMUNITIES INC 6.92
AMERICAN TOWER CORP CL A 5.72
PROLOGIS INC 4.92
FEDERAL RLTY INVS TRUST 4.67
BOSTON PROPERTIES INC 4.25
VENTAS INC 3.95
WEYERHAEUSER CO 3.55
CROWN CASTLE INTERNATIONAL CORP 3.45
ESSEX PROPERTY TRUST INC 3.09

Holdings are subject to change and are not buy/sell recommendations.

as of 06/30/2015

Top Industries

  % of Total Assets
Real Estate- Retail 24.27
Real Estate- Residential 14.52
Real Estate- Office 13.35
Real Estate- Health Care 10.26
Real Estate- Infrastructure 9.77
Real Estate- Lodging/Resorts 7.49
Real Estate- Industrial 6.90
Real Estate- Self-Storage 5.03
Real Estate- Timber 3.55
Real Estate- Diversified 3.06

The holdings are organized according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of Morgan Stanley Capital International Inc. and Standard & Poor's.

 About risk

Convertible Securities Risk. The Fund may own convertible securities, the value of which may be affected by market interest rates, the risk that the issuer will default, the value of the underlying stock or the right of the issuer to buy back the convertible securities.

Credit Risk. The issuer of instruments in which the Fund invests may be unable to meet interest and/or principal payments, thereby causing its instruments to decrease in value and lowering the issuer's credit rating.

Derivatives Risk. The value of a derivative instrument depends largely on (and is derived from) the value of an underlying security, currency, commodity, interest rate, index or other asset (each referred to as an underlying asset). In addition to risks relating to the underlying assets, the use of derivatives may include other, possibly greater, risks, including counterparty, leverage and liquidity risks. Counterparty risk is the risk that the counterparty to the derivative contract will default on its obligation to pay the Fund the amount owed or otherwise perform under the derivative contract. Derivatives create leverage risk because they do not require payment up front equal to the economic exposure created by owning the derivative. As a result, an adverse change in the value of the underlying asset could result in the Fund sustaining a loss that is substantially greater than the amount invested in the derivative, which may make the Fund's returns more volatile and increase the risk of loss. Derivative instruments may also be less liquid than more traditional investments and the Fund may be unable to sell or close out its derivative positions at a desirable time or price. This risk may be more acute under adverse market conditions, during which the Fund may be most in need of liquidating its derivative positions. Derivatives may also be harder to value, less tax efficient and subject to changing government regulation that could impact the Fund's ability to use certain derivatives or their cost. Also, derivatives used for hedging or to gain or limit exposure to a particular market segment may not provide the expected benefits, particularly during adverse market conditions.

Developing/Emerging Markets Securities Risk. The prices of securities issued by foreign companies and governments located in developing/emerging markets countries may be affected more negatively by inflation, devaluation of their currencies, higher transaction costs, delays in settlement, adverse political developments, the introduction of capital controls, withholding taxes, nationalization of private assets, expropriation, social unrest, war or lack of timely information than those in developed countries.

Foreign Securities Risk. The Fund's foreign investments may be affected by changes in a foreign country's exchange rates, political and social instability, changes in economic or taxation policies, difficulties when enforcing obligations, decreased liquidity, and increased volatility. Foreign companies may be subject to less regulation resulting in less publicly available information about the companies.

High Yield Bond (Junk Bond) Risk. Junk bonds involve a greater risk of default or price changes due to changes in the credit quality of the issuer. The values of junk bonds fluctuate more than those of high-quality bonds in response to company, political, regulatory or economic developments. Values of junk bonds can decline significantly over short periods of time.

Interest Rate Risk. Interest rate risk refers to the risk that bond prices generally fall as interest rates rise; conversely, bond prices generally rise as interest rates fall. Specific bonds differ in their sensitivity to changes in interest rates depending on their individual characteristics, including duration.

Management Risk. The investment techniques and risk analysis used by the Fund's portfolio managers may not produce the desired results.

Market Risk. The prices of and the income generated by the Fund's securities may decline in response to, among other things, investor sentiment, general economic and market conditions, regional or global instability, and currency and interest rate fluctuations.

Mortgage- and Asset-Backed Securities Risk. The Fund may invest in mortgage- and asset-backed securities that are subject to prepayment or call risk, which is the risk that the borrower's payments may be received earlier or later than expected due to changes in prepayment rates on underlying loans. Faster prepayments often happen when interest rates are falling. As a result, the Fund may reinvest these early payments at lower interest rates, thereby reducing the Fund's income. Conversely, when interest rates rise, prepayments may happen more slowly, causing the security to lengthen in duration. Longer duration securities tend to be more volatile. Securities may be prepaid at a price less than the original purchase value. An unexpectedly high rate of defaults on the mortgages held by a mortgage pool may adversely affect the value of mortgage-backed securities and could result in losses to the Fund. The risk of such defaults is generally higher in the case of mortgage pools that include subprime mortgages. Subprime mortgages refer to loans made to borrowers with weakened credit histories or with lower capacity to make timely payments on their mortgages.

Preferred Securities Risk. Preferred securities may include provisions that permit the issuer, in its discretion, to defer or omit distributions for a certain period of time. If the Fund owns a security that is deferring or omitting its distributions, the Fund may be required to report the distribution on its tax returns, even though it may not have received this income. Further, preferred securities may lose substantial value due to the omission or deferment of dividend payments.

REIT Risk/Real Estate Risk. The Fund concentrates its investments in the securities of real estate and real estate related companies. Investments in real estate related instruments may be affected by economic, legal, cultural, environmental or technological factors that affect property values, rents or occupancies of real estate related to the Fund's holdings. 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. The value of investments in real estate related companies may be affected by the quality of management, the ability to repay loans, the utilization of leverage and financial covenants related thereto, whether the company carries adequate insurance and environmental factors. If a real estate related company defaults, the Fund may own real estate directly, which involves the following additional risks: environmental liabilities, difficulty in valuing and selling the real estate, and economic or regulatory changes.

Short Sales Risk. Short sales may cause the Fund to repurchase a security at a higher price, thereby causing the Fund to incur a loss. A short position in a security poses more risk than holding the same security long. As there is no limit on how much the price of the security can increase, the Fund's exposure is unlimited. In order to establish a short position in a security, the Fund must borrow the security from a broker. The Fund may not always be able to borrow a security the Fund seeks to sell short at a particular time or at an acceptable price. The Fund also may not always be able to close out the short position by replacing the borrowed securities at a particular time or at an acceptable price. The Fund will incur increased transaction costs associated with selling securities short. In addition, taking short positions in securities results in a form of leverage which may cause the Fund to be volatile.

Small- and Mid-Capitalization Risks. Stocks of small- and mid-sized companies tend to be more vulnerable to adverse developments and may have little or no operating history or track record of success, and limited product lines, markets, management and financial resources. The securities of small- and mid-sized companies may be more volatile due to less market interest and less publicly available information about the issuer. They also may be illiquid or restricted as to resale, or may trade less frequently and in smaller volumes, all of which may cause difficulty when establishing or closing a position at a desirable price.

as of 07/30/2015

IARAX

NAV Change ($)
$25.89 -0.08
N/As may appear until data is available. Data is usually updated between 3 and 6 p.m. CST.
as of 07/30/2015

Yield 

  • Distribution Yield
    with Sales Charge 0.87%
  • Distribution Yield
    without Sales Charge 0.92%
  • SEC 30-Day Yield 0.86%
  • Unsub. 30-Day Yield N/A

Fund Details

  • Distribution Frequency Quarterly
  • NASDAQ IARAX
  • WSJ Abrev. RealEst
  • CUSIP 00142C565
  • Fund Type Alternative
  • Geography Type Domestic
  • Inception Date 12/31/1996
  • Fiscal Year End 02/28
  • Min Initial Investment $1,000
  • Subsequent Investment $50
  • Min Initial IRA Investment $250
  • Fund Number 1525
  • Tax ID 77-0613586

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