Invesco Limited Maturity Treasury FundFixed Income | US Fixed Income
Objective & Strategy
The fund seeks to achieve total return, comprised of current income and capital appreciation.
Morningstar Rating™Overall Rating - Short Government Category
As of 07/31/2015 the Fund had an overall rating of 1 stars out of 116 funds and was rated 1 stars out of 116 funds, 1 stars out of 109 funds and 1 stars out of 93 funds for the 3-, 5- and 10- year periods, respectively.
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.
Average Annual Returns (%)
|YTD (%)||1Y (%)||3Y (%)||5Y (%)||10Y (%)|
Annualized Benchmark Returns
|Index Name||1 Mo (%)||3 Mo (%)||1Y (%)||3Y (%)||5Y (%)||10Y (%)|
|Barclays 1-2 Govt Bd Tr||0.02||0.11||0.62||0.46||0.58||2.33|
|Barclays US Aggregate TR||0.70||-0.64||2.82||1.60||3.27||4.61|
|Barclays 1-2 Govt Bd Tr||0.03||0.14||0.59||0.51||0.61||2.31|
|Barclays US Aggregate TR||-1.09||-1.68||1.86||1.83||3.35||4.44|
Source: FactSet Research Systems Inc.
Source: FactSet Research Systems Inc.
An investment cannot be made directly in an index.
Expense Ratio per Prospectus
|Total Other Expenses||0.47|
|Acquired Fund Fees and Expenses (Underlying Fund Fees & Expenses)||0.00|
|Total Annual Fund Operating Expenses||0.92|
|Net Expenses - PER PROSPECTUS||0.92|
|Net Expenses - With Additional Fee Reduction||0.92|
|Ex-Date||Income||Short Term||Long Term|
|3-Year Sharpe Ratio||-0.34|
|3-Year Standard Deviation||0.47|
|Number of Securities||15|
Source: FactSet Research Systems Inc., StyleADVISOR
Benchmark: Barclays 1-2 Govt Bd Tr
Changing Fixed Income Market Conditions Risk. The current low interest rate environment was created in part by the Federal Reserve Board (FRB) and certain foreign central banks keeping the federal funds and equivalent foreign rates at or near zero. There is a risk that interest rates will rise when the FRB and central banks raise these rates. This risk is heightened due to the "tapering" of the FRB's quantitative easing program and other similar foreign central bank actions. This tapering and eventual increase 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 Fund'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 Fund's transaction costs.
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.
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.
Reinvestment Risk. Reinvestment risk is the risk that a bond's cash flows (coupon income and principal repayment) will be reinvested at an interest rate below that on the original bond.
U.S. Government Obligations Risk. The Fund may invest in obligations issued by U.S. Government agencies and instrumentalities that may receive varying levels of support from the government, which could affect the Fund's ability to recover should they default.