Mutual Funds

Invesco Balanced-Risk Allocation Fund

Alternatives | Risk-Balanced

Objective & Strategy

The fund seeks total return with a low to moderate correlation to traditional financial market indexes.

Conference call

Q1 2017 update from our Global Asset Allocation Team

Watch the IBRA Q&A session

Conference call

Q1 2017 update from our Global Asset Allocation Team

Watch the IBRA Q&A session

Conference call

Q1 2017 update from our Global Asset Allocation Team

Watch the IBRA Q&A session

Strengthen your core

An actively managed strategy that may strengthen your portfolio core using a risk-balanced approach to stocks, bonds and commodities1. Our team's high-conviction process has delivered long-term results by focusing on three goals: prepare, protect and participate.

Explore our high-conviction approach

Prepare

A solid foundation for your portfolio

The fund has behaved differently from stocks and bonds, which may add greater overall portfolio diversification.2

Protect

A history of adapting to market conditions

Since inception, the fund had a higher risk-adjusted return than its benchmark by adapting to market cycles through its flexible approach.3

Participate

A potential combination of downside protection with upside participation

The fund uses processes intended to adjust portfolio risk in a variety of market conditions, historically achieving strong relative performance.


Strong relative performance through a variety of market environments
June 2009 to March 2017

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Performance quoted is past performance and cannot guarantee comparable future results; current performance may be lower or higher. Click the performance tab for the most recent month-end performance. Performance figures reflect reinvested distributions and changes in net asset value (NAV). Investment return and principal value will vary so that you may have a gain or a loss when you sell shares. Class A share performance reflects any applicable fee waivers or expense reimbursements. Performance shown at NAV does not include maximum applicable 5.50% front-end sales charge, which would have reduced performance. Returns less than one year are cumulative; all other performance figures are annualized.

Sources: Invesco, FactSet Research Systems, Inc., StyleADVISOR. Fund Inception: June 2, 2009. Returns for Class A shares do not include sales charges. Unmanaged index returns do not reflect any fees, expense, or sales charges. The Custom Invesco Balanced Risk Allocation Style Index is represented by 60% MSCI World Index℠ and 40% Bloomberg Barclays U.S. Aggregate Bond Index. Effective Dec. 1, 2009, the fixed income component of the Custom Invesco Balanced Risk Allocation Style Index changed from J.P. Morgan GBI Global (Traded) Index to the Bloomberg Barclays U.S. Aggregate Index. The MSCI World Index is considered representative of stocks of developed countries. The index return is computed using the net return which withholds applicable taxes for nonresident investors. The Bloomberg Barclays U.S. Aggregate Index is an unmanaged index considered representative of the U.S. investment-grade, fixed rate bond market. Quantitative easing is a monetary policy in which a central bank purchases government securities or other securities from the market in order to lower interest rates and increase the money supply. Returns less than one year are cumulative; all other performance figures are annualized.

1 Under normal conditions, the strategy invests in derivatives and other financially-linked instruments whose performance is expected to correspond to US and international fixed income, equity and commodity markets. However, the performance of the asset classes cannot be guaranteed.

2 Source: Invesco. As measured by correlation. Correlation indicates the degree to which two investments have historically moved in the same direction and magnitude. The fund has historically low correlation to stocks and bonds, 0.58 and 0.45, respectively. 1.00 is perfect correlation. Stocks as measured by the S&P 500 Index and bonds as measured by the Bloomberg Barclays US Aggregate Index. Data from June 30, 2009 to Mar. 31, 2017. Diversification does not guarantee a profit or eliminate the risk of loss.

3 Source: Invesco. The fund versus the Custom Invesco Balanced-Risk Allocation Style Index from fund inception June 2, 2009, through Mar. 31, 2017. Risk-adjusted return as measured by Sharpe ratio, which is a measure calculated using standard deviation and excess return to determine reward per unit of risk. A higher Sharpe ratio indicates better risk-adjusted performance. The Sharpe ratio for the fund was 1.09 and 0.95 for the benchmark.

as of 05/31/2017

Morningstar Rating

Overall Rating - Tactical Allocation Category

As of 05/31/2017 the Fund had an overall rating of 3 stars out of 249 funds and was rated 4 stars out of 249 funds, 3 stars out of 168 funds and N/A stars out of N/A 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, placing more emphasis on downward variations and rewarding consistent performance. Open-end mutual funds and exchange-traded funds are considered a single population for comparison purposes. Ratings are calculated for funds with at least a three year history. The overall rating is derived from a weighted average of three-, five- and 10-year rating metrics, as applicable, excluding sales charges and including fees and expenses. ©2017 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. 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. Ratings are subject to change monthly. Had fees not been waived and/or expenses reimbursed currently or in the past, the Morningstar rating would have been lower. Ratings for other share classes may differ due to different performance characteristics.

Management team

as of 5/31/2017

Top Holdings | View all

  % of Total net assets
XM Australian 10 Year Bond Future 24.31%
CN Canadian 10 Year Bond Future 20.05%
G Long Gilt Future 14.34%
RX Euro-Bund Future 9.77%
TP Topix Futures 8.50%
US US Long Bond Future 6.60%
VG DJ Euro Stoxx 50 Future 8.10%
Z FTSE 100 Future 7.61%
ES S&P 500 E-Mini Future 6.69%
HI Hang Seng Futures 6.23%

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

as of 05/31/2017 03/31/2017

Average Annual Returns (%)

  Incept.
Date
Max
Load (%)
Since
Incept. (%)
YTD (%) 1Y (%) 3Y (%) 5Y (%) 10Y (%)
NAV 06/02/2009 N/A 7.64 4.09 8.63 3.39 4.88 N/A
Load 06/02/2009 5.50 6.89 -1.62 2.61 1.46 3.70 N/A
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 05/31/2017 03/31/2017

Annualized Benchmark Returns


Index Name 1 Mo (%) 3 Mo (%) 1Y (%) 3Y (%) 5Y (%) 10Y (%)
Custom Invesco Balanced Risk Allocation Index 1.58 3.45 10.41 4.65 8.41 4.91
Custom Balanced Risk Broad Index 1.16 2.16 10.99 7.29 10.18 6.29
Custom Invesco Balanced Risk Allocation Index 0.62 4.13 8.98 4.59 6.70 5.03
Custom Balanced Risk Broad Index 0.06 3.96 10.34 7.50 9.02 6.56

Source: Invesco, FactSet Research Systems Inc.

Source: Invesco, FactSet Research Systems Inc.

An investment cannot be made directly in an index.

Expense Ratio per Prospectus

Management Fee 0.87
12b-1 Fee 0.25
Other Expenses 0.15
Interest/Dividend Exp 0.00
Total Other Expenses 0.15
Acquired Fund Fees and Expenses (Underlying Fund Fees & Expenses) 0.08
Total Annual Fund Operating Expenses 1.35
Contractual Waivers/Reimbursements -0.07
Net Expenses - PER PROSPECTUS 1.28
Additional Waivers/Reimbursements 0.00
Net Expenses - With Additional Fee Reduction 1.28
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
12/13/2016 0.4117 0.1893 0.2744 10.51
12/11/2015 0.2908 0.2311 0.1880 10.25
12/12/2014 0.2453 0.3349 0.3233 11.47
12/13/2013 N/A 0.5152 0.3986 11.61
12/07/2012 0.2896 0.2114 0.1394 12.44
12/09/2011 0.3353 N/A 0.1209 11.79
12/10/2010 0.4657 0.1453 0.0571 10.89
12/11/2009 0.2093 0.2922 0.0523 10.40
as of 05/31/2017

Fund Characteristics

3-Year Alpha 0.29%
3-Year Beta 0.66
3-Year R-Squared 0.55
3-Year Sharpe Ratio 0.55
3-Year Standard Deviation 5.73
Number of Securities 2
Total Assets $5,171,600,614.00
Wghtd Med Mkt Cap MM$ $0.00

Source: Invesco, FactSet Research Systems Inc., StyleADVISOR

Benchmark:  Custom Invesco Balanced Risk Allocation Index

as of 5/31/2017

Top Holdings | View all

  % of Total net assets
XM Australian 10 Year Bond Future 24.31%
CN Canadian 10 Year Bond Future 20.05%
G Long Gilt Future 14.34%
RX Euro-Bund Future 9.77%
TP Topix Futures 8.50%
US US Long Bond Future 6.60%
VG DJ Euro Stoxx 50 Future 8.10%
Z FTSE 100 Future 7.61%
ES S&P 500 E-Mini Future 6.69%
HI Hang Seng Futures 6.23%

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

 About risk

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. 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 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.

Commodities Tax Risk. The tax treatment of commodity-linked derivative instruments may be adversely affected by changes in legislation, regulations or other legally binding authority. If, as a result of any such adverse action, the income of the Fund from certain commodity-linked derivatives was treated as non-qualifying income, the Fund might fail to qualify as a regulated investment company and be subject to federal income tax at the Fund level. Should the Internal Revenue Service issue guidance, or Congress enact legislation, that adversely affects the tax treatment of the Fund's use of commodity-linked notes or the Subsidiary (which guidance might be applied to the Fund retroactively), it could, among other consequences, limit the Fund's ability to pursue its investment strategy.

Commodity-Linked Notes Risk. In addition to risks associated with the underlying commodities, investments in commodity-linked notes may be subject to additional risks, such as non-payment of interest and loss of principal, counterparty risk, lack of a secondary market and risk of greater volatility than traditional equity and debt securities. The value of the commodity-linked notes the Fund buys may fluctuate significantly because the values of the underlying investments to which they are linked are themselves volatile. Additionally, certain commodity-linked notes employ "economic" leverage by requiring payment by the issuer of an amount that is a multiple of the price increase or decrease of the underlying commodity, commodity index, or other economic variable. Such economic leverage will increase the volatility of the value of these commodity-linked notes and the Fund to the extent it invests in such notes.

Commodity Risk. The Fund may have investment exposure to the commodities markets and/or a particular sector of the commodities markets, which may subject the Fund to greater volatility than investments in traditional securities, such as stocks and bonds. Volatility in the commodities markets may be caused by changes in overall market movements, domestic and foreign political and economic events and policies, war, acts of terrorism, changes in domestic or foreign interest rates and/or investor expectations concerning interest rates, domestic and foreign inflation rates, investment and trading activities of mutual funds, hedge funds and commodities funds, and factors such as drought, floods, weather, livestock disease, embargoes, tariffs and other regulatory developments or supply and demand disruptions. Because the Fund's performance may be linked to the performance of volatile commodities, investors should be willing to assume the risks of potentially significant fluctuations in the value of the Fund's shares.

Correlation Risk. Because the Fund's investment strategy seeks to balance risk across three asset classes and, within each asset class, across different countries and investments, to the extent either the asset classes or the selected countries and investments become correlated in a way not anticipated by the Adviser, the Fund's risk allocation process may result in magnified risks and loss instead of balancing (reducing) the risk of loss.

Debt Securities Risk. The prices of debt securities held by the Fund will be affected by changes in interest rates, the creditworthiness of the issuer and other factors. An increase in prevailing interest rates typically causes the value of existing debt securities to fall and often has a greater impact on longer-duration debt securities and higher quality debt securities. Falling interest rates will cause the Fund to reinvest the proceeds of debt securities that have been repaid by the issuer at lower interest rates. Falling interest rates may also reduce the Fund's distributable income because interest payments on floating rate debt instruments held by the Fund will decline. The Fund could lose money on investments in debt securities if the issuer or borrower fails to meet its obligations to make interest payments and/or to repay principal in a timely manner. Changes in an issuer's financial strength, the market's perception of such strength or in the credit rating of the issuer or the security may affect the value of debt securities. The Adviser's credit analysis may fail to anticipate such changes, which could result in buying a debt security at an inopportune time or failing to sell a debt security in advance of a price decline or other credit event.

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. These risks are greater for the Fund than most other mutual funds because the Fund will implement its investment strategy primarily through derivative instruments rather than direct investments in stocks/bonds.

Emerging Markets Securities Risk. Emerging markets (also referred to as developing markets) are generally subject to greater market volatility, political, social and economic instability, uncertain trading markets and more governmental limitations on foreign investment than more developed markets. In addition, emerging markets may be subject to lower trading volume and greater price fluctuations than companies in more developed markets. Securities law and the enforcement of systems of taxation in many emerging market countries may change quickly and unpredictably. In addition, investments in emerging markets securities may also be subject to additional transaction costs, delays in settlement procedures, and lack of timely information.

Exchange-Traded Funds Risk. In addition to the risks associated with the underlying assets held by the exchange-traded fund, investments in exchange-traded funds are subject to the following additional risks: (1) an exchange-traded fund's shares may trade above or below its net asset value; (2) an active trading market for the exchange-traded fund's shares may not develop or be maintained; (3) trading an exchange-traded fund's shares may be halted by the listing exchange; (4) a passively managed exchange-traded fund may not track the performance of the reference asset; and (5) a passively managed exchange-traded fund may hold troubled securities. Investment in exchange-traded funds may involve duplication of management fees and certain other expenses, as the Fund indirectly bears its proportionate share of any expenses paid by the exchange-traded funds in which it invests. Further, certain exchange-traded funds in which the Fund may invest are leveraged, which may result in economic leverage, permitting the Fund to gain exposure that is greater than would be the case in an unlevered instrument and potentially resulting in greater volatility.

Exchange-Traded Notes Risk. Exchange-traded notes are subject to credit risk, counterparty risk, and the risk that the value of the exchange-traded note may drop due to a downgrade in the issuer's credit rating. The value of an exchange-traded note may also be influenced by time to maturity, level of supply and demand for the exchange-traded note, volatility and lack of liquidity in the underlying market, changes in the applicable interest rates, and economic, legal, political, or geographic events that affect the referenced underlying market or assets. The Fund will bear its proportionate share of any fees and expenses borne by an exchange-traded note in which it invests. For certain exchange-traded notes, there may be restrictions on the Fund's right to redeem its investment, which is meant to be held until maturity.

Foreign Government Debt Risk. Investments in foreign government debt securities (sometimes referred to as sovereign debt securities) involve certain risks in addition to those relating to foreign securities or debt securities generally. The issuer of the debt or the governmental authorities that control the repayment of the debt may be unable or unwilling to repay principal or interest when due in accordance with the terms of such debt, and the Fund may have limited recourse in the event of a default against the defaulting government. Without the approval of debt holders, some governmental debtors have in the past been able to reschedule or restructure their debt payments or declare moratoria on payments.

Foreign Securities Risk. The Fund's foreign investments may be adversely affected by political and social instability, changes in economic or taxation policies, difficulty in enforcing obligations, decreased liquidity or increased volatility. Foreign investments also involve the risk of the possible seizure, nationalization or expropriation of the issuer or foreign deposits (in which the Fund could lose its entire investments in a certain market) and the possible adoption of foreign governmental restrictions such as exchange controls. Unless the Fund has hedged its foreign securities risk, foreign securities risk also involves the risk of negative foreign currency rate fluctuations, which may cause the value of securities denominated in such foreign currency (or other instruments through which the Fund has exposure to foreign currencies) to decline in value. Currency exchange rates may fluctuate significantly over short periods of time. Currency hedging strategies, if used, are not always successful.

Management Risk. The Fund is actively managed and depends heavily on the Adviser's judgment about markets, interest rates or the attractiveness, relative values, liquidity, or potential appreciation of particular investments made for the Fund's portfolio. The Fund could experience losses if these judgments prove to be incorrect. Because the Fund's investment process relies heavily on its asset allocation process, market movements that are counter to the portfolio managers' expectations may have a significant adverse effect on the Fund's net asset value. Additionally, legislative, regulatory, or tax developments may adversely affect management of the Fund and, therefore, the ability of the Fund to achieve its investment objective.

Market Risk. The market values of the Fund's investments, and therefore the value of the Fund's shares, will go up and down, sometimes rapidly or unpredictably. Market risk may affect a single issuer, industry or section of the economy, or it may affect the market as a whole. Individual stock prices tend to go up and down more dramatically than those of certain other types of investments, such as bonds. During a general downturn in the financial markets, multiple asset classes may decline in value. When markets perform well, there can be no assurance that specific investments held by the Fund will rise in value.

Short Position Risk. Because the Fund's potential loss on a short position arises from increases in the value of the asset sold short, the Fund will incur a loss on a short position, which is theoretically unlimited, if the price of the asset sold short increases from the short sale price. The counterparty to a short position or other market factors may prevent the Fund from closing out a short position at a desirable time or price and may reduce or eliminate any gain or result in a loss. In a rising market, the Fund's short positions will cause the Fund to underperform the overall market and its peers that do not engage in shorting. If the Fund holds both long and short positions, and both positions decline simultaneously, the short positions will not provide any buffer (hedge) from declines in value of the Fund's long positions. Certain types of short positions involve leverage, which may exaggerate any losses, potentially more than the actual cost of the investment, and will increase the volatility of the Fund's returns.

Subsidiary Risk. By investing in the Subsidiary, the Fund is indirectly exposed to risks associated with the Subsidiary's investments. The Subsidiary is not registered under the Investment Company Act of 1940, as amended (1940 Act), and, except as otherwise noted in this prospectus, is not subject to the investor protections of the 1940 Act. Changes in the laws of the United States and/or the Cayman Islands, under which the Fund and the Subsidiary, respectively, are organized, could result in the inability of the Fund and/or the Subsidiary to operate as described in this prospectus and the SAI, and could negatively affect the Fund and its shareholders.

U.S. Government Obligations Risk. Obligations of U.S. Government agencies and authorities receive varying levels of support and may not be backed by the full faith and credit of the U.S. Government, which could affect the Fund's ability to recover should they default. No assurance can be given that the U.S. Government will provide financial support to its agencies and authorities if it is not obligated by law to do so.

Volatility Risk. Although the Fund's investment strategy targets a specific volatility level, certain of the Fund's investments may appreciate or decrease significantly in value over short periods of time. This may cause the Fund's net asset value per share to experience significant increases or declines in value over short periods of time.

as of 06/23/2017

ABRZX

NAV Change ($)
$10.86 0.02
N/As may appear until data is available. Data is usually updated between 3 and 6 p.m. CST.

Fund Details

  • Distribution Frequency Annually
  • NASDAQ ABRZX
  • WSJ Abrev. N/A
  • CUSIP 00141V747
  • Fund Type Alternative
  • Geography Type Global
  • Inception Date 06/02/2009
  • Fiscal Year End 10/31
  • Min Initial Investment $1,000
  • Subsequent Investment $50
  • Min Initial IRA Investment $250
  • Fund Number 1607
  • Tax ID 26-4299352