Mutual Funds

Invesco Convertible Securities Fund

Fixed Income | US Fixed Income

Objective & Strategy

The fund seeks total return through growth of capital and current income.

A Hybrid Investment

A convertibles strategy that focuses on traditional convertible bonds that offer the potential for a balanced risk/reward profile.

A hybrid investment   Long-term diversification benefits   Seasoned and dedicated team
A convertible bond is a corporate bond that has the added feature of being converted into a fixed number of shares of common stock. These securities may offer investors a measure of downside preservation compared with stocks and additional upside participation compared with traditional bonds. Convertibles are also higher in the capital structure versus common stock.1   Convertible bonds may be an option for investors looking to diversify their portfolio. The Bank of America Merrill Lynch All U.S. Convertibles Index had a correlation of 0.13 with the Barclays U.S. Aggregate Bond Index and 0.83 with the S&P 500 Index (Jan. 31, 1990 to March 31, 2014).2   The team is dedicated specifically to the management of convertibles and has a long tenure in the specialized market. Senior Portfolio Manager Ellen Gold has been on the team since 1989, Co-Manager Ramez Nashed has been on the team since 2000.


Footnote(s)

1 Investments in convertible securities subject the fund 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 stock 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.

2 Source: StyleADVISOR. Correlation is a statistical measure of how two securities move in relation to each other.

as of 07/31/2015

Morningstar Rating

Overall Rating - Convertibles Category

As of 07/31/2015 the Fund had an overall rating of 3 stars out of 77 funds and was rated 2 stars out of 77 funds, 2 stars out of 69 funds and 4 stars out of 42 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 07/31/2015

Top Fixed-Income Holdings | View all

Holding Name Coupon % Bond Maturity Date % of Total Assets
GILEAD SCIENCES INC CVT 1.625 05/01/2016 2.20
PALO ALTO NETWORK CVT 0 0.000 07/01/2019 1.99
SALESFORCE COM INC 0.25% CVT 0.250 04/01/2018 1.53
NXP SEMICONDUCTORS 1% CVT 144A 1.000 12/01/2019 1.30
JAZZ INVESTMENTS I LTD 144A 1.875 08/15/2021 1.29
FIAT CHRYSLER AUTOMOBILE 7.875% CVT 7.875 12/15/2016 1.26
JARDEN CORP 1.875 CVT 1.875 09/15/2018 1.25
MICRON TECH INC CVT BND 3.000 11/15/2043 1.14
EURONET WORLDWIDE 1.5 CVT 144A 1.500 10/01/2044 1.10
HORIZON PHARMA LTD 2.5% CVT 144A 2.500 03/15/2022 1.05

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

as of 07/31/2015 06/30/2015

Average Annual Returns (%)

  Incept.
Date
Max
Load (%)
Since
Incept. (%)
YTD (%) 1Y (%) 3Y (%) 5Y (%) 10Y (%)
NAV 07/28/1997 N/A 6.95 3.52 2.86 11.39 9.95 7.55
Load 07/28/1997 5.50 6.62 -2.18 -2.81 9.31 8.71 6.94
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.

as of 07/31/2015 06/30/2015

Annualized Benchmark Returns


Index Name 1 Mo (%) 3 Mo (%) 1Y (%) 3Y (%) 5Y (%) 10Y (%)
BofA Merrill Lynch All U.S. Convertibles Index -0.35 -0.53 5.30 14.80 11.49 7.49
BofA Merrill Lynch All U.S. Convertibles Index -0.35 -0.53 5.30 14.80 11.49 7.49
BofA Merrill Lynch All U.S. Convertibles Index -2.41 0.56 3.52 15.16 12.62 7.87
BofA Merrill Lynch All U.S. Convertibles Index -2.41 0.56 3.52 15.16 12.62 7.87

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 0.44
12b-1 Fee 0.24
Other Expenses 0.17
Interest/Dividend Exp 0.00
Total Other Expenses 0.17
Acquired Fund Fees and Expenses (Underlying Fund Fees & Expenses) 0.01
Total Annual Fund Operating Expenses 0.86
Contractual Waivers/Reimbursements -0.01
Net Expenses - PER PROSPECTUS 0.85
Additional Waivers/Reimbursements 0.00
Net Expenses - With Additional Fee Reduction 0.85
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 0.1397 N/A N/A 24.80
03/19/2015 0.1406 N/A N/A 24.35
12/12/2014 0.1466 0.0614 0.6608 23.54
09/18/2014 0.1216 N/A N/A 25.25
06/19/2014 0.1222 N/A N/A 25.48
03/20/2014 0.1270 N/A N/A 25.29
12/13/2013 0.1305 0.0826 0.4884 23.54
09/19/2013 0.1355 N/A N/A 24.03
06/20/2013 0.1355 N/A N/A 22.37
03/21/2013 0.1280 N/A N/A 22.01
12/07/2012 0.1255 N/A N/A 20.52
09/20/2012 0.1155 N/A N/A 20.81
06/14/2012 0.1155 N/A N/A 19.31
03/15/2012 0.1054 N/A N/A 20.42
12/09/2011 0.0979 N/A N/A 18.75
09/15/2011 0.0979 N/A N/A 18.96
06/16/2011 0.0968 N/A N/A 20.23
03/17/2011 0.0968 N/A N/A 20.49
12/03/2010 0.1276 N/A N/A 19.57
09/16/2010 0.1715 N/A N/A 18.35
06/23/2010 0.1883 N/A N/A 17.61
03/31/2010 0.1766 N/A N/A 18.22
12/15/2009 0.1737 N/A N/A 17.34
09/30/2009 0.1720 N/A N/A 16.85
06/23/2009 0.1080 0.0000 0.0000 14.29
03/31/2009 0.1065 0.0000 0.0000 13.25
03/24/2008 0.1166 0.0000 0.0000 17.46
12/15/2005 0.1023 0.0000 0.0000 16.59
09/23/2005 0.1031 0.0000 0.0000 16.28
06/23/2005 0.1165 0.0000 0.0000 15.87
03/23/2005 0.1333 0.0000 0.0000 15.89
12/13/2002 0.1199 0.0000 0.0000 13.29
09/23/2002 0.1413 0.0000 0.0000 12.75
06/21/2002 0.1679 0.0000 0.0000 14.01
03/21/2002 0.1670 0.0000 0.0000 14.92
12/14/2001 0.1699 0.0000 0.0000 14.59
09/21/2001 0.1662 0.0000 0.0000 13.72
06/22/2001 0.1687 0.0000 0.0000 15.32
03/23/2001 0.1689 0.0000 0.0000 15.18
12/15/2000 0.1719 0.0000 0.0000 15.72
09/22/2000 0.1722 0.0000 0.0000 17.16
06/23/2000 0.1705 0.0000 0.0000 16.93
03/24/2000 0.1762 0.0000 0.0000 18.81
12/16/1999 0.1726 0.0000 0.0000 15.30
09/23/1999 0.1662 0.0000 0.0000 13.55
06/23/1999 0.1658 0.0000 0.0000 14.10
03/24/1999 0.1720 0.0000 0.0000 12.98
12/15/1998 0.1649 0.0000 0.0000 12.84
09/23/1998 0.1669 0.0000 0.0000 12.67
06/23/1998 0.1690 0.0000 0.0000 14.77
03/24/1998 0.1691 0.0000 0.0000 15.20
as of 07/31/2015

Quality Breakdown

Ratings are based on S&P, Moody's or Fitch, as applicable. A credit rating is an assessment provided by a nationally recognized statistical rating organization (NRSRO) of the creditworthiness of an issuer with respect to debt obligations, including specific securities, money market instruments or other debts. Ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest); ratings are subject to change without notice. NR indicates the debtor was not rated, and should not be interpreted as indicating low quality. If securities are rated differently by the rating agencies, the higher rating is applied. Credit ratings are based largely on the rating agency's investment analysis at the time of rating and the rating assigned to any particular security is not necessarily a reflection of the issuer's current financial condition. The rating assigned to a security by a rating agency does not necessarily reflect its assessment of the volatility of a security's market value or of the liquidity of an investment in the security. For more information on the rating methodology, please visit the following NRSRO websites: www.standardandpoors.com and select 'Understanding Ratings' under Rating Resources on the homepage; www.moodys.com and select 'Rating Methodologies' under Research and Ratings on the homepage; www.fitchratings.com and select 'Ratings Definitions' on the homepage.

as of 07/31/2015

Fund Characteristics

3-Year Alpha -1.81%
3-Year Beta 0.91
3-Year R-Squared 0.94
3-Year Sharpe Ratio 1.71
3-Year Standard Deviation 6.64
Number of Securities 145
Total Assets $2,336,811,498.00
Wghtd Med Mkt Cap MM$ $7,325.00

Source: FactSet Research Systems Inc.., StyleADVISOR

Benchmark:  BofA Merrill Lynch All U.S. Convertibles Index

as of 07/31/2015

Top Fixed-Income Holdings | View all

Holding Name Coupon % Bond Maturity Date % of Total Assets
GILEAD SCIENCES INC CVT 1.625 05/01/2016 2.20
PALO ALTO NETWORK CVT 0 0.000 07/01/2019 1.99
SALESFORCE COM INC 0.25% CVT 0.250 04/01/2018 1.53
NXP SEMICONDUCTORS 1% CVT 144A 1.000 12/01/2019 1.30
JAZZ INVESTMENTS I LTD 144A 1.875 08/15/2021 1.29
FIAT CHRYSLER AUTOMOBILE 7.875% CVT 7.875 12/15/2016 1.26
JARDEN CORP 1.875 CVT 1.875 09/15/2018 1.25
MICRON TECH INC CVT BND 3.000 11/15/2043 1.14
EURONET WORLDWIDE 1.5 CVT 144A 1.500 10/01/2044 1.10
HORIZON PHARMA LTD 2.5% CVT 144A 2.500 03/15/2022 1.05

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

as of 07/31/2015

Top Industries

  % of Total Assets
Biotechnology 6.36
Semiconductors 5.25
Internet Software & Services 4.99
Systems Software 4.59
Application Software 4.30
Pharmaceuticals 4.28
Health Care Equipment 4.17
Communications Equipment 3.89
Health Care Facilities 2.79
Diversified Banks 2.44

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.

Depositary Receipts Risk. Depositary receipts involve many of the same risks as those associated with direct investment in foreign securities. In addition, the underlying issuers of certain depositary receipts, particularly unsponsored or unregistered depositary receipts, are under no obligation to distribute shareholder communications to the holders of such receipts or to pass through to them any voting rights with respect to the deposited securities.

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 market 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.

Liquidity Risk. The Fund may hold illiquid securities that it may be unable to sell at the preferred time or price and could lose its entire investment in such securities.

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.

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.

as of 08/31/2015

CNSAX

NAV Change ($)
$23.51 -0.07
N/As may appear until data is available. Data is usually updated between 3 and 6 p.m. CST.
as of 08/31/2015

Yield 

  • Distribution Yield
    with Sales Charge 2.25%
  • Distribution Yield
    without Sales Charge 2.38%
  • SEC 30-Day Yield 0.73%
  • Unsub. 30-Day Yield 0.72%

Fund Details

  • Distribution Frequency Quarterly
  • NASDAQ CNSAX
  • WSJ Abrev. N/A
  • CUSIP 00888W403
  • Fund Type Hybrid
  • Geography Type Domestic
  • Inception Date 07/28/1997
  • Fiscal Year End 12/31
  • Min Initial Investment $1,000
  • Subsequent Investment $50
  • Min Initial IRA Investment $250
  • Fund Number 1704
  • Tax ID 13-3288295

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