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 08/31/2016

Morningstar Rating

Overall Rating - Convertibles Category

As of 08/31/2016 the Fund had an overall rating of 3 stars out of 78 funds and was rated 1 stars out of 78 funds, 2 stars out of 72 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. ©2016 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 08/31/2016

Top Fixed-Income Holdings | View all

Holding Name Coupon % Bond Maturity Date % of Total Assets
SALESFORCE COM INC 0.25% CVT 0.250 04/01/2018 2.26
NXP SEMICONDUCTORS 1% CVT 1.000 12/01/2019 1.82
MICROCHIP TECH 1.625% CVT 1.625 02/15/2025 1.48
WRIGHT MED GROUP INC 2.00% CVT 2.000 02/15/2020 1.43
DISH NETWORK CORP 144A 3.375 08/15/2026 1.38
LIVE NATION ENTRTANMNT 2.5 CVT 2.500 05/15/2019 1.27
JAZZ INVESTMENTS I LTD 144A 1.875 08/15/2021 1.24
INTEL CORP CVT 144A 3.250 08/01/2039 1.24
INTEGRATED DEVICE TECH CVT 144A 0.875 11/15/2022 1.22
ELECTRONICS FOR IMAGING 0.75% CVT 0.750 09/01/2019 1.17

May not equal 100% due to rounding.

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

as of 08/31/2016 06/30/2016

Average Annual Returns (%)

  Incept.
Date
Max
Load (%)
Since
Incept. (%)
YTD (%) 1Y (%) 3Y (%) 5Y (%) 10Y (%)
NAV 07/28/1997 N/A 6.44 4.79 2.05 4.40 7.61 6.63
Load 07/28/1997 5.50 6.13 -0.99 -3.57 2.45 6.39 6.03
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 08/31/2016 06/30/2016

Annualized Benchmark Returns


Index Name 1 Mo (%) 3 Mo (%) 1Y (%) 3Y (%) 5Y (%) 10Y (%)
BofA Merrill Lynch All U.S. Convertibles Index 0.28 5.30 4.27 7.73 9.99 6.75
BofA Merrill Lynch All U.S. Convertibles Index 0.28 5.30 4.27 7.73 9.99 6.75
BofA Merrill Lynch All U.S. Convertibles Index 0.43 3.63 -4.46 7.16 7.15 6.42
BofA Merrill Lynch All U.S. Convertibles Index 0.43 3.63 -4.46 7.16 7.15 6.42

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 0.45
12b-1 Fee 0.24
Other Expenses 0.18
Interest/Dividend Exp 0.00
Total Other Expenses 0.18
Acquired Fund Fees and Expenses (Underlying Fund Fees & Expenses) 0.01
Total Annual Fund Operating Expenses 0.88
Contractual Waivers/Reimbursements -0.01
Net Expenses - PER PROSPECTUS 0.87
Additional Waivers/Reimbursements 0.00
Net Expenses - With Additional Fee Reduction 0.87
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
09/13/2016 0.2168 N/A N/A 22.90
06/16/2016 0.1710 N/A N/A 22.32
03/17/2016 0.1517 N/A N/A 21.69
12/11/2015 0.1408 N/A N/A 22.46
09/17/2015 0.1403 N/A N/A 23.79
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
06/22/2007 0.1159 0.0000 0.0000 18.74
03/23/2007 0.1175 0.0000 0.0000 18.20
12/15/2006 0.1598 0.0000 0.0000 17.89
09/22/2006 0.1079 0.0000 0.0000 17.10
06/23/2006 0.1082 0.0000 0.0000 16.58
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 08/31/2016

Fund Characteristics

3-Year Alpha -1.98%
3-Year Beta 0.84
3-Year R-Squared 0.95
3-Year Sharpe Ratio 0.56
3-Year Standard Deviation 7.71
Number of Securities 135
Total Assets $1,613,403,858.00
Wghtd Med Mkt Cap MM$ $4,043.00

Source: FactSet Research Systems Inc.., StyleADVISOR

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

as of 08/31/2016

Top Fixed-Income Holdings | View all

Holding Name Coupon % Bond Maturity Date % of Total Assets
SALESFORCE COM INC 0.25% CVT 0.250 04/01/2018 2.26
NXP SEMICONDUCTORS 1% CVT 1.000 12/01/2019 1.82
MICROCHIP TECH 1.625% CVT 1.625 02/15/2025 1.48
WRIGHT MED GROUP INC 2.00% CVT 2.000 02/15/2020 1.43
DISH NETWORK CORP 144A 3.375 08/15/2026 1.38
LIVE NATION ENTRTANMNT 2.5 CVT 2.500 05/15/2019 1.27
JAZZ INVESTMENTS I LTD 144A 1.875 08/15/2021 1.24
INTEL CORP CVT 144A 3.250 08/01/2039 1.24
INTEGRATED DEVICE TECH CVT 144A 0.875 11/15/2022 1.22
ELECTRONICS FOR IMAGING 0.75% CVT 0.750 09/01/2019 1.17

May not equal 100% due to rounding.

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

as of 08/31/2016

Top Industries

  % of Total Assets
Semiconductors 9.65
Internet Software & Services 6.43
Pharmaceuticals 6.08
Application Software 5.88
Oil & Gas Exploration & Production 4.93
Health Care Equipment 4.70
Diversified Banks 4.45
Biotechnology 4.43
Systems Software 4.36
Specialized REITs 3.90

May not equal 100% due to rounding.

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

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.

Convertible Securities Risk. The market values of convertible securities are affected by market interest rates, the risk of actual issuer default on interest or principal payments and the value of the underlying common stock into which the convertible security may be converted. Additionally, a convertible security is subject to the same types of market and issuer risks as apply to the underlying common stock. In addition, certain convertible securities are subject to involuntary conversions and may undergo principal write-downs upon the occurrence of certain triggering events, and, as a result, are subject to an increased 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.

Depositary Receipts Risk. Investing in depositary receipts involves the same risks as direct investments in foreign securities. In addition, the underlying issuers of certain depositary receipts are under no obligation to distribute shareholder communications or pass through any voting rights with respect to the deposited securities to the holders of such receipts. The Fund may therefore receive less timely information or have less control than if it invested directly in the foreign issuer.

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.

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, companies operating in 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.

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.

High Yield Debt Securities (Junk Bond) Risk. Investments in high yield debt securities (“junk bonds”) and other lower-rated securities will subject the Fund to substantial risk of loss. These securities are considered to be speculative with respect to the issuer’s ability to pay interest and principal when due, are more susceptible to default or decline in market value and are less liquid than investment grade debt securities. Prices of high yield debt securities tend to be very volatile.

Liquidity Risk. The Fund may be unable to sell illiquid investments at the time or price it desires and, as a result, could lose its entire investment in such investments. Liquid securities can become illiquid during periods of market stress. If a significant amount of the Fund’s securities become illiquid, the Fund may not be able to timely pay redemption proceeds and may need to sell securities at significantly reduced prices.

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. 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.

Preferred Securities Risk. Preferred securities are subject to issuer-specific and market risks applicable generally to equity securities. Preferred securities also may be subordinated to bonds or other debt instruments, subjecting them to a greater risk of non-payment, may be less liquid than many other securities, such as common stocks, and generally offer no voting rights with respect to the issuer.

Sector Focus Risk. The Fund may from time to time invest a significant amount of its assets (i.e. over 25%) in one market sector or group of related industries. In this event, the Fund’s performance will depend to a greater extent on the overall condition of the sector or group of industries and there is increased risk that the Fund will lose significant value if conditions adversely affect that sector or group of industries.

as of 09/23/2016

CNSAX

NAV Change ($)
$23.30 -0.07
N/As may appear until data is available. Data is usually updated between 3 and 6 p.m. CST.
as of 09/23/2016

Yield 

  • Distribution Yield
    with Sales Charge 3.52%
  • Distribution Yield
    without Sales Charge 3.72%
  • SEC 30-Day Yield 1.36%
  • Unsub. 30-Day Yield 1.35%

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