Mutual Funds

Invesco Corporate Bond Fund

Fixed Income | US Fixed Income

Objective & Strategy

The fund seeks current income with preservation of capital by investing primarily in corporate debt securities. Under normal market conditions, between 65% and 100% of the fund’s total assets are invested in investment-grade securities. Capital appreciation is a secondary objective that is sought only when consistent with the fund’s primary investment objective.

as of 05/31/2017

Morningstar Rating

Overall Rating - Corporate Bond Category

As of 05/31/2017 the Fund had an overall rating of 4 stars out of 174 funds and was rated 4 stars out of 174 funds, 4 stars out of 141 funds and 4 stars out of 79 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 05/31/2017

Top Fixed-Income Holdings | View all

Holding Name Coupon % Bond Maturity Date % of Total Assets
U.S. TREASURY N B 1.750 05/31/2022 2.23
AERCAP GLOBAL AVIATION T 144A 6.500 06/15/2045 1.58
U.S. TREASURY NOTES 2.375 05/15/2027 1.39
U.S. TREASURY BONDS 3.000 02/15/2047 1.22
SPRINT SPECTRUM SPEC I 3.360 03/20/2023 1.05
SOUTHERN CO 5.500 03/15/2057 0.94
ACCESS MIDSTREAM PARTNER 4.875 05/15/2023 0.88
KINDER MORGAN INC DELAWA 7.800 08/01/2031 0.86
SABINE PASS LIQUEFACTION 6.250 03/15/2022 0.84
MPLX LP 4.500 07/15/2023 0.81

May not equal 100% due to rounding.

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

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

Average Annual Returns (%)

Load (%)
Incept. (%)
YTD (%) 1Y (%) 3Y (%) 5Y (%) 10Y (%)
NAV 09/23/1971 N/A 7.22 4.45 6.65 4.00 4.85 5.87
Load 09/23/1971 4.25 7.11 0.00 2.10 2.49 3.96 5.41
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.

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

Annualized Benchmark Returns

Index Name 1 Mo (%) 3 Mo (%) 1Y (%) 3Y (%) 5Y (%) 10Y (%)
Bloomberg Barclays U.S. Credit Index 1.08 1.93 3.89 3.34 3.71 5.54
Bloomberg Barclays U.S. Credit Index 1.08 1.93 3.89 3.34 3.71 5.54
Bloomberg Barclays U.S. Credit Index -0.15 1.30 2.96 3.52 3.70 5.29
Bloomberg Barclays U.S. Credit Index -0.15 1.30 2.96 3.52 3.70 5.29

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 0.38
12b-1 Fee 0.25
Other Expenses 0.27
Interest/Dividend Exp 0.00
Total Other Expenses 0.27
Acquired Fund Fees and Expenses (Underlying Fund Fees & Expenses) 0.00
Total Annual Fund Operating Expenses 0.90
Contractual Waivers/Reimbursements N/A
Net Expenses - PER PROSPECTUS 0.90
Additional Waivers/Reimbursements 0.00
Net Expenses - With Additional Fee Reduction 0.90
This information is updated per the most recent prospectus.

Historical Prices

From   to
No history records found for this date range


From   to
    Capital Gains Reinvestment
Price ($)
Ex-Date Income Short Term Long Term
05/31/2017 0.0216 N/A N/A 7.40
04/28/2017 0.0216 N/A N/A 7.34
03/31/2017 0.0216 N/A N/A 7.27
02/28/2017 0.0216 N/A N/A 7.31
01/31/2017 0.0217 N/A N/A 7.22
12/30/2016 0.0217 N/A N/A 7.19
11/30/2016 0.0218 N/A N/A 7.14
10/31/2016 0.0218 N/A N/A 7.36
09/30/2016 0.0218 N/A N/A 7.43
08/31/2016 0.0218 N/A N/A 7.45
07/29/2016 0.0218 N/A N/A 7.43
06/30/2016 0.0218 N/A N/A 7.31
05/31/2016 0.0218 N/A N/A 7.19
04/29/2016 0.0218 N/A N/A 7.21
03/31/2016 0.0218 N/A N/A 7.09
02/29/2016 0.0218 N/A N/A 6.89
01/29/2016 0.0218 N/A N/A 6.89
12/31/2015 0.0218 N/A N/A 6.90
11/30/2015 0.0218 N/A N/A 7.00
10/30/2015 0.0218 N/A N/A 7.06
09/30/2015 0.0218 N/A N/A 7.00
08/31/2015 0.0218 N/A N/A 7.02
07/31/2015 0.0218 N/A N/A 7.14
06/30/2015 0.0218 N/A N/A 7.12
05/29/2015 0.0218 N/A N/A 7.28
04/30/2015 0.0218 N/A N/A 7.34
03/31/2015 0.0238 N/A N/A 7.39
02/27/2015 0.0238 N/A N/A 7.39
01/30/2015 0.0238 N/A N/A 7.45
12/31/2014 0.0238 N/A N/A 7.28
11/28/2014 0.0238 N/A N/A 7.32
10/31/2014 0.0238 N/A N/A 7.30
09/30/2014 0.0238 N/A N/A 7.26
08/29/2014 0.0238 N/A N/A 7.41
07/31/2014 0.0238 N/A N/A 7.32
06/30/2014 0.0238 N/A N/A 7.36
05/30/2014 0.0238 N/A N/A 7.35
04/30/2014 0.0238 N/A N/A 7.27
03/31/2014 0.0238 N/A N/A 7.20
02/28/2014 0.0238 N/A N/A 7.21
01/31/2014 0.0238 N/A N/A 7.12
12/31/2013 0.0229 N/A N/A 7.01
11/29/2013 0.0229 N/A N/A 7.03
10/31/2013 0.0229 N/A N/A 7.06
09/30/2013 0.0229 N/A N/A 6.94
08/30/2013 0.0229 N/A N/A 6.87
07/31/2013 0.0229 N/A N/A 6.98
06/28/2013 0.0229 N/A N/A 6.94
05/31/2013 0.0229 N/A N/A 7.18
04/30/2013 0.0229 N/A N/A 7.36
03/28/2013 0.0229 N/A N/A 7.25
02/28/2013 0.0229 N/A N/A 7.26
01/31/2013 0.0229 N/A N/A 7.23
12/31/2012 0.0229 N/A N/A 7.29
11/30/2012 0.0250 N/A N/A 7.30
10/31/2012 0.0250 N/A N/A 7.32
09/28/2012 0.0252 N/A N/A 7.26
08/31/2012 0.0250 N/A N/A 7.22
07/31/2012 0.0250 N/A N/A 7.22
06/29/2012 0.0250 N/A N/A 7.06
05/31/2012 0.0250 N/A N/A 7.06
04/30/2012 0.0250 N/A N/A 7.04
03/30/2012 0.0250 N/A N/A 6.97
02/29/2012 0.0250 N/A N/A 7.03
01/31/2012 0.0250 N/A N/A 6.97
12/30/2011 0.0249 N/A N/A 6.82
11/30/2011 0.0250 N/A N/A 6.71
10/31/2011 0.0250 N/A N/A 6.86
09/30/2011 0.0250 N/A N/A 6.77
08/31/2011 0.0250 N/A N/A 6.83
07/29/2011 0.0250 N/A N/A 6.91
06/30/2011 0.0250 N/A N/A 6.79
05/31/2011 0.0250 N/A N/A 6.89
04/29/2011 0.0250 N/A N/A 6.84
03/31/2011 0.0250 N/A N/A 6.75
02/28/2011 0.0250 N/A N/A 6.78
01/31/2011 0.0250 N/A N/A 6.73
12/31/2010 0.0264 N/A N/A 6.73
11/30/2010 0.0269 N/A N/A 6.79
10/29/2010 0.0278 N/A N/A 6.89
09/30/2010 0.0284 N/A N/A 6.90
08/31/2010 0.0285 N/A N/A 6.87
07/30/2010 0.0285 N/A N/A 6.78
06/30/2010 0.0322 N/A N/A 6.64
05/27/2010 0.0248 N/A N/A 6.52
04/30/2010 0.0285 N/A N/A 6.68
03/31/2010 0.0285 N/A N/A 6.59
02/26/2010 0.0285 N/A N/A 6.58
01/29/2010 0.0285 N/A N/A 6.59
12/31/2009 0.0285 N/A N/A 6.51
12/30/2009 0.0000 0.0000 0.0000 6.53
11/30/2009 0.0285 N/A N/A 6.55
10/30/2009 0.0285 N/A N/A 6.51
09/30/2009 0.0285 N/A N/A 6.46
08/31/2009 0.0285 N/A N/A 6.37
07/31/2009 0.0285 N/A N/A 6.29
06/30/2009 0.0285 N/A N/A 6.01
05/29/2009 0.0285 N/A N/A 5.87
04/30/2009 0.0285 N/A N/A 5.66
03/31/2009 0.0285 N/A N/A 5.49
02/27/2009 0.0285 N/A N/A 5.55
01/30/2009 0.0285 N/A N/A 5.69
12/31/2008 0.0285 N/A N/A 5.70
11/28/2008 0.0285 N/A N/A 5.39
10/31/2008 0.0285 N/A N/A 5.25
09/30/2008 0.0285 N/A N/A 5.62
08/29/2008 0.0263 N/A N/A 6.15
07/31/2008 0.0263 N/A N/A 6.14
06/30/2008 0.0263 N/A N/A 6.22
05/30/2008 0.0263 N/A N/A 6.30
04/30/2008 0.0263 N/A N/A 6.40
03/31/2008 0.0263 N/A N/A 6.45
02/29/2008 0.0263 N/A N/A 6.58
01/31/2008 0.0263 N/A N/A 6.62
12/31/2007 0.0263 N/A N/A 6.55
11/30/2007 0.0263 N/A N/A 6.61
10/31/2007 0.0263 N/A N/A 6.53
09/28/2007 0.0263 N/A N/A 6.50
08/31/2007 0.0263 N/A N/A 6.47
07/31/2007 0.0263 N/A N/A 6.43
06/29/2007 0.0263 N/A N/A 6.43
05/31/2007 0.0263 N/A N/A 6.50
04/30/2007 0.0263 N/A N/A 6.59
03/30/2007 0.0263 N/A N/A 6.58
02/28/2007 0.0263 N/A N/A 6.63
01/31/2007 0.0263 N/A N/A 6.54
12/29/2006 0.0263 N/A N/A 6.56
11/30/2006 0.0255 N/A N/A 6.64
10/31/2006 0.0255 N/A N/A 6.59
09/29/2006 0.0255 N/A N/A 6.57
08/31/2006 0.0255 N/A N/A 6.53
07/31/2006 0.0255 N/A N/A 6.46
06/30/2006 0.0255 N/A N/A 6.40
05/31/2006 0.0255 N/A N/A 6.41
04/28/2006 0.0255 N/A N/A 6.44
03/31/2006 0.0255 N/A N/A 6.49
02/28/2006 0.0255 N/A N/A 6.59
01/31/2006 0.0255 N/A N/A 6.59
12/30/2005 0.0255 N/A N/A 6.62
11/30/2005 0.0255 N/A N/A 6.58
10/31/2005 0.0255 N/A N/A 6.57
09/30/2005 0.0255 N/A N/A 6.66
08/31/2005 0.0255 N/A N/A 6.78
07/29/2005 0.0255 N/A N/A 6.72
06/30/2005 0.0255 N/A N/A 6.78
05/31/2005 0.0255 N/A N/A 6.72
04/29/2005 0.0255 N/A N/A 6.66
03/31/2005 0.0275 N/A N/A 6.62
02/28/2005 0.0275 N/A N/A 6.75
01/31/2005 0.0275 N/A N/A 6.79
12/31/2004 0.0275 N/A N/A 6.77
11/30/2004 0.0275 N/A N/A 6.70
10/29/2004 0.0275 N/A N/A 6.78
09/30/2004 0.0275 N/A N/A 6.74
08/31/2004 0.0275 N/A N/A 6.72
07/30/2004 0.0275 N/A N/A 6.61
06/30/2004 0.0275 N/A N/A 6.57
05/28/2004 0.0295 N/A N/A 6.57
04/30/2004 0.0295 N/A N/A 6.66
03/31/2004 0.0295 N/A N/A 6.84
02/27/2004 0.0295 N/A N/A 6.82
01/30/2004 0.0295 N/A N/A 6.80
10/31/2003 0.0295 N/A N/A 6.70
09/30/2003 0.0295 N/A N/A 6.75
07/31/2003 0.0312 N/A N/A 6.55
06/30/2003 0.0312 N/A N/A 6.78
04/30/2003 0.0327 N/A N/A 6.71
03/31/2003 0.0327 N/A N/A 6.57
02/28/2003 0.0327 N/A N/A 6.61
01/31/2003 0.0327 N/A N/A 6.53
12/31/2002 0.0327 N/A N/A 6.53
11/29/2002 0.0327 N/A N/A 6.41
10/31/2002 0.0327 N/A N/A 6.31
09/30/2002 0.0327 N/A N/A 6.43
08/30/2002 0.0327 N/A N/A 6.39
07/31/2002 0.0327 N/A N/A 6.34
06/28/2002 0.0327 N/A N/A 6.44
05/31/2002 0.0327 N/A N/A 6.54
04/30/2002 0.0327 N/A N/A 6.50
03/28/2002 0.0327 N/A N/A 6.51
02/28/2002 0.0327 N/A N/A 6.67
01/31/2002 0.0327 N/A N/A 6.69
12/31/2001 0.0327 N/A N/A 6.71
11/30/2001 0.0344 N/A N/A 6.76
10/31/2001 0.0344 N/A N/A 6.78
09/28/2001 0.0344 N/A N/A 6.71
08/31/2001 0.0355 N/A N/A 6.75
07/31/2001 0.0355 N/A N/A 6.72
06/29/2001 0.0355 N/A N/A 6.59
05/31/2001 0.0355 N/A N/A 6.59
04/30/2001 0.0355 N/A N/A 6.58
03/30/2001 0.0355 N/A N/A 6.64
02/28/2001 0.0355 N/A N/A 6.64
01/31/2001 0.0355 N/A N/A 6.62
12/29/2000 0.0453 N/A N/A 6.53
11/30/2000 0.0345 N/A N/A 6.43
10/31/2000 0.0345 N/A N/A 6.40
09/29/2000 0.0345 N/A N/A 6.44
08/31/2000 0.0345 N/A N/A 6.43
07/31/2000 0.0345 N/A N/A 6.39
06/30/2000 0.0345 N/A N/A 6.35
05/31/2000 0.0345 N/A N/A 6.21
04/28/2000 0.0345 N/A N/A 6.30
03/31/2000 0.0345 N/A N/A 6.44
02/29/2000 0.0345 N/A N/A 6.43
01/31/2000 0.0345 N/A N/A 6.42
12/31/1999 0.0345 N/A N/A 6.47
11/30/1999 0.0345 N/A N/A 6.53
09/30/1999 0.0345 N/A N/A 6.56
08/31/1999 0.0360 N/A N/A 6.53
06/30/1999 0.0360 N/A N/A 6.65
04/30/1999 0.0360 N/A N/A 6.91
03/31/1999 0.0360 N/A N/A 6.92
as of 05/31/2017

Fund Characteristics

3-Year Alpha 0.47%
3-Year Beta 1.06
3-Year R-Squared 0.91
3-Year Sharpe Ratio 0.86
3-Year Standard Deviation 4.39
Number of Securities 633
Total Assets $1,421,924,536.00

Source: FactSet Research Systems Inc., StyleADVISOR

Benchmark:  Bloomberg Barclays U.S. Credit Index

as of 05/31/2017

Top Fixed-Income Holdings | View all

Holding Name Coupon % Bond Maturity Date % of Total Assets
U.S. TREASURY N B 1.750 05/31/2022 2.23
AERCAP GLOBAL AVIATION T 144A 6.500 06/15/2045 1.58
U.S. TREASURY NOTES 2.375 05/15/2027 1.39
U.S. TREASURY BONDS 3.000 02/15/2047 1.22
SPRINT SPECTRUM SPEC I 3.360 03/20/2023 1.05
SOUTHERN CO 5.500 03/15/2057 0.94
ACCESS MIDSTREAM PARTNER 4.875 05/15/2023 0.88
KINDER MORGAN INC DELAWA 7.800 08/01/2031 0.86
SABINE PASS LIQUEFACTION 6.250 03/15/2022 0.84
MPLX LP 4.500 07/15/2023 0.81

May not equal 100% due to rounding.

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

as of 05/31/2017

Top Industries

  % of Total Assets
Diversified Banks 11.00
Oil & Gas Storage & Transportation 9.39
Investment Banking & Brokerage 3.64
Integrated Telecommunication Services 3.43
Cable & Satellite 3.21
Airlines 3.12
Trading Companies & Distributors 3.12
Electric Utilities 3.05
Oil & Gas Exploration & Production 2.67
Pharmaceuticals 2.37

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

Active Trading Risk. Active trading of portfolio securities may result in high brokerage costs, which may lower the Fund's actual return. Active trading also may increase the proportion of the Fund's gains that are short term, which are taxed at a higher rate than long term gains.

Cash/Cash Equivalents Risk. To the extent the Fund holds cash or cash equivalents rather than securities or other instruments in which it primarily invests, the Fund risks losing opportunities to participate in market appreciation and may experience potentially lower returns than the Fund's benchmark or other funds that remain fully invested.

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 persist in the future, potentially leading 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. In addition, because of changing central bank policies, the Fund may experience higher than normal shareholder redemptions which could potentially increase portfolio turnover and the Fund's transaction costs and potentially lower the Fund's performance returns.

Collateralized Loan Obligations Risk. CLOs are subject to the risks of substantial losses due to actual defaults by underlying borrowers, which will be greater during periods of economic or financial stress. CLOs may also lose value due to collateral defaults and disappearance of subordinate tranches, market anticipation of defaults, and investor aversion to CLO securities as a class. The risks of CLOs will be greater if the Fund invests in CLOs that hold loans of uncreditworthy borrowers or if the Fund holds subordinate tranches of the CLO that absorbs losses from the defaults before senior tranches. In addition, CLOs are subject to interest rate risk and credit risk.

Convertible Securities Risk. The market value of a convertible security performs like that of a regular debt security; that is, if market interest rates rise, the value of a convertible security usually falls. In addition, convertible securities are subject to the risk that the issuer will not be able to pay interest or dividends when due, and their market value may change based on changes in the issuer's credit rating or the market's perception of the issuer's creditworthiness. Since a convertible security derives a portion of its value from the common stock into which it may be converted, a convertible security is also 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. These convertible securities are subject to an increased risk of loss and are generally subordinate in rank to other debt obligations of the issuer.

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. If an issuer seeks to restructure the terms of its borrowings or the Fund is required to seek recovery upon a default in the payment of interest or the repayment of principal, the Fund may incur additional expenses. 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. A derivative is an instrument whose value 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, which are described below.

  • Counterparty Risk. Certain derivatives do not trade on an established exchange (referred to as over-the-counter (OTC) derivatives) and are simply financial contracts between the Fund and a counterparty. When the Fund is owed money on an OTC derivative, the Fund is dependent on the counterparty to pay or, in some cases, deliver the underlying asset, unless the Fund can otherwise sell its derivative contract to a third party prior to its expiration. Many counterparties are financial institutions such as banks and broker-dealers and their creditworthiness (and ability to pay or perform) may be negatively impacted by factors affecting financial institutions generally. In addition, in the event that a counterparty becomes bankrupt or insolvent, the Fund's ability to recover the collateral that the Fund has on deposit with the counterparty could be delayed or impaired. For derivatives traded on a centralized exchange, the Fund generally is dependent upon the solvency of the relevant exchange clearing house (which acts as a guarantor for each contractual obligation under such derivatives) for payment on derivative instruments for which the Fund is owed money.
  • Leverage Risk. Many derivatives do not require a payment up front equal to the economic exposure created by owning the derivative, which creates a form of leverage. 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. Leverage may therefore make the Fund's returns more volatile and increase the risk of loss. The Fund segregates or earmarks liquid assets with a value at least equal to the amount that the Fund owes the derivative counterparty each day, if any, or otherwise holds instruments that offset the Fund's daily obligation under the derivatives instrument. This process is sometimes referred to as "cover." The amount of liquid assets needed as cover will fluctuate over time as the value of the derivative instrument rises and falls. If the value of the Fund's derivative positions or the value of the assets used as cover unexpectedly decreases, the Fund may be forced to segregate additional liquid assets as cover or sell assets at a disadvantageous time or price to meet its derivative obligations or to meet redemption requests, which could affect management of the Fund and the Fund's returns. In certain market conditions, losses on derivative instruments can grow larger while the value of the Fund's other assets fall, resulting in the Fund's derivative positions becoming a larger percentage of the Fund's investments.
  • Liquidity Risk. There is a smaller pool of buyers and sellers for certain derivatives, particularly OTC derivatives, than more traditional investments such as stocks. These buyers and sellers are often financial institutions that may be unable or unwilling to buy or sell derivatives during times of financial or market stress. Derivative instruments may therefore be less liquid than more traditional investments and the Fund may be unable to sell or exit 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. To the extent that the Fund is unable to exit a derivative position because of market illiquidity, the Fund may not be able to prevent further losses of value in its derivatives holdings and the liquidity of the Fund and its ability to meet redemption requests may be impaired to the extent that a substantial portion of the Fund's otherwise liquid assets must be used as margin or cover. Another consequence of illiquidity is that the Fund may be required to hold a derivative instrument to maturity and take or make delivery of the underlying asset that the Adviser would otherwise have attempted to avoid.
  • Other Risks. Compared to other types of investments, derivatives may be harder to value and may also be less tax efficient, as described under the "Taxes" section of the prospectus. In addition, changes in government regulation of derivative instruments could affect the character, timing and amount of the Fund's taxable income or gains, and may limit or prevent the Fund from using certain types of derivative instruments as a part of its investment strategy, which could make the investment strategy more costly to implement or require the Fund to change its investment strategy. To the extent that the Fund uses derivatives for hedging or to gain or limit exposure to a particular market or market segment, there may be imperfect correlation between the value of the derivative instrument and the value of the instrument being hedged or the relevant market or market segment, in which case the Fund may not realize the intended benefits. There is also the risk that during adverse market conditions, an instrument which would usually operate as a hedge provides no hedging benefits at all. The Fund's use of derivatives may be limited by the requirements for taxation of the Fund as a regulated investment company.
Emerging Markets Securities Risk. Emerging markets (also referred to as developing markets) are generally subject to greater market volatility, political, social and economic instability, uncertainty regarding the existence of 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 in many emerging market countries is relatively new and unsettled. Therefore, laws regarding foreign investment in emerging market securities, securities regulation, title to securities, and shareholder rights may change quickly and unpredictably. In addition, the enforcement of systems of taxation at federal, regional and local levels in emerging market countries may be inconsistent, and subject to sudden change. Other risks of investing in emerging markets securities may include additional transaction costs, delays in settlement procedures, and lack of timely information.

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. A foreign government debtor's willingness or ability to repay principal and pay interest in a timely manner may be affected by, among other factors, its cash flow situation, the extent of its foreign currency reserves, the availability of sufficient foreign exchange, the relative size of the debt burden, the foreign government debtor's policy toward its principal international lenders and local political constraints. Certain issuers of foreign government debt may be dependent on disbursements from foreign governments, multinational agencies and other entities to reduce principal and interest arrearages on their debt. 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 value of the Fund's foreign investments may be adversely affected by political and social instability in the home countries of the issuers of the investments, by changes in economic or taxation policies in those countries, or by the difficulty in enforcing obligations in those countries. 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. Foreign companies generally may be subject to less stringent regulations than U.S. companies, including financial reporting requirements and auditing and accounting controls, and may therefore be more susceptible to fraud or corruption. Also, there may be less publicly available information about companies in certain foreign countries than about U.S. companies making it more difficult for the Adviser to evaluate those companies. The laws of certain countries may put limits on the Fund's ability to recover its assets held at a foreign bank if the foreign bank, depository or issuer of a security, or any of their agents, goes bankrupt. Trading in many foreign securities may be less liquid and more volatile than U.S. securities due to the size of the market or other factors. 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. The Fund's investments in high yield debt securities (commonly referred to as "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 and are more susceptible to default or decline in market value due to adverse economic, regulatory, political or company developments than higher rated or investment grade securities. Prices of high yield debt securities tend to be very volatile. These securities are less liquid than investment grade debt securities and may be difficult to sell at a desirable time or price, particularly in times of negative sentiment toward high yield securities.

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. An investment may be illiquid due to a lack of trading volume in the investment or if the investment is privately placed and not traded in any public market or is otherwise restricted from trading. Certain restricted securities require special registration and pose valuation difficulties. 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. There can be no guarantee that the Adviser's investment techniques or investment decisions will produce the desired results. Additionally, legislative, regulatory, or tax developments may affect the investments or investment strategies available to the investment manager in connection with managing the Fund, which may also adversely affect 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. The value of the Fund's investments may go up or down due to general market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, or adverse investor sentiment generally. The value of the Fund's investments may also go up or down due to factors that affect an individual issuer or a particular industry or sector, such as changes in production costs and competitive conditions within an industry. 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.

Mortgage- and Asset-Backed Securities Risk. Mortgage- and asset-backed securities, including collateralized debt obligations and collateralized mortgage obligations, differ from conventional debt securities because principal is paid back over the life of the security rather than at maturity. Mortgage- and asset-backed securities are subject to prepayment or call risk, which is the risk that a 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. Mortgage- and asset-backed securities also are subject to extension risk. An unexpected rise in interest rates could reduce the rate of prepayments and extend the life of the mortgage- and asset-backed securities, causing the price of the mortgage- and asset-backed securities and the Fund's share price to fall and would make the mortgage- and asset-backed securities more sensitive to interest rate changes. An unexpectedly high rate of defaults on the mortgages held by a mortgage pool will adversely affect the value of mortgage-backed securities and will result in losses to the Fund. The Fund may invest in mortgage pools that include subprime mortgages, which are loans made to borrowers with weakened credit histories or with lower capacity to make timely payments on their mortgages. Privately issued mortgage-related securities are not subject to the same underwriting requirements for the underlying mortgages that are applicable to those mortgage-related securities that have government or government-sponsored entity guarantees. As a result, the mortgage loans underlying privately issued mortgage-related securities may, and frequently do, have less favorable collateral, credit risk or other underwriting characteristics than government or government-sponsored mortgage-related securities and have wider variances in a number of terms including interest rate, term, size, purpose and borrower characteristics.

Municipal Securities Risk. The risk of a municipal obligation generally depends on the financial and credit status of the issuer. Constitutional amendments, legislative enactments, executive orders, administrative regulations, voter initiatives, and the issuer's regional economic conditions may affect the municipal security's value, interest payments, repayment of principal and the Fund's ability to sell the security. Municipal obligations may be more susceptible to downgrades or defaults during recessions or similar periods of economic stress. Municipal securities structured as revenue bonds are generally not backed by the taxing power of the issuing municipality but rather the revenue from the particular project or entity for which the bonds were issued. If the Internal Revenue Service determines that an issuer of a municipal security has not complied with applicable tax requirements, interest from the security could be treated as taxable, which could result in a decline in the security's value. In addition, there could be changes in applicable tax laws or tax treatments that reduce or eliminate the current federal income tax exemption on municipal securities or otherwise adversely affect the current federal or state tax status of municipal securities.

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 in an issuer's capital structure, subjecting them to a greater risk of non-payment than these more senior securities. For this reason, the value of preferred securities will usually react more strongly than bonds and other debt securities to actual or perceived changes in the company's financial condition or prospects. Preferred securities may be less liquid than many other securities, such as common stocks, and generally offer no voting rights with respect to the issuer.

TBA Transactions Risk. TBA transactions involve the risk that the securities received may be less favorable than what was anticipated by the Fund when entering into the TBA transaction. TBA transactions also involve the risk that the counterparty will fail to deliver the securities, exposing the Fund to further losses. Whether or not the Fund takes delivery of the securities at the termination date of a TBA transaction, the Fund will nonetheless be exposed to changes in the value of the underlying investments during the term of the agreement.

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. When-Issued, Delayed Delivery and Forward Commitment Risks. When-issued and delayed delivery transactions are subject to market risk as the value or yield of a security at delivery may be more or less than the purchase price or the yield generally available on securities when delivery occurs. In addition, the Fund is subject to counterparty risk because it relies on the buyer or seller, as the case may be, to consummate the transaction, and failure by the counterparty to complete the transaction may result in the Fund missing the opportunity of obtaining a price or yield considered to be advantageous. These transactions have a leveraging effect on the Fund because the Fund commits to purchase securities that it does not have to pay for until a later date. These investments therefore increase the Fund's overall investment exposure and, as a result, its volatility. Typically, no income accrues on securities the Fund has committed to purchase prior to the time delivery of the securities is made, although the Fund may earn income on securities it has set aside to cover these positions.

Zero Coupon or Pay-In-Kind Securities Risk. Zero coupon and pay-in-kind securities may be subject to greater fluctuation in value and less liquidity in the event of adverse market conditions than comparably rated securities paying cash interest at regular interest payment periods. Prices on non-cash-paying instruments may be more sensitive to changes in the issuer's financial condition, fluctuation in interest rates and market demand/supply imbalances than cash-paying securities with similar credit ratings, and thus may be more speculative. Investors may purchase zero coupon and pay-in-kind securities at a price below the amount payable at maturity. Because such securities do not entitle the holder to any periodic payments of interest prior to maturity, this prevents any reinvestment of interest payments at prevailing interest rates if prevailing interest rates rise. The higher yields and interest rates on pay-in-kind securities reflect the payment deferral and increased credit risk associated with such instruments and that such investments may represent a higher credit risk than coupon loans. Pay-in-kind securities may have a potential variability in valuations because their continuing accruals require continuing judgments about the collectability of the deferred payments and the value of any associated collateral. Special tax considerations are associated with investing in certain lower-grade securities, such as zero coupon or pay-in-kind securities.
as of 06/27/2017


NAV Change ($)
$7.44 -0.02
N/As may appear until data is available. Data is usually updated between 3 and 6 p.m. CST.
as of 06/27/2017


  • Distribution Yield
    with Sales Charge 3.34%
  • Distribution Yield
    without Sales Charge 3.48%
  • SEC 30-Day Yield 3.16%
  • Unsub. 30-day yield N/A

Fund Details

  • Distribution Frequency Monthly
  • WSJ Abrev. CpBdA
  • CUSIP 001421858
  • Fund Type Fixed Income
  • Geography Type N/A
  • Inception Date 09/23/1971
  • Fiscal Year End 02/28
  • Min Initial Investment $1,000
  • Subsequent Investment $50
  • Min Initial IRA Investment $250
  • Fund Number 1740
  • Tax ID 06-6056470