Mutual Funds

Invesco Intermediate Term Municipal Income Fund

Fixed Income | US Fixed Income

Objective & Strategy

The fund seeks a high level of current income exempt from federal income tax, consistent with preservation of capital by investing primarily in intermediate municipal bonds that are investment grade at the time of purchase.

Municipal sweet spot

An actively managed, diversified tax-free strategy seeking monthly income by investing in intermediate municipal bonds with the potential to deliver competitive yields with less risk compared to long-term bonds. Note the shorter maturities of intermediate bonds may lead to lower yields compared to longer-term bonds.

Focus on price appreciation   Reduced interest rate sensitivity   Proven process
When interest rates rise, cash flows to project revenue and essential service revenue bonds we own have typically increased, which can result in price appreciation.   The shorter maturities of intermediate-term municipal bonds make them less sensitive to movements in interest rates than long-term municipal bonds.   Proprietary credit research is combined with an experienced management team in an attempt to uncover and exploit relative value opportunities.


Diversification does not guarantee a profit nor eliminate the risk of loss. It’s important to note that a portion of the fund’s distributions may be subject to state and local taxes.

Explore High-Conviction Investing with Invesco

as of 01/31/2017

Morningstar Rating

Overall Rating - Muni National Interm Category

As of 01/31/2017 the Fund had an overall rating of 4 stars out of 254 funds and was rated 4 stars out of 254 funds, 4 stars out of 223 funds and 4 stars out of 150 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. Ratings are calculated for various managed products, such as mutual funds and exchange-traded 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 01/31/2017

Top Fixed-Income Holdings | View all

Holding Name Coupon % Bond Maturity Date % of Total Assets
MICHIGAN ST FIN AUTH REVENUE 5.000 07/01/2026 0.85
TEXAS ST TRANS 10/01/2041 0.83
MICHIGAN CITY IN SCH BLDG CORP 5.000 01/15/2025 0.76
CHICAGO IL WTRWKS REVENUE 5.000 11/01/2029 0.74
KATY TEX INDPT SCH DIST 08/15/2036 0.66

May not equal 100% due to rounding.

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

as of 01/31/2017 12/31/2016

Average Annual Returns (%)

Load (%)
Incept. (%)
YTD (%) 1Y (%) 3Y (%) 5Y (%) 10Y (%)
NAV 05/28/1993 N/A 4.62 0.42 -0.86 3.04 2.59 3.85
Load 05/28/1993 2.50 4.51 -2.10 -3.34 2.17 2.06 3.58
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 01/31/2017 12/31/2016

Annualized Benchmark Returns

Index Name 1 Mo (%) 3 Mo (%) 1Y (%) 3Y (%) 5Y (%) 10Y (%)
S&P Municipal Bond 2-17 Year Investment Grade Index 0.58 -1.94 -0.60 2.98 2.56 4.37
S&P Municipal Bond Index 0.52 -1.99 0.24 3.85 3.16 4.27
S&P Municipal Bond 2-17 Year Investment Grade Index 1.05 -3.27 0.13 3.36 2.82 4.29
S&P Municipal Bond Index 1.00 -3.30 0.77 4.39 3.55 4.20

Source: FactSet Research Systems Inc.

An investment cannot be made directly in an index.

Expense Ratio per Prospectus

Management Fee 0.48
12b-1 Fee 0.25
Other Expenses 0.15
Interest/Dividend Exp 0.02
Total Other Expenses 0.17
Acquired Fund Fees and Expenses (Underlying Fund Fees & Expenses) 0.00
Total Annual Fund Operating Expenses 0.90
Contractual Waivers/Reimbursements -0.04
Net Expenses - PER PROSPECTUS 0.86
Additional Waivers/Reimbursements 0.00
Net Expenses - With Additional Fee Reduction 0.86
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
01/31/2017 0.0254 N/A N/A 10.93
12/30/2016 0.0254 N/A N/A 10.91
11/30/2016 0.0253 N/A N/A 10.87
10/31/2016 0.0235 N/A N/A 11.30
09/30/2016 0.0235 N/A N/A 11.44
08/31/2016 0.0235 N/A N/A 11.50
07/29/2016 0.0235 N/A N/A 11.50
06/30/2016 0.0235 N/A N/A 11.53
05/31/2016 0.0235 N/A N/A 11.38
04/29/2016 0.0235 N/A N/A 11.37
03/31/2016 0.0235 N/A N/A 11.32
02/29/2016 0.0235 N/A N/A 11.29
01/29/2016 0.0235 N/A N/A 11.31
12/31/2015 0.0235 N/A N/A 11.21
11/30/2015 0.0235 N/A N/A 11.16
10/30/2015 0.0235 N/A N/A 11.14
09/30/2015 0.0235 N/A N/A 11.12
08/31/2015 0.0235 N/A N/A 11.08
07/31/2015 0.0258 N/A N/A 11.08
06/30/2015 0.0258 N/A N/A 11.04
05/29/2015 0.0258 N/A N/A 11.10
04/30/2015 0.0279 N/A N/A 11.17
03/31/2015 0.0279 N/A N/A 11.23
02/27/2015 0.0279 N/A N/A 11.23
01/30/2015 0.0279 N/A N/A 11.35
12/31/2014 0.0302 N/A N/A 11.20
11/28/2014 0.0302 N/A N/A 11.18
10/31/2014 0.0302 N/A N/A 11.19
09/30/2014 0.0302 N/A N/A 11.16
08/29/2014 0.0302 N/A N/A 11.16
07/31/2014 0.0302 N/A N/A 11.07
06/30/2014 0.0302 N/A N/A 11.08
05/30/2014 0.0302 N/A N/A 11.11
04/30/2014 0.0301 N/A N/A 11.00
03/31/2014 0.0277 N/A N/A 10.91
02/28/2014 0.0277 N/A N/A 10.94
01/31/2014 0.0277 N/A N/A 10.87
12/31/2013 0.0277 N/A N/A 10.73
11/29/2013 0.0277 N/A N/A 10.77
10/31/2013 0.0277 N/A N/A 10.82
09/30/2013 0.0277 N/A N/A 10.77
08/30/2013 0.0277 N/A N/A 10.61
07/31/2013 0.0277 N/A N/A 10.74
06/28/2013 0.0277 N/A N/A 10.83
05/31/2013 0.0277 N/A N/A 11.16
04/30/2013 0.0315 N/A N/A 11.33
03/28/2013 0.0315 N/A N/A 11.25
02/28/2013 0.0315 N/A N/A 11.32
01/31/2013 0.0335 N/A N/A 11.29
12/31/2012 0.0335 N/A N/A 11.28
11/30/2012 0.0335 N/A N/A 11.43
10/31/2012 0.0335 N/A N/A 11.29
09/28/2012 0.0354 N/A N/A 11.28
08/31/2012 0.0354 N/A N/A 11.25
07/31/2012 0.0354 N/A N/A 11.27
06/29/2012 0.0354 N/A N/A 11.17
05/31/2012 0.0354 N/A N/A 11.21
04/30/2012 0.0354 N/A N/A 11.16
03/30/2012 0.0354 N/A N/A 11.09
02/29/2012 0.0354 N/A N/A 11.20
01/31/2012 0.0354 N/A N/A 11.21
12/30/2011 0.0354 N/A N/A 11.05
11/30/2011 0.0354 N/A N/A 10.90
10/31/2011 0.0354 N/A N/A 10.86
09/30/2011 0.0354 N/A N/A 10.93
08/31/2011 0.0354 N/A N/A 10.90
07/29/2011 0.0354 N/A N/A 10.80
06/30/2011 0.0354 N/A N/A 10.74
05/31/2011 0.0354 N/A N/A 10.74
04/29/2011 0.0354 N/A N/A 10.62
03/31/2011 0.0354 N/A N/A 10.50
02/28/2011 0.0354 N/A N/A 10.57
01/31/2011 0.0354 N/A N/A 10.46
12/31/2010 0.0354 N/A N/A 10.57
11/30/2010 0.0354 N/A N/A 10.75
10/29/2010 0.0354 N/A N/A 10.96
09/30/2010 0.0354 N/A N/A 11.03
08/31/2010 0.0354 N/A N/A 11.09
07/30/2010 0.0354 N/A N/A 10.87
06/30/2010 0.0400 N/A N/A 10.77
05/27/2010 0.0308 N/A N/A 10.79
04/30/2010 0.0354 N/A N/A 10.73
03/31/2010 0.0354 N/A N/A 10.65
02/26/2010 0.0354 N/A N/A 10.75
01/29/2010 0.0354 N/A N/A 10.67
12/31/2009 0.0354 N/A N/A 10.62
11/30/2009 0.0354 N/A N/A 10.63
10/30/2009 0.0354 N/A N/A 10.56
09/30/2009 0.0354 N/A N/A 10.80
08/31/2009 0.0354 N/A N/A 10.43
07/31/2009 0.0354 N/A N/A 10.31
06/30/2009 0.0354 N/A N/A 10.17
05/29/2009 0.0354 N/A N/A 10.29
04/30/2009 0.0354 N/A N/A 10.14
03/31/2009 0.0354 N/A N/A 9.98
02/27/2009 0.0375 N/A N/A 10.03
01/30/2009 0.0375 N/A N/A 10.05
11/28/2008 0.0375 N/A N/A 9.75
09/30/2008 0.0352 N/A N/A 10.05
11/30/2007 0.0323 N/A N/A 10.59
08/31/2007 0.0305 N/A N/A 10.49
07/31/2007 0.0305 N/A N/A 10.54
05/31/2007 0.0305 N/A N/A 10.58
04/30/2007 0.0305 N/A N/A 10.66
02/28/2007 0.0305 N/A N/A 10.70
01/31/2007 0.0305 N/A N/A 10.62
12/29/2006 0.0305 N/A N/A 10.68
11/30/2006 0.0305 N/A N/A 10.74
10/31/2006 0.0305 N/A N/A 10.70
09/29/2006 0.0305 N/A N/A 10.68
08/31/2006 0.0305 N/A N/A 10.64
07/31/2006 0.0305 N/A N/A 10.54
06/30/2006 0.0305 N/A N/A 10.46
05/31/2006 0.0305 N/A N/A 10.53
04/28/2006 0.0305 N/A N/A 10.51
03/31/2006 0.0305 N/A N/A 10.55
02/28/2006 0.0305 N/A N/A 10.65
01/31/2006 0.0305 N/A N/A 10.62
12/30/2005 0.0305 N/A N/A 10.62
12/29/2005 N/A 0.0432 0.0079 10.61
11/30/2005 0.0305 N/A N/A 10.62
10/31/2005 0.0305 N/A N/A 10.60
09/30/2005 0.0305 N/A N/A 10.69
08/31/2005 0.0305 N/A N/A 10.79
07/29/2005 0.0305 N/A N/A 10.72
06/30/2005 0.0305 N/A N/A 10.79
05/31/2005 0.0305 N/A N/A 10.77
04/29/2005 0.0305 N/A N/A 10.73
03/31/2005 0.0305 N/A N/A 10.61
12/31/2004 0.0305 N/A N/A 10.74
12/30/2004 N/A 0.0137 N/A 10.72
11/30/2004 0.0305 N/A N/A 10.65
10/29/2004 0.0305 N/A N/A 10.76
09/30/2004 0.0305 N/A N/A 10.72
08/31/2004 0.0305 N/A N/A 10.71
07/30/2004 0.0305 N/A N/A 10.57
06/30/2004 0.0305 N/A N/A 10.48
05/28/2004 0.0305 N/A N/A 10.48
04/30/2004 0.0305 N/A N/A 10.52
03/31/2004 0.0305 N/A N/A 10.75
02/27/2004 0.0305 N/A N/A 10.86
01/30/2004 0.0305 N/A N/A 10.73
12/30/2003 N/A 0.0388 0.0385 10.74
10/31/2003 0.0305 N/A N/A 10.68
09/30/2003 0.0305 N/A N/A 10.76
07/31/2003 0.0305 N/A N/A 10.48
06/30/2003 0.0305 N/A N/A 10.81
04/30/2003 0.0350 N/A N/A 10.76
03/31/2003 0.0350 N/A N/A 10.71
02/28/2003 0.0350 N/A N/A 10.74
01/31/2003 0.0350 N/A N/A 10.62
12/31/2002 0.0350 N/A N/A 10.71
12/30/2002 N/A 0.0367 0.0110 10.69
11/29/2002 0.0350 N/A N/A 10.58
10/31/2002 0.0350 N/A N/A 10.65
09/30/2002 0.0350 N/A N/A 10.86
08/30/2002 0.0350 N/A N/A 10.68
07/31/2002 0.0350 N/A N/A 10.61
06/28/2002 0.0350 N/A N/A 10.51
05/31/2002 0.0350 N/A N/A 10.43
04/30/2002 0.0350 N/A N/A 10.41
03/28/2002 0.0350 N/A N/A 10.23
02/28/2002 0.0350 N/A N/A 10.45
01/31/2002 0.0350 N/A N/A 10.36
12/31/2001 0.0350 N/A N/A 10.25
11/30/2001 0.0350 N/A N/A 10.36
10/31/2001 0.0350 N/A N/A 10.51
09/28/2001 0.0350 N/A N/A 10.42
08/31/2001 0.0350 N/A N/A 10.47
07/31/2001 0.0350 N/A N/A 10.34
06/29/2001 0.0350 N/A N/A 10.27
05/31/2001 0.0350 N/A N/A 10.25
04/30/2001 0.0350 N/A N/A 10.18
03/30/2001 0.0350 N/A N/A 10.31
02/28/2001 0.0350 N/A N/A 10.22
01/31/2001 0.0350 N/A N/A 10.21
12/29/2000 0.0350 0.0063 N/A 10.16
11/30/2000 0.0380 N/A N/A 9.99
10/31/2000 0.0380 N/A N/A 9.98
09/29/2000 0.0380 N/A N/A 10.14
08/31/2000 0.0380 N/A N/A 10.20
07/31/2000 0.0380 N/A N/A 10.13
06/30/2000 0.0405 N/A N/A 10.04
05/31/2000 0.0405 N/A N/A 9.90
04/28/2000 0.0405 N/A N/A 9.95
03/31/2000 0.0405 N/A N/A 10.00
02/29/2000 0.0405 N/A N/A 9.93
01/31/2000 0.0405 N/A N/A 9.91
12/31/1999 0.0430 N/A N/A 10.00
11/30/1999 0.0430 N/A N/A 10.12
09/30/1999 0.0430 N/A N/A 10.22
08/31/1999 0.0430 N/A N/A 10.26
06/30/1999 0.0430 N/A N/A 10.38
04/30/1999 0.0430 N/A N/A 10.63
03/31/1999 0.0430 N/A N/A 10.64
11/30/1998 0.0405 N/A N/A 10.68
08/31/1998 0.0405 N/A N/A 10.66
07/31/1998 0.0405 N/A N/A 10.57
06/30/1998 0.0405 N/A N/A 10.59
04/30/1998 0.0405 N/A N/A 10.48
10/31/1997 0.0395 N/A N/A 10.44
07/31/1997 0.0395 N/A N/A 10.44
06/30/1997 0.0395 N/A N/A 10.25
04/30/1997 0.0395 N/A N/A 10.12
02/28/1997 0.0395 N/A N/A 10.23
01/31/1997 0.0395 N/A N/A 10.18
10/31/1996 0.0395 N/A N/A 10.17
07/31/1996 0.0395 N/A N/A 10.07
05/31/1996 0.0395 N/A N/A 10.00
04/30/1996 0.0395 N/A N/A 10.01
02/29/1996 0.0395 N/A N/A 10.23
01/31/1996 0.0395 N/A N/A 10.29
11/30/1995 0.0395 N/A N/A 10.21
10/31/1995 0.0395 N/A N/A 10.15
08/31/1995 0.0395 N/A N/A 10.05
07/31/1995 0.0395 N/A N/A 9.98
06/30/1995 0.0395 N/A N/A 9.94
05/31/1995 0.0395 N/A N/A 10.05
02/28/1995 0.0395 N/A N/A 9.76
01/31/1995 0.0395 N/A N/A 9.54
11/30/1994 0.0395 N/A N/A 9.16
10/31/1994 0.0395 N/A N/A 9.41
08/31/1994 0.0395 N/A N/A 9.77
06/30/1994 0.0420 N/A N/A 9.67
05/31/1994 0.0420 N/A N/A 9.70
02/28/1994 0.0420 N/A N/A 10.01
01/31/1994 0.0420 N/A N/A 10.24
11/30/1993 0.0420 N/A N/A 10.02
08/31/1993 0.0420 N/A N/A 10.06
as of 01/31/2017

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: and select 'Understanding Ratings' under Rating Resources on the homepage; and select 'Rating Methodologies' under Research and Ratings on the homepage; and select 'Ratings Definitions' on the homepage.

as of 01/31/2017

Fund Characteristics

3-Year Alpha 0.12%
3-Year Beta 0.98
3-Year R-Squared 0.96
3-Year Sharpe Ratio 0.95
3-Year Standard Deviation 3.04
Number of Securities 623
Total Assets $1,201,875,817.00

Source: FactSet Research Systems Inc., StyleADVISOR

Benchmark:  S&P Municipal Bond 2-17 Year Investment Grade Index

as of 01/31/2017

Top Fixed-Income Holdings | View all

Holding Name Coupon % Bond Maturity Date % of Total Assets
MICHIGAN ST FIN AUTH REVENUE 5.000 07/01/2026 0.85
TEXAS ST TRANS 10/01/2041 0.83
MICHIGAN CITY IN SCH BLDG CORP 5.000 01/15/2025 0.76
CHICAGO IL WTRWKS REVENUE 5.000 11/01/2029 0.74
KATY TEX INDPT SCH DIST 08/15/2036 0.66

May not equal 100% due to rounding.

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

as of 01/31/2017

Top Sectors

  % of Total Assets
Hospital 10.66
IDR/PCR Other 6.93
Electric - Public 6.49
Brdg Tnl Tollroad 6.18
Water / Sewer 5.89
Prerefunded/ETM 5.56
Airport 5.04
Misc Revenues 4.75
Special Tax District 4.67
College & Univ 4.30

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

Alternative Minimum Tax Risk. Although the interest received from municipal securities generally is exempt from federal income tax, the Fund may invest all or a portion of its total assets in municipal securities subject to the federal alternative minimum tax. Accordingly, investment in the Fund could cause shareholders to be subject to, or result in an increased liability under, the federal alternative minimum tax.

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.

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.
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.

Inverse Floating Rate Obligations Risk. Inverse floating rate obligations (inverse floaters) represent interests in bonds with interest rates that vary inversely to changes in short-term rates. As short-term rates rise, inverse floaters produce less income, and as short-term rates decline, inverse floaters produce more income. As a result, the price of inverse floaters is expected to decline when interest rates rise, and generally will decline further than the price of a bond with a similar maturity. The price of inverse floaters is typically more volatile than the price of bonds with similar maturities. Interest rate risk and price volatility of inverse floaters can be particularly high if leverage is used in the formula that determines the interest payable by the inverse floater. Leverage may make the Fund's returns more volatile and increase the risk of loss, and the value of, and income earned on, an inverse floater that has a higher degree of leverage are more likely to be eliminated entirely under adverse market conditions. Upon the occurrence of certain adverse events, the special purpose trust that created the inverse floater may be collapsed and the underlying security liquidated, and the Fund could lose the entire amount of its investment in the inverse floater and may, in some cases, be contractually required to pay the negative difference, if any, between the liquidation value of the underlying security and the principal amount of the short-term floating rate interests. Recent regulatory changes have prompted changes to the structure of tender option bonds. The Fund's enhanced role under the revised structure may increase the Fund's operational and regulatory risk.

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.

Medium- and Lower-Grade Municipal Securities Risk. Securities which are in the medium- and lower-grade categories generally offer higher yields than are offered by higher-grade securities of similar maturity, but they also generally involve more volatility and greater risks, such as greater credit risk, market risk, liquidity risk and management risk. Furthermore, many issuers of medium- and lower-grade securities choose not to have a rating assigned to their obligations by any nationally recognized statistical rating organization. As such, the Fund's portfolio may consist of a higher portion of unrated securities as compared with an investment company that invests solely in higher-grade securities. Unrated securities may not be as attractive to as many buyers as are rated securities, a factor which may make unrated securities less able to be sold at a desirable time or price. These factors may limit the ability of the Fund to sell such securities at their fair value either to meet redemption requests or in response to changes in the economy or the financial markets.

Municipal Issuer Focus Risk. The municipal issuers in which the Fund invests may be located in the same geographic area or may pay their interest obligations from revenue of similar projects, such as hospitals, airports, utility systems and housing finance agencies. This may make the Fund's investments more susceptible to similar social, economic, political or regulatory occurrences, making the Fund more susceptible to experience a drop in its share price than if the Fund had been more diversified across issuers that did not have similar characteristics. From time to time, the Fund's investments may include securities that alone or together with securities held by other funds or accounts managed by the Adviser, represents a major portion or all of an issue of municipal securities. Because there may be relatively few potential purchasers for such investments and, in some cases, there may be contractual restrictions on resales, the Fund may find it more difficult to sell such securities at a desirable time or price.

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.

Variable-Rate Demand Notes Risk. The absence of an active secondary market for certain variable and floating rate notes could make it difficult to dispose of these instruments, and a portfolio could suffer a loss if the issuer defaults during periods in which a portfolio is not entitled to exercise its demand rights.

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 02/17/2017


NAV Change ($)
$10.94 0.02
N/As may appear until data is available. Data is usually updated between 3 and 6 p.m. CST.
as of 02/17/2017


  • Distribution Yield
    with Sales Charge 2.72%
  • Distribution Yield
    without Sales Charge 2.79%
  • SEC 30-Day Yield 2.16%
  • Unsub. 30-day yield 2.12%

Fund Details

  • Distribution Frequency Monthly
  • WSJ Abrev. N/A
  • CUSIP 001419597
  • Fund Type Fixed Income
  • Geography Type Domestic
  • Inception Date 05/28/1993
  • Fiscal Year End 02/28
  • Min Initial Investment $1,000
  • Subsequent Investment $50
  • Min Initial IRA Investment $250
  • Fund Number 1758
  • Tax ID 36-3870526